COVER PAGE
COVER PAGE | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-37596 |
Entity Registrant Name | Ferrari N.V. |
Entity Address, Address Line One | Via Abetone Inferiore n. 4 |
Entity Address, Postal Zip Code | I-41053 |
Entity Address, City or Town | Maranello (MO) |
Entity Address, Country | IT |
Title of 12(b) Security | Ordinary Shares (par value of €0.01 each) |
Trading Symbol | RACE |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001648416 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Incorporation, State or Country Code | P7 |
Common Shares | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 181,953,498 |
Special Voting Shares | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 63,343,913 |
Business Contact | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Via Abetone Inferiore n. 4 |
Entity Address, Postal Zip Code | I-41053 |
Entity Address, City or Town | Maranello (MO) |
Entity Address, Country | IT |
Contact Personnel Name | Antonio Picca Piccon |
Country Region | +39 |
City Area Code | 0536 |
Local Phone Number | 949111 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1521 |
Auditor Name | EY S.p.A. |
Auditor Location | Milan, Italy |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net revenues | € 5,095,254 | € 4,270,894 | € 3,459,790 |
Cost of sales | 2,648,953 | 2,080,613 | 1,686,324 |
Selling, general and administrative costs | 427,974 | 348,024 | 336,126 |
Research and development costs | 775,572 | 768,104 | 707,385 |
Other expenses/(income), net | 21,548 | 5,561 | 18,475 |
Result from investments | 6,175 | 6,896 | 4,647 |
EBIT | 1,227,382 | 1,075,488 | 716,127 |
Net financial expenses | 49,616 | 33,257 | 49,092 |
Profit before taxes | 1,177,766 | 1,042,231 | 667,035 |
Income tax expense | 238,472 | 209,095 | 58,155 |
Net profit | 939,294 | 833,136 | 608,880 |
Net profit attributable to: | |||
Owners of the parent | 932,614 | 830,767 | 607,817 |
Non-controlling interests | € 6,680 | € 2,369 | € 1,063 |
Basic earnings per common share (in € per share) | € 5.11 | € 4.50 | € 3.29 |
Diluted earnings per common share (in € per share) | € 5.09 | € 4.50 | € 3.28 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Net profit | € 939,294 | € 833,136 | € 608,880 |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(Losses) on remeasurement of defined benefit plans | 1,605 | (463) | 34 |
Related tax impact | (376) | 110 | 1 |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | 1,229 | (353) | 35 |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(Losses) on cash flow hedging instruments | 92,898 | (64,130) | 40,109 |
Exchange differences on translating foreign operations | 9,798 | 14,229 | (11,731) |
Related tax impact | (24,626) | 17,960 | (11,291) |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 78,070 | (31,941) | 17,087 |
Total other comprehensive income/(loss), net of tax | 79,299 | (32,294) | 17,122 |
Total comprehensive income | 1,018,593 | 800,842 | 626,002 |
Total comprehensive income attributable to: | |||
Owners of the parent | 1,012,215 | 797,988 | 625,053 |
Non-controlling interests | € 6,378 | € 2,854 | € 949 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Goodwill | € 785,182 | € 785,182 |
Intangible assets | 1,307,388 | 1,138,173 |
Property, plant and equipment | 1,457,825 | 1,353,165 |
Investments and other financial assets | 59,534 | 54,509 |
Deferred tax assets | 203,382 | 168,757 |
Total non-current assets | 3,813,311 | 3,499,786 |
Inventories | 674,662 | 540,575 |
Trade receivables | 232,414 | 185,000 |
Receivables from financing activities | 1,399,997 | 1,143,968 |
Current tax receivables | 16,054 | 14,306 |
Other current assets | 153,183 | 122,224 |
Current financial assets | 87,301 | 13,500 |
Cash and cash equivalents | 1,388,901 | 1,344,146 |
Total current assets | 3,952,512 | 3,363,719 |
Total assets | 7,765,823 | 6,863,505 |
Equity and liabilities | ||
Equity attributable to owners of the parent | 2,592,857 | 2,205,898 |
Non-controlling interests | 9,630 | 5,518 |
Total equity | 2,602,487 | 2,211,416 |
Employee benefits | 110,807 | 101,200 |
Provisions | 180,694 | 150,868 |
Deferred tax liabilities | 126,507 | 95,973 |
Debt | 2,811,779 | 2,630,011 |
Other liabilities | 952,025 | 726,775 |
Other financial liabilities | 19,993 | 36,520 |
Trade payables | 902,968 | 797,832 |
Current tax payables | 58,563 | 112,910 |
Total equity and liabilities | € 7,765,823 | € 6,863,505 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of cash flows [abstract] | |||
Cash and cash equivalents at the beginning of the year | € 1,344,146 | € 1,362,406 | € 897,946 |
Cash flows from operating activities: | |||
Profit before taxes | 1,177,766 | 1,042,231 | 667,035 |
Amortization and depreciation | 546,225 | 455,989 | 426,637 |
Provision accruals | 72,331 | 30,284 | 25,805 |
Result from investments | (6,175) | (6,896) | (4,647) |
Net finance costs | 49,616 | 33,257 | 49,092 |
Other non-cash expenses, net | 46,653 | 23,941 | 39,073 |
Change in inventories | (153,890) | (81,309) | (67,797) |
Change in trade receivables | (48,400) | 1,771 | 44,477 |
Change in trade payables | 103,981 | 72,568 | 8,594 |
Change in receivables from financing activities | (187,890) | (122,746) | (69,376) |
Change in other operating assets and liabilities | 140,008 | (29,840) | (137,313) |
Finance income received | 5,158 | 1,679 | 2,109 |
Finance costs paid | (37,351) | (29,202) | (54,427) |
Income tax paid | (304,692) | (109,001) | (91,051) |
Total cash flows from operating activities | 1,403,340 | 1,282,726 | 838,211 |
Cash flows used in investing activities: | |||
Investments in property, plant and equipment | (347,725) | (352,316) | (357,018) |
Investments in intangible assets | (456,894) | (384,827) | (351,978) |
Investments in joint ventures | (1,367) | 0 | 0 |
Proceeds from the sale of property, plant and equipment and intangible assets | 578 | 4,405 | 969 |
Total cash flows used in investing activities | (805,408) | (732,738) | (708,027) |
Cash flows (used in)/from financing activities: | |||
Proceeds from securitizations, net of repayments | 146,100 | 71,444 | 44,126 |
Net change in other debt | 11,241 | (8,037) | 18,081 |
Repayment of lease liabilities | (16,500) | (21,605) | (20,035) |
Net change in borrowings to banks and other financial institutions | (46,091) | 121,385 | (1,740) |
Repayment of bonds and notes | 0 | (500,000) | 0 |
Proceeds from bonds and notes | 0 | 149,495 | 640,073 |
Dividends paid to owners of the parent | (249,522) | (160,101) | (208,100) |
Dividends paid to non-controlling interests | (2,266) | (1,354) | (2,929) |
Share repurchases | (396,522) | (230,899) | (129,793) |
Total cash flows (used in)/from financing activities | (553,560) | (579,672) | 339,683 |
Translation exchange differences | 383 | 11,424 | (5,407) |
Total change in cash and cash equivalents | 44,755 | (18,260) | 464,460 |
Cash and cash equivalents at the end of the year | € 1,388,901 | € 1,344,146 | € 1,362,406 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Thousands | Total | 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 |
Equity at beginning of period at Dec. 31, 2019 | € 1,487,288 | € 2,573 | € 1,452,720 | € (4,654) | € 40,391 | € (9,740) | € 1,481,290 | € 5,998 |
Net profit | 608,880 | 607,817 | 607,817 | 1,063 | ||||
Other comprehensive income/(loss) | 17,122 | 28,818 | (11,617) | 35 | 17,236 | (114) | ||
Dividends to owners of the parent | (208,765) | (208,765) | (208,765) | |||||
Dividends to non-controlling interests | (2,929) | (2,929) | ||||||
Share repurchases | (129,793) | (129,793) | (129,793) | |||||
Share-based compensation | 17,401 | 17,401 | 17,401 | |||||
Equity at end of period at Dec. 31, 2020 | 1,789,204 | 2,573 | 1,739,380 | 24,164 | 28,774 | (9,705) | 1,785,186 | 4,018 |
Net profit | 833,136 | 830,767 | 830,767 | 2,369 | ||||
Other comprehensive income/(loss) | (32,294) | (46,170) | 13,744 | (353) | (32,779) | 485 | ||
Dividends to owners of the parent | (160,272) | (160,272) | (160,272) | |||||
Dividends to non-controlling interests | (1,354) | (1,354) | ||||||
Share repurchases | (230,899) | (230,899) | (230,899) | |||||
Share-based compensation | 13,895 | 13,895 | 13,895 | |||||
Other movements | 0 | (418) | 418 | |||||
Equity at end of period at Dec. 31, 2021 | 2,211,416 | € 2,573 | 2,192,453 | (22,006) | 42,518 | (9,640) | 2,205,898 | 5,518 |
Net profit | 939,294 | 932,614 | 932,614 | 6,680 | ||||
Other comprehensive income/(loss) | 79,299 | 68,272 | 10,100 | 1,229 | 79,601 | (302) | ||
Dividends to owners of the parent | (249,522) | (249,522) | (249,522) | |||||
Dividends to non-controlling interests | (2,266) | (2,266) | ||||||
Share repurchases | (396,522) | (396,522) | (396,522) | |||||
Share-based compensation | 20,860 | 20,860 | 20,860 | |||||
Other movements | (72) | (112) | (33) | 73 | (72) | |||
Equity at end of period at Dec. 31, 2022 | € 2,602,487 | € 2,499,771 | € 46,233 | € 52,618 | € (8,338) | € 2,592,857 | € 9,630 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
Background and Basis of Presentation [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | Basis of preparation Authorization of consolidated financial statements and compliance with International Financial Reporting Standards These consolidated financial statements of Ferrari N.V. were authorized for issuance by the Board of Directors on February 24, 2023. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as well as IFRS as adopted by the European Union. There is no effect on these consolidated financial statements resulting from differences between IFRS as issued by the IASB and IFRS as adopted by the European Union. The designation IFRS also includes International Accounting Standards (“IAS”) as well as the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The consolidated financial statements are prepared on a going concern basis and applying the historical cost method, modified as required by IFRS for the measurement of certain financial instruments, which are generally measured at fair value. The Group’s presentation currency is the Euro, which is also the functional currency of the Company, and unless otherwise stated amounts are presented in thousands of Euro. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Format of the financial statements The consolidated financial statements include the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity and the accompanying notes (referred to collectively as the “Consolidated Financial Statements”). For presentation of the consolidated income statement, the Group uses a classification based on the function of expenses, as it is more representative of the format used for internal reporting and management purposes and is consistent with international practice. In the consolidated income statement, the Group presents a subtotal for Earnings Before Interest and Taxes (EBIT). EBIT distinguishes between the profit before taxes arising from operating items and those arising from financing activities. 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. For presentation of the consolidated statement of financial position, a mixed format has been selected to present current and non-current assets and liabilities, as permitted by IAS 1 paragraph 60. More specifically, the Consolidated Financial Statements include both industrial and financial services activities. Receivables from financing activities are included in current assets as the investments will be realized in their normal operating cycle. The funding for financial services activities is primarily obtained through securitization programs and funding from certain of the Group’s operating companies. This financial service structure within the Group does not allow the separation of financial liabilities funding the financial services operations (whose assets are reported within current assets) and those funding the industrial operations. Presentation of financial liabilities as current or non-current based on their date of maturity would not facilitate a meaningful comparison with financial assets, which are categorized on the basis of their normal operating cycle. Disclosure as to the due date of the various components of debt is provided in Note 24. The consolidated statement of cash flows is presented using the indirect method. New standards and amendments effective from January 1, 2022 The following new standards and amendments effective from January 1, 2022 were adopted by the Group for the preparation of these Consolidated Financial Statements. In May 2020 the IASB issued amendments to IFRS 3 — Business combinations to update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. There was no effect from the adoption of these amendments. In May 2020 the IASB issued amendments to IAS 16 — Property, Plant and Equipment . The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company should recognize such sales proceeds and the related cost in the income statement. There was no effect from the adoption of these amendments. In May 2020 the IASB issued amendments to IAS 37 — Provisions, Contingent Liabilities and Contingent Assets , which specify which costs a company includes when assessing whether a contract will be loss-making. There was no effect from the adoption of these amendments. In May 2020 the IASB issued Annual Improvements to IFRSs 2018 - 2020 Cycle . The improvements have amended four standards: i) IFRS 1 — First-time Adoption of International Financial Reporting Standards in relation to allowing a subsidiary to measure cumulative translation differences using amounts reported by its parent, ii) IFRS 9 — Financial Instruments in relation to which fees an entity includes when applying the ‘10 percent’ test for derecognition of financial liabilities, iii) IAS 41 — Agriculture in relation to the exclusion of taxation cash flows when measuring the fair value of a biological asset, and iv) IFRS 16 — Leases in relation to an illustrative example of reimbursement for leasehold improvements. There was no effect from the adoption of these amendments. New standards, amendments and interpretations not yet effective The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2023 or subsequent years are listed below: In May 2017 the IASB issued IFRS 17 — Insurance Contracts , which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amendments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their financial performance. The new standard and amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In January 2020 the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments. In February 2021 the IASB issued amendments to IAS 1 — Presentation of Financial 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. The Group does not expect any material impact from the adoption of these amendments. In February 2021 the IASB issued amendments to IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates which clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In May 2021 the IASB issued amendments to IAS 12 — Income Taxes: Deferred Tax related to Assets and Liabilities Arising From a Single Transaction that clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In December 2021 the IASB issued an amendments to IFRS 17 — Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information , which provides a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The amendment is effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of this amendment. 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. Basis of consolidation Subsidiaries Subsidiaries are entities over which the Group has control. Control is achieved when the Group has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line by line basis from the date on which the Group achieves control. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The Group recognizes any non-controlling interests (“NCI”) in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s share of the recognized amounts of the acquiree’s identifiable net assets. Net profit or loss and each component of other comprehensive income/(loss) are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. All significant intra-group balances and transactions and any unrealized gains and losses arising from intra-group transactions are eliminated in preparing the Consolidated Financial Statements. Subsidiaries are deconsolidated from the date when control ceases. When the Group ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value. In 2016 the Group sold a majority stake in Ferrari Financial Services GmbH. From such date, the Group’s remaining interest has been remeasured at fair value and accounted for using the equity method. Interests in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but without having control or joint control over those policies. Associates are accounted for using the equity method of accounting from the date significant influence is obtained. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the consolidated income statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in other comprehensive income/(loss) are recognized in other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associate. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of the losses of an associate exceeds the Group’s interest in that associate, the Group discontinues recognizing its share of further losses. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or when it is classified as available-for-sale. Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes in relation to its interest in the joint operation: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointly, (iii) its revenue from the sale of its share of the output arising from the joint operation, (iv) its share of the revenue from the sale of the output by the joint operation, and (v) its expenses, including its share of any expenses incurred jointly. Foreign currency transactions The functional currency of the Group’s entities is the currency of their primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign currency exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements are recognized in the consolidated income statement. Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the consolidated statement of financial position. Income and expenses are translated into Euro at the average foreign currency exchange rate for the period. Translation differences resulting from the application of this method are classified as currency translation differences within other comprehensive income/(loss) until the disposal of the investment. Average foreign currency exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the consolidated statement of cash flows. Goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency other than the Euro are recognized in the Consolidated Financial Statements in the functional currency and translated at the foreign currency exchange rate at the acquisition date. These balances are translated at subsequent balance sheet dates at the relevant foreign currency exchange rate. The principal foreign currency exchange rates used to translate other currencies into Euro were as follows: 2022 2021 2020 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.0530 1.0666 1.1827 1.1326 1.1422 1.2271 Pound Sterling 0.8528 0.8869 0.8596 0.8403 0.8897 0.8990 Swiss Franc 1.0047 0.9847 1.0811 1.0331 1.0705 1.0802 Japanese Yen 138.0274 140.6600 129.8767 130.3800 121.8458 126.4900 Chinese Yuan 7.0788 7.3582 7.6282 7.1947 7.8747 8.0225 Australian Dollar 1.5167 1.5693 1.5749 1.5615 1.6549 1.5896 Canadian Dollar 1.3695 1.4440 1.4826 1.4393 1.5300 1.5633 Singapore Dollar 1.4512 1.4300 1.5891 1.5279 1.5742 1.6218 Hong Kong Dollar 8.2451 8.3163 9.1932 8.8333 8.8587 9.5142 Intangible assets Goodwill Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Development costs Development costs for car project production and related components, engines and systems are recognized as an asset if, and only if, both of the following conditions under IAS 38 — Intangible Assets are met: that development costs can be measured reliably and that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development costs include all direct and indirect costs that may be directly attributed to the development process. All other research and development costs are expensed as incurred, net of any government grants received. Capitalized development costs are amortized on a straight-line basis from the start of production over the estimated lifecycle of the model or the useful life of the related components or other assets (generally between four The Group incurs significant research and development costs also for its Formula 1 racing activities. These costs are considered fundamental to the development of the road and track car models and prototypes. Technological developments and changes in the regulations of the Formula 1 World Championship generally require the Group to design, develop and construct a new racing car to be used for one year only. The costs incurred for the design, development and construction of a new racing car are generally expensed as incurred unless the technology will be used for more than one year and the costs meet the capitalization criteria in IAS 38. Patents, concessions and licenses Separately acquired patents, concessions and licenses are initially recognized at cost. Patents, concessions and licenses acquired in a business combination are initially recognized at fair value. Patents, concessions and licenses are amortized on a straight-line basis over their useful economic lives, which is generally between three Other intangible assets Other intangible assets mainly relate to the registration of trademarks and have been recognized in accordance with IAS 38 — Intangible Assets , where it is probable that the use of the asset will generate future economic benefits for the Group and where the cost of the asset can be measured reliably. Other intangible assets are measured at cost less any impairment losses and amortized on a straight-line basis over their estimated life, which is generally between three Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost which comprises the purchase price, any costs directly attributable to bringing the assets to the location and condition necessary to be capable of operating in the manner intended by management, capitalized borrowing costs and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized as a loss in the period of replacement in the consolidated income statement. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% Land is not depreciated. If the asset being depreciated consists of separately identifiable components whose useful lives differ from that of the other parts making up the asset, depreciation is charged separately for each of its component parts through application of the ‘component approach’. Leases With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the principal liability and finance costs. Finance costs are charged to the income statement over the lease period using the effective interest rate method. The right-of-use asset is depreciated on a straight-line basis over the lease term. Right-of-use assets are measured at cost comprising the following: (i) the amount of the initial measurement of lease liability; (ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs and, if applicable, (iv) restoration costs. Payments associated with short-term leases and leases of low-value assets are recognized as an expense in the income statement on a straight-line basis. Lease liabilities are measured at the net present value of the following: (i) fixed lease payments, (ii) variable lease payments that are based on an index or a rate and, if applicable, (iii) amounts expected to be payable by the lessee under residual value guarantees, and (iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. Lease liabilities do not include any non-lease components that may be included in the related contracts. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Some lease contracts contain variable payment terms that are linked to sales generated from Ferrari stores. Variable lease payments that depend on sales are recognized in the income statement in the period in which the condition that triggers those payments occurs. Extension and termination options are included in a number of leases related to Ferrari stores, warehouses and machinery and equipment of the Group. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Borrowing costs General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are expensed in net financial expenses if related to the Group’s industrial activities or cost of sales if related to the Group’s financial services activities in the consolidated income statement, as incurred. Impairment of assets The Group continuously monitors its operations to assess whether there is any indication that its intangible assets (including development costs) and its property, plant and equipment may be impaired. Goodwill is tested for impairment annually or more frequently, if there is an indication that an asset may be impaired. If indications of impairment are present, the carrying amount of the asset is reduced to its recoverable amount, which is the higher of fair value less costs of disposal and its value in use. The recoverable amount is determined for the individual asset, unless the asset does not generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets, in which case the asset is tested as part of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In assessing the value in use of an asset or CGU, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the recoverable amount is lower than the carrying amount. Where an impairment loss for assets other than goodwill, subsequently no longer exists or has decreased, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recorded had no impairment loss been recognized. The reversal of an impairment loss is recognized in the consolidated income statement immediately. Financial instruments Presentation Current financial assets include trade receivables, receivables from financing activities, derivative financial instruments, other current financial assets and cash and cash equivalents. Investments and other financial assets include investments accounted for using the equity method as well as other securities and non-current financial assets. Financial liabilities include debt (which primarily includes bonds, notes, asset-backed financing (securitizations) and borrowings from banks), trade payables and other financial liabilities, which mainly include derivative financial instruments. Measurement Financial assets, other than investments accounted for using the equity method, and financial liabilities are measured in accordance with IFRS 9 - Financial Instruments . Except for investments accounted for using the equity method, the Group initially measures financial assets at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Equity instruments held by the Group are recognized at fair value through profit or loss. When market prices are not directly available, the fair value is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). As permitted by IFRS 9, equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value. Trade receivables and receivables from financing activities are originated in the ordinary course of business and held within a business model with the objective to hold the receivables in order to collect contractual cash flows that meet the ‘solely payments of principal and interest’ criterion under IFRS 9, therefore they are measured at amortized cost using the effective interest rate method. Receivables with maturities greater than one year are discounted to present value. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of financial assets may be impaired and, if any such evidence exists, an impairment loss is recognized within financial expenses. Under IFRS 9, a forward-looking expected credit loss model must be applied when assessing impairment. In making impairment assessments, the Group applies the standard simplified approach to estimate the lifetime expected credit losses and considers its historical credit loss experience, adjusted for forward-looking factors specific to the nature of the Group’s receivables and economic environment, which may be different for the Group’s trade receivables compared to receivables from financing activities. If any such evidence exists, an impairment loss is recognized within financial expenses. The Group considers a default to occur and a significant increase in credit risk to occur when the counterparty fails to make contractual payments within a certain number of days of when they fall due. For example, for receivables from financing activities this typically occurs when the counterparty fails to make contractual payments within 60 days of when the related receivables fall due, while for trade receivables this is assessed on a case by case basis. Financial assets and trade receivable are written off when the counterparty fails to make contractual payments and there is no reasonable expectation of recovery, and in any circumstance no later than 360 days. When trade receivables or receivables from financing activities have been written off, the Company may continue to engage in enforcement actions to attempt to recover the receivables. Financial liabilities, with the exception of derivative financial instruments, are measured at amortized cost using the effective interest rate method. Derivative financial instruments Derivative financial instruments are used for economic hedging purposes only in order to reduce financial risks and in particular, foreign currency risks. Derivative financial instruments qualify for hedge accounting only when at the inception of the hedge there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. All derivative financial instruments are measured at fair value. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: Cash flow hedges — Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the consolidated income statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other comprehensive income/(loss). The cumulative gain or loss is reclassified from other comprehensive income/(loss) to the consolidated income statement at the same time as the economic effect arising from the hedged item affects the consolidated income statement. The gain or loss associated with a hedge or part of a hedge that has become ineffective is recognized in the consolidated income statement immediately within net financial income/expenses. When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in other comprehensive income/(loss) and is recognized in the consolidated income statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in other comprehensive income/(loss) is recognized in the consolidated income statement immediately. The Group does not use fair value hedges or hedges of a net investment. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately within financial expenses. Transfers of financial assets The Group sells certain of its receivables from financing activities under securitization programs. Securitization transactions involve the sale of a financial receivables portfolio to a special purpose vehicle, which in turn finances the purchase of such financial receivables by issuing asset-backed securities in the form of notes whose repayment of principal and interest depends on the cash flows generated by the related financial receivables. The receivables sold as part of securitization programs are consolidated until collection from the customer as they do not meet the requirements for derecognition in accordance with IFRS 9. The Group may also sell certain of its trade receivables through factoring transactions without recourse. The Group derecognizes the financial assets when, and only when, the contractual rights and risks to the cash flows arising from the related financial assets are no longer held or the Group has transferred the financial assets. In the case of a transfer of financial assets, if the Group transfers substantially all the risks and rewards of ownership of the financial assets, it derecognizes such assets and separately recognizes as assets or liabilities any rights and obligations created or retained in the trans |
SCOPE OF CONSOLIDATION
SCOPE OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2022 | |
Scope of Consolidation [Abstract] | |
SCOPE OF CONSOLIDATION | 3. SCOPE OF CONSOLIDATION Ferrari N.V. is the parent company of the Group and it holds, directly and indirectly, interests in the Group’s main operating companies. The Group’s scope of consolidation at December 31, 2022 and 2021 was as follows: At December 31, 2022 At December 31, 2021 Name Country Nature of business Shares held by the Group Shares held by NCI Shares held by the Group Shares held by NCI Directly held interests Ferrari S.p.A. Italy Engineering, manufacturing and sales 100 % — % 100 % — % New Business 33 S.p.A. (1) Italy Engineering, manufacturing and sales 100 % — % 100 % — % Indirectly held through Ferrari S.p.A. Ferrari North America Inc. USA Importer and distributor 100 % — % 100 % — % Ferrari Japan KK Japan Importer and distributor 100 % — % 100 % — % Ferrari Australasia Pty Limited Australia Importer and distributor 100 % — % 100 % — % Ferrari International Cars Trading (Shanghai) Co. L.t.d. China Importer and distributor 80 % 20 % 80 % 20 % Ferrari (HK) Limited Hong Kong Importer and distributor 100 % — % 100 % — % Ferrari Far East Pte Limited Singapore Service company 100 % — % 100 % — % Ferrari Management Consulting (Shanghai) Co. L.t.d. China Service company 100 % — % 100 % — % Ferrari South West Europe S.a.r.l. France Service company 100 % — % 100 % — % Ferrari Central Europe GmbH Germany Service company 100 % — % 100 % — % G.S.A. S.A. in liquidation Switzerland Service company 100 % — % 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services, Inc. USA Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Auto Securitization Transaction LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (2) USA Financial services 100 % — % 100 % — % 410 Park Display, Inc. (3) USA Retail 100 % — % 100 % — % _____________________________ (1) New Business 33 S.p.A. was consolidated by the Group starting in 2022, which is when it started operational activities. (2) Shareholding held by Ferrari Financial Services Inc. (3) Shareholding held by Ferrari North America Inc. Non-controlling interests The non-controlling interests at December 31, 2022 and 2021 and the net profit attributable to non-controlling interests for the years ended December 31, 2022, 2021 and 2020 relate to Ferrari International Cars Trading (Shanghai) Co. L.t.d. (“FICTS”), in which the Group holds an 80 percent interest. At December 31, 2022 2021 (€ thousand) Equity attributable to non-controlling interests 9,630 5,518 For the years ended December 31, 2022 2021 2020 (€ thousand) Net profit attributable to non-controlling interests 6,680 2,369 1,063 The non-controlling interests in FICTS are not considered to be significant to the Group for the periods presented in these Consolidated Financial Statements. Restrictions The Group may be subject to restrictions which limit its ability to use cash in relation to its interest in FICTS. In particular, cash held in China is subject to certain repatriation restrictions and may only be repatriated as a repayment of payables or debt, or through a payment of dividends or capital distributions. The Group does not believe that such transfer restrictions have any adverse impacts on its ability to meet liquidity requirements. Cash held in China at December 31, 2022 amounted to €96,726 thousand (€89,611 thousand at December 31, 2021). Cash collected from the settlement of receivables under securitization programs is subject to certain restrictions regarding its use and is principally applied to repay principal and interest of the related funding. Such cash amounted to €44,085 thousand at December 31, 2022 (€47,742 thousand at December 31, 2021). |
NET REVENUES
NET REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
NET REVENUES | 4. NET REVENUES Net revenues are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Cars and spare parts 4,341,482 3,573,119 2,835,170 Sponsorship, commercial and brand 478,499 430,579 390,002 Engines 155,342 189,432 150,655 Other 119,931 77,764 83,963 Total net revenues 5,095,254 4,270,894 3,459,790 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 in 2022, 2021 and 2020 amounted to €69,389 thousand, €55,043 thousand and €65,878 thousand, respectively. |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
COST OF SALES | 5. COST OF SALES Cost of sales in 2022, 2021 and 2020 amounted to €2,648,953 thousand, €2,080,613 thousand and €1,686,324 thousand, respectively, consisting mainly of the cost of materials, components and labor related to the manufacturing and distribution of cars and spare parts and, to a lesser extent, engines sold to Maserati and engines rented to other Formula 1 racing teams. The remaining costs mainly include depreciation, insurance and transportation costs, as well as warranty and product-related costs, which are estimated and recorded at the time of shipment. Interest and other financial expenses from financial services activities included within cost of sales in 2022, 2021 and 2020 amounted to €27,145 thousand, €16,639 thousand and €36,628 thousand, respectively. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 6. SELLING, GENERAL AND ADMINISTRATIVE COSTS Selling costs in 2022, 2021 and 2020 amounted to €226,988 thousand, €168,466 thousand and €171,900 thousand, respectively, consisting 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 through the Formula 1 racing team, Scuderia Ferrari. General and administrative costs in 2022, 2021 and 2020 amounted to €200,986 thousand, €179,558 thousand and €164,226 thousand, respectively, consisting mainly of administrative and other general expenses, including for personnel, that are not directly attributable to manufacturing, sales or research and development activities. |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
RESEARCH AND DEVELOPMENT COSTS | 7. RESEARCH AND DEVELOPMENT COSTS Research and development costs are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Research and development costs expensed during the year 517,842 573,632 526,831 Amortization of capitalized development costs 257,730 194,472 180,554 Total research and development costs 775,572 768,104 707,385 Research and development costs expensed during the period primarily relate to development activities to support the innovation of our product portfolio and components, in particular, in relation to electric and other new technologies, as well as research and development activities for Formula 1 racing. 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 year ended December 31, 2021 and, to a lesser extent, for the year December 31, 2022 are recognized net of technology-related government incentives. |
OTHER EXPENSES_(INCOME), NET
OTHER EXPENSES/(INCOME), NET | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
OTHER EXPENSES/(INCOME), NET | 8. OTHER EXPENSES/(INCOME), NET Other expenses, net are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Other expenses 33,994 13,666 25,067 Other income (12,446) (8,105) (6,592) Other expenses, net 21,548 5,561 18,475 Other expenses primarily include indirect taxes, provisions and other miscellaneous expenses. Other income primarily includes rental income, gains on the disposal of property plant and equipment and other miscellaneous income. Other expenses, net in 2021 include releases of provisions relating to legal disputes following developments favorable to Ferrari. |
NET FINANCIAL EXPENSES
NET FINANCIAL EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Net financial (expenses)/income [Abstract] | |
NET FINANCIAL EXPENSES | 9. NET FINANCIAL EXPENSES The following table sets out details of financial income and expenses, including the amounts reported in the consolidated income statement within the net financial expenses line item, as well as interest income from financial services activities, recognized under net revenues, and interest expenses and other financial charges from financial services activities, recognized under cost of sales. For the years ended December 31, 2022 2021 2020 Financial income: (€ thousand) Interest income from bank deposits 2,414 399 610 Other interest income and financial income 2,166 4,741 517 Interest income and other financial income 4,580 5,140 1,127 Finance income from financial services activities 69,389 55,043 65,878 Total financial income 73,969 60,183 67,005 Total financial income relating to: Industrial activities (A) 4,580 5,140 1,127 Financial services activities (reported in net revenues) 69,389 55,043 65,878 Financial expenses: Capitalized borrowing costs 1,914 1,874 2,591 Other interest and financial expenses (2,778) (3,315) (3,258) Interest expenses and other financial expenses (864) (1,441) (667) Interest expenses from banks and other financial institutions (25,503) (11,310) (14,330) Interest and other finance costs on bonds and notes (23,679) (22,947) (20,116) Write-downs of financial receivables (594) (1,467) (9,502) Other financial expenses (2,008) (5,991) (14,580) Total financial expenses (52,648) (43,156) (59,195) Net expenses from derivative financial instruments and foreign currency exchange rate differences (28,693) (11,880) (27,652) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (81,341) (55,036) (86,847) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial activities (B) (54,196) (38,397) (50,219) Financial services activities (reported in cost of sales) (27,145) (16,639) (36,628) Net financial expenses relating to industrial activities (A+B) (49,616) (33,257) (49,092) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
INCOME TAXES | 10. INCOME TAXES Income tax expense is as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Current tax expense 269,924 218,540 120,115 Deferred tax benefit (30,178) (12,001) (62,474) Taxes relating to prior years (1,274) 2,556 514 Total income tax expense 238,472 209,095 58,155 The Italian Group’s entities participate in a group Italian tax consolidation under Ferrari N.V. Income tax expense amounted to €238,472 thousand, €209,095 thousand and €58,155 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. Income taxes for the years ended December 31, 2022, 2021 and 2020 benefited from the application of the Patent Box tax regime, which provides tax benefits for companies that generate income through the use of intangible assets. Starting in 2020 the Group has applied the Patent Box tax regime for the period from 2020 to 2024, in line with the tax regulations applicable in Italy, and determined the income eligible for the Patent Box regime with recognition of the Patent Box tax benefit in three equal annual installments. The Law Decree (Decree) n. 146 enacted by the Italian authorities, effective from October 22, 2021 and as amended by the 2022 Italian budget law, replaces the previous Patent Box tax regime with a new one that provides a 110% “super tax deduction” for certain costs related to eligible intangible assets. The Decree provides for a specific transitional procedure between the two regimes. In the fourth quarter of 2020, Ferrari benefited from the measures introduced in Italy by art. 110 of the Law Decree n. 104/2020, converted in the Law n. 126/2020, enacting “Urgent measures to support and relaunch the economy”, which reopened the voluntary step up of tangible and intangible assets, with the application of a substitute tax at a rate of 3 percent. In particular, Ferrari S.p.A. benefited from the one-time partial step-up of its trademark for tax purposes. The deferred tax asset will be utilized over a 50-year period (following the introduction of the 2022 Italian budget law (Law 234/2021) which provides for an extension from 18 years to 50 years of the amortization period for tax purposes for any trademarks and goodwill that benefited from the step-up regime) and the substitute tax will be paid in three equal annual installments starting in 2021. The table below provides a reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the applicable corporate tax rate in effect in Italy, which was 24.0 percent for each of the years ended December 31, 2022, 2021 and 2020. For the years ended December 31, 2022 2021 2020 (€ thousand) Theoretical income tax expense 282,664 250,136 160,088 Tax effect on: Permanent and other differences (85,736) (79,267) (129,016) Italian Regional Income Tax (IRAP) 39,446 32,422 22,662 Effect of changes in tax rates and tax regulations 553 633 800 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 1,945 2,077 1,734 Taxes relating to prior years (1,274) 2,556 514 Withholding tax on earnings 875 539 1,373 Income tax expense 238,472 209,095 58,155 Effective tax rate 20.2 % 20.1 % 8.7 % The effective tax rate was 20.2 percent, 20.1 percent and 8.7 percent for t he years ended December 31, 2022, 2021 and 2020, respectively. The increase in the effective tax rate from 8.7 percent in 2020 to 20.1 percent in 2021 was primarily attributable to the tax benefits from the measures introduced in Italy by art. 110 of the Law Decree No. 104/2020, converted in the Law n. 126/2020, enacting “Urgent measures to support and relaunch the economy”, which allowed Ferrari a one-time partial step-up of its trademark for tax purposes resulting in a net tax benefit of €74,700 thousand in 2020 (as further described above) and to a lesser extent, the effects of deductions for eligible research and development costs. The net benefit from the step up is included within “permanent and other differences” for 2020 in the tax rate reconciliation above. The Patent Box benefit relating to 2022, 2021 and 2020 is included within “permanent and other differences” in the tax rate reconciliation above. The Italian Regional Income Tax (“IRAP”) is only applicable to Italian entities and is calculated on a measure of income defined by the Italian Civil Code as the difference between operating revenues and costs, before financial income and expense, and in particular before the cost of fixed-term employees, credit losses and any interest included in lease payments. IRAP is calculated using financial information prepared under Italian accounting standards. IRAP is applied on the tax base at 3.9 percent for each of the years ended December 31, 2022, 2021 and 2020. The analysis of deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021, is as follows: At December 31, 2022 2021 (€ thousand) Deferred tax assets: To be recovered after 12 months 107,252 94,808 To be recovered within 12 months 96,130 73,949 203,382 168,757 Deferred tax liabilities: To be realized after 12 months (86,160) (78,496) To be realized within 12 months (40,347) (17,477) (126,507) (95,973) Net deferred tax assets/(liabilities) 76,875 72,784 The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2021 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2022 (€ thousand) Deferred tax assets arising on: Provisions 103,981 16,556 — (258) 120,279 Deferred income 51,635 — — — 51,635 Employee benefits 3,041 — (376) — 2,665 Foreign currency exchange rate differences 610 2,830 — (1) 3,439 Cash flow hedge reserve 8,455 — (8,455) — — Inventory obsolescence 69,107 31,648 — 80 100,835 Allowances for doubtful accounts 5,178 50 — (5) 5,223 Depreciation 17,555 (15) — (7) 17,533 Trademark step-up 84,537 837 — — 85,374 Patent box 65,693 12,688 — — 78,381 Other 14,328 575 — (59) 14,844 Total deferred tax assets 424,120 65,169 (8,831) (250) 480,208 Deferred tax liabilities arising on: Depreciation (6,781) 2,076 — (352) (5,057) Capitalization of development costs (311,438) (44,134) — (2) (355,574) Employee benefits (1,053) (457) — — (1,510) Foreign currency exchange rate differences (526) (634) — — (1,160) Cash flow hedge reserve — — (16,171) — (16,171) Tax on undistributed earnings (17,404) 6,826 — — (10,578) Other (14,134) 1,332 — (481) (13,283) Total deferred tax liabilities (351,336) (34,991) (16,171) (835) (403,333) Total net deferred tax assets/(liabilities) 72,784 30,178 (25,002) (1,085) 76,875 At December 31, 2020 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2021 (€ thousand) Deferred tax assets arising on: Provisions 90,663 12,712 — 606 103,981 Deferred income 52,241 (606) — — 51,635 Employee benefits 2,931 — 110 — 3,041 Foreign currency exchange rate differences 516 95 — (1) 610 Cash flow hedge reserve — — 8,455 — 8,455 Inventory obsolescence 61,726 7,131 — 250 69,107 Allowances for doubtful accounts 5,643 (474) — 9 5,178 Depreciation 17,551 7 — (3) 17,555 Trademark step-up 83,700 837 — — 84,537 Patent box 27,902 37,791 — — 65,693 Other 6,027 3,927 — 4,374 14,328 Total deferred tax assets 348,900 61,420 8,565 5,235 424,120 Deferred tax liabilities arising on: Depreciation (7,550) 1,217 — (448) (6,781) Capitalization of development costs (264,087) (47,349) — (2) (311,438) Employee benefits (844) (209) — — (1,053) Foreign currency exchange rate differences (559) 33 — — (526) Cash flow hedge reserve (9,505) — 9,505 — — Tax on undistributed earnings (15,861) (1,543) — — (17,404) Other (11,747) (1,568) — (819) (14,134) Total deferred tax liabilities (310,153) (49,419) 9,505 (1,269) (351,336) Total net deferred tax assets/(liabilities) 38,747 12,001 18,070 3,966 72,784 The decision to recognize deferred tax assets is made for each company in the Group by assessing whether the conditions exist for the future recoverability of such assets by taking into account the basis of the most recent forecasts from budgets and business plans. Deferred taxes on the undistributed earnings of subsidiaries have not been recognized, except in cases where it is probable the distribution will occur in the foreseeable future. At December 31, 2022, the aggregate amount of temporary differences related to remaining distributable earnings of the Group’s subsidiaries where deferred tax liabilities have not been recognized amounted to €268,923 thousand (€186,806 thousand at December 31, 2021). |
OTHER INFORMATION BY NATURE
OTHER INFORMATION BY NATURE | 12 Months Ended |
Dec. 31, 2022 | |
Other information by nature [Abstract] | |
OTHER INFORMATION BY NATURE | 11. OTHER INFORMATION BY NATURE Personnel costs in 2022, 2021 and 2020 amounted to €527,316 thousand, €483,747 thousand and €389,927 thousand, respectively. These amounts include costs that were capitalized in connection with product development activities. In 2022, 2021 and 2020 the Group had an average number of employees of 4,691, 4,571 and 4,428, respectively. Depreciation amounted to €259,849 thousand, €230,097 thousand and €217,952 thousand for the years ended December 31, 2022, 2021 and 2020, respectively, and amortization amounted to €286,376 thousand, €225,892 thousand and €208,685 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of Ferrari by the weighted average number of common shares issued and outstanding during the period. The following table provides the amounts used in the calculation of basic earnings per share for the years ended December 31, 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Profit attributable to owners of the Company € thousand 932,614 830,767 607,817 Weighted average number of common shares for basic earnings per common share thousand 182,836 184,446 184,806 Basic earnings per common share € 5.11 4.50 3.29 Diluted earnings per share For the years ended December 31, 2022, 2021 and 2020, the weighted average number of shares for diluted earnings per share was increased to take into consideration the theoretical effect of the potential common shares that would be issued for the Group’s equity incentive plans (assuming 100 percent of the target awards vested). See Note 21 “Share-Based Compensation” for additional details related to the Group’s equity incentive plans. The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Profit attributable to owners of the Company € thousand 932,614 830,767 607,817 Weighted average number of common shares for diluted earnings per common share thousand 183,072 184,722 185,379 Diluted earnings per common share € 5.09 4.50 3.28 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
GOODWILL | 13. GOODWILL At December 31, 2022 and 2021 goodwill amounted to €785,182 thousand. In accordance with IAS 36, goodwill is not amortized and is tested for impairment annually, or more frequently if facts or circumstances indicate that the asset may be impaired. Impairment testing is performed by comparing the carrying amount and the recoverable amount of the CGU. The recoverable amount of the CGU is the higher of its fair value less costs of disposal and its value in use. The assumptions used in this process represent management’s best estimate for the period under consideration. The estimate of the value in use of the CGU for purposes of performing the annual impairment test was based on the following assumptions: • The expected future cash flows covering the period from 2023 through 2026 have been derived from the Ferrari business plan. In particular the estimate considers expected EBITDA adjusted to reflect the expected capital expenditure. These cash flows relate to the CGU in its condition when preparing the financial statements and exclude the estimated cash flows that might arise from restructuring plans or other structural changes. Volumes and sales mix used for estimating the future cash flows are based on assumptions that are considered reasonable and sustainable and represent the best estimate of expected conditions regarding market trends for the CGU over the period considered. • The expected future cash flows include a normalized terminal period used to estimate the future results beyond the time period explicitly considered, which were calculated by using the specific medium/long-term growth rate for the sector equal to 2.0 percent in 2022 (2.0 percent in 2021 and 2020). • The expected future cash flows have been estimated in Euro, and discounted using a post-tax discount rate appropriate for that currency, determined by using a base WACC of 8.10 percent in 2022 (6.84 percent in 2021 and 6.83 percent in 2020). The WACC used reflects the current market assessment of the time value of money for the period being considered and the risks specific to the CGU under consideration. The increase in the WACC in 2022 compared to 2021 is primarily the result of central banks raising interest rates in several regions where the Group operates, which has increased the risk free rate. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 14. INTANGIBLE ASSETS Externally Development Patents, Other Total (€ thousand) Gross carrying amount at 1,803,993 760,333 237,597 50,276 2,852,199 Additions 261,457 101,682 17,151 4,537 384,827 Reclassifications — — 3,200 (3,200) — Translation differences and other movements — — (59) 7 (52) Balance at December 31, 2021 2,065,450 862,015 257,889 51,620 3,236,974 Additions 270,329 146,039 30,566 9,960 456,894 Divestitures (962) (350) — — (1,312) Reclassifications — — 2,924 (2,924) — Translation differences and other movements — — — 9 9 Balance at December 31, 2022 2,334,817 1,007,704 291,379 58,665 3,692,565 Accumulated amortization at January 1, 2021 1,173,914 451,938 202,347 44,710 1,872,909 Amortization 146,664 47,808 29,495 1,925 225,892 Balance at December 31, 2021 1,320,578 499,746 231,842 46,635 2,098,801 Amortization 189,546 68,184 27,153 1,493 286,376 Balance at December 31, 2022 1,510,124 567,930 258,995 48,128 2,385,177 Carrying amount at: January 1, 2021 630,079 308,395 35,250 5,566 979,290 December 31, 2021 744,872 362,269 26,047 4,985 1,138,173 December 31, 2022 824,693 439,774 32,384 10,537 1,307,388 Additions primarily related to externally acquired and internally generated development costs to support the development of our existing and future models. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Land Industrial Plant, machinery and equipment Other Advances and assets under construction Total (€ thousand) Gross carrying amount at 29,391 430,455 2,544,837 213,544 329,743 3,547,970 Additions 16,936 17,852 122,893 20,930 186,846 365,457 Divestitures (13) (3,412) (46,067) (5,586) (135) (55,213) Reclassifications 3,722 40,046 144,684 2,573 (197,599) (6,574) Translation differences and other movements 20 1,736 376 1,633 45 3,810 Balance at December 31, 2021 50,056 486,677 2,766,723 233,094 318,900 3,855,450 Additions 8,287 10,155 154,008 26,479 167,645 366,574 Divestitures — (3,805) (15,388) (6,018) (154) (25,365) Reclassifications 73,631 4,691 165,210 4,322 (247,854) — Translation differences and other movements 16 334 (19) 796 77 1,204 Balance at December 31, 2022 131,990 498,052 3,070,534 258,673 238,614 4,197,863 Accumulated amortization at January 1, 2021 — 184,170 1,995,479 141,691 — 2,321,340 Depreciation — 17,875 191,247 20,975 — 230,097 Divestitures — (608) (43,991) (4,892) — (49,491) Reclassification — (284) (1,123) 284 — (1,123) Translation differences and other movements — 692 12 758 — 1,462 Balance at December 31, 2021 — 201,845 2,141,624 158,816 — 2,502,285 Depreciation — 19,405 216,661 23,783 — 259,849 Divestitures — (1,983) (14,921) (5,921) — (22,825) Translation differences and other movements — 109 (39) 659 — 729 Balance at December 31, 2022 — 219,376 2,343,325 177,337 — 2,740,038 Carrying amount at: January 1, 2021 29,391 246,285 549,358 71,853 329,743 1,226,630 of which right-of use assets under IFRS 16 — 25,574 5,041 29,127 — 59,742 December 31, 2021 50,056 284,832 625,099 74,278 318,900 1,353,165 of which right-of use assets under IFRS 16 — 21,613 3,484 28,661 — 53,758 December 31, 2022 131,990 278,676 727,209 81,336 238,614 1,457,825 of which right-of use assets under IFRS 16 — 18,972 2,756 32,420 — 54,148 Additions primarily relate to industrial tools needed for the production of cars and investments in car production lines (including those for models to be launched in future years), personalization programs and engine assembly lines, as well as investments for the ongoing construction of the new e-building (primarily in 2022), which will be used for the production of battery electric vehicles (BEVs) and related batteries, and tracts of land adjacent to the facilities in Maranello as part of the Group ’s expansion plans (primarily in 2021). The following table summarizes the changes in the carrying amount of right-of-use assets for the year ended December 31, 2022 and 2021: Industrial buildings Plant, machinery and equipment Other assets Total (€ thousand) Balance at January 1, 2021 25,574 5,041 29,127 59,742 Additions 3,987 1,409 7,745 13,141 Disposals (2,780) — (473) (3,253) Depreciation (5,753) (1,348) (8,247) (15,348) Translation differences and other movements 585 (1,618) 509 (524) Balance at January 1, 2022 21,613 3,484 28,661 53,758 Additions 4,854 510 13,485 18,849 Disposals (1,495) (6) (93) (1,594) Depreciation (5,933) (1,223) (9,677) (16,833) Translation differences and other movements (67) (9) 44 (32) Balance at December 31, 2022 18,972 2,756 32,420 54,148 Amounts recognized in the income statement in relation to leases for the year ended December 31, 2022 and 2021 were as follows: For the year ended December 31, 2022 2021 (€ thousand) Depreciation of right-of-use assets 16,833 15,348 Interest expense on lease liabilities 1,219 868 Variable lease payments not included in the measurement of lease liabilities 822 1,622 Expenses relating to short-term leases and leases of low-value assets 3,227 3,671 Total expenses recognized 22,101 21,509 For the year ended December 31, 2022 depreciation of right-of-use assets amounted to €16,833 thousand and interest expense on lease liabilities amounted to €1,219 thousand (€15,348 thousand and €868 thousand, respectively, for the year ended December 31, 2021 ). At December 31, 2022, the Group had contractual commitments for the purchase of property, plant and equipment amounting to €200,949 thousand (€73,681 thousand at December 31, 2021). The increase in contractual commitments for the purchase of property, plant and equipment at December 31, 2022 compared to December 31, 2020 is primarily related to planned investments for the ongoing construction of the new e-building. |
INVESTMENTS AND OTHER FINANCIAL
INVESTMENTS AND OTHER FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Investments and other financial assets [Abstract] | |
INVESTMENTS AND OTHER FINANCIAL ASSETS | 16. INVESTMENTS AND OTHER FINANCIAL ASSETS The composition of investments and other financial assets is as follows: At December 31, 2022 2021 (€ thousand) Investments accounted for using the equity method 49,087 42,927 Other securities and financial assets 10,447 11,582 Total investments and other financial assets 59,534 54,509 Investments accounted for using the equity method Changes in the carrying amount of investments accounted for using the equity method during the period were as follows: (€ thousand) Balance at January 1, 2021 34,663 Additions 1,285 Proportionate share of net profit for the year ended December 31, 2021 6,896 Proportionate share of remeasurement of defined benefit plans 83 Balance at December 31, 2021 42,927 Proportionate share of net profit for the year ended December 31, 2022 6,175 Proportionate share of remeasurement of defined benefit plans (15) Balance at December 31, 2022 49,087 Investments accounted for using the equity method mainly relate to the Group’s investment in Ferrari Financial Services GmbH (“ FFS GmbH ” ) , a German entity that offers retail client financing in certain markets in EMEA (primarily the UK, Germany and Switzerland, and, to a lesser extent, to FS China Limited, a joint venture formed in China in 2021 to manage certain lifestyle activities in the local market, which is in the startup phase. Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2022 and 2021 is presented below: At December 31, 2022 2021 (€ thousand) Assets Non-current assets 3,685 4,037 Receivables from financing activities 1,037,350 908,362 Other current assets 2,637 5,096 Cash and cash equivalents 19,123 14,046 Total assets 1,062,795 931,541 Equity and liabilities Equity 94,914 81,156 Debt 868,652 763,563 Other liabilities 99,229 86,822 Total equity and liabilities 1,062,795 931,541 For the year ended December 31, 2022 2021 2020 (€ thousand) Net revenues 52,100 46,103 37,764 Cost of sales 22,943 16,971 14,864 Selling, general and administrative costs 8,923 8,565 8,494 Other expenses/(income), net 1,116 2,730 1,213 Profit before taxes 19,118 17,837 13,193 Income tax expense 5,336 4,045 3,898 Net profit 13,782 13,792 9,295 Other securities and financial assets Other securities and financial assets primarily include Series C Liberty Formula One shares (the “Liberty Media Shares”) of Liberty Media Corporation (the group responsible for the promotion of the Formula 1 World Championship), which are measured at fair value and amounted to €9,954 thousand at December 31, 2022 (€10,559 thousand at December 31, 2021 ). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
INVENTORIES | 17. INVENTORIES At December 31, 2022 2021 (€ thousand) Raw materials 142,430 99,382 Semi-finished goods 145,459 121,201 Finished goods 386,773 319,992 Total inventories 674,662 540,575 The increase in inventories is mainly due to higher car volumes and the start of production of new models. The amount of inventory write-downs recognized as an expense within cost of sales during 2022 was €18,021 thousand (€9,392 thousand in 2021 and €21,155 thousand in 2020 ). Changes in the provision for slow moving and obsolete inventories were as follows: 2022 2021 (€ thousand) At January 1, 102,098 96,707 Provision 18,021 9,392 Use and other changes (9,156) (4,001) At December 31, 110,963 102,098 |
CURRENT RECEIVABLES AND OTHER C
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS | 18. CURRENT RECEIVABLES AND OTHER CURRENT ASSETS At December 31, 2022 2021 (€ thousand) Trade receivables 232,414 185,000 Receivables from financing activities 1,399,997 1,143,968 Current tax receivables 16,054 14,306 Other current assets 153,183 122,224 Total 1,801,648 1,465,498 Trade receivables The following table sets forth a breakdown of trade receivables by nature: At December 31, 2022 2021 (€ thousand) Trade receivables due from: Dealers 85,696 58,446 Sponsorship and commercial activities 42,981 29,666 Brand activities 24,213 23,902 Stellantis Group companies 19,184 23,737 Other 60,340 49,249 Total 232,414 185,000 Trade receivables due from dealers relate to receivables for the sale of cars across the dealer network and are generally settled within 30 to 40 days from the date of invoice. The increase in trade receivables is mainly driven by higher volumes of cars produced during the period. Trade receivables due from Stellantis Group companies mainly relate to the sale of engines and car bodies to Maserati S.p.A., which is controlled by the Stellantis Group. For additional information, see Note 28 “ Related Party Transactions ”. Trade receivables due from sponsorship and commercial activities mainly relate to the Group’s participation in the Formula 1 World Championship. Trade receivables due from brand activities relate to amounts receivable for licensing and merchandising activities. The Group is not exposed to significant concentration of third party credit risk. The following table sets forth a breakdown of trade receivables by currency: At December 31, 2022 2021 (€ thousand) Trade receivables denominated in: Euro 95,894 78,286 U.S. Dollar 108,369 84,590 Pound Sterling 8,178 3,908 Chinese Yuan 3,203 2,478 Japanese Yen 6,832 11,348 Other currencies 9,938 4,390 Total 232,414 185,000 Trade receivables are shown net of an allowance for doubtful accounts determined on the basis of insolvency risk and historical experience, adjusted for forward-looking factors specific to the receivables and the economic environment. Additional provisions to the allowance for doubtful accounts are recorded within selling, general and administrative costs in the consolidated income statement. Changes in the allowance for doubtful accounts of trade receivables during the year were as follows: 2022 2021 (€ thousand) At January 1, 25,984 28,312 Additional provisions 3,844 2,094 Utilizations (1,579) (1,835) Releases (2,522) (2,741) Other changes 73 154 At December 31, 25,800 25,984 Receivables from financing activities Receivables from financing activities are as follows: At December 31, 2022 2021 (€ thousand) Client financing 1,390,956 1,132,979 Dealer financing 9,041 10,989 Total receivables from financing activities 1,399,997 1,143,968 Receivables from financing activities relate to the financial services portfolio in the United States and are generally secured on the title of cars or other guarantees. Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of insolvency risks, adjusted for forward-looking factors specific to the receivables and the economic environment. Additional provisions to the allowance for doubtful accounts are recorded within cost of sales in the consolidated income statement. Changes in the allowance for doubtful accounts of receivables from financing activities during the year are as follows: 2022 2021 (€ thousand) At January 1, 11,204 13,195 Additional provisions 3,064 2,737 Utilizations (2,587) (4,507) Releases (2,470) (1,270) Other changes 739 1,049 At December 31, 9,950 11,204 Client financing Client financing relates to financing provided by the Group to Ferrari clients to finance their car acquisitions. During 2022 the average contractual duration at inception of such contracts was approximately 67 months (66 months in 2021) and the weighted average interest rate was approximately 6.3 percent (approximately 5.2 percent in 2021). Receivables for client financing are generally secured on the titles of the related cars or other personal guarantees. Client financing relates entirely to financial services activities in the United States and is denominated in U.S. Dollars. Dealer financing In 2022, the Group discontinued dealer financing with the exception of one existing long-term loan bearing a rate of interest based on LIBOR plus a variable spread based on dealer ’ s performance. Other current assets Other current assets are detailed as follows: At December 31, 2022 2021 (€ thousand) Italian and foreign VAT credits 79,858 61,278 Prepayments 42,908 36,084 Other 30,417 24,862 Total other current assets 153,183 122,224 Other includes security deposits, amounts due from personnel and other receivables. At December 31, 2022, the Group had provided guarantees through third parties amounting to €224,630 thousand (€226,878 thousand at December 31, 2021), principally to (i) banks for a U.S. Dollar denominated credit facility of FFS Inc., (ii) tax authorities for VAT reimbursements according to Italian legislation and (iii) customs authorities for duties on import and export activities. The analysis of receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2022 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 186,757 — — 45,657 232,414 Receivables from financing activities 208,407 1,060,819 67,992 62,779 1,399,997 Client financing 207,186 1,052,999 67,992 62,779 1,390,956 Dealer financing 1,221 7,821 — — 9,041 Current tax receivables 16,054 — — — 16,054 Other current assets (excluding prepayments) 110,276 — — — 110,276 Total 521,494 1,060,819 67,992 108,436 1,758,741 At December 31, 2021 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 137,694 70 — 47,237 185,000 Receivables from financing activities 197,207 820,363 73,665 52,733 1,143,968 Client financing 196,018 810,563 73,665 52,733 1,132,979 Dealer financing 1,189 9,800 — — 10,989 Current tax receivables 14,306 — — — 14,306 Other current assets (excluding prepayments) 84,417 998 155 570 86,140 Total 433,624 821,431 73,820 100,540 1,429,414 Overdue amounts represent receivables and other current assets where payments are past their due date. |
CURRENT FINANCIAL ASSETS AND OT
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | 19. CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES At December 31, 2022 2021 (€ thousand) Financial derivatives 80,233 11,565 Other financial assets 7,068 1,935 Current financial assets 87,301 13,500 Current financial assets and other financial liabilities mainly relate to foreign exchange derivatives and interest rate caps. The following table sets forth a breakdown of derivative assets and liabilities at December 31, 2022 and 2021 . At December 31, 2022 2021 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedges: Foreign currency derivatives 41,270 (16,976) 4,437 (34,973) Commodities 5 (772) 182 (1,162) Interest rate caps 36,771 — 6,053 — Total cash flow hedges 78,046 (17,748) 10,672 (36,135) Other foreign currency derivatives 2,187 (2,245) 893 (385) Total 80,233 (19,993) 11,565 (36,520) Foreign currency derivatives that do not meet the requirements to be recognized as cash flow hedges are presented as other foreign currency derivatives. Interest rate caps relate to derivative instruments required as part of certain securitization agreements. The following tables provide an analysis of outstanding derivative financial instruments by foreign currency based on their fair value and notional amounts: At December 31, 2022 At December 31, 2021 Fair Value Notional Amount Fair Value Notional Amount (€ thousand) Currencies: U.S. Dollar 49,466 2,385,494 (17,588) 1,773,022 Pound Sterling 2,811 121,881 (2,343) 154,353 Japanese Yen 2,711 275,700 116 282,482 Swiss Franc (991) 108,459 (2,754) 76,953 Chinese Yuan 2,702 176,062 (1,125) 91,248 Other (1) 3,541 131,319 (1,261) 108,822 Total amount 60,240 3,198,915 (24,955) 2,486,880 ______________________________ (1) Other mainly includes the Australian Dollar, the Canadian Dollar and the Hong Kong Dollar. At December 31, 2022 and 2021, substantially all derivative financial instruments had a maturity of twelve months or less. Cash flow hedges The effects recognized in the consolidated income statement mainly relate to currency risk management and in particular the exposure to fluctuations in the Euro/U.S. Dollar exchange rate for sales in U.S. Dollars. The policy of the Group for managing foreign currency risk normally requires hedging of a portion of projected future cash flows from trading activities and orders acquired (or contracts in progress) in foreign currencies that will occur within the following 12 months. Derivatives relating to foreign currency risk management are treated as cash flow hedges where the derivative qualifies for hedge accounting. The amounts recorded in the cash flow hedge reserve within other comprehensive income will be recognized in the consolidated income statement according to the timing of the flows of the underlying transactions. Management believes that substantially all of the hedging effects arising from these derivative contracts and recorded in the cash flow hedge reserve will be recognized in the consolidated income statement within the following 12 months from the reporting date. The Group reclassified gains and losses, net of the related tax effects, from other comprehensive income/(loss) to the consolidated income statement as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Net revenues/(costs) (75,749) 7,275 19,557 Income tax (expense)/benefit 21,134 (2,030) (5,456) Total recognized in the consolidated income statement (54,615) 5,245 14,101 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
EQUITY | 20. EQUITY Share capital At December 31, 2022 and 2021 the fully paid up share capital of the Company was €2,573 thousand, consisting of 193,923,499 common shares and 63,349,112 special voting shares, all with a nominal value of €0.01. At December 31, 2022 , the Company had 11,970,001 common shares and 5,199 special voting shares held in treasury, while at December 31, 2021, the Company had 10,080,103 common shares and 4,190 special voting shares. Shares in treasury include shares repurchased under the Group’s share repurchase program, which are recorded based on the transaction trade date. The increase in common shares held in treasury primarily reflects the repurchase of shares by the Company through its share repurchase programs, partially offset by shares assigned under the Group’s equity incentive plans. At December 31, 2022 and 2021 the Company held in treasury 4.65 percent and 3.92 percent of the total issued share capital of the Company, respectively. (1) ______________________________________ (1) The percentage of shares held in treasury compared to total issued share capital remains substantially the same if calculated considering only common shares held in treasury or if calculated considering common shares and special voting shares held in treasury. The following table summarizes the changes in the number of outstanding common shares and outstanding special voting shares of the Company for the years ended December 31, 2022 and 2021: Common Shares Special Voting Shares Total Outstanding shares at December 31, 2020 184,747,890 63,346,922 248,094,812 Common shares repurchased under share repurchase program (1) (1,167,592) — (1,167,592) Common shares assigned under equity incentive plans (2) 263,098 — 263,098 Other changes (3) — (2,000) (2,000) Outstanding shares at December 31, 2021 183,843,396 63,344,922 247,188,318 Common shares repurchased under share repurchase program (4) (1,966,816) — (1,966,816) Common shares assigned under equity incentive plans (5) 76,918 — 76,918 Other changes (3) — (1,009) (1,009) Outstanding shares at December 31, 2022 181,953,498 63,343,913 245,297,411 _______________________________________ . (1) Includes shares repurchased under the share repurchase program between January 1, 2021 and December 31, 2021 based on the transaction trade date, for a total consideration of €231,024 thousand, including transaction costs. (2) On March 16, 2021, 356,571 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans as a result of the vesting of certain performance share unit and retention restricted share unit awards. On March 17, 2021, the Company purchased 93,473 common shares, for a total consideration of €15,432 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (Sell to Cover) in an over-the-counter transaction. See Note 21 “Share-Based Compensation” for additional details relating to the Group’s equity incentive plans. (3) Relates to the deregistration of certain special voting shares under the Company’s special voting shares term and conditions. (4) Includes shares repurchased under the share repurchase program between January 1, 2022 and December 31, 2022 based on the transaction trade date, for a total consideration of €384,869 thousand, including transaction costs. (5) On March 16, 2022, 122,125 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans as a result of the vesting of certain performance share unit and retention restricted share unit awards. On the same day, the Company purchased 56,517 common shares, for a total consideration of €10,365 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. On May 25, 2022, 6,643 common shares, which were previously held in treasury, were assigned to certain employees. On the same day, the Company purchased 3,185 common shares, for a total consideration of €562 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. On December 2, 2022, 11,218 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans. On the same day, the Company purchased, 3,366 common shares, for a total consideration of €726 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. See Note 21 “Share-Based Compensation” for additional details relating to the Group’s equity incentive plans. The loyalty voting structure The purpose of the loyalty voting structure is to reward ownership of the Company’s common shares and to promote stability of the Company’s shareholder base by granting long-term shareholders of the Company with special voting shares. Following the separation of Ferrari from the Stellantis Group (previously referred to as Fiat Chrysler Automobiles N.V. or FCA prior to the merger between FCA and Peugeot S.A. completed on January 16, 2021, which resulted in the creation of Stellantis N.V.) in 2016, Exor N.V. (“Exor”) and Piero Ferrari participate in the Company’s loyalty voting program and, therefore, effectively hold two votes for each of the common shares they hold. Investors who purchase common shares may elect to participate in the loyalty voting program by registering their common shares in the loyalty share register and holding them for three years. The loyalty voting program will be affected by means of the issue of special voting shares to eligible holders of common shares. Each special voting share entitles the holder to exercise one vote at the Company’s shareholder meetings. Only a minimal dividend accrues to the special voting shares allocated to a separate special dividend reserve, and the special voting shares do not carry any entitlement to any other reserve of the Group. The special voting shares have only immaterial economic entitlements and, as a result, do not impact the Company’s earnings per share calculation. Retained earnings and other reserves Retained earnings and other reserves includes: • a share premium reserve of €5,768,544 thousand at December 31, 2022 (€5,768,544 thousand at December 31, 2021). • a legal reserve of 19 at December 31, 2022 and €93 thousand at December 31, 2021, determined in accordance with Dutch law. • a treasury reserve of €1,244,045 thousand at December 31, 2022 and €847,525 thousand at December 31, 2021. • a share-based compensation reserve of €28,574 thousand at December 31, 2022 and €28,379 thousand at December 31, 2021. 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 €249,522 thousand, which was fully paid in 2022). The distribution was made from the retained earnings reserve. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 15, 2021, a dividend distribution of €0.867 per common share was approved, corresponding to a total distribution of €160,272 thousand (of which €160,101 thousand was paid in 2021). The distribution was made from the retained earnings reserve. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 16, 2020, a dividend distribution of €1.13 per common share was approved, corresponding to a total distribution of €208,765 thousand (of which €208,100 thousand was paid in 2020). The distribution was made from the retained earnings reserve. Other comprehensive income/(loss) The following table presents other comprehensive income/(loss): For the years ended December 31, 2022 2021 2020 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on remeasurement of defined benefit plans (1) 1,605 (463) 34 Total items that will not be reclassified to the consolidated income statement in subsequent periods 1,605 (463) 34 Items that may be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on cash flow hedging instruments arising during the period 17,149 (56,855) 59,666 Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement 75,749 (7,275) (19,557) Gains/(Losses) on cash flow hedging instruments 92,898 (64,130) 40,109 Exchange differences on translating foreign operations 9,798 14,229 (11,731) Total items that may be reclassified to the consolidated income statement in subsequent periods 102,696 (49,901) 28,378 Total other comprehensive income/(loss) 104,301 (50,364) 28,412 Related tax impact (25,002) 18,070 (11,290) Total other comprehensive income/(loss), net of tax 79,299 (32,294) 17,122 __________________________ (1) Includes a loss of €15 thousand, a gain of €83 thousand and a loss of €4 thousand for the years ended December 31, 2022, 2021 and 2020, respectively, related to the Group’s proportionate share of the remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. Gains and losses on the remeasurement of defined benefit plans include actuarial gains and losses arising during the period and are offset against the related net defined benefit liabilities. The tax effects relating to other comprehensive income/(loss) are summarized in the following table: For the years ended December 31, 2022 2021 2020 Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance (€ thousand) Gains/(Losses) on remeasurement of defined benefit plans 1,605 (376) 1,229 (463) 110 (353) 34 1 35 Gains/(Losses) on cash flow hedging instruments 92,898 (24,626) 68,272 (64,130) 17,960 (46,170) 40,109 (11,291) 28,818 Exchange (losses)/gains on translating foreign operations 9,798 — 9,798 14,229 — 14,229 (11,731) — (11,731) Total other comprehensive (loss)/income 104,301 (25,002) 79,299 (50,364) 18,070 (32,294) 28,412 (11,290) 17,122 Transactions with non-controlling interests With the exception of dividends paid to non-controlling interests, there were no transactions with non-controlling interests for the years ended December 31, 2022, 2021 or 2020. Policies and processes for managing capital The Group’s objectives when managing capital are to create value for shareholders as a whole, safeguard business continuity and support the sustainable growth of the Group. As a result, the Group endeavors to maintain a satisfactory economic return for its shareholders and guarantee economic access to external sources of funds. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share-based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | 21. SHARE-BASED COMPENSATION The Group has several equity incentive plans under which a combination of performance share units (“PSUs”) and retention restricted share units (“RSUs”), which each represent the right to receive one Ferrari common share, have been awarded to the Executive Chairman, the Chief Executive Officer (“CEO”), members of the Ferrari Leadership Team (hereinafter also the “FLT”) and other key employees of the Group. Equity Incentive Plan 2019-2021 In the first quarter of 2022, 68,013 2019-2021 PSU awards vested (representing 100 percent of the target PSU awards) as a result of the achievement of the related performance conditions and 54,112 2019-2021 RSU awards vested upon achievement of the related service conditions. As a result, 122,125 common shares, which were previously held in treasury, were assigned to participants of the plan in the first quarter of 2022. There are no further awards outstanding for the Equity Incentive Plan 2019-2021. Equity Incentive Plan 2020-2022 Under the Equity Incentive Plan 2020-2022 approved in 2020, the Company awarded approximately 60 thousand 2020-2022 PSUs and approximately 48 thousand 2020-2022 RSUs to the Executive Chairman, members of the FLT and other key employees of the Group. These PSUs and RSUs cover the three-year performance and service periods from 2020 to 2022 and vest in 2023. 2020-2022 PSU awards The vesting of the awards is based on the achievement of defined key performance indicators as follows: i) TSR Target - 50 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific Peer Group of eight; ii) EBITDA Target - 30 percent vest based on the achievement of an EBITDA target determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the business plan; iii) Innovation Target - 20 percent vest based on the achievement of defined objectives for technological innovation and the development of the new model pipeline over the performance period. Each target is settled independently of the other targets. In March 2023, 36,090 2020-2022 PSU awards are expected to vest (representing approximately 95 percent of the target PSU awards) as a result of the achievement of the related performance conditions, and an equal number of common shares held in treasury will be assigned to participants of the plan, following which there will be no further 2020-2022 PSU awards outstanding. 2020-2022 RSU awards In March 2023, 32,339 2020-2022 RSU awards are expected to vest as a result of the achievement of the related service conditions, and an equal number of common shares held in treasury will be assigned to participants of the plan, following which there will be no further 2020-2022 PSU awards outstanding. Equity Incentive Plan 2021-2023 Under the Equity Incentive Plan 2021-2023 approved in 2021, the Company awarded approximately 50 thousand 2021-2023 PSUs and approximately 41 thousand 2021-2023 RSUs to the Executive Chairman, members of the FLT and other key employees of the Group. These PSUs and RSUs cover the three-year performance and service periods from 2021 to 2023. 2021-2023 PSU awards The vesting of the awards is based on the achievement of defined key performance indicators as follows: (i) TSR Target - 50 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific Peer Group of eight; (ii) EBITDA Target - 30 percent vest based on the achievement of an EBITDA target determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the Group’s business plan; (iii) Innovation Target - 20 percent vest based on the achievement of defined objectives for technological innovation and the development of the new model pipeline over the performance period. Each target is settled independently of the other targets. The awards vest in 2024 and the total number of shares assigned upon vesting depends on the level of achievement of the targets. 2021-2023 RSU awards The awards vest in 2024, subject to the recipient’s continued employment with the Company at the time of vesting. Equity Incentive Plan 2022-2024 Under a new Equity Incentive Plan 2022-2024 approved in 2022, the Company awarded approximately 72 thousand 2022-2024 PSUs to the Executive Chairman, the CEO, the remaining members of the FLT and other employees of the Group, and approximately 26 thousand 2022-2024 RSUs to members of the FLT and other employees of the Group. These PSUs and RSUs cover the three-year performance and service periods from 2022 to 2024. 2022-2024 PSU awards The vesting of the awards is based on the achievement of defined key performance indicators as follows: (i) TSR Target - 40 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific Peer Group of eleven; (ii) EBITDA Target - 40 percent vest based on the achievement of an EBITDA target determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the Group’s business plan; (iii) ESG Target - 20 percent vest based on the achievement of defined objectives relating to environmental and social factors. In particular, 50 percent of the ESG Target is based on the reduction of CO 2 carbon emission and 50 percent is based on the maintenance of the equity salary certification. Each target is settled independently of the other targets. The awards vest in 2025 and the total number of shares assigned upon vesting depends on the level of achievement of the targets. 2022-2024 RSU awards The awards vest in 2025, subject to the recipient’s continued employment with the Company at the time of vesting. Supplemental information relating to the Equity Incentive Plan 2022-2024 is summarized below. TSR Target The number of 2022-2024 PSUs with a TSR Target that vest under the Equity Incentive Plan 2022-2024 is based on the Company’s TSR performance over the relevant performance period compared to an industry-specific Peer Group as summarized below. Ferrari TSR Ranking % of Target Awards that Vest 1 175% 2 150% 3 125% 4 100% 5 75% 6 50% >6 0% The defined Peer Group (including the Company) for the TSR Target is presented below. Ferrari Aston Martin Burberry Estee Lauder Hermes Kering LVMH Mercedes Benz Group AG Moncler Prada Richemont EBITDA Target The number of 2022-2024 PSUs with an EBITDA Target that vest under the Equity Incentive Plan 2022-2024 is determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the Group’s business plan, as summarized below. Actual Adjusted EBITDA Compared to Business Plan % of Awards that Vest +15% 175% +10% 150% +5% 125% Business Plan Target 100% -5% 75% <-5% 0% Fair values and key assumptions The fair value of the 2022-2024 PSU awards used for accounting purposes was measured at the grant date using a Monte Carlo Simulation model. The fair value of the 2022-2024 RSU awards was measured using the share price at the grant date adjusted for the present value of future distributions which the recipients will not receive during the vesting period. The fair value of the PSUs and RSUs that were awarded under the Equity Incentive Plan 2022-2024, which is determined based on actuarial calculations that apply certain assumptions and take into consideration the specific characteristics of the awards granted, is summarized in the following table. Equity Incentive Plan 2022-2024 PSUs €200.13 RSUs €201.20 The key assumptions utilized to calculate the grant-date fair values of the PSUs that were awarded under the Equity Incentive Plan 2022-2024 are summarized below: Equity Incentive Plan 2022-2024 Grant date share price €205.20 Expected volatility 27.75% Dividend yield 0.75% Risk-free rate 0% The expected volatility was based on the observed volatility of the defined Peer Group. The risk-free rate was based on the iBoxx sovereign Eurozone yield. Outstanding share awards Changes to the outstanding number of PSU and RSU awards under all equity incentive plans of the Group are as follows: Outstanding PSU Awards Outstanding RSU Awards Total Outstanding Awards Balance at January 1, 2021 414,839 159,063 573,902 Granted (1) 49,861 41,460 91,321 Forfeited (19,775) (13,048) (32,823) Vested (292,753) (63,814) (356,567) Balance at December 31, 2021 152,172 123,661 275,833 Granted (2) 72,373 26,574 98,947 Forfeited (16,327) (8,934) (25,261) Vested (68,013) (54,112) (122,125) Balance at December 31, 2022 140,205 87,189 227,394 _______________________________________ (1) Granted under the Equity Incentive Plan 2021-2023. (2) Grander under the Equity Incentive Plan 2022-2024. Other share awards During 2022, the Company (1) awarded 15,271 share awards, which each represent the right to receive one Ferrari common share, to certain employees, of which 6,643 share awards vested immediately at the grant date. At December 31, 2022, 6,628 share awards remained outstanding and will vest in 2023 and 2024, subject to the recipient’s continued employment with the Company at the time of vesting. The fair value of the awards was equal to €203, measured using the share price at the grant date adjusted for the present value of future distributions which the recipients will not receive during the vesting period. Share-based compensation expense For the years ended December 31, 2022, 2021 and 2020 , the Group recognized €16,172 thousand, €11,689 thousand and €17,401 thousand , respectively, as share-based compensation expense and an increase to other reserves in equity in relation to the PSU awards and RSU awards of the Group’s equity incentive plans and other share-based awards to the Group’s employees. At December 31, 2022 , unrecognized compensation expense relating to the Group’s equity incentive plans amounted to €16,069 thousand and is expected to be recognized over the remaining vesting periods through 2024. In 2022 and 2021 the Group also recognized share-based compensation expense of €4,688 thousand and €2,206 thousand, respectively, as part of commercial agreements with certain suppliers. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits [Abstract] | |
EMPLOYEE BENEFITS | 22. EMPLOYEE BENEFITS The Group’s provisions for employee benefits are as follows: At December 31, 2022 2021 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 15,142 18,430 Total present value of defined benefit obligations 15,142 18,430 Other provisions for employees 95,665 82,770 Total provisions for employee benefits 110,807 101,200 Defined contribution plans The Group recognizes the cost for defined contribution plans over the period in which the employee renders service and classifies this by function in cost of sales, selling, general and administrative costs and research and development costs. The total income statement expense for defined contributions plans in the years ended December 31, 2022, 2021 and 2020 was €16,944 thousand, €15,729 thousand and €15,727 thousand, respectively. Defined benefit obligations Italian employee severance indemnity (TFR) Trattamento di fine rapporto or “TFR” relates to the amounts that employees in Italy are entitled to receive when they leave the company and is calculated based on the period of employment and the taxable earnings of each employee. Under certain conditions the entitlement may be partially advanced to an employee during the employee’s working life. The Italian legislation regarding this scheme was amended by Law 296 of 27 December 2006 and subsequent decrees and regulations issued in the first part of 2007. Under these amendments, companies with at least 50 employees are obliged to transfer the TFR to the “Treasury fund” managed by the Italian state-owned social security body (“INPS”) or to supplementary pension funds. Prior to the amendments, accruing TFR for employees of all Italian companies could be managed by the company itself. Consequently, the Italian companies’ obligation to INPS and the contributions to supplementary pension funds take the form, under IAS 19 revised, of “Defined contribution plans” whereas the amounts recorded in the provision for employee severance pay retain the nature of “Defined benefit plans”. Accordingly, the provision for employee severance indemnity in Italy consists of the residual obligation for TFR until December 31, 2006. This is an unfunded defined benefit plan as the benefits have already been almost entirely earned, with the sole exception of future revaluations. Since 2007 the scheme has been classified as a defined contribution plan, and the Group recognizes the associated cost, being the required contributions to the pension funds, over the period in which the employee renders service. The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2020 19,825 105 19,930 Recognized in the consolidated income statement 6 — 6 Recognized in other comprehensive loss/(income) (*) 463 — 463 Other (1,864) (105) (1,969) Benefits paid (2,127) (105) (2,232) Other changes 263 — 263 Amounts at December 31, 2021 18,430 — 18,430 Recognized in the consolidated income statement 22 — 22 Recognized in other comprehensive income/(loss) (*) (1,605) — (1,605) Other (1,705) — (1,705) Benefits paid (1,731) — (1,731) Other changes 26 — 26 Amounts at December 31, 2022 15,142 — 15,142 ______________________________ (*) Relates to actuarial losses/(gains) from financial assumptions. Amounts recognized in the consolidated income statement are as follows: For the years ended December 31, 2022 2021 2020 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — — — 6 — 6 — — — Interest expense 22 — 22 — — — 25 — 25 Past service adjustments — — — — — — — — — Total recognized in the consolidated income statement 22 — 22 6 — 6 25 — 25 Past service adjustments relate to gains recognized in the consolidated income statement due to plan amendments and curtailments. The discount rates used for the measurement of the Italian TFR obligation are based on yields of high-quality (AA- rated) fixed income securities for which the timing and amounts of payments match the timing and amounts of the projected benefit payments. For this plan, the single weighted average discount rate that reflects the estimated timing and amount of the scheme future benefit payments for 2022 is equal to 3.8 percent (0.9 percent in 2021 and 0.4 percent in 2020). The average duration of the Italian TFR is approximately 7 years. Retirement or employee leaving rates are developed to reflect actual and projected Group experience and legal requirements for retirement in Italy. Current service cost is recognized by function in cost of sales, selling, general and administrative costs or research and development costs. The expected future benefit payments for the defined benefit obligations as of December 31, 2022 are as follows: TFR (€ thousand) 2023 1,740 2024 1,448 2025 1,458 2026 1,402 2027 1,518 2028 - 2032 6,019 Total 13,585 The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is: At December 31, 2022 2021 Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate (€ thousand) Impact on defined benefit obligation (904) 1,013 (1,321) 1,507 The above sensitivity analysis is based on an assumed change in the discount rate while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method has been applied as when calculating the defined benefit liability recognized in the statement of the financial position. Other provisions for employees Other provisions for employees consist of the expected future amounts payable to employees in connection with other remuneration schemes, which are not subject to actuarial valuation, including long-term bonus plans. At December 31, 2022, other provisions for employees comprised short-term bonus benefits amounting to €92,463 thousand (€79,273 thousand at December 31, 2021) and jubilee benefits granted to certain employees by the Group in the event of achieving 30 years of service amounting to €3,202 thousand (€3,497 thousand at December 31, 2021). |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
PROVISIONS | 23. PROVISIONS Movements in provisions are as follows: At December 31, 2021 Additional provisions Utilization Releases Translation differences Reclassification and other movements At December 31, 2022 (€ thousand) Warranty and recall campaigns provision 108,767 61,076 (39,958) (3,854) 38 — 126,069 Legal proceedings and disputes 13,701 1,601 (1,213) (1,202) 325 (1,150) 12,062 Environmental and other risks 28,400 17,178 (1,802) (2,468) 105 1,150 42,563 Total provisions 150,868 79,855 (42,973) (7,524) 468 — 180,694 Warranty and recall campaigns The provision for warranty and recall campaigns represents the best estimate of commitments given by the Group for contractual, legal, or constructive obligations arising from product warranties given for a specified period of time. Warranty and recall campaigns provisions are recognized upon shipment and estimated on the basis of the Group’s past experience and contractual terms. Related costs are recognized within cost of sales. Legal proceedings and disputes The provision for legal proceedings and disputes represents management’s best estimate of the expenditures expected to be required to settle or otherwise resolve legal proceedings and disputes. This class of claims relates to allegations by contractual counterparties that the Group has violated the terms of the arrangements, including by terminating the applicable relationships. Judgments in these proceedings may be issued in 2022 or beyond, although any such judgments may remain subject to ongoing judicial review. While the outcome of these proceedings is uncertain, any losses in excess of the provisions recorded are not expected to be material to the Group’s financial condition or results of operations. Additions to the provision for legal proceedings and disputes are recognized within other expenses, net. Environmental and other risks The provision for environmental and other risks primarily relates to environmental risks, including those relating to emissions regulations, as well as to disputes and matters which are not subject to legal proceedings, including disputes with suppliers, distributors, employees and other parties. The following table presents where the additional provisions to environmental and other risks recognized for the years ended December 31, 2022, 2021 and 2020 were recorded within the consolidated income statement. For the years ended December 31, 2022 2021 2020 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 15,616 10,562 6,352 Selling, general and administrative costs 1,562 1,744 1,174 Total 17,178 12,306 7,526 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
DEBT | 24. DEBT Balance at December 31, 2021 Proceeds from borrowings Repayments of borrowings Interest accrued/(paid) and other (*) Translation differences Balance at December 31, 2022 (€ thousand) Bonds and notes 1,487,110 — — 3,209 — 1,490,319 Asset-backed financing (Securitizations) 900,213 218,924 (72,824) 1,733 57,379 1,105,425 Borrowings from banks and other financial institutions 154,419 8,909 (55,000) 560 4,277 113,165 Lease liabilities 56,210 — (16,500) 17,409 304 57,423 Other debt 32,059 34,456 (23,215) — 2,147 45,447 Total debt 2,630,011 262,289 (167,539) 22,911 64,107 2,811,779 ______________________________ (*) Other changes in lease liabilities relates entirely to non-cash movements for the recognition of additional lease liabilities in accordance with IFRS 16. The breakdown of debt by nature and by maturity is as follows: At December 31, 2022 2021 Due within one year Due between Due beyond five years Total Due within one year Due between Due beyond five years Total (€ thousand) Bonds and notes 394,628 646,306 449,385 1,490,319 9,239 1,028,686 449,185 1,487,110 Asset-backed financing (Securitizations) 422,736 682,689 — 1,105,425 343,119 499,280 57,814 900,213 Borrowings from banks and other financial institutions 100,665 12,500 — 113,165 116,919 37,500 — 154,419 Lease liabilities 15,917 29,446 12,060 57,423 14,783 29,732 11,695 56,210 Other debt 45,447 — — 45,447 32,059 — — 32,059 Total debt 979,393 1,370,941 461,445 2,811,779 516,119 1,595,198 518,694 2,630,011 Bonds and notes 2023 Bond On March 16, 2016, the Company issued 1.5 percent coupon notes due March 2023, having a principal of €500 million. The bond was issued at a discount for an issue price of 98.977 percent, resulting in net proceeds of €490,729 thousand, after the debt discount and issuance costs, and a yield to maturity of 1.656 percent. The net proceeds were used, together with additional cash held by the Company, to fully repay a €500 million bank loan. The bond is unrated and was a dmitted to trading on the regulated market of the Euronext Dublin (formerly the Irish Stock Exchange). Following a cash tender offer, on July 16, 2019 the Company executed the repurchase of these notes for an aggregate nominal amount of €115,395 thousand. The amount outstanding at December 31, 2022 was €388,947 thousand, including accrued interest of €4,567 thousand (€387,872 thousand including accrued interest of €4,567 thousand at December 31, 2021). 2025 Bond On May 27, 2020 the Company issued 1.5 percent coupon notes due May 2025 (“2025 Bond”), having a principal of €650 million. The notes were issued at a discount for an issue price of 98.898 percent, resulting in net proceeds of €640,073 thousand, after related expenses, and a yield to maturity of 1.732 percent. The bond was admitted to trading on the regulated market of Euronext Dublin. The amount outstanding of the 2025 Bond at December 31, 2022 was €650,923 thousand, including accrued interest of €5,818 thousand (€648,984 thousand, including accrued interest of €5,850 thousand at December 31, 2021). 2029 and 2031 Notes On July 31, 2019, the Company issued 1.12 percent senior notes due August 2029 (“2029 Notes”) and 1.27 percent senior notes due August 2031 (“2031 Notes”) through a private placement to certain US institutional investors, each having a principal of €150 million. The net proceeds from the issuances amounted to €298,316 thousand and the yields to maturity on an annual basis equal the nominal coupon rates of the Notes. The Notes are primarily used for general corporate purposes, including the funding of capital expenditures. T he amount outstanding of the 2029 Notes at December 31, 2022 was €150,135 thousand, including accrued interest of €700 thousand (€150,052 thousand, including accrued interest of €700 thousand at December 31, 2021). The amount outstanding of the 2031 Notes at December 31, 2022 was €150,178 thousand, including accrued interest of €794 thousand (€150,111 thousand including accrued interest of €794 thousand at December 31, 2021). 2032 Notes On July 29, 2021, the Company issued 0.91 percent senior notes due January 2032 (“2032 Notes”) through a private placement to certain US institutional investors having a principal of €150 million. The net proceeds from the issuance amounted to €149,495 thousand and the yield to maturity on an annual basis equals the nominal coupon rates of the Notes. The Notes are used for general corporate purposes. The amount outstanding of the 2032 Notes at December 31, 2022 was €150,136 thousand, including accrued interest of €577 thousand (€150,091 thousand, including accrued interest of €576 thousand at December 31, 2021). The abovementioned bonds and notes impose covenants on Ferrari including: (i) negative pledge clauses which require that, in case any security interest upon assets of Ferrari is granted in connection with other notes or debt securities with the consent of Ferrari are, or are intended to be, listed, such security should be equally and ratably extended to the outstanding notes, subject to certain permitted exceptions; (ii) pari passu clauses, under which the notes rank and will rank pari passu with all other present and future unsubordinated and unsecured obligations of Ferrari; (iii) events of default for failure to pay principal or interest or comply with other obligations under the notes with specified cure periods or in the event of a payment default or acceleration of indebtedness or in the case of certain bankruptcy events; and (iv) other clauses that are customarily applicable to debt securities of issuers with a similar credit standing. A breach of these covenants may require the early repayment of the notes. At December 31, 2022 and 2021, Ferrari was in compliance with the covenants of the notes. Asset-backed financing (Securitizations) As a means of diversifying its sources of funds, the Group sells certain of its receivables originated by its financial services activities in the United States through asset-backed financing or securitization programs (the terms asset-backed financing and securitization programs are used synonymously throughout this document), without transferring the risks typically associated with the related receivables. As a result, the receivables sold through securitization programs are still consolidated until collection from the customer. The securitization agreements for both programs require the maintenance of an interest rate cap. The following table presents information relating to the revolving securitization programs: Program Funding Limit Amount Outstanding at December 31, 2022 Amount Outstanding at December 31, 2021 Maturity Date ($ million) ($ million) ($ million) Retail (*) 975 896 775 December 2024 Leasing (*) 325 283 245 November 2023 Total asset-backed financing (Securitizations) 1,300 1,179 1,020 (*) At December 31, 2022 the notes relating to the retail securitization program bore interest at a rate per annum equal to the aggregate of a synthetic base rate substantially replicating the LIBOR plus a margin of 70 basis points and the notes relating to the leasing securitization program bore interest at a rate per annum equal to the aggregate of SOFR plus a margin of 65 basis points. 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 €44,085 thousand at December 31, 2022 (€47,742 thousand at December 31, 2021). Borrowings from banks and other financial institutions The following table presents information relating to borrowings from banks and other financial institutions. Borrowing Entity Currency Amount Outstanding at December 31, 2022 Amount Outstanding at December 31, 2021 Maturity Date (€ thousand) (€ thousand) Ferrari S.p.A. EUR 37,500 62,500 June 2024 Ferrari Financial Services, Inc. USD 75,665 61,919 April 2023 Ferrari S.p.A. EUR — 30,000 January 2022 Total borrowings from banks and other financial institutions 113,165 154,419 At December 31, 2022 the Group also had total committed credit lines available and undrawn amounting to €669 million and with maturities ranging from 2023 to 2025 (€676 million at December 31, 2021). Lease liabilities The Group recognizes lease liabilities in relation to right-of-use assets in accordance with IFRS 16 — Leases . At December 31, 2022 lease liabilities amounted to €57,423 thousand (€56,210 thousand at December 31, 2021). Other debt Other debt mainly relates to funding for operating and financing activities of the Group. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER LIABILITIES | 25. OTHER LIABILITIES An analysis of other liabilities is as follows: At December 31, 2022 2021 (€ thousand) Deferred income 270,353 256,206 Advances and security deposits 451,166 240,696 Accrued expenses 98,535 80,787 Payables to personnel 55,789 53,712 Social security payables 26,498 24,660 Other 49,684 70,714 Total other liabilities 952,025 726,775 Deferred income primarily includes amounts received under maintenance and power warranty programs of €239,879 thousand at December 31, 2022 and €218,982 thousand at December 31, 2021, which are deferred and recognized as net revenues over the length of the maintenance program. Of the total liability related to maintenance and power warranty programs at December 31, 2022, the Group expects to recognize in net revenues approximately €61 million in 2023, €56 million in 2024, €40 million in 2025 and €83 million in periods subsequent to 2025. Deferred income also includes amounts collected under various other agreements, which are dependent upon the future performance of a service or other act of the Group, and which are generally recognized in net revenues within the following year. Advances and security deposits include advances received from customers for the purchase of Ferrari cars, primarily Icona and limited edition models. The advances are recognized in net revenues when the cars are shipped. The increase during 2022 primarily relates to advances received during for the Ferrari Daytona SP3 and the 812 Competizione A. Changes in the Group’s contract liabilities for maintenance and power warranties, and advances from customers, were as follows: At January 1, 2022 Additional amounts arising during the period Amounts recognized within revenue Other changes At December 31, 2022 (€ thousand) Maintenance and power warranty programs 218,982 100,710 (79,593) (220) 239,879 Advances from customers 236,516 761,714 (551,885) 49 446,394 |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES | 26. TRADE PAYABLES Trade payables of €902,968 thousand at December 31, 2022 (€797,832 thousands at December 31, 2021) are entirely due within one year. The carrying amount of trade payables is considered to be equivalent to their fair value. The increase in trade payables is mainly driven by higher capex and higher volumes of cars produced during the period. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2022 | |
Fair value measurement [Abstract] | |
FAIR VALUE MEASUREMENT | 27. FAIR VALUE MEASUREMENT IFRS 13 — Fair Value Measurement establishes a three level hierarchy for the inputs to the valuation techniques used to measure fair value by giving the highest priority to quoted prices (unadjusted) in active markets for identical assets and liabilities (level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs). In some cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy at the lowest level input that is significant to the entire measurement. Levels used in the hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly. Level 3 inputs are unobservable inputs for the assets and liabilities. Assets and liabilities that are measured at fair value on a recurring basis The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021: At December 31, 2022 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 9,954 — — 9,954 Current financial assets 19 — 80,233 — 80,233 Total assets 9,954 80,233 — 90,187 Other financial liabilities 19 — 19,993 — 19,993 Total liabilities — 19,993 — 19,993 At December 31, 2021 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 10,559 — — 10,559 Current financial assets 19 — 11,565 — 11,565 Total assets 10,559 11,565 — 22,124 Other financial liabilities 19 — 36,520 — 36,520 Total liabilities — 36,520 — 36,520 There were no transfers between fair value hierarchy levels for the periods presented. The fair value of current financial assets and other financial liabilities relates to derivative financial instruments and is measured by taking into consideration market parameters at the balance sheet date, using widely accepted valuation techniques. In particular, the fair value of foreign currency derivatives (forward contracts, currency swaps and options) and interest rate caps is determined by taking the prevailing foreign currency exchange rates and interest rates, as applicable, at the balance sheet date. The par value of cash and cash equivalents usually approximates fair value due to the short maturity of these instruments, which consist primarily of current bank accounts. Assets and liabilities not measured at fair value on a recurring basis For financial instruments represented by short-term receivables and payables, for which the present value of future cash flows does not differ significantly from carrying value, the Group assumes that carrying value is a reasonable approximation of the fair value. In particular, the carrying amount of current receivables and other current assets and of trade payables and other liabilities approximates their fair value. The following table presents the carrying amount and fair value for the most relevant categories of financial assets and financial liabilities not measured at fair value on a recurring basis: At December 31, 2022 2021 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 18 1,399,997 1,399,997 1,143,968 1,143,968 Client financing 1,390,956 1,390,956 1,132,979 1,132,979 Dealer financing 9,041 9,041 10,989 10,989 Total 1,399,997 1,399,997 1,143,968 1,143,968 Debt 24 2,811,779 2,770,633 2,630,011 2,656,159 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
RELATED PARTY TRANSACTIONS | 28. RELATED PARTY TRANSACTIONS Pursuant to IAS 24, the related parties of Ferrari include Exor N.V., and together with its subsidiaries the Exor Group, as well as all entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries. Related parties also include companies over which the Exor Group is capable of exercising control, joint control or significant influence, including Stellantis N.V., and together with its subsidiaries the Stellantis Group, (previously referred to as Fiat Chrysler Automobiles N.V., FCA or FCA Group, which changed its name to Stellantis as a result of the merger with Peugeot S.A. in January 2021) and CNH Industrial N.V. and its subsidiaries, as well as joint ventures and associates of Ferrari. In addition, members of the Ferrari Board of Directors and executives with strategic responsibilities and their families are also considered related parties. The Group carries out transactions with related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. Transactions carried out by the Group with these related parties are primarily of a commercial nature and, in particular, these transactions relate to: Transactions with Stellantis Group companies • the sale of engines to Maserati S.p.A. (“Maserati”); • the purchase of engine components for the use in the production of Maserati engines from FCA US LLC; • transactions with Stellantis Group companies, mainly relating to a technical cooperations agreement with the aim to enhance the quality and competitiveness of their respective products while reducing costs and investments, to services provided by Stellantis Group companies, including human resources, payroll, tax and the procurement of insurance coverage, as well as to sponsorship revenues received. Transactions with Exor Group companies (excluding Stellantis Group companies) • the Group incurs rental costs from Iveco S.p.A., a company belonging to Iveco Group, related to the rental of trucks used by the Formula 1 racing team; • the Group earns sponsorship revenue from Iveco S.p.A. Transactions with other related parties • the purchase of components for Formula 1 racing cars from COXA S.p.A.; • consultancy services provided by HPE S.r.l.; • sponsorship agreement relating to Formula 1 activities with Ferretti S.p.A.; • sale of cars to certain members of the Board of Directors of Ferrari N.V. and Exor. In accordance with IAS 24, transactions with related parties also include compensation to Directors and managers with strategic responsibilities. The amounts of transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2022 2021 2020 Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses (€ thousand) Stellantis Group companies Maserati 78,946 2,989 — 119,083 2,428 — 100,389 2,981 — FCA US LLC 14 14,861 — — 18,465 — — 13,323 — Other Stellantis Group companies 10,953 5,950 2,696 11,799 6,238 2,103 9,102 6,057 2,207 Total Stellantis Group companies 89,913 23,800 2,696 130,882 27,131 2,103 109,491 22,361 2,207 Exor Group companies (excluding the Stellantis Group) 282 1,611 — 281 1,014 1 150 1,665 2 Other related parties 3,088 14,121 1 795 15,143 2 549 12,977 10 Total transactions with related parties 93,283 39,532 2,697 131,958 43,288 2,106 110,190 37,003 2,219 Total for the Ferrari Group 5,095,254 3,098,475 49,616 4,270,894 2,434,198 33,257 3,459,790 2,040,925 49,092 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses/(income), net. Non-financial assets and liabilities originating from related party transactions are as follows: At December 31, 2022 2021 Trade receivables Trade payables Other current assets Other liabilities Trade receivables Trade payables Other current assets Other liabilities (€ thousand) Stellantis Group companies Maserati 17,458 4,806 — 2,246 23,267 3,994 — 6,454 FCA US LLC 10 4,637 — — — 3,275 — — Other Stellantis Group companies 700 1,978 111 1,063 470 3,075 121 1,074 Total Stellantis Group companies 18,168 11,421 111 3,309 23,737 10,344 121 7,528 Exor Group companies (excluding the Stellantis Group) 343 418 68 73 382 1 8 5 Other related parties 673 3,341 499 504 144 3,276 998 1,065 Total transactions with related parties 19,184 15,180 678 3,886 24,263 13,621 1,127 8,598 Total for the Ferrari Group 232,414 902,968 153,183 952,025 185,000 797,832 122,224 726,775 At December 31, 2022 current financial asse ts with related parties were €4,364 thousand (zero at December 31, 2021) and other financial liabilities with related parties were €429 thousand (zero at December 31, 2021). Emoluments to Directors and Key Management The fees of the Directors of Ferrari N.V. are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Directors of Ferrari N.V. 7,660 6,668 8,151 The aggregate compensation to Directors of Ferrari N.V. for year ended December 31, 2022 was €7,660 thousand (€6,668 thousand in 2021 and €8,151 thousand in 2020), inclusive of the following: • €5,650 thousand for salary and other short-term benefits (€5,445 thousand in 2021 and €624 thousand in 2020); • €230 thousand for pension benefits (there were no pension benefits in 2021 or 2020), and • €1,780 thousand for share-based compensation awarded under the Company’s equity incentive plans and other share-based payments, (€1,223 thousand in 2021 and €7,527 thousand in 2020). See Note 21 “Share-based compensation” for additional information related to the Company’s equity incentive plans. There was no equity-settled compensation for Non-Executive Directors for the years ended December 31, 2022, 2021 and 2020. The aggregate compensation for members of the FLT (excluding the CEO) in 2022 was €33,935 thousand (€18,728 thousand in 2021 and €14,199 thousand in 2020), inclusive of the following: • €28,084 thousand for salary and short-term incentives (€14,088 thousand in 2021 and €8,707 thousand in 2020); • €5,176 thousand for share-based compensation awarded under the Company’s equity incentive plans (€4,241 thousand in 2021 and €5,270 thousand in 2020); and • €675 thousand for pension contributions (€399 thousand in 2021). In response to the healthcare crisis caused by the COVID-19 pandemic, the Board of Directors pledged their full cash compensation from April 2020 to the end of 2020 to help fund Company initiatives to support the communities in which Ferrari operates, with the Ferrari Leadership Team donating 25 percent of their salaries for the same period. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Commitments [Abstract] | |
COMMITMENTS | 29. COMMITMENTS Arrangements with key suppliers From time to time, in the ordinary course of business, the Group enters into various arrangements with key third party suppliers in order to establish strategic and technological advantages. A limited number of these arrangements contain unconditional purchase obligations to purchase a fixed or minimum quantity of goods and/or services with fixed and determinable price provisions. Arrangements with sponsors Certain of the Group’s sponsorship contracts include terms whereby the Group is obligated to purchase a minimum quantity of goods and/or services from its sponsors. Future minimum purchase obligations under these supplier and sponsorship arrangements at December 31, 2022 were as follows: At December 31, 2022 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Minimum purchase obligations 54,964 12,445 3,311 — 70,720 Non-cancellable lease agreements The future aggregate minimum lease payments under non-cancellable leases, primarily relating to the lease of stores and industrial buildings, are as follows: At December 31, 2022 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Future minimum lease payments under lease agreements 16,178 19,775 11,886 12,785 60,624 |
QUALITATIVE AND QUANTITATIVE IN
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS | 12 Months Ended |
Dec. 31, 2022 | |
Qualitative and quantitative information on financial risks [Abstract] | |
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS | 30. QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS The Group is exposed to the following financial risks connected with its operations: • financial market risk (principally relating to foreign currency exchange rates and to a lesser extent, interest rates and commodity prices), as the Group operates internationally in different currencies; • liquidity risk, with particular reference to the availability of funds and access to the credit markets, should the Group require them, and to financial instruments in general; • credit risk, arising from normal commercial relations with final clients and dealers, as well as the Group’s financing activities. These risks could significantly affect the Group’s financial position, results of operations and cash flows, and for this reason the Group identifies and monitors these risks, in order to detect potential negative effects in advance and take the necessary action to mitigate them, primarily through the Group’s operating and financing activities and if required, through the use of derivative financial instruments. The following section provides qualitative and quantitative disclosures on the effect that these risks may have upon the Group. The quantitative data reported in the following section does not have any predictive value. In particular, the sensitivity analysis on financial market risks does not reflect the complexity of the market or the reaction which may result from any changes that are assumed to take place. Financial market risks Due to the nature of the Group’s business, the Group is exposed to a variety of market risks, including foreign currency exchange rate risk and to a lesser extent, interest rate risk and commodity price risk. The Group’s exposure to foreign currency exchange rate risk arises from the geographic distribution of the Group’s shipments, as the Group generally sells its models in the currencies of the various markets in which the Group operates, while the Group’s industrial activities are all based in Italy, and primarily denominated in Euro. The Group’s exposure to interest rate risk arises from the need to fund certain activities and the necessity to deploy surplus funds. Changes in market interest rates may have the effect of either increasing or decreasing the Group’s net profit/(loss), thereby indirectly affecting the costs and returns of financing and investing transactions. The Group has in place various risk management policies, which primarily relate to foreign exchange and commodity price, interest rate and liquidity risks. The Group’s risk management policies permit derivatives to be used for managing such risk exposures at risk. Counterparties to these agreements are major financial institutions. Derivative financial instruments can only be executed for hedging purposes. In particular, the Group used derivative financial instruments as cash flow hedges primarily for the purpose of limiting the negative impact of foreign currency exchange rate fluctuations on forecasted transactions denominated in foreign currencies. Accordingly, as a result of applying risk management policies with respect to foreign currency exchange exposure, the Group’s results of operations have not been fully exposed to fluctuations in foreign currency exchange rates. However, despite these risk management policies and hedging transactions, sudden adverse movements in foreign currency exchange rates could have a significant effect on the Group’s earnings and cash flows. The Group also enters into interest rate caps as required by certain of its securitization agreements. Information on the fair value of derivative financial instruments held is provided in Note 19. Information on foreign currency exchange rate risk The Group is exposed to risks resulting from changes in foreign currency exchange rates, which can affect its earnings and equity. In particular: • Where a Group company incurs costs in a currency different from that of its revenues, any change in foreign currency exchange rates can affect the operating results of that company. In 2022, the total trade flows exposed to foreign currency exchange rate risk amounted to the equivalent of 65 percent of the Group’s net revenues (58 percent in 2021 and 58 percent in 2020). • The main foreign currency exchange rate to which the Group is exposed is the Euro/U.S. Dollar for sales in U.S. Dollar in the United States and other markets where the U.S. Dollar is the reference currency. In 2022, the value of commercial activities exposed to fluctuations in the Euro/U.S. Dollar exchange rate accounted for approximately 52 percent (51 percent in 2021 and 53 percent in 2020) of the total currency risk from commercial activities. In 2022 the commercial activities exposed to the Euro/Chinese Renminbi exchange rate and the Euro/Japanese Yen exchange rate exceeded 10 percent (in 2021 and 2020 the Euro/Japanese Yen exchange rate and the Euro/Pound Sterling exchange rate exceeded 10 percent) of the total currency risk from commercial activities. Other significant exposures included the exchange rate between the Euro and the following currencies: Swiss Franc, Canadian Dollar and Australian Dollar. None of these exposures, taken individually, exceeded 10 percent of the Group’s total foreign currency exchange rate exposure for commercial activities in 2022, 2021 and 2020. It is the Group’s policy to use derivative financial instruments (primarily forward currency contracts and currency options) to hedge up to 90 percent of the principal exposures to foreign currency exchange risk, typically for a period of up to twelve months. • Several subsidiaries are located in countries that are outside the Eurozone, in particular the United States, China, Hong Kong, Japan and Australia. As the Group’s reporting currency is the Euro, the income statements of those companies are translated into Euro using the average exchange rate for the period and, even if revenues and margins are unchanged in local currency, changes in exchange rates can impact the amount of revenues, costs and profit as translated into Euro. • The amount of assets and liabilities of consolidated companies that report in a currency other than the Euro may vary from period to period as a result of changes in exchange rates. The effects of these changes are recognized directly in equity as a component of other comprehensive income/(loss) under gains/(losses) from currency translation differences. The Group monitors its principal exposure to translation exchange risk, although the Group did not engage in any specific hedging activities in relation to translation exchange risk for the periods presented. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements, are recognized in the consolidated income statement within the net financial income/(expenses) line item or as cost of sales for charges arising from financial services companies. The Group uses specific financial derivatives to hedge these exposures. The impact of foreign currency exchange rate differences recorded within financial income/(expenses) for the year ended December 31, 2022, including the costs of hedging foreign currency exchange rate risk, amounted to net losses of €25,923 thousand (net losses of €11,407 thousand and €27,029 thousand for the years ended December 31, 2021 and 2020, respectively). All of the Group’s financial services activities are conducted in the functional currencies of the related financial services companies, therefore the impact of foreign currency exchange rate differences arising from financial services activities was zero in all periods presented. Except as noted above, there have been no substantial changes in 2022 in the nature or structure of exposure to foreign currency exchange rate risks or in the Group’s hedging policies. The potential decrease in fair value of derivative financial instruments held by the Group at December 31, 2022 to hedge against foreign currency exchange rate risks, which would arise in the case of a hypothetical, immediate and adverse change of 10 percent in the exchange rates of the major foreign currencies with the Euro, would be approximately €174,550 thousand (€98,165 thousand at December 31, 2021). Receivables, payables and future trade flows for which hedges have been put in place were not included in the analysis. It is reasonable to assume that changes in foreign currency exchange rates will produce the opposite effect, of an equal or greater amount, on the underlying transactions that have been hedged. The sensitivity analysis is based on currency hedging in place at the end of the period, which can vary during the period and assumes unchanged market conditions other than exchange rates, such as volatility and interest rates. For this reason, it is purely indicative. Information on interest rate risk The Group’s exposure to interest rate risk, though less significant, arises from the need to fund financial services activities and the necessity to deploy surplus funds. Changes in market interest rates may have the effect of either increasing or decreasing the Group’s net profit/(loss), thereby indirectly affecting the costs and returns of financing and investing transactions. The Group’s most significant floating rate financial assets at December 31, 2022 were cash and cash equivalents and certain receivables from financing activities (related to client and dealer financing), while 42 percent of the Group’s gross debt bears floating rates of interest (37 percent at December 31, 2021). At December 31, 2022, a decrease of 10 basis points in interest rates on floating rate financial assets and debt, with all other variables held constant, would have resulted in a decrease in profit before taxes of €303 thousand on an annual basis (a decrease of €486 thousand at December 31, 2021). The analysis is based on the assumption that floating rate financial assets and debt which expire during the projected 12-month period will be renewed or reinvested in similar instruments, bearing the hypothetical short-term interest rates. Information on commodity price risk The Group’s exposure to commodity price risk, though much less significant than foreign exchange rate risk and interest rate risk, arises from the need to use a variety of raw materials in the Group’s operations, including aluminum and precious metals such as palladium and rhodium. The Group monitors its exposure to commodity price risk and may hedge a portion of such exposure through derivative financial instruments (primarily commodity swaps). Liquidity risk Liquidity risk arises if the Group is unable to obtain the funds needed to carry out its operations and meet its obligations. The main determinant of the Group’s liquidity position is the cash generated by or used in operating and investing activities. From an operating point of view, the Group manages liquidity risk by monitoring cash flows and keeping an adequate level of funds readily available. The main funding operations and investments in cash and marketable securities of the Group are centrally managed or supervised by the treasury department with the aim of ensuring effective and efficient management of the Group’s liquidity. The Group has established various policies which are managed or supervised centrally by the treasury department with the purpose of optimizing the management of funds and reducing liquidity risk which include: • centralizing liquidity management through the use of cash pooling arrangements • maintaining a conservative level of available liquidity • diversifying sources of funding • obtaining adequate credit lines • monitoring future liquidity requirements on the basis of business planning Intercompany financing between Group entities is not restricted other than through the application of covenants requiring that transactions with related parties be conducted at arm’s length terms. Details on the maturity profile of the Group’s financial assets and liabilities and on the structure of derivative financial instruments are provided in Notes 19 and 24. Details of the repayment of derivative financial instruments are provided in Note 19. To preventively and prudently manage potential liquidity or refinancing risks in the foreseeable future, the Group has secured available undrawn committed credit lines, which amounted to €669 million and €676 million at December 31, 2022 and 2021. The Group believes that its total available liquidity (defined as cash and cash equivalents plus undrawn committed credit lines), in addition to funds that will be generated from operating activities, will enable Ferrari to satisfy the requirements of its investing activities and working capital needs fulfill its obligations to repay its debt and ensure an appropriate level of operating and strategic flexibility. The Group therefore believes there is no significant risk of a lack of liquidity. Credit risk Credit risk is the risk of economic loss arising from the failure to fully collect receivables. Credit risk encompasses the direct risk of default and the risk of a deterioration of the creditworthiness of the counterparty. The maximum credit risk to which the Group is theoretically exposed at December 31, 2022 is represented by the carrying amounts of the financial assets presented in the consolidated statement of financial position sheet and the nominal value of the guarantees provided. Dealers and clients are subject to a specific evaluation of their creditworthiness. Additionally, it is Group practice to obtain financial guarantees against risks associated with credit granted for the purchase of cars and parts. These guarantees are further strengthened, where possible, by retaining title on cars subject to financing agreements. Credit positions of material significance are evaluated on an individual basis. Where objective evidence exists that they are uncollectible, in whole or in part, specific write-downs are recognized. The amount of the write-down is based on an estimate of the recoverable cash flows, the timing of those cash flows, the cost of recovery and the fair value of any guarantees received. Receivables from financing activities amounting to €1,399,997 thousand at December 31, 2022 (€1,143,968 thousand at December 31, 2021) are shown net of the allowance for doubtful accounts amounting to €9,950 thousand (€11,204 thousand at December 31, 2021). After considering the allowance for doubtful accounts, €62,779 thousand of receivables were overdue (€52,733 thousand at December 31, 2021). Therefore, overdue receivables represent a minor portion of receivables from financing activities. Receivables from financing activities relate entirely to the financial services portfolio in the United States and such receivables are generally secured on the titles of cars or other guarantees. Trade receivables amounting to €232,414 thousand at December 31, 2022 (€185,000 thousand at December 31, 2021) are shown net of the allowance for doubtful accounts amounting to €25,800 thousand (€25,984 thousand at December 31, 2021). After considering the allowance for doubtful accounts, €45,657 thousand of receivables were overdue (€47,237 thousand at December 31, 2021). |
ENTITY-WIDE DISCLOSURES
ENTITY-WIDE DISCLOSURES | 12 Months Ended |
Dec. 31, 2022 | |
Entity-wide disclosures [Abstract] | |
ENTITY-WIDE DISCLOSURES | 31. ENTITY-WIDE DISCLOSURES The following table presents an analysis of net revenues by geographic location of the Group’s customers for the years ended December 31, 2022 and 2021, including the effects of foreign currency hedge transactions. Revenues by geography presented for material individual countries are not necessarily correlated to shipments of cars as certain countries include revenues from sponsorship and commercial activities relating to Ferrari’s participation in the Formula 1 World Championship. For the years ended December 31, 2022 2021 2020 (€ thousand) Italy 379,898 409,992 322,573 Rest of EMEA 2,045,888 1,869,864 1,634,515 of which UK 536,280 457,060 484,701 of which Germany 430,380 367,087 280,191 Americas (1) 1,407,790 1,097,904 883,228 of which United States of America 1,198,834 930,316 747,373 Mainland China, Hong Kong and Taiwan 621,407 332,971 191,907 Rest of APAC (2) 640,271 560,163 427,567 Total net revenues 5,095,254 4,270,894 3,459,790 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America. (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia. The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2022 2021 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 1,418,846 785,182 1,307,127 1,322,257 785,182 1,137,910 Rest of EMEA 4,830 — — 5,597 — — Americas (1) 27,233 — — 16,003 — — Mainland China, Hong Kong and Taiwan 4,598 — — 5,898 — — Rest of APAC (2) 2,318 — 261 3,410 — 263 Total 1,457,825 785,182 1,307,388 1,353,165 785,182 1,138,173 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America. (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia. |
NOTES TO THE CASH FLOW STATEMEN
NOTES TO THE CASH FLOW STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Statement of cash flows [abstract] | |
NOTES TO THE CASH FLOW STATEMENTS | 32. NOTES TO THE CASH FLOW STATEMENT At December 31, 2022, cash and cash equivalents included €100,000 thousand relating to a time deposit held with a recognized international financial institution, which originated in December 2022 and matures in March 2023. Other non-cash expenses, net primarily includes equity-settled share-based compensation, allowances for doubtful accounts of trade receivables and provisions for slow moving and obsolete inventories. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events [Abstract] | |
SUBSEQUENT EVENTS | 33. SUBSEQUENT EVENTS The Group has evaluated subsequent events through February 24, 2023, which is the date the Consolidated Financial Statements were authorized for issuance, and identified the following matters: Under the common share repurchase program, from January 1, 2023 to February 17, 2023 the Company purchased an additional 186,503 common shares for total consideration of €42.1 million. At February 17, 2023 the Company held in treasury an aggregate of 12,156,504 common shares. On February 24, 2023, the Board of Directors of Ferrari N.V. recommended to the Company’s shareholders that the Company declare a dividend of €1.810 per common share, totaling approximately €329 million. The proposal is subject to the approval of the Company’s shareholders at the Annual General Meeting to be held on April 14, 2023. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
New standards and amendments and interpretations | New standards and amendments effective from January 1, 2022 The following new standards and amendments effective from January 1, 2022 were adopted by the Group for the preparation of these Consolidated Financial Statements. In May 2020 the IASB issued amendments to IFRS 3 — Business combinations to update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. There was no effect from the adoption of these amendments. In May 2020 the IASB issued amendments to IAS 16 — Property, Plant and Equipment . The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company should recognize such sales proceeds and the related cost in the income statement. There was no effect from the adoption of these amendments. In May 2020 the IASB issued amendments to IAS 37 — Provisions, Contingent Liabilities and Contingent Assets , which specify which costs a company includes when assessing whether a contract will be loss-making. There was no effect from the adoption of these amendments. In May 2020 the IASB issued Annual Improvements to IFRSs 2018 - 2020 Cycle . The improvements have amended four standards: i) IFRS 1 — First-time Adoption of International Financial Reporting Standards in relation to allowing a subsidiary to measure cumulative translation differences using amounts reported by its parent, ii) IFRS 9 — Financial Instruments in relation to which fees an entity includes when applying the ‘10 percent’ test for derecognition of financial liabilities, iii) IAS 41 — Agriculture in relation to the exclusion of taxation cash flows when measuring the fair value of a biological asset, and iv) IFRS 16 — Leases in relation to an illustrative example of reimbursement for leasehold improvements. There was no effect from the adoption of these amendments. New standards, amendments and interpretations not yet effective The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2023 or subsequent years are listed below: In May 2017 the IASB issued IFRS 17 — Insurance Contracts , which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amendments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their financial performance. The new standard and amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In January 2020 the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments. In February 2021 the IASB issued amendments to IAS 1 — Presentation of Financial 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. The Group does not expect any material impact from the adoption of these amendments. In February 2021 the IASB issued amendments to IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates which clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In May 2021 the IASB issued amendments to IAS 12 — Income Taxes: Deferred Tax related to Assets and Liabilities Arising From a Single Transaction that clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In December 2021 the IASB issued an amendments to IFRS 17 — Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information , which provides a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The amendment is effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of this amendment. 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. |
Subsidiaries | Subsidiaries Subsidiaries are entities over which the Group has control. Control is achieved when the Group has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line by line basis from the date on which the Group achieves control. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The Group recognizes any non-controlling interests (“NCI”) in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s share of the recognized amounts of the acquiree’s identifiable net assets. Net profit or loss and each component of other comprehensive income/(loss) are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. All significant intra-group balances and transactions and any unrealized gains and losses arising from intra-group transactions are eliminated in preparing the Consolidated Financial Statements. Subsidiaries are deconsolidated from the date when control ceases. When the Group ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value. In 2016 the Group sold a majority stake in Ferrari Financial Services GmbH. From such date, the Group’s remaining interest has been remeasured at fair value and accounted for using the equity method. |
Interest in associates | Interests in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but without having control or joint control over those policies. Associates are accounted for using the equity method of accounting from the date significant influence is obtained. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the consolidated income statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in other comprehensive income/(loss) are recognized in other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associate. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of the losses of an associate exceeds the Group’s interest in that associate, the Group discontinues recognizing its share of further losses. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or when it is classified as available-for-sale. |
Interests in joint operations | Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes in relation to its interest in the joint operation: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointly, (iii) its revenue from the sale of its share of the output arising from the joint operation, (iv) its share of the revenue from the sale of the output by the joint operation, and (v) its expenses, including its share of any expenses incurred jointly. |
Foreign currency transactions | Foreign currency transactions The functional currency of the Group’s entities is the currency of their primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign currency exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements are recognized in the consolidated income statement. Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the consolidated statement of financial position. Income and expenses are translated into Euro at the average foreign currency exchange rate for the period. Translation differences resulting from the application of this method are classified as currency translation differences within other comprehensive income/(loss) until the disposal of the investment. Average foreign currency exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the consolidated statement of cash flows. Goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency other than the Euro are recognized in the Consolidated Financial Statements in the functional currency and translated at the foreign currency exchange rate at the acquisition date. These balances are translated at subsequent balance sheet dates at the relevant foreign currency exchange rate. The principal foreign currency exchange rates used to translate other currencies into Euro were as follows: 2022 2021 2020 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.0530 1.0666 1.1827 1.1326 1.1422 1.2271 Pound Sterling 0.8528 0.8869 0.8596 0.8403 0.8897 0.8990 Swiss Franc 1.0047 0.9847 1.0811 1.0331 1.0705 1.0802 Japanese Yen 138.0274 140.6600 129.8767 130.3800 121.8458 126.4900 Chinese Yuan 7.0788 7.3582 7.6282 7.1947 7.8747 8.0225 Australian Dollar 1.5167 1.5693 1.5749 1.5615 1.6549 1.5896 Canadian Dollar 1.3695 1.4440 1.4826 1.4393 1.5300 1.5633 Singapore Dollar 1.4512 1.4300 1.5891 1.5279 1.5742 1.6218 Hong Kong Dollar 8.2451 8.3163 9.1932 8.8333 8.8587 9.5142 |
Consolidation of foreign entities | Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the consolidated statement of financial position. Income and expenses are translated into Euro at the average foreign currency exchange rate for the period. Translation differences resulting from the application of this method are classified as currency translation differences within other comprehensive income/(loss) until the disposal of the investment. Average foreign currency exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the consolidated statement of cash flows. Goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency other than the Euro are recognized in the Consolidated Financial Statements in the functional currency and translated at the foreign currency exchange rate at the acquisition date. These balances are translated at subsequent balance sheet dates at the relevant foreign currency exchange rate. |
Goodwill and Recoverability of Goodwill | Goodwill Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Recoverability of goodwill In accordance with IAS 36 — Impairment of Assets , goodwill is not amortized and is tested for impairment annually or more frequently if facts or circumstances indicate that the asset may be impaired. As the Group is composed of one operating segment, goodwill is tested at the Group level, which represents the lowest level within the Group at which goodwill is monitored for internal management purposes in accordance with IAS 36. The impairment test is performed by comparing the carrying amount (which mainly comprises property, plant and equipment, goodwill and capitalized development costs) and the recoverable amount of the CGU. The recoverable amount of the CGU is the higher of its fair value less costs of disposal and its value in use. For the period covered by these Consolidated Financial Statements, the Group did not recognize any impairment charges for goodwill. |
Development costs, patents, concessions and licenses and other intangible assets and Recoverability of non-current assets with definitely useful lives | Development costs Development costs for car project production and related components, engines and systems are recognized as an asset if, and only if, both of the following conditions under IAS 38 — Intangible Assets are met: that development costs can be measured reliably and that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development costs include all direct and indirect costs that may be directly attributed to the development process. All other research and development costs are expensed as incurred, net of any government grants received. Capitalized development costs are amortized on a straight-line basis from the start of production over the estimated lifecycle of the model or the useful life of the related components or other assets (generally between four The Group incurs significant research and development costs also for its Formula 1 racing activities. These costs are considered fundamental to the development of the road and track car models and prototypes. Technological developments and changes in the regulations of the Formula 1 World Championship generally require the Group to design, develop and construct a new racing car to be used for one year only. The costs incurred for the design, development and construction of a new racing car are generally expensed as incurred unless the technology will be used for more than one year and the costs meet the capitalization criteria in IAS 38. Patents, concessions and licenses Separately acquired patents, concessions and licenses are initially recognized at cost. Patents, concessions and licenses acquired in a business combination are initially recognized at fair value. Patents, concessions and licenses are amortized on a straight-line basis over their useful economic lives, which is generally between three Other intangible assets Other intangible assets mainly relate to the registration of trademarks and have been recognized in accordance with IAS 38 — Intangible Assets , where it is probable that the use of the asset will generate future economic benefits for the Group and where the cost of the asset can be measured reliably. Other intangible assets are measured at cost less any impairment losses and amortized on a straight-line basis over their estimated life, which is generally between three Non-current assets with definite useful lives include property, plant and equipment and intangible assets. Intangible assets with definite useful lives mainly consist of capitalized development costs. The Group periodically reviews the carrying amount of non-current assets with definite useful lives when events and circumstances indicate that an asset may be impaired. Impairment tests are performed by comparing the carrying amount and the recoverable amount of the cash-generating unit (“CGU”). The recoverable amount is the higher of the CGU’s fair value less costs of disposal and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU. |
Property, plant and equipment and Recoverability of non-current assets with definite useful lives | Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost which comprises the purchase price, any costs directly attributable to bringing the assets to the location and condition necessary to be capable of operating in the manner intended by management, capitalized borrowing costs and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized as a loss in the period of replacement in the consolidated income statement. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% Land is not depreciated. If the asset being depreciated consists of separately identifiable components whose useful lives differ from that of the other parts making up the asset, depreciation is charged separately for each of its component parts through application of the ‘component approach’. Non-current assets with definite useful lives include property, plant and equipment and intangible assets. Intangible assets with definite useful lives mainly consist of capitalized development costs. The Group periodically reviews the carrying amount of non-current assets with definite useful lives when events and circumstances indicate that an asset may be impaired. Impairment tests are performed by comparing the carrying amount and the recoverable amount of the cash-generating unit (“CGU”). The recoverable amount is the higher of the CGU’s fair value less costs of disposal and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU. |
Leases | Leases With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the principal liability and finance costs. Finance costs are charged to the income statement over the lease period using the effective interest rate method. The right-of-use asset is depreciated on a straight-line basis over the lease term. Right-of-use assets are measured at cost comprising the following: (i) the amount of the initial measurement of lease liability; (ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs and, if applicable, (iv) restoration costs. Payments associated with short-term leases and leases of low-value assets are recognized as an expense in the income statement on a straight-line basis. Lease liabilities are measured at the net present value of the following: (i) fixed lease payments, (ii) variable lease payments that are based on an index or a rate and, if applicable, (iii) amounts expected to be payable by the lessee under residual value guarantees, and (iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. Lease liabilities do not include any non-lease components that may be included in the related contracts. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Some lease contracts contain variable payment terms that are linked to sales generated from Ferrari stores. Variable lease payments that depend on sales are recognized in the income statement in the period in which the condition that triggers those payments occurs. Extension and termination options are included in a number of leases related to Ferrari stores, warehouses and machinery and equipment of the Group. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). |
Borrowing costs | Borrowing costs General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are expensed in net financial expenses if related to the Group’s industrial activities or cost of sales if related to the Group’s financial services activities in the consolidated income statement, as incurred. |
Impairment of assets | Impairment of assets The Group continuously monitors its operations to assess whether there is any indication that its intangible assets (including development costs) and its property, plant and equipment may be impaired. Goodwill is tested for impairment annually or more frequently, if there is an indication that an asset may be impaired. If indications of impairment are present, the carrying amount of the asset is reduced to its recoverable amount, which is the higher of fair value less costs of disposal and its value in use. The recoverable amount is determined for the individual asset, unless the asset does not generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets, in which case the asset is tested as part of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In assessing the value in use of an asset or CGU, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the recoverable amount is lower than the carrying amount. Where an impairment loss for assets other than goodwill, subsequently no longer exists or has decreased, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not in excess of the |
Financial instruments | Financial instruments Presentation Current financial assets include trade receivables, receivables from financing activities, derivative financial instruments, other current financial assets and cash and cash equivalents. Investments and other financial assets include investments accounted for using the equity method as well as other securities and non-current financial assets. Financial liabilities include debt (which primarily includes bonds, notes, asset-backed financing (securitizations) and borrowings from banks), trade payables and other financial liabilities, which mainly include derivative financial instruments. Measurement Financial assets, other than investments accounted for using the equity method, and financial liabilities are measured in accordance with IFRS 9 - Financial Instruments . Except for investments accounted for using the equity method, the Group initially measures financial assets at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Equity instruments held by the Group are recognized at fair value through profit or loss. When market prices are not directly available, the fair value is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). As permitted by IFRS 9, equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value. Trade receivables and receivables from financing activities are originated in the ordinary course of business and held within a business model with the objective to hold the receivables in order to collect contractual cash flows that meet the ‘solely payments of principal and interest’ criterion under IFRS 9, therefore they are measured at amortized cost using the effective interest rate method. Receivables with maturities greater than one year are discounted to present value. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of financial assets may be impaired and, if any such evidence exists, an impairment loss is recognized within financial expenses. Under IFRS 9, a forward-looking expected credit loss model must be applied when assessing impairment. In making impairment assessments, the Group applies the standard simplified approach to estimate the lifetime expected credit losses and considers its historical credit loss experience, adjusted for forward-looking factors specific to the nature of the Group’s receivables and economic environment, which may be different for the Group’s trade receivables compared to receivables from financing activities. If any such evidence exists, an impairment loss is recognized within financial expenses. The Group considers a default to occur and a significant increase in credit risk to occur when the counterparty fails to make contractual payments within a certain number of days of when they fall due. For example, for receivables from financing activities this typically occurs when the counterparty fails to make contractual payments within 60 days of when the related receivables fall due, while for trade receivables this is assessed on a case by case basis. Financial assets and trade receivable are written off when the counterparty fails to make contractual payments and there is no reasonable expectation of recovery, and in any circumstance no later than 360 days. When trade receivables or receivables from financing activities have been written off, the Company may continue to engage in enforcement actions to attempt to recover the receivables. Financial liabilities, with the exception of derivative financial instruments, are measured at amortized cost using the effective interest rate method. Derivative financial instruments Derivative financial instruments are used for economic hedging purposes only in order to reduce financial risks and in particular, foreign currency risks. Derivative financial instruments qualify for hedge accounting only when at the inception of the hedge there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. All derivative financial instruments are measured at fair value. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: Cash flow hedges — Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the consolidated income statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other comprehensive income/(loss). The cumulative gain or loss is reclassified from other comprehensive income/(loss) to the consolidated income statement at the same time as the economic effect arising from the hedged item affects the consolidated income statement. The gain or loss associated with a hedge or part of a hedge that has become ineffective is recognized in the consolidated income statement immediately within net financial income/expenses. When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in other comprehensive income/(loss) and is recognized in the consolidated income statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in other comprehensive income/(loss) is recognized in the consolidated income statement immediately. The Group does not use fair value hedges or hedges of a net investment. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately within financial expenses. Transfers of financial assets The Group sells certain of its receivables from financing activities under securitization programs. Securitization transactions involve the sale of a financial receivables portfolio to a special purpose vehicle, which in turn finances the purchase of such financial receivables by issuing asset-backed securities in the form of notes whose repayment of principal and interest depends on the cash flows generated by the related financial receivables. The receivables sold as part of securitization programs are consolidated until collection from the customer as they do not meet the requirements for derecognition in accordance with IFRS 9. The Group may also sell certain of its trade receivables through factoring transactions without recourse. The Group derecognizes the financial assets when, and only when, the contractual rights and risks to the cash flows arising from the related financial assets are no longer held or the Group has transferred the financial assets. In the case of a transfer of financial assets, if the Group transfers substantially all the risks and rewards of ownership of the financial assets, it derecognizes such assets and separately recognizes as assets or liabilities any rights and obligations created or retained in the transfer. On derecognition of financial assets, the difference between the carrying amount of the assets and the consideration received or receivable for the transfer of the assets is recognized within cost of sales in the consolidated income statement. Trade receivables Trade receivables are amounts due from clients for goods sold or services provided in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any provision for allowances. |
Derivative financial instruments | Derivative financial instruments Derivative financial instruments are used for economic hedging purposes only in order to reduce financial risks and in particular, foreign currency risks. Derivative financial instruments qualify for hedge accounting only when at the inception of the hedge there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. All derivative financial instruments are measured at fair value. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: Cash flow hedges — Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the consolidated income statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other comprehensive income/(loss). The cumulative gain or loss is reclassified from other comprehensive income/(loss) to the consolidated income statement at the same time as the economic effect arising from the hedged item affects the consolidated income statement. The gain or loss associated with a hedge or part of a hedge that has become ineffective is recognized in the consolidated income statement immediately within net financial income/expenses. When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in other comprehensive income/(loss) and is recognized in the consolidated income statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in other comprehensive income/(loss) is recognized in the consolidated income statement immediately. The Group does not use fair value hedges or hedges of a net investment. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately within financial expenses. |
Transfers of financial assets | Transfers of financial assets The Group sells certain of its receivables from financing activities under securitization programs. Securitization transactions involve the sale of a financial receivables portfolio to a special purpose vehicle, which in turn finances the purchase of such financial receivables by issuing asset-backed securities in the form of notes whose repayment of principal and interest depends on the cash flows generated by the related financial receivables. The receivables sold as part of securitization programs are consolidated until collection from the customer as they do not meet the requirements for derecognition in accordance with IFRS 9. The Group may also sell certain of its trade receivables through factoring transactions without recourse. The Group derecognizes the financial assets when, and only when, the contractual rights and risks to the cash flows arising from the related financial assets are no longer held or the Group has transferred the financial assets. In the case of a transfer of financial assets, if the Group transfers substantially all the risks and rewards of ownership of the financial assets, it derecognizes such assets and separately recognizes as assets or liabilities any rights and obligations created or retained in the |
Trade receivables | Trade receivables Trade receivables are amounts due from clients for goods sold or services provided in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any provision for allowances. |
Inventories | InventoriesInventories of raw materials, semi-finished products and finished goods are stated at the lower of cost and net realizable value, cost being determined on a first-in first-out (FIFO) basis. The measurement of inventories includes the direct costs of materials, labor and indirect costs (variable and fixed). Purchase costs include ancillary costs. Prototypes are recognized at their estimated realizable value, if lower than production cost. Provision is made for obsolete and slow-moving raw materials, finished goods, spare parts and other supplies based on their expected future use and realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs for sale and distribution. |
Cash and cash equivalents | Cash and cash equivalentsCash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Employee benefits | Employee benefits Defined contribution plans Costs arising from defined contribution plans are expensed as incurred. Defined benefit plans The Group’s net obligations are determined separately for each plan by estimating the present value of future benefits that employees have earned in the current and prior periods, and deducting the fair value of any plan assets. The present value of the defined benefit obligation is measured using actuarial techniques and actuarial assumptions that are unbiased and mutually compatible and attributes benefits to periods in which the obligation to provide post-employment benefits arise by using the Projected Unit Credit Method. The components of the defined benefit cost are recognized as follows: • the service costs are recognized in the consolidated income statement by function and presented in the relevant line items (cost of sales, selling, general and administrative costs, research and development costs, etc.); • the net interest on the defined benefit liability is recognized in the consolidated income statement as net financial income /(expenses), and is determined by multiplying the net liability/(asset) by the discount rate used to discount obligations taking into account the effect of contributions and benefit payments made during the year; and • the remeasurement components of the net obligations, which comprise actuarial gains and losses and any change in the effect of the asset ceiling are recognized immediately in other comprehensive income/(loss). These remeasurement components are not reclassified in the consolidated income statement in a subsequent period. Other long-term employee benefits The Group’s obligations represent the present value of future benefits that employees have earned in return for their service during the current and prior periods. Remeasurement components on other long-term employee benefits are recognized in the consolidated income statement in the period in which they arise. Share-based compensation The Group has implemented equity incentive plans that provide for the granting of share-based compensation to the Chairman, the Chief Executive Officer, all other members of the Ferrari Leadership Team and other key employees of the Group. The Group also provides share-based compensation as part of commercial agreements with certain suppliers. The share-based compensation arrangements are accounted for in accordance with IFRS 2 — Share-based Payment , which requires the Company to recognize share-based compensation expense based on fair value of awards granted. Compensation expense for the equity-settled awards containing market performance conditions is measured at the grant date fair value of the award using a Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of the Company’s common stock, the dividend yield, interest rates and a correlation coefficient between the common stock and the relevant market index. The fair value of the awards which are conditional only on a recipient’s continued service to the Company is measured using the share price at the grant date adjusted for the present value of future distributions which employees will not receive during the vesting period. Share-based compensation expense relating to the equity incentive plans is recognized over the service period within selling, general and administrative costs or cost of sales in the consolidated income statement depending on the function of the employee, with an offsetting increase to equity. Share-based compensation expense relating to commercial agreements with certain suppliers is recognized over the period in which the supplier’s services are received and classified within the consolidated income statement depending on the function of the supplier’s services, with an offsetting increase to equity. |
Share-based compensation | Share-based compensation The Group has implemented equity incentive plans that provide for the granting of share-based compensation to the Chairman, the Chief Executive Officer, all other members of the Ferrari Leadership Team and other key employees of the Group. The Group also provides share-based compensation as part of commercial agreements with certain suppliers. The share-based compensation arrangements are accounted for in accordance with IFRS 2 — Share-based Payment , which requires the Company to recognize share-based compensation expense based on fair value of awards granted. Compensation expense for the equity-settled awards containing market performance conditions is measured at the grant date fair value of the award using a Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of the Company’s common stock, the dividend yield, interest rates and a correlation coefficient between the common stock and the relevant market index. The fair value of the awards which are conditional only on a recipient’s continued service to the Company is measured using the share price at the grant date adjusted for the present value of future distributions which employees will not receive during the vesting period. Share-based compensation expense relating to the equity incentive plans is recognized over the service period within selling, general and administrative costs or cost of sales in the consolidated income statement depending on the function of the employee, with an offsetting increase to equity. Share-based compensation expense relating to commercial agreements with certain suppliers is recognized over the period in which the supplier’s services are received and classified within the consolidated income statement depending on the function of the supplier’s services, with an offsetting increase to equity. Share-based compensation The Group accounts for share-based compensation relating to its equity incentive plans and commercial agreements with certain suppliers in accordance with IFRS 2 — Share-based Payment, which requires the recognition of share-based compensation expense based on the fair value of the awards granted. Share-based compensation for equity-settled awards containing market performance conditions is measured at the grant date of the awards using a Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of our common stock, the dividend yield, interest rates and the correlation coefficient between our common stock and the relevant market index. The probability that the Group will achieve a certain level of Total Shareholder Return performance compared to the defined peer group (“Peer Group”) is also considered. As a result, at the grant date management is required to make key assumptions and estimates regarding conditions that will occur in the future, which inherently involves uncertainty. Therefore, the amount of share-based compensation recognized has been affected by the significant assumptions and estimates used. |
Provisions | Provisions Provisions are recognized when the Group has a present obligation, legal or constructive, as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Warranty and recall campaigns provision All cars are sold with warranty coverage. The warranty coverage generally applies to defects that may become apparent within a certain period from the purchase of the car. The warranty provision is recognized at the time of the sale of the car, based on the present value of management’s estimate of the expected cost to fulfill the obligations over the contractual warranty period. Estimates are principally based on the Group’s historical claims or costs experience and the cost of parts and services to be incurred in the activities. The costs related to these provisions are recognized within cost of sales at the time when they are probable and reasonably estimable. See “—Use of estimates” below for further details. |
Deferred income, advances and revenue recognition | Deferred income Deferred income relates to amounts received by the Group under various agreements, which are reliant on the future performance of a service or other act of the Group. Deferred income is recognized as net revenues when the Group has fulfilled its obligations under the terms of the various agreements. Range models (models belonging to the Ferrari product portfolio, excluding Special Series, Icona, limited edition supercars and one-off models) are sold with a scheduled maintenance program to ensure that the cars are maintained to the highest standards to meet the Group’s strict requirements for performance and safety. Amounts attributable to the maintenance program are not recognized as income immediately, but are deferred over the maintenance program term. The amount of the deferred income related to this program is based on the estimated fair value of the service to be provided. Advances Advances relate to amounts received from or billed to customers in advance of having delivered the related cars or provided the related services. Revenue recognition Revenue is recognized when control over a product or service is transferred to a customer. Revenue is measured at the transaction price which is based on the amount of consideration that the Group expects to receive in exchange for transferring the promised goods or services to the customer and excludes any sales incentives as well as taxes collected from customers that are remitted to government authorities. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. The Group enters into contracts that may include both products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Group generates revenue from the sale of cars, spare parts and engines as well as from sponsorship, commercial and brand activities. The Group accounts for a contract with a customer when there is a legally enforceable contract between the Group and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Payments from customers are typically due within 30 and 40 days of invoicing. The Group does not recognize any assets associated with the incremental costs of obtaining a contract with a customer that are expected to be recovered. The majority of revenue is recognized at a point-in-time or over a period of one year or less, and the Group applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise be recognized is one year or less. Cars, spare parts and engines The sales of cars, spare parts and engines have multiple performance obligations that include products, services, or a combination of products and services as contracts may include maintenance programs and extended warranties that are separately priced or not separately priced. Contracts may also include variable consideration for discounts such as sales incentives and performance based bonuses and product returns. The Group offers incentives to its third-party dealers, which are designed to promote the sale of cars and parts, as well as a variety of other performance indicators, which may be qualitative or quantitative, such as quality service, customer satisfaction and preservation of the Ferrari brand, among others. The cost of incentives is estimated at the inception of a contract at the expected amount that will ultimately be paid and is recognized as a reduction to revenue generally at the time of the sale or when the dealer is expected to achieve the required performance if in relation to other performance indicators different from sales. Revenues recognized are limited to the amount of consideration the Group expects to receive. The Group allocates the transaction price to the performance obligations based on the stand alone selling prices (SSP) for each obligation. When the SSP does not exist, the Group estimates the SSP based on the adjusted market approach. Revenues for the sale of cars, spare parts and engines are recognized at a point in time when control of the cars, spare parts or engines is transferred to the customer based on shipping terms, which generally corresponds to the date when the cars, spare parts and engines are released to the carrier responsible for transportation to dealers or Maserati. Revenues relating to the maintenance program are recognized over time based on the input method of measuring progress towards complete satisfaction of the related performance obligation, calculated as a proportion of overall revenues expected during the maintenance period equal to the ratio of costs incurred in the reporting period compared to the overall costs to be incurred during the maintenance period. Revenues relating to the extended warranties are recognized on a straight-line basis over the extended warranty period. Revenues from the supply of engines and related services to other Formula 1 racing teams are recognized over time on a time and materials basis when the services are provided. Management has exercised judgment in determining performance obligations, variable consideration, allocation of transaction price and the timing of revenue recognition. Sponsorship, commercial and brand activities Revenues from sponsorship agreements are generally recognized ratably over the contract term as the customer benefits from the service throughout the service period. For sponsorship agreements that contain variable consideration based on performance of the racing team, the related revenues are estimated and recognized over the relevant period to the extent that it is highly probable that a significant reversal in the amount of the cumulative revenue recognized will not occur, which is typically when it is considered highly probable that the related conditions associated with the variable consideration will be achieved. Revenues from commercial activities primarily relate to the revenues from participating in the Formula 1 World Championship. The revenues attributable to each racing team are governed by a specific agreement and depend upon, among other factors, the prior year ranking of each of the racing teams. Revenues of the commercial activities are recognized ratably over the contract term. Revenues from brand licensing agreements where the customer has a right to access the Group’s brands or the contract includes minimum guaranteed payments are recognized on a straight-line basis over the contract term. Licensing revenues in excess of the minimum guaranteed payments are recognized when the related conditions are satisfied. Revenues from sales-based licensing agreements are recognized when the sales occur. Management has exercised judgment in determining variable consideration. Other revenues Interest income generated by our financial service activities from the provision of client and dealer financing is reported within revenues using the effective interest rate method and not within net financial income/expenses. |
Cost of sales | Cost of sales Cost of sales comprises expenses incurred in the manufacturing and distribution of cars and parts, including the engines rented to other Formula 1 racing teams, of which, cost of materials, components and labor costs are the most significant portion. The remaining costs principally include depreciation, amortization, insurance and transportation costs. Cost of sales also includes warranty and product-related costs, which are estimated and recorded at the time of sale of the car. Expenses which are directly attributable to the financial services companies, including the interest expenses related to their financing as a whole and provisions for risks and write-downs of assets, are also reported in cost of sales. |
Other expenses and other income | Other expenses and other income Other expenses consist of miscellaneous costs which cannot be allocated to specific functional areas, such as indirect taxes, accruals for provisions not attributable to cost of sales or selling, general and administrative costs, and other miscellaneous expenses, including marketing expenses incurred on behalf of our third-party dealers. Other income consists of miscellaneous income that is not directly attributable to the sale of goods or services, such as gains on the disposal of property plant and equipment, the release of certain provisions originally recognized as other expenses, rental income and other miscellaneous income. |
Taxes and Current and Deferred Taxes | Taxes Income taxes include all taxes based upon the taxable profits of the Group. Current and deferred taxes are recognized as income or expense and are included in the consolidated income statement for the period, except tax arising from (i) a transaction or event which is recognized, in the same or a different period, either in other comprehensive income/(loss) or directly in equity, or (ii) a business combination. Deferred taxes are accounted using the full liability method. Deferred tax liabilities are recognized for all taxable temporary differences between the carrying amounts of assets or liabilities and their tax base, except to the extent that the deferred tax liabilities arise from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized, unless the deferred tax assets arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax assets and liabilities are measured at the substantively enacted tax rates in the respective jurisdictions in which the Group operates that are expected to apply to the period when the asset is realized or liability is settled. Any remeasurements to deferred tax assets and liabilities as a result of changes in substantially enacted tax rates are recognized in the income statement. The recoverability of deferred tax assets is dependent on the Group’s ability to generate sufficient future taxable income in the period in which it is assumed that the deductible temporary differences reverse and tax losses carried forward can be utilized. In making this assessment, the Group considers future taxable income arising on the most recent budgets and plans, prepared by using the same criteria described for testing the impairment of assets and goodwill, moreover, it estimates the impact of the reversal of taxable temporary differences on earnings and it also considers the period over which these assets could be recovered. The carrying amount of deferred tax assets is reduced to the extent that it is not probable that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date. The Group recognizes deferred tax liabilities associated with the existence of a subsidiary’s undistributed profits, except when it is able to control the timing of the reversal of the temporary difference and it is probable that this temporary difference will not reverse in the foreseeable future. The Group recognizes deferred tax assets associated with the deductible temporary differences on investments in subsidiaries only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets relating to the carry-forward of unused tax losses and tax credits, as well as those arising from deductible temporary differences, are recognized to the extent that it is probable that future profits will be available against which they can be utilized. Current income taxes and deferred taxes are offset when they relate to the same taxation authority and there is a legally enforceable right of offset. Italian Regional Income Tax (“IRAP”) is recognized within income tax expense. IRAP is calculated on a measure of income defined by the Italian Civil Code as the difference between operating revenues and costs, before financial income and expense, and in particular before the cost of fixed-term employees, credit losses and any interest included in lease payments. IRAP is applied on the tax base at 3.9 percent for the years ended December 31, 2022, 2021 and 2020. Tax uncertainties are accounted for in accordance with IFRIC 23. Current and deferred taxes The calculation of current and deferred income taxes, including various tax benefits, exemptions or credits (such as patent box tax benefits, asset revaluations and research and development credits), involves the interpretation of applicable tax laws and regulations that could be subject to changes or application directives from tax authorities. As a result, the calculation |
Dividends | Dividends Dividends payable by the Group are reported as a change in equity in the period in which they are approved by shareholders or the Board of Directors as applicable under local rules and regulations. |
Rounding of amounts | Rounding of amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand Euro unless otherwise stated. |
Segment reporting | Segment reporting The Group has determined that it has one operating and one reportable segment based on the information reviewed by the Board of Directors (the Group’s “Chief Operating Decision Maker” as defined in IFRS 8 — Operating Segments ) in making decisions regarding the allocation of resources and to assess performance. |
Use of estimates | Use of estimates The Consolidated Financial Statements are prepared in accordance with IFRS which require the use of estimates, judgments and assumptions that affect the carrying amount of assets and liabilities, the disclosure of contingent assets and liabilities and the amounts of income and expenses recognized. The estimates and associated assumptions are based on elements that are known when the financial statements are prepared, on historical experience and on any other factors that are considered to be relevant. Estimates and underlying assumptions are reviewed periodically and continuously by the Group. If the items subject to estimates do not perform as assumed, then the actual results could differ from the estimates, which would require adjustment accordingly. The effects of any changes in estimate are recognized in the consolidated income statement in the period in which the adjustment is made, or prospectively in future periods. The items requiring estimates for which there is a risk that a material difference may arise in respect of the carrying amounts of assets and liabilities in the future are discussed below. |
Maintenance programs and extended warranties | Maintenance programs and extended warranties The Group’s new cars are sold with a scheduled maintenance program to ensure that the cars are maintained to the highest standards to meet the Group’s strict requirements for performance and safety. Amounts attributable to the maintenance programs are not recognized as income immediately, but are recognized over the maintenance program term based on the input method of measuring progress towards complete satisfaction of the related performance obligation, calculated as a proportion of overall revenues expected during the maintenance period equal to the ratio of costs incurred in the reporting period compared to the overall costs to be incurred during the maintenance period. The amount of the deferred income related to this program is based on the estimated fair value of the service to be provided. The Group also offers various extended warranty programs to customers that provide additional coverage beyond the warranty period required by applicable law or included with all new car sales. Revenues relating to the extended warranties are recognized on a straight-line basis over the extended warranty period. Management has exercised judgment in determining performance obligations, variable consideration, allocation of the transaction price and the timing of revenue recognition in relation to its maintenance programs and extended warranties. |
Product warranty liabilities | Product warranty liabilities The Group establishes reserves for product warranties at the time the sale is recognized. The Group issues various types of product warranties under which the performance of products delivered is generally guaranteed for a certain period or term, which is generally defined by the legislation in the country where the car is sold. The reserve for product warranties includes the expected costs of warranty obligations imposed by law or contract, as well as the expected costs for policy coverage. The estimated future costs of these actions are principally based on assumptions regarding the lifetime warranty costs of each car line and each model year of that car line, as well as historical claims experience for the Group’s cars. In addition, the number and magnitude of additional service actions expected to be approved, and policies related to additional service actions, are taken into consideration. Due to the uncertainty and potential volatility of these estimated factors, changes in the assumptions used could materially affect the results of operations. The Group periodically initiates voluntary service actions to address various client satisfaction, safety and emissions issues related to cars sold. Included in the reserve is the estimated cost of these services and recall actions. The estimated future costs of these actions are based primarily on historical claims experience for the Group’s cars and the cost of parts and services to be incurred in the specified activities, and are recognized at the time when they are probable and reasonably estimable. Estimates of the future costs of these actions are inevitably imprecise due to several uncertainties, including the number of cars affected by a service or recall action. It is reasonably possible that the ultimate cost of these service and recall actions may require the Group to make expenditures in excess of (or less than) established reserves over an extended period of time. The estimate of warranty and additional service obligations is periodically reviewed during the year. In addition, the Group makes provisions for estimated product liability costs arising from property damage and personal injuries including wrongful death, and potential exemplary or punitive damages alleged to be the result of product defects. By nature, these costs can be infrequent, difficult to predict, and have the potential to vary significantly in amount. |
Other contingent liabilities | Litigation and contingent liabilities Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including car safety, emissions and fuel economy, early warning reporting, dealer, supplier and other contractual relationships, intellectual property rights and product warranty matters. Some of these proceedings allege defects in specific component parts or systems (including airbags, seatbelts, brakes, transmissions, engines and fuel systems) in various car models or allege general design defects relating to car handling and stability, sudden unintended movement or crashworthiness. These proceedings seek recovery for damage to property, personal injuries or wrongful death and in some cases could include a claim for exemplary or punitive damages. Adverse decisions in one or more of these proceedings could require the Group to pay substantial damages, or undertake service actions, recall campaigns or other costly actions. Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. An accrual is established in connection with pending or threatened litigation if a loss is probable and a reliable estimate can be made. Since these accruals represent estimates, it is reasonably possible that the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued. It is also reasonably possible that the resolution of some of the matters for which accruals could not be made may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated. The term “reasonably possible” is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Group makes provisions in connection with pending or threatened disputes or legal proceedings when it is considered probable that there will be an outflow of funds and when the amount can be reasonably estimated. If an outflow of funds becomes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial Statements. The Group is the subject of legal and tax proceedings covering a wide range of matters in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the outflow of funds that could result from such disputes with any certainty. Moreover, the cases and claims against the Group often derive from complex legal issues which are subject to a differing degree of uncertainty, including the facts and circumstances of each particular case and the manner in which applicable law is likely to be interpreted and applied to such fact and circumstances, and the jurisdiction and the different laws involved. The Group monitors the status of pending legal proceedings and consults with experts on legal and tax matters on a regular basis. It is therefore possible that the provisions for the Group’s legal proceedings and litigation may vary as the result of future developments in pending matters. Although the final resolution of any such matters could have a material effect on the Group’s operating results for the particular reporting period in which an adjustment of the estimated reserve is recorded, it is believed that any resulting adjustment would not materially affect the consolidated financial position of the Group. |
Litigation and contingent liabilities | Litigation and contingent liabilities Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including car safety, emissions and fuel economy, early warning reporting, dealer, supplier and other contractual relationships, intellectual property rights and product warranty matters. Some of these proceedings allege defects in specific component parts or systems (including airbags, seatbelts, brakes, transmissions, engines and fuel systems) in various car models or allege general design defects relating to car handling and stability, sudden unintended movement or crashworthiness. These proceedings seek recovery for damage to property, personal injuries or wrongful death and in some cases could include a claim for exemplary or punitive damages. Adverse decisions in one or more of these proceedings could require the Group to pay substantial damages, or undertake service actions, recall campaigns or other costly actions. Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. An accrual is established in connection with pending or threatened litigation if a loss is probable and a reliable estimate can be made. Since these accruals represent estimates, it is reasonably possible that the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued. It is also reasonably possible that the resolution of some of the matters for which accruals could not be made may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated. The term “reasonably possible” is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. The Group makes provisions in connection with pending or threatened disputes or legal proceedings when it is considered probable that there will be an outflow of funds and when the amount can be reasonably estimated. If an outflow of funds becomes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial Statements. The Group is the subject of legal and tax proceedings covering a wide range of matters in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the outflow of funds that could result from such disputes with any certainty. Moreover, the cases and claims against the Group often derive from complex legal issues which are subject to a differing degree of uncertainty, including the facts and circumstances of each particular case and the manner in which applicable law is likely to be interpreted and applied to such fact and circumstances, and the jurisdiction and the different laws involved. The Group monitors the status of pending legal proceedings and consults with experts on legal and tax matters on a regular basis. It is therefore possible that the provisions for the Group’s legal proceedings and litigation may vary as the result of future developments in pending matters. Although the final resolution of any such matters could have a material effect on the Group’s operating results for the particular reporting period in which an adjustment of the estimated reserve is recorded, it is believed that any resulting adjustment would not materially affect the consolidated financial position of the Group. |
Cash flow hedges | The policy of the Group for managing foreign currency risk normally requires hedging of a portion of projected future cash flows from trading activities and orders acquired (or contracts in progress) in foreign currencies that will occur within the following 12 months. Derivatives relating to foreign currency risk management are treated as cash flow hedges where the derivative qualifies for hedge accounting. The amounts recorded in the cash flow hedge reserve within other comprehensive income will be recognized in the consolidated income statement according to the timing of the flows of the underlying transactions. Management believes that substantially all of the hedging effects arising from these derivative contracts and recorded in the cash flow hedge reserve will be recognized in the consolidated income statement within the following 12 months from the reporting date. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Disclosure of foreign currency exchange rates used to translate other currencies into Euro | The principal foreign currency exchange rates used to translate other currencies into Euro were as follows: 2022 2021 2020 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.0530 1.0666 1.1827 1.1326 1.1422 1.2271 Pound Sterling 0.8528 0.8869 0.8596 0.8403 0.8897 0.8990 Swiss Franc 1.0047 0.9847 1.0811 1.0331 1.0705 1.0802 Japanese Yen 138.0274 140.6600 129.8767 130.3800 121.8458 126.4900 Chinese Yuan 7.0788 7.3582 7.6282 7.1947 7.8747 8.0225 Australian Dollar 1.5167 1.5693 1.5749 1.5615 1.6549 1.5896 Canadian Dollar 1.3695 1.4440 1.4826 1.4393 1.5300 1.5633 Singapore Dollar 1.4512 1.4300 1.5891 1.5279 1.5742 1.6218 Hong Kong Dollar 8.2451 8.3163 9.1932 8.8333 8.8587 9.5142 |
Disclosure of straight line depreciation rates | Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% |
SCOPE OF CONSOLIDATION (Tables)
SCOPE OF CONSOLIDATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Scope of Consolidation [Abstract] | |
Disclosure of scope of consolidation | The Group’s scope of consolidation at December 31, 2022 and 2021 was as follows: At December 31, 2022 At December 31, 2021 Name Country Nature of business Shares held by the Group Shares held by NCI Shares held by the Group Shares held by NCI Directly held interests Ferrari S.p.A. Italy Engineering, manufacturing and sales 100 % — % 100 % — % New Business 33 S.p.A. (1) Italy Engineering, manufacturing and sales 100 % — % 100 % — % Indirectly held through Ferrari S.p.A. Ferrari North America Inc. USA Importer and distributor 100 % — % 100 % — % Ferrari Japan KK Japan Importer and distributor 100 % — % 100 % — % Ferrari Australasia Pty Limited Australia Importer and distributor 100 % — % 100 % — % Ferrari International Cars Trading (Shanghai) Co. L.t.d. China Importer and distributor 80 % 20 % 80 % 20 % Ferrari (HK) Limited Hong Kong Importer and distributor 100 % — % 100 % — % Ferrari Far East Pte Limited Singapore Service company 100 % — % 100 % — % Ferrari Management Consulting (Shanghai) Co. L.t.d. China Service company 100 % — % 100 % — % Ferrari South West Europe S.a.r.l. France Service company 100 % — % 100 % — % Ferrari Central Europe GmbH Germany Service company 100 % — % 100 % — % G.S.A. S.A. in liquidation Switzerland Service company 100 % — % 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services, Inc. USA Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Auto Securitization Transaction LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (2) USA Financial services 100 % — % 100 % — % 410 Park Display, Inc. (3) USA Retail 100 % — % 100 % — % _____________________________ (1) New Business 33 S.p.A. was consolidated by the Group starting in 2022, which is when it started operational activities. (2) Shareholding held by Ferrari Financial Services Inc. (3) Shareholding held by Ferrari North America Inc. At December 31, 2022 2021 (€ thousand) Equity attributable to non-controlling interests 9,630 5,518 For the years ended December 31, 2022 2021 2020 (€ thousand) Net profit attributable to non-controlling interests 6,680 2,369 1,063 |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Disclosure of net revenues | Net revenues are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Cars and spare parts 4,341,482 3,573,119 2,835,170 Sponsorship, commercial and brand 478,499 430,579 390,002 Engines 155,342 189,432 150,655 Other 119,931 77,764 83,963 Total net revenues 5,095,254 4,270,894 3,459,790 |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Disclosure of research and development costs | Research and development costs are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Research and development costs expensed during the year 517,842 573,632 526,831 Amortization of capitalized development costs 257,730 194,472 180,554 Total research and development costs 775,572 768,104 707,385 |
OTHER EXPENSES_(INCOME), NET (T
OTHER EXPENSES/(INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of other expenses, net | Other expenses, net are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Other expenses 33,994 13,666 25,067 Other income (12,446) (8,105) (6,592) Other expenses, net 21,548 5,561 18,475 |
NET FINANCIAL EXPENSES (Tables)
NET FINANCIAL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net financial (expenses)/income [Abstract] | |
Disclosure of financial income and expenses | The following table sets out details of financial income and expenses, including the amounts reported in the consolidated income statement within the net financial expenses line item, as well as interest income from financial services activities, recognized under net revenues, and interest expenses and other financial charges from financial services activities, recognized under cost of sales. For the years ended December 31, 2022 2021 2020 Financial income: (€ thousand) Interest income from bank deposits 2,414 399 610 Other interest income and financial income 2,166 4,741 517 Interest income and other financial income 4,580 5,140 1,127 Finance income from financial services activities 69,389 55,043 65,878 Total financial income 73,969 60,183 67,005 Total financial income relating to: Industrial activities (A) 4,580 5,140 1,127 Financial services activities (reported in net revenues) 69,389 55,043 65,878 Financial expenses: Capitalized borrowing costs 1,914 1,874 2,591 Other interest and financial expenses (2,778) (3,315) (3,258) Interest expenses and other financial expenses (864) (1,441) (667) Interest expenses from banks and other financial institutions (25,503) (11,310) (14,330) Interest and other finance costs on bonds and notes (23,679) (22,947) (20,116) Write-downs of financial receivables (594) (1,467) (9,502) Other financial expenses (2,008) (5,991) (14,580) Total financial expenses (52,648) (43,156) (59,195) Net expenses from derivative financial instruments and foreign currency exchange rate differences (28,693) (11,880) (27,652) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (81,341) (55,036) (86,847) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial activities (B) (54,196) (38,397) (50,219) Financial services activities (reported in cost of sales) (27,145) (16,639) (36,628) Net financial expenses relating to industrial activities (A+B) (49,616) (33,257) (49,092) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Disclosure of income taxes | Income tax expense is as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Current tax expense 269,924 218,540 120,115 Deferred tax benefit (30,178) (12,001) (62,474) Taxes relating to prior years (1,274) 2,556 514 Total income tax expense 238,472 209,095 58,155 |
Income tax reconciliation | The table below provides a reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the applicable corporate tax rate in effect in Italy, which was 24.0 percent for each of the years ended December 31, 2022, 2021 and 2020. For the years ended December 31, 2022 2021 2020 (€ thousand) Theoretical income tax expense 282,664 250,136 160,088 Tax effect on: Permanent and other differences (85,736) (79,267) (129,016) Italian Regional Income Tax (IRAP) 39,446 32,422 22,662 Effect of changes in tax rates and tax regulations 553 633 800 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 1,945 2,077 1,734 Taxes relating to prior years (1,274) 2,556 514 Withholding tax on earnings 875 539 1,373 Income tax expense 238,472 209,095 58,155 Effective tax rate 20.2 % 20.1 % 8.7 % |
Disclosure of deferred tax liabilities | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021, is as follows: At December 31, 2022 2021 (€ thousand) Deferred tax assets: To be recovered after 12 months 107,252 94,808 To be recovered within 12 months 96,130 73,949 203,382 168,757 Deferred tax liabilities: To be realized after 12 months (86,160) (78,496) To be realized within 12 months (40,347) (17,477) (126,507) (95,973) Net deferred tax assets/(liabilities) 76,875 72,784 |
Disclosure of deferred tax assets | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021, is as follows: At December 31, 2022 2021 (€ thousand) Deferred tax assets: To be recovered after 12 months 107,252 94,808 To be recovered within 12 months 96,130 73,949 203,382 168,757 Deferred tax liabilities: To be realized after 12 months (86,160) (78,496) To be realized within 12 months (40,347) (17,477) (126,507) (95,973) Net deferred tax assets/(liabilities) 76,875 72,784 |
Disclosure of deferred income tax liabilities | The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2021 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2022 (€ thousand) Deferred tax assets arising on: Provisions 103,981 16,556 — (258) 120,279 Deferred income 51,635 — — — 51,635 Employee benefits 3,041 — (376) — 2,665 Foreign currency exchange rate differences 610 2,830 — (1) 3,439 Cash flow hedge reserve 8,455 — (8,455) — — Inventory obsolescence 69,107 31,648 — 80 100,835 Allowances for doubtful accounts 5,178 50 — (5) 5,223 Depreciation 17,555 (15) — (7) 17,533 Trademark step-up 84,537 837 — — 85,374 Patent box 65,693 12,688 — — 78,381 Other 14,328 575 — (59) 14,844 Total deferred tax assets 424,120 65,169 (8,831) (250) 480,208 Deferred tax liabilities arising on: Depreciation (6,781) 2,076 — (352) (5,057) Capitalization of development costs (311,438) (44,134) — (2) (355,574) Employee benefits (1,053) (457) — — (1,510) Foreign currency exchange rate differences (526) (634) — — (1,160) Cash flow hedge reserve — — (16,171) — (16,171) Tax on undistributed earnings (17,404) 6,826 — — (10,578) Other (14,134) 1,332 — (481) (13,283) Total deferred tax liabilities (351,336) (34,991) (16,171) (835) (403,333) Total net deferred tax assets/(liabilities) 72,784 30,178 (25,002) (1,085) 76,875 At December 31, 2020 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2021 (€ thousand) Deferred tax assets arising on: Provisions 90,663 12,712 — 606 103,981 Deferred income 52,241 (606) — — 51,635 Employee benefits 2,931 — 110 — 3,041 Foreign currency exchange rate differences 516 95 — (1) 610 Cash flow hedge reserve — — 8,455 — 8,455 Inventory obsolescence 61,726 7,131 — 250 69,107 Allowances for doubtful accounts 5,643 (474) — 9 5,178 Depreciation 17,551 7 — (3) 17,555 Trademark step-up 83,700 837 — — 84,537 Patent box 27,902 37,791 — — 65,693 Other 6,027 3,927 — 4,374 14,328 Total deferred tax assets 348,900 61,420 8,565 5,235 424,120 Deferred tax liabilities arising on: Depreciation (7,550) 1,217 — (448) (6,781) Capitalization of development costs (264,087) (47,349) — (2) (311,438) Employee benefits (844) (209) — — (1,053) Foreign currency exchange rate differences (559) 33 — — (526) Cash flow hedge reserve (9,505) — 9,505 — — Tax on undistributed earnings (15,861) (1,543) — — (17,404) Other (11,747) (1,568) — (819) (14,134) Total deferred tax liabilities (310,153) (49,419) 9,505 (1,269) (351,336) Total net deferred tax assets/(liabilities) 38,747 12,001 18,070 3,966 72,784 |
Disclosure of deferred income tax assets | The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2021 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2022 (€ thousand) Deferred tax assets arising on: Provisions 103,981 16,556 — (258) 120,279 Deferred income 51,635 — — — 51,635 Employee benefits 3,041 — (376) — 2,665 Foreign currency exchange rate differences 610 2,830 — (1) 3,439 Cash flow hedge reserve 8,455 — (8,455) — — Inventory obsolescence 69,107 31,648 — 80 100,835 Allowances for doubtful accounts 5,178 50 — (5) 5,223 Depreciation 17,555 (15) — (7) 17,533 Trademark step-up 84,537 837 — — 85,374 Patent box 65,693 12,688 — — 78,381 Other 14,328 575 — (59) 14,844 Total deferred tax assets 424,120 65,169 (8,831) (250) 480,208 Deferred tax liabilities arising on: Depreciation (6,781) 2,076 — (352) (5,057) Capitalization of development costs (311,438) (44,134) — (2) (355,574) Employee benefits (1,053) (457) — — (1,510) Foreign currency exchange rate differences (526) (634) — — (1,160) Cash flow hedge reserve — — (16,171) — (16,171) Tax on undistributed earnings (17,404) 6,826 — — (10,578) Other (14,134) 1,332 — (481) (13,283) Total deferred tax liabilities (351,336) (34,991) (16,171) (835) (403,333) Total net deferred tax assets/(liabilities) 72,784 30,178 (25,002) (1,085) 76,875 At December 31, 2020 Recognized in consolidated income statement Charged to equity Translation differences and other changes At December 31, 2021 (€ thousand) Deferred tax assets arising on: Provisions 90,663 12,712 — 606 103,981 Deferred income 52,241 (606) — — 51,635 Employee benefits 2,931 — 110 — 3,041 Foreign currency exchange rate differences 516 95 — (1) 610 Cash flow hedge reserve — — 8,455 — 8,455 Inventory obsolescence 61,726 7,131 — 250 69,107 Allowances for doubtful accounts 5,643 (474) — 9 5,178 Depreciation 17,551 7 — (3) 17,555 Trademark step-up 83,700 837 — — 84,537 Patent box 27,902 37,791 — — 65,693 Other 6,027 3,927 — 4,374 14,328 Total deferred tax assets 348,900 61,420 8,565 5,235 424,120 Deferred tax liabilities arising on: Depreciation (7,550) 1,217 — (448) (6,781) Capitalization of development costs (264,087) (47,349) — (2) (311,438) Employee benefits (844) (209) — — (1,053) Foreign currency exchange rate differences (559) 33 — — (526) Cash flow hedge reserve (9,505) — 9,505 — — Tax on undistributed earnings (15,861) (1,543) — — (17,404) Other (11,747) (1,568) — (819) (14,134) Total deferred tax liabilities (310,153) (49,419) 9,505 (1,269) (351,336) Total net deferred tax assets/(liabilities) 38,747 12,001 18,070 3,966 72,784 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings per share | The following table provides the amounts used in the calculation of basic earnings per share for the years ended December 31, 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Profit attributable to owners of the Company € thousand 932,614 830,767 607,817 Weighted average number of common shares for basic earnings per common share thousand 182,836 184,446 184,806 Basic earnings per common share € 5.11 4.50 3.29 The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Profit attributable to owners of the Company € thousand 932,614 830,767 607,817 Weighted average number of common shares for diluted earnings per common share thousand 183,072 184,722 185,379 Diluted earnings per common share € 5.09 4.50 3.28 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets | Externally Development Patents, Other Total (€ thousand) Gross carrying amount at 1,803,993 760,333 237,597 50,276 2,852,199 Additions 261,457 101,682 17,151 4,537 384,827 Reclassifications — — 3,200 (3,200) — Translation differences and other movements — — (59) 7 (52) Balance at December 31, 2021 2,065,450 862,015 257,889 51,620 3,236,974 Additions 270,329 146,039 30,566 9,960 456,894 Divestitures (962) (350) — — (1,312) Reclassifications — — 2,924 (2,924) — Translation differences and other movements — — — 9 9 Balance at December 31, 2022 2,334,817 1,007,704 291,379 58,665 3,692,565 Accumulated amortization at January 1, 2021 1,173,914 451,938 202,347 44,710 1,872,909 Amortization 146,664 47,808 29,495 1,925 225,892 Balance at December 31, 2021 1,320,578 499,746 231,842 46,635 2,098,801 Amortization 189,546 68,184 27,153 1,493 286,376 Balance at December 31, 2022 1,510,124 567,930 258,995 48,128 2,385,177 Carrying amount at: January 1, 2021 630,079 308,395 35,250 5,566 979,290 December 31, 2021 744,872 362,269 26,047 4,985 1,138,173 December 31, 2022 824,693 439,774 32,384 10,537 1,307,388 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Land Industrial Plant, machinery and equipment Other Advances and assets under construction Total (€ thousand) Gross carrying amount at 29,391 430,455 2,544,837 213,544 329,743 3,547,970 Additions 16,936 17,852 122,893 20,930 186,846 365,457 Divestitures (13) (3,412) (46,067) (5,586) (135) (55,213) Reclassifications 3,722 40,046 144,684 2,573 (197,599) (6,574) Translation differences and other movements 20 1,736 376 1,633 45 3,810 Balance at December 31, 2021 50,056 486,677 2,766,723 233,094 318,900 3,855,450 Additions 8,287 10,155 154,008 26,479 167,645 366,574 Divestitures — (3,805) (15,388) (6,018) (154) (25,365) Reclassifications 73,631 4,691 165,210 4,322 (247,854) — Translation differences and other movements 16 334 (19) 796 77 1,204 Balance at December 31, 2022 131,990 498,052 3,070,534 258,673 238,614 4,197,863 Accumulated amortization at January 1, 2021 — 184,170 1,995,479 141,691 — 2,321,340 Depreciation — 17,875 191,247 20,975 — 230,097 Divestitures — (608) (43,991) (4,892) — (49,491) Reclassification — (284) (1,123) 284 — (1,123) Translation differences and other movements — 692 12 758 — 1,462 Balance at December 31, 2021 — 201,845 2,141,624 158,816 — 2,502,285 Depreciation — 19,405 216,661 23,783 — 259,849 Divestitures — (1,983) (14,921) (5,921) — (22,825) Translation differences and other movements — 109 (39) 659 — 729 Balance at December 31, 2022 — 219,376 2,343,325 177,337 — 2,740,038 Carrying amount at: January 1, 2021 29,391 246,285 549,358 71,853 329,743 1,226,630 of which right-of use assets under IFRS 16 — 25,574 5,041 29,127 — 59,742 December 31, 2021 50,056 284,832 625,099 74,278 318,900 1,353,165 of which right-of use assets under IFRS 16 — 21,613 3,484 28,661 — 53,758 December 31, 2022 131,990 278,676 727,209 81,336 238,614 1,457,825 of which right-of use assets under IFRS 16 — 18,972 2,756 32,420 — 54,148 |
Disclosure of quantitative information about right-of-use assets | The following table summarizes the changes in the carrying amount of right-of-use assets for the year ended December 31, 2022 and 2021: Industrial buildings Plant, machinery and equipment Other assets Total (€ thousand) Balance at January 1, 2021 25,574 5,041 29,127 59,742 Additions 3,987 1,409 7,745 13,141 Disposals (2,780) — (473) (3,253) Depreciation (5,753) (1,348) (8,247) (15,348) Translation differences and other movements 585 (1,618) 509 (524) Balance at January 1, 2022 21,613 3,484 28,661 53,758 Additions 4,854 510 13,485 18,849 Disposals (1,495) (6) (93) (1,594) Depreciation (5,933) (1,223) (9,677) (16,833) Translation differences and other movements (67) (9) 44 (32) Balance at December 31, 2022 18,972 2,756 32,420 54,148 |
Disclosure of amounts recognized in Income Statement in relation to leases | Amounts recognized in the income statement in relation to leases for the year ended December 31, 2022 and 2021 were as follows: For the year ended December 31, 2022 2021 (€ thousand) Depreciation of right-of-use assets 16,833 15,348 Interest expense on lease liabilities 1,219 868 Variable lease payments not included in the measurement of lease liabilities 822 1,622 Expenses relating to short-term leases and leases of low-value assets 3,227 3,671 Total expenses recognized 22,101 21,509 |
INVESTMENTS AND OTHER FINANCI_2
INVESTMENTS AND OTHER FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments and other financial assets [Abstract] | |
Disclosure of investments | The composition of investments and other financial assets is as follows: At December 31, 2022 2021 (€ thousand) Investments accounted for using the equity method 49,087 42,927 Other securities and financial assets 10,447 11,582 Total investments and other financial assets 59,534 54,509 Changes in the carrying amount of investments accounted for using the equity method during the period were as follows: (€ thousand) Balance at January 1, 2021 34,663 Additions 1,285 Proportionate share of net profit for the year ended December 31, 2021 6,896 Proportionate share of remeasurement of defined benefit plans 83 Balance at December 31, 2021 42,927 Proportionate share of net profit for the year ended December 31, 2022 6,175 Proportionate share of remeasurement of defined benefit plans (15) Balance at December 31, 2022 49,087 Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2022 and 2021 is presented below: At December 31, 2022 2021 (€ thousand) Assets Non-current assets 3,685 4,037 Receivables from financing activities 1,037,350 908,362 Other current assets 2,637 5,096 Cash and cash equivalents 19,123 14,046 Total assets 1,062,795 931,541 Equity and liabilities Equity 94,914 81,156 Debt 868,652 763,563 Other liabilities 99,229 86,822 Total equity and liabilities 1,062,795 931,541 For the year ended December 31, 2022 2021 2020 (€ thousand) Net revenues 52,100 46,103 37,764 Cost of sales 22,943 16,971 14,864 Selling, general and administrative costs 8,923 8,565 8,494 Other expenses/(income), net 1,116 2,730 1,213 Profit before taxes 19,118 17,837 13,193 Income tax expense 5,336 4,045 3,898 Net profit 13,782 13,792 9,295 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Disclosure of inventories | At December 31, 2022 2021 (€ thousand) Raw materials 142,430 99,382 Semi-finished goods 145,459 121,201 Finished goods 386,773 319,992 Total inventories 674,662 540,575 |
Disclosure of slow moving and obsolete inventory | Changes in the provision for slow moving and obsolete inventories were as follows: 2022 2021 (€ thousand) At January 1, 102,098 96,707 Provision 18,021 9,392 Use and other changes (9,156) (4,001) At December 31, 110,963 102,098 |
CURRENT RECEIVABLES AND OTHER_2
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of current receivables, other current assets and deposits in FCA Group cash management pools | At December 31, 2022 2021 (€ thousand) Trade receivables 232,414 185,000 Receivables from financing activities 1,399,997 1,143,968 Current tax receivables 16,054 14,306 Other current assets 153,183 122,224 Total 1,801,648 1,465,498 |
Disclosure of trade receivables by nature | The following table sets forth a breakdown of trade receivables by nature: At December 31, 2022 2021 (€ thousand) Trade receivables due from: Dealers 85,696 58,446 Sponsorship and commercial activities 42,981 29,666 Brand activities 24,213 23,902 Stellantis Group companies 19,184 23,737 Other 60,340 49,249 Total 232,414 185,000 |
Disclosure of trade receivables by currency | The following table sets forth a breakdown of trade receivables by currency: At December 31, 2022 2021 (€ thousand) Trade receivables denominated in: Euro 95,894 78,286 U.S. Dollar 108,369 84,590 Pound Sterling 8,178 3,908 Chinese Yuan 3,203 2,478 Japanese Yen 6,832 11,348 Other currencies 9,938 4,390 Total 232,414 185,000 |
Disclosure of changes in allowance for doubtful accounts | Changes in the allowance for doubtful accounts of trade receivables during the year were as follows: 2022 2021 (€ thousand) At January 1, 25,984 28,312 Additional provisions 3,844 2,094 Utilizations (1,579) (1,835) Releases (2,522) (2,741) Other changes 73 154 At December 31, 25,800 25,984 |
Disclosure of receivables from financing activities | Receivables from financing activities are as follows: At December 31, 2022 2021 (€ thousand) Client financing 1,390,956 1,132,979 Dealer financing 9,041 10,989 Total receivables from financing activities 1,399,997 1,143,968 |
Disclosure of changes in allowance for doubtful accounts from financing activities | Changes in the allowance for doubtful accounts of receivables from financing activities during the year are as follows: 2022 2021 (€ thousand) At January 1, 11,204 13,195 Additional provisions 3,064 2,737 Utilizations (2,587) (4,507) Releases (2,470) (1,270) Other changes 739 1,049 At December 31, 9,950 11,204 |
Disclosure of other current assets | Other current assets are detailed as follows: At December 31, 2022 2021 (€ thousand) Italian and foreign VAT credits 79,858 61,278 Prepayments 42,908 36,084 Other 30,417 24,862 Total other current assets 153,183 122,224 |
Disclosure of current receivables and other current assets by due date | The analysis of receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2022 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 186,757 — — 45,657 232,414 Receivables from financing activities 208,407 1,060,819 67,992 62,779 1,399,997 Client financing 207,186 1,052,999 67,992 62,779 1,390,956 Dealer financing 1,221 7,821 — — 9,041 Current tax receivables 16,054 — — — 16,054 Other current assets (excluding prepayments) 110,276 — — — 110,276 Total 521,494 1,060,819 67,992 108,436 1,758,741 At December 31, 2021 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 137,694 70 — 47,237 185,000 Receivables from financing activities 197,207 820,363 73,665 52,733 1,143,968 Client financing 196,018 810,563 73,665 52,733 1,132,979 Dealer financing 1,189 9,800 — — 10,989 Current tax receivables 14,306 — — — 14,306 Other current assets (excluding prepayments) 84,417 998 155 570 86,140 Total 433,624 821,431 73,820 100,540 1,429,414 |
CURRENT FINANCIAL ASSETS AND _2
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets | At December 31, 2022 2021 (€ thousand) Financial derivatives 80,233 11,565 Other financial assets 7,068 1,935 Current financial assets 87,301 13,500 |
Disclosure of derivative financial instruments | The following table sets forth a breakdown of derivative assets and liabilities at December 31, 2022 and 2021 . At December 31, 2022 2021 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedges: Foreign currency derivatives 41,270 (16,976) 4,437 (34,973) Commodities 5 (772) 182 (1,162) Interest rate caps 36,771 — 6,053 — Total cash flow hedges 78,046 (17,748) 10,672 (36,135) Other foreign currency derivatives 2,187 (2,245) 893 (385) Total 80,233 (19,993) 11,565 (36,520) The following tables provide an analysis of outstanding derivative financial instruments by foreign currency based on their fair value and notional amounts: At December 31, 2022 At December 31, 2021 Fair Value Notional Amount Fair Value Notional Amount (€ thousand) Currencies: U.S. Dollar 49,466 2,385,494 (17,588) 1,773,022 Pound Sterling 2,811 121,881 (2,343) 154,353 Japanese Yen 2,711 275,700 116 282,482 Swiss Franc (991) 108,459 (2,754) 76,953 Chinese Yuan 2,702 176,062 (1,125) 91,248 Other (1) 3,541 131,319 (1,261) 108,822 Total amount 60,240 3,198,915 (24,955) 2,486,880 ______________________________ (1) Other mainly includes the Australian Dollar, the Canadian Dollar and the Hong Kong Dollar. |
Disclosure of reclassified gain/loss from other comprehensive income/(loss) to the consolidated income statement | The Group reclassified gains and losses, net of the related tax effects, from other comprehensive income/(loss) to the consolidated income statement as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Net revenues/(costs) (75,749) 7,275 19,557 Income tax (expense)/benefit 21,134 (2,030) (5,456) Total recognized in the consolidated income statement (54,615) 5,245 14,101 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
Disclosure of classes of share capital | The following table summarizes the changes in the number of outstanding common shares and outstanding special voting shares of the Company for the years ended December 31, 2022 and 2021: Common Shares Special Voting Shares Total Outstanding shares at December 31, 2020 184,747,890 63,346,922 248,094,812 Common shares repurchased under share repurchase program (1) (1,167,592) — (1,167,592) Common shares assigned under equity incentive plans (2) 263,098 — 263,098 Other changes (3) — (2,000) (2,000) Outstanding shares at December 31, 2021 183,843,396 63,344,922 247,188,318 Common shares repurchased under share repurchase program (4) (1,966,816) — (1,966,816) Common shares assigned under equity incentive plans (5) 76,918 — 76,918 Other changes (3) — (1,009) (1,009) Outstanding shares at December 31, 2022 181,953,498 63,343,913 245,297,411 _______________________________________ . (1) Includes shares repurchased under the share repurchase program between January 1, 2021 and December 31, 2021 based on the transaction trade date, for a total consideration of €231,024 thousand, including transaction costs. (2) On March 16, 2021, 356,571 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans as a result of the vesting of certain performance share unit and retention restricted share unit awards. On March 17, 2021, the Company purchased 93,473 common shares, for a total consideration of €15,432 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (Sell to Cover) in an over-the-counter transaction. See Note 21 “Share-Based Compensation” for additional details relating to the Group’s equity incentive plans. (3) Relates to the deregistration of certain special voting shares under the Company’s special voting shares term and conditions. (4) Includes shares repurchased under the share repurchase program between January 1, 2022 and December 31, 2022 based on the transaction trade date, for a total consideration of €384,869 thousand, including transaction costs. (5) On March 16, 2022, 122,125 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans as a result of the vesting of certain performance share unit and retention restricted share unit awards. On the same day, the Company purchased 56,517 common shares, for a total consideration of €10,365 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. On May 25, 2022, 6,643 common shares, which were previously held in treasury, were assigned to certain employees. On the same day, the Company purchased 3,185 common shares, for a total consideration of €562 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. On December 2, 2022, 11,218 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans. On the same day, the Company purchased, 3,366 common shares, for a total consideration of €726 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (“Sell to Cover”) in a cross transaction. See Note 21 “Share-Based Compensation” for additional details relating to the Group’s equity incentive plans. |
Disclosure of other comprehensive income/(loss) | The following table presents other comprehensive income/(loss): For the years ended December 31, 2022 2021 2020 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on remeasurement of defined benefit plans (1) 1,605 (463) 34 Total items that will not be reclassified to the consolidated income statement in subsequent periods 1,605 (463) 34 Items that may be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on cash flow hedging instruments arising during the period 17,149 (56,855) 59,666 Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement 75,749 (7,275) (19,557) Gains/(Losses) on cash flow hedging instruments 92,898 (64,130) 40,109 Exchange differences on translating foreign operations 9,798 14,229 (11,731) Total items that may be reclassified to the consolidated income statement in subsequent periods 102,696 (49,901) 28,378 Total other comprehensive income/(loss) 104,301 (50,364) 28,412 Related tax impact (25,002) 18,070 (11,290) Total other comprehensive income/(loss), net of tax 79,299 (32,294) 17,122 __________________________ (1) Includes a loss of €15 thousand, a gain of €83 thousand and a loss of €4 thousand for the years ended December 31, 2022, 2021 and 2020, respectively, related to the Group’s proportionate share of the remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. The tax effects relating to other comprehensive income/(loss) are summarized in the following table: For the years ended December 31, 2022 2021 2020 Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance (€ thousand) Gains/(Losses) on remeasurement of defined benefit plans 1,605 (376) 1,229 (463) 110 (353) 34 1 35 Gains/(Losses) on cash flow hedging instruments 92,898 (24,626) 68,272 (64,130) 17,960 (46,170) 40,109 (11,291) 28,818 Exchange (losses)/gains on translating foreign operations 9,798 — 9,798 14,229 — 14,229 (11,731) — (11,731) Total other comprehensive (loss)/income 104,301 (25,002) 79,299 (50,364) 18,070 (32,294) 28,412 (11,290) 17,122 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share-based Compensation [Abstract] | |
Disclosure of terms and conditions of share-based payment arrangement | The number of 2022-2024 PSUs with a TSR Target that vest under the Equity Incentive Plan 2022-2024 is based on the Company’s TSR performance over the relevant performance period compared to an industry-specific Peer Group as summarized below. Ferrari TSR Ranking % of Target Awards that Vest 1 175% 2 150% 3 125% 4 100% 5 75% 6 50% >6 0% The defined Peer Group (including the Company) for the TSR Target is presented below. Ferrari Aston Martin Burberry Estee Lauder Hermes Kering LVMH Mercedes Benz Group AG Moncler Prada Richemont EBITDA Target The number of 2022-2024 PSUs with an EBITDA Target that vest under the Equity Incentive Plan 2022-2024 is determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the Group’s business plan, as summarized below. Actual Adjusted EBITDA Compared to Business Plan % of Awards that Vest +15% 175% +10% 150% +5% 125% Business Plan Target 100% -5% 75% <-5% 0% |
Disclosure of indirect measurement of fair value of goods or services received, other equity instruments granted during period | The fair value of the PSUs and RSUs that were awarded under the Equity Incentive Plan 2022-2024, which is determined based on actuarial calculations that apply certain assumptions and take into consideration the specific characteristics of the awards granted, is summarized in the following table. Equity Incentive Plan 2022-2024 PSUs €200.13 RSUs €201.20 The key assumptions utilized to calculate the grant-date fair values of the PSUs that were awarded under the Equity Incentive Plan 2022-2024 are summarized below: Equity Incentive Plan 2022-2024 Grant date share price €205.20 Expected volatility 27.75% Dividend yield 0.75% Risk-free rate 0% |
Outstanding number of PSUs and RSUs | Changes to the outstanding number of PSU and RSU awards under all equity incentive plans of the Group are as follows: Outstanding PSU Awards Outstanding RSU Awards Total Outstanding Awards Balance at January 1, 2021 414,839 159,063 573,902 Granted (1) 49,861 41,460 91,321 Forfeited (19,775) (13,048) (32,823) Vested (292,753) (63,814) (356,567) Balance at December 31, 2021 152,172 123,661 275,833 Granted (2) 72,373 26,574 98,947 Forfeited (16,327) (8,934) (25,261) Vested (68,013) (54,112) (122,125) Balance at December 31, 2022 140,205 87,189 227,394 _______________________________________ (1) Granted under the Equity Incentive Plan 2021-2023. (2) Grander under the Equity Incentive Plan 2022-2024. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits [Abstract] | |
Group's provision for employee benefits | The Group’s provisions for employee benefits are as follows: At December 31, 2022 2021 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 15,142 18,430 Total present value of defined benefit obligations 15,142 18,430 Other provisions for employees 95,665 82,770 Total provisions for employee benefits 110,807 101,200 |
Disclosure of defined benefit plans | The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2020 19,825 105 19,930 Recognized in the consolidated income statement 6 — 6 Recognized in other comprehensive loss/(income) (*) 463 — 463 Other (1,864) (105) (1,969) Benefits paid (2,127) (105) (2,232) Other changes 263 — 263 Amounts at December 31, 2021 18,430 — 18,430 Recognized in the consolidated income statement 22 — 22 Recognized in other comprehensive income/(loss) (*) (1,605) — (1,605) Other (1,705) — (1,705) Benefits paid (1,731) — (1,731) Other changes 26 — 26 Amounts at December 31, 2022 15,142 — 15,142 ______________________________ (*) Relates to actuarial losses/(gains) from financial assumptions. The expected future benefit payments for the defined benefit obligations as of December 31, 2022 are as follows: TFR (€ thousand) 2023 1,740 2024 1,448 2025 1,458 2026 1,402 2027 1,518 2028 - 2032 6,019 Total 13,585 |
Disclosure of amounts recognized in the consolidated income statement | Amounts recognized in the consolidated income statement are as follows: For the years ended December 31, 2022 2021 2020 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — — — 6 — 6 — — — Interest expense 22 — 22 — — — 25 — 25 Past service adjustments — — — — — — — — — Total recognized in the consolidated income statement 22 — 22 6 — 6 25 — 25 |
Disclosure of the sensitivity of defined benefit plan to changes in principle assumptions | The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is: At December 31, 2022 2021 Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate (€ thousand) Impact on defined benefit obligation (904) 1,013 (1,321) 1,507 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Disclosure of other provisions | Movements in provisions are as follows: At December 31, 2021 Additional provisions Utilization Releases Translation differences Reclassification and other movements At December 31, 2022 (€ thousand) Warranty and recall campaigns provision 108,767 61,076 (39,958) (3,854) 38 — 126,069 Legal proceedings and disputes 13,701 1,601 (1,213) (1,202) 325 (1,150) 12,062 Environmental and other risks 28,400 17,178 (1,802) (2,468) 105 1,150 42,563 Total provisions 150,868 79,855 (42,973) (7,524) 468 — 180,694 The following table presents where the additional provisions to environmental and other risks recognized for the years ended December 31, 2022, 2021 and 2020 were recorded within the consolidated income statement. For the years ended December 31, 2022 2021 2020 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 15,616 10,562 6,352 Selling, general and administrative costs 1,562 1,744 1,174 Total 17,178 12,306 7,526 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of debt instruments | Balance at December 31, 2021 Proceeds from borrowings Repayments of borrowings Interest accrued/(paid) and other (*) Translation differences Balance at December 31, 2022 (€ thousand) Bonds and notes 1,487,110 — — 3,209 — 1,490,319 Asset-backed financing (Securitizations) 900,213 218,924 (72,824) 1,733 57,379 1,105,425 Borrowings from banks and other financial institutions 154,419 8,909 (55,000) 560 4,277 113,165 Lease liabilities 56,210 — (16,500) 17,409 304 57,423 Other debt 32,059 34,456 (23,215) — 2,147 45,447 Total debt 2,630,011 262,289 (167,539) 22,911 64,107 2,811,779 ______________________________ (*) Other changes in lease liabilities relates entirely to non-cash movements for the recognition of additional lease liabilities in accordance with IFRS 16. The following table presents information relating to the revolving securitization programs: Program Funding Limit Amount Outstanding at December 31, 2022 Amount Outstanding at December 31, 2021 Maturity Date ($ million) ($ million) ($ million) Retail (*) 975 896 775 December 2024 Leasing (*) 325 283 245 November 2023 Total asset-backed financing (Securitizations) 1,300 1,179 1,020 (*) At December 31, 2022 the notes relating to the retail securitization program bore interest at a rate per annum equal to the aggregate of a synthetic base rate substantially replicating the LIBOR plus a margin of 70 basis points and the notes relating to the leasing securitization program bore interest at a rate per annum equal to the aggregate of SOFR plus a margin of 65 basis points. Borrowings from banks and other financial institutions The following table presents information relating to borrowings from banks and other financial institutions. Borrowing Entity Currency Amount Outstanding at December 31, 2022 Amount Outstanding at December 31, 2021 Maturity Date (€ thousand) (€ thousand) Ferrari S.p.A. EUR 37,500 62,500 June 2024 Ferrari Financial Services, Inc. USD 75,665 61,919 April 2023 Ferrari S.p.A. EUR — 30,000 January 2022 Total borrowings from banks and other financial institutions 113,165 154,419 |
Disclosure of debt maturity | The breakdown of debt by nature and by maturity is as follows: At December 31, 2022 2021 Due within one year Due between Due beyond five years Total Due within one year Due between Due beyond five years Total (€ thousand) Bonds and notes 394,628 646,306 449,385 1,490,319 9,239 1,028,686 449,185 1,487,110 Asset-backed financing (Securitizations) 422,736 682,689 — 1,105,425 343,119 499,280 57,814 900,213 Borrowings from banks and other financial institutions 100,665 12,500 — 113,165 116,919 37,500 — 154,419 Lease liabilities 15,917 29,446 12,060 57,423 14,783 29,732 11,695 56,210 Other debt 45,447 — — 45,447 32,059 — — 32,059 Total debt 979,393 1,370,941 461,445 2,811,779 516,119 1,595,198 518,694 2,630,011 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other liabilities | An analysis of other liabilities is as follows: At December 31, 2022 2021 (€ thousand) Deferred income 270,353 256,206 Advances and security deposits 451,166 240,696 Accrued expenses 98,535 80,787 Payables to personnel 55,789 53,712 Social security payables 26,498 24,660 Other 49,684 70,714 Total other liabilities 952,025 726,775 |
Explanation of significant changes in contract liabilities | Changes in the Group’s contract liabilities for maintenance and power warranties, and advances from customers, were as follows: At January 1, 2022 Additional amounts arising during the period Amounts recognized within revenue Other changes At December 31, 2022 (€ thousand) Maintenance and power warranty programs 218,982 100,710 (79,593) (220) 239,879 Advances from customers 236,516 761,714 (551,885) 49 446,394 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair value measurement [Abstract] | |
Disclosure of fair value measurement of liabilities | The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021: At December 31, 2022 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 9,954 — — 9,954 Current financial assets 19 — 80,233 — 80,233 Total assets 9,954 80,233 — 90,187 Other financial liabilities 19 — 19,993 — 19,993 Total liabilities — 19,993 — 19,993 At December 31, 2021 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 10,559 — — 10,559 Current financial assets 19 — 11,565 — 11,565 Total assets 10,559 11,565 — 22,124 Other financial liabilities 19 — 36,520 — 36,520 Total liabilities — 36,520 — 36,520 |
Disclosure of fair value measurement of assets | The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021: At December 31, 2022 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 9,954 — — 9,954 Current financial assets 19 — 80,233 — 80,233 Total assets 9,954 80,233 — 90,187 Other financial liabilities 19 — 19,993 — 19,993 Total liabilities — 19,993 — 19,993 At December 31, 2021 Note Level 1 Level 2 Level 3 Total (€ thousand) Investments and other financial assets - Liberty Media Shares 16 10,559 — — 10,559 Current financial assets 19 — 11,565 — 11,565 Total assets 10,559 11,565 — 22,124 Other financial liabilities 19 — 36,520 — 36,520 Total liabilities — 36,520 — 36,520 |
Disclosure of carrying amount and fair value of financial assets and liabilities | The following table presents the carrying amount and fair value for the most relevant categories of financial assets and financial liabilities not measured at fair value on a recurring basis: At December 31, 2022 2021 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 18 1,399,997 1,399,997 1,143,968 1,143,968 Client financing 1,390,956 1,390,956 1,132,979 1,132,979 Dealer financing 9,041 9,041 10,989 10,989 Total 1,399,997 1,399,997 1,143,968 1,143,968 Debt 24 2,811,779 2,770,633 2,630,011 2,656,159 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
Disclosure of transactions between related parties | The amounts of transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2022 2021 2020 Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses (€ thousand) Stellantis Group companies Maserati 78,946 2,989 — 119,083 2,428 — 100,389 2,981 — FCA US LLC 14 14,861 — — 18,465 — — 13,323 — Other Stellantis Group companies 10,953 5,950 2,696 11,799 6,238 2,103 9,102 6,057 2,207 Total Stellantis Group companies 89,913 23,800 2,696 130,882 27,131 2,103 109,491 22,361 2,207 Exor Group companies (excluding the Stellantis Group) 282 1,611 — 281 1,014 1 150 1,665 2 Other related parties 3,088 14,121 1 795 15,143 2 549 12,977 10 Total transactions with related parties 93,283 39,532 2,697 131,958 43,288 2,106 110,190 37,003 2,219 Total for the Ferrari Group 5,095,254 3,098,475 49,616 4,270,894 2,434,198 33,257 3,459,790 2,040,925 49,092 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses/(income), net. Non-financial assets and liabilities originating from related party transactions are as follows: At December 31, 2022 2021 Trade receivables Trade payables Other current assets Other liabilities Trade receivables Trade payables Other current assets Other liabilities (€ thousand) Stellantis Group companies Maserati 17,458 4,806 — 2,246 23,267 3,994 — 6,454 FCA US LLC 10 4,637 — — — 3,275 — — Other Stellantis Group companies 700 1,978 111 1,063 470 3,075 121 1,074 Total Stellantis Group companies 18,168 11,421 111 3,309 23,737 10,344 121 7,528 Exor Group companies (excluding the Stellantis Group) 343 418 68 73 382 1 8 5 Other related parties 673 3,341 499 504 144 3,276 998 1,065 Total transactions with related parties 19,184 15,180 678 3,886 24,263 13,621 1,127 8,598 Total for the Ferrari Group 232,414 902,968 153,183 952,025 185,000 797,832 122,224 726,775 |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities | The fees of the Directors of Ferrari N.V. are as follows: For the years ended December 31, 2022 2021 2020 (€ thousand) Directors of Ferrari N.V. 7,660 6,668 8,151 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments [Abstract] | |
Disclosure of future minimum purchase obligations under arrangements | Future minimum purchase obligations under these supplier and sponsorship arrangements at December 31, 2022 were as follows: At December 31, 2022 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Minimum purchase obligations 54,964 12,445 3,311 — 70,720 |
Disclosure of future aggregate minimum lease payments under non-cancellable operating leases | The future aggregate minimum lease payments under non-cancellable leases, primarily relating to the lease of stores and industrial buildings, are as follows: At December 31, 2022 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Future minimum lease payments under lease agreements 16,178 19,775 11,886 12,785 60,624 |
ENTITY-WIDE DISCLOSURES (Tables
ENTITY-WIDE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Entity-wide disclosures [Abstract] | |
Disclosure of net revenue by geographic location | The following table presents an analysis of net revenues by geographic location of the Group’s customers for the years ended December 31, 2022 and 2021, including the effects of foreign currency hedge transactions. Revenues by geography presented for material individual countries are not necessarily correlated to shipments of cars as certain countries include revenues from sponsorship and commercial activities relating to Ferrari’s participation in the Formula 1 World Championship. For the years ended December 31, 2022 2021 2020 (€ thousand) Italy 379,898 409,992 322,573 Rest of EMEA 2,045,888 1,869,864 1,634,515 of which UK 536,280 457,060 484,701 of which Germany 430,380 367,087 280,191 Americas (1) 1,407,790 1,097,904 883,228 of which United States of America 1,198,834 930,316 747,373 Mainland China, Hong Kong and Taiwan 621,407 332,971 191,907 Rest of APAC (2) 640,271 560,163 427,567 Total net revenues 5,095,254 4,270,894 3,459,790 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America. (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia. The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2022 2021 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 1,418,846 785,182 1,307,127 1,322,257 785,182 1,137,910 Rest of EMEA 4,830 — — 5,597 — — Americas (1) 27,233 — — 16,003 — — Mainland China, Hong Kong and Taiwan 4,598 — — 5,898 — — Rest of APAC (2) 2,318 — 261 3,410 — 263 Total 1,457,825 785,182 1,307,388 1,353,165 785,182 1,138,173 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America. (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia. |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION - Narrative (Details) | Dec. 31, 2022 market pointsOfSale dealer store |
Background and Basis of Presentation [Abstract] | |
Number of worldwide markets | market | 60 |
Number of authorized dealers | dealer | 177 |
Number of points of sale | pointsOfSale | 196 |
Number of Ferrari-owned stores | 16 |
Number of franchised stores | 2 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - FOREIGN EXCHANGE RATES (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.0530 | 1.1827 | 1.1422 |
Closing exchange rate (per Euro) | 1.0666 | 1.1326 | 1.2271 |
Pound Sterling | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 0.8528 | 0.8596 | 0.8897 |
Closing exchange rate (per Euro) | 0.8869 | 0.8403 | 0.8990 |
Swiss Franc | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.0047 | 1.0811 | 1.0705 |
Closing exchange rate (per Euro) | 0.9847 | 1.0331 | 1.0802 |
Japanese Yen | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 138.0274 | 129.8767 | 121.8458 |
Closing exchange rate (per Euro) | 140.6600 | 130.3800 | 126.4900 |
Chinese Yuan | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 7.0788 | 7.6282 | 7.8747 |
Closing exchange rate (per Euro) | 7.3582 | 7.1947 | 8.0225 |
Australian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.5167 | 1.5749 | 1.6549 |
Closing exchange rate (per Euro) | 1.5693 | 1.5615 | 1.5896 |
Canadian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.3695 | 1.4826 | 1.5300 |
Closing exchange rate (per Euro) | 1.4440 | 1.4393 | 1.5633 |
Singapore Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.4512 | 1.5891 | 1.5742 |
Closing exchange rate (per Euro) | 1.4300 | 1.5279 | 1.6218 |
Hong Kong Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 8.2451 | 9.1932 | 8.8587 |
Closing exchange rate (per Euro) | 8.3163 | 8.8333 | 9.5142 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - INTANGIBLE ASSETS (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Capitalized development costs | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 4 years |
Capitalized development costs | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 8 years |
Patents, concessions and licenses | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Patents, concessions and licenses | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 5 years |
Other intangible assets | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Other intangible assets | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 5 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - DEPRECIATION RATES (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range | Industrial buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 3% |
Bottom of range | Plant, machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 5% |
Bottom of range | Other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 12% |
Top of range | Industrial buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 20% |
Top of range | Plant, machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 22% |
Top of range | Other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 25% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - REVENUE RECOGNITION (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical duration of payments due from customers | 30 days |
Top of range | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical duration of payments due from customers | 40 days |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - TAXES (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |||
IRAP applicable tax rate (percent) | 3.90% | 3.90% | 3.90% |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - SEGMENT REPORTING (Details) | Dec. 31, 2022 segment |
Significant Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - RECOVERABILITY OF GOODWILL (Details) | Dec. 31, 2022 segment |
Significant Accounting Policies [Abstract] | |
Number of operating segments | 1 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - GOODWILL (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Significant Accounting Policies [Abstract] | ||
Goodwill | € 785,182 | € 785,182 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - NON CURRENT ASSETS WITH DEFINITE USEFUL LIVES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | € 1,307,388 | € 1,138,173 | € 979,290 |
Property, plant and equipment | 1,457,825 | 1,353,165 | € 1,226,630 |
Development costs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 1,264,467 | 1,107,141 | |
Increase (decrease) in intangible assets other than goodwill | € 416,368 | € 363,139 |
SCOPE OF CONSOLIDATION - Scope
SCOPE OF CONSOLIDATION - Scope of Consolidation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ferrari S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
New Business 33 S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari North America Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Japan KK | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Australasia Pty Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 80% | 80% | 80% |
Shares held by NCI (percent) | 20% | 20% | |
Ferrari (HK) Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Far East Pte Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Management Consulting (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari South West Europe S.a.r.l. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Central Europe GmbH | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
G.S.A. S.A. in liquidation | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Mugello Circuit S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Financial Services, Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Auto Securitization Transaction, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Auto Securitization Transaction - Lease, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Auto Securitization Transaction - Select, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
Ferrari Financial Services Titling Trust | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% | |
410, Park Display Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100% | 100% | |
Shares held by NCI (percent) | 0% | 0% |
SCOPE OF CONSOLIDATION - Narrat
SCOPE OF CONSOLIDATION - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Collected From Settlements of Receivables or Collateral | |||
Disclosure of subsidiaries [line items] | |||
Restricted cash and cash equivalents | € 44,085 | € 47,742 | |
CHINA | |||
Disclosure of subsidiaries [line items] | |||
Restricted cash and cash equivalents | € 96,726 | € 89,611 | |
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 80% | 80% | 80% |
SCOPE OF CONSOLIDATION - Noncon
SCOPE OF CONSOLIDATION - Noncontrolling Interests (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Scope of Consolidation [Abstract] | |||
Equity attributable to non-controlling interests | € 9,630 | € 5,518 | |
Net profit attributable to non-controlling interests | € 6,680 | € 2,369 | € 1,063 |
NET REVENUES (Details)
NET REVENUES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenues | € 5,095,254 | € 4,270,894 | € 3,459,790 |
Cars and spare parts | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 4,341,482 | 3,573,119 | 2,835,170 |
Sponsorship, commercial and brand | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 478,499 | 430,579 | 390,002 |
Engines | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 155,342 | 189,432 | 150,655 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | € 119,931 | € 77,764 | € 83,963 |
NET REVENUES - Narrative (Detai
NET REVENUES - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Finance income | € 73,969 | € 60,183 | € 67,005 |
Financial services companies | |||
Disaggregation of Revenue [Line Items] | |||
Finance income | € 69,389 | € 55,043 | € 65,878 |
COST OF SALES (Details)
COST OF SALES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Cost of sales | € 2,648,953 | € 2,080,613 | € 1,686,324 |
Interest and other financial expense | € 27,145 | € 16,639 | € 36,628 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Selling costs | € 226,988 | € 168,466 | € 171,900 |
General and administrative costs | € 200,986 | € 179,558 | € 164,226 |
RESEARCH AND DEVELOPMENT COST_2
RESEARCH AND DEVELOPMENT COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Research and development costs expensed during the year | € 517,842 | € 573,632 | € 526,831 |
Total research and development costs | 775,572 | 768,104 | 707,385 |
Development costs | |||
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Amortization of capitalized development costs | € 257,730 | € 194,472 | € 180,554 |
OTHER EXPENSES_(INCOME), NET -
OTHER EXPENSES/(INCOME), NET - Schedule of Other Expenses, net (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Other expenses | € 33,994 | € 13,666 | € 25,067 |
Other income | (12,446) | (8,105) | (6,592) |
Other expenses, net | € 21,548 | € 5,561 | € 18,475 |
NET FINANCIAL EXPENSES (Details
NET FINANCIAL EXPENSES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest income from bank deposits | € 2,414 | € 399 | € 610 |
Other interest income and financial income | 2,166 | 4,741 | 517 |
Interest income and other financial income | 4,580 | 5,140 | 1,127 |
Total financial income | 73,969 | 60,183 | 67,005 |
Capitalized borrowing costs | 1,914 | 1,874 | 2,591 |
Other interest and financial expenses | (2,778) | (3,315) | (3,258) |
Interest expenses and other financial expenses | (864) | (1,441) | (667) |
Interest expenses from banks and other financial institutions | (25,503) | (11,310) | (14,330) |
Interest and other finance costs on bonds and notes | (23,679) | (22,947) | (20,116) |
Write-downs of financial receivables | (594) | (1,467) | (9,502) |
Other financial expenses | (2,008) | (5,991) | (14,580) |
Total financial expenses | (52,648) | (43,156) | (59,195) |
Net expenses from derivative financial instruments and foreign currency exchange rate differences | (28,693) | (11,880) | (27,652) |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences | (81,341) | (55,036) | (86,847) |
Net financial expenses | (49,616) | (33,257) | (49,092) |
Financial services companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 69,389 | 55,043 | 65,878 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences | (27,145) | (16,639) | (36,628) |
Industrial companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 4,580 | 5,140 | 1,127 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences | (54,196) | (38,397) | (50,219) |
Net financial expenses | € (49,616) | € (33,257) | € (49,092) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Current tax expense | € 269,924 | € 218,540 | € 120,115 |
Deferred tax benefit | (30,178) | (12,001) | (62,474) |
Taxes relating to prior years | (1,274) | 2,556 | 514 |
Total income tax expense | € 238,472 | € 209,095 | € 58,155 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) € in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 installment | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | € 238,472 | € 209,095 | € 58,155 | |
Applicable tax rate (percent) | 24% | 24% | 24% | |
Deferred tax assets | € 203,382 | € 168,757 | ||
Deferred tax liabilities | € 126,507 | € 95,973 | ||
Effective tax rate | 20.20% | 20.10% | 8.70% | |
IRAP applicable tax rate (percent) | 3.90% | 3.90% | 3.90% | |
Aggregate amount of temporary differences related to remaining distributable earnings of subsidiaries | € 268,923 | € 186,806 | ||
Voluntary Step-up of Tangible and Intangible Assets | ||||
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | € (74,700) | |||
Applicable tax rate (percent) | 3% | |||
Deferred tax asset utilization period | 50 years | |||
Number of tax payments | installment | 3 | |||
Voluntary Step-up of Tangible and Intangible Assets | Minimum | ||||
Income Taxes [Line Items] | ||||
Deferred tax asset, utilization period, extension period | 18 years | |||
Voluntary Step-up of Tangible and Intangible Assets | Maximum | ||||
Income Taxes [Line Items] | ||||
Deferred tax asset, utilization period, extension period | 50 years |
INCOME TAXES - Schedule of In_2
INCOME TAXES - Schedule of Income Tax Rate Reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Theoretical income tax expense | € 282,664 | € 250,136 | € 160,088 |
Permanent and other differences | (85,736) | (79,267) | (129,016) |
Italian Regional Income Tax (IRAP) | 39,446 | 32,422 | 22,662 |
Effect of changes in tax rates and tax regulations | 553 | 633 | 800 |
Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays | 1,945 | 2,077 | 1,734 |
Taxes relating to prior years | (1,274) | 2,556 | 514 |
Withholding tax on earnings | 875 | 539 | 1,373 |
Total income tax expense | € 238,472 | € 209,095 | € 58,155 |
Effective tax rate | 20.20% | 20.10% | 8.70% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | € 203,382 | € 168,757 |
Deferred tax liabilities | (126,507) | (95,973) |
Net deferred tax assets/(liabilities) | 76,875 | 72,784 |
To be recovered after 12 months | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 107,252 | 94,808 |
Deferred tax liabilities | (86,160) | (78,496) |
To be recovered within 12 months | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 96,130 | 73,949 |
Deferred tax liabilities | € (40,347) | € (17,477) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Asset and Liability Rollforward (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | € 168,757 | |
Deferred tax liabilities, beginning of period | (95,973) | |
Total net deferred tax assets/(liabilities), beginning of period | 72,784 | |
Total net deferred tax assets/(liabilities), beginning of period | € 38,747 | |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 30,178 | 12,001 |
Charged to equity | (25,002) | 18,070 |
Translation differences and other changes | (1,085) | 3,966 |
Deferred tax assets, end of period | 203,382 | 168,757 |
Deferred tax liabilities, end of period | (126,507) | (95,973) |
Total net deferred tax assets/(liabilities), end of period | 76,875 | 72,784 |
Provisions | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 103,981 | 90,663 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 16,556 | 12,712 |
Translation differences and other changes | (258) | 606 |
Deferred tax assets, end of period | 120,279 | 103,981 |
Deferred income | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 51,635 | 52,241 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (606) | |
Deferred tax assets, end of period | 51,635 | 51,635 |
Employee benefits | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 3,041 | 2,931 |
Changes in deferred tax liability (asset) [abstract] | ||
Charged to equity | (376) | 110 |
Deferred tax assets, end of period | 2,665 | 3,041 |
Foreign currency exchange rate differences | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 610 | 516 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 2,830 | 95 |
Translation differences and other changes | (1) | (1) |
Deferred tax assets, end of period | 3,439 | 610 |
Cash flow hedge reserve | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 8,455 | |
Changes in deferred tax liability (asset) [abstract] | ||
Charged to equity | (8,455) | 8,455 |
Deferred tax assets, end of period | 0 | 8,455 |
Inventory obsolescence | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 69,107 | 61,726 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 31,648 | 7,131 |
Translation differences and other changes | 80 | 250 |
Deferred tax assets, end of period | 100,835 | 69,107 |
Allowances for doubtful accounts | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 5,178 | 5,643 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 50 | (474) |
Translation differences and other changes | (5) | 9 |
Deferred tax assets, end of period | 5,223 | 5,178 |
Depreciation | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 17,555 | 17,551 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (15) | 7 |
Translation differences and other changes | (7) | (3) |
Deferred tax assets, end of period | 17,533 | 17,555 |
Trademark step-up | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 84,537 | 83,700 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 837 | 837 |
Deferred tax assets, end of period | 85,374 | 84,537 |
Patent box | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 65,693 | 27,902 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 12,688 | 37,791 |
Deferred tax assets, end of period | 78,381 | 65,693 |
Other | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 14,328 | 6,027 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 575 | 3,927 |
Translation differences and other changes | (59) | 4,374 |
Deferred tax assets, end of period | 14,844 | 14,328 |
Total deferred tax assets | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax assets, beginning of period | 424,120 | 348,900 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 65,169 | 61,420 |
Charged to equity | (8,831) | 8,565 |
Translation differences and other changes | (250) | 5,235 |
Deferred tax assets, end of period | 480,208 | 424,120 |
Depreciation | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (6,781) | (7,550) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 2,076 | 1,217 |
Translation differences and other changes | (352) | (448) |
Deferred tax liabilities, end of period | (5,057) | (6,781) |
Capitalization of development costs | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (311,438) | (264,087) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (44,134) | (47,349) |
Translation differences and other changes | (2) | (2) |
Deferred tax liabilities, end of period | (355,574) | (311,438) |
Employee benefits | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (1,053) | (844) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (457) | (209) |
Deferred tax liabilities, end of period | (1,510) | (1,053) |
Foreign currency exchange rate differences | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (526) | (559) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (634) | 33 |
Deferred tax liabilities, end of period | (1,160) | (526) |
Cash flow hedge reserve | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (9,505) | |
Changes in deferred tax liability (asset) [abstract] | ||
Charged to equity | (16,171) | 9,505 |
Deferred tax liabilities, end of period | (16,171) | |
Tax on undistributed earnings | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (17,404) | (15,861) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 6,826 | (1,543) |
Deferred tax liabilities, end of period | (10,578) | (17,404) |
Other | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (14,134) | (11,747) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | 1,332 | (1,568) |
Translation differences and other changes | (481) | (819) |
Deferred tax liabilities, end of period | (13,283) | (14,134) |
Total deferred tax liabilities | ||
Deferred Net Tax Asset And Liabilities [Roll Forward] | ||
Deferred tax liabilities, beginning of period | (351,336) | (310,153) |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in consolidated income statement | (34,991) | (49,419) |
Charged to equity | (16,171) | 9,505 |
Translation differences and other changes | (835) | (1,269) |
Deferred tax liabilities, end of period | € (403,333) | € (351,336) |
OTHER INFORMATION BY NATURE - N
OTHER INFORMATION BY NATURE - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) employee | Dec. 31, 2021 EUR (€) employee | Dec. 31, 2020 EUR (€) employee | |
Disclosure of detailed information about intangible assets [line items] | |||
Compensation related to product development | € 527,316 | € 483,747 | € 389,927 |
Average number of employees | employee | 4,691 | 4,571 | 4,428 |
Depreciation expense | € 259,849 | € 230,097 | € 217,952 |
Accumulated depreciation and amortisation | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization | € 286,376 | € 225,892 | € 208,685 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic earnings per share [abstract] | |||
Profit attributable to owners of the Company | € 932,614 | € 830,767 | € 607,817 |
Weighted average number of common shares for basic earnings per common share (shares) | 182,836 | 184,446 | 184,806 |
Basic earnings per common share (in Euros per share) | € 5.11 | € 4.50 | € 3.29 |
Diluted earnings per share [abstract] | |||
Owners of the parent | € 932,614 | € 830,767 | € 607,817 |
Weighted average number of common shares for diluted earnings per common share (shares) | 183,072 | 184,722 | 185,379 |
Diluted earnings per common share (in Euros per share) | € 5.09 | € 4.50 | € 3.28 |
GOODWILL (Details)
GOODWILL (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Goodwill | € 785,182 | € 785,182 | |
Specific medium/ long-term growth rate (percent) | 2% | 2% | 2% |
Weighted average cost of capital | Discounted cash flow | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Base WACC (percent) | 0.081 | 0.0684 | 0.0683 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | € 1,138,173 | € 979,290 | |
Intangible assets, ending balance | 1,307,388 | 1,138,173 | € 979,290 |
Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 3,236,974 | 2,852,199 | |
Additions | 456,894 | 384,827 | |
Divestitures | (1,312) | ||
Reclassifications | 0 | 0 | |
Translation differences and other movements | 9 | (52) | |
Intangible assets, ending balance | 3,692,565 | 3,236,974 | 2,852,199 |
Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | (2,098,801) | (1,872,909) | |
Amortization | 286,376 | 225,892 | 208,685 |
Intangible assets, ending balance | (2,385,177) | (2,098,801) | (1,872,909) |
Development costs | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 1,107,141 | ||
Intangible assets, ending balance | 1,264,467 | 1,107,141 | |
Development costs | Externally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 744,872 | 630,079 | |
Intangible assets, ending balance | 824,693 | 744,872 | 630,079 |
Development costs | Externally acquired | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 2,065,450 | 1,803,993 | |
Additions | 270,329 | 261,457 | |
Divestitures | (962) | ||
Reclassifications | 0 | 0 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 2,334,817 | 2,065,450 | 1,803,993 |
Development costs | Externally acquired | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | (1,320,578) | (1,173,914) | |
Amortization | 189,546 | 146,664 | |
Intangible assets, ending balance | (1,510,124) | (1,320,578) | (1,173,914) |
Development costs | Internally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 362,269 | 308,395 | |
Intangible assets, ending balance | 439,774 | 362,269 | 308,395 |
Development costs | Internally acquired | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 862,015 | 760,333 | |
Additions | 146,039 | 101,682 | |
Divestitures | (350) | ||
Reclassifications | 0 | 0 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 1,007,704 | 862,015 | 760,333 |
Development costs | Internally acquired | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | (499,746) | (451,938) | |
Amortization | 68,184 | 47,808 | |
Intangible assets, ending balance | (567,930) | (499,746) | (451,938) |
Patents, concessions and licenses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 26,047 | 35,250 | |
Intangible assets, ending balance | 32,384 | 26,047 | 35,250 |
Patents, concessions and licenses | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 257,889 | 237,597 | |
Additions | 30,566 | 17,151 | |
Divestitures | 0 | ||
Reclassifications | 2,924 | 3,200 | |
Translation differences and other movements | 0 | (59) | |
Intangible assets, ending balance | 291,379 | 257,889 | 237,597 |
Patents, concessions and licenses | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | (231,842) | (202,347) | |
Amortization | 27,153 | 29,495 | |
Intangible assets, ending balance | (258,995) | (231,842) | (202,347) |
Other intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 4,985 | 5,566 | |
Intangible assets, ending balance | 10,537 | 4,985 | 5,566 |
Other intangible assets | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 51,620 | 50,276 | |
Additions | 9,960 | 4,537 | |
Divestitures | 0 | ||
Reclassifications | (2,924) | (3,200) | |
Translation differences and other movements | 9 | 7 | |
Intangible assets, ending balance | 58,665 | 51,620 | 50,276 |
Other intangible assets | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | (46,635) | (44,710) | |
Amortization | 1,493 | 1,925 | |
Intangible assets, ending balance | € (48,128) | € (46,635) | € (44,710) |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | € 1,353,165 | € 1,226,630 | |
Property, plant and equipment, ending balance | 1,457,825 | 1,353,165 | |
Right-of-use assets | 54,148 | 53,758 | € 59,742 |
Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 3,855,450 | 3,547,970 | |
Additions | 366,574 | 365,457 | |
Divestitures | 25,365 | 55,213 | |
Reclassifications | 0 | (6,574) | |
Translation differences and other movements | 1,204 | 3,810 | |
Property, plant and equipment, ending balance | 4,197,863 | 3,855,450 | |
Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | (2,502,285) | (2,321,340) | |
Depreciation | 259,849 | 230,097 | |
Divestitures | (22,825) | (49,491) | |
Reclassifications | (1,123) | ||
Translation differences and other movements | (729) | (1,462) | |
Property, plant and equipment, ending balance | (2,740,038) | (2,502,285) | |
Land | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 50,056 | 29,391 | |
Property, plant and equipment, ending balance | 131,990 | 50,056 | |
Right-of-use assets | 0 | 0 | 0 |
Land | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 50,056 | 29,391 | |
Additions | 8,287 | 16,936 | |
Divestitures | 0 | 13 | |
Reclassifications | 73,631 | 3,722 | |
Translation differences and other movements | 16 | 20 | |
Property, plant and equipment, ending balance | 131,990 | 50,056 | |
Land | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 0 | 0 | |
Depreciation | 0 | 0 | |
Divestitures | 0 | 0 | |
Reclassifications | 0 | ||
Translation differences and other movements | 0 | 0 | |
Property, plant and equipment, ending balance | 0 | 0 | |
Industrial buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 284,832 | 246,285 | |
Property, plant and equipment, ending balance | 278,676 | 284,832 | |
Right-of-use assets | 18,972 | 21,613 | 25,574 |
Industrial buildings | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 486,677 | 430,455 | |
Additions | 10,155 | 17,852 | |
Divestitures | 3,805 | 3,412 | |
Reclassifications | 4,691 | 40,046 | |
Translation differences and other movements | 334 | 1,736 | |
Property, plant and equipment, ending balance | 498,052 | 486,677 | |
Industrial buildings | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | (201,845) | (184,170) | |
Depreciation | 19,405 | 17,875 | |
Divestitures | (1,983) | (608) | |
Reclassifications | (284) | ||
Translation differences and other movements | (109) | (692) | |
Property, plant and equipment, ending balance | (219,376) | (201,845) | |
Plant, machinery and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 625,099 | 549,358 | |
Property, plant and equipment, ending balance | 727,209 | 625,099 | |
Right-of-use assets | 2,756 | 3,484 | 5,041 |
Plant, machinery and equipment | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 2,766,723 | 2,544,837 | |
Additions | 154,008 | 122,893 | |
Divestitures | 15,388 | 46,067 | |
Reclassifications | 165,210 | 144,684 | |
Translation differences and other movements | (19) | 376 | |
Property, plant and equipment, ending balance | 3,070,534 | 2,766,723 | |
Plant, machinery and equipment | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | (2,141,624) | (1,995,479) | |
Depreciation | 216,661 | 191,247 | |
Divestitures | (14,921) | (43,991) | |
Reclassifications | (1,123) | ||
Translation differences and other movements | 39 | (12) | |
Property, plant and equipment, ending balance | (2,343,325) | (2,141,624) | |
Other assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 74,278 | 71,853 | |
Property, plant and equipment, ending balance | 81,336 | 74,278 | |
Right-of-use assets | 32,420 | 28,661 | 29,127 |
Other assets | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 233,094 | 213,544 | |
Additions | 26,479 | 20,930 | |
Divestitures | 6,018 | 5,586 | |
Reclassifications | 4,322 | 2,573 | |
Translation differences and other movements | 796 | 1,633 | |
Property, plant and equipment, ending balance | 258,673 | 233,094 | |
Other assets | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | (158,816) | (141,691) | |
Depreciation | 23,783 | 20,975 | |
Divestitures | (5,921) | (4,892) | |
Reclassifications | 284 | ||
Translation differences and other movements | (659) | (758) | |
Property, plant and equipment, ending balance | (177,337) | (158,816) | |
Advances and assets under construction | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 318,900 | 329,743 | |
Property, plant and equipment, ending balance | 238,614 | 318,900 | |
Right-of-use assets | 0 | 0 | € 0 |
Advances and assets under construction | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 318,900 | 329,743 | |
Additions | 167,645 | 186,846 | |
Divestitures | 154 | 135 | |
Reclassifications | (247,854) | (197,599) | |
Translation differences and other movements | 77 | 45 | |
Property, plant and equipment, ending balance | 238,614 | 318,900 | |
Advances and assets under construction | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment, beginning balance | 0 | 0 | |
Depreciation | 0 | 0 | |
Divestitures | 0 | 0 | |
Reclassifications | 0 | ||
Translation differences and other movements | 0 | 0 | |
Property, plant and equipment, ending balance | € 0 | € 0 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Changes in Carrying Amount of Right-of-use Assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets, beginning of period | € 53,758 | € 59,742 |
Additions | 18,849 | 13,141 |
Disposals | (1,594) | (3,253) |
Depreciation | (16,833) | (15,348) |
Translation differences and other movements | (32) | (524) |
Right-of-use assets, end of period | 54,148 | 53,758 |
Industrial buildings | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets, beginning of period | 21,613 | 25,574 |
Additions | 4,854 | 3,987 |
Disposals | (1,495) | (2,780) |
Depreciation | (5,933) | (5,753) |
Translation differences and other movements | (67) | 585 |
Right-of-use assets, end of period | 18,972 | 21,613 |
Plant, machinery and equipment | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets, beginning of period | 3,484 | 5,041 |
Additions | 510 | 1,409 |
Disposals | (6) | 0 |
Depreciation | (1,223) | (1,348) |
Translation differences and other movements | (9) | (1,618) |
Right-of-use assets, end of period | 2,756 | 3,484 |
Other assets | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets, beginning of period | 28,661 | 29,127 |
Additions | 13,485 | 7,745 |
Disposals | (93) | (473) |
Depreciation | (9,677) | (8,247) |
Translation differences and other movements | 44 | 509 |
Right-of-use assets, end of period | € 32,420 | € 28,661 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Amounts Recognized in Income Statement Related to Leases (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Depreciation of right-of-use assets | € 16,833 | € 15,348 |
Interest expense on lease liabilities | 1,219 | 868 |
Variable lease payments not included in the measurement of lease liabilities | 822 | 1,622 |
Expenses relating to short-term leases and leases of low-value assets | 3,227 | 3,671 |
Total expenses recognized | € 22,101 | € 21,509 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Depreciation of right-of-use assets | € 16,833 | € 15,348 |
Interest expense on lease liabilities | 1,219 | 868 |
Contractual commitments for acquisition of property, plant and equipment | € 200,949 | € 73,681 |
INVESTMENTS AND OTHER FINANCI_3
INVESTMENTS AND OTHER FINANCIAL ASSETS - Investments and Other Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Investments and other financial assets [Abstract] | |||
Investments accounted for using the equity method | € 49,087 | € 42,927 | € 34,663 |
Other securities and financial assets | 10,447 | 11,582 | |
Total investments and other financial assets | € 59,534 | € 54,509 |
INVESTMENTS AND OTHER FINANCI_4
INVESTMENTS AND OTHER FINANCIAL ASSETS - Changes in Equity Method Investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change In Investments [Roll Forward] | ||
Balance at beginning of period | € 42,927 | € 34,663 |
Additions | 1,285 | |
Proportionate share of net profit for the period | 6,175 | 6,896 |
Proportionate share of remeasurement of defined benefit plans | (15) | 83 |
Balance at end of period | € 49,087 | € 42,927 |
INVESTMENTS AND OTHER FINANCI_5
INVESTMENTS AND OTHER FINANCIAL ASSETS - Financial Information Relating to FFS GmbH (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current assets [abstract] | ||||
Non-current assets | € 3,813,311 | € 3,499,786 | ||
Current assets [abstract] | ||||
Other current assets | 153,183 | 122,224 | ||
Cash and cash equivalents | 1,388,901 | 1,344,146 | € 1,362,406 | € 897,946 |
Total assets | 7,765,823 | 6,863,505 | ||
Equity and liabilities | ||||
Equity | 2,602,487 | 2,211,416 | 1,789,204 | € 1,487,288 |
Debt | 2,811,779 | 2,630,011 | ||
Other liabilities | 952,025 | 726,775 | ||
Total equity and liabilities | 7,765,823 | 6,863,505 | ||
Profit or loss [abstract] | ||||
Net revenues | 5,095,254 | 4,270,894 | 3,459,790 | |
Cost of sales | 2,648,953 | 2,080,613 | 1,686,324 | |
Selling, general and administrative costs | 427,974 | 348,024 | 336,126 | |
Other expenses/(income), net | 21,548 | 5,561 | 18,475 | |
Profit before taxes | 1,177,766 | 1,042,231 | 667,035 | |
Income tax expense | 238,472 | 209,095 | 58,155 | |
Net profit | 939,294 | 833,136 | 608,880 | |
Ferrari Financial Services GmbH | ||||
Non-current assets [abstract] | ||||
Non-current assets | 3,685 | 4,037 | ||
Current assets [abstract] | ||||
Receivables from financing activities | 1,037,350 | 908,362 | ||
Other current assets | 2,637 | 5,096 | ||
Cash and cash equivalents | 19,123 | 14,046 | ||
Total assets | 1,062,795 | 931,541 | ||
Equity and liabilities | ||||
Equity | 94,914 | 81,156 | ||
Debt | 868,652 | 763,563 | ||
Other liabilities | 99,229 | 86,822 | ||
Total equity and liabilities | 1,062,795 | 931,541 | ||
Profit or loss [abstract] | ||||
Net revenues | 52,100 | 46,103 | 37,764 | |
Cost of sales | 22,943 | 16,971 | 14,864 | |
Selling, general and administrative costs | 8,923 | 8,565 | 8,494 | |
Other expenses/(income), net | 1,116 | 2,730 | 1,213 | |
Profit before taxes | 19,118 | 17,837 | 13,193 | |
Income tax expense | 5,336 | 4,045 | 3,898 | |
Net profit | € 13,782 | € 13,792 | € 9,295 |
INVESTMENTS AND OTHER FINANCI_6
INVESTMENTS AND OTHER FINANCIAL ASSETS - Narrative (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Other securities and financial assets | € 10,447 | € 11,582 |
Liberty Media | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Other securities and financial assets | € 9,954 | € 10,559 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | |||
Raw materials | € 142,430 | € 99,382 | |
Semi-finished goods | 145,459 | 121,201 | |
Finished goods | 386,773 | 319,992 | |
Current inventories | 674,662 | 540,575 | |
Reconciliation of changes in other provisions [abstract] | |||
Balance at beginning of period | 150,868 | ||
Changes in other provisions [abstract] | |||
Provision | 79,855 | ||
Use and other changes | (42,973) | ||
Balance at end of period | 180,694 | 150,868 | |
Provisions for slow moving and obsolete inventories | |||
Reconciliation of changes in other provisions [abstract] | |||
Balance at beginning of period | 102,098 | 96,707 | |
Changes in other provisions [abstract] | |||
Provision | 18,021 | 9,392 | € 21,155 |
Use and other changes | (9,156) | (4,001) | |
Balance at end of period | € 110,963 | € 102,098 | € 96,707 |
CURRENT RECEIVABLES AND OTHER_3
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Summary of Current Receivables and Other Current Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade receivables | € 232,414 | € 185,000 |
Receivables from financing activities | 1,399,997 | 1,143,968 |
Current tax receivables | 16,054 | 14,306 |
Other current assets | 153,183 | 122,224 |
Total | € 1,801,648 | € 1,465,498 |
CURRENT RECEIVABLES AND OTHER_4
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Summary of Trade Receivables by Nature (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Trade receivables | € 232,414 | € 185,000 |
Dealers | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 85,696 | 58,446 |
Sponsorship and commercial activities | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 42,981 | 29,666 |
Brand activities | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 24,213 | 23,902 |
Stellantis Group companies | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 19,184 | 23,737 |
Other | ||
Disclosure of financial assets [line items] | ||
Trade receivables | € 60,340 | € 49,249 |
CURRENT RECEIVABLES AND OTHER_5
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Average contractual duration at inception of contracts | 67 months | 66 months |
Weighted average interest rate (percent) | 6.30% | 5.20% |
Payment Guarantee | ||
Disclosure of financial assets [line items] | ||
Guarantees through third parties | € 224,630 | € 226,878 |
Bottom of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 30 days | |
Bottom of range | Dealers | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 30 days | |
Top of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 40 days | |
Top of range | Dealers | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 40 days |
CURRENT RECEIVABLES AND OTHER_6
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Summary of Trade Receivables by Currency (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Trade receivables | € 232,414 | € 185,000 |
Euro | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 95,894 | 78,286 |
U.S. Dollar | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 108,369 | 84,590 |
Pound Sterling | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 8,178 | 3,908 |
Chinese Yuan | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 3,203 | 2,478 |
Japanese Yen | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 6,832 | 11,348 |
Other | ||
Disclosure of financial assets [line items] | ||
Trade receivables | € 9,938 | € 4,390 |
CURRENT RECEIVABLES AND OTHER_7
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Changes in the Allowance for Doubtful Accounts of Trade Receivables (Details) - Trade receivables - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
At January 1, | € 25,984 | € 28,312 |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Additional provisions | 3,844 | 2,094 |
Utilizations | (1,579) | (1,835) |
Releases | (2,522) | (2,741) |
Other changes | 73 | 154 |
At December 31, | € 25,800 | € 25,984 |
CURRENT RECEIVABLES AND OTHER_8
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Receivables from Financing Activities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Receivables from financing activities | € 1,399,997 | € 1,143,968 |
Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 1,390,956 | 1,132,979 |
Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | € 9,041 | € 10,989 |
CURRENT RECEIVABLES AND OTHER_9
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Changes in the Allowance for Doubtful Accounts of Receivables from Financing Activities (Details) - Loans to consumers - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
At January 1, | € 11,204 | € 13,195 |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Additional provisions | 3,064 | 2,737 |
Utilizations | (2,587) | (4,507) |
Releases | (2,470) | (1,270) |
Other changes | 739 | 1,049 |
At December 31, | € 9,950 | € 11,204 |
CURRENT RECEIVABLES AND OTHE_10
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Summary of Other Current Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Italian and foreign VAT credits | € 79,858 | € 61,278 |
Prepayments | 42,908 | 36,084 |
Other | 30,417 | 24,862 |
Total other current assets | € 153,183 | € 122,224 |
CURRENT RECEIVABLES AND OTHE_11
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS - Analysis of Receivables and Other Current Assets by Due Date (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Trade receivables | € 232,414 | € 185,000 |
Receivables from financing activities | 1,399,997 | 1,143,968 |
Current tax receivables | 16,054 | 14,306 |
Other current assets (excluding prepayments) | 110,276 | 86,140 |
Total | 1,758,741 | 1,429,414 |
Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 1,390,956 | 1,132,979 |
Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 9,041 | 10,989 |
Overdue | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 45,657 | 47,237 |
Receivables from financing activities | 62,779 | 52,733 |
Current tax receivables | 0 | 0 |
Other current assets (excluding prepayments) | 0 | 570 |
Total | 108,436 | 100,540 |
Overdue | Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 62,779 | 52,733 |
Overdue | Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 0 | 0 |
Due within one year | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 186,757 | 137,694 |
Receivables from financing activities | 208,407 | 197,207 |
Current tax receivables | 16,054 | 14,306 |
Other current assets (excluding prepayments) | 110,276 | 84,417 |
Total | 521,494 | 433,624 |
Due within one year | Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 207,186 | 196,018 |
Due within one year | Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 1,221 | 1,189 |
Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 0 | 70 |
Receivables from financing activities | 1,060,819 | 820,363 |
Current tax receivables | 0 | 0 |
Other current assets (excluding prepayments) | 0 | 998 |
Total | 1,060,819 | 821,431 |
Due between one and five years | Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 1,052,999 | 810,563 |
Due between one and five years | Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 7,821 | 9,800 |
Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 0 | 0 |
Receivables from financing activities | 67,992 | 73,665 |
Current tax receivables | 0 | 0 |
Other current assets (excluding prepayments) | 0 | 155 |
Total | 67,992 | 73,820 |
Due beyond five years | Client financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 67,992 | 73,665 |
Due beyond five years | Dealer financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | € 0 | € 0 |
CURRENT FINANCIAL ASSETS AND _3
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Current Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments [Abstract] | ||
Financial derivatives | € 80,233 | € 11,565 |
Other financial assets | 7,068 | 1,935 |
Current financial assets | € 87,301 | € 13,500 |
CURRENT FINANCIAL ASSETS AND _4
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Financial Derivatives (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | € 80,233 | € 11,565 |
Negative fair value | (19,993) | (36,520) |
Cash flow hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 78,046 | 10,672 |
Negative fair value | (17,748) | (36,135) |
Currency risk | Other foreign exchange derivative | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 2,187 | 893 |
Negative fair value | (2,245) | (385) |
Currency risk | Cash flow hedges | Forward contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 41,270 | 4,437 |
Negative fair value | (16,976) | (34,973) |
Commodity price risk | Cash flow hedges | Commodities contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 5 | 182 |
Negative fair value | (772) | (1,162) |
Interest rate risk | Cash flow hedges | Interest rate cap contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 36,771 | 6,053 |
Negative fair value | € 0 | € 0 |
CURRENT FINANCIAL ASSETS AND _5
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Analysis of Foreign Currency Derivatives (Details) - Currency risk - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | € 3,198,915 | € 2,486,880 |
Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | 60,240 | |
Derivative financial assets | (24,955) | |
U.S. Dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 2,385,494 | 1,773,022 |
U.S. Dollar | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | 49,466 | |
Derivative financial assets | (17,588) | |
Pound Sterling | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 121,881 | 154,353 |
Pound Sterling | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | 2,811 | |
Derivative financial assets | (2,343) | |
Japanese Yen | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 275,700 | 282,482 |
Japanese Yen | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | 2,711 | 116 |
Swiss Franc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 108,459 | 76,953 |
Swiss Franc | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | (991) | (2,754) |
Chinese Yuan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 176,062 | 91,248 |
Chinese Yuan | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | 2,702 | |
Derivative financial assets | (1,125) | |
Other | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional Amount | 131,319 | 108,822 |
Other | Fair Value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | € 3,541 | |
Derivative financial assets | € (1,261) |
CURRENT FINANCIAL ASSETS AND _6
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Reclassified Gains and Losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Net revenues/(costs) | € (75,749) | € 7,275 | € 19,557 |
Income tax (expense)/benefit | 21,134 | (2,030) | (5,456) |
Total recognized in the consolidated income statement | (54,615) | 5,245 | 14,101 |
Net revenues/(costs) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net revenues/(costs) | € (75,749) | € 7,275 | € 19,557 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) € / shares in Units, € in Thousands | 12 Months Ended | |||||||
Apr. 13, 2022 € / shares | Apr. 15, 2021 EUR (€) € / shares | Apr. 16, 2020 EUR (€) € / shares | Dec. 31, 2022 EUR (€) vote € / shares shares | Dec. 31, 2021 EUR (€) € / shares shares | Dec. 31, 2020 EUR (€) | Mar. 31, 2022 shares | Dec. 31, 2019 EUR (€) | |
Disclosure of reserves within equity [line items] | ||||||||
Equity | € 2,602,487 | € 2,211,416 | € 1,789,204 | € 1,487,288 | ||||
Number of votes held for each common share under loyalty voting structure | vote | 2 | |||||||
Required holding period of special voting shares in order to participate in program | 3 years | |||||||
Number of votes that can be exercised for each voting share | vote | 1 | |||||||
Share premium reserve | € 5,768,544 | 5,768,544 | ||||||
Legal reserve | 19 | 93 | ||||||
Reserve of share-based payments | 28,574 | 28,379 | ||||||
Cash distribution paid (in Euro per share) | € / shares | € 1.362 | € 0.867 | € 1.13 | |||||
Cash distribution of reserves | € 160,272 | € 208,765 | 249,522 | |||||
Dividends paid to equity holders of parent, classified as financing activities | € 249,522 | € 160,101 | 208,100 | |||||
Common Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 193,923,499 | 193,923,499 | 122,125 | |||||
Special Voting Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 63,349,112 | 63,349,112 | ||||||
Share capital | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Equity | € 2,573 | € 2,573 | € 2,573 | |||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | € 0.01 | ||||||
Treasury shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Shares held by company, percentage | 4.65% | 3.92% | ||||||
Treasury reserve | € 1,244,045 | € 847,525 | ||||||
Treasury shares | Common Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 11,970,001 | 10,080,103 | ||||||
Treasury shares | Special Voting Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 5,199 | 4,190 |
EQUITY - Changes in Outstanding
EQUITY - Changes in Outstanding Shares (Details) - EUR (€) € in Thousands | 12 Months Ended | |||||||
Dec. 02, 2022 | May 25, 2022 | Mar. 16, 2022 | Mar. 17, 2021 | Mar. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Gains/(Losses) on remeasurement of defined benefit plans | € 1,605 | € (463) | € 34 | |||||
FFS | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Gains/(Losses) on remeasurement of defined benefit plans | € (15) | € 83 | € (4) | |||||
Total | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Balance at January 1, (in shares) | 247,188,318 | 248,094,812 | ||||||
Balance at December 31, (in shares) | 245,297,411 | 247,188,318 | 248,094,812 | |||||
Common Shares | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Balance at January 1, (in shares) | 183,843,396 | 184,747,890 | ||||||
Shares assigned (repurchased) and other changes (in shares) | (1,966,816) | (1,167,592) | ||||||
Balance at December 31, (in shares) | 181,953,498 | 183,843,396 | 184,747,890 | |||||
Special Voting Shares | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Balance at January 1, (in shares) | 63,344,922 | 63,346,922 | ||||||
Shares assigned (repurchased) and other changes (in shares) | (1,009) | (2,000) | ||||||
Balance at December 31, (in shares) | 63,343,913 | 63,344,922 | 63,346,922 | |||||
PSU and RSU Awards Under Equity Incentive Plan | Common Shares | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Shares assigned (repurchased) and other changes (in shares) | 76,918 | 263,098 | ||||||
Share Repurchase Program | Common Shares | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Consideration paid to repurchase shares | € 384,869 | € 231,024 | ||||||
2017 Equity Incentive Plan | Common Shares | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Shares assigned (repurchased) and other changes (in shares) | 11,218 | 6,643 | 122,125 | (93,473) | 356,571 | |||
Consideration paid to repurchase shares | € 15,432 | |||||||
2017 Equity Incentive Plan | Common Shares | Group Of Employees, Sell To Cover | ||||||||
Outstanding Common Shares and Special Voting Shares Activity [Roll Forward] | ||||||||
Shares assigned (repurchased) and other changes (in shares) | (3,366) | (3,185) | (56,517) | |||||
Consideration paid to repurchase shares | € 726 | € 562 | € 10,365 |
EQUITY - Other Comprehensive In
EQUITY - Other Comprehensive Income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(Losses) on remeasurement of defined benefit plans | € 1,605 | € (463) | € 34 |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | 1,605 | (463) | 34 |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(Losses) on cash flow hedging instruments arising during the period | 17,149 | (56,855) | 59,666 |
Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement | 75,749 | (7,275) | (19,557) |
Gains/(Losses) on cash flow hedging instruments | 92,898 | (64,130) | 40,109 |
Exchange differences on translating foreign operations | 9,798 | 14,229 | (11,731) |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 102,696 | (49,901) | 28,378 |
Total other comprehensive income/(loss) | 104,301 | (50,364) | 28,412 |
Related tax impact | (25,002) | 18,070 | (11,290) |
Total other comprehensive income/(loss), net of tax | 79,299 | (32,294) | 17,122 |
FFS | |||
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(Losses) on remeasurement of defined benefit plans | € (15) | € 83 | € (4) |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
Ownership interest (percent) | 49.90% |
EQUITY - Tax Effect Relating to
EQUITY - Tax Effect Relating to Other Comprehensive Income (Loss) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |||
(Losses)/Gains on remeasurement of defined benefit plans, before tax | € 1,605 | € (463) | € 34 |
(Losses)/Gains on remeasurement of defined benefit plans, tax | (376) | 110 | 1 |
(Losses)/Gains on remeasurement of defined benefit plans, net of tax | 1,229 | (353) | 35 |
(Losses)/Gains on cash flow hedging instruments, before tax | 92,898 | (64,130) | 40,109 |
(Losses)/Gains on cash flow hedging instruments, tax | (24,626) | 17,960 | (11,291) |
(Losses)/Gains on cash flow hedging instruments, net of tax | 68,272 | (46,170) | 28,818 |
Exchange differences on translating foreign operations, before tax | 9,798 | 14,229 | (11,731) |
Exchange gains on translating foreign operations, tax | 0 | 0 | 0 |
Exchange gains on translating foreign operations, net of tax | 9,798 | 14,229 | (11,731) |
Total other comprehensive income/(loss) | 104,301 | (50,364) | 28,412 |
Total other comprehensive (loss)/income, tax | (25,002) | 18,070 | (11,290) |
Total other comprehensive income/(loss), net of tax | € 79,299 | € (32,294) | € 17,122 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 shares | Mar. 31, 2022 shares | Dec. 31, 2022 EUR (€) shares company | Dec. 31, 2021 EUR (€) shares | Dec. 31, 2020 EUR (€) shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of outstanding awards that had vested (in shares) | 122,125 | 356,567 | |||
Vesting percentages (percent) | 10,000% | ||||
Number of other equity instruments outstanding in share-based payment arrangement (shares) | 227,394 | 275,833 | 573,902 | ||
Expense from share-based payment transactions with employees | € | € 16,172,000 | € 11,689,000 | € 17,401,000 | ||
Unrecognized compensation expense | € | 16,069,000 | ||||
Share-based compensation expense from commercial agreements with certain suppliers | € | € 4,688,000 | € 2,206,000 | |||
Common Shares | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares issued (in shares) | 122,125 | 193,923,499 | 193,923,499 | ||
PSU's, 2019 - 2021 Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of outstanding awards that had vested (in shares) | 68,013 | ||||
RSU's, 2019- 2021 Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of outstanding awards that had vested (in shares) | 54,112 | ||||
Equity Incentive Plan 2020 - 2022, Performance Stock Units And Restricted Stock Units | Executive Chairman, Former CEO, Members of the FLT and Other Key Employees | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Performance period | 3 years | ||||
PSU's, 2020 - 2022 Plan | Potential ordinary share transactions | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentages (percent) | 95% | ||||
Number of other equity instruments expected to vest in share-based payment arrangement (in shares) | 36,090 | ||||
PSU's, 2020 - 2022 Plan | Achievement of target TSR ranking | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 50% | ||||
Number of companies in industry specific peer group | company | 8 | ||||
PSU's, 2020 - 2022 Plan | Achievement of target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 30% | ||||
PSU's, 2020 - 2022 Plan | Achievement of technological innovation and new model development | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 20% | ||||
PSU's, 2020 - 2022 Plan | Executive Chairman, Former CEO, Members of the FLT and Other Key Employees | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 60,000 | ||||
RSU's, 2020 - 2022 Plan | Potential ordinary share transactions | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of other equity instruments expected to vest in share-based payment arrangement (in shares) | 32,339 | ||||
RSU's, 2020 - 2022 Plan | Executive Chairman, Former CEO, Members of the FLT and Other Key Employees | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 48,000 | ||||
Equity Incentive Plan 2021 - 2023, Performance Stock Units and Restricted Stock Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Performance period | 3 years | ||||
Equity Incentive Plan 2021 - 2023, PSUs | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 50,000 | ||||
Equity Incentive Plan 2021 - 2023, PSUs | Achievement of target TSR ranking | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 50% | ||||
Number of companies in industry specific peer group | company | 8 | ||||
Equity Incentive Plan 2021 - 2023, PSUs | Achievement of target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 30% | ||||
Equity Incentive Plan 2021 - 2023, PSUs | Achievement of technological innovation and new model development | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 20% | ||||
Equity Incentive Plan 2021 - 2023, RSUs | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 41,000 | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units And Restricted Stock Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Performance period | 3 years | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 72,000 | ||||
Fair value of awards (in Euro per share) | € | € 200.13 | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | Achievement of target TSR ranking | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 40% | ||||
Number of companies in industry specific peer group | company | 11 | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | Achievement of target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 40% | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | Achievement of ESG target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 2,000% | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | Achievement of ESG carbon emission target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 5,000% | ||||
Equity Incentive Plan 2022 - 2024, Performance Stock Units | Achievement ESG maintenance equity salary certification target | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Percentage of target awards that vest (percent) | 5,000% | ||||
Equity Incentive Plan 2022 - 2024, Restricted Stock Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of instruments granted in share-based payment arrangement (shares) | 26,000 | ||||
Fair value of awards (in Euro per share) | € | € 201.2 | ||||
Other Share Awards | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of outstanding awards that had vested (in shares) | 6,643 | ||||
Number of instruments granted in share-based payment arrangement (shares) | 15,271 | ||||
Number of other equity instruments outstanding in share-based payment arrangement (shares) | 6,628 | ||||
Fair value of awards (in Euro per share) | € | € 203 |
SHARE-BASED COMPENSATION - Targ
SHARE-BASED COMPENSATION - Target Vesting Percentages Based On TSR Rankings (Details) - Equity Incentive Plan 2021 - 2023, PSUs | 12 Months Ended |
Dec. 31, 2022 | |
Ferrari TSR Ranking 1 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 175% |
Ferrari TSR Ranking 2 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 150% |
Ferrari TSR Ranking 3 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 125% |
Ferrari TSR Ranking 4 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 100% |
Ferrari TSR Ranking 5 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 75% |
Ferrari TSR Ranking 6 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 50% |
Ferrari TSR Ranking >6 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 0% |
SHARE-BASED COMPENSATION - Vest
SHARE-BASED COMPENSATION - Vesting Percentages Based on EBITA Target (Details) - Equity Incentive Plan 2021 - 2023, PSUs | 12 Months Ended |
Dec. 31, 2022 | |
+15% | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 175% |
+10% | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 150% |
+5% | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 125% |
Business Plan Target | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 10,000% |
-5% | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 75% |
Less than -5% | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of target awards that vest (percent) | 0% |
SHARE-BASED COMPENSATION - Key
SHARE-BASED COMPENSATION - Key Assumptions Used to Calculate Grant-date Fair Values (Details) | 12 Months Ended |
Dec. 31, 2022 EUR (€) € / shares | |
PSU's, 2020 - 2022 Plan | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant date share price (in Euros per share) | € / shares | € 205.2 |
Expected volatility | 27.75% |
Dividend yield | 0.75% |
Risk-free rate | 0% |
PSUs | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of awards (in Euro per share) | € 200.13 |
RSUs | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of awards (in Euro per share) | 201.2 |
Other Share Awards | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of awards (in Euro per share) | € 203 |
SHARE-BASED COMPENSATION - Outs
SHARE-BASED COMPENSATION - Outstanding Number of PSUs and RSUs (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement Activity [Roll Forward] | ||
Number of other equity instruments outstanding at beginning of period (shares) | 275,833 | 573,902 |
Granted (shares) | 98,947 | 91,321 |
Forfeited (shares) | (25,261) | (32,823) |
Vested (shares) | (122,125) | (356,567) |
Number of other equity instruments outstanding at end of period (shares) | 227,394 | 275,833 |
Outstanding PSU Awards | ||
Share-Based Payment Arrangement Activity [Roll Forward] | ||
Number of other equity instruments outstanding at beginning of period (shares) | 152,172 | 414,839 |
Granted (shares) | 72,373 | 49,861 |
Forfeited (shares) | (16,327) | (19,775) |
Vested (shares) | (68,013) | (292,753) |
Number of other equity instruments outstanding at end of period (shares) | 140,205 | 152,172 |
Outstanding RSU Awards | ||
Share-Based Payment Arrangement Activity [Roll Forward] | ||
Number of other equity instruments outstanding at beginning of period (shares) | 123,661 | 159,063 |
Granted (shares) | 26,574 | 41,460 |
Forfeited (shares) | (8,934) | (13,048) |
Vested (shares) | (54,112) | (63,814) |
Number of other equity instruments outstanding at end of period (shares) | 87,189 | 123,661 |
EMPLOYEE BENEFITS - Group's Pro
EMPLOYEE BENEFITS - Group's Provision for Employee Benefits (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 15,142 | € 18,430 |
Total provisions for employee benefits | 110,807 | 101,200 |
Other provisions for employees | ||
Disclosure of defined benefit plans [line items] | ||
Total provisions for employee benefits | 95,665 | 82,770 |
Italian employee severance indemnity (TFR) | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 15,142 | € 18,430 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit expense, defined contribution plans | € 16,944 | € 15,729 | € 15,727 |
Employee benefits | 110,807 | 101,200 | |
Short-term bonus benefit provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | 92,463 | 79,273 | |
Jubilee benefits provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 3,202 | € 3,497 | |
Years of service achieved | 30 years | ||
Italian employee severance indemnity (TFR) | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial assumption of discount rates (percent) | 3.80% | 0.90% | 40% |
Average duration of benefit obligation | 7 years |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in Defined Benefit Obligation (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | € 18,430 | € 19,930 |
Recognized in the consolidated income statement | 22 | 6 |
Recognized in other comprehensive loss/ (income) | (1,605) | 463 |
Other | (1,705) | (1,969) |
Benefits paid | (1,731) | (2,232) |
Other changes | 26 | 263 |
Net defined benefit obligation | 15,142 | 18,430 |
Italian employee severance indemnity (TFR) | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 18,430 | 19,825 |
Recognized in the consolidated income statement | 22 | 6 |
Recognized in other comprehensive loss/ (income) | (1,605) | 463 |
Other | (1,705) | (1,864) |
Benefits paid | (1,731) | (2,127) |
Other changes | 26 | 263 |
Net defined benefit obligation | 15,142 | 18,430 |
Pension plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 0 | 105 |
Recognized in the consolidated income statement | 0 | 0 |
Recognized in other comprehensive loss/ (income) | 0 | 0 |
Other | 0 | (105) |
Benefits paid | 0 | (105) |
Other changes | 0 | 0 |
Net defined benefit obligation | € 0 | € 0 |
EMPLOYEE BENEFITS - Amounts Rec
EMPLOYEE BENEFITS - Amounts Recognized in Consolidated income Statement (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | € 0 | € 6 | € 0 |
Interest expense | 22 | 0 | 25 |
Past service adjustments | 0 | 0 | 0 |
Total recognized in the consolidated income statement | 22 | 6 | 25 |
TFR | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 0 | 6 | 0 |
Interest expense | 22 | 0 | 25 |
Past service adjustments | 0 | 0 | 0 |
Total recognized in the consolidated income statement | 22 | 6 | 25 |
Pension plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Past service adjustments | 0 | 0 | 0 |
Total recognized in the consolidated income statement | € 0 | € 0 | € 0 |
EMPLOYEE BENEFITS - Expected Be
EMPLOYEE BENEFITS - Expected Benefit Payments (Details) - TFR € in Thousands | Dec. 31, 2022 EUR (€) |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 13,585 |
2023 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,740 |
2024 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,448 |
2025 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,458 |
2026 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,402 |
2027 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,518 |
2028 - 2032 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 6,019 |
EMPLOYEE BENEFITS - Sensitivity
EMPLOYEE BENEFITS - Sensitivity of Defined Benefit Obligation (Details) - Impact on defined benefit obligation - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Changes in assumption of +1% discount rate | € (904) | € (1,321) |
Changes in assumption of -1% discount rate | € 1,013 | € 1,507 |
PROVISIONS - Changes in provisi
PROVISIONS - Changes in provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in provisions [Roll Forward] | |||
Balance at beginning of period | € 150,868 | ||
Provision | 79,855 | ||
Use and other changes | (42,973) | ||
Releases | (7,524) | ||
Translation differences | 468 | ||
Reclassification and other movements | 0 | ||
Balance at end of period | 180,694 | € 150,868 | |
Warranty and recall campaigns provision | |||
Movement in provisions [Roll Forward] | |||
Balance at beginning of period | 108,767 | ||
Provision | 61,076 | ||
Use and other changes | (39,958) | ||
Releases | (3,854) | ||
Translation differences | 38 | ||
Reclassification and other movements | 0 | ||
Balance at end of period | 126,069 | 108,767 | |
Legal proceedings and disputes | |||
Movement in provisions [Roll Forward] | |||
Balance at beginning of period | 13,701 | ||
Provision | 1,601 | ||
Use and other changes | (1,213) | ||
Releases | (1,202) | ||
Translation differences | 325 | ||
Reclassification and other movements | (1,150) | ||
Balance at end of period | 12,062 | 13,701 | |
Environmental and other risks | |||
Movement in provisions [Roll Forward] | |||
Balance at beginning of period | 28,400 | ||
Provision | 17,178 | 12,306 | € 7,526 |
Use and other changes | (1,802) | ||
Releases | (2,468) | ||
Translation differences | 105 | ||
Reclassification and other movements | 1,150 | ||
Balance at end of period | € 42,563 | € 28,400 |
PROVISIONS - Narrative (Details
PROVISIONS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Provision | € 79,855 | |
Provision for estimate of future costs | € 180,694 | € 150,868 |
PROVISIONS - Environmental and
PROVISIONS - Environmental and Other Risks (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | |||
Provision | € 79,855 | ||
Environmental and other risks | |||
Disclosure of other provisions [line items] | |||
Provision | 17,178 | € 12,306 | € 7,526 |
Cost of sales | Environmental and other risks | |||
Disclosure of other provisions [line items] | |||
Provision | 15,616 | 10,562 | 6,352 |
Selling, general and administrative costs | Environmental and other risks | |||
Disclosure of other provisions [line items] | |||
Provision | € 1,562 | € 1,744 | € 1,174 |
DEBT - Schedule of Borrowings (
DEBT - Schedule of Borrowings (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2022 EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | € 2,630,011 |
Proceeds from borrowings | 262,289 |
Repayments of borrowings | (167,539) |
Interest accrued/(paid) and other | 22,911 |
Translation differences | 64,107 |
Total debt, ending balance | 2,811,779 |
Bonds and notes | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 1,487,110 |
Proceeds from borrowings | 0 |
Repayments of borrowings | 0 |
Interest accrued/(paid) and other | 3,209 |
Translation differences | 0 |
Total debt, ending balance | 1,490,319 |
Asset-backed financing (Securitizations) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 900,213 |
Proceeds from borrowings | 218,924 |
Repayments of borrowings | (72,824) |
Interest accrued/(paid) and other | 1,733 |
Translation differences | 57,379 |
Total debt, ending balance | 1,105,425 |
Total borrowings from banks and other financial institutions | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 154,419 |
Proceeds from borrowings | 8,909 |
Repayments of borrowings | (55,000) |
Interest accrued/(paid) and other | 560 |
Translation differences | 4,277 |
Total debt, ending balance | 113,165 |
Lease liabilities | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 56,210 |
Proceeds from borrowings | 0 |
Repayments of borrowings | (16,500) |
Interest accrued/(paid) and other | 17,409 |
Translation differences | 304 |
Total debt, ending balance | 57,423 |
Other debt | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 32,059 |
Proceeds from borrowings | 34,456 |
Repayments of borrowings | (23,215) |
Interest accrued/(paid) and other | 0 |
Translation differences | 2,147 |
Total debt, ending balance | € 45,447 |
DEBT - Borrowings by Nature and
DEBT - Borrowings by Nature and Maturity (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Total debt | € 2,811,779 | € 2,630,011 |
Bonds and notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 1,490,319 | 1,487,110 |
Asset-backed financing (Securitizations) | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 1,105,425 | 900,213 |
Borrowings from banks and other financial institutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 113,165 | 154,419 |
Lease liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 57,423 | 56,210 |
Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 45,447 | 32,059 |
Due within one year | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 979,393 | 516,119 |
Due within one year | Bonds and notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 394,628 | 9,239 |
Due within one year | Asset-backed financing (Securitizations) | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 422,736 | 343,119 |
Due within one year | Borrowings from banks and other financial institutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 100,665 | 116,919 |
Due within one year | Lease liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 15,917 | 14,783 |
Due within one year | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 45,447 | 32,059 |
Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 1,370,941 | 1,595,198 |
Due between one and five years | Bonds and notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 646,306 | 1,028,686 |
Due between one and five years | Asset-backed financing (Securitizations) | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 682,689 | 499,280 |
Due between one and five years | Borrowings from banks and other financial institutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 12,500 | 37,500 |
Due between one and five years | Lease liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 29,446 | 29,732 |
Due between one and five years | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 461,445 | 518,694 |
Due beyond five years | Bonds and notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 449,385 | 449,185 |
Due beyond five years | Asset-backed financing (Securitizations) | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 57,814 |
Due beyond five years | Borrowings from banks and other financial institutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due beyond five years | Lease liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 12,060 | 11,695 |
Due beyond five years | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | € 0 | € 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - EUR (€) | Jul. 29, 2021 | May 27, 2020 | Jul. 31, 2019 | Jul. 16, 2019 | Mar. 16, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2015 |
Disclosure of detailed information about borrowings [line items] | ||||||||
Debt | € 2,811,779,000 | € 2,630,011,000 | ||||||
Funding Limit | 669,000,000 | 676,000,000 | ||||||
Cash Collected From Settlements of Receivables or Collateral | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Restricted cash received from settlement of receivables or pledged lines of credit | 44,085,000 | 47,742,000 | ||||||
2023 Bond | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate (percent) | 1.50% | |||||||
Principal amount of borrowings | € 500,000,000 | |||||||
Borrowings, issue price (percent) | 98.977% | |||||||
Proceeds from bonds | € 490,729,000 | |||||||
Borrowings, yield to maturity (percent) | 1.656% | |||||||
Voluntary prepayments made | € 115,395,000 | |||||||
Debt | 388,947,000 | 387,872,000 | ||||||
Accrued interest | 4,567,000 | 4,567,000 | ||||||
Borrowings from banks and other financial institutions | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Principal amount of borrowings | € 500,000,000 | |||||||
Debt | 113,165,000 | 154,419,000 | ||||||
2025 Bond | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate (percent) | 1.50% | |||||||
Principal amount of borrowings | € 650,000,000 | |||||||
Borrowings, issue price (percent) | 98.898% | |||||||
Proceeds from bonds | € 640,073,000 | |||||||
Borrowings, yield to maturity (percent) | 1.732% | |||||||
Debt | 650,923,000 | 648,984,000 | ||||||
Accrued interest | 5,818,000 | 5,850,000 | ||||||
2029 Notes and 2031 Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Proceeds from bonds | € 298,316,000 | |||||||
2029 Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate (percent) | 1.12% | |||||||
Principal amount of borrowings | € 150,000,000 | |||||||
Debt | 150,135,000 | 150,052,000 | ||||||
Accrued interest | 700,000 | 700,000 | ||||||
2031 Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate (percent) | 1.27% | |||||||
Debt | 150,178,000 | 150,111,000 | ||||||
Accrued interest | 794,000 | 794,000 | ||||||
2032 Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings, interest rate (percent) | 0.91% | |||||||
Principal amount of borrowings | € 150,000,000 | |||||||
Proceeds from bonds | € 149,495,000 | |||||||
Debt | 150,136,000 | 150,091,000 | ||||||
Accrued interest | 577,000 | 576,000 | ||||||
Lease liabilities | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Debt | € 57,423,000 | € 56,210,000 |
DEBT - Revolving Securitization
DEBT - Revolving Securitization Programs (Details) € in Thousands, $ in Millions | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Funding Limit | € | € 669,000 | € 676,000 | ||
Amount Outstanding | € | 2,811,779 | 2,630,011 | ||
Asset-backed financing (Securitizations) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Amount Outstanding | € | € 1,105,425 | € 900,213 | ||
FFS Inc. | Asset-backed financing (Securitizations) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Funding Limit | $ 1,300 | |||
Amount Outstanding | 1,179 | $ 1,020 | ||
FFS Inc. | Asset-backed financing (Securitizations) | Pledged retail financial receivables | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Funding Limit | 975 | |||
Amount Outstanding | $ 896 | 775 | ||
FFS Inc. | Asset-backed financing (Securitizations) | Pledged retail financial receivables | LIBOR | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, adjustment to interest rate basis | 0.70% | 0.70% | ||
FFS Inc. | Asset-backed financing (Securitizations) | Pledged leasing financial receivables | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Funding Limit | $ 325 | |||
Amount Outstanding | $ 283 | $ 245 | ||
FFS Inc. | Asset-backed financing (Securitizations) | Pledged leasing financial receivables | Secured Overnight Financing Rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, adjustment to interest rate basis | 0.65% | 0.65% |
DEBT - Borrowings from Banks an
DEBT - Borrowings from Banks and Other Financial Institutions (Details) € in Thousands, $ in Thousands | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Debt | € 2,811,779 | € 2,630,011 | ||
Total borrowings from banks and other financial institutions | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt | 113,165 | 154,419 | ||
June 2024 | Ferrari S.p.A. | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt | 37,500 | 62,500 | ||
April 2023 | Ferrari Financial Services, Inc. | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt | $ | $ 75,665 | $ 61,919 | ||
January 2022 | Ferrari S.p.A. | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt | € 0 | € 30,000 |
OTHER LIABILITIES - Analysis of
OTHER LIABILITIES - Analysis of Other Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Deferred income | € 270,353 | € 256,206 |
Advances and security deposits | 451,166 | 240,696 |
Accrued expenses | 98,535 | 80,787 |
Payables to personnel | 55,789 | 53,712 |
Social security payables | 26,498 | 24,660 |
Other | 49,684 | 70,714 |
Total other liabilities | € 952,025 | € 726,775 |
OTHER LIABILITIES - Narrative (
OTHER LIABILITIES - Narrative (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Deferred income | € 270,353 | € 256,206 |
Maintenance and power warranty programs | ||
Disaggregation of Revenue [Line Items] | ||
Deferred income | 239,879 | € 218,982 |
Maintenance and power warranty programs | 2023 | ||
Disaggregation of Revenue [Line Items] | ||
Expected amounts to be recognized in revenue | 61,000 | |
Maintenance and power warranty programs | 2024 | ||
Disaggregation of Revenue [Line Items] | ||
Expected amounts to be recognized in revenue | 56,000 | |
Maintenance and power warranty programs | 2025 | ||
Disaggregation of Revenue [Line Items] | ||
Expected amounts to be recognized in revenue | 40,000 | |
Maintenance and power warranty programs | Afterwards | ||
Disaggregation of Revenue [Line Items] | ||
Expected amounts to be recognized in revenue | € 83,000 |
OTHER LIABILITIES - Contract Li
OTHER LIABILITIES - Contract Liabilities (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2022 EUR (€) | |
Maintenance and power warranty programs | |
Movement in contract liabilities [Roll Forward] | |
At January 1, 2022 | € 218,982 |
Additional amounts arising during the period | 100,710 |
Amounts recognized within revenue | (79,593) |
Other changes | (220) |
At December 31, 2022 | 239,879 |
Advances from customers | |
Movement in contract liabilities [Roll Forward] | |
At January 1, 2022 | 236,516 |
Additional amounts arising during the period | 761,714 |
Amounts recognized within revenue | (551,885) |
Other changes | 49 |
At December 31, 2022 | € 446,394 |
TRADE PAYABLES (Details)
TRADE PAYABLES (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | € 902,968 | € 797,832 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | € 7,765,823 | € 6,863,505 |
Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 90,187 | 22,124 |
Liabilities | 19,993 | 36,520 |
Recurring fair value measurement | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 19,993 | 36,520 |
Recurring fair value measurement | Investments and other financial assets - Liberty Media Shares | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,954 | 10,559 |
Recurring fair value measurement | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 80,233 | 11,565 |
Recurring fair value measurement | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,954 | 10,559 |
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Investments and other financial assets - Liberty Media Shares | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,954 | 10,559 |
Recurring fair value measurement | Level 1 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 80,233 | 11,565 |
Liabilities | 19,993 | 36,520 |
Recurring fair value measurement | Level 2 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 19,993 | 36,520 |
Recurring fair value measurement | Level 2 | Investments and other financial assets - Liberty Media Shares | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 80,233 | 11,565 |
Recurring fair value measurement | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 3 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 3 | Investments and other financial assets - Liberty Media Shares | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 3 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | € 0 | € 0 |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying Amount and Fair Value for Categories of Financial Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | € 1,399,997 | € 1,143,968 |
Financial assets, at fair value | 1,399,997 | 1,143,968 |
Debt | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at carrying amount | 2,811,779 | 2,630,011 |
Financial liabilities, at fair value | 2,770,633 | 2,656,159 |
Receivables from financing activities | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 1,399,997 | 1,143,968 |
Financial assets, at fair value | 1,399,997 | 1,143,968 |
Client financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 1,390,956 | 1,132,979 |
Financial assets, at fair value | 1,390,956 | 1,132,979 |
Dealer financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 9,041 | 10,989 |
Financial assets, at fair value | € 9,041 | € 10,989 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Party Transactions Recognized in the Consolidated Income Statement and Non-Financial Assets and Liabilities Originating from Related Party Transactions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Net revenues | € 5,095,254 | € 4,270,894 | € 3,459,790 |
Costs | 3,098,475 | 2,434,198 | 2,040,925 |
Net financial expenses | 49,616 | 33,257 | 49,092 |
Trade receivables | 232,414 | 185,000 | |
Trade payables | 902,968 | 797,832 | |
Other current assets | 153,183 | 122,224 | |
Other liabilities | 952,025 | 726,775 | |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 93,283 | 131,958 | 110,190 |
Costs | 39,532 | 43,288 | 37,003 |
Net financial expenses | 2,697 | 2,106 | 2,219 |
Trade receivables | 19,184 | 24,263 | |
Trade payables | 15,180 | 13,621 | |
Other current assets | 678 | 1,127 | |
Other liabilities | 3,886 | 8,598 | |
Total Stellantis Group companies | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 89,913 | 130,882 | 109,491 |
Costs | 23,800 | 27,131 | 22,361 |
Net financial expenses | 2,696 | 2,103 | 2,207 |
Trade receivables | 18,168 | 23,737 | |
Trade payables | 11,421 | 10,344 | |
Other current assets | 111 | 121 | |
Other liabilities | 3,309 | 7,528 | |
Maserati | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 78,946 | 119,083 | 100,389 |
Costs | 2,989 | 2,428 | 2,981 |
Net financial expenses | 0 | 0 | 0 |
Trade receivables | 17,458 | 23,267 | |
Trade payables | 4,806 | 3,994 | |
Other current assets | 0 | 0 | |
Other liabilities | 2,246 | 6,454 | |
FCA US LLC | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 14 | 0 | 0 |
Costs | 14,861 | 18,465 | 13,323 |
Net financial expenses | 0 | 0 | 0 |
Trade receivables | 10 | 0 | |
Trade payables | 4,637 | 3,275 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Other Stellantis Group companies | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 10,953 | 11,799 | 9,102 |
Costs | 5,950 | 6,238 | 6,057 |
Net financial expenses | 2,696 | 2,103 | 2,207 |
Trade receivables | 700 | 470 | |
Trade payables | 1,978 | 3,075 | |
Other current assets | 111 | 121 | |
Other liabilities | 1,063 | 1,074 | |
Exor Group companies (excluding the Stellantis Group) | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 282 | 281 | 150 |
Costs | 1,611 | 1,014 | 1,665 |
Net financial expenses | 0 | 1 | 2 |
Trade receivables | 343 | 382 | |
Trade payables | 418 | 1 | |
Other current assets | 68 | 8 | |
Other liabilities | 73 | 5 | |
Other related parties | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 3,088 | 795 | 549 |
Costs | 14,121 | 15,143 | 12,977 |
Net financial expenses | 1 | 2 | € 10 |
Trade receivables | 673 | 144 | |
Trade payables | 3,341 | 3,276 | |
Other current assets | 499 | 998 | |
Other liabilities | € 504 | € 1,065 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - EUR (€) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | ||||
Current financial assets | € 87,301,000 | € 13,500,000 | ||
Aggregate compensation | 33,935,000 | 18,728,000 | € 14,199,000 | |
Wages and salaries | 527,316,000 | 483,747,000 | 389,927,000 | |
Non-executive Directors | ||||
Disclosure of transactions between related parties [line items] | ||||
Compensation settled in treasury shares | 0 | 0 | 0 | |
Key management personnel of entity or parent | ||||
Disclosure of transactions between related parties [line items] | ||||
Compensation settled in treasury shares | 5,176,000 | 4,241,000 | 5,270,000 | |
Wages and salaries | 28,084,000 | 14,088,000 | 8,707,000 | |
Key management personnel compensation, other long-term employee benefits | 675,000 | 399,000 | ||
Percentage of salaries donated to help Company initiatives (percent) | 25% | |||
Related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Current financial assets | 4,364,000 | 0 | ||
Current financial liabilities | 429,000 | 0 | ||
Ferrari N.V. (Ferrari) | Directors of Ferrari N.V. | ||||
Disclosure of transactions between related parties [line items] | ||||
Aggregate compensation | 7,660,000 | 6,668,000 | 8,151,000 | |
Compensation for salary | 5,650,000 | 5,445,000 | 624,000 | |
Compensation settled in treasury shares | 1,780,000 | 1,223,000 | 7,527,000 | |
Key management personnel compensation, other long-term employee benefits | € 230,000 | € 0 | € 0 |
RELATED PARTY TRANSACTIONS - Fe
RELATED PARTY TRANSACTIONS - Fees of the Directors of the Company (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Aggregate compensation | € 33,935 | € 18,728 | € 14,199 |
Directors of Ferrari N.V. | Ferrari N.V. (Ferrari) | |||
Disclosure of transactions between related parties [line items] | |||
Aggregate compensation | € 7,660 | € 6,668 | € 8,151 |
COMMITMENTS - Arrangements with
COMMITMENTS - Arrangements with sponsors (Details) € in Thousands | Dec. 31, 2022 EUR (€) |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 70,720 |
Due within one year | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 54,964 |
Due between one and three years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 12,445 |
Due between three and five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 3,311 |
Due beyond five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 0 |
COMMITMENTS - Operating Leases
COMMITMENTS - Operating Leases (Details) € in Thousands | Dec. 31, 2022 EUR (€) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | € 60,624 |
Due within one year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 16,178 |
Due between one and three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 19,775 |
Due between three and five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 11,886 |
Due beyond five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | € 12,785 |
QUALITATIVE AND QUANTITATIVE _2
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of credit risk exposure [line items] | ||||
Exchange gain (loss) on translating foreign operations | € 9,798 | € 14,229 | € (11,731) | |
Group's gross debt that bears floating rates of interest (percent) | 42% | 37% | ||
Funding Limit | € 669,000 | € 676,000 | ||
Receivables from financing activities | 1,399,997 | 1,143,968 | ||
Trade receivables | € 232,414 | 185,000 | ||
Borrowings, decrease in basis points | 10 | |||
Overdue | ||||
Disclosure of credit risk exposure [line items] | ||||
Receivables from financing activities | € 62,779 | 52,733 | ||
Trade receivables | 45,657 | 47,237 | ||
Financial Assets Excluding Assets Measured At Fair Value | ||||
Disclosure of credit risk exposure [line items] | ||||
Exchange gain (loss) on translating foreign operations | (25,923) | (11,407) | (27,029) | |
Loans to consumers | ||||
Disclosure of credit risk exposure [line items] | ||||
Allowance for doubtful accounts | 9,950 | 11,204 | 13,195 | |
Trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Allowance for doubtful accounts | 25,800 | 25,984 | € 28,312 | |
U.S. Dollar | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables | 108,369 | 84,590 | ||
Pound Sterling | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables | € 8,178 | 3,908 | ||
Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Reasonably possible change in risk variable, percent | 10% | |||
Reasonably possible change in risk variable, impact on fair value of derivative financial instruments | € 174,550 | 98,165 | ||
Interest rate risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Reasonably possible change in risk variable, impact on pre-tax earnings | € 303 | € 486 | ||
Interest rate risk | Floating interest rate | ||||
Disclosure of credit risk exposure [line items] | ||||
Reasonably possible change in risk variable, percent | (0.10%) | |||
Revenue | Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure percent | 65% | 58% | 58% | |
Revenue | Currency risk | Bottom of range | ||||
Disclosure of credit risk exposure [line items] | ||||
Average risk exposure hedged (percent) | 90% | |||
Revenue | Currency risk | U.S. Dollar | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure percent | 52% | 51% | 53% | |
Revenue | Currency risk | Pound Sterling | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure percent | 10% | 10% | 10% |
ENTITY-WIDE DISCLOSURES - Net R
ENTITY-WIDE DISCLOSURES - Net Revenues by Geographic Location (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Location [Line Items] | |||
Total net revenues | € 5,095,254 | € 4,270,894 | € 3,459,790 |
Italy | |||
Entity Location [Line Items] | |||
Total net revenues | 379,898 | 409,992 | 322,573 |
Rest of EMEA | |||
Entity Location [Line Items] | |||
Total net revenues | 2,045,888 | 1,869,864 | 1,634,515 |
of which UK | |||
Entity Location [Line Items] | |||
Total net revenues | 536,280 | 457,060 | 484,701 |
of which Germany | |||
Entity Location [Line Items] | |||
Total net revenues | 430,380 | 367,087 | 280,191 |
Americas | |||
Entity Location [Line Items] | |||
Total net revenues | 1,407,790 | 1,097,904 | 883,228 |
of which United States of America | |||
Entity Location [Line Items] | |||
Total net revenues | 1,198,834 | 930,316 | 747,373 |
Mainland China, Hong Kong and Taiwan | |||
Entity Location [Line Items] | |||
Total net revenues | 621,407 | 332,971 | 191,907 |
Rest of APAC | |||
Entity Location [Line Items] | |||
Total net revenues | € 640,271 | € 560,163 | € 427,567 |
ENTITY-WIDE DISCLOSURES - Analy
ENTITY-WIDE DISCLOSURES - Analysis of Non-Current Assets other than Financial Instruments and Deferred Tax Assets by Geographic Location (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Entity Location [Line Items] | |||
Property, plant and equipment | € 1,457,825 | € 1,353,165 | € 1,226,630 |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 1,307,388 | 1,138,173 | € 979,290 |
Italy | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 1,418,846 | 1,322,257 | |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 1,307,127 | 1,137,910 | |
Rest of EMEA | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 4,830 | 5,597 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Americas | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 27,233 | 16,003 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Mainland China, Hong Kong and Taiwan | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 4,598 | 5,898 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Rest of APAC | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 2,318 | 3,410 | |
Goodwill | 0 | 0 | |
Intangible assets | € 261 | € 263 |
NOTES TO THE CASH FLOW STATEM_2
NOTES TO THE CASH FLOW STATEMENTS (Details) € in Thousands | Dec. 31, 2022 EUR (€) |
Statement of cash flows [abstract] | |
Time deposit | € 100,000 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - EUR (€) € / shares in Units, € in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 24, 2023 | Feb. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Shares | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Shares assigned (repurchased) and other changes (in shares) | (1,966,816) | (1,167,592) | ||
Common Shares | Share Repurchase Program | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Consideration paid to repurchase shares | € 384,869 | € 231,024 | ||
Potential ordinary share transactions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Dividends declared (in Euro per share) | € 1.810 | |||
Dividends declared, aggregate amount | € 329,000 | |||
Potential ordinary share transactions | Common Shares | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,156,504 | |||
Potential ordinary share transactions | Common Shares | Share Repurchase Program | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Shares assigned (repurchased) and other changes (in shares) | (186,503) | |||
Consideration paid to repurchase shares | € 42,100 |