Ferrari announces its final end of year results and sales and profits are all up, and looking good for the coming year.

• Total shipments reached 2,214 units, up 8% (+155 units)
• Net revenues grew 5.9% (+6.2% at constant currencies) to Euro 811 million
• Adjusted EBIT⁽¹⁾ of Euro 156 million, 310 bps margin increase
• Adjusted net profit⁽¹⁾ up 35% to Euro 104 million
• Net industrial debt^([1]) at Euro 763 million, better than March 2016

Adjusted EBIT(1)	Net profit
Volume increase of approx. 230 cars (excluding LaFerrari) thanks to the newly launched 488 GTB, 488 Spider, F12tdf and positive contribution from personalization	Net profit for Q2 was Euro 97 million up Euro 21 million (+29%) due to the combined effect of strong EBIT and lower tax rate vs. previous year partially offset by charges for Takata airbag inflator recalls
Negative mix impacted by LaFerrari, that finished its limited series run, and V8, slightly higher compared to the previous year, partially offset by the non-registered car FXX K and limited edition F60 America
Net industrial debt(1)	Confirming 2016 Outlook([2])
Net industrial debt(1) reduced to Euro 763 million, primarily due to strong industrial free cash flow(1)generation partially offset by cash distribution to holders of common shares and dividends paid to NCI	The Group guidance is confirmed as follows: Shipments: ~8,000 units including supercars Net revenues: > Euro 3 billion Adjusted EBITDA: ≥ Euro 800 million Net industrial debt([3]): ≤ Euro 730 million

Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results^([4]) for the second quarter and six months ended June 30, 2016.

Shipments

Shipments totaled 2,214 units in Q2 2016, up 8% from the previous year. 

This performance was driven by a 16% increase in sales of our 8 cylinder models (V8), led by the success of the two newly launched models: the 488 GTB and the 488 Spider. Shipments of the 12 cylinder models (V12) were down 22% due to the phase-out of the FF, the F12berlinetta now in its 5^th year of commercialization and LaFerrari that finished its limited series run. This was partially offset by the introduction of the new F12tdf.

The EMEA^([5]) and Greater China⁽⁵⁾ regions experienced a sound year-on-year growth with shipments increasing respectively by +14% and +26%, Americas⁽⁵⁾ recorded a slight  improvement whereas Rest of APAC⁽⁵⁾ remained in line with the previous year due to 488 Spider and F12tdf having just arrived on the market.

Total net revenues

Net revenues for Q2 2016 were Euro 811 million, an increase of Euro 45 million or 5.9% (+6.2% at constant currencies) from Q2 2015. Higher net revenues in Cars and spare parts⁽⁶⁾ (Euro 589 million, +2%) were due to increased volumes led by new models 488 GTB, 488 Spider,F12tdf, the non-registered car FXX K and the final deliveries of the F60 America, a strictly limited edition car, along with a higher contribution from personalization, which was partially offset by lower sales of LaFerrari. The rebound in Engines⁽⁷⁾ (Euro 71 million, +24%), was mainly attributable to higher rental revenues from other Formula 1 Teams. Sponsorship, commercial and brand⁽⁸⁾(Euro 117 million, +14%) was up mostly due to better championship ranking, higher sponsorship revenues and positive contribution from brand related activities.

Adjusted EBITDA⁽¹⁾ and Adjusted EBIT⁽¹⁾

Adjusted EBIT⁽¹⁾ was Euro 156 million, up Euro 32 million (+26%) from Q2 2015 as a result of higher volumes, thanks to the newly launched 488 GTB, 488 Spider and the F12tdf as well as a positive margin contribution from our personalization programs. Mix was negatively impacted (Euro 25 million) by higher V8 versus V12 range models with LaFerrari that finished its limited series run, partially offset by the non-registered car FXX K and the final deliveries of the F60 America, a strictly limited edition car (only ten units) manufactured to commemorate the 60^th Anniversary of Ferrari in North America. Research and development costs and industrial costs showed a decrease of Euro 11 million mainly due to lower D&A for the 458 family and LaFerrari phase-out coupled with efficiencies on production costs partially offset by F1 costs. The Selling, general and administrative costs^([10])were substantially in line with the previous year as the combined result of new store openings, new model launches and corporate costs offset by bad debt in Q2 2015. Other recorded a positive contribution of Euro 14 million thanks to Sponsorship, commercial and brand as well as other supporting activities.

Adjusted EBIT⁽¹⁾ excludes charges of Euro 10 million due to the worldwide Takata airbag inflator recalls^([11]).

Tax rate dropped to 30.7% in Q2 2016 vs. 33.5% in Q2 2015 as a result of the Italian Government’s decision to reduce the nominal tax rate from 27.5% to 24% by 2017.

As a result of the items described above, adjusted net profit⁽¹⁾ for Q2 2016 was Euro 104 million, up Euro 26 million (+35%).

Industrial free cash flow⁽¹⁾ for the three months ended June 30, 2016 was Euro 145 million, primarily driven by a strong increase in cash flow from operating activities, including a positive change of working capital and timing effect of advances on the new open-top LaFerrari, partially offset by capex and the first 2016 tax advance. Q2 2015 industrial free cash flow⁽¹⁾ included a Euro 116 million one-time cash in-flow related to the final reimbursement by Maserati of its inventory in China.

Net industrial debt⁽¹⁾ at June 30, 2016 was Euro 763 million, better than from Euro 782 million at March 31, 2016, thanks to industrial free cash flow⁽¹⁾ generation offset by cash distribution for Euro 87 million paid to the holders of common shares and Euro 13 million dividends paid to NCI.

The open-top LaFerrari: the new special limited-edition series

On July 5^th, 2016 Ferrari unveiled the first images of the open-top LaFerrari, the new limited-edition special series. The new model, already pre-sold, will be presented during the Paris International Motor Show in October 2016. The open-top LaFerrari will be provided with a removable carbon-fiber hard top and a removable soft top aimed at customers and collectors who refuse to compromise on the joy of plein air driving even when at the wheel of a supercar.

Subsequent Events

On July 7^th, 2016 Ferrari with Luxottica Group announced the signing of a sponsorship agreement for the Ray-Ban brand to appear on the SF16-H Formula One cars.

WORLDWIDE RESULTS - Ferrari announces, sales, income, profits and growth for the last financial year.

• Total shipments reached 7,664 units, up 6%
• Net revenues grew 3% (-3% at constant currencies) to Euro 2,854 million
• Adjusted EBIT^[1] of Euro 473 million, 200bps margin increase
• Net profit amounted to Euro 290 million, +9%
• Net Debt of Euro 1,938 million as of December 31, 2015
• Distribution of Euro 0.46 per common share^[2]

For the three months ended December 31,				(In Euro million unless otherwise stated)	For the twelve months ended December 31,
2015	2014	Change			2015	2014	Change
2,021	1,975	46	Shipments (in units)		7,664	7,255	409
744	751	(7)	Net revenues		2,854	2,762	92
85	115	(30)	EBIT		444	389	55
109	115	(6)	Adjusted EBIT1		473	404	69
157	193	(36)	EBITDA1		719	678	41
181	193	(12)	Adjusted EBITDA1		748	693	55
55	79	(24)	Net profit		290	265	25
0.28	0.41	(0.13)	Earnings per share (in Euro )		1.52	1.38	0.14

(Euro million)	Dec. 31,2015	Dec. 31, 2014	Change
Net Cash/(Net Debt)1	(1,938)	566	n.m.

Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated net revenues and preliminary results^[3] for the fourth quarter and twelve months ended December 31, 2015. 

Shipments totaled 7,664 units in 2015, up 6% from the previous year. This performance was driven by a 17% increase in sales of our 8 cylinder models (V8), led by California T, 458 Speciale A and the newly launched 488 GTB. Shipments of the 12 cylinder models (V12) were down 24% as the F12berlinetta and the FF are respectively in their 4^th and 5^th year of commercialization, and the F12tdf shipments started in December 2015.

EMEA⁴, Americas⁴ and Rest of APAC^[4] experienced sound year-on-year growth of 2%, 7% and 26% respectively. Greater China⁴ contracted by 10% year-on-year, but showed a +7% upturn for the three months ended December 31, 2015, thanks to the introduction of the 488 GTB.

Net revenues for FY 2015 were Euro 2,854 million, an increase of Euro 92 million or 3% (-3% at constant currencies) from FY 2014. Higher net revenues in Cars and spare parts^[5] (Euro 136 million, +7%) were partially offset by a decrease in Engines^[6] (Euro 92 million, -30%).

Adjusted EBIT¹ was Euro 473 million, up Euro 69 million (+17%) from FY 2014. This was the effect of higher volumes for the California T, 458 Speciale A, the newly launched 488 GTB and a positive margin contribution from our personalization programs. 

The increase was also supported by a positive foreign exchange contribution of Euro 41 million, mainly due to U.S. dollar and Great Britain pound appreciation and partially offset by Japanese yen. The mix effect had a slightly negative contribution of Euro 6 million due to the higher proportion of V8 versus V12 in FY 2015 compared to FY 2014. Selling, general and administrative costs^[7]grew by Euro 15 million due to our continued focus on directly operated retail stores, corporate costs and F1 racing activities. 

Research and development costs and industrial costs increased by Euro 3 million attributable to the 2016 development of the power unit for F1 racing activity partially offset by a lower R&D on road cars (primarily R&D and product D&A of 458 family) and efficiencies on production costs.

As a result of the items described above, net profit for FY 2015 was Euro 290 million, up Euro 25 million (+9%).   

Free Cash Flow¹ for the twelve months ended December 31, 2015 was Euro 390 million, primarily driven by a strong increase in cash from operating activities. Free Cash Flow¹included the following one-time cash inflows: the sale of investment properties; the reimbursement of the financing of inventory related to the establishment of the Maserati standalone business in China; and the sale of the financial assets portfolios of certain Financial Services Companies (FFS S.p.A. and FFS KK) in connection with the additional steps taken to maximize the effects of our cooperation agreements in Europe and in Japan; partially offset by the one-time extra bonus payment in December to all Ferrari employees.

Net Debt¹ at December 31, 2015 was Euro 1,938 million, compared to a Net Cash¹position of Euro 566 million at December 31, 2014. This was a result of the capital reorganization in connection with our IPO and the spin-off from Fiat Chrysler Automobiles N.V. (FCA), partially offset by the strong Free Cash Flow¹generation.

2016 Outlook

The Group indicates the following guidance for 2016, assuming FX consistent with current market conditions:

• Shipments: _˜7,900 including supercars
• Net revenues: >Euro 2.9 billion
• Adjusted EBITDA: >Euro 770 million
• Net Debt: <Euro 1,950 billion (<Euro 750 million - net of the funded self-liquidating financial receivables portfolio) including distribution to shareholders²

Distribution proposal

Subject to the approval of the 2015 annual accounts and review of other relevant financial statements by the Board of Directors of the Company, the Board of Directors of the Company intends to resolve to make a distribution to the holders of common shares of Euro 0.46 per common share, corresponding to a total distribution to shareholders of approximately Euro 87 million.

Subsequent Events

On January 3^rd, 2016 the Company completed the announced separation of the Ferrari business from FCA which was previously its largest shareholder. Following Ferrari’s debut on the New York Stock Exchange (NYSE) on October 21^st, 2015, on January 4^th, 2016 the Company also completed the listing of its common shares on the Milan Stock Exchange (MTA) under the ticker symbol RACE.

On January 19^th, 2016 Ferrari Financial Services Inc. completed its first securitization program of retail financial receivables in the U.S. with total proceeds of approximately US$246 million.

Shipments

For the three months ended December 31,				Shipments4(units)	For the twelve months ended December 31,
2015	2014	Change			2015		2014	Change
938	780	158		EMEA	3,351		3,274	77
671	740	(69)		Americas	2,640		2,462	178
192	179	13		Greater China	610		675	(65)
220	276	(56)		Rest of APAC	1,063		844	219
2,021	1,975	46		Total shipments	7,664		7,255	409

Total net revenues

For the three months ended December 31,				(Euro million)		For the twelve months ended December 31,
2015	2014	Change				2015	2014	Change
535	532	3		Cars and spare parts5		2,080	1,944	136
47	83	(36)		Engines6		219	311	(92)
119	108	11		Sponsorship, commercial and brand[8]		441	417	24
43	28	15		Other[9]		114	90	24
744	751	(7)		Total net revenues		2,854	2,762	92

Non-GAAP financial measures

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

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

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

Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as adjusted for income and costs, which are significant in nature, but expected to occur infrequently.

For the three months ended December 31,		(Euro million)	For the twelve months ended December 31,
2015	2014		2015	2014
85	115	EBIT	444	389
-	-	Expense related to the resignation of the former Chairman	-	15
24	-	Income and expenses incurred in connection with our IPO and separation and employees extra bonus	29	-
109	115	Adjusted EBIT	473	404

EBITDA is defined as net profit before income tax expense, net financial expenses/(income) and depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for income and costs, which are significant in nature, but expected to occur infrequently.

For the three months ended December 31,		(Euro million)	For the twelve months ended December 31,
2015	2014		2015	2014
55	79	Net profit	290	265
25	38	Income tax expense	144	133
5	(2)	Net financial expense/(income)	10	(9)
72	78	Amortization and depreciation	275	289
157	193	EBITDA	719	678

For the three months ended December 31,		(Euro million)	For the twelve months ended December 31,
2015	2014		2015	2014
157	193	EBITDA	719	678
-	-	Expense related to the resignation of the former Chairman	-	15
24	-	Income and expenses incurred in connection with our IPO and separation and employees extra bonus	29	-
181	193	Adjusted EBITDA	748	693

Net Cash/(Net Debt) is defined as cash and cash equivalents plus cash deposits in FCA Group cash management pools less debt.

(Euro million)	December 31, 2015	December 31, 2014
Cash and cash equivalents	183	134
Deposits in FCA Group cash management pools	139	942
Financial liabilities with FCA Group	(3)	(379)
Financial liabilities with third parties	(2,257)	(131)
Net Cash / (Net Debt)	(1,938)	566

Free Cash Flow is one of management’s primary key performance indicators to measure the Group’s performance and is defined as cash flows from operating activities less cash flows used in investing activities.

Free Cash Flow is subject to month to month fluctuations due to, among other things, production volumes, activity of our financial services portfolio, timing of tax payments and capital expenditures.

For the three months ended December 31,		(Euro million)	For the twelve months ended December 31,
2015	2014		2015	2014
173	131	Cash flows from operating activities	707	426
(121)	(122)	Cash flows used in investing activities	(317)	(290)
52	9	Free Cash Flow	390	136

^[1] Refer to specific note on Non-GAAP financial measures

^[2] Subject to approval of the 2015 annual accounts and review of other relevant financial statements by the Board of Directors

^[3] These results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and IFRS as endorsed by the European Union

^[4] EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separately identified); Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Greater China includes: China, Hong Kong and Taiwan; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia and South Korea

^[5] Includes the net revenues generated from shipments of our cars, including any personalization revenue generated on these cars and sales of spare parts

^[6] Includes the net revenues generated from the sale of engines to Maserati for use in their cars, and the revenues generated from the rental of engines to other Formula 1 racing teams

^[7] Excluding expenses related to IPO costs and employees extra bonus in 2015 and the resignation of former Chairman in 2014

^[8] Includes the net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated through the Ferrari brand, including merchandising, licensing and royalty income

^[9] Primarily incluces interest income generated by the Ferrari Financial Services group and net revenues from the management of the Mugello racetrack