Ferrari N.V. — 2022 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2022; prepared under IFRS. Although the request references 2022 Q4, this filing reports annual results and does not provide a clear standalone fourth-quarter income statement or cash flow.
Business context and performance
Ferrari designs, manufactures and sells luxury performance cars worldwide, with production concentrated in Maranello and Modena, Italy. It shipped 13,221 cars in 2022, up 18.5% from 11,155 in 2021. The company continued to emphasize controlled volume, exclusivity, personalization and expansion of its product range.
Key financial metrics
| Metric | 2022 | 2021 | Change |
|---|---|---|---|
| Net revenue | €5,095 million | €4,271 million | +19.3% (+15.5% at constant currency) |
| EBIT | €1,227 million | €1,075 million | +14.1% |
| EBIT margin | 24.1% | 25.2% | Down 1.1 percentage points |
| Net profit | €939 million | €833 million | +12.7% |
| Basic / diluted EPS | €5.11 / €5.09 | €4.50 / €4.50 | Higher year over year |
| EBITDA | €1,773 million | €1,531 million | +15.8% |
| Operating cash flow | €1,403 million | €1,283 million | +€120 million |
| Free cash flow | €597 million | €546 million | +€51 million |
Cars and spare parts generated €4,341 million, or 85.2% of revenue, up 21.5%. Sponsorship, commercial and brand revenue rose 11.1% to €479 million. Engine revenue fell 18.0% to €155 million, primarily due to lower Maserati engine sales. Cost of sales rose 27.3% to €2,649 million and increased to 52.0% of revenue from 48.7%.
Capital expenditures were €824 million. Cash and cash equivalents were €1,389 million at year-end, and total available liquidity, including undrawn committed credit lines, was €2,058 million. Gross consolidated debt was €2,812 million; reported net industrial debt was €207 million, excluding financial-services net debt. Total debt includes financing associated with the financial-services business.
Material changes versus 2021
- Shipments and car-and-spare-parts revenue grew, supported by the Portofino M, SF90 family, 296 GTB and 812 Competizione ramp-up; Ferrari began initial Daytona SP3 shipments in Q4.
- EBIT increased, but margin declined as higher volume and favorable foreign-exchange effects were partly offset by inflation-related industrial costs, depreciation, higher SG&A and lower contribution from racing activities. Management attributed €119 million of positive EBIT impact to foreign exchange, including hedging.
- Research and development expenditure was €934 million, compared with €937 million in 2021. Capitalized development costs rose to €416 million; R&D expense recognized in the income statement was €776 million.
- Operating cash flow benefited from customer advances for the Daytona SP3 and 812 Competizione A, but was partly offset by higher taxes paid and working-capital investment. Cash used in investing activities was €805 million.
- Financial-services receivables rose to €1,400 million from €1,144 million, alongside higher securitization funding. Higher interest rates reduced financial-services margins by approximately 60 basis points versus 2021.
Outlook, risks and unusual items
- The SEC filing states that the separate 2023 Outlook section was removed from the Form 20-F. It therefore does not provide a clear numerical 2023 guidance set in the supplied filing text.
- Management plans 15 new models from 2023 through 2026 and continued measured shipment growth while seeking to protect brand exclusivity. Ferrari said it planned its first fully electric car for 2025 and was building an e-building for electric motors, inverters and battery modules.
- Ferrari announced a roughly €2 billion share-repurchase program expected to run through 2026 and an intended dividend payout ratio of 35% of adjusted net income starting in 2022. The Board recommended a €1.810-per-share dividend, approximately €329 million in total, subject to shareholder approval.
- Management cited inflation in energy, raw materials and other costs, elevated interest rates, foreign-exchange volatility, supply-chain concentration and uncertainty related to the Russia-Ukraine conflict. Ferrari suspended shipments to Russia; the filing says effects of sanctions and related measures on 2022 operations were contained.
- Key strategic risks include preserving brand exclusivity, successful execution of new models and electrification, regulatory compliance, reliance on single-source suppliers and production concentrated in two nearby Italian facilities, cybersecurity, and Formula 1 performance and revenues. The Maserati engine-supply agreement was due to expire at the end of 2023.
- The 2022 financial statements received an unqualified audit opinion, and management and the auditor reported effective internal control over financial reporting. The auditor identified warranty and recall provisions as a critical audit matter; the year-end provision was €126 million.
- The 2020 trademark tax step-up generated a non-recurring €75 million net tax benefit in 2020; it did not recur in 2022. The 2022 effective tax rate was 20.2%.
Important facts for investors to verify
- Review the full audited statements and notes for debt maturities, interest-rate exposure, securitization terms and the distinction between industrial and financial-services leverage.
- Assess whether rising production costs continue to pressure margins and whether pricing, product mix and currency hedging offset that pressure.
- Track delivery cadence and customer demand for the Purosangue, hybrid models and upcoming launches, alongside the risk that volume growth could weaken exclusivity.
- Verify progress, investment requirements and commercial assumptions for the 2025 electric-car plan and the 2023–2026 product schedule.
- Monitor warranty and recall claims, supplier continuity, emissions and safety regulation, and the expiry or replacement of the Maserati engine agreement.
- Confirm shareholder approval and subsequent execution of the proposed dividend and the announced buyback program.