Ferrari(RACE) - 2023 Q4 - Annual Report

Sales and Shipments - Annual shipments increased from 11,155 in 2021 to 13,663 in 2023, with an average of 12,680 over the three-year period[444] - Total shipments in the Americas reached 3,811 in 2023, up from 3,447 in 2022, with the United States accounting for 3,262 units[444] - Total shipments for 2023 were 13,663 cars, an increase of 442 cars or 3.3 percent compared to 2022[488] Revenue and Profit - Net revenues for 2023 reached €5,970 million, a 17.2% increase from €5,095 million in 2022, and a 39.8% increase from €4,271 million in 2021[480] - Net revenues for 2023 were €5,970 million, an increase of €875 million or 17.2 percent compared to 2022[485] - Net profit for 2023 was €1,257 million, representing 21.1% of net revenues, compared to €939 million (18.4%) in 2022 and €833 million (19.5%) in 2021[480] - Operating profit (EBIT) for 2023 was €1,617 million, or 27.1% of net revenues, up from €1,227 million (24.1%) in 2022 and €1,075 million (25.2%) in 2021[480] - EBITDA for 2023 reached €2,279 million, up 28.5% from €1,773 million in 2022[578] Costs and Expenses - Cost of sales for 2023 was €2,996 million, representing 50.2% of net revenues, down from 52.0% in 2022 and up from 48.7% in 2021[480] - Research and development costs increased to €882 million in 2023, accounting for 14.8% of net revenues, compared to 15.2% in 2022 and 18.0% in 2021[480] - Selling, general and administrative costs for 2023 were €463 million, an increase of €35 million or 8.1 percent compared to 2022[507] - The company experienced significant inflationary pressures, impacting raw material and energy costs, which contributed to a decrease in operating profit margins in 2022 and 2023[462] Research and Development - Total research and development incurred was €987 million in 2023, compared to €934 million in 2022 and €937 million in 2021[454] - Capitalized development costs rose from €363 million in 2021 to €448 million in 2023, representing 45.4% of total research and development incurred[453] - The proportion of capitalized development costs compared to total research and development incurred increased to 45.4% in 2023 from 44.5% in 2022[560] - The company plans to introduce 15 new models from 2023 to 2026, targeting a larger and younger customer base while maintaining brand exclusivity[444] - The company launched five new models in 2023, aligning with its goal of continuous innovation and market responsiveness[448] Cash Flow and Investments - Cash flows from operating activities increased by €314 million in 2023 compared to 2022, driven by an increase in net profit excluding non-cash items of €506 million[542] - Cash flows from operating activities for the year ended December 31, 2023, were €1,717 million, an increase of €314 million compared to €1,403 million in 2022[546] - Cash used in financing activities for the year ended December 31, 2023, was €1,109 million, compared to €554 million in 2022[554] - Capital expenditures for the year ended December 31, 2023, totaled €911 million, up from €824 million in 2022 and €750 million in 2021[557] - Cash flows used in investing activities increased by €62 million in 2023 compared to 2022, reflecting higher investments in property, plant, and equipment[543] Shareholder Information - Exor is the largest shareholder with a 24.65% stake, translating to approximately 36.48% voting power due to loyalty voting mechanisms[615] - The Shareholders' Agreement between Exor and Piero Ferrari includes provisions for consultation prior to General Meetings of shareholders[620] - The Shareholders' Agreement was automatically renewed for another five-year term until January 3, 2026, as neither party terminated it within six months before the end of the initial term[627] Corporate Governance - The Board of Directors consists of two executive Directors and nine non-executive Directors, with the current Board appointed on April 14, 2023[634][635] - Nine Directors qualify as independent under NYSE rules, representing a majority of the Board[639] - The Company has adopted the updated Dutch Corporate Governance Code, which will be applicable retroactively from the financial year 2023[632] - The Chief Executive Officer has day-to-day responsibility for the management of the Company and the Group[635] - The Board of Directors has established an Audit Committee, an ESG Committee, and a Compensation Committee to oversee key operational matters[636]