annual report - FIAT SpA

FERRARI
Highlights
OPERATING PERFORMANCE
(€ million) 2010 2009
Ferrari closed 2010 up significantly over the
previous year. Although the impact of the Net revenues 1,919 1,778
crisis on 2009 performance was not Trading profit/(loss) 303 238
particularly severe, in 2010 Ferrari even
succeeded in beating its previous all-time Operating profit/(loss) (*) 302 245
record for deliveries (2008), when market Investments in tangible and intangible assets 239 290
conditions were decidedly more favorable.
This also translated into strong earnings, with of which capitalized R&D costs 102 119
revenues up 7.9% over 2009 and trading Total R&D expenditure (**) 148 156
margin increasing to 15.8%.
Type-approved vehicles delivered to the
Those positive results reflect the continuous network (no. of units) 6,573 6,193
investment in product development, with
No. of employees at year end 2,721 2,835
several new models launched during the
year. In addition to the continued success of (*) Includes restructuring costs and other unusual income/(expense)
the Ferrari California and the ramp-up in (**) Includes capitalized R&D and R&D charged directly to the income statement
production and sales of the 458 Italia, 2010
also saw the release of two limited edition models: the 599 GTO, for which deliveries began during the year, and the
Ferrari SA Aperta. Both models achieved immediate success.
Team Ferrari returned to the top ranks of Formula 1, coming within reach of the Drivers’ Championship Title, which only
eluded its grasp in the final race of an extremely close and hard-fought season. Across the Atlantic, however, Ferrari
took the Constructors’ Title in the American Le Mans Series Championship.
Ferrari continued to expand use of the internet as its primary platform for communicating with customers and
enthusiasts around the world. Following launch of the Japanese language version in January, the Chinese version went
live in March 2010, providing Ferrari even closer contact with customers in these key markets.
The company continued expansion of the Ferrari Store network, opening new sales outlets internationally, most notably
in New York (Park Avenue), Johannesburg and Abu Dhabi, the largest in the world. These were accompanied by the
opening of Ferrari Pit Stop in Nola (Italy), a new concept store dedicated exclusively to fans of Team Ferrari.
The result from product licensing was also strong, as collaboration with the company's most important partners
continued and in November Ferrari World Abu Dhabi was opened. This theme park, which operates under license from
Ferrari, offers visitors spectacular attractions, using the latest technology to tell the story and convey the unique
emotion of Ferrari.
A total of 6,461 type-approved cars were sold to end customers, a 3.4% increase over 2009 (+2.7% over a total
6,293 units sold for 2009, including non-type approved vehicles of which none were sold in 2010).
This result was mainly due to the recovery in North America and excellent performance in emerging Asian markets,
especially China, where the success of the 458 Italia and the California led to a sharp increase in demand.
In North America, Ferrari's number one market in terms of volumes (26% of the worldwide total), where 1,672 vehicles
were sold to end customers (+14% over 2009), the sector achieved a return to pre-crisis levels, although the overall
market has yet to recover. Market trends varied in Europe, with growth in demand in Eastern European markets and
consolidation in Western Europe. A total of 3,056 units were sold, representing a slight decline over 2009 (-1.4%). Italy
was the best performing Western European market, with 694 units delivered (+6%), compared with slight falls in
Germany (-4% to 617 units) and the UK (-3% to 468 units). For Eastern Europe, sales were up 82% in Russia and 5%
in Romania.
In the Middle East and Africa, Ferrari maintained 2009 sales levels, continuing the excellent results achieved in these
markets in recent years, with a total of 476 units delivered to end customers (+1%). Sales growth in the Asia-Pacific
region also continued, with a total of 1,151 vehicles delivered (+3% over 2009), driven by excellent performance in
China, Australia and Singapore. In China, a key market for Ferrari, sales were up 24% to 256 units. Performance was
also very strong in Hong Kong (+10% to 157 units), Australia (+19% to 137 units), Singapore (+150% to 50 units) and
South Korea (+44% to 46 units). In Japan, Ferrari maintained its leadership with a 47% share of its segment, despite a
decrease in vehicles sold (-18% to 411 units) attributable to poor economic conditions.
For 2010, a total of 6,573 type-approved cars were delivered to the network, an increase of 6.1% over the previous
year (+5.4% over a total 6,235 deliveries for 2009, including non-type approved vehicles).
Report on Operations Ferrari 76