|
|
o
|
REGISTRATION STATEMENT PURSUANT TO SECTIONS 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
The Netherlands
|
(Jurisdiction of Incorporation or Organization)
|
|
|
Title of each class
|
|
Name of each exchange on which registered
|
Ordinary Shares (par value of €0.01 each)
|
|
New York Stock Exchange
|
Large accelerated filer
þ
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
Item 4.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
Item 4A.
|
||
Item 5.
|
||
|
||
|
||
|
||
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
E.
|
||
F.
|
||
G.
|
||
Item 6.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
E.
|
||
Item 7.
|
||
A.
|
||
B.
|
||
C.
|
Item 8.
|
||
A.
|
||
B.
|
||
Item 9.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
E.
|
||
F.
|
||
Item 10.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
E.
|
||
F.
|
||
G.
|
||
H.
|
||
I.
|
||
Item 11.
|
||
Item 12.
|
||
A.
|
||
B.
|
||
C.
|
||
D.
|
||
|
|
|
|
|
|
Item 13.
|
||
Item 14.
|
||
Item 15.
|
||
Item 16A.
|
||
Item 16B.
|
||
Item 16C.
|
||
Item 16D.
|
||
Item 16E.
|
||
Item 16F.
|
||
Item 16G.
|
||
Item 16H.
|
||
|
|
|
|
|
|
Item 17.
|
||
Item 18.
|
||
Item 19.
|
||
|
•
|
The Company acquired from Ferrari North Europe Limited its assets and business of providing sales, after-sales and support services for the Ferrari brand and in exchange, the Company issued to Ferrari North Europe Limited a note in the principal amount of £2.8 million (the “FNE Note”).
|
•
|
FCA transferred to the Company all of the issued and outstanding share capital that it previously held in Ferrari S.p.A. (representing 90 percent of the share capital of Ferrari S.p.A.), and in exchange the Company issued to FCA a note in the principal amount of €7.9 billion (the “FCA Note”).
|
•
|
FCA contributed €5.1 billion to the Company in consideration of the issue to FCA of 156,917,727 common shares and 161,917,727 special voting shares of the Company. Following a subsequent transaction with Piero Ferrari, FCA owned 170,029,440 common shares and special voting shares, equal to 90 percent of the Company’s common shares outstanding. €5.1 billion of the proceeds received from FCA were applied to settle a portion of the FCA Note, following which the principal outstanding on the FCA Note was €2.8 billion, which was refinanced through cash deposits held with FCA and for the remainder from new third party debt.
|
•
|
Piero Ferrari transferred his 10 percent interest in Ferrari S.p.A. to the Company and in exchange, the Company issued to Piero Ferrari 27,003,873 of its common shares and the same number of special voting shares. Following a subsequent transaction with FCA, Piero Ferrari owned 18,892,160 common shares and special voting shares, equal to 10 percent of the Company’s common shares outstanding. The Company did not receive any cash consideration as part of this transaction.
|
•
|
our ability to preserve and enhance the value of the Ferrari brand;
|
•
|
the success of our Formula 1 racing team and the expenses we incur for our Formula 1 activities;
|
•
|
our ability to keep up with advances in high performance car technology and to make appealing designs for our new models;
|
•
|
our ability to preserve our relationship with the automobile collector and enthusiast community;
|
•
|
our low volume strategy;
|
•
|
the ability of Maserati, our engine customer, to sell its planned volume of cars;
|
•
|
changes in client preferences and automotive trends;
|
•
|
changes in the general economic environment and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile;
|
•
|
the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to our products;
|
•
|
our ability to successfully carry out our growth strategy and, particularly, our ability to grow our presence in emerging market countries;
|
•
|
our ability to service and refinance our debt;
|
•
|
competition in the luxury performance automobile industry;
|
•
|
reliance upon a number of key members of executive management and employees, and the ability of our current management team to operate and manage effectively;
|
•
|
the performance of our dealer network on which we depend for sales and services;
|
•
|
increases in costs, disruptions of supply or shortages of components and raw materials;
|
•
|
disruptions at our manufacturing facilities in Maranello and Modena;
|
•
|
our ability to provide or arrange for adequate access to financing for our dealers and clients, and associated risks;
|
•
|
the performance of our licensees for Ferrari-branded products;
|
•
|
our ability to protect our intellectual property rights and to avoid infringing on the intellectual property rights of others;
|
•
|
product recalls, liability claims and product warranties;
|
•
|
our continued compliance with customs regulations of various jurisdictions;
|
•
|
labor relations and collective bargaining agreements;
|
•
|
exchange rate fluctuations, interest rate changes, credit risk and other market risks;
|
•
|
changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which we operate;
|
•
|
our ability to ensure that our employees, agents and representatives comply with applicable law and regulations;
|
•
|
the adequacy of our insurance coverage to protect us against potential losses;
|
•
|
potential conflicts of interest due to director and officer overlaps with our largest shareholders;
|
•
|
our ability to maintain the functional and efficient operation of our information technology systems; and
|
•
|
other factors discussed elsewhere in this document.
|
(i)
|
the audited Consolidated Financial Statements, included elsewhere in this document;
|
(ii)
|
the audited consolidated income statement of the Company for the years ended December 31, 2013 and 2012 and the audited consolidated statement of financial position at December 31, 2014 and 2013;
|
(iii)
|
the unaudited statement of financial position at December 31, 2012.
|
|
For the years ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
|
(€ million, except per share data)
|
|||||||||||||
Net revenues
|
3,105
|
|
|
2,854
|
|
|
2,762
|
|
|
2,335
|
|
|
2,225
|
|
EBIT
|
595
|
|
|
444
|
|
|
389
|
|
|
364
|
|
|
335
|
|
Profit before taxes
|
567
|
|
|
434
|
|
|
398
|
|
|
366
|
|
|
334
|
|
Net profit
|
400
|
|
|
290
|
|
|
265
|
|
|
246
|
|
|
233
|
|
Net profit attributable to:
|
|
|
|
|
|
|
|
|
|
|||||
Owners of the parent
|
399
|
|
|
288
|
|
|
261
|
|
|
241
|
|
|
225
|
|
Non-controlling interests
|
1
|
|
|
2
|
|
|
4
|
|
|
5
|
|
|
8
|
|
Basic earnings per common share (€)
(1)
|
2.11
|
|
|
1.52
|
|
|
1.38
|
|
|
1.27
|
|
|
1.19
|
|
Diluted earnings per common share (€)
(2)
|
2.11
|
|
|
1.52
|
|
|
1.38
|
|
|
1.27
|
|
|
1.19
|
|
Dividend paid per share (€)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Distribution paid per common share (€)
(3)
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Retrospectively reflects the issuance of 188,923,499 common shares as if the Separation had occurred on January 1, 2012. See also Notes 13 and 21 to the Consolidated Financial Statements.
|
(2)
|
For the years ended December 31, 2015, 2014, 2013 and 2012 there were no potentially dilutive instruments. In order to calculate the diluted earnings per share for the year ended December 31, 2016, the weighted average numbers of shares outstanding has been increased to take into consideration the theoretical effect of the potential common shares that would be issued for the Non-Executive Directors
’
compensation agreement. See Note 17 to the Consolidated Financial Statements.
|
(3)
|
Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 15, 2016, the Company paid a cash distribution of €0.46 per common share in May 2016, corresponding to a total distribution of €87 million. The distribution was made from the share premium reserve which is a distributable reserve under Dutch law.
|
|
At December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
|
(€ million, except shares issued)
|
|||||||||||||
Cash and cash equivalents
|
458
|
|
|
183
|
|
|
134
|
|
|
114
|
|
|
100
|
|
Deposits in FCA Group cash management pools
(1)
|
—
|
|
|
139
|
|
|
942
|
|
|
684
|
|
|
457
|
|
Total assets
|
3,850
|
|
|
3,875
|
|
|
4,641
|
|
|
3,895
|
|
|
3,465
|
|
Debt
|
1,848
|
|
|
2,260
|
|
|
510
|
|
|
317
|
|
|
261
|
|
Total equity/(deficit)
(2)
|
330
|
|
|
(19
|
)
|
|
2,478
|
|
|
2,316
|
|
|
2,041
|
|
Equity/(Deficit) attributable to owners of the parent
|
325
|
|
|
(25
|
)
|
|
2,470
|
|
|
2,290
|
|
|
2,019
|
|
Non-controlling interests
|
5
|
|
|
6
|
|
|
8
|
|
|
26
|
|
|
22
|
|
Share capital
|
3
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
4
|
|
Common shares issued (in thousands of shares)
(3)
|
188,923
|
|
|
188,923
|
|
|
188,923
|
|
|
188,923
|
|
|
188,923
|
|
(1)
|
Deposits in FCA Group cash management pools related to our participation in a group-wide cash management system at FCA prior to the Separation, where the operating cash management, main funding operations and liquidity investment of the Group were centrally coordinated by dedicated treasury companies with the objective of ensuring effective and efficient management of our funds. Following the Separation on January 3, 2016, these arrangements were terminated and we manage our liquidity and treasury function on a standalone basis.
|
(2)
|
The negative equity at December 31, 2015 is a result of the effects of the Restructuring. See “Consolidated Statement of Changes in Equity” to the Consolidated Financial Statements for additional details.
|
(3)
|
The number of common shares issued retrospectively reflects the issuance of common shares (net of treasury shares), all with a nominal value of €0.01, as if the Separation had occurred on January 1, 2012. See Note 21 “Equity” to the Consolidated Financial Statements for additional details of share capital and common shares issued.
|
|
For the years ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Shipments (number of cars)
|
8,014
|
|
|
7,664
|
|
|
7,255
|
|
|
7,000
|
|
|
7,405
|
|
Average number of employees for the period
|
3,115
|
|
|
2,954
|
|
|
2,843
|
|
|
2,774
|
|
|
2,708
|
|
Period
|
High
|
|
Low
|
|
Average
|
|
Period End
|
Year ended December 31, 2012
|
1.3463
|
|
1.2062
|
|
1.2859
|
|
1.3186
|
Year ended December 31, 2013
|
1.3816
|
|
1.2774
|
|
1.3281
|
|
1.3779
|
Year ended December 31, 2014
|
1.3927
|
|
1.2101
|
|
1.3210
|
|
1.2101
|
Year ended December 31, 2015
|
1.2015
|
|
1.0524
|
|
1.1032
|
|
1.0859
|
Year ended December 31, 2016
|
1.1516
|
|
1.0375
|
|
1.1072
|
|
1.0552
|
Year ended December 31, 2017 (through February 24, 2017)
|
1.0802
|
|
1.0416
|
|
1.0644
|
|
1.0630
|
•
|
the performance of loans and leases in their portfolio, which could be materially affected by delinquencies or defaults;
|
•
|
higher than expected car return rates and the residual value performance of cars they lease; and
|
•
|
fluctuations in interest rates and currency exchange rates.
|
•
|
conforming our cars to various international regulatory and safety requirements where our cars are sold, or homologation;
|
•
|
|
•
|
difficulty in establishing, staffing and managing foreign operations;
|
•
|
difficulties attracting clients in new jurisdictions;
|
•
|
foreign government taxes, regulations and permit requirements, including foreign taxes that we may not be able to offset against taxes imposed upon us in Italy;
|
•
|
fluctuations in foreign currency exchange rates and interest rates, including risks related to any interest rate swap or other hedging activities we undertake;
|
•
|
our ability to enforce our contractual and intellectual property rights, especially in those foreign countries that do not respect and protect intellectual property rights to the same extent as do the United States, Japan and European countries, which increases the risk of unauthorized, and uncompensated, use of our technology;
|
•
|
European Union and foreign government trade restrictions, customs regulations, tariffs and price or exchange controls;
|
•
|
foreign labor laws, regulations and restrictions;
|
•
|
preferences of foreign nations for domestically produced cars;
|
•
|
changes in diplomatic and trade relationships;
|
•
|
political instability, natural disasters, war or events of terrorism; and
|
•
|
the strength of international economies.
|
•
|
variations in our operating results, or failure to meet the market’s earnings expectations;
|
•
|
publication of research reports about us, the automotive industry or the luxury industry, or the failure of securities analysts to cover our common shares;
|
•
|
departures of any members of our management team or additions or departures of other key personnel;
|
•
|
adverse market reaction to any indebtedness we may incur or securities we may issue in the future;
|
•
|
actions by shareholders;
|
•
|
changes in market valuations of similar companies;
|
•
|
changes or proposed changes in laws or regulations, or differing interpretations thereof, affecting our business, or enforcement of these laws and regulations, or announcements relating to these matters;
|
•
|
adverse publicity about the automotive industry or the luxury industry generally, or particularly scandals relating to those industries, specifically;
|
•
|
litigation and governmental investigations; and
|
•
|
general market and economic conditions.
|
•
|
Data for the Luxury Performance Car Industry include all two door GT and Sports Cars with power above 500hp, and retail price above Euro 150,000 (including VAT) sold by Aston Martin, Audi, Bentley, Ferrari, Honda/Acura, Lamborghini, McLaren, Mercedes Benz, Porsche and Rolls-Royce.
|
•
|
Ferrari data based on the 22 top countries (excluding Middle East countries) for Ferrari annual registrations and sales (which accounted for approximately 85% of the total Ferrari shipments in 2016).
|
•
|
Data for the Luxury Performance Car Industry based on units registered (Brazil, Japan, Taiwan, United Kingdom, Germany, France, Switzerland, Italy, Spain, Sweden, Netherlands, Belgium and Austria) or sold (in USA, South Korea, Thailand, China, Hong Kong, Australia, New Zealand, Singapore and Indonesia). Source: USA: US Maker Data Club, Brazil-ANFAVEA; Austria-OSZ; Belgium-FEBIAC; France-SIV; Germany-KBA; UK-SMMT; Italy-UNRAE; Netherlands- VWE; Spain- TRAFICO; Sweden-BranschData; Switzerland-ASTRA; China-China Automobile Industry Association-DataClub; Hong Kong-Hong Kong Motor Trader Association; Taiwan-Ministry of Transportation and Communications; Australia-VFACTS-S; Japan-JAIA; Indonesia-GAIKINDO; New Zealand-VFACTS; Singapore-LTA, MTA (Land Transport Authority, Motor Trader Associations); South Korea-KAIDA; Thailand -Department of Land Transportation
|
•
|
Data for the Luxury Performance Car Industry include all two door GT and sports cars with power above 500hp, and retail price above Euro 150,000 (including VAT) sold by Aston Martin, Audi, Bentley, Ferrari, Lamborghini, McLaren, Mercedes Benz, Porsche and Rolls-Royce.
|
•
|
Ferrari data based on the 22 top countries (excluding Middle East countries) for Ferrari annual registrations and sales (which accounted for approximately 85% of the total Ferrari shipments in 2016).
|
•
|
Data for the Luxury Performance Car Industry based on units registered (Brazil, Japan, Taiwan, United Kingdom, Germany, France, Switzerland, Italy, Spain, Sweden, Netherlands, Belgium and Austria) or sold (in USA, South Korea, Thailand, China, Hong Kong, Australia, New Zealand, Singapore and Indonesia). Source: USA: US Maker Data Club, Brazil-ANFAVEA; Austria-OSZ; Belgium-FEBIAC; France-SIV; Germany-KBA; UK-SMMT; Italy-UNRAE; Netherlands- VWE; Spain- TRAFICO; Sweden-BranschData; Switzerland-ASTRA; China-China Automobile Industry Association-DataClub; Hong Kong-Hong Kong Motor Trader Association; Taiwan-Ministry of Transportation and Communications; Australia-VFACTS-S; Japan-JAIA; Indonesia-GAIKINDO; New Zealand-VFACTS; Singapore-LTA, MTA (Land Transport Authority, Motor Trader Associations); South Korea-KAIDA; Thailand -Department of Land Transportation.
|
(Number of cars and % of total cars)
|
|
For the years ended December 31,
|
||||||||||||||||
|
2016
|
|
%
|
|
2015
|
|
%
|
|
2014
|
|
%
|
|||||||
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
UK
|
|
769
|
|
|
9.6
|
%
|
|
740
|
|
|
9.7
|
%
|
|
705
|
|
|
9.7
|
%
|
Germany
|
|
675
|
|
|
8.4
|
%
|
|
595
|
|
|
7.8
|
%
|
|
616
|
|
|
8.5
|
%
|
Italy
|
|
364
|
|
|
4.5
|
%
|
|
285
|
|
|
3.7
|
%
|
|
243
|
|
|
3.3
|
%
|
Switzerland
|
|
333
|
|
|
4.2
|
%
|
|
340
|
|
|
4.4
|
%
|
|
332
|
|
|
4.6
|
%
|
France
|
|
306
|
|
|
3.8
|
%
|
|
274
|
|
|
3.6
|
%
|
|
253
|
|
|
3.5
|
%
|
Middle East
(1)
|
|
439
|
|
|
5.5
|
%
|
|
456
|
|
|
5.9
|
%
|
|
521
|
|
|
7.2
|
%
|
Other EMEA
(2)
|
|
724
|
|
|
9.1
|
%
|
|
661
|
|
|
8.6
|
%
|
|
604
|
|
|
8.3
|
%
|
Total EMEA
|
|
3,610
|
|
|
45.1
|
%
|
|
3,351
|
|
|
43.7
|
%
|
|
3,274
|
|
|
45.1
|
%
|
Americas
(3)
|
|
2,687
|
|
|
33.5
|
%
|
|
2,640
|
|
|
34.4
|
%
|
|
2,462
|
|
|
33.9
|
%
|
Greater China
(4)
|
|
619
|
|
|
7.7
|
%
|
|
610
|
|
|
8.0
|
%
|
|
675
|
|
|
9.3
|
%
|
Rest of APAC
(5)
|
|
1,098
|
|
|
13.7
|
%
|
|
1,063
|
|
|
13.9
|
%
|
|
844
|
|
|
11.6
|
%
|
Total
|
|
8,014
|
|
|
100.0
|
%
|
|
7,664
|
|
|
100.0
|
%
|
|
7,255
|
|
|
100.0
|
%
|
(1)
|
Middle East includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait.
|
(2)
|
Rest of EMEA includes Africa and the other European markets not separately identified.
|
(3)
|
Americas includes the United States of America, Canada, Mexico, the Caribbean and Central and South America.
|
(4)
|
Greater China includes China, Hong Kong and Taiwan.
|
(5)
|
Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea.
|
(Number of cars)
|
|
For the years ended December 31,
|
||||||
|
|
2016
|
2015
|
|
2014
|
|||
Sports
|
|
|
|
|
|
|||
V8
(1)
|
|
4,221
|
|
3,534
|
|
|
3,651
|
|
V12
(2)
|
|
1,152
|
|
1,169
|
|
|
1,565
|
|
Total Sports
|
|
5,373
|
|
4,703
|
|
|
5,216
|
|
GT
|
|
|
|
|
|
|||
V8
|
|
2,247
|
|
2,638
|
|
|
1,645
|
|
V12
|
|
394
|
|
323
|
|
|
394
|
|
Total GT
|
|
2,641
|
|
2,961
|
|
|
2,039
|
|
Total
|
|
8,014
|
|
7,664
|
|
|
7,255
|
|
(1)
|
Includes 458 Speciale and 458 Speciale A for 2015 and 2014.
|
(2)
|
Includes LaFerrari, and from the third quarter of 2016 LaFerrari Aperta.
|
Category
|
|
Principal Licensees
|
Accessories
|
|
o Oakley (sunglasses)
o Tod’s (shoes and leather goods) |
Consumer electronics
|
|
o Various
|
Fragrances
|
|
o Perfume Holding
|
Sportswear
|
|
o Puma
|
Theme Parks
|
|
o Ferrari World, Abu Dhabi
o Ferrari Land, Port Aventura |
Toys
|
|
o Bburago (play-set)
o Lego (Lego toys) |
Video games
|
|
o Electronic Arts
o Microsoft
o Sony Polyphony o Ubisoft |
Watches
|
|
o Hublot (co-branded high-luxury watches)
o Movado (Scuderia Ferrari Watches)
|
Other (including collectors' models, kid apparels, and accessories, stationary and credit cards)
|
|
o Various
|
•
|
FXX K:
Red Dot: “Best of the Best” award for top design quality and ground-breaking design (2015); “iF Gold Award” (2016); “Compasso d’Oro 2016” (ADI).
|
•
|
488 GTB
: Red Dot: “Best of the Best” award for top design quality and ground-breaking design (2016); “iF Award” (2016).
|
•
|
488 Spider
: “iF Award” (2016); Autonis Design award (Auto Motor und Sport, D) - Beste Design-Neuheit: Cabrios (2016); Chicago Good Design Award (2016).
|
•
|
LaFerrari
: Red Dot design award for high design quality (2015); “Design Award” (AutoScout24 -11
th
Internet Auto Awards); “Design of the Year 2014” (AutoDesign & Styling Awards); “Best Super Sportscar 2014” (Auto Zeitung); “2014 James May’s Car of the Year” (Top Gear); “Best Cars 2015 -Coupé Category” (Motor Presse Iberia).
|
•
|
GTC4Lusso
: “Chicago Good Design Award” (2016); “Grand Prize for Best Supercar of the Year” (Festival International Automobile, 2016).
|
•
|
F12tdf
: “Chicago Good Design Award” (2016).
|
•
|
F12berlinetta
: “Compasso d’Oro 2014” (ADI); “Car of the Year 2014” (Robb Report); “Supercar of the Year 2013” (GQ); “Best Coupé 2013” (
L’Automobile Magazine
); “Design Award, 2012” (Auto Bild); “
Goldenes Lenkrad 2012
” (Auto Bild); “Supercar of the Year 2012” (Top Gear).
|
•
|
California T
: Red Dot design award for high design quality (2015); “The Most Beautiful Automobile Award 2014” (Car & Driver China); “Most Stylish Car 2014” (
Schweizer Illustrierte
).
|
•
|
458 Speciale
: “Supercar of the Year 2013” (Top Gear -UK); “2014 Car of the Year” (Evo -UK); “James May’s Car of the Year 2013” (Top Gear -UK); “Supercar of the Year 2013” (Evo Middle East); “2014 Britain’s Best Driver’s Car” (Autocar -UK).
|
•
|
458 Speciale A
: “Convertible of the Year 2014” (Top Gear UK).
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Amortization of capitalized development costs
|
104,055
|
|
|
114,856
|
|
|
125,497
|
|
Research and development costs expensed during the period
|
509,580
|
|
|
446,726
|
|
|
415,336
|
|
Total research and development costs
|
613,635
|
|
|
561,582
|
|
|
540,833
|
|
•
|
Scuderia Ferrari (word and figurative):
|
Name
|
|
Country
|
|
Nature of business
|
|
Shares held by the Group
|
|
Shares held by NCI
|
||
Directly held interests
|
|
|
|
|
|
|
|
|
||
Ferrari S.p.A.
|
|
Italy
|
|
Manufacturing
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
||
Indirectly held through Ferrari S.p.A.
|
|
|
|
|
|
|
|
|
||
Ferrari North America Inc.
|
|
USA
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Japan KK
|
|
Japan
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Australasia Pty Limited
|
|
Australia
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari International Cars Trading (Shanghai) Co. L.t.d.
|
|
China
|
|
Importer and distributor
|
|
80
|
%
|
|
20
|
%
|
Ferrari (HK) Limited
|
|
Hong Kong
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Far East Pte Limited
|
|
Singapore
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari Management Consulting (Shanghai) Co. L.t.d.
|
|
China
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari South West Europe S.a.r.l.
|
|
France
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari Central East Europe GmbH
|
|
Germany
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
G.S.A. S.A.
|
|
Switzerland
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari North Europe L.t.d.
|
|
UK
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Mugello Circuit S.p.A.
|
|
Italy
|
|
Racetrack management
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services S.p.A.
|
|
Italy
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
||
Indirectly held through other Group entities
|
|
|
|
|
|
|
|
|
||
Ferrari Financial Services Inc.
(1)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction - Lease, LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services Titling Trust
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction - Select, LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
410, Park Display Inc.
(3)
|
|
USA
|
|
Retail
|
|
100
|
%
|
|
—
|
%
|
(1)
|
Shareholding held by Ferrari Financial Services S.p.A.
|
(2)
|
Shareholding held by Ferrari Financial Services Inc. (“FFS Inc”)
|
(3)
|
Shareholding held by Ferrari North America Inc.
|
|
|
For the years ended December 31,
|
||||||||||||||||
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
2014
|
|
%
|
||||||
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
UK
|
|
769
|
|
|
9.6
|
%
|
|
740
|
|
|
9.7
|
%
|
|
705
|
|
|
9.7
|
%
|
Germany
|
|
675
|
|
|
8.4
|
%
|
|
595
|
|
|
7.8
|
%
|
|
616
|
|
|
8.5
|
%
|
Italy
|
|
364
|
|
|
4.5
|
%
|
|
285
|
|
|
3.7
|
%
|
|
243
|
|
|
3.3
|
%
|
Switzerland
|
|
333
|
|
|
4.2
|
%
|
|
340
|
|
|
4.4
|
%
|
|
332
|
|
|
4.6
|
%
|
France
|
|
306
|
|
|
3.8
|
%
|
|
274
|
|
|
3.6
|
%
|
|
253
|
|
|
3.5
|
%
|
Middle East
(1)
|
|
439
|
|
|
5.5
|
%
|
|
456
|
|
|
5.9
|
%
|
|
521
|
|
|
7.2
|
%
|
Other EMEA
(2)
|
|
724
|
|
|
9.1
|
%
|
|
661
|
|
|
8.6
|
%
|
|
604
|
|
|
8.3
|
%
|
Total EMEA
|
|
3,610
|
|
|
45.1
|
%
|
|
3,351
|
|
|
43.7
|
%
|
|
3,274
|
|
|
45.1
|
%
|
Americas
(3)
|
|
2,687
|
|
|
33.5
|
%
|
|
2,640
|
|
|
34.4
|
%
|
|
2,462
|
|
|
33.9
|
%
|
Greater China
(4)
|
|
619
|
|
|
7.7
|
%
|
|
610
|
|
|
8.0
|
%
|
|
675
|
|
|
9.3
|
%
|
Rest of APAC
(5)
|
|
1,098
|
|
|
13.7
|
%
|
|
1,063
|
|
|
13.9
|
%
|
|
844
|
|
|
11.6
|
%
|
Total
|
|
8,014
|
|
|
100.0
|
%
|
|
7,664
|
|
|
100.0
|
%
|
|
7,255
|
|
|
100.0
|
%
|
•
|
On January 19, 2016, FFS Inc performed a revolving securitization program for funding of up to $250 million by pledging retail financial receivables in the United States as collateral. On December 16th, 2016, the funding limit of the program was increased to US$275 million.
|
•
|
On October 20, 2016, FFS Inc performed a revolving securitization program for funding of up to $200 million by pledging leasing financial receivables in the United States as collateral.
|
•
|
Finally, on December 28, 2016, FFS Inc performed a revolving securitization program for funding of up to $120 million by pledging credit lines to Ferrari customers secured by personal vehicle collections and personal guarantees in the United States as collateral.
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(€ million)
|
|||||||
Net profit
|
|
400
|
|
|
290
|
|
|
265
|
|
Income tax expense
|
|
167
|
|
|
144
|
|
|
133
|
|
Net financial expenses/(income)
|
|
28
|
|
|
10
|
|
|
(9
|
)
|
Amortization and depreciation
|
|
248
|
|
|
275
|
|
|
289
|
|
EBITDA
|
|
843
|
|
|
719
|
|
|
678
|
|
Charges for Takata airbag inflator recalls
|
|
37
|
|
|
—
|
|
|
—
|
|
Expenses incurred in relation to the IPO
|
|
—
|
|
|
16
|
|
|
—
|
|
Employees extra bonus
|
|
—
|
|
|
19
|
|
|
—
|
|
Gain recognized on disposal of investment property assets and liabilities
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
Expense related to the resignation of the former Chairman
|
|
—
|
|
|
—
|
|
|
15
|
|
Adjusted EBITDA
|
|
880
|
|
|
748
|
|
|
693
|
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(€ million)
|
|||||||
EBIT
|
|
595
|
|
|
444
|
|
|
389
|
|
Charges for Takata airbag inflator recalls
|
|
37
|
|
|
—
|
|
|
—
|
|
Expenses incurred in relation to the IPO
|
|
—
|
|
|
16
|
|
|
—
|
|
Employees extra bonus
|
|
—
|
|
|
19
|
|
|
—
|
|
Gain recognized on disposal of investment property assets and liabilities
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
Expense related to the resignation of the former Chairman
|
|
—
|
|
|
—
|
|
|
15
|
|
Adjusted EBIT
|
|
632
|
|
|
473
|
|
|
404
|
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(€ million)
|
|||||||
Net profit
|
|
400
|
|
|
290
|
|
|
265
|
|
Charges for Takata airbag inflator recalls (net of tax effect)
|
|
25
|
|
|
—
|
|
|
—
|
|
Expenses incurred in relation to the IPO (net of tax effect)
|
|
—
|
|
|
11
|
|
|
—
|
|
Employees extra bonus (net of tax effect)
|
|
—
|
|
|
13
|
|
|
—
|
|
Gain recognized on disposal of investment property assets and liabilities (net of tax effect)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
Expense related to the resignation of the former Chairman (net of tax effect)
|
|
—
|
|
|
—
|
|
|
10
|
|
Adjusted Net Profit
|
|
425
|
|
|
310
|
|
|
275
|
|
(1)
|
For the year ended December 31, 2016 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 Non-Executive Directors' compensation agreement.
|
|
|
At December 31,
|
||||
|
|
2016
|
|
2015
|
||
|
|
(€ million)
|
||||
Cash and cash equivalents
|
|
458
|
|
|
183
|
|
Deposits in FCA's cash management pools
|
|
—
|
|
|
139
|
|
Financial liabilities with third parties
|
|
(1,848
|
)
|
|
(2,257
|
)
|
Financial liabilities with FCA Group
|
|
—
|
|
|
(3
|
)
|
Net Debt
|
|
(1,390
|
)
|
|
(1,938
|
)
|
Funded portion of the self-liquidating financial receivables portfolio
|
|
737
|
|
|
1,141
|
|
Net Industrial Debt
|
|
(653
|
)
|
|
(797
|
)
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(€ million)
|
|||||||
Cash flows from operating activities
|
|
1,005
|
|
|
707
|
|
|
426
|
|
Cash flows used in investing activities
|
|
(320
|
)
|
|
(317
|
)
|
|
(290
|
)
|
Free Cash Flow
|
|
685
|
|
|
390
|
|
|
136
|
|
Change in the self-liquidating financial receivables portfolio
|
|
(405
|
)
|
|
39
|
|
|
109
|
|
Free Cash Flow from Industrial Activities
|
|
280
|
|
|
429
|
|
|
245
|
|
|
For the years ended December 31,
|
||||||||||||||||
|
2016
|
|
Percentage of net revenues
|
|
2015
|
|
Percentage of net revenues
|
|
2014
|
|
Percentage of net revenues
|
||||||
|
(€ million, except percentages)
|
||||||||||||||||
Net revenues
|
3,105
|
|
|
100.0
|
%
|
|
2,854
|
|
|
100.0
|
%
|
|
2,762
|
|
|
100.0
|
%
|
Cost of sales
|
1,580
|
|
|
50.9
|
%
|
|
1,499
|
|
|
52.5
|
%
|
|
1,506
|
|
|
54.5
|
%
|
Selling, general and administrative costs
|
295
|
|
|
9.5
|
%
|
|
339
|
|
|
11.9
|
%
|
|
300
|
|
|
10.9
|
%
|
Research and development costs
|
614
|
|
|
19.8
|
%
|
|
562
|
|
|
19.7
|
%
|
|
541
|
|
|
19.6
|
%
|
Other expenses, net
|
24
|
|
|
0.8
|
%
|
|
10
|
|
|
0.4
|
%
|
|
26
|
|
|
0.9
|
%
|
Result from investments
|
3
|
|
|
0.2
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
EBIT
|
595
|
|
|
19.2
|
%
|
|
444
|
|
|
15.6
|
%
|
|
389
|
|
|
14.1
|
%
|
Net financial (expenses)/income
|
(28
|
)
|
|
(0.9
|
)%
|
|
(10
|
)
|
|
(0.4
|
)%
|
|
9
|
|
|
0.3
|
%
|
Profit before taxes
|
567
|
|
|
18.3
|
%
|
|
434
|
|
|
15.2
|
%
|
|
398
|
|
|
14.4
|
%
|
Income tax expense
|
167
|
|
|
5.4
|
%
|
|
144
|
|
|
5.0
|
%
|
|
133
|
|
|
4.8
|
%
|
Net profit
|
400
|
|
|
12.9
|
%
|
|
290
|
|
|
10.2
|
%
|
|
265
|
|
|
9.6
|
%
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||||||
|
2016
|
|
Percentage of net revenues
|
|
2015
|
|
Percentage of net revenues
|
|
2014
|
|
Percentage of net revenues
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
||||||||||||||
|
(€ million, except percentages)
|
||||||||||||||||||||||||||||
Cars and spare parts
(1)
|
2,180
|
|
|
70.2
|
%
|
|
2,080
|
|
|
72.9
|
%
|
|
1,944
|
|
|
70.4
|
%
|
|
100
|
|
|
4.8
|
%
|
|
136
|
|
|
7.0
|
%
|
Engines
(2)
|
338
|
|
|
10.9
|
%
|
|
219
|
|
|
7.7
|
%
|
|
311
|
|
|
11.3
|
%
|
|
119
|
|
|
54.5
|
%
|
|
(92
|
)
|
|
(29.6
|
)%
|
Sponsorship, commercial and brand
(3)
|
488
|
|
|
15.7
|
%
|
|
441
|
|
|
15.5
|
%
|
|
417
|
|
|
15.1
|
%
|
|
47
|
|
|
10.7
|
%
|
|
24
|
|
|
5.8
|
%
|
Other
(4)
|
99
|
|
|
3.2
|
%
|
|
114
|
|
|
3.9
|
%
|
|
90
|
|
|
3.2
|
%
|
|
(15
|
)
|
|
(13.8
|
)%
|
|
24
|
|
|
26.7
|
%
|
Total net revenues
|
3,105
|
|
|
100.0
|
%
|
|
2,854
|
|
|
100.0
|
%
|
|
2,762
|
|
|
100.0
|
%
|
|
251
|
|
|
8.8
|
%
|
|
92
|
|
|
3.3
|
%
|
(1)
|
Includes net revenues generated from shipments of our cars, including any personalization net revenues generated on these cars and sales of spare parts.
|
(2)
|
Includes net revenues generated from the sale of engines to Maserati for use in their cars and net revenues generated from the rental of engines to other Formula 1 racing teams.
|
(3)
|
Includes 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.
|
(4)
|
Primarily includes interest income generated by the Ferrari Financial Services entities and net revenues from the management of the racetrack.
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||||||
|
2016
|
|
Percentage of net revenues
|
|
2015
|
|
Percentage of net revenues
|
|
2014
|
|
Percentage of net revenues
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
||||||||||||||
|
(€ million, except percentages)
|
||||||||||||||||||||||||||||
Amortization of capitalized development costs
|
104
|
|
|
3.4
|
%
|
|
115
|
|
|
4.0
|
%
|
|
126
|
|
|
4.6
|
%
|
|
(11
|
)
|
|
(9.4
|
)%
|
|
(11
|
)
|
|
(8.7
|
)%
|
Research and development costs expensed during the year
|
510
|
|
|
16.4
|
%
|
|
447
|
|
|
15.7
|
%
|
|
415
|
|
|
15.0
|
%
|
|
63
|
|
|
14.1
|
%
|
|
32
|
|
|
7.7
|
%
|
Research and development costs
|
614
|
|
|
19.8
|
%
|
|
562
|
|
|
19.7
|
%
|
|
541
|
|
|
19.6
|
%
|
|
52
|
|
|
9.3
|
%
|
|
21
|
|
|
3.9
|
%
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
|||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
|||||||||||
|
(€ million, except percentages)
|
|||||||||||||||||||
Other expenses, net
|
24
|
|
|
10
|
|
|
26
|
|
|
14
|
|
|
122.0
|
%
|
|
(16
|
)
|
|
(61.5
|
)%
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
|||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
|||||||||
|
(€ million, except percentages)
|
|||||||||||||||||
Result from investments
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
n.m.
|
|
—
|
|
|
n.m.
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||||||
|
2016
|
|
Percentage of net revenues
|
|
2015
|
|
Percentage of net revenues
|
|
2014
|
|
Percentage of net revenues
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
||||||||||||||
|
(€ million, except percentages)
|
||||||||||||||||||||||||||||
EBIT
|
595
|
|
|
19.2
|
%
|
|
444
|
|
|
15.6
|
%
|
|
389
|
|
|
14.1
|
%
|
|
151
|
|
|
33.9
|
%
|
|
55
|
|
|
14.1
|
%
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
|||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
|||||||||
|
(€ million, except percentages)
|
|||||||||||||||||
Net financial (expenses)/income
|
(28
|
)
|
|
(10
|
)
|
|
9
|
|
|
(18
|
)
|
|
n.m.
|
|
(19
|
)
|
|
n.m.
|
|
For the years ended December 31,
|
|
Increase/(Decrease)
|
|||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016 vs. 2015
|
|
2015 vs. 2014
|
|||||||||||
|
(€ million, except percentages)
|
|||||||||||||||||||
Income tax expense
|
167
|
|
|
144
|
|
|
133
|
|
|
23
|
|
|
16.3
|
%
|
|
11
|
|
|
8.3
|
%
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ million)
|
|||||||
Cash flows from operating activities
|
1,005
|
|
|
707
|
|
|
426
|
|
Cash flows used in investing activities
|
(320
|
)
|
|
(317
|
)
|
|
(290
|
)
|
Cash flows used in financing activities
|
(411
|
)
|
|
(351
|
)
|
|
(122
|
)
|
Translation exchange differences
|
1
|
|
|
10
|
|
|
6
|
|
Total change in cash and cash equivalents
|
275
|
|
|
49
|
|
|
20
|
|
(i)
|
profit before tax of
€567 million
, adjusted to add back
€248 million
of depreciation and amortization expense and
€82 million
in provisions, partially offset by €33 million related to other non-cash expenses and income and net gains on disposal of property, plant and equipment and intangible assets, as well as €3 million non-cash result from investments. The
€82 million
in provisions accrued was primarily attributable to (a) a warranty and recall campaigns provision of €60 million, of which €37 million related to the Takata airbag inflator recalls and the remainder primarily related to an increase in volumes, and (b) other risks of €22 million, primarily related to disputes with a distributor;
|
(ii)
|
€405 million related to cash generated by a decrease in receivables from financing activities, primarily attributable to a cash payment of €432 million received in November 2016 following the sale by the Group of the majority stake in FFS GmbH to FCA Bank, as a result of which FFS GmbH was deconsolidated by the Group and the funding of FFS GmbH is being directly provided by FCA Bank (see Note 17 to the Consolidated Financial Statements), partially offset by an increase in the financial services portfolio in the United States;
|
(iii)
|
€7 million relating to cash generated by other operating assets and liabilities, which benefited by approximately €69 million from advances received, mainly related to the LaFerrari Aperta;
|
(iv)
|
€16 million related to cash absorbed from the net change in inventories, trade payables and trade receivables. In particular, the movement was attributable to (a) an increase in inventory of €33 million, (b) an increase in trade receivables of €89 million, partially offset by (c) an increase in trade payables of €106 million, all of which were driven by an increase in volumes and Maserati engines; and
|
(v)
|
income tax paid of
€252 million
, primarily related to payments of tax advances on 2016 taxes and the settlement of the 2015 tax balance from the FCA Group tax consolidation.
|
(i)
|
profit before tax of
€434 million
, adjusted to add back
€275 million
of depreciation and amortization expense,
€51 million
in provisions accrued and €29 million related to other non-cash expenses and income and net gains on disposal of property, plant and equipment and intangible assets. The €51 million in provisions accrued was composed of (a) warranty provision of €33 million, primarily related to the increase in cars shipped, and to a lesser extent, a change in mix driven by increased shipments of the LaFerrari and the FXX K, which have higher warranty costs compared to range and special series cars, (b) legal proceedings and disputes of €9 million, and (c) other risks and charges of €9 million. The €29 million related to other non-cash expenses and income and net gains on disposal of property, plant and equipment and intangible assets primarily related to the allowances for doubtful accounts of trade and financial receivables and the inventory provision;
|
(ii)
|
€121 million related to cash generated by a decrease in receivables from financing activities, primarily attributable to the full reimbursement of the financing of inventory related to the establishment of the Maserati standalone business in China, which at December 31, 2014 was equal to €147 million, and the sale of the financial assets portfolios of Ferrari Financial Services S.p.A. and Ferrari Financial Services Japan KK, partially offset by an increase of the financial services portfolio in the USA;
|
(iii)
|
€33 million related to cash absorbed from the net change in inventories, trade payables and trade receivables. In particular, the movement was driven by (a) a decrease in trade payables of €46 million, mainly due to the full production of the LaFerrari in 2014 while at the end of 2015 the product lifecycle was nearing completion and shipments are planned to be completed in the first quarter of 2016, (b) an increase in inventories of €3 million,
|
(iv)
|
€25 million relating to cash absorbed by other operating cash flows, primarily attributable to the net change in other operating assets and liabilities; and
|
(v)
|
income tax paid of €145 million.
|
(i)
|
profit before taxes of €398 million adjusted to add back €289 million for depreciation and amortization expense, €66 million in provisions recognized, and €53 million related to other non-cash expenses and income, relating primarily to the accruals to the allowances for doubtful accounts related to trading and financing activities. In particular, the €66 million accruals to provision was composed of (a) increases in the warranty provision of €27 million due to an increase in cars delivered, and to a lesser extent a reassessment of the estimated cost assumptions used to determine the provision, (b) increases in the provision for legal proceedings and disputes of €24 million, and (c) provisions to cover other risks and charges for €15 million;
|
(ii)
|
€15 million relating to cash generated by other operating cash flows, primarily attributable to the net change in other operating assets and liabilities;
|
(iii)
|
€52 million related to cash absorbed from the net change in inventories, trade payables and trade receivables, primarily driven by (a) an increase in inventories of €66 million, due to increased finished cars at December 31, 2014 as compared to December 31, 2013, and mainly related to inventories of the LaFerrari to be shipped during 2015, partially offset by (b) a €13 million increase in trade payables and (c) a €1 million decrease in trade receivables, driven by management efforts to improve collection rates;
|
(iv)
|
€202 million related to cash absorbed by an increase in receivables from financing activities, mainly driven by an increase in business volumes of Ferrari Financial Services Inc., and in particular due to an increase in the contracts relating to the sale of vintage cars, and to a lesser extent, an increase in the number of contracts relating to new cars; and
|
(v)
|
income tax paid of €141 million.
|
(i)
|
€342 million of capital expenditures, including €176 million related to additions to property, plant and equipment and €166 million relating to additions to intangible assets. For a detailed analysis of additions to property, plant and equipment and intangible assets see “—
Capital Expenditures
” below;
|
(i)
|
€19 million of proceeds from the sale of a majority stake in FFS GmbH to FCA Bank; and
|
(ii)
|
€3 million proceeds from the sale of property, plant and equipment and intangible assets.
|
(i)
|
€356 million of capital expenditures, including €185 related to additions to property, plant and equipment and €171 million relating to additions to intangible assets. For a detailed analysis of additions to property, plant and equipment and intangible assets see “—
Capital Expenditures
” below;
|
(i)
|
€37 million of proceeds from the disposal of assets and liabilities related to investment properties; and
|
(ii)
|
€2 million proceeds from the sale of property, plant and equipment and intangible assets and the net change in investments and other financial assets.
|
(i)
|
€330 million of capital expenditures, including €169 million related to additions to property, plant and equipment and €161 million relating to additions to intangible assets. For a detailed analysis of additions to property, plant and equipment and intangible assets see “—
Capital Expenditures
”;
|
(ii)
|
€39 million related to cash acquired on transactions with the non-controlling interests in Ferrari International Cars Trading (Shanghai) Co. L.t.d.; and
|
(iii)
|
€1 million proceeds from the sale of property, plant and equipment and intangible assets and the net change in investments and other financial assets.
|
(i)
|
€701 million related to principal repayments of the Term Loan, including voluntary prepayments of €600 million (€300 million in September 2016 and €300 million in December 2016) and mandatory scheduled repayments of €92 million and $9 million in December 2016;
|
(ii)
|
€500 million related to the full repayment of the Bridge Loan;
|
(iii)
|
€212 million related to net repayments of other bank borrowings;
|
(iv)
|
€87 million cash distribution of reserves; and
|
(v)
|
€17 million of dividends paid to non-controlling interests in our Chinese distributor, Ferrari International Cars Trading (Shanghai) Co. Ltd;
|
(i)
|
€491 million of net proceeds related to the issuance of the bond (see
“Bond”
below);
|
(ii)
|
€463 million of proceeds net of repayments related to revolving securitization programs in the USA;
|
(iii)
|
€135 million in net proceeds from the settlement of the deposits in FCA Group cash management pools and liabilities with FCA;
|
(iv)
|
€16 million related to net change in other debt; and
|
(v)
|
€1 million of proceeds from the share premium contribution made by FCA in connection with the Restructuring.
|
(i)
|
€3,211 million related to net repayments of financial liabilities with FCA, including repayment of the FCA Note for €2,800 million;
|
(ii)
|
€54 million related to dividends paid to non-controlling interests in our Chinese distributor, Ferrari International Cars Trading (Shanghai) Co. Ltd;
|
(iii)
|
€11 million related to net repayments of other debt; and
|
(iv)
|
€8 million related to the acquisition of non-controlling interests of the subsidiary Ferrari Financial Services S.p.A.
|
(i)
|
€2,119 million related to net proceeds from third-party financial liabilities, including €2,000 million from the new syndicated credit facility, of which €1,500 million under the Term Loan and €500 million under the Bridge Loan were used to repay financial liabilities with FCA, including a portion of the FCA Note, and
|
(ii)
|
€814 million related to the net change in deposits in FCA Group cash management pools, mainly used to repay a portion of the FCA Note.
|
(i)
|
€247 million related to the increase in deposits in FCA’s cash management pools;
|
(ii)
|
€30 million related to net repayments of bank borrowings and other debt; and
|
(iii)
|
€15 million related to dividends paid to non-controlling interest in our Chinese distributor, Ferrari International Cars Trading (Shanghai) Co. L.t.d.
|
(i)
|
€89 million related to net proceeds from the change in financial liabilities with FCA; and
|
(ii)
|
€81 million related to proceeds from third party financial liabilities, driven largely by an increase in borrowings from banks.
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ million)
|
|||||||
Intangible assets
|
|
|
|
|
|
|||
Externally acquired and internally generated development costs
|
141
|
|
|
154
|
|
|
145
|
|
Patents, concessions and licenses
|
12
|
|
|
9
|
|
|
13
|
|
Other intangible assets
|
13
|
|
|
8
|
|
|
3
|
|
Total intangible assets
|
166
|
|
|
171
|
|
|
161
|
|
Property, plant and equipment
|
|
|
|
|
|
|||
Industrial buildings
|
6
|
|
|
24
|
|
|
4
|
|
Plant, machinery and equipment
|
82
|
|
|
118
|
|
|
77
|
|
Other assets
|
7
|
|
|
11
|
|
|
12
|
|
Advances and assets under construction
|
81
|
|
|
32
|
|
|
76
|
|
Total property, plant and equipment
|
176
|
|
|
185
|
|
|
169
|
|
Total capital expenditures
|
342
|
|
|
356
|
|
|
330
|
|
|
|
At December 31,
|
||||
|
|
2016
|
|
2015
|
||
|
|
(€ million)
|
||||
Cash and cash equivalents
|
|
458
|
|
|
183
|
|
Deposits in FCA Group cash management pools
|
|
—
|
|
|
139
|
|
Total liquidity
|
|
458
|
|
|
322
|
|
Term Loan
|
|
(800
|
)
|
|
(1,496
|
)
|
Bridge Loan
|
|
—
|
|
|
(499
|
)
|
Other borrowings from banks
|
|
(37
|
)
|
|
(250
|
)
|
Bond
|
|
(498
|
)
|
|
—
|
|
Securitizations
|
|
(486
|
)
|
|
—
|
|
Other debt
|
|
(27
|
)
|
|
(12
|
)
|
Financial liabilities with FCA Group
|
|
—
|
|
|
(3
|
)
|
Total debt
|
|
(1,848
|
)
|
|
(2,260
|
)
|
Net Debt
|
|
(1,390
|
)
|
|
(1,938
|
)
|
Funded portion of the self-liquidating financial receivables portfolio
|
|
737
|
|
|
1,141
|
|
Net Industrial Debt
|
|
(653
|
)
|
|
(797
|
)
|
|
At At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ million)
|
||||
Cash and cash equivalents
|
458
|
|
|
183
|
|
Deposits in FCA Group cash management pools
|
—
|
|
|
139
|
|
Undrawn committed credit lines
|
500
|
|
|
500
|
|
Total available liquidity
|
958
|
|
|
822
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ million)
|
|||||||
Cash flows from operating activities
|
1,005
|
|
|
707
|
|
|
426
|
|
Cash flows used in investing activities
|
(320
|
)
|
|
(317
|
)
|
|
(290
|
)
|
Free Cash Flow
|
685
|
|
|
390
|
|
|
136
|
|
Change in the self-liquidating financial receivables portfolio
|
(405
|
)
|
|
39
|
|
|
109
|
|
Free Cash Flow from Industrial Activities
|
280
|
|
|
429
|
|
|
245
|
|
|
|
Payments due by period
|
|||||||||||||
|
|
1 year
|
|
1 to 3 years
|
|
3 to 5 years
|
|
After
5 years
|
|
Total
|
|||||
|
|
(€ million)
|
|||||||||||||
Long-term debt
(1)
|
|
349
|
|
|
730
|
|
|
222
|
|
|
500
|
|
|
1,801
|
|
Interest on long-term financial liabilities
(2)
|
|
21
|
|
|
26
|
|
|
16
|
|
|
15
|
|
|
78
|
|
Operating lease obligations
(3)
|
|
2
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
6
|
|
Unconditional minimum purchase obligations
(4)
|
|
93
|
|
|
99
|
|
|
29
|
|
|
7
|
|
|
228
|
|
Purchase obligations
(5)
|
|
48
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
50
|
|
Total contractual obligations
|
|
513
|
|
|
860
|
|
|
268
|
|
|
522
|
|
|
2,163
|
|
(1)
|
Amounts presented relate to the principal amounts of long-term debt and exclude the related interest expense that will be paid when due. For additional information see Note 24 “Debt” to our Consolidated Financial Statements included elsewhere in this document. The table above does not include short-term debt obligations.
|
(2)
|
Amounts include interest payments based on contractual terms and current interest rates on our long-term debt. Interest rates based on variable rates included above were determined using the current rates in effect at December 31, 2016.
|
(3)
|
Operating lease obligations mainly relate to leases for commercial properties and certain assets used in our business.
|
(4)
|
Unconditional minimum purchase obligations relate to our unconditional purchase obligations to purchase a fixed or minimum quantity of goods and/or services from suppliers with fixed and determinable price provisions. From time to time, in the ordinary course of our business, we enter into various arrangements with key suppliers in order to establish strategic and technological advantages. In particular, such agreements primarily relate to the purchase of research and development services and to a lesser extent, tooling obligations. This amount also includes unconditional purchase obligations to purchase a minimum quantity of goods and/or services in connection with certain of our sponsorship contracts.
|
(5)
|
Purchase obligations represent obligations to purchase property, plant and equipment.
|
|
Amount
|
|
|
(€ million)
|
|
Debt
|
1,848
|
|
Short-term debt obligations
|
(52
|
)
|
Amortized cost effects
|
5
|
|
Long-term debt
|
1,801
|
|
Name
|
|
Year of Birth
|
|
Position
|
Sergio Marchionne
|
|
1952
|
|
Chairman, Chief Executive Officer and Executive Director
|
Amedeo Felisa
|
|
1946
|
|
Executive Director
|
John Elkann
|
|
1976
|
|
Vice Chairman and Non-Executive Director
|
Piero Ferrari
|
|
1945
|
|
Vice Chairman and Non-Executive Director
|
Delphine Arnault
|
|
1975
|
|
Non-Executive Director
|
Louis C. Camilleri
|
|
1955
|
|
Senior Non-Executive Director
|
Eddy Cue
|
|
1964
|
|
Non-Executive Director
|
Giuseppina Capaldo
|
|
1969
|
|
Non-Executive Director
|
Sergio Duca
|
|
1947
|
|
Non-Executive Director
|
Lapo Elkann
|
|
1977
|
|
Non-Executive Director
|
Adam Keswick
|
|
1973
|
|
Non-Executive Director
|
Maria Patrizia Grieco
|
|
1952
|
|
Non-Executive Director
|
Elena Zambon
|
|
1964
|
|
Non-Executive Director
|
Name
|
|
Year of Birth
|
|
Position
|
Sergio Marchionne
|
|
1952
|
|
Chairman and Chief Executive Officer
|
Alessandro Gili
|
|
1971
|
|
Chief Financial Officer
|
Maurizio Arrivabene
|
|
1957
|
|
Managing Director of
Gestione Sportiva
|
Luca Fuso
|
|
1961
|
|
Chief Brand Officer
|
Michele Antoniazzi
|
|
1969
|
|
Chief Human Resources Officer
|
Michael Hugo Leiters
|
|
1971
|
|
Chief Technology Officer
|
Enrico Galliera
|
|
1966
|
|
Chief Marketing and Commercial Officer
|
Vincenzo Regazzoni
|
|
1963
|
|
Chief Manufacturing Officer
|
Nicola Boari
|
|
1970
|
|
Head of Product Marketing
|
Flavio Manzoni
|
|
1965
|
|
Head of Design
|
•
|
attracts, retains and motivates qualified executives;
|
•
|
is competitive as compared to the compensation paid by comparable companies;
|
•
|
reinforces our performance driven culture and meritocracy; and
|
•
|
is aligned to shareholders interests.
|
•
|
approve the executive directors’ targets and maximum allowable bonuses;
|
•
|
select the appropriate metrics and their weighting;
|
•
|
set the stretch objectives;
|
•
|
consider any unusual items in a performance year to determine the appropriate measurement of achievement; and
|
•
|
approve the final bonus determination.
|
Hermes
|
Burberry
|
Brunello Cucinelli
|
Ferragamo
|
LVMH
|
Moncler
|
Richemont
|
|
•
|
$200,000 for each non-executive director.
|
•
|
An additional $10,000 for each member of the Audit Committee and $20,000 for the Audit Committee Chairman.
|
•
|
An additional $5,000 for each member of the Compensation Committee and the Governance and Sustainability Committee and $15,000 for the Compensation Committee Chairman and the Governance and Sustainability Committee Chairman.
|
•
|
An additional $25,000 for the lead non-executive director.
|
Name
|
Office held
|
In office from/to
|
Fixed compensation
|
Variable compensation
|
Total
|
|||||||||
In Euro
|
|
|
Base salary
(3)
|
Pension premium
|
Other
|
Cash
|
Other
(4)
|
|
||||||
Sergio Marchionne
(1)
|
Chairman, Chief Executive Officer
(1)
and Executive Director |
01/01/16-05/02/16
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Amedeo Felisa
(2)
|
Chief Executive Officer
(2)
and Executive Director
|
01/01/16-05/02/16
|
980,856
|
|
269,459
|
|
5,500,000
|
|
—
|
|
—
|
|
6,750,315
|
|
John Elkann
|
Vice Chairman and Non-Executive Director
|
04/15/16-12/31/16
|
142,864
|
|
—
|
|
—
|
|
—
|
|
—
|
|
142,864
|
|
Piero Ferrari
|
Vice Chairman and Non-Executive Director
|
01/01/16-12/31/16
|
184,686
|
|
8,924
|
|
—
|
|
—
|
|
—
|
|
193,610
|
|
Delphine Arnault
|
Non-Executive Director
|
04/15/16-12/31/16
|
130,637
|
|
—
|
|
—
|
|
—
|
|
—
|
|
130,637
|
|
Louis C. Camilleri
|
Senior Non-Executive Director
|
01/01/16-12/31/16
|
214,987
|
|
—
|
|
—
|
|
—
|
|
—
|
|
214,987
|
|
Eddy Cue
|
Non-Executive Director
|
01/01/16-12/31/16
|
186,170
|
|
—
|
|
—
|
|
—
|
|
—
|
|
186,170
|
|
Giuseppina Capaldo
|
Non-Executive Director
|
01/01/16-12/31/16
|
195,162
|
|
—
|
|
—
|
|
—
|
|
—
|
|
195,162
|
|
Sergio Duca
|
Non-Executive Director
|
01/01/16-12/31/16
|
204,333
|
|
8,173
|
|
—
|
|
—
|
|
—
|
|
212,506
|
|
Lapo Elkann
|
Non-Executive Director
|
04/15/16-12/31/16
|
130,637
|
|
3,028
|
|
—
|
|
—
|
|
—
|
|
133,665
|
|
Adam Keswick
|
Non-Executive Director
|
04/15/16-12/31/16
|
130,637
|
|
—
|
|
—
|
|
|
|
130,637
|
|
||
Maria Patrizia Grieco
|
Non-Executive Director
|
04/15/16-12/31/16
|
136,750
|
|
—
|
|
—
|
|
—
|
|
—
|
|
136,750
|
|
Elena Zambon
|
Non-Executive Director
|
01/01/16-12/31/16
|
189,138
|
|
—
|
|
—
|
|
—
|
|
—
|
|
189,138
|
|
Name
|
Position
|
Sergio Duca
|
Chairperson
|
Giuseppina Capaldo
|
Member
|
Maria Patrizia Grieco
|
Member
|
•
|
neither have a material relationship with Ferrari, as determined by the Board of Directors nor be performing the functions of auditors or accountants for Ferrari;
|
•
|
be an “independent” member of the Board of Directors under the rules of the NYSE and Rule 10A- 3 under the Exchange Act and within the meaning of the Code; and
|
•
|
be “financially literate” and have “accounting or selected financial management expertise” qualifications, as determined by the Board of Directors.
|
Name
|
Position
|
John Elkann
|
Chairperson
|
Eddy Cue
|
Member
|
Sergio Duca
|
Member
|
Piero Ferrari
|
Member
|
Name
|
Position
|
Louis Camilleri
|
Chairperson
|
John Elkann
|
Member
|
Elena Zambon
|
Member
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
White collar employees
|
1,407
|
|
|
1,304
|
|
|
1,177
|
|
Italy
|
1,216
|
|
|
1,143
|
|
|
1,045
|
|
Rest of the world
|
191
|
|
|
161
|
|
|
132
|
|
Blue collar employees
|
1,751
|
|
|
1,607
|
|
|
1,603
|
|
Italy
|
1,748
|
|
|
1,604
|
|
|
1,600
|
|
Rest of the world
|
3
|
|
|
3
|
|
|
3
|
|
Executives
|
90
|
|
|
87
|
|
|
78
|
|
Total
|
3,248
|
|
|
2,998
|
|
|
2,858
|
|
Name
|
Common Shares
|
Special Voting Shares
|
||
Piero Ferrari
|
18,893,798
|
|
18,892,160
|
|
Sergio Marchionne
|
1,462,000
|
|
—
|
|
Louis C. Camilleri
|
2,863
|
|
—
|
|
Adam Keswick
|
2,065
|
|
—
|
|
Delphine Arnault
|
2,873
|
|
—
|
|
Eddy Cue
|
2,103
|
|
—
|
|
Elena Zambon
|
1,436
|
|
—
|
|
John Elkann
|
15,003
|
|
—
|
|
Lapo Elkann
|
1,381
|
|
—
|
|
Shareholder
|
Number of common shares
|
Percentage owned
(1)
|
||
Exor N.V.
(2)
|
44,435,280
|
|
23.5
|
%
|
Piero Ferrari
(2)
|
18,893,798
|
|
10.0
|
%
|
T. Rowe Price Associates, Inc.
(3)
|
17,139,889
|
|
9.1
|
%
|
Public shareholders
|
108,474,950
|
|
57.4
|
%
|
•
|
the sale of engines and car bodies to Maserati S.p.A. (“Maserati”) which is controlled by the FCA Group;
|
•
|
the purchase of engine components for the use in the production of Maserati engines from FCA US LLC, which is controlled by FCA Group;
|
•
|
the purchase of automotive lighting and automotive components from Magneti Marelli S.p.A., Automotive Lighting Italia S.p.A., Sistemi Sospensioni S.p.A. and Magneti Marelli Powertrain Slovakia s.r.o., which are controlled by the FCA Group;
|
•
|
transactions with other FCA Group companies, mainly relating to the services provided by FCA Group companies, including human resources, payroll, tax, customs and procurement of insurance coverage and sponsorship revenues for the display of FCA Group company logos on the Formula 1 cars;
|
•
|
the Group sold a portion of its trade and financial receivables to the FCA Bank Group, which is a joint venture between FCA Group and Credit Agricole. On derecognition of the asset, the difference between the carrying amount and the consideration received or receivable was recognized in cost of sales;
|
•
|
on November 2016, the Group finalized an agreement with FCA Bank to provide financial services in Europe. Under such agreement FCA Bank acquired from the Group a majority stake in FFS GmbH for a purchase price of €18,595 thousand, which the Group received upon sale. In addition to the purchase price, as a result of the funding of FFS GmbH being directly provided by FCA Bank, the Group also received cash of €431,958 thousand.
|
•
|
certain Ferrari financing companies obtained financing from FCA Group companies. Financial liabilities with FCA Group companies at December 31, 2015 related to the amounts owed under such facilities.
|
•
|
Ferrari Group companies participated in the FCA group-wide cash management system where the operating cash management, main funding operations and liquidity investment of the Group were centrally coordinated by dedicated treasury companies of the FCA Group. Deposits in FCA Group cash management pools represented the Group’s participation in such pools. Deposits with FCA Group earned EURIBOR or LIBOR +15bps.
|
•
|
the Group incurs rental costs from Iveco Group companies related to the rental of trucks used by the Formula 1 racing team;
|
•
|
the Group earns sponsorship revenue from Iveco S.p.A.
|
•
|
the purchase of leather goods from Poltrona Frau S.p.A. (“Poltrona Frau”). Our former Chairman had significant influence over Poltrona Frau until March 25, 2014 when he sold his interest;
|
•
|
the purchase of components for Formula 1 racing cars from COXA S.p.A., controlled by Piero Ferrari;
|
•
|
consultancy services provided by HPE S.r.l., controlled by Piero Ferrari;
|
•
|
sponsorship agreement relating to Formula 1 activities with Philip Morris International, of which Mr. Marchionne is a director and Mr. Camilleri is Chairman, and Ferretti S.p.A.;
|
•
|
sale of cars to certain members of the Board of Directors of Ferrari S.p.A. and Exor.
|
|
NYSE
|
MTA
|
||||||||
|
High
|
|
Low
|
High
|
|
Low
|
||||
|
($)
|
(€)
|
||||||||
Period
|
|
|
|
|
|
|
||||
Fourth quarter 2015
(1)
|
45.66
|
|
|
56.75
|
|
N/A
|
|
|
N/A
|
|
Year ended December 31, 2015
|
56.75
|
|
|
45.66
|
|
N/A
|
|
|
N/A
|
|
Year ended December 31, 2016
|
58.67
|
|
|
32.00
|
|
56.55
|
|
|
28.00
|
|
First quarter 2016
|
48.49
|
|
|
32.00
|
|
44.60
|
|
|
28.00
|
|
Second quarter 2016
|
45.85
|
|
|
38.88
|
|
39.75
|
|
|
35.39
|
|
Third quarter 2016
|
51.87
|
|
|
39.54
|
|
46.23
|
|
|
35.85
|
|
Fourth quarter 2016
|
58.67
|
|
|
50.40
|
|
56.55
|
|
|
45.60
|
|
Monthly
|
|
|
|
|
|
|
|
|
|
|
August 2016
|
49.11
|
|
|
45.78
|
|
43.45
|
|
|
41.52
|
|
September 2016
|
51.87
|
|
|
46.65
|
|
46.23
|
|
|
41.56
|
|
October 2016
|
53.84
|
|
|
52.06
|
|
48.75
|
|
|
47.35
|
|
November 2016
|
54.89
|
|
|
50.50
|
|
52.10
|
|
|
45.60
|
|
December 2016
|
58.67
|
|
|
54.09
|
|
56.55
|
|
|
50.80
|
|
January 2017
|
62.68
|
|
|
58.28
|
|
58.15
|
|
|
55.05
|
|
February 2017
|
66.19
|
|
|
62.14
|
|
62.50
|
|
|
57.60
|
|
•
|
a resolution to reduce the issued share capital;
|
•
|
a resolution to amend the Ferrari Articles of Association;
|
•
|
a resolution to restrict or exclude rights of pre-emption;
|
•
|
a resolution to authorize the Ferrari Board of Directors to restrict or exclude shareholder rights of pre-emption;
|
•
|
a resolution to enter into a legal merger or a legal demerger; or
|
•
|
a resolution to dissolve Ferrari.
|
•
|
immediately after Ferrari common shares are listed on the MTA of the number of shares he/she holds and the number of votes he/she is entitled to cast in respect of Ferrari’s issued and outstanding share capital, and
|
•
|
subsequently of each change in the number of shares he/she holds and of each change in the number of votes he/she is entitled to cast in respect of Ferrari’s issued and outstanding share capital, immediately after the relevant change.
|
•
|
an order requiring appropriate disclosure;
|
•
|
suspension of the right to exercise the voting rights for a period of up to three years as determined by the court;
|
•
|
voiding a resolution adopted by the General Meeting, if the court determines that the resolution would not have been adopted but for the exercise of the voting rights of the person with a duty to disclose, or suspension
|
•
|
an order to refrain, during a period of up to five years as determined by the court, from acquiring shares and/or voting rights in Ferrari. Shareholders are advised to consult with their own legal advisers to determine whether the disclosure obligations apply to them.
|
•
|
a dealer in securities or foreign currencies,
|
•
|
a regulated investment company,
|
•
|
a trader in securities that elects to use a mark-to-market method of accounting for securities holdings,
|
•
|
a tax-exempt organization,
|
•
|
a bank, financial institution, or insurance company,
|
•
|
a person liable for the alternative minimum tax,
|
•
|
a person that actually or constructively owns 10 percent or more, by vote or value, of Ferrari,
|
•
|
a person that holds common shares or special voting shares of Ferrari as part of a straddle or a hedging, conversion, or other risk reduction transaction for U.S. federal income tax purposes,
|
•
|
a person that acquired common shares or special voting shares of Ferrari pursuant to the exercise of employee stock options or otherwise as compensation, or
|
•
|
a person whose functional currency is not the U.S. Dollar.
|
•
|
an individual that is a citizen or resident of the United States;
|
•
|
a corporation, or other entity taxable as a corporation, created or organized under the laws of the United States;
|
•
|
an estate whose income is subject to U.S. federal income tax regardless of its source; or
|
•
|
a trust if (i) a U.S. court can exercise primary supervision over the trust’s administration and one or more U.S. persons are authorized to control all substantial decisions of the trust or (ii) the trust has made a valid election under applicable Treasury Regulations to be treated as a U.S. person.
|
•
|
75 percent or more of Ferrari’s gross income for the taxable year consists of “passive income” (including dividends, interest, gains from the sale or exchange of investment property and rents and royalties other than rents and royalties that are received from unrelated parties in connection with the active conduct of a trade or business, as defined in applicable Treasury Regulations); or
|
•
|
at least 50 percent of its assets for the taxable year (averaged over the year and determined based upon value) produce or are held for the production of passive income.
|
1.
|
an owner of one or more Ferrari common shares and/or Ferrari special voting shares who in addition to the title to such Ferrari common shares and/or Ferrari special voting shares, has an economic interest in such Ferrari common shares and/or Ferrari special voting shares;
|
2.
|
a person who or an entity that holds the entire economic interest in one or more Ferrari common shares and/or Ferrari special voting shares;
|
3.
|
a person who or an entity that holds an interest in an entity, such as a partnership or a mutual fund, that is transparent for Dutch tax purposes, the assets of which comprise one or more Ferrari common shares and/or Ferrari special voting shares, within the meaning of 1. or 2. above; or
|
4.
|
a person who is deemed to hold an interest in Ferrari common shares and/or Ferrari special voting shares, as referred to under 1. to 3., pursuant to the attribution rules of article 2.14a, of the Dutch Income Tax Act 2001 (
Wet inkomstenbelasting 2001
), with respect to property that has been segregated, for instance in a trust or a foundation.
|
1.
|
such holder derives profits from an enterprise directly, or pursuant to a co-entitlement to the net value of such enterprise, other than as a holder of securities, which enterprise either is managed in the Netherlands or carried on, in whole or in part, through a permanent establishment or a permanent representative which is taxable in the Netherlands, and such holder’s Ferrari common shares and, if applicable, Ferrari special voting shares are attributable to such enterprise; or
|
2.
|
such holder is an individual and such holder derives benefits from Ferrari common shares and, if applicable, Ferrari special voting shares that are taxable as benefits from miscellaneous activities (
resultaat uit overige werkzaamheden
) in the Netherlands. Such holder may, inter alia, derive, or be deemed to derive, benefits from Ferrari common shares and, if applicable, Ferrari special voting shares that are taxable as benefits from miscellaneous activities if such holder’s investment activities go beyond the activities of an active portfolio investor, for instance in the case of use of insider knowledge or comparable forms of special knowledge.
|
|
Benefits derived or deemed to be derived from certain miscellaneous activities by a child or a foster child who is under eighteen years of age are attributed to the parent who exercises, or the parents who exercise, authority over the child, irrespective of the country of residence of the child.
|
•
|
“CITA”: Presidential Decree No. 917 of December 22, 1986 (the Consolidated Income Tax Act);
|
•
|
“EEA State”: a State that is party to the European Economic Area Agreement;
|
•
|
“IRES”: Italian corporate income tax;
|
•
|
|
•
|
“Italian White List”: the list of countries and territories allowing a satisfactory exchange of information with Italy currently included in the Italian Ministerial Decree of September 3, 1996, as subsequently amended by Ministerial Decree 9 August 2016, published on the Official Gazette n. 195 of 22 August 2016. The list is expected to be updated each six months. Countries can be removed from the list if their tax authorities consistently do not co-operate with the Italian tax authorities on the exchange of tax information;
|
•
|
“Non-Qualified Holdings”: holdings of common shares in Ferrari, including rights or securities through which Ferrari common shares may be acquired, other than Qualified Holdings;
|
•
|
“Qualified Holdings”: holdings of common shares in Ferrari, including rights or securities through which Ferrari common shares may be acquired, that represent, in case of shares listed on regulated markets, either (i) more than two percent of the overall voting rights exercisable at ordinary shareholders’ meetings or (ii) an interest in Ferrari’s issued and outstanding capital in excess of 5 percent; and
|
•
|
“Transfer of Qualified Holdings”: transfers of common shares in Ferrari, including rights or securities through which Ferrari common shares may be acquired, that exceed, over a period of 12 (twelve) months, the threshold for qualifying as Qualified Holdings. The twelve-month period starts from the date when the shares, securities and the rights owned represent a percentage of voting rights or interest in Ferrari’s capital that exceeds the aforesaid thresholds. In case of rights or securities through which Ferrari common shares may be acquired, the percentage of voting rights or interest in Ferrari’s capital potentially attributable to the holding of such rights and securities is taken into account.
|
(A)
|
I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Individuals not engaged in business activity
|
(ii)
|
Individuals not engaged in business activity and holding the Ferrari common shares under the “risparmio gestito” regime
|
(iii)
|
Sole Proprietors
|
(iv)
|
Partnerships (Italian “società in nome collettivo”, “società in accomandita semplice”, “società semplici
”
and similar Italian partnerships as referred to in Article 5 CITA), as well as companies and other business entities referred to in Article 73(1)(a)-(b) CITA
|
(v)
|
Non-business entities referred to in Article 73(1)(c) CITA
|
(vi)
|
Persons exempt from IRES and persons outside the scope of IRES
|
(vii)
|
Pension funds and OICR (other than Real Estate AIF)
|
(viii)
|
Real Estate AIF
|
(B)
|
N
ON
-I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Non-resident persons holding the common shares in Ferrari through a permanent establishment in Italy
|
(ii)
|
Non-resident persons that do not hold the common shares in Ferrari through a permanent establishment in Italy
|
(iii)
|
U.S. holders (without permanent establishment in Italy) of Ferrari common shares and, if applicable, Ferrari special voting shares
|
(A)
|
I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Individuals not engaged in business activity
|
(ii)
|
Sole Proprietors, business partnerships (Italian “società in nome collettivo,” “società in accomandita semplice” and similar Italian partnerships as referred to in Article 5 CITA), as well as companies and other business entities referred to in Article 73(1)(a)-(b) CITA
|
(iii)
|
Non-business entities referred to in Article 73(1)(c) CITA
|
(iv)
|
Persons exempt from IRES
|
(v)
|
Pension funds and OICR (other than Real Estate AIF)
|
(vi)
|
Real Estate AIF
|
(B)
|
N
ON
-I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Non-resident persons that do not hold the common shares in Ferrari through a permanent establishment in Italy
|
(ii)
|
Non-resident persons holding the common shares in Ferrari through a permanent establishment in Italy
|
(A)
|
I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Italian resident individuals not engaged in business activity
|
a.
|
Tax return regime ("
regime della dichiarazione"
). Under this regime, capital gains and capital losses realized during the tax year must be reported in the income tax return. CGT is computed on capital gains net of capital losses of the same nature and must be paid by the term for paying the balance of the annual income tax. Capital losses in excess of capital gains may be carried forward and offset against capital gains realized in any of the four following tax years. Capital losses may be carried forward and offset against capital gains of the same nature realized after June 30, 2014, but up to the following amount in case of capital losses realized up to June 30, 2014: (i) 48.08 percent of the relevant capital losses realized before January 1, 2012, and (ii) 76.92 percent of the capital losses realized from January 1, 2012 to June 30, 2014. This regime is the default regime if the taxpayer does not elect into any of the two alternative regimes described in (b) and (c) below.
|
b.
|
Nondiscretionary investment portfolio regime ("
risparmio amministrato"
) (optional). Under this regime, CGT is applied separately on capital gains realized on each transfer of common shares in Ferrari. This regime is allowed subject to (x) the Ferrari common shares being managed or in custody with Italian banks, broker-dealers ("
società di intermediazione mobiliare"
) or certain authorized financial intermediaries; and (y) an express election for the nondiscretionary investment portfolio regime being made in writing in due time by the relevant holder. Under this regime, the financial intermediary is responsible for accounting for and paying (on behalf of the taxpayer) CGT in respect of capital gains realized on each transfer of the common shares in Ferrari (as well as in respect of capital gains realized at revocation of the intermediary’s mandate), net of any relevant capital losses of the same nature. Capital losses may be carried forward and offset against capital gains of the same nature realized within the same relationship of deposit in the same tax year or in the following tax years up to the fourth. Capital losses may be carried forward and offset against capital gains of the same nature realized after June 30, 2014, but up to the following amount in case of capital losses realized up to June 30, 2014: (i) 48.08 percent of the relevant capital losses realized before January 1, 2012, and (ii) 76.92 percent of the capital losses realized from January 1, 2012 to June 30, 2014. Under this regime, the holder is not required to report capital gains in the annual income tax return.
|
c.
|
Discretionary investment portfolio regime ("
risparmio gestito"
) (optional). This regime is allowed for holders who have entrusted the management of their financial assets, including the Ferrari common shares, to an authorized intermediary and have elected in writing into this regime. Under this regime, capital gains accrued on the Ferrari common shares are included in the computation of the annual increase in value of the managed assets accrued (even if not realized) at year end, which is subject to CGT. The managing authorized intermediary applies the tax on behalf of the taxpayer. Any decrease in value of the managed assets accrued at year end may be carried forward and offset against any increase in value of the managed assets accrued in any of the four following tax years. Decreases in value of the managed assets may be carried forward and offset against any subsequent increase in value accrued at July 1, 2014, but up to the following amount in case of decreases in value occurred up to June 30, 2014: (i) 48.08 percent of the relevant decreases in value occurred before January 1, 2012; and (ii) 76.92 percent of the decreases in value occurred from January 1, 2012 to June 30, 2014. Under this regime, the holder is not required to report capital gains in the annual income tax return.
|
(ii)
|
Sole Proprietors and business partnerships (Italian “società in nome collettivo,” “società in accomandita semplice” and similar Italian partnerships as referred to in Article 5 CITA)
|
(iii)
|
Companies and other business entities referred to in Article 73(1)(a)-(b) CITA
|
a.
|
The common shares in Ferrari have been uninterruptedly held as of the first day of the twelfth month prior to the transfer, treating the Ferrari common shares acquired on the most recent date as being transferred first (on a “last in first out” basis); and
|
b.
|
The common shares in Ferrari have been booked as fixed financial assets in the first financial statements closed during the holding period. In case of holders that draft their financial statements according to IAS / IFRS international accounting standards, the common shares in Ferrari are deemed as fixed financial assets if they are not accounted as “held for trading”.
|
(iv)
|
Non-business entities referred to in Article 73(1)(c) CITA and non-business partnerships referred to in Article 5 CITA
|
(v)
|
Pension funds and OICR (other than Real Estate AIF)
|
(vi)
|
Real Estate AIF
|
(B)
|
N
ON
-I
TALIAN
R
ESIDENT
P
ERSONS
|
(i)
|
Non-resident persons holding the common shares in Ferrari through a permanent establishment in Italy
|
b.
|
Qualified Holdings. Capital gains realized by non-Italian resident holders without a permanent establishment in Italy upon Transfers of Qualified Holdings are included in the holder’s income taxable in Italy according to the same rules as applicable to Italian resident individuals not engaged in business activity. These capital gains must be reported in the annual income tax return and cannot be subject to the nondiscretionary investment portfolio regime or the discretionary investment portfolio regime. However, the provisions of double tax treaties entered into by Italy may apply if more favorable.
|
(i)
|
Transfer of ownership of the Ferrari shares
|
(ii)
|
High-frequency trading
|
a.
|
At a rate of 4 percent in case of transfers made to the spouse or relatives in direct line, on the portion of the global net value of the transferred assets, if any, exceeding, for each beneficiary, €1,000,000.00.
|
b.
|
At a rate of 6 percent in case of transfers made to relatives up to the fourth degree or relatives-in-law up to the third degree on the entire value of the transferred assets (in the case of transfers to brothers or sisters, the six percent rate is applicable only on the portion of the global net value of the transferred assets, if any, exceeding, for each beneficiary, €100,000.00).
|
c.
|
At a rate of 8 percent in any other case.
|
•
|
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
2016
, the total trade flows exposed to foreign currency exchange rate risk amounted to the equivalent of 57 percent of the Group’s turnover (53 percent in
2015
).
|
•
|
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 Mexico and other markets where the U.S. Dollar is the reference currency. In
2016
, the value of commercial activity exposed to fluctuations in the Euro/U.S. Dollar exchange rate accounted for about 60 percent (67 percent in
2015
) of the total currency risk from commercial activity. Other significant exposures included the exchange rate between the Euro and the following currencies: Swiss Franc, Pound Sterling, Canadian Dollar, Australian Dollar, Japanese Yen, Chinese Yuan and Hong Kong Dollar. None of these exposures, taken individually, exceeded 10 percent of the Group’s total foreign currency exchange rate exposure for commercial
|
•
|
Several subsidiaries are located in countries that are outside the Eurozone, in particular the United States, the United Kingdom, Switzerland, China, Hong Kong, Japan, Australia and Singapore. As the Group’s reporting currency is the Euro, the income statements of those companies are converted 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 restated in 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.
|
Exhibit Number
|
Description of Documents
|
1.1
|
English translation of the Articles of Association of Ferrari N.V. (incorporated by reference to Exhibit 3.2 to Registration Statement Registration Statement on Form F-1 (File No. 333-205804))
|
1.2
|
English translation of the Deed of Incorporation of Ferrari N.V. (incorporated by reference to Exhibit 3.1 to Registration Statement Registration Statement on Form F-1 (File No. 333-205804))
|
2.1
|
Trust Deed, dated March 16, 2016, between Ferrari N.V. and Citicorp Trustee Company Limited as trustee, relating to 1.5000% Notes due 16 March 2023
|
4.1
|
Credit agreement, dated November 30, 2015, among Ferrari N.V., Ferrari S.p.A., Ferrari Financial Services, Inc., Ferrari Financial Services AG, Bank of America Merrill Lynch International Limited, as facility agent, and the lead arrangers and bookrunners named therein
,
relating to term loan and multicurrency revolving credit facilities in an aggregate amount of up to €2,500,000,000 (incorporated by reference to Exhibit 4.1 to Annual Report on Form 20-F (File No. 001-37596))
|
8.1
|
List of subsidiaries of the registrant
|
12.1
|
Certification of the Chief Executive Officer Pursuant to the Securities Exchange Act Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
12.2
|
Certification of the Chief Financial Officer Pursuant to the Securities Exchange Act Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
13.1
|
Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
|
13.2
|
Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
|
|
Ferrari N.V.
|
|
|
|
|
|
By:
|
/s/ Alessandro Gili
|
|
|
|
|
|
|
|
Name: Alessandro Gili
|
|
|
Title: Chief Financial Officer
|
|
|
|
|
|
|
Page
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
For the years ended December 31,
|
|||||||
|
Note
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
|
(€ thousand)
|
|||||||
Net revenues
|
4
|
|
3,105,084
|
|
|
2,854,369
|
|
|
2,762,360
|
|
Cost of sales
|
5
|
|
1,579,690
|
|
|
1,498,806
|
|
|
1,505,889
|
|
Selling, general and administrative costs
|
6
|
|
295,242
|
|
|
338,626
|
|
|
300,090
|
|
Research and development costs
|
7
|
|
613,635
|
|
|
561,582
|
|
|
540,833
|
|
Other expenses, net
|
8
|
|
24,501
|
|
|
11,035
|
|
|
26,080
|
|
Result from investments
|
9
|
|
3,066
|
|
|
—
|
|
|
—
|
|
EBIT
|
|
|
595,082
|
|
|
444,320
|
|
|
389,468
|
|
Net financial (expenses)/income
|
10
|
|
(27,729
|
)
|
|
(10,151
|
)
|
|
8,765
|
|
Profit before taxes
|
|
|
567,353
|
|
|
434,169
|
|
|
398,233
|
|
Income tax expense
|
11
|
|
167,635
|
|
|
144,115
|
|
|
133,218
|
|
Net profit
|
|
|
399,718
|
|
|
290,054
|
|
|
265,015
|
|
Net profit attributable to:
|
|
|
|
|
|
|
|
|||
Owners of the parent
|
|
|
398,762
|
|
|
287,816
|
|
|
261,371
|
|
Non-controlling interests
|
3
|
|
956
|
|
|
2,238
|
|
|
3,644
|
|
Basic and diluted earnings per common share (in €)
|
13
|
|
2.11
|
|
|
1.52
|
|
|
1.38
|
|
|
|
|
For the years ended December 31,
|
|||||||
|
Note
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
|
(€ thousand)
|
|||||||
Net profit
|
|
|
399,718
|
|
|
290,054
|
|
|
265,015
|
|
Items that will not be reclassified to the consolidated income statement in subsequent periods:
|
|
|
|
|
|
|
|
|||
Gains/(losses) on remeasurement of defined benefit plans
|
21
|
|
(1,448
|
)
|
|
898
|
|
|
(4,739
|
)
|
Related tax impact
|
21
|
|
(18
|
)
|
|
(308
|
)
|
|
1,061
|
|
Total items that will not be reclassified to the consolidated income statement in subsequent periods
|
|
|
(1,466
|
)
|
|
590
|
|
|
(3,678
|
)
|
Items that may be reclassified to the consolidated income statement in subsequent periods:
|
|
|
|
|
|
|
|
|||
Gains/(losses) on cash flow hedging instruments
|
21
|
|
51,086
|
|
|
8,234
|
|
|
(148,341
|
)
|
Exchange differences on translating foreign operations
|
21
|
|
4,118
|
|
|
13,344
|
|
|
27,836
|
|
Related tax impact
|
21
|
|
(16,943
|
)
|
|
(2,600
|
)
|
|
46,588
|
|
Total items that may be reclassified to the consolidated income statement in subsequent periods
|
|
|
38,261
|
|
|
18,978
|
|
|
(73,917
|
)
|
Total other comprehensive income/(loss), net of tax
|
|
|
36,795
|
|
|
19,568
|
|
|
(77,595
|
)
|
Total comprehensive income
|
|
|
436,513
|
|
|
309,622
|
|
|
187,420
|
|
Total comprehensive income attributable to:
|
|
|
|
|
|
|
|
|||
Owners of the parent
|
|
|
435,691
|
|
|
306,699
|
|
|
181,375
|
|
Non-controlling interests
|
|
|
822
|
|
|
2,923
|
|
|
6,045
|
|
|
|
|
At December 31,
|
||||
|
Note
|
|
2016
|
|
2015
|
||
|
|
|
(€ thousand)
|
||||
Assets
|
|
|
|
|
|
||
Goodwill
|
14
|
|
785,182
|
|
|
787,178
|
|
Intangible assets
|
15
|
|
354,394
|
|
|
307,810
|
|
Property, plant and equipment
|
16
|
|
669,283
|
|
|
626,130
|
|
Investments and other financial assets
|
17
|
|
33,935
|
|
|
11,836
|
|
Deferred tax assets
|
11
|
|
119,357
|
|
|
122,622
|
|
Total non-current assets
|
|
|
1,962,151
|
|
|
1,855,576
|
|
Inventories
|
18
|
|
323,998
|
|
|
295,436
|
|
Trade receivables
|
19
|
|
243,977
|
|
|
158,165
|
|
Receivables from financing activities
|
19
|
|
790,377
|
|
|
1,173,825
|
|
Current tax receivables
|
19
|
|
1,312
|
|
|
15,369
|
|
Other current assets
|
19
|
|
53,729
|
|
|
46,477
|
|
Current financial assets
|
20
|
|
16,276
|
|
|
8,626
|
|
Deposits in FCA Group cash management pools
|
19
|
|
—
|
|
|
139,172
|
|
Cash and cash equivalents
|
|
|
457,784
|
|
|
182,753
|
|
Total current assets
|
|
|
1,887,453
|
|
|
2,019,823
|
|
Total assets
|
|
|
3,849,604
|
|
|
3,875,399
|
|
|
|
|
|
|
|
||
Equity/(Deficit) and liabilities
|
|
|
|
|
|
||
Equity/(Deficit) attributable to owners of the parent
|
|
|
324,995
|
|
|
(25,123
|
)
|
Non-controlling interests
|
|
|
4,810
|
|
|
5,720
|
|
Total equity/(deficit)
|
21
|
|
329,805
|
|
|
(19,403
|
)
|
|
|
|
|
|
|
||
Employee benefits
|
22
|
|
91,024
|
|
|
78,373
|
|
Provisions
|
23
|
|
215,227
|
|
|
141,847
|
|
Deferred tax liabilities
|
11
|
|
13,111
|
|
|
23,345
|
|
Debt
|
24
|
|
1,848,041
|
|
|
2,260,390
|
|
Other liabilities
|
25
|
|
656,275
|
|
|
654,784
|
|
Other financial liabilities
|
20
|
|
39,638
|
|
|
103,332
|
|
Trade payables
|
26
|
|
614,888
|
|
|
507,499
|
|
Current tax payables
|
|
|
41,595
|
|
|
125,232
|
|
Total equity/(deficit) and liabilities
|
|
|
3,849,604
|
|
|
3,875,399
|
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(€ thousand)
|
|||||||
Cash and cash equivalents at beginning of the year
|
|
182,753
|
|
|
134,278
|
|
|
113,786
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|||
Profit before taxes
|
|
567,353
|
|
|
434,169
|
|
|
398,233
|
|
Amortization and depreciation
|
|
247,717
|
|
|
274,757
|
|
|
288,982
|
|
Provision accruals
|
|
82,418
|
|
|
50,873
|
|
|
66,274
|
|
Result of investments
|
|
(3,066
|
)
|
|
—
|
|
|
—
|
|
Other non-cash (income) / expenses
|
|
(30,291
|
)
|
|
36,230
|
|
|
53,348
|
|
Net gains on disposal of property, plant and equipment and intangible assets
|
|
(2,652
|
)
|
|
(6,964
|
)
|
|
(742
|
)
|
Change in inventories
|
|
(33,187
|
)
|
|
(2,885
|
)
|
|
(65,548
|
)
|
Change in trade receivables
|
|
(88,847
|
)
|
|
15,693
|
|
|
824
|
|
Change in trade payables
|
|
106,163
|
|
|
(45,792
|
)
|
|
12,986
|
|
Change in receivables from financing activities
|
|
404,568
|
|
|
120,902
|
|
|
(201,692
|
)
|
Change in other operating assets and liabilities
|
|
7,149
|
|
|
(24,698
|
)
|
|
14,322
|
|
Income tax paid
|
|
(252,026
|
)
|
|
(145,017
|
)
|
|
(140,920
|
)
|
Total
|
|
1,005,299
|
|
|
707,268
|
|
|
426,067
|
|
|
|
|
|
|
|
|
|||
Cash flows used in investing activities:
|
|
|
|
|
|
|
|||
Investments in property, plant and equipment
|
|
(175,647
|
)
|
|
(184,910
|
)
|
|
(169,363
|
)
|
Investments in intangible assets
|
|
(166,340
|
)
|
|
(171,033
|
)
|
|
(160,635
|
)
|
Change in investments and other financial assets
|
|
—
|
|
|
377
|
|
|
(358
|
)
|
Cash acquired in change in scope of consolidation
|
|
—
|
|
|
—
|
|
|
38,751
|
|
Proceeds from the sale of property, plant and equipment and intangible assets
|
|
2,931
|
|
|
1,370
|
|
|
1,828
|
|
Proceeds from the sale of assets and liabilities related to investment properties
|
|
—
|
|
|
37,130
|
|
|
—
|
|
Proceeds from the sale of a majority stake in FFS GmbH
|
|
18,595
|
|
|
—
|
|
|
—
|
|
Total
|
|
(320,461
|
)
|
|
(317,066
|
)
|
|
(289,777
|
)
|
|
|
|
|
|
|
|
|||
Cash flows used in financing activities:
|
|
|
|
|
|
|
|||
Proceeds from Term Loan and Bridge Loan
|
|
—
|
|
|
1,994,712
|
|
|
—
|
|
Repayment of Term Loan
|
|
(700,846
|
)
|
|
—
|
|
|
—
|
|
Repayment of Bridge Loan
|
|
(500,000
|
)
|
|
—
|
|
|
—
|
|
Net change in other bank borrowings
|
|
(211,832
|
)
|
|
123,993
|
|
|
79,030
|
|
Proceeds from securitizations, net of repayments
|
|
462,700
|
|
|
—
|
|
|
—
|
|
Proceeds from bond
|
|
490,729
|
|
|
—
|
|
|
—
|
|
Net change in deposits in FCA Group cash management pools and financial liabilities with FCA Group
|
|
135,094
|
|
|
(2,396,422
|
)
|
|
(157,959
|
)
|
Net change in other debt
|
|
15,847
|
|
|
(11,114
|
)
|
|
(27,638
|
)
|
Acquisition of non-controlling interest
|
|
—
|
|
|
(8,500
|
)
|
|
—
|
|
Change in equity
|
|
1,384
|
|
|
—
|
|
|
—
|
|
Cash distribution of reserves
|
|
(86,905
|
)
|
|
—
|
|
|
—
|
|
Dividends paid to non-controlling interest
|
|
(17,207
|
)
|
|
(53,942
|
)
|
|
(15,050
|
)
|
Total
|
|
(411,036
|
)
|
|
(351,273
|
)
|
|
(121,617
|
)
|
|
|
|
|
|
|
|
|||
Translation exchange differences
|
|
1,229
|
|
|
9,546
|
|
|
5,819
|
|
Total change in cash and cash equivalents
|
|
275,031
|
|
|
48,475
|
|
|
20,492
|
|
Cash and cash equivalents at end of the year
|
|
457,784
|
|
|
182,753
|
|
|
134,278
|
|
|
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
|
|
Total
|
||||||||
|
(€ thousand)
|
||||||||||||||||||||||
At January 1, 2014
|
3,778
|
|
|
2,242,315
|
|
|
43,196
|
|
|
4,477
|
|
|
(4,260
|
)
|
|
2,289,506
|
|
|
26,776
|
|
|
2,316,282
|
|
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79,369
|
)
|
|
(79,369
|
)
|
Transaction with non-controlling interest
|
—
|
|
|
(1,263
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,263
|
)
|
|
55,243
|
|
|
53,980
|
|
Net profit
|
—
|
|
|
261,371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
261,371
|
|
|
3,644
|
|
|
265,015
|
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
(101,753
|
)
|
|
25,435
|
|
|
(3,678
|
)
|
|
(79,996
|
)
|
|
2,401
|
|
|
(77,595
|
)
|
Reclassification
(1)
|
—
|
|
|
1,191
|
|
|
—
|
|
|
—
|
|
|
(1,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
At December 31, 2014
|
3,778
|
|
|
2,503,614
|
|
|
(58,557
|
)
|
|
29,912
|
|
|
(9,129
|
)
|
|
2,469,618
|
|
|
8,695
|
|
|
2,478,313
|
|
Transaction with non-controlling interest
|
—
|
|
|
(2,602
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,602
|
)
|
|
(5,898
|
)
|
|
(8,500
|
)
|
Net profit
|
—
|
|
|
287,816
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287,816
|
|
|
2,238
|
|
|
290,054
|
|
Other comprehensive (loss)/income
|
—
|
|
|
—
|
|
|
5,634
|
|
|
12,659
|
|
|
590
|
|
|
18,883
|
|
|
685
|
|
|
19,568
|
|
Restructuring
(2)
|
—
|
|
|
(2,800,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,800,000
|
)
|
|
—
|
|
|
(2,800,000
|
)
|
Share premium contribution
(3)
|
—
|
|
|
1,162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,162
|
|
|
—
|
|
|
1,162
|
|
Reclassification
(1)
|
—
|
|
|
(2,117
|
)
|
|
—
|
|
|
—
|
|
|
2,117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
At December 31, 2015
|
3,778
|
|
|
(12,127
|
)
|
|
(52,923
|
)
|
|
42,571
|
|
|
(6,422
|
)
|
|
(25,123
|
)
|
|
5,720
|
|
|
(19,403
|
)
|
Net profit
|
—
|
|
|
398,762
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398,762
|
|
|
956
|
|
|
399,718
|
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
34,143
|
|
|
4,252
|
|
|
(1,466
|
)
|
|
36,929
|
|
|
(134
|
)
|
|
36,795
|
|
Cash distribution of reserves
|
—
|
|
|
(86,905
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(86,905
|
)
|
|
—
|
|
|
(86,905
|
)
|
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,732
|
)
|
|
(1,732
|
)
|
Share-based compensation
|
—
|
|
|
1,110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,110
|
|
|
—
|
|
|
1,110
|
|
Separation
(4)
|
(1,274
|
)
|
|
1,496
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|
—
|
|
|
222
|
|
At December 31, 2016
|
2,504
|
|
|
302,336
|
|
|
(18,780
|
)
|
|
46,823
|
|
|
(7,888
|
)
|
|
324,995
|
|
|
4,810
|
|
|
329,805
|
|
(1)
|
Relates to the reclassification of the actuarial gain recognized on the remeasurement of the defined benefit pension plan of the former Chairman of the Group.
|
(2)
|
Relates to the remaining principal amount of the FCA Note recognized in connection with the Restructuring. See “Background and Basis of Presentation”.
|
(3)
|
Relates to the effect of a share premium contribution made by FCA N.V. in connection with the Restructuring.
|
(4)
|
Reflects the effects of the Separation. See Note 21
“
Equity
”
for additional details.
|
•
|
The Company acquired from Ferrari North Europe Limited its assets and business of providing sales, after-sales and support services for the Ferrari brand and in exchange, the Company issued to Ferrari North Europe Limited a note in the principal amount of £2.8 million (the “FNE Note”).
|
•
|
FCA transferred to the Company all of the issued and outstanding share capital that it previously held in Ferrari S.p.A. (representing 90 percent of the share capital of Ferrari S.p.A.), and in exchange the Company issued to FCA a note in the principal amount of €7.9 billion (the “FCA Note”).
|
•
|
FCA contributed €5.1 billion to the Company in consideration of the issue to FCA of 156,917,727 common shares and 161,917,727 special voting shares of the Company. Following a subsequent transaction with Piero Ferrari, FCA owned 170,029,440 common shares and special voting shares, equal to 90 percent of the Company’s common shares outstanding. €5.1 billion of the proceeds received from FCA were applied to settle a portion of the FCA Note, following which the principal outstanding on the FCA Note was €2.8 billion, which was refinanced through cash deposits held with FCA and for the remainder from new third party debt.
|
•
|
Piero Ferrari transferred his 10 percent interest in Ferrari S.p.A. to the Company and in exchange, the Company issued to Piero Ferrari 27,003,873 of its common shares and the same number of special voting shares. Following a subsequent transaction with FCA, Piero Ferrari owned 18,892,160 common shares and special voting shares, equal to 10 percent of the Company’s common shares outstanding. The Company did not receive any cash consideration as part of this transaction.
|
•
|
The Group adopted the amendments to
IFRS 11 - Joint Arrangements
, which clarify the accounting for acquisitions of interests in a joint operation that constitutes a business. There was no effect from the adoption of these amendments.
|
•
|
The Group adopted the amendments to
IAS 16 - Property, Plant and Equipment
and to
IAS 38 - Intangible Assets
, which clarify that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The amendments also clarify that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances. There was no effect from the adoption of these amendments.
|
•
|
The Group adopted the
Annual Improvements to IFRSs 2012-2014 Cycle
, a series of amendments to IFRS in response to issues raised mainly on, among others, the changes of method of disposal in
IFRS 5 - Non-Current Assets Held for Sale and Discontinued Operations
, on servicing contracts in
IFRS 7 - Financial Instruments: Disclosures
, and on the discount rate determination in IAS 19 - Employee Benefits. There was no effect from the adoption of these amendments.
|
•
|
The Group adopted the amendments to
IAS 1 - Presentation of Financial Statements
as part of its major initiative to improve presentation and disclosure in financial reports. The amendments make clear that materiality applies to the whole of financial statements and that the inclusion of immaterial information can inhibit the usefulness of financial disclosures. Furthermore, the amendments clarify that companies should use professional judgment in determining where and in what order information is presented in the financial disclosures. There was no effect from the adoption of these amendments.
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
|
Average
|
|
At December 31,
|
|
Average
|
|
At December 31,
|
|
Average
|
|
At December 31,
|
||||||
U.S. Dollar
|
1.1069
|
|
|
1.0541
|
|
|
1.1094
|
|
|
1.0887
|
|
|
1.3287
|
|
|
1.2141
|
|
Pound Sterling
|
0.8194
|
|
|
0.8562
|
|
|
0.7259
|
|
|
0.7340
|
|
|
0.8062
|
|
|
0.7789
|
|
Swiss Franc
|
1.0901
|
|
|
1.0739
|
|
|
1.0677
|
|
|
1.0835
|
|
|
1.2146
|
|
|
1.2024
|
|
Japanese Yen
|
120.2169
|
|
|
123.4000
|
|
|
134.2956
|
|
|
131.0700
|
|
|
140.3146
|
|
|
145.2300
|
|
Chinese Yuan
|
7.3519
|
|
|
7.3202
|
|
|
6.9723
|
|
|
7.0608
|
|
|
8.1874
|
|
|
7.5358
|
|
Australian Dollar
|
1.4883
|
|
|
1.4596
|
|
|
1.4775
|
|
|
1.4897
|
|
|
1.4720
|
|
|
1.4829
|
|
Singapore Dollar
|
1.5275
|
|
|
1.5234
|
|
|
1.5253
|
|
|
1.5417
|
|
|
1.6826
|
|
|
1.6058
|
|
Hong Kong Dollar
|
8.5924
|
|
|
8.1751
|
|
|
8.6014
|
|
|
8.4376
|
|
|
10.3025
|
|
|
9.4170
|
|
|
Depreciation rates
|
Industrial buildings
|
3% - 20%
|
Plant, machinery and equipment
|
5% - 22%
|
Other assets
|
12% - 25%
|
•
|
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/(expense). 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 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.
|
|
|
|
|
|
|
At December 31, 2016
|
|
At December 31, 2015
|
||||||||
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.
(1)
|
|
Italy
|
|
Manufacturing
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Indirectly held through Ferrari S.p.A.
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 (HK) Limited
|
|
Hong Kong
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
|
n.a.
|
|
|
n.a.
|
|
Ferrari International Cars Trading (Shanghai) Co. L.t.d.
|
|
China
|
|
Importer and distributor
|
|
80
|
%
|
|
20
|
%
|
|
80
|
%
|
|
20
|
%
|
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 East Europe GmbH
|
|
Germany
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
G.S.A. S.A.
|
|
Switzerland
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
Ferrari North Europe L.t.d.
|
|
UK
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
Mugello Circuit S.p.A.
|
|
Italy
|
|
Racetrack management
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services S.p.A.
|
|
Italy
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Indirectly held through other Group entities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ferrari Financial Services GmbH
(2)
|
|
Germany
|
|
Financial services
|
|
49.9
|
%
|
|
50.1
|
%
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services Inc.
(3)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction, LLC
(4)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
n.a.
|
|
|
n.a.
|
|
Ferrari Auto Securitization Transaction - Lease, LLC
(4)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
n.a.
|
|
|
n.a.
|
|
Ferrari Auto Securitization Transaction - Select, LLC
(4)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
n.a.
|
|
|
n.a.
|
|
Ferrari Financial Services Titling Trust
(4)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
n.a.
|
|
|
n.a.
|
|
Ferrari Financial Services Japan KK
(5)
|
|
Japan
|
|
Financial services
|
|
—
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
410, Park Display Inc.
(6)
|
|
USA
|
|
Retail
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
|
(1)
|
As a result of the Restructuring Ferrari N.V. became the parent company of the Group and directly owns Ferrari S.p.A.. Prior to the Restructuring Ferrari S.p.A. was the parent entity of the Group.
|
(2)
|
Shareholding held by Ferrari Financial Services S.p.A. On November 7, 2016 the Group and FCA Bank finalized the agreement under which FCA Bank acquired a majority stake in Ferrari Financial Services GmbH (“FFS GmbH”). Upon completion of the transaction, FFS GmbH was deconsolidated and the 49.9% interest retained by Ferrari is accounted for using the equity method. See Note 17.
|
(3)
|
Shareholding held by Ferrari Financial Services S.p.A.
|
(4)
|
Shareholding held by Ferrari Financial Services Inc. (“FFS Inc”).
|
(5)
|
On April 30, 2016, the liquidation process of Ferrari Financial Services Japan KK was completed.
|
(6)
|
Shareholding held by Ferrari North America Inc.
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Equity attributable to non-controlling interests
|
4,810
|
|
|
5,720
|
|
Of which attributable to FICTS
|
4,810
|
|
|
5,720
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Net profit attributable to non-controlling interests
|
956
|
|
|
2,238
|
|
|
3,644
|
|
Of which attributable to FICTS
|
956
|
|
|
1,351
|
|
|
3,059
|
|
Of which attributable to FFS Group
|
—
|
|
|
887
|
|
|
585
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Cars and spare parts
|
2,180,045
|
|
|
2,080,228
|
|
|
1,943,729
|
|
Engines
|
337,924
|
|
|
218,657
|
|
|
311,155
|
|
Sponsorship, commercial and brand
|
488,514
|
|
|
441,128
|
|
|
416,673
|
|
Other
|
98,601
|
|
|
114,356
|
|
|
90,803
|
|
Total net revenues
|
3,105,084
|
|
|
2,854,369
|
|
|
2,762,360
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Research and development costs expensed during the year
|
509,580
|
|
|
446,726
|
|
|
415,336
|
|
Amortization of capitalized development costs
|
104,055
|
|
|
114,856
|
|
|
125,497
|
|
Total research and development costs
|
613,635
|
|
|
561,582
|
|
|
540,833
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Financial income:
|
(€ thousand)
|
|||||||
Interest income from bank deposits
|
843
|
|
|
54
|
|
|
2,333
|
|
Other interest income and financial income
|
1,841
|
|
|
6,473
|
|
|
4,774
|
|
Interest income and other financial income
|
2,684
|
|
|
6,527
|
|
|
7,107
|
|
Finance income from financial services companies
|
58,236
|
|
|
61,587
|
|
|
45,760
|
|
Total financial income
|
60,920
|
|
|
68,114
|
|
|
52,867
|
|
|
|
|
|
|
|
|
|
|
Total financial income relating to:
|
|
|
|
|
|
|
|
|
Industrial companies (A)
|
2,684
|
|
|
6,527
|
|
|
7,107
|
|
Financial services companies (reported within net revenues)
|
58,236
|
|
|
61,587
|
|
|
45,760
|
|
|
|
|
|
|
|
|
|
|
Financial expenses:
|
|
|
|
|
|
|
|
|
Interest expenses on financial liabilities with FCA Group
|
—
|
|
|
(15,745
|
)
|
|
(6,141
|
)
|
Capitalized borrowing costs
|
1,519
|
|
|
1,530
|
|
|
1,588
|
|
Other interest cost and financial expenses
|
(4,090
|
)
|
|
(3,163
|
)
|
|
(985
|
)
|
Interest expenses and other financial expenses
|
(2,571
|
)
|
|
(17,378
|
)
|
|
(5,538
|
)
|
Interest expenses from banks
|
(27,042
|
)
|
|
(3,357
|
)
|
|
(817
|
)
|
Interest on bond
|
(6,937
|
)
|
|
—
|
|
|
—
|
|
Write-downs of financial receivables
|
(3,864
|
)
|
|
(9,607
|
)
|
|
(6,769
|
)
|
Net interest expenses on employee benefits provisions
|
(389
|
)
|
|
(79
|
)
|
|
(400
|
)
|
Other financial expenses
|
(5,831
|
)
|
|
(5,029
|
)
|
|
(2,007
|
)
|
Total financial expenses
|
(46,634
|
)
|
|
(35,450
|
)
|
|
(15,531
|
)
|
Net (expenses)/income from derivative financial instruments and foreign currency exchange rate differences
|
(5,086
|
)
|
|
(4,930
|
)
|
|
1,197
|
|
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences
|
(51,720
|
)
|
|
(40,380
|
)
|
|
(14,334
|
)
|
|
|
|
|
|
|
|
|
|
Total financial expenses and net (expenses)/income from derivative financial instruments and foreign currency exchange rate differences relating to:
|
|
|
|
|
|
|
|
|
Industrial companies (B)
|
(30,413
|
)
|
|
(16,678
|
)
|
|
1,658
|
|
Financial services companies (reported in cost of sales)
|
(21,307
|
)
|
|
(23,702
|
)
|
|
(15,992
|
)
|
|
|
|
|
|
|
|||
Net financial (expenses)/income relating to industrial companies (A+B)
|
(27,729
|
)
|
|
(10,151
|
)
|
|
8,765
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Current tax expense
|
189,492
|
|
|
153,739
|
|
|
137,468
|
|
Deferred tax income
|
(18,290
|
)
|
|
(9,410
|
)
|
|
(4,600
|
)
|
Taxes relating to prior periods
|
(3,567
|
)
|
|
(214
|
)
|
|
350
|
|
Total income tax expense
|
167,635
|
|
|
144,115
|
|
|
133,218
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Theoretical income tax expense, net of IRAP
|
156,022
|
|
|
119,396
|
|
|
109,514
|
|
Tax effect on:
|
|
|
|
|
|
|||
Permanent differences
|
(10,219
|
)
|
|
5,846
|
|
|
(3,061
|
)
|
Effect of changes in tax rate and tax regulations
|
1,280
|
|
|
4,005
|
|
|
—
|
|
Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays
|
853
|
|
|
1,631
|
|
|
680
|
|
Taxes relating to prior years
|
(3,567
|
)
|
|
(214
|
)
|
|
350
|
|
Withholding tax on earnings
|
2,017
|
|
|
(384
|
)
|
|
6,607
|
|
Total income tax expense, net of IRAP
|
146,386
|
|
|
130,280
|
|
|
114,090
|
|
Effective tax rate, net of IRAP
|
25.8
|
%
|
|
30.0
|
%
|
|
28.6
|
%
|
IRAP (current and deferred)
|
21,249
|
|
|
13,835
|
|
|
19,128
|
|
Total income tax expense
|
167,635
|
|
|
144,115
|
|
|
133,218
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Deferred tax assets:
|
|
|
|
||
To be recovered after 12 months
|
72,142
|
|
|
56,821
|
|
To be recovered within 12 months
|
47,215
|
|
|
65,801
|
|
|
119,357
|
|
|
122,622
|
|
Deferred tax liabilities:
|
|
|
|
||
To be recovered after 12 months
|
(10,517
|
)
|
|
(12,604
|
)
|
To be recovered within 12 months
|
(2,594
|
)
|
|
(10,741
|
)
|
|
(13,111
|
)
|
|
(23,345
|
)
|
Net deferred tax assets
|
106,246
|
|
|
99,277
|
|
|
At December 31, 2015
|
|
Recognized in consolidated income statement
|
|
Charged to equity
|
|
Changes in scope of consolidation
|
|
Translation
differences and other changes |
|
At December 31, 2016
|
||||||
|
(€ thousand)
|
||||||||||||||||
Deferred tax assets arising on:
|
|
|
|
|
|
|
|
|
|
||||||||
Provisions
|
77,915
|
|
|
29,461
|
|
|
—
|
|
|
(78
|
)
|
|
4,023
|
|
|
111,321
|
|
Deferred income
|
39,318
|
|
|
4,231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,549
|
|
Employee benefits
|
2,242
|
|
|
(54
|
)
|
|
(18
|
)
|
|
—
|
|
|
200
|
|
|
2,370
|
|
Cash flow hedge reserve
|
24,267
|
|
|
—
|
|
|
(16,943
|
)
|
|
—
|
|
|
1
|
|
|
7,325
|
|
Foreign currency exchange rate differences
|
343
|
|
|
2,685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,028
|
|
Inventory obsolescence
|
25,075
|
|
|
(626
|
)
|
|
—
|
|
|
—
|
|
|
120
|
|
|
24,569
|
|
Allowances for doubtful accounts
|
3,633
|
|
|
485
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
4,107
|
|
Depreciation
|
21,682
|
|
|
(1,783
|
)
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
19,853
|
|
Other
|
10,838
|
|
|
(1,808
|
)
|
|
—
|
|
|
6,989
|
|
|
(2,186
|
)
|
|
13,833
|
|
Total deferred tax assets
|
205,313
|
|
|
32,591
|
|
|
(16,961
|
)
|
|
6,911
|
|
|
2,101
|
|
|
229,955
|
|
Deferred tax liabilities arising on:
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation
|
(14,571
|
)
|
|
(2,591
|
)
|
|
—
|
|
|
—
|
|
|
(430
|
)
|
|
(17,592
|
)
|
Capitalization of development costs
|
(79,531
|
)
|
|
(10,949
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90,480
|
)
|
Employee benefits
|
(1,713
|
)
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,745
|
)
|
Exchange rate differences
|
(1,970
|
)
|
|
(1,577
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,547
|
)
|
Cash flow hedge reserve
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Lease accounting
|
(11,457
|
)
|
|
453
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,004
|
)
|
Withholding tax on undistributed earnings
|
(1,150
|
)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,150
|
)
|
Total deferred tax liabilities
|
(110,393
|
)
|
|
(14,696
|
)
|
|
—
|
|
|
—
|
|
|
(430
|
)
|
|
(125,519
|
)
|
Deferred tax asset arising on tax loss carry-forward
|
4,357
|
|
|
395
|
|
|
—
|
|
|
(2,949
|
)
|
|
7
|
|
|
1,810
|
|
Total net deferred tax assets
|
99,277
|
|
|
18,290
|
|
|
(16,961
|
)
|
|
3,962
|
|
|
1,678
|
|
|
106,246
|
|
|
At December 31, 2014
|
|
Recognized in consolidated income statement
|
|
Charged
to equity |
|
Changes in the scope of consolidation
|
|
Translation
differences and other changes |
|
At December 31, 2015
|
||||||
|
(€ thousand)
|
||||||||||||||||
Deferred tax assets arising on:
|
|
|
|
|
|
|
|
|
|
||||||||
Provisions
|
72,763
|
|
|
4,067
|
|
|
—
|
|
|
—
|
|
|
1,085
|
|
|
77,915
|
|
Deferred income
|
35,039
|
|
|
4,279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,318
|
|
Employee benefits
|
3,373
|
|
|
(825
|
)
|
|
(306
|
)
|
|
—
|
|
|
—
|
|
|
2,242
|
|
Cash flow hedge reserve
|
26,869
|
|
|
—
|
|
|
(2,602
|
)
|
|
—
|
|
|
—
|
|
|
24,267
|
|
Foreign currency exchange rate differences
|
1,090
|
|
|
(747
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
Inventory obsolescence
|
16,423
|
|
|
8,254
|
|
|
—
|
|
|
—
|
|
|
398
|
|
|
25,075
|
|
Allowances for doubtful accounts
|
5,292
|
|
|
(1,647
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
3,633
|
|
Depreciation
|
22,219
|
|
|
(537
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,682
|
|
Board of Directors compensation
|
3,416
|
|
|
(3,416
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
11,846
|
|
|
(2,819
|
)
|
|
—
|
|
|
—
|
|
|
1,811
|
|
|
10,838
|
|
Total deferred tax assets
|
198,330
|
|
|
6,609
|
|
|
(2,908
|
)
|
|
—
|
|
|
3,282
|
|
|
205,313
|
|
Deferred tax liabilities arising on:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation
|
(11,987
|
)
|
|
(1,956
|
)
|
|
—
|
|
|
—
|
|
|
(628
|
)
|
|
(14,571
|
)
|
Capitalization of development costs
|
(76,570
|
)
|
|
(2,961
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79,531
|
)
|
Employee benefits
|
(1,575
|
)
|
|
(138
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,713
|
)
|
Exchange rate differences
|
(2,350
|
)
|
|
380
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,970
|
)
|
Cash flow hedge reserve
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Lease accounting
|
(12,625
|
)
|
|
1,168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,457
|
)
|
Withholding tax on undistributed earnings
|
(5,228
|
)
|
|
4,078
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,150
|
)
|
Total deferred tax liabilities
|
(110,336
|
)
|
|
571
|
|
|
—
|
|
|
—
|
|
|
(628
|
)
|
|
(110,393
|
)
|
Deferred tax asset arising on tax loss carry-forward
|
2,110
|
|
|
2,230
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
4,357
|
|
Total net deferred tax assets
|
90,104
|
|
|
9,410
|
|
|
(2,908
|
)
|
|
—
|
|
|
2,671
|
|
|
99,277
|
|
|
|
For the years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
Profit attributable to owners of the Company
|
€ thousand
|
398,762
|
|
|
287,816
|
|
|
261,371
|
|
Weighted average number of common shares
|
thousand
|
188,923
|
|
|
188,923
|
|
|
188,923
|
|
Basic earnings per common share
|
€
|
2.11
|
|
|
1.52
|
|
|
1.38
|
|
•
|
The expected future cash flows covering the period from 2017 through 2020 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 (2.1 percent in 2015 and 1.0 percent in 2014).
|
•
|
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 7.0 percent (7.6 percent in 2015 and 8.2 percent in 2014). 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.
|
|
|
Externally
acquired development costs |
|
Development
costs internally generated |
|
Patents,
concessions and licenses |
|
Other
intangible assets |
|
Total
|
|||||
|
|
(€ thousand)
|
|||||||||||||
Gross carrying amount at
January 1, 2015 |
|
717,373
|
|
|
399,955
|
|
|
122,122
|
|
|
37,511
|
|
|
1,276,961
|
|
Additions
|
|
117,110
|
|
|
37,299
|
|
|
9,035
|
|
|
7,589
|
|
|
171,033
|
|
Divestitures
|
|
—
|
|
|
—
|
|
|
(1,248
|
)
|
|
(18
|
)
|
|
(1,266
|
)
|
Reclassification
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
53
|
|
|
—
|
|
Translation differences
|
|
—
|
|
|
—
|
|
|
1,381
|
|
|
335
|
|
|
1,716
|
|
Balance at December 31, 2015
|
|
834,483
|
|
|
437,254
|
|
|
131,237
|
|
|
45,470
|
|
|
1,448,444
|
|
Additions
|
|
104,009
|
|
|
37,387
|
|
|
12,110
|
|
|
12,834
|
|
|
166,340
|
|
Reclassification
|
|
—
|
|
|
—
|
|
|
4,369
|
|
|
(4,369
|
)
|
|
—
|
|
Change in scope of consolidation
|
|
|
|
|
|
(3,458
|
)
|
|
—
|
|
|
(3,458
|
)
|
||
Translation differences
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
|
(93
|
)
|
|
(159
|
)
|
Balance at December 31, 2016
|
|
938,492
|
|
|
474,641
|
|
|
144,192
|
|
|
53,842
|
|
|
1,611,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accumulated amortization at January 1, 2015
|
|
612,046
|
|
|
259,018
|
|
|
106,600
|
|
|
34,035
|
|
|
1,011,699
|
|
Amortization
|
|
84,865
|
|
|
29,991
|
|
|
11,112
|
|
|
2,692
|
|
|
128,660
|
|
Divestitures
|
|
—
|
|
|
—
|
|
|
(1,177
|
)
|
|
—
|
|
|
(1,177
|
)
|
Translation differences
|
|
—
|
|
|
—
|
|
|
1,231
|
|
|
221
|
|
|
1,452
|
|
Balance at December 31, 2015
|
|
696,911
|
|
|
289,009
|
|
|
117,766
|
|
|
36,948
|
|
|
1,140,634
|
|
Amortization
|
|
77,240
|
|
|
26,815
|
|
|
11,628
|
|
|
2,419
|
|
|
118,102
|
|
Reclassification
|
|
—
|
|
|
—
|
|
|
3,317
|
|
|
(3,317
|
)
|
|
—
|
|
Change in scope of consolidation
|
|
—
|
|
|
—
|
|
|
(1,766
|
)
|
|
|
|
(1,766
|
)
|
|
Translation differences
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(53
|
)
|
|
(197
|
)
|
Balance at December 31, 2016
|
|
774,151
|
|
|
315,824
|
|
|
130,801
|
|
|
35,997
|
|
|
1,256,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying amount at:
|
|
|
|
|
|
|
|
|
|
|
|||||
January 1, 2015
|
|
105,327
|
|
|
140,937
|
|
|
15,522
|
|
|
3,476
|
|
|
265,262
|
|
December 31, 2015
|
|
137,572
|
|
|
148,245
|
|
|
13,471
|
|
|
8,522
|
|
|
307,810
|
|
December 31, 2016
|
|
164,341
|
|
|
158,817
|
|
|
13,391
|
|
|
17,845
|
|
|
354,394
|
|
|
Land
|
|
Industrial
buildings |
|
Plant, machinery and equipment
|
|
Other
assets |
|
Advances and assets under construction
|
|
Total
|
||||||
|
(€ thousand)
|
||||||||||||||||
Gross carrying amount at January 1, 2015
|
22,500
|
|
|
276,446
|
|
|
1,549,578
|
|
|
128,233
|
|
|
89,784
|
|
|
2,066,541
|
|
Additions
|
142
|
|
|
23,716
|
|
|
117,618
|
|
|
10,665
|
|
|
32,769
|
|
|
184,910
|
|
Divestitures
|
—
|
|
|
(6,775
|
)
|
|
(23,962
|
)
|
|
(7,469
|
)
|
|
(139
|
)
|
|
(38,345
|
)
|
Reclassification
|
—
|
|
|
37,802
|
|
|
48,706
|
|
|
143
|
|
|
(86,651
|
)
|
|
—
|
|
Translation differences
|
29
|
|
|
(12
|
)
|
|
(458
|
)
|
|
55
|
|
|
—
|
|
|
(386
|
)
|
Balance at December 31, 2015
|
22,671
|
|
|
331,177
|
|
|
1,691,482
|
|
|
131,627
|
|
|
35,763
|
|
|
2,212,720
|
|
Additions
|
—
|
|
|
5,596
|
|
|
81,678
|
|
|
7,322
|
|
|
81,051
|
|
|
175,647
|
|
Divestitures
|
—
|
|
|
(1,021
|
)
|
|
(9,902
|
)
|
|
(7,631
|
)
|
|
—
|
|
|
(18,554
|
)
|
Reclassification
|
—
|
|
|
1,578
|
|
|
22,898
|
|
|
1,441
|
|
|
(28,341
|
)
|
|
(2,424
|
)
|
Change in scope of consolidation
|
—
|
|
|
—
|
|
|
—
|
|
|
(613
|
)
|
|
—
|
|
|
(613
|
)
|
Translation differences
|
10
|
|
|
173
|
|
|
—
|
|
|
476
|
|
|
—
|
|
|
659
|
|
Balance at December 31, 2016
|
22,681
|
|
|
337,503
|
|
|
1,786,156
|
|
|
132,622
|
|
|
88,473
|
|
|
2,367,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated amortization at
January 1, 2015
|
—
|
|
|
116,718
|
|
|
1,268,082
|
|
|
96,556
|
|
|
—
|
|
|
1,481,356
|
|
Depreciation
|
—
|
|
|
10,340
|
|
|
124,950
|
|
|
8,995
|
|
|
—
|
|
|
144,285
|
|
Divestitures
|
—
|
|
|
(3,947
|
)
|
|
(27,167
|
)
|
|
(6,515
|
)
|
|
—
|
|
|
(37,629
|
)
|
Translation differences
|
|
|
(12
|
)
|
|
(1,394
|
)
|
|
(16
|
)
|
|
—
|
|
|
(1,422
|
)
|
|
Balance at December 31, 2015
|
—
|
|
|
123,099
|
|
|
1,364,471
|
|
|
99,020
|
|
|
—
|
|
|
1,586,590
|
|
Depreciation
|
—
|
|
|
9,995
|
|
|
109,939
|
|
|
9,681
|
|
|
—
|
|
|
129,615
|
|
Divestitures
|
—
|
|
|
(608
|
)
|
|
(11,628
|
)
|
|
(6,039
|
)
|
|
—
|
|
|
(18,275
|
)
|
Reclassification
|
—
|
|
|
177
|
|
|
(1,786
|
)
|
|
1,609
|
|
|
—
|
|
|
—
|
|
Change in scope of consolidation
|
—
|
|
|
—
|
|
|
—
|
|
|
(312
|
)
|
|
|
|
(312
|
)
|
|
Translation differences
|
—
|
|
|
159
|
|
|
(1
|
)
|
|
376
|
|
|
—
|
|
|
534
|
|
Balance at December 31, 2016
|
—
|
|
|
132,822
|
|
|
1,460,995
|
|
|
104,335
|
|
|
—
|
|
|
1,698,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Carrying amount at:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
January 1, 2015
|
22,500
|
|
|
159,728
|
|
|
281,496
|
|
|
31,677
|
|
|
89,784
|
|
|
585,185
|
|
December 31, 2015
|
22,671
|
|
|
208,078
|
|
|
327,011
|
|
|
32,607
|
|
|
35,763
|
|
|
626,130
|
|
December 31, 2016
|
22,681
|
|
|
204,681
|
|
|
325,161
|
|
|
28,287
|
|
|
88,473
|
|
|
669,283
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Investments accounted for using the equity method
|
20,948
|
|
|
—
|
|
Delta Topco option
|
11,967
|
|
|
10,858
|
|
Other securities and other financial assets
|
1,020
|
|
|
978
|
|
Total investments and other financial assets
|
33,935
|
|
|
11,836
|
|
|
At December 31, 2016
|
|
|
(€ thousand)
|
|
Assets
|
|
|
Intangible assets
|
1,133
|
|
Property, plant and equipment
|
119
|
|
Deferred tax assets
|
2,736
|
|
Total non-current assets
|
3,988
|
|
Inventories
|
412
|
|
Trade receivables
|
472
|
|
Receivables from financing activities
|
463,108
|
|
Other current assets
|
3,543
|
|
Cash and cash equivalents
|
29,087
|
|
Total current assets
|
496,622
|
|
Total assets
|
500,610
|
|
|
|
|
Equity and liabilities
|
|
|
Equity
|
39,921
|
|
Non-current liabilities and provisions
|
7,920
|
|
Debt
|
447,272
|
|
Trade payables
|
123
|
|
Other liabilities
|
5,374
|
|
Total equity and liabilities
|
500,610
|
|
|
For the year ended
December 31, 2016
|
|
|
(€ thousand)
|
|
Net revenues
|
27,471
|
|
Cost of sales
|
9,563
|
|
Selling, general and administrative costs
|
8,432
|
|
Other expenses, net
|
180
|
|
Profit before taxes
|
9,296
|
|
Income tax expense
|
2,070
|
|
Net profit
|
7,226
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Trade receivables
|
243,977
|
|
|
158,165
|
|
Deposits in FCA Group cash management pools
|
—
|
|
|
139,172
|
|
Receivables from financing activities
|
790,377
|
|
|
1,173,825
|
|
Current tax receivables
|
1,312
|
|
|
15,369
|
|
Other current assets
|
53,729
|
|
|
46,477
|
|
Total
|
1,089,395
|
|
|
1,533,008
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Trade receivables due from:
|
|
|
|
||
FCA Group companies
|
75,694
|
|
|
42,247
|
|
Dealers
|
47,208
|
|
|
45,185
|
|
Sponsors
|
42,789
|
|
|
12,041
|
|
Brand activities
|
15,650
|
|
|
38,789
|
|
Other
|
62,636
|
|
|
19,903
|
|
Total
|
243,977
|
|
|
158,165
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Trade receivables denominated in:
|
|
|
|
||
Euro
|
155,545
|
|
|
112,658
|
|
U.S. Dollar
|
62,701
|
|
|
29,981
|
|
Pound Sterling
|
1,222
|
|
|
4,398
|
|
Chinese Yuan
|
3,819
|
|
|
1,026
|
|
Japanese Yen
|
16,310
|
|
|
3,231
|
|
Other
|
4,380
|
|
|
6,871
|
|
Total
|
243,977
|
|
|
158,165
|
|
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
At January 1,
|
18,671
|
|
|
14,201
|
|
Provision
|
2,455
|
|
|
9,607
|
|
Change in scope of consolidation
|
(8,409
|
)
|
|
—
|
|
Use and other changes
|
(1,161
|
)
|
|
(5,137
|
)
|
At December 31,
|
11,556
|
|
|
18,671
|
|
Of which:
|
|
|
|
||
Client financing
|
10,916
|
|
|
16,855
|
|
Factoring receivables
|
640
|
|
|
1,816
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Prepayments
|
31,611
|
|
|
19,979
|
|
Italian and foreign VAT credits
|
12,032
|
|
|
9,265
|
|
Due from personnel
|
747
|
|
|
699
|
|
Security deposits
|
932
|
|
|
869
|
|
Other receivables
|
8,407
|
|
|
15,665
|
|
Total other current assets
|
53,729
|
|
|
46,477
|
|
|
At December 31, 2016
|
|||||||||||||
|
Due within one year
|
|
Due between one and five years
|
|
Due beyond five years
|
|
Overdue
|
|
Total
|
|||||
|
(€ thousand)
|
|||||||||||||
Trade receivables
|
225,402
|
|
|
8
|
|
|
—
|
|
|
18,567
|
|
|
243,977
|
|
Receivables from financing activities
|
146,412
|
|
|
554,030
|
|
|
48,341
|
|
|
41,594
|
|
|
790,377
|
|
Client financing
|
136,602
|
|
|
536,954
|
|
|
43,529
|
|
|
41,594
|
|
|
758,679
|
|
Dealer financing
|
9,810
|
|
|
17,076
|
|
|
4,812
|
|
|
—
|
|
|
31,698
|
|
Current tax receivables
|
690
|
|
|
622
|
|
|
—
|
|
|
—
|
|
|
1,312
|
|
Other current receivables
|
21,572
|
|
|
539
|
|
|
7
|
|
|
—
|
|
|
22,118
|
|
Total
|
394,076
|
|
|
555,199
|
|
|
48,348
|
|
|
60,161
|
|
|
1,057,784
|
|
|
At December 31, 2015
|
|||||||||||||
|
Due within one year
|
|
Due between one and five years
|
|
Due beyond five years
|
|
Overdue
|
|
Total
|
|||||
|
(€ thousand)
|
|||||||||||||
Trade receivables
|
129,215
|
|
|
2,773
|
|
|
—
|
|
|
26,177
|
|
|
158,165
|
|
Deposits in FCA Group cash management pools
|
139,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139,172
|
|
Receivables from financing activities
|
252,531
|
|
|
849,145
|
|
|
55,919
|
|
|
16,230
|
|
|
1,173,825
|
|
Client financing
|
210,900
|
|
|
832,612
|
|
|
55,919
|
|
|
16,230
|
|
|
1,115,661
|
|
Factoring receivables
|
30,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,901
|
|
Dealer financing
|
10,730
|
|
|
16,533
|
|
|
—
|
|
|
—
|
|
|
27,263
|
|
Current tax receivables
|
14,104
|
|
|
1,265
|
|
|
—
|
|
|
—
|
|
|
15,369
|
|
Other current receivables
|
25,636
|
|
|
855
|
|
|
7
|
|
|
—
|
|
|
26,498
|
|
Total
|
560,658
|
|
|
854,038
|
|
|
55,926
|
|
|
42,407
|
|
|
1,513,029
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Financial derivatives
|
10,388
|
|
|
5,070
|
|
Other financial assets
|
5,888
|
|
|
3,556
|
|
Current financial assets
|
16,276
|
|
|
8,626
|
|
|
At December 31,
|
||||||||||
|
2016
|
|
2015
|
||||||||
|
Positive fair
value |
|
Negative fair
value |
|
Positive fair
value |
|
Negative fair
value |
||||
|
(€ thousand)
|
||||||||||
Cash flow hedge:
|
|
|
|
|
|
|
|
||||
Foreign currency forwards
|
8,160
|
|
|
(39,580
|
)
|
|
1,900
|
|
|
(102,066
|
)
|
Total cash flow hedges
|
8,160
|
|
|
(39,580
|
)
|
|
1,900
|
|
|
(102,066
|
)
|
Other foreign exchange derivatives
|
1,548
|
|
|
(58
|
)
|
|
3,170
|
|
|
(1,266
|
)
|
Interest rate caps
|
680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
10,388
|
|
|
(39,638
|
)
|
|
5,070
|
|
|
(103,332
|
)
|
|
At December 31, 2016
|
||||||||||||||||
|
Fair value due within one year
|
|
Fair value due between one and two years
|
|
Total fair value
|
|
Notional amount due within one year
|
|
Notional amount due between one and two years
|
|
Total notional amount
|
||||||
|
(€ thousand)
|
||||||||||||||||
Currencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Dollar
|
(33,758
|
)
|
|
—
|
|
|
(33,758
|
)
|
|
788,274
|
|
|
—
|
|
|
788,274
|
|
Pound Sterling
|
3,668
|
|
|
—
|
|
|
3,668
|
|
|
106,056
|
|
|
—
|
|
|
106,056
|
|
Chinese Yuan
|
(125
|
)
|
|
—
|
|
|
(125
|
)
|
|
19,917
|
|
|
—
|
|
|
19,917
|
|
Swiss Franc
|
(476
|
)
|
|
—
|
|
|
(476
|
)
|
|
47,923
|
|
|
—
|
|
|
47,923
|
|
Japanese Yen
|
2,835
|
|
|
—
|
|
|
2,835
|
|
|
91,854
|
|
|
—
|
|
|
91,854
|
|
Other
(1)
|
(1,394
|
)
|
|
—
|
|
|
(1,394
|
)
|
|
74,822
|
|
|
—
|
|
|
74,822
|
|
Total amount
|
(29,250
|
)
|
|
—
|
|
|
(29,250
|
)
|
|
1,128,846
|
|
|
—
|
|
|
1,128,846
|
|
|
At December 31, 2015
|
||||||||||||||||
|
Fair value due within one year
|
|
Fair value due between one and two years
|
|
Total fair value
|
|
Notional amount due within one year
|
|
Notional amount due between one and two years
|
|
Total notional amount
|
||||||
|
(€ thousand)
|
||||||||||||||||
Currencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Dollar
|
(77,047
|
)
|
|
(1,812
|
)
|
|
(78,859
|
)
|
|
689,476
|
|
|
67,903
|
|
|
757,379
|
|
Pound Sterling
|
(3,834
|
)
|
|
(296
|
)
|
|
(4,130
|
)
|
|
368,355
|
|
|
5,395
|
|
|
373,750
|
|
Chinese Yuan
|
(7,839
|
)
|
|
—
|
|
|
(7,839
|
)
|
|
48,658
|
|
|
—
|
|
|
48,658
|
|
Swiss Franc
|
(3,692
|
)
|
|
—
|
|
|
(3,692
|
)
|
|
93,981
|
|
|
—
|
|
|
93,981
|
|
Japanese Yen
|
(3,434
|
)
|
|
—
|
|
|
(3,434
|
)
|
|
54,206
|
|
|
—
|
|
|
54,206
|
|
Other
(1)
|
(308
|
)
|
|
—
|
|
|
(308
|
)
|
|
19,628
|
|
|
—
|
|
|
19,628
|
|
Total amount
|
(96,154
|
)
|
|
(2,108
|
)
|
|
(98,262
|
)
|
|
1,274,304
|
|
|
73,298
|
|
|
1,347,602
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Net (costs)/revenues
|
(69,368
|
)
|
|
(145,095
|
)
|
|
20,111
|
|
Net financial expenses
|
—
|
|
|
(23,745
|
)
|
|
(16,788
|
)
|
Income tax benefit/(expense)
|
19,354
|
|
|
53,016
|
|
|
(1,043
|
)
|
Total recognized in the consolidated income statement
|
(50,014
|
)
|
|
(115,824
|
)
|
|
2,280
|
|
•
|
the share premium reserve of €5,888,529 thousand at December 31, 2016 (€5,975,434 thousand at December 31, 2015). The share premium reserve originated from the issuance of common shares pursuant to the Restructuring and from a share premium contribution of €1,162 thousand made by FCA in 2015 and received in 2016. As explained below, the movement in 2016 relates to a cash distribution which was made from this reserve;
|
•
|
the legal reserve of €14 thousand at December 31, 2016 and €5 thousand at December 31, 2015, determined in accordance with Dutch law.
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Items that will not be reclassified to the consolidated income statement in subsequent periods:
|
|
|
|
|
|
|||
(Losses)/Gains on remeasurement of defined benefit plans
|
(1,448
|
)
|
|
898
|
|
|
(4,739
|
)
|
Total items that will not be reclassified to the consolidated income statement in subsequent periods
|
(1,448
|
)
|
|
898
|
|
|
(4,739
|
)
|
Items that may be reclassified to the consolidated income statement in subsequent periods:
|
|
|
|
|
|
|||
Losses on cash flow hedging instruments arising during the period
|
(18,282
|
)
|
|
(160,606
|
)
|
|
(145,018
|
)
|
Losses/(gains) on cash flow hedging instruments reclassified to the consolidated income statement
|
69,368
|
|
|
168,840
|
|
|
(3,323
|
)
|
Gains/(losses) on cash flow hedging instruments
|
51,086
|
|
|
8,234
|
|
|
(148,341
|
)
|
Exchange differences on translating foreign operations arising during the period
|
4,118
|
|
|
13,344
|
|
|
27,836
|
|
Total items that may be reclassified to the consolidated income statement in subsequent periods
|
55,204
|
|
|
21,578
|
|
|
(120,505
|
)
|
Total other comprehensive income/(loss)
|
53,756
|
|
|
22,476
|
|
|
(125,244
|
)
|
Related tax impact
|
(16,961
|
)
|
|
(2,908
|
)
|
|
47,649
|
|
Total other comprehensive income/(loss), net of tax
|
36,795
|
|
|
19,568
|
|
|
(77,595
|
)
|
|
For the years ended December 31,
|
|||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
|
Pre-tax balance
|
|
Tax income/(expense)
|
|
Net balance
|
|
Pre-tax balance
|
|
Tax income/(expense)
|
|
Net balance
|
|
Pre-tax balance
|
|
Tax income/(expense)
|
|
Net balance
|
|||||||||
|
(€ thousand)
|
|||||||||||||||||||||||||
(Losses)/Gains on remeasurement of defined benefit plans
|
(1,448
|
)
|
|
(18
|
)
|
|
(1,466
|
)
|
|
898
|
|
|
(308
|
)
|
|
590
|
|
|
(4,739
|
)
|
|
1,061
|
|
|
(3,678
|
)
|
Gains/(Losses) on cash flow hedging instruments
|
51,086
|
|
|
(16,943
|
)
|
|
34,143
|
|
|
8,234
|
|
|
(2,600
|
)
|
|
5,634
|
|
|
(148,341
|
)
|
|
46,588
|
|
|
(101,753
|
)
|
Exchange gains on translating foreign operations
|
4,118
|
|
|
—
|
|
|
4,118
|
|
|
13,344
|
|
|
—
|
|
|
13,344
|
|
|
27,836
|
|
|
—
|
|
|
27,836
|
|
Total other comprehensive income/(loss)
|
53,756
|
|
|
(16,961
|
)
|
|
36,795
|
|
|
22,476
|
|
|
(2,908
|
)
|
|
19,568
|
|
|
(125,244
|
)
|
|
47,649
|
|
|
(77,595
|
)
|
|
For the year ended
December 31, 2014
|
||||
|
Group
|
|
NCI
|
||
|
(€ thousand)
|
||||
Transactions with non-controlling interests
|
|
|
|
|
|
FICTS
|
|
|
|
|
|
Capital reduction and change in ownership percentage of FICTS from 59% to 80%
|
3,832
|
|
|
(5,050
|
)
|
Expiration and renegotiation of FICTS constitution and change in operations
|
(5,095
|
)
|
|
59,074
|
|
FFS Inc.
|
|
|
|
|
|
Capital increase
|
—
|
|
|
1,219
|
|
Total change in scope of consolidation
|
(1,263
|
)
|
|
55,243
|
|
|
At December 31,
|
||||
|
2016
|
|
2015
|
||
|
(€ thousand)
|
||||
Present value of defined benefit obligations:
|
|
|
|
||
Italian employee severance indemnity (TFR)
|
23,783
|
|
|
23,119
|
|
Pension plans
|
828
|
|
|
805
|
|
Total present value of defined benefit obligations
|
24,611
|
|
|
23,924
|
|
|
|
|
|
||
Other provisions for employees
|
66,413
|
|
|
54,449
|
|
Total provisions for employee benefits
|
91,024
|
|
|
78,373
|
|
|
TFR liability
|
|
Pension plans
|
|
Total
|
|||
|
(€ thousand)
|
|||||||
Amounts at December 31, 2014
|
25,837
|
|
|
10,492
|
|
|
36,329
|
|
|
|
|
|
|
|
|||
Included in the consolidated income statement
|
82
|
|
|
72
|
|
|
154
|
|
Included in other comprehensive income/loss
|
|
|
|
|
|
|||
Actuarial (gains)/losses from:
|
|
|
|
|
|
|||
- Financial assumptions
|
(383
|
)
|
|
(155
|
)
|
|
(538
|
)
|
- Other
|
(583
|
)
|
|
223
|
|
|
(360
|
)
|
Other
|
|
|
|
|
|
|||
Benefits paid
|
(1,825
|
)
|
|
(3,739
|
)
|
(1)
|
(5,564
|
)
|
Settlement
|
—
|
|
|
(6,792
|
)
|
(2)
|
(6,792
|
)
|
Other changes
|
(9
|
)
|
|
704
|
|
|
695
|
|
Amounts at December 31, 2015
|
23,119
|
|
|
805
|
|
|
23,924
|
|
|
|
|
|
|
|
|||
Included in the consolidated income statement
|
391
|
|
|
(37
|
)
|
|
354
|
|
Included in other comprehensive income/loss
|
|
|
|
|
|
|||
Actuarial (gains)/losses from:
|
|
|
|
|
|
|||
- Demographic assumptions
|
—
|
|
|
—
|
|
|
—
|
|
- Financial assumptions
|
1,580
|
|
|
232
|
|
|
1,812
|
|
Other
|
|
|
|
|
|
|||
Benefits paid
|
(1,337
|
)
|
|
(172
|
)
|
|
(1,509
|
)
|
Other changes
|
30
|
|
|
—
|
|
|
30
|
|
Amounts at December 31, 2016
|
23,783
|
|
|
828
|
|
|
24,611
|
|
|
For the years ended December 31,
|
|||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
|
TFR
|
|
Pension plans
|
|
Total
|
|
TFR
|
|
Pension plans
|
|
Total
|
|
TFR
|
|
Pension plans
|
|
Total
|
|||||||||
|
(€ thousand)
|
|||||||||||||||||||||||||
Current service cost
|
31
|
|
|
(41
|
)
|
|
(10
|
)
|
|
8
|
|
|
72
|
|
|
80
|
|
|
7
|
|
|
5,120
|
|
|
5,127
|
|
Interest expense
|
360
|
|
|
4
|
|
|
364
|
|
|
74
|
|
|
—
|
|
|
74
|
|
|
188
|
|
|
199
|
|
|
387
|
|
Total recognized in the consolidated income statement
|
391
|
|
|
(37
|
)
|
|
354
|
|
|
82
|
|
|
72
|
|
|
154
|
|
|
195
|
|
|
5,319
|
|
|
5,514
|
|
|
At December 31,
|
||||||||
|
2016
|
|
2015
|
||||||
|
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
|
(1,909
|
)
|
|
2,201
|
|
(1,675
|
)
|
|
2,045
|
Total impact on defined benefit obligation
|
(1,909
|
)
|
|
2,201
|
|
(1,675
|
)
|
|
2,045
|
|
At
December 31, 2015 |
|
Additional provisions
|
|
Utilization
|
|
Translation differences and other
|
|
At
December 31, 2016 |
|||||
|
(€ thousand)
|
|||||||||||||
Warranty and recall campaigns provision
|
76,312
|
|
|
59,846
|
|
|
(13,922
|
)
|
|
175
|
|
|
122,411
|
|
Legal proceedings and disputes
|
44,977
|
|
|
910
|
|
|
(1,484
|
)
|
|
933
|
|
|
45,336
|
|
Other risks
|
20,558
|
|
|
21,662
|
|
|
(1,212
|
)
|
|
6,472
|
|
|
47,480
|
|
Total provisions
|
141,847
|
|
|
82,418
|
|
|
(16,618
|
)
|
|
7,580
|
|
|
215,227
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Recorded in the consolidated income statement within:
|
|
|
|
|
|
|||
Cost of sales
|
4,499
|
|
|
3,847
|
|
|
5,088
|
|
Other expenses, net
|
14,559
|
|
|
4,111
|
|
|
8,589
|
|
Selling, general and administrative costs
|
2,604
|
|
|
8
|
|
|
1,317
|
|
Income tax expense
|
—
|
|
|
569
|
|
|
—
|
|
|
21,662
|
|
|
8,535
|
|
|
14,994
|
|
|
Balance at December 31,
2015 |
|
Proceeds from borrowings
|
|
Repayments of borrowings
|
|
Interest accrued and other
|
|
Translation differences
|
|
Balance at December 31,
2016 |
||||||
|
(€ thousand)
|
||||||||||||||||
Borrowings from banks
|
2,245,144
|
|
|
10,041
|
|
|
(1,422,719
|
)
|
|
4,977
|
|
|
(557
|
)
|
|
836,886
|
|
Bond
|
—
|
|
|
490,729
|
|
|
—
|
|
|
6,885
|
|
|
—
|
|
|
497,614
|
|
Securitizations
|
—
|
|
|
527,124
|
|
|
(64,424
|
)
|
|
257
|
|
|
22,713
|
|
|
485,670
|
|
Other debt
|
11,459
|
|
|
66,092
|
|
|
(50,245
|
)
|
|
68
|
|
|
497
|
|
|
27,871
|
|
Financial liabilities with FCA
|
3,787
|
|
|
—
|
|
|
(3,744
|
)
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
Total debt
|
2,260,390
|
|
|
1,093,986
|
|
|
(1,541,132
|
)
|
|
12,187
|
|
|
22,610
|
|
|
1,848,041
|
|
|
At December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
Due within one year
|
|
Due between
one and
five years
|
|
Due beyond five years
|
|
Total
|
|
Due within one year
|
|
Due between
one and
five years
|
|
Due beyond five years
|
|
Total
|
||||||||
|
(€ thousand)
|
||||||||||||||||||||||
Borrowings from banks
|
227,408
|
|
|
609,478
|
|
|
—
|
|
|
836,886
|
|
|
905,419
|
|
|
1,339,725
|
|
|
—
|
|
|
2,245,144
|
|
Bond
|
—
|
|
|
497,614
|
|
|
—
|
|
|
497,614
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Securitizations
|
144,597
|
|
|
341,073
|
|
|
—
|
|
|
485,670
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other debt
|
27,871
|
|
|
—
|
|
|
—
|
|
|
27,871
|
|
|
10,203
|
|
|
1,256
|
|
|
—
|
|
|
11,459
|
|
Financial liabilities with FCA
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,787
|
|
|
—
|
|
|
—
|
|
|
3,787
|
|
Total Debt
|
399,876
|
|
|
1,448,165
|
|
|
—
|
|
|
1,848,041
|
|
|
919,409
|
|
|
1,340,981
|
|
|
—
|
|
|
2,260,390
|
|
|
Currency
|
|
At December 31, 2016
|
|
Interest Rate
|
||||
|
|
|
Principal
|
|
Book Value
|
|
|
||
|
|
|
(Currency thousand)
|
|
(€ thousand)
|
|
|
||
Term Loan
|
Euro
|
|
733,333
|
|
|
731,168
|
|
|
EURIBOR 3M + 80bps
|
Term Loan
|
U.S. Dollar
|
|
73,013
|
|
|
69,266
|
|
|
LIBOR 3M + 80bps
|
Other borrowings from banks
|
U.S. Dollar
|
|
25,000
|
|
|
23,745
|
|
|
LIBOR + 90bps
|
Other borrowings from banks
|
Euro
|
|
n.a.
|
|
|
12,707
|
|
|
Various
|
Total borrowings from banks
|
|
|
|
|
836,886
|
|
|
|
|
At December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
Due within one year
|
|
Due between
one and
five years
|
|
Due beyond five years
|
|
Total
|
|
Due within one year
|
|
Due between
one and
five years
|
|
Due beyond five years
|
|
Total
|
||||||||
|
(€ thousand)
|
||||||||||||||||||||||
Total other liabilities (excluding accrued expenses and deferred income)
|
309,864
|
|
|
4,913
|
|
|
7,026
|
|
|
321,803
|
|
|
289,694
|
|
|
12,512
|
|
|
7,612
|
|
|
309,818
|
|
•
|
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.
|
|
|
|
At December 31, 2016
|
||||||||||
|
Note
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
(€ thousand)
|
||||||||||
Cash and cash equivalents
|
|
|
457,784
|
|
|
—
|
|
|
—
|
|
|
457,784
|
|
Investments and other financial assets - Delta Topco option
|
17
|
|
—
|
|
|
11,967
|
|
|
—
|
|
|
11,967
|
|
Current financial assets
|
20
|
|
—
|
|
|
10,388
|
|
|
—
|
|
|
10,388
|
|
Total assets
|
|
|
457,784
|
|
|
22,355
|
|
|
—
|
|
|
480,139
|
|
Other financial liabilities
|
20
|
|
—
|
|
|
39,638
|
|
|
—
|
|
|
39,638
|
|
Total liabilities
|
|
|
—
|
|
|
39,638
|
|
|
—
|
|
|
39,638
|
|
|
|
|
At December 31, 2015
|
||||||||||
|
Note
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
(€ thousand)
|
||||||||||
Cash and cash equivalents
|
|
|
182,753
|
|
|
—
|
|
|
—
|
|
|
182,753
|
|
Investments and other financial assets - Delta Topco option
|
|
|
—
|
|
|
—
|
|
|
10,858
|
|
|
10,858
|
|
Current financial assets
|
20
|
|
—
|
|
|
5,070
|
|
|
—
|
|
|
5,070
|
|
Total assets
|
|
|
182,753
|
|
|
5,070
|
|
|
10,858
|
|
|
198,681
|
|
Other financial liabilities
|
20
|
|
—
|
|
|
103,332
|
|
|
—
|
|
|
103,332
|
|
Total liabilities
|
|
|
—
|
|
|
103,332
|
|
|
—
|
|
|
103,332
|
|
|
Other non- current securities
|
|
Other financial assets/(liabilities)
|
||
|
(€ thousand)
|
||||
At January 1, 2015
|
10,546
|
|
|
—
|
|
Gains/(losses) recognized in consolidated income statement
|
312
|
|
|
—
|
|
Gains/(losses) recognized in other comprehensive income
|
—
|
|
|
—
|
|
Issue/(settlement)
|
—
|
|
|
—
|
|
December 31, 2015
|
10,858
|
|
|
—
|
|
Gains/(losses) recognized in consolidated income statement
|
1,109
|
|
|
—
|
|
Gains/(losses) recognized in other comprehensive income
|
—
|
|
|
—
|
|
Issues/(settlements)
|
—
|
|
|
—
|
|
At December 31, 2016
|
11,967
|
|
|
—
|
|
|
|
|
At December 31,
|
||||||||||
|
|
|
2016
|
|
2015
|
||||||||
|
Note
|
|
Carrying amount
|
|
Fair value
|
|
Carrying amount
|
|
Fair value
|
||||
|
|
|
(€ thousand)
|
||||||||||
Deposits in FCA Group cash management pools
|
18
|
|
—
|
|
|
—
|
|
|
139,172
|
|
|
139,172
|
|
Receivables from financing activities
|
|
|
790,377
|
|
|
790,377
|
|
|
1,173,825
|
|
|
1,173,825
|
|
Client financing
|
|
|
758,679
|
|
|
758,679
|
|
|
1,115,661
|
|
|
1,115,661
|
|
Financial receivables from FCA Group companies
|
18
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Factoring receivables
|
18
|
|
—
|
|
|
—
|
|
|
30,901
|
|
|
30,901
|
|
Dealer financing
|
18
|
|
31,698
|
|
|
31,698
|
|
|
27,263
|
|
|
27,263
|
|
Other
|
18
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
|
790,377
|
|
|
790,377
|
|
|
1,312,997
|
|
|
1,312,997
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt
|
24
|
|
1,848,041
|
|
|
1,849,000
|
|
|
2,260,390
|
|
|
2,259,878
|
|
•
|
the sale of engines and car bodies to Maserati S.p.A. (“Maserati”) which is controlled by the FCA Group;
|
•
|
the purchase of engine components for the use in the production of Maserati engines from FCA US LLC, which is controlled by FCA Group;
|
•
|
the purchase of automotive lighting and automotive components from Magneti Marelli S.p.A., Automotive Lighting Italia S.p.A., Sistemi Sospensioni S.p.A. and Magneti Marelli Powertrain Slovakia s.r.o. (which form part of “Magneti Marelli”), which are controlled by the FCA Group;
|
•
|
transactions with other FCA Group companies, mainly relating to the services provided by FCA Group companies, including human resources, payroll, tax, customs and procurement of insurance coverage and sponsorship revenues for the display of FCA Group company logos on the Formula 1 cars;
|
•
|
the Group sold a portion of its trade and financial receivables to the FCA Bank Group, which is a joint venture between FCA Group and Credit Agricole. On derecognition of the asset, the difference between the carrying amount and the consideration received or receivable was recognized in cost of sales;
|
•
|
in November 2016, the Group finalized an agreement with FCA Bank to provide financial services in Europe. Under such agreement FCA Bank acquired from the Group a majority stake in FFS GmbH for a purchase price of €18,595 thousand, which the Group received upon sale. In addition to the purchase price, as a result of the funding of FFS GmbH being directly provided by FCA Bank, the Group also received cash of €431,958 thousand.
|
•
|
certain Ferrari financing companies obtained financing from FCA Group companies. Financial liabilities with FCA Group companies at December 31, 2015 related to the amounts owed under such facilities.
|
•
|
Ferrari Group companies participated in the FCA group-wide cash management system where the operating cash management, main funding operations and liquidity investment of the Group were centrally coordinated by dedicated treasury companies of the FCA Group. Deposits in FCA Group cash management pools represented the Group’s participation in such pools. Deposits with FCA Group earned EURIBOR or LIBOR +15bps.
|
•
|
the Group incurs rental costs from Iveco Group companies related to the rental of trucks used by the Formula 1 racing team;
|
•
|
the Group earns sponsorship revenue from Iveco S.p.A.
|
•
|
the purchase of leather goods from Poltrona Frau S.p.A. (“Poltrona Frau”). The former Chairman had significant influence over Poltrona Frau until March 25, 2014 when he sold his interest;
|
•
|
the purchase of components for Formula 1 racing cars from COXA S.p.A., controlled by Piero Ferrari;
|
•
|
consultancy services provided by HPE S.r.l., controlled by Piero Ferrari;
|
•
|
sponsorship agreement relating to Formula 1 activities with Philip Morris International and Ferretti S.p.A.;
|
•
|
sale of cars to certain members of the Board of Directors of Ferrari S.p.A. and Exor.
|
|
For the years ended December 31,
|
|||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||
|
Net revenues
|
|
Costs
(1)
|
|
Net financial income/(expenses)
|
|
Net revenues
|
|
Costs
(1)
|
|
Net financial income/(expenses)
|
|
Net revenues
|
|
Costs
(1)
|
|
Net financial income/(expenses)
|
|||||||||
|
(€ thousand)
|
|||||||||||||||||||||||||
FCA Group companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Maserati
|
241,478
|
|
|
1,933
|
|
|
—
|
|
|
184,444
|
|
|
2,250
|
|
|
67
|
|
|
259,143
|
|
|
31,345
|
|
|
1,274
|
|
FCA US LLC
|
—
|
|
|
37,612
|
|
|
—
|
|
|
1,253
|
|
|
23,562
|
|
|
—
|
|
|
1,110
|
|
|
33,898
|
|
|
—
|
|
Magneti Marelli
|
1,735
|
|
|
29,663
|
|
|
—
|
|
|
1,397
|
|
|
29,746
|
|
|
—
|
|
|
1,190
|
|
|
24,233
|
|
|
—
|
|
Other FCA Group companies
|
5,472
|
|
|
9,163
|
|
|
(471
|
)
|
|
7,412
|
|
|
42,768
|
|
|
(11,601
|
)
|
|
5,198
|
|
|
38,706
|
|
|
2,793
|
|
Total FCA Group companies
|
248,685
|
|
|
78,371
|
|
|
(471
|
)
|
|
194,506
|
|
|
98,326
|
|
|
(11,534
|
)
|
|
266,641
|
|
|
128,182
|
|
|
4,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Exor Group companies (excluding the FCA Group)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Exor Group companies
|
192
|
|
|
173
|
|
|
—
|
|
|
277
|
|
|
338
|
|
|
—
|
|
|
279
|
|
|
404
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Poltrona Frau
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
20,115
|
|
|
—
|
|
COXA S.p.A.
|
121
|
|
|
7,096
|
|
|
—
|
|
|
174
|
|
|
7,561
|
|
|
—
|
|
|
279
|
|
|
8,774
|
|
|
—
|
|
HPE S.r.l.
|
—
|
|
|
6,447
|
|
|
—
|
|
|
11
|
|
|
5,518
|
|
|
—
|
|
|
—
|
|
|
3,461
|
|
|
—
|
|
Other related parties
|
1,950
|
|
|
24
|
|
|
—
|
|
|
1,024
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
Total other related parties
|
2,071
|
|
|
13,567
|
|
|
—
|
|
|
1,209
|
|
|
13,085
|
|
|
—
|
|
|
377
|
|
|
32,470
|
|
|
—
|
|
Total transactions with related parties
|
250,948
|
|
|
92,111
|
|
|
(471
|
)
|
|
195,992
|
|
|
111,749
|
|
|
(11,534
|
)
|
|
267,297
|
|
|
161,056
|
|
|
4,067
|
|
Total for the Group
|
3,105,084
|
|
|
1,899,433
|
|
|
(27,729
|
)
|
|
2,854,369
|
|
|
1,848,467
|
|
|
(10,151
|
)
|
|
2,762,360
|
|
|
1,832,059
|
|
|
8,765
|
|
|
At December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
Trade receivables
|
|
Trade payables
|
|
Other current assets
(1)
|
|
Other liabilities
(2)
|
|
Trade receivables
|
|
Trade payables
|
|
Other current assets
(1)
|
|
Other liabilities
(2)
|
||||||||
|
(€ thousand)
|
||||||||||||||||||||||
FCA Group companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Maserati
|
73,532
|
|
|
4,462
|
|
|
—
|
|
|
32,379
|
|
|
40,362
|
|
|
4,884
|
|
|
—
|
|
|
34,924
|
|
FCA US LLC
|
166
|
|
|
12,529
|
|
|
—
|
|
|
—
|
|
|
501
|
|
|
4,248
|
|
|
—
|
|
|
—
|
|
Magneti Marelli
|
1,739
|
|
|
6,702
|
|
|
—
|
|
|
—
|
|
|
1,007
|
|
|
6,169
|
|
|
—
|
|
|
—
|
|
Other FCA Group companies
|
257
|
|
|
3,291
|
|
|
1,439
|
|
|
12
|
|
|
377
|
|
|
5,399
|
|
|
3,668
|
|
|
122,743
|
|
Total FCA Group companies
|
75,694
|
|
|
26,984
|
|
|
1,439
|
|
|
32,391
|
|
|
42,247
|
|
|
20,700
|
|
|
3,668
|
|
|
157,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exor Group companies (excluding the FCA Group)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exor Group companies
|
235
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
COXA S.p.A.
|
16
|
|
|
1,194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,434
|
|
|
—
|
|
|
—
|
|
HPE S.r.l.
|
—
|
|
|
1,162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,609
|
|
|
—
|
|
|
—
|
|
Other related parties
|
554
|
|
|
68
|
|
|
—
|
|
|
4
|
|
|
3,670
|
|
|
—
|
|
|
—
|
|
|
2,767
|
|
Total other related parties
|
570
|
|
|
2,424
|
|
|
—
|
|
|
4
|
|
|
3,670
|
|
|
3,043
|
|
|
—
|
|
|
2,767
|
|
Total transactions with related parties
|
76,499
|
|
|
29,449
|
|
|
1.439
|
|
|
32,395
|
|
|
45,919
|
|
|
23,783
|
|
|
3,668
|
|
|
160,434
|
|
Total for the Group
|
243,977
|
|
|
614,888
|
|
|
55,041
|
|
|
697,870
|
|
|
158,165
|
|
|
507,499
|
|
|
61,846
|
|
|
780,016
|
|
|
For the years ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
|
(€ thousand)
|
|||||||
Directors of
Ferrari N.V.
|
8,617
|
|
|
243
|
|
|
—
|
|
Directors of Ferrari
S.p.A.
|
—
|
|
|
2,904
|
|
|
20,676
|
|
Statutory auditors
|
105
|
|
|
105
|
|
|
164
|
|
Total emoluments
|
8,722
|
|
|
3,252
|
|
|
20,840
|
|
•
|
€2,827 thousand in 2016 (€2,372 thousand in 2015 and €4,132 thousand in 2014) for salary;
|
•
|
€290 thousand in 2016 (€775 thousand in 2015 and €1,517 thousand in 2014) as the Group’s contribution to defined benefit obligations and long-term bonus plans; and
|
•
|
€5,500 thousand in 2016 for compensation costs related to the retirement of the former CEO of the Group. An amount of €15,027 thousand was included in 2014 for compensation costs related to the resignation of the former Chairman of the Group. At December 31, 2014, the total payable to the former Chairman amounted to €22,083 thousand and included the amount due for the post employment benefit plan.
|
|
At December 31, 2016
|
|||||||||||||
|
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
|
93,253
|
|
|
98,520
|
|
|
28,609
|
|
|
6,558
|
|
|
226,940
|
|
|
At December 31, 2016
|
|||||||||||||
|
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 operating lease agreements
|
1,510
|
|
|
2,726
|
|
|
1,414
|
|
|
112
|
|
|
5,762
|
|
•
|
credit risk, arising both from its normal commercial relations with final clients and dealers, and its financing activities;
|
•
|
liquidity risk, with particular reference to the availability of funds and access to the credit market, should the Group require, and to financial instruments in general;
|
•
|
financial market risk (principally relating to foreign currency exchange rates, and to a much lesser extent, interest rates), as the Group operates internationally in different currencies.
|
•
|
centralizing liquidity management through the use of cash pooling arrangement
|
•
|
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
|
•
|
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
2016
, the total trade flows exposed to foreign currency exchange rate risk amounted to the equivalent of 57 percent of the Group’s turnover (53 percent in
2015
).
|
•
|
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 Mexico and other markets where the U.S. Dollar is the reference currency. In
2016
, the value of commercial activity exposed to changes in the Euro/U.S. Dollar exchange rate accounted for about 60 percent (67 percent in
2015
) of the total currency risk from commercial activity. Other significant exposures included the exchange rate between the Euro and the following currencies: Swiss Franc, Pound Sterling, Canadian Dollar, Australian Dollar, Japanese Yen, Chinese Yuan and Hong Kong Dollar. None of these exposures, taken individually, exceeded 10 percent of the Group’s total foreign currency exchange rate exposure for commercial activity in
2016
. It is the Group’s policy to use derivative financial instruments to hedge a certain percentage of the exposure, on average between 50 percent and 90 percent. Until 2014, some exposures were covered over a 24-month rolling period, and since 2015 such timeframe has been reduced to 12 months for all currencies. For firm commitments, the policy is to fully hedge the exposure.
|
•
|
Several subsidiaries are located in countries that are outside the Eurozone, in particular the United States, the United Kingdom, Switzerland, China, Hong Kong, Japan, Australia and Singapore. As the Group’s reporting currency is the Euro, the income statements of those companies are converted 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 restated in 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.
|
(1)
|
Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America
|
(2)
|
Greater China includes China, Hong Kong and Taiwan
|
(3)
|
Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea
|
|
At December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||
|
Property, plant and equipment
|
|
Goodwill
|
|
Intangible assets
|
|
Property, plant and equipment
|
|
Goodwill
|
|
Intangible assets
|
||||||
|
(€ thousand)
|
||||||||||||||||
Italy
|
661,770
|
|
|
785,182
|
|
|
353,116
|
|
|
617,420
|
|
|
787,178
|
|
|
304,754
|
|
Rest of EMEA
|
2,430
|
|
|
—
|
|
|
—
|
|
|
2,779
|
|
|
—
|
|
|
1,691
|
|
Americas
(1)
|
3,877
|
|
|
—
|
|
|
988
|
|
|
4,347
|
|
|
—
|
|
|
1,071
|
|
Greater China
(2)
|
258
|
|
|
—
|
|
|
—
|
|
|
532
|
|
|
—
|
|
|
—
|
|
Rest of APAC
(3)
|
948
|
|
|
—
|
|
|
290
|
|
|
1,052
|
|
|
—
|
|
|
294
|
|
Total
|
669,283
|
|
|
785,182
|
|
|
354,394
|
|
|
626,130
|
|
|
787,178
|
|
|
307,810
|
|
(1)
|
Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America
|
(2)
|
Greater China includes China, Hong Kong and Taiwan
|
(3)
|
Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea
|
EXECUTION VERSION
|
|
trust deed
|
16 March 2016
|
FERRARI N.V.
as Issuer
and
CITICORP TRUSTEE COMPANY LIMITED
as Trustee
constituting €500,000,000 1.500 per cent. Notes due 16 March 2023
|
Clause
|
|
Page
|
|
1
|
Definitions
|
3
|
|
2
|
Covenant to Repay and to Pay Interest on Notes
|
7
|
|
3
|
Form and Issue of Notes and Coupons
|
9
|
|
4
|
Fees, Duties and Taxes
|
10
|
|
5
|
Covenant of Compliance
|
10
|
|
6
|
Cancellation of Notes and Records
|
10
|
|
7
|
Enforcement
|
11
|
|
8
|
Application of Moneys
|
12
|
|
9
|
Notice of Payments
|
12
|
|
10
|
Investment by Trustee
|
12
|
|
11
|
Covenants by the Issuer
|
13
|
|
12
|
Remuneration and Indemnification of Trustee
|
15
|
|
13
|
Supplement to Trustee Acts
|
16
|
|
14
|
Trustee's Liability
|
21
|
|
15
|
Trustee Contracting with the Issuer
|
21
|
|
16
|
Waiver, Authorisation and Determination
|
22
|
|
17
|
Modification
|
22
|
|
18
|
Breach
|
23
|
|
19
|
Substitution
|
23
|
|
20
|
Holder of Definitive Note Assumed to be Couponholder
|
23
|
|
21
|
No Notice To Couponholders
|
24
|
|
22
|
Currency Indemnity
|
24
|
|
23
|
New Trustee
|
24
|
|
24
|
Separate and Co-Trustees
|
24
|
|
25
|
Trustee's Retirement and Removal
|
25
|
|
26
|
Trustee's Powers to be Additional
|
25
|
|
27
|
Notices
|
25
|
|
28
|
Governing Law and Submission to Jurisdiction
|
26
|
|
29
|
Counterparts
|
27
|
|
30
|
Contracts (Rights of Third Parties) Act 1999
|
27
|
|
31
|
Severability
|
27
|
|
Schedule
|
|
||
1
|
Forms of Global Notes
|
28
|
|
|
Part 1 Form of Temporary Global Note
|
28
|
|
|
Part 2 Form of Permanent Global Note
|
34
|
|
2.
|
Form of Definitive Note and Coupon and Conditions of the Notes
|
40
|
|
|
Part 1 Form of Definitive Note
|
40
|
|
|
Part 2 Form of Coupon
|
42
|
|
|
Part 3 Condition of the notes
|
43
|
|
3.
|
Provisions for Meetings of Noteholders
|
55
|
|
4.
|
Form of Directors’ Certificate
|
61
|
|
Signatories
|
62
|
|
THIS TRUST DEED
is made on 16 March 2016
|
(1)
|
FERRARI N.V.
, a public limited liability company (
naamloze vennootschap
) incorporated in the Netherlands, having its official seat (
statutaire zetel
) in Amsterdam, the Netherlands and having its principal place of business at Via Abetone Inferiore N.4, I-41053 Maranello, Italy, registered with the trade register of the chamber of commerce under number 64060977 (the
Issuer
); and
|
(2)
|
CITICORP TRUSTEE COMPANY LIMITED
, a company incorporated under the laws of England and Wales, whose principal office is at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, United Kingdom (the
Trustee
, which expression shall include its successor(s)) as trustee for the Noteholders and Couponholders (each as defined below).
|
|
WHEREAS
:
|
(A)
|
By a resolution of the Board of Directors of the Issuer passed on 31 December 2015 the Issuer has resolved to issue €500,000,000 1.500 per cent. Notes due 16 March 2023 to be constituted by this Trust Deed.
|
(B)
|
The Notes (as defined below) in definitive form will be in bearer form with Coupons attached.
|
(C)
|
The Trustee has agreed to act as trustee of these presents for the benefit of the Noteholders and Couponholders upon and subject to the terms and conditions of these presents.
|
|
NOW THIS TRUST DEED WITNESSES
and it is agreed and declared as follows:
|
1.
|
DEFINITIONS
|
1.1
|
In these presents unless there is anything in the subject or context inconsistent therewith the following expressions shall have the following meanings:
|
(a)
|
reduce or cancel the amount payable or, where applicable, modify the method of calculating the amount payable or the date of payment in respect of any principal or interest in respect of the Notes;
|
(b)
|
alter the currency in which payments under the Notes and Coupons are to be made;
|
(c)
|
alter the quorum or majority required to pass an Extraordinary Resolution; and
|
(d)
|
alter of the definition of a Basic Terms Modification or the proviso to paragraph 5 of Schedule 3.
|
(a)
|
those Notes which have been redeemed pursuant to these presents;
|
(b)
|
those Notes in respect of which the date for redemption in accordance with the Conditions has occurred and the redemption moneys and all interest payable thereon) have been duly paid to the Trustee or to the Principal Paying Agent in the manner provided in the Agency Agreement (and where appropriate notice to that effect has been given to the relative Noteholders in accordance with Condition 12) and remain available for payment against presentation of the relevant Notes and/or Coupons;
|
(c)
|
those Notes which have been purchased and cancelled in accordance with Conditions 6.4 and 6.5;
|
(d)
|
those Notes which have become void under Condition 8;
|
(e)
|
those mutilated or defaced Notes which have been surrendered and cancelled and in respect of which replacements have been issued pursuant to Condition 11;
|
(f)
|
(for the purpose only of ascertaining the principal amount of the Notes outstanding and without prejudice to the status for any other purpose of the relevant Notes) those Notes which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued pursuant to Condition 11; and
|
(g)
|
any Global Note to the extent it shall have been exchanged for Definitive Notes pursuant to its provisions, the provisions of these presents and the Agency Agreement.
|
(i)
|
the right to attend and vote at any meeting of the Noteholders;
|
(ii)
|
the determination of how many and which Notes are for the time being outstanding for the purposes of Clause 7.1, Conditions 9.1, 10.1 and Schedule 3 (other than paragraph 22 of Schedule 3);
|
(iii)
|
any discretion, power or authority (whether contained in these presents or vested by operation of law) which the Trustee is required, expressly or impliedly, to exercise in or by reference to the interests of the Noteholders or any of them; and
|
(iv)
|
the determination by the Trustee whether any event, circumstance, matter or thing is, in its opinion, materially prejudicial to the interests of the Noteholders or any of them,
|
1.2
|
(a) All references in these presents to principal and/or interest in respect of the Notes or to any moneys payable by the Issuer under these presents shall be deemed to include, in the case of amounts of principal payable, a reference to any specific redemption price (as defined in the relevant Conditions) and, in any case,
|
2.
|
COVENANT TO REPAY AND TO PAY INTEREST ON NOTES
|
2.2
|
The Issuer covenants with the Trustee that it will, in accordance with these presents, on the due date for the final maturity of the Notes provided for in the Conditions, or on such earlier date as the same or any part thereof may become due and repayable thereunder, pay or procure to be paid unconditionally to or to the order of the Trustee in euro in immediately available funds the principal amount of the Notes repayable on that date and shall in the meantime and until such date (both before and after any judgment or other order of a court of competent jurisdiction) pay or procure to be paid unconditionally to or to the order of the Trustee as aforesaid interest (which shall accrue from day to day) on the principal amount of the Notes outstanding on the dates provided in, and at the rate set out in the Conditions
provided that
:
|
(a)
|
every payment of principal or interest in respect of the Notes to or to the account of the Principal Paying Agent in the manner provided in the Agency Agreement shall operate in satisfaction
pro tanto
of the relative covenant by the Issuer in this Clause except to the extent that there is default in the subsequent payment thereof in accordance with the Conditions to the Noteholders or Couponholders (as the case may be);
|
(b)
|
in any case where payment of principal is not made to the Trustee or the Principal Paying Agent on or before the due date, interest shall continue to accrue on the principal amount of the Notes (both before and after any judgment or other order of a court of competent jurisdiction) at the rate set out in the Conditions (or, if higher, the rate of interest on judgment debts for the time being provided by English law) up to and including the date which the Trustee determines to be the date on and after which payment is to be made to the Noteholders in respect thereof as stated in a notice given to the Noteholders in accordance with Condition 12 (such date to be not later than 30 days after the day on which the whole of such principal amount, together with an amount equal to the interest which has accrued and is to accrue pursuant to this proviso up to and including that date, has been received by the Trustee or the Principal Paying Agent); and
|
(c)
|
in any case where payment of the whole or any part of the principal amount on any Note is improperly withheld or refused upon due presentation thereof (other than in circumstances contemplated by proviso (b) above) interest shall accrue on that principal amount payment of which has been so withheld or refused (both before and after any judgment or other order of a court of competent jurisdiction) at the rate set out in the Conditions (or, if higher, the rate of interest on judgment debts for the time being provided by English law) from and including the date of such withholding or refusal up to and including the date on which, upon further presentation of the relevant Note, payment of the full amount (including interest as aforesaid) in Euro payable in respect of such Note is made or (if earlier) the seventh day after notice is given to the relevant Noteholder (either individually or in accordance with Condition 12) that the full amount (including interest as aforesaid) in euro payable in respect of such Note is available for payment,
provided that
, upon further presentation thereof being duly made, such payment is made.
|
2.3
|
At any time after an Event of Default or a Potential Event of Default shall have occurred or the Notes shall otherwise have become due and repayable or the Trustee shall have received any money which it proposes to pay under Clause 8 to the Noteholders and/or Couponholders, the Trustee may:
|
(d)
|
by notice in writing to the Issuer, the Principal Paying Agent and the other Paying Agents require the Principal Paying Agent and the other Paying Agents pursuant to the Agency Agreement:
|
(i)
|
to act thereafter, until otherwise instructed by the Trustee as Paying Agents of the Trustee in relation to payments to be made by or on behalf of the Trustee under the provisions of these presents
mutatis mutandis
on the terms provided in the Agency Agreement (save that the Trustee's liability under any provisions thereof for the indemnification, remuneration and payment of out-of-pocket expenses of the Paying Agents shall be limited to the amounts for the time being held by the Trustee on the trusts of these presents in relation to the Notes and available for such purpose) and thereafter to hold all Notes, Coupons and all sums, documents and records held by them in respect of Notes and Coupons on behalf of the Trustee; or
|
(ii)
|
to deliver up all Notes, Coupons and all sums, documents and records held by them in respect of Notes and Coupons to the Trustee or as the Trustee shall direct in such notice
provided that
such notice shall be deemed not to apply to any documents or records which the relative Paying Agent is obliged not to release by any law or regulation; and/or
|
(e)
|
by notice in writing to the Issuer require it to make all subsequent payments in respect of the Notes and Coupons to or to the order of the Trustee and not to the Principal Paying Agent; with effect from the issue of any such notice to the Issuer and until such notice is withdrawn proviso (a) to Clause 2.2 relating to the Notes.
|
|
FURTHER ISSUES
|
(a)
|
The Issuer may from time to time (but subject always to the provisions of these presents) without the consent of the Noteholders or the Couponholders create and issue further notes, having terms and conditions the same as those of the Notes, or the same except for the amount and date of the first payment of interest, which shall be consolidated and form a single series with the outstanding Notes.
|
(b)
|
Any further notes or bonds which are to be created and issued pursuant to the provisions of paragraph (a) above so as to form a single series with the Notes and/or any further notes or bonds shall be constituted by a trust deed supplemental to this Trust Deed. In any such case the Issuer shall prior to the issue of any such further notes or bonds to be so constituted execute and deliver to the Trustee a trust deed supplemental to this Trust Deed (in relation to which all applicable stamp duties or other documentation fees, duties or taxes have been paid and, if applicable, duly stamped or denoted accordingly) and containing a covenant by the Issuer in the form mutatis mutandis of Clause 2.1 in relation to the principal and interest in respect of such further notes or bonds and such other provisions (whether or not corresponding to any of the provisions contained in this Trust Deed) as the Trustee shall reasonably require.
|
(c)
|
A memorandum of every such supplemental trust deed shall be endorsed by the Trustee on this Trust Deed and by the Issuer on its duplicates of this Trust Deed.
|
(d)
|
Whenever it is proposed to create and issue any further notes or bonds the Issuer shall give to the Trustee not less than 30 days' notice in writing of its intention so to do stating the amount of further notes or bonds proposed to be created and issued.
|
3.
|
FORM AND ISSUE OF NOTES AND COUPONS
|
3.1
|
The Notes shall be represented initially by the Temporary Global Note which the Issuer shall issue to a bank depositary common to both Euroclear and Clearstream, Luxembourg on terms that such depositary shall hold the same for the account of the persons who would otherwise be entitled to receive the Notes in definitive form (
Definitive Notes
) and the successors in title to such persons as appearing in the records of Euroclear and Clearstream, Luxembourg for the time being.
|
3.2
|
The Temporary Global Note shall be printed or typed in the form or substantially in the form set out in Part 1 of Schedule 1 and may be a facsimile. The Temporary Global Note shall be in the aggregate principal amount of €500,000,000 and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Principal Paying Agent. The Temporary Global Note so executed and authenticated shall be a binding and valid obligation of the Issuer and title thereto shall pass by delivery.
|
3.3
|
The Issuer shall issue the Permanent Global Note in exchange for the Temporary Global Note in accordance with the provisions thereof. The Permanent Global Note shall be printed or typed in the form or substantially in the form set out in Part 2 of Schedule 1 and may be a facsimile. The Permanent Global Note shall be in the aggregate principal amount of up to €500,000,000 and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Principal Paying Agent. The Permanent Global Note so executed and authenticated shall be a binding and valid obligation of the Issuer and title thereto shall pass by delivery.
|
3.4
|
The Issuer shall issue the Definitive Notes (together with the unmatured Coupons attached) in exchange for the Temporary Global Note and/or the Permanent Global Note in accordance with the provisions thereof.
|
3.5
|
The Definitive Notes and the Coupons shall be to bearer in the respective forms or substantially in the respective forms set out in Schedule 2 and the Definitive Notes shall be issued in the denominations €100,000 and integral
|
3.6
|
The Definitive Notes shall be signed manually or in facsimile by two of the Directors of the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Principal Paying Agent.
|
3.7
|
The Issuer may use the facsimile signature of any person who at the date such signature is affixed is a person duly authorised by the Issuer or is a Director of the Issuer as referred to in subclauses 3.2, 3.3 and 3.6 above notwithstanding that at the time of issue of the Temporary Global Note , the Permanent Global Note or any of the Definitive Notes, as the case may be, he may have ceased for any reason to be so authorised or to be the holder of such office. The Definitive Notes so signed and authenticated, and the Coupons so signed, upon execution and authentication of the relevant Definitive Notes, shall be binding and valid obligations of the Issuer.
|
4.
|
FEES, DUTIES AND TAXES
|
5.
|
COVENANT OF COMPLIANCE
|
6.
|
CANCELLATION OF NOTES AND RECORDS
|
6.1
|
The Issuer shall procure that all Notes (a) redeemed or (b) purchased by or on behalf of the Issuer or any of its Subsidiaries or (c) which, being mutilated or defaced, have been surrendered and replaced pursuant to Condition 11 or (d) exchanged as provided in these presents (together in each case with all unmatured Coupons attached thereto or delivered therewith) and all Coupons paid in accordance with the Conditions or which, being mutilated or defaced, have been surrendered and replaced pursuant to Condition 11 shall forthwith be cancelled by or on behalf of the Issuer and a certificate stating:
|
(a)
|
the aggregate principal amount of Notes which have been redeemed and the aggregate amounts in respect of Coupons which have been paid;
|
(b)
|
the serial numbers of such Notes in definitive form;
|
(c)
|
the total numbers (where applicable, of each denomination) by maturity date of such Coupons;
|
(d)
|
the aggregate amount of interest paid (and the due dates of such payments) on each Global Note;
|
(e)
|
the aggregate principal amount of Notes (if any) which have been purchased by or on behalf of the Issuer or any of its Subsidiaries and (where applicable) cancelled and the serial numbers of such Notes in definitive form and the total number (where applicable, of each denomination) by maturity date of the Coupons attached thereto or surrendered therewith; and
|
(f)
|
the aggregate principal amounts of Notes and the aggregate amounts in respect of Coupons which have been so exchanged or surrendered and replaced and the serial numbers of such Notes in definitive form and the total number (where applicable, of each denomination) by maturity date of such Coupons,
|
6.2
|
The Issuer shall procure (a) that the Principal Paying Agent shall keep a full and complete record of all Notes and Coupons (other than serial numbers of Coupons) and of their redemption, purchase by or on behalf of the Issuer or any of its Subsidiaries, cancellation, payment or exchange (as the case may be) and of all replacement securities or coupons issued in substitution for lost, stolen, mutilated, defaced or destroyed Notes or Coupons (b) that the Principal Paying Agent shall, in respect of the Coupons of each maturity where the relevant Note is redeemed or repaid prior to its stated maturity date without all unmatured Coupons appertaining thereto, retain until the expiry of ten years from the Relevant Date in respect of such Coupons a list of the Coupons of that maturity still remaining unpaid or unexchanged and (c) that such records shall be made available to the Trustee at all reasonable times.
|
7.
|
ENFORCEMENT
|
7.1
|
The Trustee may at any time, at its absolute discretion and without notice, take such proceedings against the Issuer as it may think fit to enforce the provisions of this Trust Deed, the Notes and the Coupons, but it shall not be bound to take any such proceedings or any other action in relation to this Trust Deed, the Notes or the Coupons unless (a) it shall have been so directed by an Extraordinary Resolution of the Noteholders or so requested in writing by the holders of at least one-quarter in principal amount of the Notes then outstanding, and (b) it shall have been indemnified and/or secured and/or prefunded to its satisfaction against all Liabilities to which it may render itself liable or which it may incur by so doing.
|
7.2
|
Only the Trustee may enforce the provisions of these presents. No Noteholder or Couponholder shall be entitled to proceed directly against the Issuer unless the Trustee, having become bound so to proceed, fails so to do within a reasonable period and the failure shall be continuing.
|
7.3
|
If the Trustee (or any Noteholder or Couponholder where entitled under this Trust Deed so to do) makes any claim, institutes any legal proceeding or lodges any proof in a winding-up or insolvency of the Issuer under this Trust Deed or under the Notes, proof therein that:
|
(a)
|
as regards any specified Note the Issuer has made default in paying any principal due in respect of such Note shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the like default as regards all other Notes in respect of which a corresponding payment is then due; or
|
(b)
|
as regards any specified Coupon the Issuer has made default in paying any interest due in respect of such Coupon shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the like default as regards all other Coupons in respect of which a corresponding payment is then due,
|
7.4
|
The Trustee may refrain from taking any action in any jurisdiction if the taking of such action in that jurisdiction would, in its reasonable opinion based upon legal advice in the relevant jurisdiction, be contrary to any law of that jurisdiction or, to the extent applicable, of England. Furthermore, the Trustee may also refrain from taking such action if it would otherwise render it liable to any person in that jurisdiction or England or if, in its opinion based upon such legal advice, it would not have the power to do the relevant thing in that jurisdiction
|
8.
|
APPLICATION OF MONEYS
|
(a)
|
first
in payment or satisfaction of all amounts then due and unpaid under these presents, including without limitation Clause 12, to the Trustee and/or any Appointee;
|
(b)
|
second
in or towards reimbursement
pari passu
and rateably of any amounts paid by any Indemnifying Parties as contemplated by clause 12.8, together with interest thereon as provided in clause 12.9;
|
(c)
|
third
in or towards payment
pari passu
and rateably of all principal and interest then due and unpaid in respect of the Notes; and
|
(d)
|
fourth
in payment of the balance (if any) to the Issuer (without prejudice to, or liability in respect of, any question as to how such payment to the Issuer shall be dealt with as between the Issuer and any other person).
|
9.
|
NOTICE OF PAYMENTS
|
9.1
|
The Trustee shall give notice to the relevant Noteholders in accordance with Condition 12 of the day fixed for any payment to them under Clause 8. Such payment may be made in accordance with Condition 5 and any payment so made shall be a good discharge to the Trustee and the Issuer. Any payment in full of interest made in respect of a Coupon in the manner aforesaid shall extinguish any claim of a Noteholder which may arise directly or indirectly in respect of such interest.
|
9.2
|
Upon any payment under Clause 9.1 of principal or interest, the Note or Coupon in respect of which such payment is made shall, if the Trustee so requires, be produced to the Trustee or the Paying Agent by or through whom such payment is made and the Trustee shall (a) in the case of part payment, enface or cause such Paying Agent to enface a memorandum of the amount and date of payment thereon (or cause the Paying Agent to procure that the ICSDs make appropriate entries in their records to reflect such payment) or (b) in the case of payment in full, shall cause such Note or Coupon to be surrendered or shall cancel or procure the same to be cancelled and shall certify or procure the certification of such cancellation.
|
10.
|
INVESTMENT BY TRUSTEE
|
10.1
|
The Trustee may at its absolute discretion and pending payment invest moneys at any time available for the payment of principal and interest on the Notes of any series in some or one of the investments hereinafter authorised for such periods as it may consider expedient with power from time to time at the like absolute discretion to vary such investments and to accumulate such investments and the resulting interest and other income derived therefrom. The accumulated investments shall be applied under Clause 8. All interest and other income deriving from such investments shall be applied first in payment or satisfaction of all amounts then due and unpaid under these presents, including without limitation Clauses 12, to the Trustee and/or any Appointee and otherwise held for the benefit of and paid to the holders of the Notes of such series or the holders of the related Coupons, as the case may be.
|
10.2
|
Any moneys which under the trusts of these presents ought to or may be invested by the Trustee may be invested in the name or under the control of the Trustee in any investments or other assets in any part of the world whether or not they produce income or by placing the same on deposit in the name or under the control
|
11.
|
COVENANTS BY THE ISSUER
|
11.1
|
So long as any of the Notes remains outstanding the Issuer covenants with the Trustee that it shall:
|
(a)
|
so far as permitted by applicable law, give or procure to be given to the Trustee such opinions, certificates, information and evidence as it shall require and in such form as it shall require (including without limitation the procurement by the Issuer of all such certificates called for by the Trustee pursuant to paragraph (c) of Clause 13) for the purpose of the discharge or exercise of the duties, trusts, powers, authorities and discretions vested in it under these presents or by operation of law;
|
(b)
|
at all times keep and use all reasonable endeavours to procure that Ferrari Italy keeps proper books of account as may be necessary to comply with all applicable laws as so to enable the financial statements of the Issuer to be prepared and, at any time after the occurrence of an Event of Default or a Potential Event of Default or if the Trustee has grounds to believe that an Event of Default or a Potential Event of Default has occurred, allow and procure Ferrari Italy to allow so far as permitted by applicable law the Trustee and any person appointed by the Trustee to whom the Issuer or Ferrari Italy (as the case may be) shall have no reasonable objection free access to such books of account at all reasonable times during normal business hours;
|
(c)
|
send to the Trustee two copies in English of its annual audited accounts and every document issued or sent to holders of debt securities (including the Noteholders), in each case as soon as practicable after the issue or publication thereof;
|
(d)
|
forthwith give notice in writing to the Trustee upon becoming aware of any Event of Default or any Potential Event of Default;
|
(e)
|
give to the Trustee (i) within 14 days after demand by the Trustee therefor and (ii) (without the necessity for any such demand) within 14 days after the publication of its audited accounts in respect of each financial year commencing with the financial year ending 31 December 2016 and in any event not later than 180 days after the end of each such financial year a certificate in or substantially in the form set out in Schedule 4 signed by two Directors or authorised signatories of the Issuer to the effect that to the best of the knowledge, information and belief of the persons so certifying, they having made all reasonable enquiries, as at the date which is not earlier than 5 days prior to the date of such certificate (the
certification date
) there did not exist and had not existed since the certification date of the previous certificate (or in the case of the first such certificate the date hereof) any Event of Default or any Potential Event of Default (or if such exists or existed specifying the same) and that during the period from and including the certification date of the last such certificate (or in the case of the first such certificate the date hereof) to and including the certification date of such certificate the Issuer has complied with all its obligations contained in these presents or (if such is not the case) specifying the respects in which it has not complied;
|
(f)
|
so far as permitted by applicable law, at all times execute and do all such further documents, acts and things as may be necessary at any time or times in the opinion of the Trustee to give effect to these presents;
|
(g)
|
at all times maintain Paying Agents in accordance with the Conditions;
|
(h)
|
use all reasonable endeavours to procure the Principal Paying Agent to notify the Trustee forthwith in the event that the Principal Paying Agent does not, on or before the due date for any payment in respect of the Notes or any of them or any of the Coupons, receive unconditionally pursuant to the Agency Agreement payment of the full amount in the requisite currency of the moneys payable on such due date on all such Notes or Coupons as the case may be;
|
(i)
|
in the event of the unconditional payment to the Principal Paying Agent or the Trustee of any sum due in respect of the Notes or any of them or any of the Coupons being made after the due date for payment thereof forthwith give or procure to be given notice to the relevant Noteholders in accordance with Condition 12 that such payment has been made;
|
(j)
|
use all reasonable endeavours to maintain the listing of the Notes on the Stock Exchange or, if it is unable to do so having used all reasonable endeavours or if the Trustee considers that the maintenance of such listing is unduly onerous and the Trustee is of the opinion that to do so would not be materially prejudicial to the interests of the Noteholders, use all reasonable endeavours to obtain and maintain a quotation or listing of the Notes on such other stock exchange or exchanges or securities market or markets as the Issuer may (with the prior written approval of the Trustee) decide and shall also upon obtaining a quotation or listing of the Notes on such other stock exchange or exchanges or securities market or markets enter into a trust deed supplemental to this Trust Deed to effect such consequential amendments to these presents as the Trustee may require or as shall be requisite to comply with the requirements of any such stock exchange or securities market;
|
(k)
|
give notice to the Noteholders in accordance with Condition 12 of any appointment, resignation or removal of any Paying Agent (other than the appointment of the initial Paying Agents) after having obtained the prior written approval of the Trustee thereto or any change of any Paying Agent's specified office and (except as provided by the Agency Agreement or the Conditions) at least 30 days prior to such event taking effect;
provided always that
so long as any of the Notes or Coupons remains liable to prescription in the case of the termination of the appointment of the Principal Paying Agent no such termination shall take effect until a new Principal Paying Agent has been appointed on terms previously approved in writing by the Trustee;
|
(l)
|
send or procure to be sent to the Trustee, not less than 7 days prior to which any such notice is to be given, the form of every notice to be given to the Noteholders in accordance with Condition 12 and obtain the prior written approval of the Trustee to, and promptly give to the Trustee two copies of, the final form of every notice to be given to the Noteholders in accordance with Condition 12 (such approval, unless so expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom (the
FSMA
) of a communication within the meaning of Section 21 of the FSMA);
|
(m)
|
comply with and perform all its obligations under the Agency Agreement and use all reasonable endeavours to procure that the Paying Agents comply with and perform all their respective obligations thereunder and (in the case of the Paying Agents) any notice given by the Trustee pursuant to paragraph (a) of Clause 2.3 and not make any amendment or modification to the Agency Agreement without the prior written approval of the Trustee;
|
(n)
|
in order to enable the Trustee to ascertain the principal amount of Notes of each series for the time being outstanding for any of the purposes referred to in the proviso to the definition of
outstanding
in Clause 1, deliver to the Trustee forthwith upon being so requested in writing by the Trustee a certificate in writing signed by two Directors or authorised signatories of the Issuer setting out the total number and aggregate principal amount of Notes of each series which:
|
(i)
|
up to and including the date of such certificate have been purchased by the Issuer or any of its Subsidiaries and cancelled; and
|
(ii)
|
are at the date of such certificate held by, for the benefit of, or on behalf of, the Issuer or any of its Subsidiaries;
|
(o)
|
use all reasonable endeavours to procure that Euroclear and/or Clearstream, Luxembourg (as the case may be) issue(s) any certificate or other document requested by the Trustee under paragraph (t) of Clause 13 as soon as practicable after such request;
|
(p)
|
give notice to the Trustee of the proposed redemption of the Notes not less than the number of days specified in the Conditions prior to the redemption date in respect of such Note or Coupon and duly proceed to redeem such Notes or Coupons accordingly; and
|
(q)
|
it will notify the Trustee in writing within 30 days of any change that affects the Issuer's FATCA status.
|
11.2
|
It is acknowledged that, while any Global Note remains outstanding or, in respect of any Notes held in definitive form in an account of Euroclear or Clearstream, Luxembourg, the Issuer has no legal right or ability to require Euroclear, Clearstream, Luxembourg or the Trustee to notify it of the identity of any Noteholder and in any event, as at the date of this Trust Deed, no individual can be an account holder in Euroclear or Clearstream, Luxembourg.
|
12.
|
REMUNERATION AND INDEMNIFICATION OF TRUSTEE
|
12.1
|
The Issuer shall pay to the Trustee remuneration for its services as trustee as from the date of this Trust Deed, such remuneration to be at such rate and on such dates as may from time to time be agreed in writing between the Issuer and the Trustee. Such remuneration shall accrue from day to day and be payable (in priority to payments to the Noteholders and Couponholders) up to and including the date when, all the Notes having become due for redemption, the redemption moneys and interest thereon to the date of redemption have been paid to the Principal Paying Agent or, as the case may be, the Trustee
provided that
if upon due presentation of any Note or Coupon, payment of the moneys due in respect thereof is improperly withheld or refused, remuneration will commence again to accrue.
|
12.2
|
In the event of the occurrence of an Event of Default or a Potential Event of Default, the Issuer hereby agrees that the Trustee shall be entitled to be paid additional remuneration, which may be calculated at its normal hourly rates in force from time to time. In any other case, if the Trustee considers it expedient or necessary or is requested by the Issuer to undertake duties which the Trustee and the Issuer agree to be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under these presents the Issuer shall pay to the Trustee such additional remuneration as shall be agreed between them (and which may be calculated by reference to the Trustee's normal hourly rates in force from time to time).
|
12.3
|
The Issuer shall in addition pay to the Trustee an amount equal to the amount of any value added tax or similar tax for which the Trustee is liable to account in respect of its remuneration under these presents against presentation of a valid value added tax invoice.
|
12.4
|
If the Trustee, in its ordinary course of business, recovers any value added tax or similar tax charged by HMRC which is attributable (in the sole and absolute discretion of the Trustee) to any expense or cost paid by the Issuer to the Trustee under this Trust Deed, then the Trustee shall reimburse such recovered amount to the Issuer. The Trustee shall have no obligation to recover, calculate, attribute, obtain or seek to recover, calculate, attribute or obtain, any such tax or relief, and shall have the sole and absolute discretion as to whether it shall recover, calculate, attribute, obtain or seek to recover, calculate, attribute or obtain any such tax or relief and the Trustee shall not be responsible or liable for any amount so calculated, recovered, attributed and reimbursed to the Issuer.
|
12.5
|
In the event of the Trustee and the Issuer failing to agree:
|
(a)
|
(in a case to which Clause 12.1 above applies) upon the amount of the remuneration; or
|
(b)
|
(in a case to which Clause 12.2 above applies) upon whether such duties shall be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under these presents, or upon such additional remuneration,
|
12.6
|
Without prejudice to the right of indemnity by law given to trustees , the Issuer shall indemnify the Trustee and every Appointee and keep it or him indemnified against all Liabilities to which it or he may be or become subject or which may be incurred by it or him in the preparation and execution or purported execution of any of its or his trusts, powers, authorities and discretions under these presents or its or his functions under any such appointment or in respect of any other matter or thing done or omitted in any way relating to these presents or any such appointment (including all Liabilities incurred in disputing or defending any of the foregoing).
|
12.7
|
The Issuer shall also pay or discharge all costs, charges and expenses (excluding taxes other than stamp duties, levies, imposts, issue, registration, documentary and other similar taxes or duties) incurred by the Trustee in relation to the preparation and execution of, the exercise of its powers and the performance of its duties under, and in any other manner relating to, these presents, including but not limited to travelling expenses and any stamp, issue, registration, documentary and other similar taxes or duties paid or payable by the Trustee in connection with any action properly taken or contemplated by or on behalf of the Trustee for enforcing these presents.
|
12.8
|
Where any amount which would otherwise be payable by the Issuer under Clause 12.6 or Clause 12.7 has instead been paid by any person or persons other than the Issuer (each, an
Indemnifying Party
), the Issuer shall pay to the Trustee an equal amount for the purpose of enabling the Trustee to reimburse the Indemnifying Parties.
|
12.9
|
All amounts payable pursuant to Clause 12.6 above and/or Clause 12.7 shall be payable by the Issuer on the date specified in a demand by the Trustee and in the case of payments actually made by the Trustee prior to such demand shall carry interest at the rate of three per cent. per annum above the base rate (on the date on which payment was made by the Trustee) of National Westminster Bank Plc from the date specified in such demand, and in all other cases shall (if not paid within 30 days after the date of such demand or, if such demand specifies that payment is to be made on an earlier date, on such earlier date) carry interest at such rate from such 30th day of such other date specified in such demand. All remuneration payable to the Trustee shall carry interest at such rate from the due date therefor.
|
12.10
|
The Issuer hereby further undertakes to the Trustee that all monies payable by the Issuer to the Trustee under this Clause shall be made without set-off, counterclaim, deduction or withholding unless compelled by law in which event the Issuer will pay such additional amounts as will result in the receipt by the Trustee of the amounts which would otherwise have been payable by the Issuer to the Trustee under this Clause in the absence of any such set-off, counterclaim, deduction or withholding.
|
12.11
|
Unless otherwise specifically stated in any discharge of these presents the provisions of this Clause shall continue in full force and effect notwithstanding such discharge.
|
13.
|
SUPPLEMENTS TO TRUSTEE ACTS
|
(a)
|
The Trustee may in relation to these presents act on the advice or opinion of or any information (whether addressed to the Trustee or not) obtained from any lawyer, valuer, accountant, surveyor, banker, broker, auctioneer or other expert whether obtained by the Issuer, the Trustee or otherwise and which advice may be provided on such terms (including as to limitations on liability) as the Trustee may consider in its sole discretion to be consistent with prevailing market practice with respect to advice or opinions of that nature and shall not be responsible for any Liability occasioned by so acting.
|
(b)
|
Any such advice, opinion or information may be sent or obtained by letter or, facsimile transmission and the Trustee shall not be liable for acting on any advice, opinion or information purporting to be conveyed by any such letter or facsimile transmission although the same shall contain some error or shall not be authentic.
|
(c)
|
The Trustee may call for and shall be at liberty to accept as sufficient evidence of any fact or matter or the expediency of any transaction or thing a certificate signed by any two Directors or authorised signatories of the Issuer and the Trustee shall not be bound in any such case to call for further evidence or be responsible for any Liability that may be occasioned by it acting on such certificate.
|
(d)
|
The Trustee shall not be responsible for the receipt or application of the proceeds of the issue of any of the Notes by the Issuer, the exchange of any Global Note for another Global Note or definitive Notes, the delivery of any Global Note or definitive Notes to the person(s) entitled to it or them.
|
(e)
|
The Trustee shall not be bound to give notice to any person of the execution of any documents comprised or referred to in these presents or to take any steps to ascertain whether any Event of Default or any Potential Event of Default has happened and, until it shall have actual knowledge or express notice pursuant to these presents to the contrary, the Trustee shall be entitled to assume that no Event of Default or Potential Event of Default has happened and that the Issuer is observing and performing all its obligations under these presents.
|
(f)
|
Save as expressly otherwise provided in these presents, the Trustee shall have absolute and uncontrolled discretion as to the exercise or non-exercise of its trusts, powers, authorities and discretions under these presents (the exercise or non-exercise of which as between the Trustee and the Noteholders and Couponholders shall be conclusive and binding on the Noteholders and Couponholders) and shall not be responsible for any Liability which may result from their exercise or non-exercise and in particular the Trustee shall not be bound to act at the request or direction of the Noteholders or otherwise under any provision of these presents or to take at such request or direction or otherwise any other action under any provision of these presents, without prejudice to the generality of Clause 7.1, unless it shall first be indemnified and/or secured and/or prefunded to its satisfaction against all Liabilities to which it may render itself liable or which it may incur by so doing.
|
(g)
|
The Trustee shall not be liable to any person by reason of having acted upon any Extraordinary Resolution in writing or any Extraordinary Resolution or other resolution purporting to have been passed at any meeting of holders of Notes of all or any series in respect whereof minutes have been made and signed or any direction or request of holders of Notes of all or any series even though subsequent to its acting it may be found that there was some defect in the constitution of the meeting or the passing of the resolution or (in the case of an Extraordinary Resolution in writing) that not all Noteholders had signed the Extraordinary Resolution or (in the case of a direction or request) it was not signed by the requisite number of Noteholders or that for any reason the resolution, direction or request was not valid or binding upon such Noteholders and the relative Couponholders.
|
(h)
|
The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any Note or Coupon purporting to be such and subsequently found to be forged or not authentic.
|
(i)
|
Any consent or approval given by the Trustee for the purposes of these presents may be given on such terms and subject to such conditions (if any) as the Trustee thinks fit and notwithstanding anything to the contrary in these presents may be given retrospectively. The Trustee may give any consent or approval, exercise any power, authority or discretion or take any similar action (whether or not such consent, approval, power, authority, discretion or action is specifically referred to in these presents) if it is satisfied that the interests of the Noteholders will not be materially prejudiced thereby. For the avoidance of doubt, the Trustee shall not have any duty to the Noteholders in relation to such matters other than that which is contained in the preceding sentence.
|
(j)
|
The Trustee shall not (unless and to the extent ordered so to do by a court of competent jurisdiction) be required to disclose to any Noteholder or Couponholder any information (including, without limitation, information of a confidential, financial or price sensitive nature) made available to the Trustee by the Issuer or any other person in connection with these presents and no Noteholder or Couponholder shall be entitled to take any action to obtain from the Trustee any such information.
|
(k)
|
Where it is necessary or desirable for any purpose in connection with these presents to convert any sum from one currency to another it shall (unless otherwise provided by these presents or required by law) be converted at such rate or rates, in accordance with such method and as at such date for the determination of such rate of exchange, as may be agreed by the Trustee in consultation with the Issuer and any rate, method and date so agreed shall be binding on the Issuer, the Noteholders and the Couponholders.
|
(l)
|
The Trustee may certify that any of the conditions, events and acts set out in subparagraphs (b) to (g) (other than (d) and (e)) of Condition 9.1 (each of which conditions, events and acts shall, unless in any case the Trustee in its absolute discretion shall otherwise determine, for all the purposes of these presents be deemed to include the circumstances resulting therein and the consequences resulting therefrom) is in its opinion materially prejudicial to the interests of the Noteholders and any such certificate shall be conclusive and binding upon the Issuer, the Noteholders and the Couponholders.
|
(m)
|
The Trustee as between itself and the Noteholders and Couponholders may determine all questions and doubts arising in relation to any of the provisions of these presents. Every such determination, whether or not relating in whole or in part to the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee and the Noteholders and Couponholders.
|
(n)
|
In connection with the exercise by it of any of its trusts, powers, authorities and discretions under these presents (including, without limitation, any modification, waiver, authorisation or determination), the Trustee shall have regard to the general interests of the Noteholders as a class and shall not have regard to any interests arising from circumstances particular to individual Noteholders or Couponholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of any such exercise for individual Noteholders or Couponholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Noteholder or Couponholder be entitled to claim, from the Issuer, the Trustee or any other person any indemnification or payment in respect of any tax consequence of any such exercise upon individual Noteholders or Couponholders except to the extent already provided for in Condition 7 and/or any undertaking given in addition thereto or in substitution therefor under these presents.
|
(o)
|
Any trustee of these presents being a lawyer, accountant, broker or other person engaged in any profession or business shall be entitled to charge and be paid all usual professional and other charges for business transacted and acts done by him or his firm in connection with the trusts of these presents and also his properly incurred charges in addition to disbursements for all other work and business done and all time spent by him or his firm in connection with matters arising in connection with these presents.
|
(p)
|
The Trustee may in the execution and exercise of all or any of the trusts, powers, authorities and discretions vested in it by these presents whenever it thinks fit delegate by power of attorney or otherwise to any person or persons or fluctuating body of persons (whether being a joint trustee of these presents or not) all or any of its trusts, powers, authorities and discretions under these presents. Such delegation may be made upon such terms (including power to sub‑delegate) and subject to such conditions and regulations as the Trustee may in the interests of the Noteholders think fit. The Trustee shall not be under any obligation to supervise the proceedings or acts of any such delegate or sub-delegate or be in any way responsible for any Liability incurred by reason of any misconduct or default on the part of any such delegate or sub-delegate provided that the Trustee shall have exercised reasonable care in selecting such person.
|
(q)
|
The Trustee may in the conduct of the trusts of these presents instead of acting personally employ and pay an agent (whether being a lawyer or other professional person) to transact or conduct, or concur in transacting or conducting, any business and to do, or concur in doing, all acts required to be done by the Trustee in connection with these presents (including the receipt and payment of money). The Trustee shall not be in any way responsible for any Liability incurred by reason of any misconduct or default on the part of any such agent or be bound to supervise the proceedings or acts of any such agent provided that the Trustee shall have exercised reasonable care in selecting such person.
|
(r)
|
The Trustee may appoint and pay any person to act as a custodian or nominee on any terms in relation to such assets of the trusts constituted by these presents as the Trustee may determine, including for the purpose of depositing with a custodian these presents or any document relating to the trusts constituted by these presents and the Trustee shall not be responsible for or required to insure against any Liability incurred in connection with such deposit or by reason of the misconduct, omission or default on the part of any person appointed by it hereunder or be bound to supervise the proceedings or acts of such person and may pay all sums required to be paid on account of or in respect of any such deposit; the Trustee is not obliged to appoint a custodian if the Trustee invests in securities payable to bearer provided that the Trustee shall have exercised reasonable care in selecting such person.
|
(s)
|
The Trustee shall not be responsible for the execution, delivery, legality, effectiveness, adequacy, genuineness, validity, performance, enforceability or admissibility in evidence of these presents or any other document relating or expressed to be supplemental thereto and shall not be liable for any failure to obtain any licence, consent or other authority for the execution, delivery, legality, effectiveness, adequacy, genuineness, validity, performance, enforceability or admissibility in evidence of these presents or any other document relating or expressed to be supplemental thereto.
|
(t)
|
The Trustee may call for any certificate or other document issued by Euroclear, Clearstream, Luxembourg or any other relevant clearing system in relation to any matter. Any such certificate or other document shall, in the absence of manifest error, be conclusive and binding for all purposes. Any such certificate or other document may comprise any form of statement or print out of electronic records provided by the relevant clearing system (including Euroclear's EUCLID or Clearstream, Luxembourg's Creation Online system) in accordance with its usual procedures and in which the account holding a particular principal or nominal amount of the Notes is clearly identified together with the amount of such holding. The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by Euroclear or Clearstream, Luxembourg or any other applicable clearing system and subsequently found to be forged or not authentic.
|
(u)
|
The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating to the Notes or for checking or commenting upon the content of any such legal opinion and shall not be responsible for any Liability incurred thereby.
|
(v)
|
No provision of these presents shall require the Trustee to do anything which may be illegal or contrary to applicable law (including but not limited to the laws of the United States of America or any jurisdiction forming part of it and England & Wales) or regulation of any agency of any such state or
|
(w)
|
No provision of these presents shall require the Trustee to do anything which may cause it to expend or risk its own funds or otherwise incur any Liability in the performance of any of its duties or in the exercise of any of its rights, powers or discretions, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or Liability is not assured to it.
|
(x)
|
In the absence of express notice to the contrary, the Trustee shall be entitled to assume without enquiry (other than requesting a certificate pursuant to paragraph (n) of Clause 11 that no Notes are held by, for the benefit of, or on behalf of, the Issuer or any of its Subsidiaries.
|
(y)
|
The Trustee shall not be responsible for, or for investigating any matter which is the subject of, any recital, statement, representation, warranty or covenant of any person contained in these presents, or any other agreement or document relating to the transactions contemplated in these presents or under such other agreement or document.
|
(z)
|
The Trustee shall be under no obligation to monitor or supervise the functions of any other person under the Notes or Coupons or any other agreement or document relating to the transactions herein or therein contemplated and shall be entitled, in the absence of actual knowledge of a breach of obligation, to assume that each such person is properly performing and complying with its obligations.
|
(aa)
|
When determining whether an indemnity or any security or pre-funding is satisfactory to it, the Trustee shall be entitled, acting reasonably, to evaluate its risk in any given circumstance by considering the worst-case scenario and, for this purpose, it may take into account, without limitation, the potential costs of defending or commencing proceedings in England or elsewhere and the risk, however remote, of any award of damages against it in England or elsewhere.
|
(ab)
|
The Trustee shall not incur any Liability to the Issuer, Noteholders or any other person in connection with any approval given by it pursuant to Clause 11(n) to any notice to be given to Noteholders by the Issuer; the Trustee shall not be deemed to have represented, warranted, verified or confirmed that the contents of any such notice are true, accurate or complete in any respects or that it may be lawfully issued or received in any jurisdiction.
|
(ac)
|
The Trustee shall not be responsible for monitoring whether any notices to Noteholders are given in compliance with the requirements of the Stock Exchange or with any other legal or regulatory requirements.
|
(ad)
|
Subject to the below, and notwithstanding anything else herein contained, the Trustee shall not be obliged to take any action which would, or might in its reasonable opinion, be contrary to any economic or financial sanctions law of any state or jurisdiction (including but not limited to the United States of America or any jurisdiction forming part of it, and England and Wales) or any economic or sanctions directive or regulation of any agency of any such state (a “
Relevant Restriction
”), in each case only if and to the extent that (i) the Trustee considers in its reasonable opinion that it is subject to such Relevant Restriction, and (ii) the Relevant Restriction prohibits the performance of the obligations of the Trustee under this Agreement, and the Trustee may take such actions as, in its reasonable opinion, are necessary to comply with any Relevant Restriction.
|
(A)
|
to the extent that it is prohibited by a Relevant Restriction from performing its obligations under this Trust Deed, such obligations shall be suspended only and nothing in this Clause 13(dd) shall release or discharge the Trustee from any Liability or duty it owes to the Issuer in respect of amounts paid by the Issuer to the Trustee to be applied by the Trustee on the Issuer’s behalf in discharge of the Issuer’s obligations under this Trust Deed (and, for the avoidance of doubt, the Trustee shall
|
(B)
|
to the extent not otherwise prohibited by any Relevant Restriction, the Trustee shall, promptly upon becoming aware of any Relevant Restriction which, in its reasonable opinion, might affect the performance of its obligations under this Trust Deed, consult in good faith with the Issuer to take all reasonable steps necessary to mitigate the effect of such Relevant Restriction, including (but not limited to) making such amendments to these this Trust Deed as may be necessary or desirable to procure compliance with the Relevant Restriction and/or appointing a replacement Trustee (as the case may be) pursuant to Clause 19; and
|
(C)
|
if and to the extent that, in the reasonable opinion of the Trustee, an action which would otherwise be required to be taken by it under this Trust Deed would be contrary to a Relevant Restriction, to the extent not otherwise prohibited by any Relevant Restriction, the Trustee and the Issuer shall use reasonable endeavours to work together to give effect to the terms of, and the intent of the parties to this Trust Deed under, this Trust Deed in a manner that would not be contrary to the Relevant Restriction.
|
14.
|
TRUSTEE'S LIABILITY
|
14.1
|
Nothing in these presents shall in any case in which the Trustee has failed to show the degree of care and diligence required of it as trustee having regard to the provisions of these presents conferring on it any trusts, powers, authorities or discretions exempt the Trustee from or indemnify it against any Liability for its own gross negligence, wilful misconduct, fraud or breach of trust which it may be guilty in relation to its duties under these presents.
|
14.2
|
Notwithstanding any provision of these presents to the contrary, the Trustee shall not in any event be liable for:
|
(a)
|
loss of profit, loss of business, loss of goodwill, loss of opportunity, whether direct or indirect: and
|
(b)
|
special, indirect, punitive or consequential loss or damage of any kind whatsoever,
|
15.
|
TRUSTEE CONTRACTING WITH THE ISSUER
|
(a)
|
entering into or being interested in any contract or financial or other transaction or arrangement with the Issuer or any person or body corporate associated with the Issuer (including without limitation
|
(b)
|
accepting or holding the trusteeship of any other trust deed constituting or securing any other securities issued by or relating to the Issuer or any such person or body corporate so associated or any other office of profit under the Issuer or any such person or body corporate so associated,
|
16.
|
WAIVER, AUTHORISATION AND DETERMINATION
|
17.
|
MODIFICATION
|
18.
|
BREACH
|
19.
|
SUBSTITUTION
|
19.1
|
(a) The Trustee may without the consent of the Noteholders or Couponholders at any time agree with the Issuer to the substitution in place of the Issuer (or of any previous substitute under this Clause) as the principal debtor under these presents of any Subsidiary of the Issuer (such substituted company being hereinafter called the
New Company
) provided that a trust deed is executed or some other form of undertaking is given by the New Company in form and manner satisfactory to the Trustee, agreeing to be bound by the provisions of these presents with any consequential amendments which the Trustee may deem appropriate as fully as if the New Company had been named in these presents as the principal debtor in place of the Issuer (or of any previous substitute under this Clause) and provided further that the Issuer unconditionally and irrevocably guarantees all amounts payable under these presents to the satisfaction of the Trustee.
|
(b)
|
The following further conditions shall apply to (a) above:
|
(i)
|
the Issuer and the New Company shall comply with such other requirements as the Trustee may direct in order that the substitution is fully effective in the interests of the Noteholders;
|
(ii)
|
if two Directors of the New Company (or other officers or authorised signatories acceptable to the Trustee) shall certify that the New Company is solvent both at the time at which the relevant transaction is proposed to be effected and immediately thereafter (which certificate the Trustee may rely upon absolutely) the Trustee shall not be under any duty to have regard to the financial condition, profits or prospects of the New Company or to compare the same with those of the Issuer or any previous substitute under this Clause as applicable.
|
19.2
|
Any such trust deed or undertaking shall, if so expressed, operate to release the Issuer or the previous substitute as aforesaid from all of its obligations as principal debtor under these presents. Not later than 14 days after the execution of such documents and compliance with such requirements as aforesaid, the New Company shall give notice thereof in a form previously approved by the Trustee (such approval not to be unreasonably withheld or delayed) to the Noteholders in the manner provided in Condition 12. Upon the execution of such documents and compliance with such requirements, the New Company shall be deemed to be named in these presents as the principal debtor in place of the Issuer (or in place of any previous substitute under this clause) under these presents and these presents shall be deemed to be modified in such manner as shall be necessary to give effect to the above provisions and, without limitation, references in these presents to the Issuer shall, unless the context otherwise requires, be deemed to be or include references to the New Company.
|
20.
|
HOLDER OR DEFINITIVE NOTE ASSUMED TO BE COUPONHOLDER
|
20.1
|
The Issuer, the Trustee and any Paying Agent may deem and treat the holder of any Note and any Coupon appertaining to the relevant Note as the absolute owner of such Note or such Coupon as the case may be (whether or not such Note or such Coupon shall be overdue and notwithstanding any notation of ownership or other writing thereon or any notice of previous loss or theft of such Note or Coupon) for all purposes and, except as ordered by a court of competent jurisdiction or as required by applicable law, the Issuer, the Trustee and the Paying Agents shall not be affected by any notice to the contrary and no person shall be liable for so treating the holder. All payments made to any such holder shall be valid and, to the extent of the sums so paid, effective to satisfy and discharge the liability for the moneys payable upon the Notes and Coupons.
|
21.
|
NO NOTICE TO COUPUNHOLDERS
|
21.1
|
Neither the Trustee nor the Issuer shall be required to give any notice to the Couponholders for any purpose under these presents and the Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the Noteholders in accordance with Condition 12.
|
22.
|
CURRENCY INDEMINITY
|
(a)
|
any Liability incurred by any of them arising from the non-payment by the Issuer of any amount due to the Trustee or the Noteholders or Couponholders under these presents by reason of any variation in the rates of exchange between those used for the purposes of calculating the amount due under a judgment or order in respect thereof and those prevailing at the date of actual payment by the Issuer; and
|
(b)
|
any deficiency arising or resulting from any variation in rates of exchange between (i) the date as of which the local currency equivalent of the amounts due or contingently due under these presents (other than this Clause) is calculated for the purposes of any bankruptcy, insolvency or liquidation of the Issuer and (ii) the final date for ascertaining the amount of claims in such bankruptcy, insolvency or liquidation. The amount of such deficiency shall be deemed not to be reduced by any variation in rates of exchange occurring between the said final date and the date of any distribution of assets in connection with any such bankruptcy, insolvency or liquidation.
|
23.
|
NEW TRUSTEE
|
24.
|
SEPARATE AND CO-TRUSTEES
|
(a)
|
if the Trustee considers such appointment to be in the interests of the Noteholders;
|
(b)
|
for the purposes of conforming to any legal requirements, restrictions or conditions in any jurisdiction in which any particular act or acts is or are to be performed; or
|
(c)
|
for the purposes of obtaining a judgment in any jurisdiction or the enforcement in any jurisdiction of either a judgment already obtained or any of the provisions of these presents against the Issuer.
|
25.
|
TRUSTEE'S RETIREMENT AND REMOVAL
|
26.
|
TRUSTEE'S POWERS TO BE ADDITIONAL
|
27.
|
NOTICES
|
27.1
|
Any notice or demand to the Issuer or the Trustee to be given, made or served for any purposes under these presents shall be given, made or served by sending the same by pre-paid post (first class if inland, first class airmail if overseas) or facsimile transmission or by delivering it by hand as follows:
|
27.2
|
Neither the Trustee nor the Issuer shall be required to give any notice to the Couponholders for any purpose under this Trust Deed and the Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the Noteholders in accordance with Condition 12.
|
28.
|
GOVERNING LAW AND SUBMISSION TO JURISDICTION
|
28.1
|
This Trust Deed and the Notes and all non-contractual obligations arising from or connected with them are governed by, and shall be construed in accordance with, English law.
|
28.2
|
The courts of England have exclusive jurisdiction to settle any dispute (a
Dispute
), arising from or connected with this Trust Deed or the Notes (including a dispute relating to non‑contractual obligations arising from or in connection with this Trust Deed or the Notes, or a dispute regarding the existence, validity or termination of this Trust Deed or the Notes) or the consequences of their nullity.
|
28.3
|
The parties agree that the courts of England are the most appropriate and convenient courts to settle any Dispute and, accordingly, that they will not argue to the contrary.
|
28.4
|
Clause 28.2 is for the benefit of the Trustee and the Noteholders only. As a result, nothing in this Clause 28 prevents the Trustee or any of the Noteholders from taking proceedings relating to a Dispute (
Proceedings
) in any other courts with jurisdiction. To the extent allowed by law, the Trustee or any of the Noteholders may take concurrent Proceedings in any number of jurisdictions.
|
28.5
|
The Issuer agrees that the documents which start any Proceedings and any other documents required to be served in relation to those Proceedings may be served on it by being delivered to Ferrari N.V. UK Branch at its registered office for the time being in England. If such person is not or ceases to be effectively appointed to accept service of process on behalf of the Issuer, the Issuer shall, on the written demand of the Trustee, appoint a further person in England to accept service of process on its behalf and, failing such appointment within 15 days, the Trustee shall be entitled to appoint such a person by written notice addressed to the Issuer. The Issuer hereby authorises the Trustee to make such appointments on behalf of the Issuer if the Issuer has failed to appoint a new service of process agent within 15 days as set out above. Nothing in this paragraph shall affect the right of the Trustee or any of the Noteholders to serve process in any other manner permitted by law. This clause applies to Proceedings in England and to Proceedings elsewhere.
|
28.6
|
The Issuer consents generally in respect of any Proceedings to the giving of any relief or the issue of any process in connection with such Proceedings including (without limitation) the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which is made or given in such Proceedings.
|
28.7
|
To the extent that the Issuer may in any jurisdiction claim for itself or its assets or revenues immunity from suit, execution, attachment (whether in aid of execution, before judgment or otherwise) or other legal process and to the extent that such immunity (whether or not claimed) may be attributed in any such jurisdiction to the Issuer or its assets or revenues, the Issuer agrees not to claim and irrevocably waives such immunity to the full extent permitted by the laws of such jurisdiction.
|
29.
|
COUNTERPARTS
|
30.
|
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
|
31.
|
SEVERABILITY
|
Part 1
|
|
1.
|
Promise to pay
|
2.
|
Negotiability
|
3.
|
Exchange for Permanent Global Note and purchases
|
4.
|
Payments
|
5.
|
Accountholders
|
6.
|
Notices
|
7.
|
Prescription
|
8.
|
Euroclear and Clearstream, Luxembourg
|
9.
|
Authentication
|
10.
|
Governing law
|
11.
|
Contracts (Rights of Third Parties) Act 1999
|
Date made
|
Interest paid
|
Principal paid
|
Remaining principal amount of this Temporary Global Note following such payment
|
Notation made on behalf of the Issuer
|
|
€
|
€
|
€
|
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
__________
|
___________
|
__________
|
____________
|
____________
|
Date made
|
Part of principal amount of this Temporary Global Note exchanged for a like part of the Permanent Global Note
|
Part of principal amount of this Temporary Global Note purchased and cancelled
|
Aggregate principal amount of this Temporary Global Note following such exchange or purchase and cancellation
|
Notation made on behalf of the Issuer
|
|
€
|
€
|
€
|
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
__________
|
___________
|
____________
|
____________
|
____________
|
Part 1
|
|
1.
|
Promise to pay
|
2.
|
Negotiability
|
3.
|
Exchange for definitive Notes and purchases
|
4.
|
Payments
|
5.
|
Accountholders
|
6.
|
Notices
|
7.
|
Prescription
|
8.
|
Euroclear and Clearstream, Luxembourg
|
9.
|
Authentication
|
10.
|
Governing law
|
11.
|
Contracts (Rights of Third Parties) Act 1999
|
Date Made
|
Interest paid
|
Principal paid
|
Remaining principal amount of this Permanent Global Note following such payment
|
Notation made on behalf of the Issuer
|
|
€
|
€
|
€
|
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
___________
|
___________
|
__________
|
_____________
|
____________
|
Date made
|
Part of principal amount of the Temporary Global Note exchanged for a like part of this Permanent Global Note
|
Part of principal amount of this Permanent Global Note purchased and cancelled
|
Aggregate principal amount of this Permanent Global Note following such exchange or purchase and cancellation
|
Notation made on behalf of the Issuer
|
|
€
|
€
|
€
|
|
____________
|
_______________
|
_______________
|
_____________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
____________
|
_______________
|
_______________
|
______________
|
____________
|
Part 1
|
|
Part 1
|
|
|
The €500,000,000 1.500 per cent. Notes due 16 March 2023 (the
Notes
) of Ferrari N.V. (the
Issuer
) are constituted by a trust deed to be dated 16 March 2016 (as amended or supplemented from time to time, the
Trust Deed
) made between the Issuer and Citicorp Trustee Company Limited as trustee (the
Trustee
, which expression shall include its successor(s)) as trustee for the holders of the Notes (the
Noteholders
) and the holders of the interest coupons appertaining to the Notes (the
Couponholders
and the
Coupons
respectively)) and are the subject of an agency agreement to be dated 16 March 2016 (as amended or supplemented from time to time, the
Agency Agreement
) made between the Issuer, Citibank N.A. as principal paying agent (the
Principal Paying Agent
and, together with any other agents appointed in accordance with such agreement, the
Paying Agents
, which expression shall include any successor(s)) and the Trustee.
|
1.
|
FORM, DENOMINATION AND TITLE
|
2.
|
STATUS
|
3.
|
Negative Pledge
|
(a)
|
at the same time or prior thereto ensuring that the Issuer’s obligations under the Notes are secured equally and rateably therewith to the satisfaction of the Trustee; or
|
(b)
|
providing such other guarantee or other arrangement (whether or not comprising security) as the Trustee may in its absolute discretion consider to be not materially less beneficial to the interests of the Noteholders or as may be approved by an Extraordinary Resolution.
|
(a)
|
Control or controlled
means the ownership of more than 50 per cent. of the voting share capital of an entity or the power to appoint a majority of the board of directors or other most senior governing board of that entity whether through the ownership of voting capital, by contract or otherwise;
|
(b)
|
Ferrari Italy
means Ferrari S.p.A. or any entity controlled by the Issuer (a
Ferrari Successor Entity
) which, as a result of any merger, consolidation, amalgamation, reorganisation, transfer of all or substantially all of the business, assets or undertaking of Ferrari S.p.A. (or, as the case may be, a Ferrari Successor Entity) (whether by operation of law or by universal succession or by way of sale, contribution, lease, conveyance, demerger or otherwise), reconstruction or restructuring on a solvent basis, beneficially owns (whether after one step or after more than one step) all or substantially all of the business, assets and undertaking owned by Ferrari S.p.A. immediately prior thereto; and
|
(c)
|
Relevant Indebtedness
means any indebtedness which is in the form of or represented by any bond, note, debenture, debenture stock, loan stock, certificate or other debt security which with the consent of the Issuer is, or is intended to be, listed, quoted or traded on any stock exchange or on any other recognised securities market (including, without limitation, any over-the-counter securities market).
|
4.
|
Interest
|
5.
|
Payments
|
(a)
|
is or falls after the relevant due date;
|
(b)
|
is a Business Day in the place of the specified office of the Paying Agent at which the Note or Coupon is presented for payment; and
|
(c)
|
in the case of payment by credit or transfer to a euro account as referred to above, is a TARGET2 Settlement Day.
|
(a)
|
there will at all times be a Principal Paying Agent;
|
(b)
|
so long as the Notes are listed on any stock exchange or admitted to listing by any other relevant authority, there will at all times be at least one Paying Agent (which may be the Principal Paying Agent) having a specified office in the place required by the rules and regulations of the relevant stock exchange or any other relevant authority; and
|
(c)
|
there will at all times be a Paying Agent in a jurisdiction within Europe, other than (i) the jurisdiction in which the Issuer is incorporated, and (ii) the Republic of Italy.
|
6.
|
REDEMPTION AND PURCHASE
|
(a)
|
as a result of any change in, or amendment to, the laws or regulations of a Relevant Jurisdiction (as defined in Condition 7 (
Taxation
)), or any change in the application or official interpretation of the laws or regulations of a Relevant Jurisdiction, which change or amendment becomes effective after 14 March 2016, on the next Interest Payment Date the Issuer would be required to pay additional amounts as provided or referred to in Condition 7 (
Taxation
); and
|
(b)
|
the requirement cannot be avoided by the Issuer taking reasonable measures available to it,
|
7.
|
Taxation
|
(a)
|
the holder of which is liable for Taxes in respect of such Note or Coupon by reason of having some connection with the Relevant Jurisdiction other than a mere holding of the Notes; or
|
(b)
|
presented for payment in any Relevant Jurisdiction; or
|
(c)
|
presented for payment more than 30 days after the Relevant Date (as defined below) except to the extent that a holder would have been entitled to additional amounts on presenting the same for payment on the last day of the period of 30 days assuming that day to have been a Presentation Date (as defined in Condition 5 (
Payments
)); or
|
(d)
|
presented for payment by, or on behalf of, a holder who is entitled to avoid such withholding or deduction in respect of such Note or Coupon by making a declaration or any other statement to the
|
(e)
|
in the event of payment to a non-Italian resident legal entity or a non-Italian resident individual, to the extent that interest or other amounts is paid to a non-Italian resident legal entity or a non-Italian resident individual which is resident in a country which does not allow for a satisfactory exchange of information with the Italian authorities; or
|
(f)
|
in relation to any payment or deduction of any interest, premium or other proceeds of any Note or Coupon on account of
imposta sostitutiva
pursuant to Italian Legislative Decree No. 239 of 1st April 1996, as amended from time to time; or
|
(g)
|
where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive.
|
(a)
|
Relevant Date
means the date on which the payment first becomes due but, if the full amount of the money payable has not been received by the Principal Paying Agent or the Trustee on or before the due date, it means the date on which, the full amount of the money having been so received, notice to that effect has been duly given to the Noteholders by the Issuer in accordance with Condition 12 (
Notices
); and
|
(b)
|
Relevant Jurisdiction
means The Netherlands or the Republic of Italy or any political subdivision or any authority thereof or therein having power to tax or any other jurisdiction or any political subdivision or any authority thereof or therein having power to tax to which the Issuer becomes subject in respect of payments made by it of principal and interest on the Notes and Coupons.
|
8.
|
Prescription
|
9.
|
EVENTS OF DEFAULT
|
(a)
|
Non-payment:
the Issuer fails to pay any amount of principal or interest due in respect of the Notes and that failure to pay continues for more than 14 days after the due date for payment; or
|
(a)
|
Breach of other obligations:
the Issuer defaults in the performance or observance of any one or more other obligations under or in respect of the Notes or the Trust Deed required to be performed or observed by the Issuer and such default is either:
|
(i)
|
in the opinion of the Trustee, incapable of remedy, in which case no notice referred to in (ii) below will be required; or
|
(ii)
|
in the opinion of the Trustee, capable of remedy and the default remains unremedied for 30 days (or such longer period as the Trustee may agree) after the Trustee has given written notice to the Issuer specifying the default and requiring that default to be remedied; or
|
(b)
|
Cross-acceleration:
(i) the repayment of any indebtedness for borrowed money owing by the Issuer or Ferrari Italy is accelerated by reason of default (however expressed) and such acceleration has not been rescinded, waived, cancelled or annulled, or (ii) the Issuer or Ferrari Italy is in default (after the expiry of any originally applicable grace period for such payment) in any payment when due of indebtedness for borrowed money, or (iii) any Security Interest given by the Issuer or Ferrari Italy for any indebtedness for borrowed money is enforced (and such enforcement has not been rescinded, waived, cancelled or annulled), or (iv) default is made by the Issuer or Ferrari Italy in making any payment due under any guarantee and/or indemnity given by it in relation to any indebtedness for borrowed money (after the expiry of any originally applicable grace period for such payment); provided that no such event shall constitute an Event of Default unless the aggregate outstanding amount of such accelerated or unpaid indebtedness for borrowed money (or guarantee or indemnity in relation to indebtedness for borrowed money), whether alone or when aggregated with all other such outstanding accelerated or unpaid indebtedness for borrowed money (or guarantee or indemnity in relation to indebtedness for borrowed money), exceeds €75 million and provided that no such event shall constitute an Event of Default so long as and to the extent that the Issuer or Ferrari Italy, as the case may be, is contesting in good faith and by appropriate means that such payment is not due and/or such default has not occurred, as appropriate; or
|
(c)
|
Winding-up:
any final order is made by any competent court or other authority, or a resolution is passed by the Issuer or Ferrari Italy, for the liquidation, dissolution or winding-up of the Issuer or Ferrari Italy, or for the appointment of a liquidator, receiver or trustee of the Issuer or Ferrari Italy or of, in either case, all or substantially all of its assets otherwise than (i) for the purposes of a Permitted Reorganisation; or (ii) on terms previously approved by the Trustee or by an Extraordinary Resolution; or
|
(d)
|
Insolvency:
the Issuer or Ferrari Italy is finally adjudicated or found insolvent, or suspends payment of, or is unable to, or admits its inability to pay, its debts generally as they fall due; or
|
(e)
|
Ceasing to Carry On Business:
the Issuer or Ferrari Italy ceases or threatens to cease to carry on all or substantially all of its business either in a single transaction or in a series of transactions (whether or not related) or makes a general assignment or an arrangement or composition with or for the benefit of its creditors generally otherwise than (i) for the purposes of a Permitted Reorganisation; or (ii) on terms previously approved by the Trustee or by an Extraordinary Resolution; or
|
(f)
|
Analogous Event
: if any event occurs which, under the laws of any Relevant Jurisdiction (as defined in Condition 7 (
Taxation
)), has or may have, in the Trustee's opinion, an analogous effect to any of the events referred to in subparagraphs (d) to (f) above.
|
10.
|
ENFORCEMENT
|
11.
|
REPLACEMENT OF NOTES AND COUPONS
|
12.
|
NOTICES
|
13.
|
MEETINGS OF NOTEHOLDERS, MODIFICATION, WAIVER, AUTHORISATION AND DETERMINATION, SUBSTITUTION
|
14.
|
INDEMNIFICATION and protection OF THE TRUSTEE AND ITS CONTRACTING WITH THE ISSUER
|
15.
|
FURTHER ISSUES
|
16.
|
GOVERNING LAW AND SUBMISSION TO JURISDICTION
|
(a)
|
Subject to Condition 16.2(c) below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with the Trust Deed, the Notes or the Coupons), including any dispute as to their existence, validity, interpretation, performance, breach or termination or the consequences of their nullity and any dispute relating to any non-contractual obligations arising out of or in connection with the Trust Deed, the Notes or the Coupons (a
Dispute
) and each of the Issuer, the Trustee and any Noteholders or Couponholders in relation to any Dispute submits to the exclusive jurisdiction of the English courts.
|
(b)
|
For the purposes of this Condition 16, the Issuer waives any objection to the English courts on the grounds that they are an inconvenient or inappropriate forum to settle any Dispute.
|
(c)
|
To the extent allowed by law, the Trustee, the Noteholders and the Couponholders may, in respect of any Dispute or Disputes, take (i) proceedings in any other court with jurisdiction and (ii) concurrent proceedings in any number of jurisdictions.
|
17.
|
RIGHTS OF THIRD PARTIES
|
1.
|
(a) As used in this Schedule the following expressions shall have the following meanings unless the context otherwise requires:
|
(i)
|
voting certificate
shall mean an English language certificate issued by a Paying Agent and dated in which it is stated:
|
(A)
|
that on the date thereof Notes (whether in definitive form or represented by a Global Note and not being Notes in respect of which a block voting instruction has been issued and is outstanding in respect of the meeting specified in such voting certificate or any adjourned such meeting) were deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control or blocked in an account with Euroclear, Clearstream, Luxembourg or any other relevant clearing system and that no such Notes will cease to be so deposited, held or blocked until the first to occur of:
|
I.
|
the conclusion of the meeting specified in such certificate or, if applicable, of any adjourned such meeting; and
|
II.
|
the surrender of the certificate to the Paying Agent who issued the same; and
|
(B)
|
that the bearer thereof is entitled to attend and vote at such meeting and any adjourned such meeting in respect of the Notes represented by such certificate;
|
(ii)
|
block voting instruction
shall mean an English language document issued by a Paying Agent and dated in which:
|
(A)
|
it is certified that Notes (whether in definitive form or represented by a Global Note and not being Notes in respect of which a voting certificate has been issued and is outstanding in respect of the meeting specified in such block voting instruction and any adjourned such meeting) have been deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control or blocked in an account with Euroclear, Clearstream, Luxembourg or any other relevant clearing system and that no such Notes will cease to be so deposited, held or blocked until the first to occur of:
|
I.
|
the conclusion of the meeting specified in such document or, if applicable, of any adjourned such meeting; and
|
II.
|
the surrender to the Paying Agent not less than 48 hours before the time for which such meeting or any adjourned such meeting is convened of the receipt issued by such Paying Agent in respect of each such deposited or blocked Note which is to be released or (as the case may require) the Note or Notes ceasing with the agreement of the Paying Agent to be held to its order or under its control and the giving of notice by the Paying Agent to the Issuer in accordance with paragraph 17 hereof of the necessary amendment to the block voting instruction;
|
(B)
|
it is certified that each holder of such Notes has instructed such Paying Agent that the vote(s) attributable to the Note or Notes so deposited, held or blocked should be cast in a particular way in relation to the resolution or resolutions to be put to such meeting or any adjourned such meeting and that all such instructions are during the period commencing 48 hours prior to the time for which such meeting or any adjourned such
|
(C)
|
the aggregate principal amount of the Notes so deposited, held or blocked are listed distinguishing with regard to each such resolution between those in respect of which instructions have been given as aforesaid that the votes attributable thereto should be cast in favour of the resolution and those in respect of which instructions have been so given that the votes attributable thereto should be cast against the resolution; and
|
(D)
|
one or more persons named in such document (each hereinafter called a
proxy
) is or are authorised and instructed by such Paying Agent to cast the votes attributable to the Notes so listed in accordance with the instructions referred to in (B) above as set out in such document;
|
(iii)
|
24 hours
shall mean a period of 24 hours including all or part of a day upon which banks are open for business in both the place where the relevant meeting is to be held and in each of the places where the Paying Agents have their specified offices (disregarding for this purpose the day upon which such meeting is to be held) and such period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included as aforesaid all or part of a day upon which banks are open for business in all of the places as aforesaid; and
|
(iv)
|
48 hours
means two consecutive periods of 24 hours.
|
(a)
|
A holder of a Note (whether in definitive form or represented by a Global Note) may obtain a voting certificate in respect of such Note from a Paying Agent or require a Paying Agent to issue a block voting instruction in respect of such Note by depositing such Note with such Paying Agent or (to the satisfaction of such Paying Agent) by such Note being held to its order or under its control or blocked in an account with Euroclear, Clearstream, Luxembourg or any other relevant clearing system, in each case not less than 48 hours before the time fixed for the relevant meeting and on the terms set out in subparagraph (a)(i)(A) or (a)(ii)(A) above (as the case may be), and (in the case of a block voting instruction) instructing such Paying Agent to the effect set out in subparagraph (a)(ii)(C) above. The holder of any voting certificate or the proxies named in any block voting instruction shall for all purposes in connection with the relevant meeting or adjourned meeting of Noteholders be deemed to be the holder of the Notes to which such voting certificate or block voting instruction relates.
|
2.
|
The Issuer or the Trustee may at any time and the Issuer shall upon a requisition in writing signed by the holders of not less than one-tenth in aggregate principal amount of the Notes for the time being outstanding convene a meeting of the Noteholders and if the Issuer makes default for a period of seven days in convening such a meeting the same may be convened by the Trustee or the requisitionists. Every such meeting shall be held at such time and place as the Trustee may appoint or approve in writing.
|
3.
|
At least 21 days' notice (exclusive of the day on which the notice is given and the day on which the meeting is to be held) specifying the place, day and hour of meeting shall be given to the Noteholders prior to any meeting of the Noteholders in the manner provided by Condition 12. Such notice, which shall be in the English language, shall state generally the nature of the business to be transacted at the meeting thereby convened but (except for an Extraordinary Resolution) it shall not be necessary to specify in such notice the terms of any resolution to be proposed. Such notice shall state that Notes may, not less than 48 hours before the time fixed for the meeting, be deposited with Paying Agents or (to their satisfaction) held to their order or under their control for the purpose of obtaining voting certificates or appointing proxies. A copy of the notice shall be sent to the Trustee (unless the meeting is convened by the Trustee) and to the Issuer (unless the meeting is convened by the Issuer).
|
4.
|
A person (who may, but need not be, a Noteholder) nominated in writing by the Trustee shall be entitled to take the chair at the relevant meeting or adjourned meeting but if no such nomination is made or if at any meeting or adjourned meeting the person nominated shall not be present within 15 minutes after the time
|
5.
|
At any such meeting one or more persons present holding Notes in definitive form or voting certificates or being proxies and holding or representing in the aggregate not less than one-twentieth of the aggregate principal amount of the Notes for the time being outstanding shall (except for the purpose of passing an Extraordinary Resolution) form a quorum for the transaction of business and no business (other than the choosing of a Chairman) shall be transacted at any meeting unless the requisite quorum be present at the commencement of the relevant business. The quorum at any such meeting for passing an Extraordinary Resolution shall (subject as provided below) be one or more persons present holding Notes in definitive form or voting certificates or being proxies Notes and holding or representing in the aggregate more than 50 per cent. in aggregate principal amount of the Notes for the time being outstanding
provided that
at any meeting the business of which includes a Basic Terms Modification (each of which shall, subject only to Clause 17.1, only be capable of being effected after having been approved by Extraordinary Resolution) the quorum for passing the requisite Extraordinary Resolution shall be one or more persons present holding Notes in definitive form or voting certificates or being proxies and holding or representing in the aggregate not less than two-thirds of the aggregate principal amount of the Notes for the time being outstanding.
|
6.
|
If within 15 minutes (or such longer period not exceeding 30 minutes as the Chairman may decide) after the time appointed for any such meeting a quorum is not present for the transaction of any particular business, then, subject and without prejudice to the transaction of the business (if any) for which a quorum is present, the meeting shall if convened upon the requisition of Noteholders be dissolved. In any other case it shall stand adjourned to the same day in the next week (or if such day is a public holiday the next succeeding business day) at the same time and place (except in the case of a meeting at which an Extraordinary Resolution is to be proposed in which case it shall stand adjourned for such period, being not less than 13 clear days nor more than 42 clear days, and to such place as may be appointed by the Chairman either at or subsequent to such meeting and approved by the Trustee). If within 15 minutes (or such longer period not exceeding 30 minutes as the Chairman may decide) after the time appointed for any such adjourned meeting a quorum is not present for the transaction of any particular business, then, subject and without prejudice to the transaction of the business (if any) for which a quorum is present, the Chairman may either (with the approval of the Trustee) dissolve such meeting or adjourn the same for such period, being not less than 13 clear days (but without any maximum number of clear days), and to such place as may be appointed by the Chairman either at or subsequent to such adjourned meeting and approved by the Trustee, and the provisions of this sentence shall apply to all further adjourned such meetings. At any such adjourned meeting one or more persons present holding Notes in definitive form or voting certificates or being proxies (whatever the aggregate principal amount of the Notes so held or represented by them) shall (subject as provided below) form a quorum and shall (subject as provided below) have power to pass any Extraordinary Resolution or other resolution and to decide upon all matters which could properly have been dealt with at the meeting from which the adjournment took place had the requisite quorum been present
provided that
at any such adjourned meeting the quorum for the transaction of business comprising any of the matters specified in the proviso to paragraph 5 above shall be one or more persons present holding Notes in definitive form or voting certificates or being proxies and holding or representing in the aggregate not less than one-third of the aggregate principal amount of the Notes for the time being outstanding.
|
7.
|
Notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted shall be given in the same manner as notice of an original meeting but as if 10 were substituted for 21 in paragraph 3 above and such notice shall state the relevant quorum requirements that apply to the adjourned meeting. Subject as aforesaid it shall not be necessary to give any notice of an adjourned meeting.
|
8.
|
Every question submitted to a meeting shall be decided in the first instance by a show of hands and in case of equality of votes the Chairman shall both on a show of hands and on a poll have a casting vote in addition to the vote or votes (if any) to which he may be entitled as a Noteholder or as a holder of a voting certificate or as a proxy.
|
9.
|
At any meeting unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman, the Issuer, the Trustee or any person present holding a Note in definitive form or a voting certificate or being a proxy (whatever the aggregate principal amount of the Notes so held or represented by him) a declaration by the Chairman that a resolution has been carried or carried by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution.
|
10.
|
Subject to paragraph 12 below, if at any such meeting a poll is so demanded it shall be taken in such manner and subject as hereinafter provided either at once or after an adjournment as the Chairman directs and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded as at the date of the taking of the poll. The demand for a poll shall not prevent the continuance of the meeting for the transaction of any business other than the motion on which the poll has been demanded.
|
11.
|
The Chairman may with the consent of (and shall if directed by) any such meeting adjourn the same from time to time and from place to place but no business shall be transacted at any adjourned meeting except business which might lawfully (but for lack of required quorum) have been transacted at the meeting from which the adjournment took place.
|
12.
|
Any poll demanded at any such meeting on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment.
|
13.
|
The Trustee and its lawyers and any director, officer or employee of a corporation being a trustee of these presents and any director or officer of the Issuer and its lawyers and any other person authorised so to do by the Trustee may attend and speak at any meeting. Save as aforesaid, but without prejudice to the proviso to the definition of
outstanding
in Clause 1, no person shall be entitled to attend and speak nor shall any person be entitled to vote at any meeting of the Noteholders or join with others in requesting the convening of such a meeting or to exercise the rights conferred on the Noteholders by Conditions 9.1 and 10.1 unless he either produces the Note or Notes in definitive form of which he is the holder or a voting certificate or is a proxy. No person shall be entitled to vote at any meeting in respect of Notes which are deemed to be not outstanding by virtue of the proviso to the definition of "outstanding" in clause 1.. Nothing herein shall prevent any of the proxies named in any block voting instruction or form of proxy from being a director, officer or representative of or otherwise connected with the Issuer.
|
14.
|
Subject as provided in paragraph 13 hereof at any meeting:
|
(a)
|
on a show of hands every person who is present in person and produces a Note in definitive form or voting certificate or is a proxy shall have one vote; and
|
(b)
|
on a poll every person who is so present shall have one vote in respect of each €1,000 in aggregate principal amount of the outstanding Notes so produced in definitive form or represented by the voting certificate so produced or in respect of which he is a proxy or in respect of which (being in definitive form) he is the holder.
|
15.
|
The proxies named in any block voting instruction need not be Noteholders.
|
16.
|
Each block voting instruction together (if so requested by the Trustee) with proof satisfactory to the Trustee of its due execution on behalf of the relevant Paying Agent shall be deposited by the relevant Paying Agent at such place as the Trustee shall approve not less than 24 hours before the time appointed for holding the meeting or adjourned meeting at which the proxies named in the block voting instruction propose to vote and in default the block voting instruction shall not be treated as valid unless the Chairman of the meeting decides otherwise before such meeting or adjourned meeting proceeds to business. A copy of each block voting instruction shall be deposited with the Trustee before the commencement of the meeting or adjourned meeting
|
17.
|
Any vote given in accordance with the terms of a block voting instruction shall be valid notwithstanding the previous revocation or amendment of the block voting instruction or of any of the Noteholders' instructions pursuant to which it was executed
provided that
no intimation in writing of such revocation or amendment shall have been received from the relevant Paying Agent by the Issuer at its registered office (or such other place as may have been required or approved by the Trustee for the purpose) by the time being 24 hours and 48 hours respectively before the time appointed for holding the meeting or adjourned meeting at which the block voting instruction is to be used.
|
18.
|
A meeting of the Noteholders shall in addition to the powers hereinbefore given have the following powers exercisable only by Extraordinary Resolution (subject to the provisions relating to quorum contained in paragraphs 5 and 6 above) namely:
|
(a)
|
Power to sanction any compromise or arrangement proposed to be made between the Issuer, the Trustee, any Appointee and the Noteholders and Couponholders or any of them.
|
(b)
|
Power to sanction any abrogation, modification, compromise or arrangement in respect of the rights of the Trustee, any Appointee, the Noteholders, the Couponholders or the Issuer against any other or others of them or against any of their property whether such rights shall arise under these presents or otherwise.
|
(c)
|
Power to assent to any modification of the provisions of these presents which shall be proposed by the Issuer, the Trustee or any Noteholder.
|
(d)
|
Power to give any authority or sanction which under the provisions of these presents is required to be given by Extraordinary Resolution.
|
(e)
|
Power to appoint any persons (whether Noteholders or not) as a committee or committees to represent the interests of the Noteholders and to confer upon such committee or committees any powers or discretions which the Noteholders could themselves exercise by Extraordinary Resolution.
|
(f)
|
Power to approve of a person to be appointed a trustee and power to remove any trustee or trustees for the time being of these presents.
|
(g)
|
Power to discharge or exonerate the Trustee and/or any Appointee from all Liability in respect of any act or omission for which the Trustee and/or such Appointee may have become or may become responsible under these presents.
|
(h)
|
Power to authorise the Trustee and/or any Appointee to concur in and execute and do all such deeds, instruments, acts and things as may be necessary to carry out and give effect to any Extraordinary Resolution.
|
(i)
|
Power to sanction any scheme or proposal for the exchange or sale of the Notes for or the conversion of the Notes into or the cancellation of the Notes in consideration of shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities of the Issuer or any other company formed or to be formed, or for or into or in consideration of cash, or partly for or into or in consideration of such shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities as aforesaid and partly for or into or in consideration of cash.
|
(j)
|
Power to approve the substitution of any entity for the Issuer (or any previous substitute) as principal debtor under these presents.
|
19.
|
Any Extraordinary Resolution (i) passed at a meeting of the holders duly convened and held in accordance with these presents, (ii) passed as an Extraordinary Resolution in writing in accordance with these presents or
|
20.
|
The expression
Extraordinary Resolution
when used in these presents means (i) a resolution passed at a meeting duly convened and held in accordance with the Trust Deed by a majority consisting of not less than two-thirds of the votes cast on such resolution, (ii) a resolution in writing signed by or on behalf of the holders of not less than two-thirds in principal amount of the Notes for the time being outstanding or (iii) consent given by way of electronic consents through Euroclear, Clearstream, Luxembourg or any other relevant clearing system (in a form satisfactory to the Trustee) by or on behalf of the holders of not less than two-thirds in principal amount of the Notes for the time being outstanding.
|
21.
|
Minutes of all resolutions and proceedings at every meeting of the Noteholders shall be made and entered in books to be from time to time provided for that purpose by the Issuer and any such Minutes as aforesaid if purporting to be signed by the Chairman of the meeting at which such resolutions were passed or proceedings transacted shall be conclusive evidence of the matters therein contained and until the contrary is proved every such meeting in respect of the proceedings of which Minutes have been made shall be deemed to have been duly held and convened and all resolutions passed or proceedings transacted thereat to have been duly passed or transacted.
|
22.
|
Subject to all other provisions of these presents the Trustee may without the consent of the Issuer, the Noteholders or the Couponholders prescribe such other or further regulations regarding the requisitioning and/or the holding of meetings of Noteholders and attendance and voting thereat as the Trustee may in its sole discretion think fit.
|
(a)
|
as at the date herewith, no Event of Default or Potential Event of Default existed [other than [ ]]
1
and no Event of Default, Potential Event of Default had existed or happened at any time since [ ]
2
[the certification date (as defined in the Trust Deed) of the last certificate delivered under Clause 11(e)]
3
[other than [ ]]
4
.; and
|
(b)
|
from and including [ ]
3
[the certification date of the last certificate delivered under Clause 11(g)]
4
to and including [ ]
1
, the Issuer has complied in all respects with its obligations under these presents (as defined in the Trust Deed) [other than [ ]]
5
|
(1)
|
If any Event of Default or Potential Event of Default did exist, give details; otherwise delete.
|
(2)
|
Insert date of Trust Deed in respect of the first certificate delivered under Clause 11(e)), otherwise delete.
|
(3)
|
Include unless the certificate is the first certificate delivered under Clause 11(e),
in which case delete.
|
(4)
|
If any Event of Default or Potential Event of Default did exist or had happened, give details; otherwise delete.
|
(5)
|
If the Issuer has failed to comply with any obligation(s), give details; otherwise delete.
|
|
|
||
|
70
|
|
|
|
||
0018246-0000848 ICM:23539221.9
|
1
|
|
EXECUTED
as a
DEED
|
)
|
|
by
FERRARI N.V.
acting by
|
)
|
|
and acting under the authority of that company
|
)
|
|
in the presence of:
|
)
|
|
|
|
|
|
|
|
Witness' Name:
|
|
|
Address:
|
|
|
|
|
|
|
|
|
EXECUTED
as a
DEED
by
|
)
|
|
CITICORP TRUSTEE company
|
)
|
|
LIMITED
|
)
|
|
acting by:
|
)
|
|
|
|
Director
|
|
|
Director/Secretary
|
Name
|
|
Country
|
|
Nature of business
|
|
Shares held by the Group
|
|
Shares held by NCI
|
||
Directly held interests
|
|
|
|
|
|
|
|
|
||
Ferrari S.p.A.
|
|
Italy
|
|
Manufacturing
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
||
Indirectly held through Ferrari S.p.A.
|
|
|
|
|
|
|
|
|
||
Ferrari North America Inc.
|
|
USA
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Japan KK
|
|
Japan
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Australasia Pty Limited
|
|
Australia
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari International Cars Trading (Shanghai) Co. L.t.d.
|
|
China
|
|
Importer and distributor
|
|
80
|
%
|
|
20
|
%
|
Ferrari (HK) Limited
|
|
Hong Kong
|
|
Importer and distributor
|
|
100
|
%
|
|
—
|
%
|
Ferrari Far East Pte Limited
|
|
Singapore
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari Management Consulting (Shanghai) Co. L.t.d.
|
|
China
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari South West Europe S.a.r.l.
|
|
France
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari Central East Europe GmbH
|
|
Germany
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
G.S.A. S.A.
|
|
Switzerland
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Ferrari North Europe L.t.d.
|
|
UK
|
|
Service company
|
|
100
|
%
|
|
—
|
%
|
Mugello Circuit S.p.A.
|
|
Italy
|
|
Racetrack management
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services S.p.A.
|
|
Italy
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
||
Indirectly held through other Group entities
|
|
|
|
|
|
|
|
|
||
Ferrari Financial Services Inc.
(1)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction - Lease, LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Financial Services Titling Trust
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
Ferrari Auto Securitization Transaction - Select, LLC
(2)
|
|
USA
|
|
Financial services
|
|
100
|
%
|
|
—
|
%
|
410, Park Display Inc.
(3)
|
|
USA
|
|
Retail
|
|
100
|
%
|
|
—
|
%
|
(1)
|
Shareholding held by Ferrari Financial Services S.p.A.
|
(2)
|
Shareholding held by Ferrari Financial Services Inc.
|
(3)
|
Shareholding held by Ferrari North America Inc.
|
1.
|
I have reviewed this annual report on Form 20-F of the Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
Date: March 3, 2017
|
by:
|
/s/ Sergio Marchionne
|
|
|
Sergio Marchionne
Chief Executive Officer and Director
|
1.
|
I have reviewed this annual report on Form 20-F of the Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
Date: March 3, 2017
|
By:
|
/s/ Alessandro Gili
|
|
|
Alessandro Gili
Chief Financial Officer
|
1.
|
the Company’s Annual Report on Form 20-F for the year ended December 31, 2016, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: March 3, 2017
|
by:
|
/s/ Sergio Marchionne
|
|
|
Sergio Marchionne
Chief Executive Officer and Director
|
1.
|
the Company’s Annual Report on Form 20-F for the year ended December 31, 2016, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company
.
|
Date: March 3, 2017
|
By:
|
/s/ Alessandro Gili
|
|
|
Alessandro Gili
Chief Financial Officer
|