Ferrari Real Estate Company

Year 2 Annual Report

FERRARI

COMPANY
Always Driven

Year TWO

Ferrari Real Estate Company

Year 2 Annual Report

The Company continuously move in synergy to be able to serve our customers

needs. Through the diverse offerings of the Ferrari Company, we remain deeply
committed to enhancing peoples overall quality of life.
.

38.13%
Total Asset Growth

28 %
Capital Investment Growth

Three

Buildings built in Year 2

Ferrari Real Estate Company

Year 2 Annual Report

Table of Contents
CEO letter

Presidents Report

Financial Highlights

Financial Statements

Statement of Financial Performance

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to Financial Statements

Certification of Financial Statements

16

Contact Information

17

Ferrari Real Estate Company

Year 2 Annual Report

Letter from the CEO

only one building. Nevertheless, lack of inflows
from these developments can be traced from the
period the construction was finished. Since the
company has completed the structures in the
later months of the second year, revenues are
optimistically expected to flow in the third year.
What makes us alive in the world of real
estate is not luck but our strategy. It is our intent
and commitment to develop a project,
investment, asset-specific or portfolio responsive,
performance-oriented
plan
by
choosing
cautiously the right properties to be developed.
We believe that the real goals and
The Ferrari Company continues to be a aspirations of our clients, regardless of size,
vibrant, viable, satisfying workplace, an complexity or compensation, are purely and
organization truly committed to delivering the simply our sole responsibility. In every decision
highest quality professional services to its clients and recommendation we make, and in every
and customers, a business respected within the action we take, the best interests of the client
community for its productivity, performance and must be paramount. It is on behalf of the clients
innovation a business driven by results, whose and the real property challenges and the assets
standards of practice are ethically and morally that the clients have entrusted to us that we focus
rooted.
our every effort, our professional energy. We will
practice our profession and carry out our duties in
Strength through Optimism
a manner to meet or exceed every professional
Like many real estate companies, we at the
standard of practice.
Ferrari Company were prudently optimistic about
prospects in Year Two. Thankfully, this positive Renewed Confidence towards Progress
outlook was reflected in the performance of the
With a great cash balance on hand,
company.
robust development in the third year is
Basking in a more favorable business forecasted. Ferrari Company had decided to build
environment, we were placed in a prime position up a strong foundation through focusing in the
to seize new opportunities for growth. We expansion of a single real estate monopoly
focused on acquiring lands through trading from before diversifying. The orange monopoly is our
Hat Spring Company and extend our reach to priority for the upcoming years to increase our
better serve existing and prospective clients.
revenues and to consistently expand our market
We strengthened our efforts through share.
transforming our properties to high quality
We at Ferrari, remain undeterred in
developments by erecting three buildings in New fulfilling our vision to be the best Real Estate
York, Tennessee and St. James Place. This Company for all our shareholders. Buoyed by
increases returns enabling us to expand market sustained business confidence, we aim to
breath and depth and maintain the necessary enhance and develop our properties further. We
profitability to support the efforts of further are committed to transform every property to high
development.
quality developments that create superior value
In the second year, we achieved our to our customers and for our shareholders. Every
objective of remaining a dominant force in our Ferrari Land project carries with it, the reputation
industry, of continually reforming Ferrari of having the highest standards of quality in
Company into one of the dominant Real Estate service. That is, the Ferrari Land Brand.
firms, consistently expanding our market share;
our market breadth and depth; increasing
diversity in our client base; increasing our
revenues; re-investing in the personal growth of
our personnel,
Acquiring New York, Tennessee and St.
James Place enabled us to remain a dominant Ty M. Bollinger
force in the industry. Revenues had a multiple CEO
increase from M14 to M70 from just developing

A sharp contrast to the year it

emerged, the second year provided an ideal
environment for economic growth. While it
witnessed a road to real estate development
with trading-off properties posting lackluster
growth and emerging markets registering
robust progress, the year was nevertheless
welcomed with much optimism by companies
and individuals around the world.

Ferrari Real Estate Company

Year 2 Annual Report

Presidents Report
We continuously drive ourselves to create
the right solutions for our customers, and to
uphold the trust of our shareholders. Our
unwavering focus on our financial statements has
been a transformative and key component of our
performance as an institution.

M 2,875.80
stronger in total
assets, increasing by
M 793.80 from the
previous year.

Net Income
In hundreds

3.9

5.2

Year 2

Year 1

rental revenues and the trade and

investment
opportunities
with
other
companies.
Ferrari Company maintained its focus
on the development of properties. We
decided to dispose of undeveloped
properties, on the back of the upbeat
sentiment in the property sector. Thus, we
traded with Hat Spring Company to acquire
Tennessee Avenue in exchange of cash and
Atlantic Avenue.
We recognize that as the real estate
industry becomes more competitive, we
need to differentiate ourselves and devise a
strategy to develop our properties fast at the
lowest cost, yet with enough return to
remain profitable.
To execute our development-centric
strategy, we need to construct more
buildings, acquire lands suitable for
development and triple the return from these
properties. Choosing the best, developing
the most able, and retaining the most
committed are the tenets that shape the
company geared towards development.
Moving forward, we expect a more
challenging environment. But we also
welcome the next chapter in our history with
optimism. Our economy is rebuilding; if
investors risk appetite continues to improve,
then emerging markets will likely be the
recipients of large investments. The
companies thrust of promoting investments
through infrastructure development is
expected to usher a renewed demand for
credit and more opportunities for trading and
investments. We are looking forward to
participating in this invigorated business
environment. With our strong balance sheet,
the Ferrari Company is well poised to
capitalize on these growth opportunities.
On behalf of our management and
shareholders, I thank our people for staying
committed to our institutional goals. To our
customers, rest assured we will stay true to
our promise of being your real estate
partner. The road to success may not
always be paved and easy, but with your
unfailing support, we will always be driven to
do our very best.

The economy in the second year has

been erratic due to investment spending and
development of properties by all companies.
The Ferrari Company has improved all its
effort to maintain the stability and resiliency
of the real estate system.
Against this backdrop, Ferraris net
income decreased by 25.77% to M 388.80,
from M 523.80 in year one. This resulted in
the Return on Average Equity of 16%.
We ended the year with M 2,875.80
billion in resources, 38.13% higher than the
same period last year. This was on the back
of an investment of 400 to other companies
and buildings with a total cost of M 282.
Riding the positive growth of the economy,
our lands rose 15.22% to 1060 from 920 of
the previous year. We strengthened our
capital through a 420 investment from other
companies, though coupled with a
decreased earnings growth this year, total
equity reached M 2,832.60 by year-end, a
40% increase in equity.
Total revenues grew 3.56% to M 756.00
from M 730 in the previous year.
Nevertheless, the weakness in net interest
income was caused by an increase in rental
expenses, miscellaneous expenses and
depreciation expense. The total expense
had an erratic increase of 119% to 324.00
from 148.00 of the previous year. This
erratic experience has shaken the company,
pulling down the companys net income for
the second year.
Net cash outflow was M 28.20 leading
to a 2.43% decrease in ending cash
balance, from M 1162 to M 1133.80. Net
cash flows provided by operating activities
decreased by 32.68%; for investing
activities, net cash outflows decreased by
8.69%; and cash flow from financing
activities totalled M 420.
.
We opened the orange group lands the
first monopoly built with three buildings
\
(houses), geared towards servicing the
preferential requirements of our companies, Angelie De Ramos
as well as take advantage of the increase in President

Ferrari Real Estate Company

Year 2 Annual Report

Financial Highlights
Financial Position
3500
3000
2500
2000

Assets
Liabilities

1500

Shareholders' Equity

1000
500
0
Year 1

Year 2

Financial Performance
800
700
600
500
Revenue
400

Expenses
Net Income

300
200
100
0
Year 1

Year 2

Ferrari Real Estate Company

Year 2 Annual Report

For the Game Year-Ended Month 13, Year 2

Total Revenue
Rent Revenue
Salary Revenue
Miscellaneous Revenue
Total Income
Total Expense:
Rent Expense
Miscellaneous Expense
Depreciation Expense
Total Expense
Income before Tax
Less: Income Tax Expense
Net Income

M
M

Year 2
26.00
600.00
130.00
756.00

156.00
150.00
18.00
324.00
432.00
43.20
388.80

Year 1
100.00
600.00
30.00
M
730.00
M

M
M

148.00
0
0
148.00
582.00
58.20
523.80

Ferrari Real Estate Company

Year 2 Annual Report

As of Game Year-Ended Month 13, Year 2

Assets
Cash on Hand
Property and Buildings
Investment in Equity Securities
Total Assets
Liabilities and Shareholders Equity
Liabilities
Trade and other Payables
Total Liabilities
Equity
Contributed Capital
Retained Earnings
Total Shareholders Equity
Total Liabilities and Shareholders Equity

Note
M
2
3
M

Year 2
1,133.80
1,342.00
400.00
2,875.80

43.20
43.20
1,920.00
912.60
2,832.60
2,875.80

Year 1
1,162.00
920.00
0
M 2,082.00
M

58.20
58.20
1,500.00
523.80
2,023.80
2,082.00

Ferrari Real Estate Company

Year 2 Annual Report

For the Game Year-Ended Month 13, Year 2

Note
Contributed capital, start of turn 1
Additional Contributed Capital
Contributed capital, turn 13

M
5

Retained Earnings, turn 1

Net Income
Retained Earnings, turn 13
Balances, turn 13

Year 2
1,500.00
420.00
1,920.00

Year 1
M 1,500.00
0
1,500.00

523.80
388.80
912.60

523.80
0
523.80

2,832.60

2,023.80

Ferrari Real Estate Company

Year 2 Annual Report

For the Game Year-Ended Month 13, Year 2

Cash flow from Operating Activities
Received from Passing Go
Received from Rentals
Received from Miscellaneous
Paid for Rentals
Paid for Miscellaneous
Payment for Income Tax
Net Cash flows provided by Operating Activities
Cash flow from Investing Activities
Payment for the Acquisition of Land
Sale of Property
Payment for Investing
Payment for Building Houses
Net Cash flows provided by Investing Activities
Cash flow from Financing Activities
Received from Investment
Net Cash flows provided by Financing Activities
Net Change in Cash for the Year
Beginning Cash
Ending Cash

Year 2
600.00
26.00
130.00
(156.00)
(150.00)
(58.20)
391.80

(220.00)
80.00
(400.00)
(300.00)
(840.00)

M
M

420.00
420.00
(28.20)
1,162.00
1,133.80

Year 1
600.00
100.00
30.00
(148.00)
0
0
M
582.00
M

M
M
M

(920.00)
0
0
0
(920.00)
0
0
(338.00)
1,500.00
1,162.00

Ferrari Real Estate Company

Year 2 Annual Report

Reporting Entity. Ferrari Company is engaged in real estate operations as a developer of raw
land, residential subdivision and mixed-use urban projects including condominium and
commercial buildings, industrial and farm estates.
Ferrari Company is a professionally-managed portfolio of diversified real estate holdings and
is basically meant for high net worth investors. But, not-so-rich investors can also get a slice
of the real estate pie by investing in our funds, which give them an opportunity to participate
in specific asset classes such as residential, commercial, hospitality etc. in a more
concentrated manner.
The nature of Ferrari Company is used in three fundamental ways. First, is to view it as a
tangible asset, real estate constitutes the physical components of location and space., real
estate is defined as the land and any built improvements permanently affixed on, or to, the
land.
Next, to denote the bundle of rights associated with the ownership and use of the physical
characteristics of space and location constitutes the services that Ferrari provides to our
users. The value of a bundle of rights is a function of the propertys physical, locational, and
legal characteristics. The physical characteristics include the age, size, design, and
construction quality of the structure, as well as the size, shape, and other natural features of
the land. For residential property, the locational characteristics include convenience and
access to places of employment, schools, shopping, health care facilities, and other places
important to households. The location characteristics of commercial properties may involve
visibility, access to customers, suppliers, and employees, or the availability of reliable data
and communications infrastructure. The physical and location characteristics required to
provide valuable real estate services vary significantly by property type.
And finally, to refer our company to the industry, or business activities, related to the
acquisition, operation, and disposition of the physical assets. Real estate creates jobs for
many applicants, and is the source of high percentage of local government revenues.
Our market activity is influenced by the activities and conditions that take place in three
sectors of a market economy: the user market, the financial or capital market, and lastly, the
government sector. Our company users compete in the market for location and space.
Among the users are both renters and owners. The financial resources to acquire our assets
are allocated in the capital market; hence, the equity (ownership) and debt investors are
8

Ferrari Real Estate Company

Year 2 Annual Report

capital market participants. Government influences the activities of each of the participant
groups through regulations, provisions of services and infrastructure, taxes, and various
subsidies.
Two primary characteristics of our company distinguish us from others: heterogeneity and
immobility. Because of these two factors, the market for evaluating, producing, buying,
selling, leasing, and managing real estate tends to be localized, highly segmented, and
involves privately negotiated transactions.
Statement of Compliance. The accompanying financial statements have been prepared in
conformity with accounting principles generally accepted in the Philippines.

Estimates and assumptions. Preparing financial statements requires management to make

assumptions and estimates that affect the reported amounts of assets, liabilities, revenues
and expenses.
The preparation of financial statements in conformity with IFRS requires management to
make judgments, estimates, and assumptions that affect the application of policies and
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities,
and the reported amounts of income and expense. The estimates and underlying
assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis of making the
judgments about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from those estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods. Judgments made by management in the
application of IFRS that have significant effect on the financial statements and estimates
with a significant risk of material adjustment in the next year are discussed in note 32 of the
Consolidated Financial Statements.
Measurement Basis. The accompanying financial statements are presented and prepared in
Monopoly dollars under the historical cost convention.
Fiscal year. Ferrari Company operates on a thirteen month fiscal year.

Accounting principles. The financial statements and accompanying notes to the financial
statements for Ferrari Company are prepared in accordance with generally accepted
accounting principles.
Revenue Recognition. Rental revenue is recognized over the duration of the lease term,
inclusive of the rent-free periods. Revenue is recognised to the extent that it is probable that
9

Ferrari Real Estate Company

Year 2 Annual Report

the economic benefits will flow to the entity and the revenue can be reliably measured. Rent
and Salary revenue is recognized when earned while rent and miscellaneous expenses are
recognized when incurred.
When a company lands on the property, rent revenue is recognized and must be paid
accordingly. Also, salary revenue is also recognized as earned each time the company passes
Go and the miscellaneous revenue is earned with regards to the scenario given in the
chance and community chest cards. This is in accordance with the income recognition
principle and the accrual basis of accounting.
Expense Recognition. With regards to expenses, accrual basis governs the recognition of
expenses when it is incurred. Each time a company lands on competitors properties, rent
expense is recognized and must be paid accordingly. Miscellaneous expenses are also
recognized immediately as expenses when incurred. Chance and community chest cards
either give revenue or expenses to be earned and incurred respectively by the company. Cost
includes expenditure that is directly attributable to the acquisition of the property and
buildings.
Rental Revenue. Rental revenue is recorded when earned. Rental revenue varies from
property to property. Properties which are nearer to Go have sizeable returns compared to
the properties past Go like the brown color group which gives small revenue but easy and
inexpensive to develop. Rental Revenue of a property increases as more houses and
buildings are being built on it. Nevertheless, the cost of developing a property also varies
from low-cost to high-cost.
Salary Revenue. Salary Revenue is recognized each time the company passes Go. One way
in which the company earned salary revenue is through the chance or community chest
cards when the manager has chosen a card which enables the company to advance to Go
and collect M 100. Thus, Go is regarded as the point of recognition of Salary revenue. This
is still in accordance with the accrual method of accounting since salary revenue is earned
regardless of receipt of cash.
79% of the companys revenue comes from the Salary. Due to chance cards, the company
advances to Go and collects its salary revenue. Thus, the company have much and
consequently, avoided paying from other players properties as a benefit of advancing to
Go.
Miscellaneous Revenue. Miscellaneous revenue is recorded when earned. Miscellaneous
revenue results from chance or community chest cards. This can be receipt of dividend,
collection of interest and other income which most of the time has small or average value.
This results from peripheral operations of a business.
Rent Expenses. Rental expense is recorded when incurred. Rental expense varies from
property to property. Properties which are nearer to Go have sizeable rental payments like
the Blue and Green property which gives the most expensive rental payments. Rental
expenses incurred composed only of color group properties. No payment for railroads and
utilities has been incurred during the year.
Miscellaneous Expenses. Miscellaneous expense is recorded when incurred. Miscellaneous
expense results from chance or community chest cards. This can be a mandatory payment to
10

Ferrari Real Estate Company

Year 2 Annual Report

a competitor, hospital fees, speeding fees, tuition fees and the like. This results from
peripheral operations of the business.

Property and Buildings. Property and buildings are carried at cost less accumulated
depreciation and any impairment losses in value. Initially, an item of property and equipment
is measured at its cost, directly attributable costs of bringing the asset to working condition.
With regards to depreciable properties, the useful lives and depreciation method are
reviewed periodically to ensure that such useful lives and depreciation method are
consistent with the expected pattern of economic benefits from those assets. When an asset
is disposed of, the cost and accumulated depreciation and impairment losses, if any, are
removed from the accounts and any resulting gain or loss arising from the retirement or
disposal is credited to or charged against current operations.
Depreciation is charged to the statement of income on a straight-line basis over the
estimated useful life of each part of an item of property, plant, and equipment. Land is not
depreciated. The estimated useful life for buildings is 50 months.
Financial assets. Financial assets include investments, loans and receivables, and derivative
financial instruments. Financial assets are recorded initially at fair value. Subsequent
measurement depends on the designation of the financial assets.
Investments. All equity investments that are not subsidiaries or equity-accounted investees
(joint ventures and/or associates) are classified as investments. Investment available-forsale is valued at their fair value. When the fair value cannot be reliably determined, the
investment is carried at cost. A gain or loss arising from a change in the fair value of the
investment available-for-sale shall be recognized directly in equity, except for impairment
losses and foreign exchange gains and losses, until the financial asset is derecognized, at
which time the cumulative gain or loss previously recognized in equity shall be recognized in
profit or loss. If the investments are valued at cost, income from investments is based on the
dividend received from the investments.
Cash and Cash Equivalents. Cash and cash equivalents are carried in the balance sheets at
cost. For the purpose of the cash flow statements, cash and cash equivalents consist of cash
on hand and in banks, and other short term highly liquid investments with original maturities
of three months or less from date of acquisition and that are subject to an insignificant risk
of change in value.
The company has a sizeable cash balance because the company didnt buy much properties.
Still, the properties acquired during the year are enough for the business to earn a return
from its properties purchased. Moreover, the company usually receives more cash from
salary and rental revenue. Rental and miscellaneous expenses also result to an outflow.
However, these rental payments are still low since the properties are still underdeveloped.
Cash flows from operating activities, with a net amount of M 391.80 include cash receipts
from revenue and payments to expenses. Investing activities which comprise of payments
for purchases of properties are the major outflows that decrease the cash balance,
11

Ferrari Real Estate Company

Year 2 Annual Report

amounting to M 840 and cash inflows from investing activities amounted to M 420. With a
beginning cash balance of M 1,162, net change in cash flows, amounting to a decrease in
28.20 results to an ending cash balance of M 1,133.80.
Trade and other Payables. Trade and other payables are current liabilities or short term
obligations which are not discounted but measured, recorded and reported at their face
amount. Included in Trade and other payables are bank overdraft, income taxes, accounts
payable and the like.
Taxation. Income tax on the profit or loss for the year is composed of current and deferred
income tax. Income tax is recognized in the statements of income except to the extent that it
relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax is the expected tax payable or tax receivable on the taxable income for the year,
using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date, and any adjustment to tax payable or tax receivable in respect of
previous years.
A deferred tax asset is recognized for deductible temporary differences and for the carry
forward of unused tax losses and unused tax credits to the extent that it is probable that
future taxable profits will be available against which these can be utilized. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.
Shareholders equity. When share capital recognized as equity is repurchased (treasury
shares), the amount of the consideration paid, including directly attributable costs, is
recognized as a change in equity. Dividends are recognized as a liability upon being declared.
Capital. This is the invested or paid-in capital. Capital is composed of the initial investments,
amounting to M 1500 of the owners and an additional investment of M 420 from different
companies. Total contributed capital amounted to M 1920.
Retained Earnings. Part of the shareholders equity, retained earnings represents the
cumulative balance of periodic earnings, dividend distributions, fundamental errors and
other capital adjustments. The retained earnings for year two comprise solely of net income
from year one, amounting to M 523.80 and from year two, M 388.80. Total retained earnings
amounted to 912.60. No dividends were declared for this year.
Provisions and Contingencies. The Company, in the ordinary course of business, sets up
appropriate provisions for its present legal or constructive obligations in accordance with its
policies on provisions and contingencies.
Provisions are recognized when the Company has a present legal or constructive obligation
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the
passage of time is recognized as an interest expense.
12

Ferrari Real Estate Company

Year 2 Annual Report

Contingent liabilities are not recognized in the financial statements but are disclosed in the
notes to financial statements unless the possibility of an outflow of resources embodying
economic benefits is remote. Contingent assets are not recognized in the financial
statements but are disclosed in the notes to financial statements when an inflow of
economic benefits is probable.

Cash flows from operating activities. Cash flows from operating activities are calculated by
the direct method. Cash payments to rental and miscellaneous expenses are all recognized
as cash flow from operating activities. Cash flows from operating activities also include
income taxes paid on all activities.
Cash flows from investing activities. Cash flows from investing activities are those arising
from net capital expenditure, from the acquisition and sale of properties. Net acquisition
spending excludes acquisition related costs which are included in cash flows from operating
activities. Net capital expenditure is the balance of purchases of property, plant, and
equipment less book value of disposals.
Cash flows from financing activities. The cash flows from financing activities comprise the
cash receipts from additional investment from other companies.

13

Property and Buildings

Land
Buildings Houses
Total Property and Buildings, gross
Less: Accumulated Depreciation
Total Property and Buildings, net

M 1060
300
M 1360
18
M 1342

Land
St. James Place
New York Avenue
Tennessee Avenue
Baltic Avenue
Kentucky Avenue
Indiana Avenue
TOTAL

Cost
M 180
200
180
60
220
220
M 1060

Buildings Houses
St. James Place
New York Avenue
Tennessee Avenue
TOTAL

Cost
M 100
100
100
M 300

Ferrari Real Estate Company

Year 2 Annual Report

Company
IronMan Company
CAR-ra Chuchi Company
SHOEper Company
Royal Ship Company
Fast and Furious Company
Missouri Battleship Corporation
Company C
Hachiko Company
Mad Hatter Lands & Homes Corp
FURry Friends Enterprise
Car Company
Rhenishoes Company
Titanic Company
Nike Company
HAT-Spring Company
TOTAL

Total Income

Cost
M 25
25
20
30
30
30
20
20
20
25
35
20
30
40
30
M 400

Total Expense
Income before Tax

324.00
M

Less: Income Tax Expense (10% of 432)

Net Income

756.00
432.00
43.20

388.80

Income tax on the profit for the year comprises current tax only. Current income tax is the
expected tax payable on the taxable income for the year using tax rates enacted or
substantially enacted as of the balance sheet date, and any adjustment to tax payable in
respect to previous years.
The amount of tax owed is computed by taking the amount of pre-tax income times the tax
rate, according to the given tax rate of 10% for pre-tax income ranging from M0 to M1000.
14

Ferrari Real Estate Company

Year 2 Annual Report

No dividends were declared for this year. Shareholding structure on the closing date of the
share registration book as of Year two:
Company
CAR-ra Chuchi Company
SHOEper Company
Royal Ship Company
Fast and Furious Company
Missouri Battleship Corporation
Company C
Hachiko Company
Mad Hatter Lands & Homes Corp
FURry Friends Enterprise
Car Company
Rhenishoes Company
Titanic Company
Nike Company
HAT-Spring Company
TOTAL

Cost
M 20
25
25
20
30
20
20
30
20
30
40
40

55
35
M 420

The Ferrari Company received a Get-Out-of-Jail-Free card on turn 1/9. This card entitles the
company to get out of jail without paying the fine, a M50 value. There is a reasonable
probability that the company will receive this benefit in the future, but it depends upon (1)
going to jail (a common risk of doing business, unfortunately) and (2) whether using the card
to get out of jail is in the company's best interest.

15

Ferrari Real Estate Company

Year 2 Annual Report

Certification of Financial Statements
I, Ty M. Bollinger, certify that:
1. I have reviewed this annual report on Form 10-K of Ferrari Company;
2. Based on my knowledge, this annual 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 annual report;
3. Based on my knowledge, the financial statements, and other financial information included
in this annual report, fairly present in all material respects the financial condition, results of
operations and cash flows of Ferrari Company as of, and for, the periods presented in this
annual report;
4. I am responsible for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) and have:
a) Designed such disclosure controls and procedures to ensure that material information
relating to Ferrari, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this annual report is being
prepared;
b) Evaluated the effectiveness of Ferrari's disclosure controls and procedures as of a date
within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and
c) Presented in this annual report our conclusions about the effectiveness of the disclosure
controls and procedures based on our evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to Ferrari's auditors and audit
committee of Ferrari's Board of Directors (or persons performing equivalent functions):
a) All significant deficiencies in the design or operation of internal controls which could
adversely affect Ferrari's ability to record, process, summarize and report financial data and
have identified for Ferrari's auditors any material weaknesses in internal controls; and
b) Any fraud, whether or not material, that involves management or other employees who
have a significant role in Ferrari's internal controls; and
6. I have indicated in this annual report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls subsequent to the
date of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

Ty. M Bollinger
Chief Executive Officer
Ferrari Company
Date: September 10, 2012
/s/ Ty. M Bollinger

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