Ferrari has adopted the Whistleblowing Procedure, in line with the Directive (EU) 2019/1937 of the European Parliament and of the Council, where protection of whistle-blowers is enclosed.

Ferrari has adopted the Ethics Helpline, a channel which allows all stakeholders (employees, customers, suppliers, and partners) and any third parties to request advice and/or report concerns about alleged situations, events, or actions which may be inconsistent with the values set out in the Code of Conduct, Organizational Models, laws and regulations, as well as business practices and corporate rules. The allegations are assessed by the relevant departments of Ferrari and managed in accordance with the Whistleblowing Procedure, prepared on the basis of international best practices as well as applicable laws and regulations.

In 2024, a series of training activities, both online and in person, have been carried out involving employees. Moreover, in 2024, Ferrari continued to implement a training and verification project in different departments aimed at raising awareness on the specific topic of information confidentiality safeguards. Furthermore, specific Business Ethics and Compliance (“BEC”) surveys are conducted by the Internal Audit and Compliance functions as part of audit activities carried out according to the yearly audit plan, to assess the Ferrari Group's worldwide workforce awareness of the Code of Conduct and other ethics-related procedures. In 2024, BEC surveys were conducted on topics such as: Code of Conduct, Whistleblowing procedure, Gifts and Entertainment Expenses’ Management procedure, Group Regulatory Framework and Information Confidentiality. Based on the related outcomes dedicated and targeted training sessions and awareness activities were delivered.

In 2024, the risk assessment revealed that 4 areas are the most at-risk in terms of Anticorruption topics: Marketing & Commercial, Racing Revenues and Purchasing & Quality, representing approximately 20 percent of the areas considered in the assessment. Consequently, tailored face-to-face training sessions and awareness activities were delivered to these areas in relation, on a case-by-case approach, to the most significant anticorruption matters, including general ethical principles, management of at-risk activities (e.g., third parties’ due diligence, gifts & hospitalities, non-profit initiatives) and the use of whistleblowing channels and processes.

Ferrari has adopted the Whistleblowing Procedure, in line with the Directive (EU) 2019/1937 of the European Parliament and of the Council, where protection of whistle-blowers is enclosed.

We generally pay our supplier within 60 days from the date of the invoice or from the end of the month when the invoice has been issued (standard payment terms), but single set of terms are usually agreed with suppliers of both services and material. The percentage of payments aligned with standard payment terms (within 60 days) is 95 percent, and for the SMEs the percentage does not differ significantly.

Ferrari does not have a formal policy with regard to late payments, however, it adopts clear and well-defined procedures for managing payments to suppliers, especially to small and medium enterprises (SMEs - Small and Medium Enterprises76).

The Days Payable Outstanding (DPO) is 65 days. Considering SMEs only, the average number of days are the same. These data refer to all payment transactions made to third party suppliers only through cash outflows or offsets by Ferrari S.p.A. in 2024, and the above indicated DPO is computed as the average number of days recorded between the date when the contractual or statutory terms of payment for each invoice starts to be calculated and the actual payment date, weighted by the amount of the invoice. The payment of certain invoices may occur after the original due date as a result of additional verification and control procedures that may be required for certain purchases prior to paying.

As of December 31, 2024, there were no outstanding legal proceedings for late payments.

Our policy

Our relations with suppliers are governed by purchase contracts (including general conditions of purchase), which outline mutual responsibilities and expectations. When we sign a contract with a business partner, we extend an invitation to them to also sign the Statement of Commitment, by which suppliers undertake not only to comply with the provisions of the Code of Conduct, but also with the Anticorruption Compliance Practice and the Third Parties Compliance Practice. Furthermore, they bind themselves to comply with the Organizational, Management and Control Model laid down in the Italian Legislative Decree No. 231/2001, which aims to prevent and combat unlawful behavior. This document is fundamental to establish a clear commitment to comply with ethical principles and rules of conduct that protect both the reputation of the third part and Ferrari. It is important to underline that any non-compliance with the Code of Conduct may give rise to significant consequences and could be considered a serious breach. In such circumstances, Ferrari reserves the right to terminate the contract with the entity involved, following the procedures provided for by law. Collaborating with Ferrari means sharing common values and a vision aimed at maintaining high ethical standards, thus enhancing integrity and transparency in professional relations. In this way, all partners can contribute to creating a positive and socially responsible working environment.

To further monitor and promote a responsible supply chain, we have appointed a Financial Supplier Risk Manager, who convenes a dedicated committee, the Supplier Risk Committee (“SRC”), every three months. The SRC committee is composed of, among others: Group CFO; Head of Purchasing; representatives of the Internal Audit, Risk and Compliance Department; Group Chief Accounting Officer; Financial Supplier Risk team; Group Treasurer; Purchasing Controller. Other entities otherwise involved, or needed for information or advice, are involved and invited to participate to the committee’s meetings when necessary. The SRC’s aim is to establish management guidelines for financially critical suppliers, approving current action plans and mitigation measures, requesting further plans to address risks arising from existing or potential supply relationships.

Moreover, in 2024 a new function dedicated to Sustainable Procurement was created, with the aim of managing the process of assessing Ferrari’s supply chain maturity level from an ESG perspective. The function will also guarantee operational activities in support of both direct and indirect purchasing, including strategic & trade compliance analyses and checks.

Consistent with the impacts and risks related to our supply chain, the selection of suppliers is based not only on the quality and competitiveness of their products and services, but also on their adherence to social and ethical principles. Strategic suppliers are assessed through a risk analysis that aims to identify critical suppliers, with a mix of financial-compliance and industrial assessments. Their growth capability is assessed to identify areas where we need to support the development of our business partners, helping them meet the Group’s requests. Furthermore, we have strengthened our supplier qualification and selection processes to verify not only their technical capability and financial solidity, but also - through a screening methodology - their reliability in terms of ethics, integrity and reputation (the so-called “Compliance Evaluation”).

Before engaging a new Tier 1 supplier, the competent departments of the Ferrari group conduct an adequate Compliance Evaluation on the potential supplier to examine its ethical reliability and reputation, its involvement in a legitimate and lawful business, and its commitment to share Ferrari’s values of integrity, fairness and compliance. The Compliance Evaluation is capable of identifying potential risks for Ferrari under different perspectives, such as: anticorruption, trade sanctions, money-laundering, conflict of interests, ethics (human rights included) and reputation. At the moment, no environmental criteria are considered in supplier accounting and there have been no significant changes in the activity since the prior period. The information collected enables us to identify activities to raise awareness among our suppliers, and we will continue this activity in the future. No significant operational or capital expenditures have been allocated to this action in 2024 or are planned for the future.

The Ferrari Group strives to uphold the highest standards of integrity, honesty, and fairness in all internal and external affairs and does not tolerate any kind of bribery. The laws of virtually all countries in which Ferrari operates prohibit bribery and any violation of anti-bribery and anticorruption laws would entail serious consequences for both companies and individuals, which can result in significant fines, imprisonment of individuals and reputational damages. These principles are laid down in the Code of Conduct and the Anticorruption Compliance Practice, which officially entered into force in 2020 and applies to the entire Ferrari Group pursuant to local legislation. In particular, in line with our impacts, risks, and opportunities, the Practice aims to define principles and provide rules of conduct and controls to all Ferrari Group people in the most at-risk activities (i.e. dealing with Public Officials, dealing with suppliers and third parties acting on behalf of the Ferrari Group, Gifts & Hospitalities, Non-profit Initiatives, Mergers, Acquisitions and Disposals, etc) in order to prevent corruption-related crimes and ensure compliance with Anticorruption Laws to which Ferrari is subject. Such rules are further enhanced in internal Procedures regulating those specific areas deemed at risk from an anticorruption perspective. These Procedures include, among others: the Gifts and Entertainment Expenses Procedures; the No-Profit Initiatives Procedure; the Procedure governing relations with Public Officials and Relevant Private Entities; the various Procedures governing the selection of Third Parties (e.g. suppliers, dealers, sponsors) and the related anticorruption due diligence. The practice covers the following risk: “Potential non-compliance with Anticorruption Laws requirements due to external context or internal elements”. Ferrari’s policy applies to every director, officer or other employee, consultant, agent, representative, supplier or business partner. It entails that none of these shall, directly or indirectly, give, offer, request, promise, authorize, solicit or accept bribes or any other perquisite (including gifts or gratuities, with the exception of commercial items universally accepted in an international context of modest economic value, permitted by applicable laws and in compliance with the Code of Conduct and all applicable practices and procedures) in connection with their work for Ferrari at any time or for any reason. The Internal Audit and Compliance functions periodically review the Anticorruption Practice and monitor its implementation to ensure it operates with effectiveness. The Compliance function is entrusted to oversee the design and implementation of the Anticorruption Practice, to provide advice and guidance to personnel on Anticorruption Laws and issues relating to bribery and corruption, to monitor the related risk and to provide support in training activities. The most senior level in the Ferrari Group that is accountable for the implementation of this practice is the FLT. The Practice has been drafted in line with the ISO 37001:2016 standard and is consistent with the United Nations Convention against Corruption. Practices and procedures are drafted with the precautionary principle in mind and are functional to the pursuit of the interests of stakeholders, who are therefore the main reference point considered in their drafting. The Anticorruption Practice has been adequately circulated, publicized and disseminated by Ferrari both internally and externally, also through its inclusion in the relevant contractual agreements and arrangements. Please refer to the Ferrari corporate website at the following link https://www.ferrari.com/en-EN/corporate/practices. The Anticorruption Practice includes a specific section dedicated to training. Accordingly, mandatory training programs are periodically developed by the Compliance function with the support of the Human Resources department. These trainings have the objective of providing the necessary knowledge of Anticorruption Laws and the instructions to recognize any potential criticalities to avoid questionable actions from an ethical standpoint. Please refer to the “—Whistleblowing” section, where information on reporting and addressing concerns related to business conduct is included. In 2024, there were no convictions and no fines for violation of anti-corruption and anti-bribery laws, therefore, no action has been taken to address breaches in procedures and standards of anti-corruption and anti-bribery. In 2024, there were no incidents in Ferrari’s value chain directly involving the Company or its employees.

The Internal Audit and Compliance functions (to be collectively intended as the “Whistleblowing Team”) are independent from the chain of management involved in the report, and attend periodical training sessions to properly manage the Whistleblowing process. However, if one of the members of the Whistleblowing Team is in a situation of potential conflict of interest, he/she shall promptly declare the existence of such a situation to the other members of the Whistleblowing Team, abstaining from any activity related to the report and not being made aware of the subsequent developments of the relevant activities. The report itself will be managed exclusively by the other members of the Whistleblowing Team. In the event that all members of the Whistleblowing Team are in a situation of potential conflict of interest, the Audit Committee will be informed of the situation and, to guarantee the same level of independence required, the report will be handled by the identified corporate functions, in accordance with the Whistleblowing Procedure.