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.