1
FERRARI N.V.
2024 ANNUAL REPORT AND FORM 20-F
4
TABLE OF CONTENTS
Board Report
9
Board of Directors
12
Independent Registered Public Accounting Firm
12
Letter from the Chairman and the Chief Executive Officer
14
Introduction
18
Certain Defined Terms and Note on Presentation
18
Forward-Looking Statements
19
Creating Value for Our Shareholders
20
Risk Factors
21
Overview
47
Industry Overview
50
Overview of Our Business
53
Financial Overview
88
Liquidity and Capital Resources
101
2025 Outlook
114
Major Shareholders
114
Corporate Governance
116
Report of the Non-Executive Directors
156
Sustainability Statement
163
ESRS 2 – General disclosures
166
E1 – Climate change
209
E2 – Pollution
240
E5 – Resource use and circular economy
242
S1 – Own workforce
247
S2 – Workers in the value chain
269
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TABLE OF CONTENTS
S3 – Affected communities
272
S4 – Consumers and End-users
276
G1 – Business Conduct
283
Risk Management Process and Internal Control System
295
Remuneration of Directors
302
Controls and Procedures
324
Statement by the Board Of Directors
327
Financial Statements
329
Consolidated Financial Statements
331
Consolidated Income Statement
333
Consolidated Statement of Comprehensive Income
334
Consolidated Statement of Financial Position
335
Consolidated Statement of Cash Flows
336
Consolidated Statement of Changes In Equity
338
Notes to the Consolidated Financial Statements
340
Company Financial Statement
403
Income Statement/Statement of Comprehensive Income
405
Statement of Financial Position
406
Statement of Cash Flows
407
Statement of Changes In Equity
408
Notes to the Company Financial Statements
409
Other Information
437
Additional Information for Netherlands Corporate Governance
439
Additional Information
440
Notes
474
9
PART I
BOARD
REPORT
11
BOARD REPORT
INDEX
BOARD REPORT
Board of Directors
12
Independent Registered
12
Public Accounting Firm
Letter from the Chairman and the
Chief Executive Officer
14
Introduction
18
Certain Defined Terms
18
and Note on Presentation
Forward-Looking Statements
19
Creating Value for
20
Our Shareholders
Risk Factors
21
Overview
47
Industry Overview
50
Overview of Our Business
53
Financial Overview
88
Liquidity and
101
Capital Resources
2025 Outlook
114
Major Shareholders
114
Corporate Governance
116
Report of the
156
Non-Executive Directors
Risk Management Process
295
and Internal Control System
Remuneration of Directors
302
Controls and Procedures
324
Statement by the
327
Board Of Directors
12
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
BOARD OF DIRECTORS
[Executive Chairman]
John Elkann
[Chief Executive Officer]
Benedetto Vigna
[Vice Chairman]
Piero Ferrari
[Directors]
Delphine Arnault
Francesca Bellettini
Eddy Cue
Sergio Duca
John Galantic
Maria Patrizia Grieco
Adam Keswick
Mike Volpi
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Deloitte Accountants B.V. (AFM Annual Report filing(*)
Deloitte & Touche S.p.A. (Form 20-F filing)(*)
(*) Refer to “Introduction—About this Report” for additional information relating
to the AFM Annual Report filing and the Form 20-F filing
14
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
LETTER FROM THE CHAIRMAN
AND THE CHIEF EXECUTIVE OFFICER
Our founder Enzo Ferrari was a vision-
ary, a pioneer ahead of his time. To this day,
everything we do here at Maranello is fuelled
by his relentless will to progress. This legacy
to audaciously redefine the limits of possi-
ble, to innovate, to continually push forward
across each of The Prancing Horse’s souls,
has led to another remarkable year, marked
by significant milestones in racing, sports
cars and lifestyle.
Ferrari’s achievements in 2024 created
some unforgettable memories, and saw
the continued growth of our Company. Our
excellent financial results reflect our com-
mitment to quality of revenues over volume,
with all financial parameters increasing by
double digits, and a slight rise in shipments
compared to last year. These resulted in an
industrial free cash flow above 1 billion Euro,
and EBITDA margin of 38.3 percent and a net
profit reaching 1.5 billion Euro.
These figures are testament to our ded-
ication to enshrining our brand’s exclusivity
whilst further consolidating its position in
the luxury world.
Our
founder’s
pioneering
legacy
is
embodied in the sports cars we unveiled in
2024, in accordance with the plan we set out
on Capital Markets Day 2022.
In May, our extraordinary line up was
further strengthened by the 12Cilindri and
12Cilindri Spider, fitted with the latest, most
advanced version of our iconic V12 engine.
And then, in October, we revealed our F80
supercar. It raises the bar once again, mark-
ing a new chapter in a proud lineage of leg-
endary Ferraris such as 1984’s GTO, 1987’s
F40, and 2016’s LaFerrari Aperta. The F80,
the pinnacle of Maranello’s technological
innovation to date, continues Enzo Ferrari’s
drive to transfer advances and learnings
derived from the track onto the road, using
the same engine architecture that powers
the 499P Hypercar.
In his quest for excellence, Enzo demanded
complete control of every component, and
our new supercar fully reflects this. It also
represents a major advance in our electrifica-
tion capabilities – we can now claim that our
battery assemblies, electric axles, inverters
and electric engines are all “developed and
made in Maranello”.
These important strides forward in our
electrification journey are possible thanks
to the opening of our new e-building in
Maranello, inaugurated on June 21 in the
presence of the Italian President, Sergio
Mattarella. Thanks to our people’s commit-
ment, construction took just two years and
was achieved with unprecedented levels of
energy, process and materials efficiency.
This state-of-the-art facility increases
our production flexibility, and it is here that
we will manufacture the next generation of
Ferraris, including another exciting chapter
in our history… the first Ferrari elettrica. We
believe in offering our clients complete flex-
ibility in terms of powertrain, and this land-
mark sports car will be an important addi-
tion to our internal combustion and hybrid
models. There has of course been much
interest and speculation about this model,
and we can promise that it will be a true
Ferrari, delivering all the distinctive driving
excitement that characterizes a sports car
from the Prancing Horse.
Our
founder’s will
to
progress was
matched by a thirst for knowledge that
enabled him to get the edge on his competi-
tors and sparked new innovations. In April
2024 our understanding and expertise in
electric power received a further boost with
the opening of the E-Cells Lab in collaboration
with University of Bologna and NXP. This new
Dear Shareholder,
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
15
BOARD REPORT
electrochemical research center, developed
by Ferrari in knowledge of the materials and
the chemical and physical properties of lith-
ium cells to prepare for the future.
Ferrari aims to lead by example in sus-
tainable innovation, and 30 September saw
a further milestone in our journey towards
carbon neutrality by 2030 when we shut
down the trigenerator at our Maranello fac-
tory. Although this plant had been an exam-
ple of high-efficiency technology, its closure
will ensure a threefold reduction in methane
gas consumption compared to 2021 as we
rely increasingly on renewable sources of
power. This progress is consistent with our
strategy and sustainability targets, and we
were in fact able to do it three months earlier
than previously planned.
Ferrari was born to compete on the
track, and 2024 proved to be a memora-
ble competitive season that honored the
Prancing Horse’s racing soul. Our teams
brought home memorable victories in both
the FIA World Endurance Championship
and Formula 1: we will never forget Sunday,
September 1, a special day in which we won
in both the WEC at Austin and the F1 GP at
Monza – two continents, two different cat-
egories, two Ferrari triumphs. In Formula 1
we were in contention for the Constructors’
title right to the very end. In Scuderia
Ferrari’s 95th anniversary year, our five
Grand Prix wins united us all as a commu-
nity, as did our second consecutive win in
the Le Mans 24 with the extraordinary 499P
Hypercar. Our triumph in this legendary test
of human and mechanical endurance was
a moment of great joy, as was the brilliant
performance of the 296 GT3 and of the 296
Challenge in its debut year.
Enzo Ferrari was never satisfied with the
status quo – and today we’re still looking for
new ways to challenge our racing DNA. We
are currently preparing to enter the world
of sailing: the search for maximum perfor-
mance at sea gives us the opportunity to
develop new innovations in sustainability
that will inspire our future sports cars.
Our lifestyle soul is also evolving and
progressing. It’s a vital part of what we do,
because for many fans of our brand, this is
their entry point into the Ferrari world. In
2024, the Museums of Maranello and Modena
enjoyed
record
attendances
with
over
850,000 visitors, driven by the public’s inex-
haustible passion for the Prancing Horse.
Our collections have continued to enjoy
strong acclaim during Milan Fashion Week
and commercial traction, with the exclusive
Miami capsule collection and other limited
editions of the Maranello Clutch, meticu-
lously crafted in our factory.
In the luxury environment, delivering an
outstanding experience is just as import-
ant as an outstanding product. Much of our
success in 2024 must be attributed to the
way our teams have worked in harmony to
continue to elevate our brand. This was best
demonstrated in Miami last spring, when an
unprecedented program of Racing, Sports
Car and Lifestyle events were designed
around the Miami Grand Prix to bring the
Ferrari community together and capture the
very essence of the Prancing Horse.
At the heart of all of our achievements
are our people: their passion, their sense of
belonging, and their shared endeavor to cre-
ate excellence. And it is for our people that we
committed to and implemented a series of ini-
tiatives in 2024. These include a broad-based
share ownership plan, our Competitiveness
Award, comprehensive training programs,
and an enhanced corporate welfare system
focused on employee wellbeing. Together,
these initiatives reflect the value we place on
our people, and acknowledge their bound-
less ability to innovate.
Our clients’ generosity complements our
actions to give back to our community. Our
founder knew that progress is enabled by
knowledge, and Ferrari has a historic atten-
tion to excellence in training and education.
We maintain our priority on educational
projects with innovation at their core – fur-
ther strengthening our commitment for ini-
tiatives with global ambitions in Maranello.
As we execute our business plan, we
remain steadfastly forward-looking. Our
will to progress defines our legacy and our
future. Whatever challenges present them-
selves in 2025, we will continue to face them
head on, in line with our commitment to inno-
vation, exclusivity and excellence – always
with four wheels on the ground.
Thank you for your support in 2024.
We are delighted to have you onboard for
another exciting year ahead.
February 20, 2025
John Elkann
[Executive Chairman]
Benedetto Vigna
[Chief Executive Officer]
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BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
INTRODUCTION
ABOUT THIS REPORT
This document, referred to hereafter as the “Annual
Report and Form 20-F” or “Annual Report”, con-
stitutes both the statutory annual report in accor-
dance with Dutch legal requirements (“AFM Annual
Report”) and the annual report on Form 20-F (“Form
20-F”), applicable to Foreign Private Issuers, pursu-
ant to Section 13 or 15(d) of the United States (“U.S.”)
Securities Exchange Act of 1934, of Ferrari N.V. for
the year ended December 31, 2024, except as not-
ed below. For the cross-references of the contents
of this document to the Form 20-F requirements
please refer to the “Form 20-F Cross Reference”
section included elsewhere in this document.
This Annual Report is filed with the Netherlands
Authority for Financial Markets (Autoriteit Financiële
Markten, the “AFM”). The following sections have been
removed for our Annual Report filing with the AFM:
• Form 20-F cover page;
• Corporate Governance — Differences between
Dutch Corporate Governance Practices and
NYSE Listing Standards;
• Report
of
Independent
Registered
Public
Accounting Firm in respect of Internal Control
over Financial Reporting for the SEC filing;
• Report
of
Independent
Registered
Public
Accounting Firm in respect of the PCAOB audits
of the financial statements for the SEC filing;
• Exhibits;
• Form 20-F Cross Reference; and
• Signatures.
This Annual Report and the exhibits hereto are filed
with the U.S. Securities and Exchange Commission
(“SEC”) and unless otherwise stated, all references
in this document to “Form 20-F” refer to the SEC fil-
ing. The following sections have been removed for
our Form 20-F filing with the SEC:
• Letter
from
the
Chairman
and
the
Chief
Executive Officer;
• 2025 Outlook;
• Corporate Governance — Disclosures pursuant
to Decree Article 10 EU-Directive on Takeovers;
• Corporate Governance — Responsibilities in re-
spect to the Annual Report;
• Sustainability Statement;
• Controls
and
procedures
—
Statement
by
the
Board
of
Directors;Company
Financial
Statements;
• Other Information — Additional Information for
Netherlands Corporate Governance; and
• Independent auditor’s report — Report on the
audit of the financial statements included in the
Annual Report in respect of the AFM filing.
DOCUMENTS ON DISPLAY
The SEC maintains an internet site that contains re-
ports, proxy and information statements, and other
information regarding issuers that file electroni-
cally with the SEC, including the Company, at http://
www.sec.gov. The address of the SEC’s website is
provided solely for information purposes and is not
intended to be an active link. Reports and other in-
formation concerning the business of Ferrari may
also be inspected at the offices of the New York
Stock Exchange, 11 Wall Street, New York, NY 10005,
United States.
We also make our periodic reports as well as
other information filed with or furnished to the SEC
available, free of charge, through our website at
https://www.ferrari.com/en-EN/corporate as soon
as reasonably practicable after those reports and
other information are electronically filed with or fur-
nished to the SEC. The information on our website or
the websites of any other entity is not incorporated
by reference in this document.
This document is a PDF copy of the Annual
Report of Ferrari N.V. at and for the year ended
December 31, 2024 and is not presented in the ESEF-
format as specified in the Regulatory Technical
Standards on ESEF (Delegated Regulation (EU)
2019/815). The official Annual Report of Ferrari N.V.
in ESEF single reporting package, as filed with the
AFM, is available on Ferrari’s website.
CERTAIN DEFINED TERMS AND NOTE
ON PRESENTATION
CERTAIN DEFINED TERMS
In this report, unless otherwise specified, the terms
“we”, “our”, “us”, the “Group”, the “Company” and
“Ferrari” refer to Ferrari N.V., individually or togeth-
er with its subsidiaries as the context may require.
References to “Ferrari N.V.” refer to the registrant.
NOTE ON PRESENTATION
This Annual Report includes the consolidated finan-
cial statements of Ferrari N.V. at December 31, 2024
and 2023, and for the years ended December 31,
2024, 2023 and 2022 prepared in accordance with
the IFRS® Accounting Standards (“IFRS Accounting
Standards”) as issued by the International Accounting
Standards Board (“IASB”), as well as IFRS Accounting
Standards as adopted by the European Union
(throughout this document references to IFRS
Accounting Standards refer to both IFRS Accounting
Standards as issued by the IASB and IFRS Accounting
Standards as adopted by the European Union, un-
less specified otherwise). There is no effect on these
consolidated financial statements resulting from
differences between IFRS Accounting Standards as
issued by the IASB and IFRS Accounting Standards
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
19
BOARD REPORT
as adopted by the European Union. The consolidated
financial statements and the notes to the consolidat-
ed financial statements are referred to collectively
as the “Consolidated Financial Statements”.
BASIS OF PREPARATION OF THE
CONSOLIDATED FINANCIAL STATEMENTS
The Group’s financial information is presented in
Euro. In some instances, information is presented
in U.S. Dollars. All references in this document to
“Euro” and “€” refer to the currency introduced at
the start of the third stage of European Economic
and Monetary Union pursuant to the Treaty on the
Functioning of the European Union, as amended,
and all references to “U.S. Dollars” and “$” refer to
the currency of the United States of America (the
“United States” or the “U.S.”).
The language of this Annual Report is English.
Certain legislative references and technical terms
have been cited in their original language in order
that the correct technical meaning may be ascribed
to them under applicable law.
The financial data in the section “Financial Overview”
is presented in millions of Euro, while the percent-
ages presented are calculated using the underlying
figures in thousands of Euro.
Certain totals in the tables included in this docu-
ment may not add due to rounding.
Except as otherwise disclosed within this Annual
Report, no significant change has occurred since
the date of the Consolidated Financial Statements.
FORWARD-LOOKING STATEMENTS
Statements contained in this Annual Report, par-
ticularly those regarding our possible or assumed
future performance, competitive strengths, costs,
dividends, reserves and growth as well as industry
growth and other trends and projections, are “for-
ward-looking statements” that contain risks and un-
certainties. In some cases, words such as “may”, “will”,
“expect”, “could”, “should”, “intend”, “estimate”, “antic-
ipate”, “believe”, “remain”, “continue”, “on track”, “suc-
cessful”, “grow”, “design”, “target”, “objective”, “goal”,
“forecast”, “projection”, “outlook”, “prospects”, “plan”,
“guidance” and similar expressions are used to identi-
fy forward-looking statements. These forward-look-
ing statements reflect the respective current views
of Ferrari with respect to future events and involve
significant risks and uncertainties that could cause
actual results to differ materially from those indicat-
ed in the forward-looking statements. Such risks and
uncertainties include, without limitation:
• our ability to preserve and enhance the value of
the Ferrari brand;
• our ability to attract and retain qualified personnel;
• the success of our racing activities;
• our ability to keep up with advances in high per-
formance car technology, to meet the challeng-
es and costs of integrating advanced technol-
ogies, including electric, more broadly into our
car portfolio over time and to make appealing
designs for our new models;
• the impact of increasingly stringent fuel econ-
omy, emissions and safety standards, including
the cost of compliance, and any required chang-
es to our products, as well as possible future
bans of combustion engine cars in cities and the
potential advent of self-driving technology;
• increases in costs, disruptions of supply or
shortages of components and raw materials;
• our ability to successfully carry out our low volume
and controlled growth strategy, while increasing
our presence in growth market countries;
• changes in general economic conditions (includ-
ing changes in the markets in which we operate)
and changes in demand for luxury goods, includ-
ing high performance luxury cars, which is highly
volatile;
• macro events, pandemics and conflicts, includ-
ing the ongoing conflicts in Ukraine and the
Middle East region, and the related issues poten-
tially impacting sourcing and transportation, as
well as trading policies and tariffs;
• competition in the luxury performance automo-
bile industry;
• changes in client preferences and automotive
trends;
• our ability to preserve the value of our cars over
time and our relationship with the automobile
collector and enthusiast community;
• disruptions at our manufacturing facilities in
Maranello and Modena;
• climate change and other environmental im-
pacts, as well as an increased focus of regulators
and stakeholders on environmental matters;
• our ability to maintain the functional and effi-
cient operation of our information technology
systems and to defend from the risk of cyberat-
tacks, including on our in-vehicle technology;
• the ability of our current management team to
operate and manage effectively and the reliance
upon a number of key members of executive
management and employees;
• the performance of our dealer network on
which we depend for sales and services;
• product warranties, product recalls and liability
claims;
• the sponsorship and commercial revenues and
expenses of our racing activities, as well as the
popularity of motor sports more broadly;
• the performance of our lifestyle activities;
• our ability to protect our intellectual property
rights and to avoid infringing on the intellectual
property rights of others;
• our continued compliance with customs regula-
tions of various jurisdictions;
• labor relations and collective bargaining agree-
ments;
• our ability to ensure that our employees, agents
20
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
and representatives comply with applicable law
and regulations;
• changes in tax, tariff or fiscal policies and regula-
tory, political and labor conditions in the jurisdic-
tions in which we operate;
• our ability to service and refinance our debt;
• exchange rate fluctuations, interest rate changes,
credit risk and other market risks;
• our ability to provide or arrange for adequate ac-
cess to financing for our clients and dealers, and
associated risks;
• the adequacy of our insurance coverage to pro-
tect us against potential losses;
• potential conflicts of interest due to director and
officer overlaps with our largest shareholders;
and
• other factors discussed elsewhere in this docu-
ment.
We expressly disclaim and do not assume any liabil-
ity in connection with any inaccuracies in any of the
forward-looking statements in this document or in
connection with any use by any third party of such
forward-looking statements. Actual results could
differ materially from those anticipated in such
forward-looking statements. We do not undertake
an obligation to update or revise publicly any for-
ward-looking statements.
Additional factors which could cause actual
results and developments to differ from those
expressed or implied by the forward-looking state-
ments are included in the section “Risk Factors”
of this Annual Report. These factors may not be
exhaustive and should be read in conjunction with
the other cautionary statements included in this
Annual Report. You should evaluate all forward-look-
ing statements made in this report in the context of
these risks and uncertainties.
CREATING VALUE FOR OUR
SHAREHOLDERS
Ferrari is among the world’s leading luxury brands
with unique, world-class capabilities, and a vision
built on our historic foundations and strengths.
We are fiercely protective of our brand, which
is among the most iconic and recognizable in the
world and is critical to our value proposition to all of
our stakeholders. We strive to maintain and enhance
the power of our brand and the passion we inspire
in clients and the broader community of automotive
enthusiasts by continuing our rigorous production
and distribution model, which promotes excellence
in innovation, design and uniqueness
We also support our brand value by promoting
a strong connection to our company and our brand
among the community of Ferrari enthusiasts. We
focus relentlessly on strengthening this connection
by rewarding our most loyal clients through a range
of initiatives, such as driving events and client activ-
ities worldwide and, most importantly, by providing
our most loyal and active clients with preferential
access to our newest, most exclusive and highest
value cars. As a result, in 2024, we sold approximately
81% of our new cars to existing Ferrari clients and
48% to clients being current owners of more than
one Ferrari, which reinforces the demand for our
cars and the image of luxury and exclusivity inher-
ent in our brand.
Our commitment to excellence and our pursuit
of innovation, state-of-the-art performance and
distinction in design and engineering in our luxury
cars is inseparable from our commitment to integ-
rity, transparency and responsibility in conducting
our business. By fully integrating environmental and
social considerations with economic objectives we
are able to identify potential risks and capitalize on
additional opportunities, resulting in a process of
continuous improvement. Sustainability is a core
element of our governance model and executive
management plays a direct and active role in devel-
oping and achieving our sustainability objectives
under the direction of our Board of Directors. As a
clear demonstration of this commitment, we have
strengthened the integration of environmental top-
ics in our strategic plan by presenting, in June 2022,
a decarbonization strategy that will help us reach
carbon neutrality by 2030.
The foundation of a responsible company rests
on being fully attentive to the nature and extent
of this interconnection and our understanding of
both the potential effects of our activities and how
those effects can be mitigated through responsi-
ble management.
All of the above is strictly linked to our values:
• INDIVIDUAL AND TEAM: Our talented individuals
are our greatest resource. However, they can
only pursue the extraordinary by working to-
gether as a team. By fostering integrity, excel-
lence and generosity, we give each of our people
the possibility to express their own full potential
- and to be part of something greater.
• TRADITION AND INNOVATION: Tradition and in-
novation drive each other. The ongoing quest for
lasting firsts is what fuels the Ferrari legend. Our
ability to combine revolutionary technological
solutions with exceptional artisanal craftsman-
ship is what enables us to create icons that stay
timeless in a fast-changing world.
• PASSION AND ACHIEVEMENT: Ferrari’s racing
spirit lives on in emotions that transcend the
road and the track, ultimately becoming an au-
thentic attitude towards life. Nothing excites us
more than setting ambitious targets and expec-
tations - and then exceeding them, to push ev-
ery boundary. It is how the power of passion be-
comes the beauty of achievement.
Ferrari audaciously redefines the limits of possible.
To ensure tangible long-term value creation and a
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
21
BOARD REPORT
continuing integration of our sustainability strategy,
we place particular emphasis on:
• a governance model based on transparency and
integrity, fostering best practices;
• a safe and environmentally conscious work-
place including excellent working conditions and
the utmost respect for human rights;
• continuing professional development of our em-
ployees;
• mutually beneficial relationships with business
partners and the communities in which we op-
erate; and
• mitigation of environmental impacts from our
production processes and the luxury cars we
produce, addressing direct and indirect GHG
emissions, focusing on energy and materials, in
addition to our electrification journey.
RISK FACTORS
We face a variety of risks and uncertainties in our
business. Those described below are not the only
risks and uncertainties that we face. Additional risks
and uncertainties that we are unaware of, or that we
currently believe to be immaterial, may also become
important factors that affect us.
RISKS RELATED TO OUR BUSINESS,
STRATEGY AND OPERATIONS
WE MAY NOT SUCCEED IN PRESERVING
AND ENHANCING THE VALUE OF THE FERRARI
BRAND, WHICH WE DEPEND UPON TO DRIVE
DEMAND AND REVENUES.
Our financial performance is influenced by the per-
ception and recognition of the Ferrari brand, which,
in turn, depends on many factors such as the design,
performance, quality and image of our cars, the suc-
cess of our racing teams, the appeal of our dealer-
ships and stores, the success of our promotional ac-
tivities including public relations and marketing, as
well as our general profile, including our brand’s im-
age of exclusivity. The value of our brand and our abil-
ity to achieve premium pricing for Ferrari-branded
products may decline if we are unable to maintain
the value and image of the Ferrari brand, including, in
particular, its aura of exclusivity. Maintaining the val-
ue of our brand will depend significantly on our abil-
ity to continue to produce luxury performance cars
of the highest quality. The market for luxury goods
generally and for luxury automobiles in particular is
intensely competitive, and we may not be successful
in maintaining and strengthening the appeal of our
brand. Client preferences, particularly among luxu-
ry goods, can vary over time, sometimes rapidly. We
are therefore exposed to changing perceptions of
our brand image, particularly as we seek to attract
new generations of clients and, to that end, we con-
tinuously renovate and expand the range of our mod-
els. For example, the expansion of hybrid engine and
electric engine technology into our product portfolio
may impact the overall driver experience compared
to the combustion engine cars of our historical mod-
els, and the long term response of our clients to these
new technologies, particularly with respect to fully
electric models, remains unknown. Any failure to pre-
serve and enhance the value of our brand may mate-
rially and adversely affect our ability to sell our cars,
to maintain premium pricing, and to extend the value
of our brand into other activities profitably or at all.
More broadly, our lifestyle strategy will signifi-
cantly increase the deployment of our brand in non-car
products and experiences, including a large variety of
Ferrari-branded accessories and apparel. If this strat-
egy is not successful, our brand image may be diluted
or tainted. We selectively license the Ferrari brand to
third parties that produce and sell Ferrari-branded
luxury goods and therefore we rely on our licensing
partners to preserve and enhance the value of our
brand. If our licensees or the manufacturers of these
products do not maintain the standards of quality
and exclusivity that we believe are consistent with the
Ferrari brand, or if such licensees or manufacturers
otherwise misuse the Ferrari brand, our reputation
and the integrity and value of our brand may be dam-
aged and our business, operating results and financial
condition may be materially and adversely affected.
In addition, given the popularity, competitive-
ness and demographic penetration of social media,
Ferrari must maintain a presence on the principal
established and emerging social media platforms.
If we cannot cost effectively use these marketing
tools, if we fail to promote our products and services
efficiently and effectively or to properly comply with
the applicable laws and regulations, or if our social
media campaigns attract negative media attention
or customer feedback, the value of our brand may
be negatively impacted, as well as our results of
operations. The popularity and reach of social media
and other online platforms has also made it increas-
ingly easier for individuals and groups to communi-
cate and share opinions and views. Any negative or
adverse publicity about us, whether or not truthful,
could rapidly disseminate and harm customer and
community perceptions as well as confidence in our
brand and ultimately impact our business, results of
operations and financial condition.
IF WE ARE NOT ABLE TO ATTRACT AND RETAIN
QUALIFIED PERSONNEL, WE MAY NOT BE ABLE
TO MAINTAIN OUR COMPETITIVE POSITION OR
IMPLEMENT OUR BUSINESS STRATEGY.
Our success depends, in part, on our continuing abil-
ity to attract, recruit, develop and retain qualified tal-
ent, as well as maintaining the right balance between
internal resources and qualified suppliers to ensure
flexibility in our business operations and the availabil-
ity of the skills and expertise required. Failure to do
so effectively would adversely affect our business.
22
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Competition to attract talented employees is intense,
and there can be a limited availability of individuals
with the requisite knowledge and relevant experi-
ence. In addition, we may not succeed in instilling our
corporate culture and values in our personnel and
we may not be able to attract, assimilate, develop or
retain qualified personnel in the future. Failure to do
so could adversely affect our business, including our
ability to execute our global business strategy.
OUR BRAND IMAGE DEPENDS IN PART ON
THE SUCCESS OF OUR RACING ACTIVITIES,
PARTICULARLY OUR FORMULA 1 TEAM.
The prestige, identity, and appeal of the Ferrari
brand depends in part on the success of our rac-
ing activities, which are a key component of our
marketing strategy and may be perceived by our
clients as a demonstration of the technological ca-
pabilities of our cars, which also support the appeal
of other Ferrari-branded luxury goods. In particu-
lar, we are focused on improving the results of our
Scuderia Ferrari racing team in the Formula 1 World
Championship and restoring our historical position
as the premier racing team in Formula 1, as our most
recent Drivers’ Championship and Constructors’
Championship were in 2007 and 2008, respective-
ly. If we are unable to attract and retain the neces-
sary talent to succeed in international competitions
or devote the capital necessary to fund successful
racing activities, the value of the Ferrari brand and
the appeal of our cars and other luxury goods may
suffer. Even if we are able to attract such talent and
adequately fund our racing activities, there is no as-
surance that this will lead to competitive success
for our racing teams.
The success of our racing teams depends in par-
ticular on our ability to attract and retain top drivers,
racing team management and engineering talent.
Our primary Formula 1 drivers, team managers and
other key employees of Scuderia Ferrari are critical
to the success of our Scuderia Ferrari racing team
and if we were to lose their services, this could have
a material adverse effect on our success and cor-
respondingly the Ferrari brand. If we are unable to
find adequate replacements or to attract, retain and
incentivize drivers and team managers, other key
employees or new qualified personnel, the success
of our racing teams may suffer. In addition, the caps
on spending imposed by the Formula 1 governing
body may hinder our ability to restore our racing
preeminence (See “Our revenues from Formula 1
activities may decline and our related expenses may
grow”). Because the success of our racing teams
forms a large part of our brand identity, a sustained
period without racing success could detract from
the Ferrari brand and, as a result, from potential
clients’ enthusiasm for the Ferrari brand and their
perception of our cars, which could have an adverse
effect on our business, results of operations and
financial condition.
IF WE ARE UNABLE TO KEEP UP WITH ADVANCES
IN HIGH PERFORMANCE CAR TECHNOLOGY, OUR
BRAND AND COMPETITIVE POSITION MAY SUFFER.
Performance
cars
are
characterized
by
lead-
ing-edge technology that is constantly evolving. In
particular, advances in racing technology often lead
to improved technology in road cars. Although we
invest heavily in research and development, we may
be unable to maintain our leading position in high
performance car technology and, as a result, our
competitive position may suffer. As technologies
change, we plan to upgrade or adapt our cars and
introduce new models in order to continue to pro-
vide cars with the latest technology. However, our
cars may not compete effectively with our compet-
itors’ cars if we are not able to develop, source and
integrate the latest technology into our cars. For ex-
ample, in the next few years we expect that luxury
performance cars will increasingly transition to hy-
brid and electric technology, albeit at a slower pace
compared to mass market vehicles. See “The intro-
duction of electric technology in our cars is costly
and its long-term success is uncertain”. We are also
investing in connectivity, which requires significant
investments in research and development; we ex-
pect that the future generation of cars will feature a
higher degree of connectivity for purposes of info-
tainment, safety and regulatory compliance. These
in-car features may also in the near-to-medium term
be driven by advances in artificial intelligence (or AI)
which may need to be sourced externally and inte-
grated into the car technology.
Developing or acquiring and applying new auto-
motive technologies is costly, and may become even
more costly in the future as available technology
advances and competition in the industry increases.
If our research and development efforts do not lead
to improvements in car performance relative to our
competitors, or if we are required to spend more to
achieve comparable results, the sales of our cars or
our profitability may suffer.
IF OUR CARS DO NOT PERFORM AS EXPECTED
OUR ABILITY TO DEVELOP, MARKET AND SELL
OUR CARS COULD BE HARMED.
Our cars may contain defects in design and manu-
facture that may cause them not to perform as ex-
pected or that may require repair. There can be no
assurance that we will be able to detect and fix any
defects in the cars prior to their sale to consumers.
Our cars may not perform in line with our clients’
evolving expectations or in a manner that equals or
exceeds the performance characteristics of oth-
er cars currently available. For example, our newer
cars may not have the durability or longevity of cur-
rent cars, and may not be as easy to repair as other
cars currently on the market. Any product defects
or any other failure of our performance cars to per-
form as expected could harm our reputation and
result in adverse publicity, lost revenue, delivery de-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
23
BOARD REPORT
lays, product recalls, product liability claims, harm to
our brand and reputation, and significant warranty
and other expenses, and could have a material ad-
verse impact on our business, operating results and
financial condition.
IF OUR CAR DESIGNS DO NOT APPEAL
TO CLIENTS, OUR BRAND AND COMPETITIVE
POSITION MAY SUFFER.
Design and styling are an integral component of our
models and our brand. Our cars have historically
been characterized by distinctive designs combin-
ing the aerodynamics of a sports car with powerful,
elegant lines. We believe our clients purchase our
cars for their appearance as well as their perfor-
mance. However, we will need to renew over time
the style of our cars to differentiate the new mod-
els we produce from older models, and to reflect
the broader evolution of aesthetics in our markets.
Through the Ferrari Design Centre, our in-house de-
sign team, we devote great efforts to the design of
our cars. The design of our electric cars and, more
generally, of our future models with increased con-
nectivity features will depart from past designs in
appearance and functionality, thereby requiring
new skills and presenting new challenges. If the de-
sign of our future models fails to meet the evolving
tastes and preferences of our clients and prospec-
tive clients, or the appreciation of the wider pub-
lic, our brand may suffer and our sales may be ad-
versely affected.
THE INTRODUCTION OF ELECTRIC TECHNOLOGY
IN OUR CARS IS COSTLY AND ITS LONG-TERM
SUCCESS IS UNCERTAIN.
We are gradually introducing electric technology
in our cars and we currently plan to launch the first
full electric Ferrari in the fourth quarter of 2025.
In accordance with our strategy, we believe elec-
tric technology, together with hybrid and other ad-
vanced technologies, will be key to providing con-
tinuing performance upgrades to our sports car
customers, and will also help us capture the prefer-
ences of the urban, affluent car purchasers whom
we are increasingly targeting, while helping us meet
increasingly stricter emissions requirements.
The integration of electric technology more
broadly into our car portfolio over time may pres-
ent challenges and costs. Although we expect to
continue pricing our cars appropriately to recoup
the investments and expenditures we are making to
integrate electric and other advanced technologies
into our cars, we cannot be certain that these expen-
ditures will be fully recovered or that they will be
recovered with our desired margins. In addition, this
transformation of our car technology may create
risks and uncertainties with respect to the impact on
driver experience and the potential obsolescence
of core components which in turn may affect the
residual value of our cars over time. Other manufac-
turers of luxury sports cars may be more success-
ful in implementing electric technology. In the long-
term, although we believe that combustion engines
will continue to be fundamental to the Ferrari driver
experience for the foreseeable future, hybrid and
pure electric cars may become the prevalent tech-
nology for performance sports cars. See also “If we
are unable to keep up with advances in high perfor-
mance car technology, our brand and competitive
position may suffer”.
Because electric technology is a core compo-
nent of our strategy, and in the medium term we plan
to increase the portion of our shipments that feature
vehicles with electric technology, if the introduction
of electric cars proves too costly or is unsuccessful
in the market, our business and results of operations
could be materially adversely affected.
NEW OR CHANGING LAWS, REGULATIONS OR
POLICIES OF GOVERNMENTAL ORGANIZATIONS
REGARDING, AMONG OTHER THINGS,
INCREASED FUEL ECONOMY REQUIREMENTS,
REDUCED GREENHOUSE GAS OR POLLUTANT
EMISSIONS, VEHICLE SAFETY, OR CONNECTIVITY
REQUIREMENTS MAY HAVE A SIGNIFICANT
EFFECT ON OUR COSTS OF OPERATION AND/OR
HOW WE DO BUSINESS.
We are subject throughout the world to comprehen-
sive and constantly evolving laws, regulations and
policies. We expect the extent of the legal and regu-
latory requirements affecting our business and our
costs of compliance to continue to increase signifi-
cantly in the future. Failure to comply with applicable
laws and regulatory requirements, in addition to the
fines it may attract, may negatively impact our busi-
ness, results of operations and financial condition as
well as our reputation.
In Europe and the United States, for example, sig-
nificant governmental regulation is driven by envi-
ronmental, fuel economy, vehicle safety, noise emis-
sion and connectivity concerns. Evolving regulatory
requirements could significantly affect our prod-
uct development plans and may limit the number
and types of cars we sell and where we sell them,
which may affect our revenue and profitability.
Governmental regulations may increase the costs
we incur to design, develop and produce our cars
and may affect our product portfolio. Regulation
may also result in a change in the character or per-
formance characteristics of our cars, which may
render them less appealing to our clients. We antici-
pate that the number and extent of these regulations,
and their effect on our cost structure and product
line-up, will increase significantly in the future.
In the United States, there has been increas-
ing focus on emissions and pollution regulations in
recent years. New regulations are in the process of
being developed, and many existing and potential
regulatory initiatives are subject to review by federal
or state agencies or the courts. However, the recent
change in the administration introduces consider-
24
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
able uncertainty on future changes. In April 2024,
the U.S. Environmental Protection Agency (EPA)
released its Multi Pollutant Emissions Standards for
Model Years 2027 and Later Light Duty and Medium
Light Vehicles final rule, introducing, among other
requirements, stricter emission standards (e.g.,
particulate matter). While several special provisions
for SVMs have been retained from the initial 2023
proposal, the GHG alternative standards have been
completely eliminated from the adopted rules.
In addition, we are subject to legislation relat-
ing to the emission of other air pollutants such as,
among others, the EU “Euro 6” standards and Real
Driving Emissions (RDE) standards, the “Tier 3”
Motor Vehicle Emission and Fuel Standards issued
by
the
U.S.
Environmental
Protection
Agency
(“EPA”), and the Zero Emission Vehicle regulation in
California, which are subject to similar derogations
for Small Volume Manufacturers (“SVMs”). We lost
our status as an SVM for the United States National
Highway Traffic Safety Administration (“NHTSA”)
in 2019, because our global production exceeded
10,000 vehicles, but we have not lost our SVM status
for EU CO2 regulations or for EPA GHG regulations in
the United States. In 2022, 2023, and 2024 our global
production exceeded 10,000 vehicles again and
therefore we were no longer considered a SVM by
the NHTSA for the model years 2022, 2023 and 2024.
We purchased the fuel economy (“CAFE”) credits
needed to fulfill our 2022 and 2023 deficits and we
are currently evaluating the purchase of credits for
2024. We expect to continue to purchase credits in
the coming years if required. We could lose our sta-
tus as an SVM in the EU, the United States and other
countries if we do not continue to meet all of the
necessary eligibility criteria under applicable regu-
lations as they evolve, not only in relation to volumes
but also in relation to the conditions of operational
independence. In order to meet these criteria we
may need to modify our growth plans or other oper-
ations. Furthermore, even if we continue to benefit
from derogations as an SVM, we may have a sub-
stantial impact on our financial results.
As the state of California has been granted
special authority under the Clean Air Act to set its
own vehicle emission standards, the California Air
Resources Board (“CARB”) enacted regulations
under which manufacturers of vehicles for cer-
tain model years that are in compliance with the
EPA greenhouse gas emissions regulations are
also deemed to be in compliance with California’s
greenhouse gas emission regulations (the so-called
“deemed to comply” provision). These regulations
have evolved over time. In 2018, the CARB amended
its existing regulations to clarify that the “deemed to
comply” provision would not be available for certain
model years if the EPA standards for those years
were altered via an amendment of federal regula-
tions and, in 2019, EPA announced a decision to with-
draw California’s waiver of preemption under the
Clean Air Act. In this decision, the EPA also affirmed
the NHTSA’s authority to set nationally applicable
regulatory standards under the preemption pro-
visions of the Energy Policy and Conservation Act
(EPCA). On March 9, 2022, the EPA rescinded its with-
drawal of the waiver for California’s light-duty vehi-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
25
BOARD REPORT
cle GHG and zero emission vehicle (ZEV) standards.
California and Section 177 states may again enforce
those standards. Subsequently, CARB clarified that
the compliance with CARB’s GHG regulations is
expected from model year 2021 for all manufactur-
ers. Ferrari meets the requirements to be classified
as an SVM based on the relevant regulations in the
state of California. Therefore, in 2023, in agreement
with CARB, Ferrari petitioned for SVM 2021-2025
alternative standards. In July 2024, we received offi-
cial approval from CARB. It may be necessary also
to increase the number of tests to be performed in
order to follow the CARB specific procedures.
In relation to the safety legislation framework,
in 2024, NHTSA published a new regulation on
Automatic Emergency Braking Systems, requir-
ing vehicles to be equipped with systems that alert
drivers of imminent collisions and automatically
apply brakes if necessary. Additionally, NHTSA pub-
lished an advanced notice of proposed rulemaking
as a first regulatory step to introduce a new Federal
Motor Vehicle Safety Standards (“FMVSS”) regula-
tion providing requirements for pedestrian protec-
tion. These regulatory updates will likely introduce
US-specific requirements, compelling manufactur-
ers to develop tailored design solutions. The costs
of compliance associated with these and similar
rulemaking may be substantial.
Other governments around the world, such as
those in Canada, South Korea, China and certain
Middle Eastern countries, are also creating new pol-
icies to address these issues which could be even
more stringent than the U.S. or European require-
ments. As in the United States and Europe, these
government policies if applied to us could signifi-
cantly affect our product development plans. Under
these existing regulations, as well as new or stricter
rules or policies, we could be subject to sizable civil
penalties or have to restrict or modify product
offerings drastically to remain in compliance. We
may have to incur substantial capital expenditures
and research and development expenditures to
upgrade products and manufacturing facilities,
which would have an impact on our cost of produc-
tion and results of operations.
In the future, the advent of self-driving technol-
ogy may result in regulatory changes that we cannot
predict but may include limitations or bans on human
driving in specific areas. In 2020 the European
Commission issued its new digital strategy policies
and in 2022 its new digital strategy, which represent
a priority in the European Commission’s regulatory
agenda. Although no regulations have been issued in
this regard, the European Commission has showed
a determination to strengthen Europe’s digital sov-
ereignty and role as a standard setter, with a clear
focus on data, technology, and infrastructure.
In June 2024, the European Union adopted the
Artificial Intelligence Act (“AI Act”), setting harmo-
nized rules for trustworthy AI development and
use across the EU. This legislation could be particu-
larly relevant to the automotive sector, influencing
the development of self-driving technologies and
advanced driver-assistance systems. .
Similarly, driving bans on combustion engine
vehicles could be imposed, particularly in metro-
26
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
politan areas, as a result of progress in electric and
hybrid technology. Several other regulations are
also emerging to take into account the non-exhaust
emissions such as brakes and tires particulate emis-
sions and the environmental impact of the electric
and hybrid vehicles components, with a particular
focus on batteries and waste batteries.
In July 2024, the European Union adopted the
Ecodesign for Sustainable Products Regulation
(“ESPR”) setting new standards for product sus-
tainability, ensuring that products sold in the EU are
designed with environmental considerations. While
Ferrari already aims to design cars with durability,
recyclability, and energy efficiency, this regulation
will introduce additional requirements, including
the implementation of enhanced transparency mea-
sures (e.g., a digital product passport).
In the evolving regulatory landscape, we antic-
ipate new regulations restricting or banning the
use of materials critical to our production. The EU is
expanding its regulatory framework for chemicals
as part of its zero-pollution goal under the European
Green Deal. This includes new rules to enhance the
circularity of the automotive sector and extend
manufacturers’ responsibility for end-of-life vehi-
cle management. Such regulatory shifts may sig-
nificantly impact material choices in our business,
necessitating substantial R&D efforts. We expect
these changes to lead to significantly increased
costs and potential adjustments to our supply chain.
Furthermore, we are observing a general fragmen-
tation of requirements both globally and within mar-
kets (e.g., individual states in the United States), which
could further complicate operational efficiency.
To comply with current and future environmen-
tal rules in all markets in which we sell our cars,
we may have to incur substantial capital expendi-
ture and research and development expenditure
to upgrade products and manufacturing facilities,
which would have an impact on our cost of produc-
tion and results of operations.
For a description of the regulations referred to
in the paragraphs above please see “Overview of
Our Business—Regulatory Matters”.
WE DEPEND ON OUR SUPPLIERS, MANY
OF WHICH ARE SINGLE SOURCE SUPPLIERS;
AND IF THESE SUPPLIERS FAIL TO DELIVER
NECESSARY RAW MATERIALS, COMPONENTS,
PARTS, SYSTEMS, SERVICES OR INFRASTRUCTURE
OF APPROPRIATE QUALITY IN A TIMELY MANNER,
OUR OPERATIONS MAY BE DISRUPTED.
Our business depends on a significant number of
suppliers that provide the raw materials, compo-
nents, parts, systems, services and infrastructure
we require to manufacture cars and parts and to op-
erate our business, and some of these suppliers may
face financial difficulties as a result of the ongoing
transformation and challenges in the global automo-
tive industry. We use a variety of raw materials in our
business, including aluminum, and precious metals
such as palladium and rhodium. We source materi-
als from a limited number of suppliers. We cannot
guarantee that we will be able to maintain access to
these raw materials, and in some cases this access
may be affected by factors outside of our control
and the control of our suppliers. In addition, prices
for these raw materials fluctuate and while we seek
to manage this exposure, we may not be successful
in mitigating these risks.
As with raw materials, we are also at risk of supply
disruption and shortages in parts and components
we purchase for use in our cars. We source a vari-
ety of key components from third parties, including
transmissions, brakes, driving-safety systems, navi-
gation systems, mechanical, electrical and electronic
parts, plastic components as well as castings and
tires, which makes us dependent upon the suppliers
of such components. In coming years, we will also
require a greater number of components for hybrid
and electric engines as we continue to deploy hybrid
and electric technology in our cars, and we expect
producers of these components will be called upon
to increase the levels of supply as the shift to hybrid
or electric technology gathers pace in the industry.
While we obtain components from multiple sources
whenever possible, similar to other small volume car
manufacturers, most of the key components we use
in our cars are purchased by us from single source
suppliers. We generally do not qualify alternative
sources for most of the single-sourced components
we use in our cars and we do not maintain long-
term agreements with a number of our suppliers.
Furthermore, we have limited ability to monitor the
financial stability of our suppliers.
While we believe that we may be able to estab-
lish alternate supply relationships and can obtain
or engineer replacement components for our sin-
gle-sourced components, we may be unable to do
so in the short term, or at all, at prices or costs that
we believe are reasonable. Qualifying alternate sup-
pliers or developing our own replacements for cer-
tain highly customized components of our cars may
be time consuming, costly and may force us to make
costly modifications to the designs of our cars.
Moreover, as the lifecycle of several compo-
nents becomes shorter in light of the technological
shift affecting the industry, a number of the com-
ponents we use in our production processes may
become in the near term obsolete, which will require
us to implement new procurement strategies. Those
strategies may not be successful and we may not be
able to source new components in a timely manner
or at competitive prices, and our results of opera-
tions may be adversely affected.
In the past, we have replaced certain suppliers
because they failed to provide components that met
our quality control standards. The loss of any single
or limited source supplier or the disruption in the
supply of components from these suppliers could
lead to delays in car deliveries to our clients, which
could adversely affect our relationships with our
clients and also materially and adversely affect our
28
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
operating results and financial condition. The supply
of raw materials, parts and components may also
be disrupted or interrupted by natural disasters, or
by unexpected fluctuations in market demand and
supply, such as the global shortage of semiconduc-
tors that impacted the automotive industry in par-
ticular, lastly in 2021. If any major disasters occur,
such as earthquakes, fires, floods, hurricanes, wars,
terrorist attacks, pandemics or other events, our
supply chain may be disrupted, which may stop or
delay production and shipment of our cars. The
ongoing conflict between Russia and Ukraine, the
recognition by Russia of the independence of the
self-proclaimed republics of Donetsk and Luhansk,
in the Donbas region of Ukraine and the resulting
geopolitical tensions have had a significant impact
on the global economy in recent periods resulting in
a sharp increase in energy prices and higher prices
for certain raw materials and goods and services,
which in turn contributed to higher inflation globally.
The conflict continues and the timing of any resolu-
tion is highly uncertain. Many governments around
the world, including those of the United States, the
European Union and Japan, have imposed sanctions
on certain industry sectors and parties in Russia
and the regions of Donetsk and Luhansk, as well as
enhanced export controls on certain industries and
products, including luxury goods, and the exclu-
sion of certain Russian financial institutions from
the SWIFT system. These and any additional sanc-
tions and export controls, as well as any counter-
responses by the governments of Russia or other
jurisdictions, could adversely affect, directly or indi-
rectly, our supply chain, with negative implications
on the availability and prices of raw materials, and
our customers, as well as the global financial mar-
kets and financial services industry. See also “We
are subject to risks related to epidemics, pandemics
or other public health crises that may materially and
adversely affect our business” for a discussion of
widespread public health crises which may affect
our supply chain directly or indirectly.
Changes in our supply chain have in the past
resulted and may in the future result in increased
costs and delays in car production. We have also
experienced cost increases from certain suppli-
ers in order to meet our quality targets and devel-
opment timelines and because of design changes
that we have made, and we may experience similar
cost increases in the future. We are negotiating with
existing suppliers for cost reductions, seeking new
and less expensive suppliers for certain parts, and
attempting to redesign certain parts to make them
less expensive to produce. If we are unsuccessful
in our efforts to control and reduce supplier costs
while maintaining a stable source of high-quality sup-
plies, our operating results will suffer. Additionally,
cost reduction efforts may disrupt our normal pro-
duction processes, thereby harming the quality or
volume of our production.
Furthermore, if our suppliers fail to provide
components in a timely manner or at the level of
quality necessary to manufacture our cars, our cli-
ents may face longer waiting periods which could
result in negative publicity, harm our reputation
and relationship with clients and have a material
adverse effect on our business, operating results
and financial condition.
OUR LOW VOLUME STRATEGY MAY LIMIT
POTENTIAL PROFITS, AND IF VOLUMES INCREASE
OUR BRAND EXCLUSIVITY MAY BE ERODED.
A key to the appeal of the Ferrari brand and our mar-
keting strategy is the aura of exclusivity and the sense
of luxury which our brand conveys. A central facet to
this exclusivity is the limited number of models and
cars we produce and our strategy of maintaining
our car waiting lists to reach the optimal combina-
tion of exclusivity and client service. Our low volume
strategy is also an important factor in the prices that
our clients are willing to pay for our cars. This focus
on maintaining exclusivity limits our potential sales
growth and profits compared to manufacturers
less reliant on the exclusivity of their products.
On the other hand, our current growth strategy
contemplates a measured increase in shipments
above current levels as we target a larger customer
base and modes of use, we increase our focus on
reaching a younger customer base and creating
new Ferrari collectors, and our product portfo-
lio evolves with a broader product range. We sold
13,752, 13,663 and 13,221 cars in 2024, 2023 and
2022, respectively, compared to 7,255 cars in 2014,
the year before our initial public offering, and sales
are expected to continue to increase gradually in line
with our low volume strategy.
In pursuit of our strategy, we may be unable
to maintain the exclusivity of the Ferrari brand. If
we are unable to balance brand exclusivity with
increased production, we may erode the desirabil-
ity and ultimately the consumer demand or relative
pricing for our cars. As a result, if we are unable to
increase car production meaningfully or introduce
new car models without eroding the image of exclu-
sivity in our brand we may be unable to significantly
increase our revenues.
THE SMALL NUMBER OF CAR MODELS WE
PRODUCE AND SELL MAY RESULT IN GREATER
VOLATILITY IN OUR FINANCIAL RESULTS.
We depend on the sales of a small number of car
models to generate our revenues. Our current prod-
uct portfolio consists of seven Range models, three
Special Series models, one strictly limited edition
Icona model and our latest Supercar. Despite our
expanded offering, a limited number of models will
continue to account for a large portion of our rev-
enues at any given time in the foreseeable future,
compared to other automakers. Therefore, a single
unsuccessful new model would harm us more than
it would other automakers. There can be no assur-
ance that our cars will continue to be successful in
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
29
BOARD REPORT
the market, or that we will be able to launch new mod-
els on a timely basis compared to our competitors.
It generally takes several years from the beginning
of the development phase to the start of production
for a new model and the car development process
is capital intensive. As a result, we would likely be un-
able to replace quickly the revenue lost from one of
our main car models if it does not achieve market
acceptance. Furthermore, our revenues and prof-
its may also be affected by our Special Series and
limited edition models (including the Icona limited
editions and supercars) that we launch from time to
time and which are typically priced higher than our
range models. There can be no assurance that we
will be successful in developing, producing and mar-
keting additional new cars (including our Special
Series and limited edition models) to sustain sales
growth in the future.
OUR CONTROLLED GROWTH
STRATEGY EXPOSES US TO RISKS.
Our growth strategy includes a controlled expansion
of our sales and operations, including the launch-
ing of new car models and expanding sales, as well
as dealer operations and workshops, in targeted
growth regions internationally. In particular, our
growth strategy includes the opportunity for us to
expand operations in regions and markets that we
have identified as having relatively high growth po-
tential. We may encounter difficulties in entering and
establishing ourselves in these markets, including
in establishing new successful dealership networks
and facing more significant competition from com-
petitors that are already present in those regions.
Our growth depends on the continued suc-
cess of our existing cars, as well as the successful
introduction of new cars. Our ability to create new
cars and to sustain existing car models is affected
by whether we can successfully anticipate and
respond to consumer preferences and car trends.
The failure to develop successful new cars or delays
in their launch that could result in others bringing
new products and leading-edge technologies to
the market first, could compromise our competi-
tive position and hinder the growth of our business.
As part of our growth strategy, we broadened the
range of our models to capture additional customer
demand for different types of vehicles and modes
of utilization. Since the start of 2023 we launched 8
new models. In addition, we are gradually but rapidly
expanding the use of hybrid and electric technol-
ogy in our road cars as we broaden and expand our
product portfolio. In 2024, hybrid-engine cars rep-
resented 51.3 percent of our shipments, represent-
ing the majority of our shipments for the first time.
While we will seek to ensure that these changes
remain fully consistent with the Ferrari car identity,
we cannot be certain that they will prove profitable
and commercially successful.
Our controlled growth strategy may expose us to
new business risks that we may not have the ex-
pertise, capability or the systems to manage. This
strategy will also place significant demands on us
by requiring us to continuously evolve and improve
our operational, financial and internal controls.
Continued expansion also increases the challenges
involved in maintaining high levels of quality, manage-
ment and client satisfaction, recruiting, training and
retaining sufficiently skilled management, technical
and marketing personnel. If we are unable to man-
age these risks or meet these demands, our growth
prospects and our business, results of operations
and financial condition could be adversely affected.
We continuously improve our international net-
work footprint and skill set. We also plan to open
additional retail stores in international markets for
our lifestyle activities. We do not yet have signifi-
cant experience directly operating in many of these
markets, and in many of them we face established
competitors. Many of these countries have different
operational characteristics, including but not limited
to employment and labor, transportation, logistics,
real estate, environmental regulations and local
reporting or legal requirements.
Consumer demand and behavior, as well as
tastes and purchasing trends may differ in these
markets, and as a result, sales of our products may
not be successful, or the margins on those sales
may not be in line with those we currently anticipate.
Furthermore, such markets will have upfront short-
term investment costs that may not be accompa-
nied by sufficient revenues to achieve typical or
expected operational and financial performance
and therefore may be dilutive to us in the short-
term. In many of these countries, there is significant
competition to attract and retain experienced and
talented employees.
Consequently, if our international expansion
plans are unsuccessful, our business, results of
operations and financial condition could be materi-
ally adversely affected.
GLOBAL ECONOMIC CONDITIONS AND MACRO
EVENTS, AS WELL AS TRADING POLICIES AND
TARIFFS, MAY ADVERSELY AFFECT US.
Our sales volumes and revenues may be affect-
ed by overall general economic conditions with-
in the various countries in which we operate.
Deteriorating general economic conditions may
affect disposable incomes and reduce consumer
wealth impacting client demand, particularly for
luxury goods, which may negatively impact our
profitability and put downward pressure on our
prices and volumes. Furthermore, during reces-
sionary periods, social acceptability of luxury pur-
chases may decrease and higher taxes may be
more likely to be imposed on certain luxury goods
including our cars, which may affect our sales.
Adverse economic conditions may also affect the
financial health and performance of our dealers in
a manner that will affect sales of our cars or their
ability to meet their commitments to us.
30
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The luxury performance car market is generally
affected by global macroeconomic conditions and
many factors affect the level of consumer spending
in the luxury performance car industry, including the
state of the economy as a whole, stock market per-
formance, interest and exchange rates, inflation, po-
litical uncertainty, the availability of consumer credit,
tax rates, unemployment levels and other matters
that influence consumer confidence. In general, al-
though our sales have historically been compara-
tively resilient in periods of economic turmoil, sales
of luxury goods tend to decline during recessionary
periods when the level of disposable income tends
to be lower or when consumer confidence is low. In
2024, the global luxury industry experienced a nota-
ble slow down which may continue in 2025. Inflation
recorded in 2023 was more moderate than in 2022,
and inflation levels in 2024 continued to decrease.
If inflation remains elevated or increases in the fu-
ture we could face further increases in the costs we
incur for raw materials, utilities or services, which
could adversely affect our business and results
of operations if we are not able to pass on the in-
creased costs to our customers or successfully im-
plement other mitigating actions. Following the rise
in inflation, several main central banks raised inter-
est rates rapidly over the course of 2022 and part of
2023. While certain central banks now appear to fol-
low a softer monetary stance, a higher cost of bor-
rowing compared to recent historical periods may
persist in the market. Such increases could impact
our ability to obtain affordable financing or could
make our cars less affordable to clients, which could
cause consumers to delay the purchase of our cars
or to purchase less expensive cars.
We distribute our products internationally and
we may be affected by downturns in general eco-
nomic conditions or uncertainties regarding future
economic prospects that may impact the countries
in which we sell a significant portion of our prod-
ucts. In particular, the majority of our current sales
are in Europe and in the United States; if we are
unable to expand in other growth markets, a down-
turn in mature economies such as Europe and the
United States may negatively affect our financial
performance. In addition, uncertainties regarding
future trade arrangements and industrial policies
in various countries or regions create additional
macroeconomic risk. In the United States, any pol-
icy to discourage imports into the United States
of vehicles produced elsewhere could adversely
affect our operations and the U.S. administration
has announced its intention to conduct systematic
reviews of existing tariffs and other trade mea-
sures and, in February 2025, has issued proclama-
tions directing the U.S. Secretary of Commerce to
broadly adjust tariffs on certain raw materials and
imported goods, including cars. In 2024, the United
States represented 25 percent of our shipments
and 29 percent of our revenues from cars and spare
parts. Following 2024 elections in the United States
and Europe, and in view of upcoming global elec-
tions, there is heightened uncertainty regarding the
potential imposition of tariffs and other trade barri-
ers or protectionist industrial policies; such uncer-
tainty may, in turn, negatively impact global trade and
macroeconomic conditions and increase costs for
producers and consumers. Governments may turn
to trade barriers to protect their domestic indus-
tries against foreign imports, retaliate against pro-
tective trade measures imposed by other countries,
or manage economic conditions such as currency
deflation. It is unknown whether and to what extent
other new tariffs (or other new laws or regulations)
will be adopted, or the effect that any such actions
would have on us, our business, financial condition
and results of operations, as well as on our industry,
or on the purchase ability of consumers globally. In
general, the banking, economic and monetary crisis,
as well as the escalating energy prices triggered by
the ongoing conflict between Russia and Ukraine, as
well as conflicts elsewhere in the world (including
the conflict between Israel and Hamas, which has
led to wider conflicts in the Middle East region and
has the potential to escalate further), may reduce
customers’ interest for, and financial ability to buy,
luxury products. Although Mainland China, Hong
Kong and Taiwan only represented 8 percent of our
net revenues in 2024 and is expected to represent a
limited proportion of our growth in the short term,
slowing economic conditions in Mainland China,
Hong Kong and Taiwan may adversely affect our
revenues in that region. A significant decline in the
global economy or in the specific economies of our
markets, or in consumers’ confidence, could have
a material adverse effect on our business. See also
“Developments in growth markets may adversely
affect our business”.
Additionally,
sanctions
and
export
controls
which could be introduced as a result of changes in
governments (such as in the United States), geopo-
litical tensions and conflicts could adversely affect,
directly or indirectly, our supply chain and custom-
ers, as well as the global financial markets and finan-
cial services industry. See also “We depend on our
suppliers, many of which are single source suppliers;
and if these suppliers fail to deliver necessary raw
materials, components, parts, systems, services or
infrastructure of appropriate quality in a timely man-
ner, our operations may be disrupted”.
WE ARE SUBJECT TO RISKS RELATED
TO EPIDEMICS, PANDEMICS OR OTHER PUBLIC
HEALTH CRISES THAT MAY MATERIALLY AND
ADVERSELY AFFECT OUR BUSINESS.
Public health crises such as epidemics, pandemics
or similar outbreaks could adversely impact our
business. For instance, from 2020 to 2022, the global
spread of COVID-19, including variants thereof, led
to governments around the world mandating in-
creasingly restrictive measures to contain the pan-
demic and caused significant disruption to the global
economy, including changes in consumer spending
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
31
BOARD REPORT
and behavior, disruption to supply chains and finan-
cial markets, as well as restrictions on business and
individual activities. This led to a global economic
slowdown and a severe recession in several of the
markets in which we operate, which may reverber-
ate after all restrictions are lifted. Our operations
were also profoundly disrupted, with our produc-
tion suspended at our two plants for several weeks
in 2020, and our suppliers and dealers were similar-
ly affected. Governmental restrictions were lifted
and partly reintroduced reflecting developments in
the pandemic. Future pandemics may have similar,
or worse, impacts on our operations.
Furthermore, pandemics or other widespread
public health crises may lead to financial distress for
our suppliers or dealers, as a result of which they
may have to permanently discontinue or substan-
tially reduce their operations.
Any of the foregoing could limit customer
demand or our capacity to meet customer demand
and have a material adverse effect on our business,
results of operations and financial condition.
Pandemics or other widespread public health
crises may also exacerbate other risks disclosed in
this section, including, but not limited to, our com-
petitiveness, demand for our products, shifting
consumer preferences, exchange rate fluctuations,
customers’ and dealers’ access to affordable financ-
ing, and credit market conditions affecting the avail-
ability of capital and financial resources.
WE FACE COMPETITION IN THE LUXURY
PERFORMANCE CAR INDUSTRY.
We face competition in all product categories and
markets in which we operate. We compete with oth-
er international luxury performance car manufac-
turers which own and operate well-known brands of
high-quality cars, some of which form part of larger
automotive groups and may have greater financial
resources and bargaining power with suppliers than
we do, particularly in light of our policy to maintain
low volumes in order to preserve and enhance the
exclusivity of our cars. In addition, several other man-
ufacturers have recently entered or are attempting
to enter the upper end of the luxury performance
car market, including with advanced electric tech-
nology, thereby increasing competition. We believe
that we compete primarily on the basis of our brand
image, the performance and design of our cars, our
reputation for quality and the driving experience for
our customers. If we are unable to compete success-
fully, our business, results of operations and financial
condition could be adversely affected.
OUR BUSINESS IS SUBJECT TO CHANGES
IN CLIENT PREFERENCES AND TRENDS IN THE
AUTOMOTIVE AND LUXURY INDUSTRIES.
Our continued success depends in part on our abili-
ty to originate and define products and trends in the
automotive and luxury industries, as well as to antic-
ipate and respond promptly to changing consum-
er demands and automotive trends in the design,
styling, technology, production, merchandising and
pricing of our products. Our products must appeal
to a client base whose preferences cannot be pre-
dicted with certainty and are subject to rapid change.
Evaluating and responding to client preferences has
become even more complex in recent years, due to
our expansion in new geographical markets. The in-
troduction of hybrid and electric technology and the
associated changes in customer preferences that
may follow are also a challenge we will face in future
periods. See also “If we are unable to keep up with
advances in high performance car technology, our
brand and competitive position may suffer” and “The
introduction of electric technology in our cars is cost-
ly and its long-term success is uncertain”. In addition,
there can be no assurance that we will be able to pro-
duce, distribute and market new products efficiently
or that any product category that we may expand or
introduce will achieve sales levels sufficient to gen-
erate profits. Furthermore, this risk is particularly
pronounced as we expand in accordance with our
strategy into adjacent segments of the luxury indus-
try, where we do not have a level of experience and
market presence comparable to the one we have
in the automotive industry. Any of these risks could
have a material adverse effect on our business, re-
sults of operations and financial condition.
DEMAND FOR LUXURY GOODS, INCLUDING LUXURY
PERFORMANCE CARS, IS VOLATILE, WHICH MAY
ADVERSELY AFFECT OUR OPERATING RESULTS.
Volatility of demand for luxury goods, in particular
luxury performance cars, may adversely affect our
business, operating results and financial condition.
The market in which we sell our cars is subject to
volatility in demand. Demand for luxury automobiles
depends to a large extent on general, economic, po-
litical and social conditions in a given market as well
as the introduction of new vehicles and technologies.
Global economic growth slowed sharply in 2022, sta-
bilized in 2023 and 2024, and the outlook for 2025 is
uncertain. Global demand for luxury good decreased
in 2024. As a luxury performance car manufacturer
and low volume producer, we compete with larg-
er automobile manufacturers many of which have
greater financial resources in order to withstand
changes in the market and disruptions in demand.
Demand for our cars may also be affected by fac-
tors directly impacting the cost of purchasing and
operating automobiles, such as the availability and
cost of financing, prices of raw materials and parts
and components, fuel costs and governmental reg-
ulations, including tariffs, import regulation and oth-
er taxes, including taxes on luxury goods, resulting
in limitations to the use of high performance sports
cars or luxury goods more generally. Volatility in de-
mand may lead to lower car unit sales, which may
result in downward price pressure and adversely
affect our business, operating results and financial
32
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
condition. The impact of a luxury market downturn
may be particularly pronounced for the most expen-
sive among our car models, which generate a more
than proportionate amount of our profits, therefore
exacerbating the impact on our results. In addition,
these effects may have a more pronounced impact
on us given our low volume strategy and relatively
smaller scale as compared to large global mass-mar-
ket automobile manufacturers.
THE DEMAND FOR OUR CARS AND THE VALUE OF
OUR BRAND DEPEND IN PART ON THE VALUE OF
OUR VEHICLES OVER TIME AND THE AUTOMOBILE
COLLECTOR AND ENTHUSIAST COMMUNITY.
An important factor in the connection of clients to
the Ferrari brand is our strong relationship with the
global community of automotive collectors and en-
thusiasts, particularly collectors and enthusiasts of
Ferrari automobiles. This is influenced by our close
ties to the automotive collectors’ community and
our support of related events such as car shows
and driving events, including those held at our head-
quarters in Maranello and through our dealers, as
well as our Ferrari museums and our affiliations
with regional Ferrari clubs. The support of this com-
munity also depends upon the perception of our
cars as collectibles, which we also support through
our Ferrari Classiche services, and the profitable
resale market for our automobiles which encourag-
es interest over the long-term. The increase in the
number of cars we produce relative to the number
of automotive collectors and purchasers in the sec-
ondary market may adversely affect the value of our
cars as collectible items and their value in the sec-
ondary market more broadly. Additionally, the shift
to hybrid and electric engine models may impact the
residual value of our cars if secondary purchases
occur at higher discounts compared to our ICE mod-
els historically. The recent trend of our customers
to increase the personalization content of our new
vehicles may also adversely affect their residual val-
ue, because personalized content depreciates sub-
stantially with change of ownership. Furthermore,
our focus on continuously integrating advanced
technologies into our cars may increase their risk of
obsolescence, both of which could adversely impact
the demand for our cars and our brand image.
If there is a change in collector appetite or dam-
age to the Ferrari brand, our ties to, and the support
we receive from, this community may be diminished.
Such a loss of enthusiasm for our cars from the
automotive collectors’ community could adversely
impact our sales and profitability and harm the per-
ception of the Ferrari brand.
WE DEPEND ON OUR MANUFACTURING
FACILITIES IN MARANELLO AND MODENA.
We assemble all of the cars that we sell and manu-
facture, and all of the engines we use in our cars, at
our production facility in Maranello, Italy, where we
also have our corporate headquarters. We manu-
facture all of our car chassis in a nearby facility in
Modena, Italy. Our Maranello or Modena plants could
become unavailable either permanently or tempo-
rarily for a number of reasons, including contamina-
tion, power shortage or labor unrest. Alternatively,
changes in law and regulation, including export, tax
and employment laws and regulations, or econom-
ic conditions, including wage inflation, could make
it uneconomic for us to continue manufacturing
our cars in Italy. In the event that we were unable to
continue production at either of these facilities or it
became uneconomic for us to continue to do so, we
would need to seek alternative manufacturing ar-
rangements which would take time and reduce our
ability to produce sufficient cars to meet demand.
Moving manufacturing to other locations may also
affect the perception of our brand and car quality
among our clients. Such a transfer would materially
reduce our revenues and could require significant
investment, which as a result could have a material
adverse effect on our business, results of opera-
tions and financial condition.
Maranello and Modena are located in the Emilia-
Romagna region of Italy which has the potential for
seismic activity. For instance, in 2012 a major earth-
quake struck the region, causing production at our
facilities to be temporarily suspended for one day. If
major disasters such as earthquakes, fires, floods,
hurricanes, wars, terrorist attacks, pandemics or
other events occur, our headquarters and produc-
tion facilities may be seriously damaged, or we may
stop or delay production and shipment of our cars.
Such damage from disasters or unpredictable events
could have a material adverse impact on our busi-
ness, results from operations and financial condition.
WE ARE SUBJECT TO RISKS ASSOCIATED
WITH CLIMATE CHANGE AND OTHER
ENVIRONMENTAL IMPACTS, AS WELL AS AN
INCREASED FOCUS OF REGULATORS AND
STAKEHOLDERS ON ENVIRONMENTAL MATTERS.
Global climate change is resulting, and is expected to
continue to result, in natural disasters and extreme
weather, such as drought, wildfires, storms, sea-lev-
el rise, flooding, heat waves and cold waves, occur-
ring more frequently or with greater intensity. Such
extreme events are driving changes in market dy-
namics, stakeholder expectations, local, national and
international climate change policies and regulations.
We are subject to climate-related risks where we
conduct our business. Physical impacts of climate
change, including natural disasters and adverse
weather, could result in disruptions to us, our sup-
pliers, vendors, customers and logistics hubs. These
risks may also exacerbate other risks disclosed in this
“Risk Factors” section, including but not limited to, our
competitiveness, demand for our products, shift-
ing consumer preferences, availability and price of
raw materials, and concentration of our production
activities in Maranello and Modena.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
33
BOARD REPORT
The global automotive industry in particular is cur-
rently experiencing significant developments due
to an increased focus on climate change and evolv-
ing regulatory requirements relating to fuel effi-
ciency, electrification and greenhouse gas emis-
sions, among others. These evolving requirements
and technological changes have caused us, and
are expected to continue to cause us, to adapt and
change certain aspects of our operations, our fu-
ture plans and strategies and the allocation of our
resources. Failure to effectively manage these as-
pects may result in increased costs, reputational
risks, limits in our ability to manufacture or market
certain of our products, or otherwise negatively im-
pact our business, results of operations, profitabili-
ty and competitive position.
We have implemented many initiatives con-
nected to our manufacturing and operating pro-
cesses, including our facilities, covering Scope 1
and Scope 2 emissions. Scope 3 Cradle to Gate
emissions (indirect upstream GHG emissions) con-
sist mainly of raw materials, manufacturing equip-
ment for road cars and inbound logistics thus the
leverage to reduce emissions are mainly managed
by our supply chain. If the measures we have put
in place are less successful than expected, or if we
are unable to assist our current and future business
partners in reducing their carbon footprint or to
identify and select lower carbon intensive suppliers,
we could be unable to meet the expectations of dif-
ferent stakeholders in terms of reductions of our
carbon footprint with the potential for adverse rep-
utational impacts.
Additionally, our stakeholders, including our cus-
tomers, employees, suppliers and investors, are
increasingly focused on environment, social and
governance (“ESG”) matters. From time to time, in
alignment with our sustainability strategy, we estab-
lish and publicly announce goals and ambitions to
improve our environmental performance and we
have been taking deliberate actions aimed at achiev-
ing carbon neutrality by 2030. There can be no assur-
ance that our stakeholders will agree with our sus-
tainability strategy or will be satisfied with our actions
in relation to these matters. Additionally, if we fail (or
are perceived to fail) to execute our sustainability
strategy or achieve our environmental goals, if our
sustainability strategy or environmental goals do not
meet the expectations and standards of our stake-
holders, or if we improperly report our progress in
the execution of our sustainability strategy or the
achievement of our environmental goals, our reputa-
tion could be negatively impacted, causing our cus-
tomers, employees, suppliers and investors to lose
confidence in us and our brand, which could nega-
tively impact our business, access to capital or have
an adverse effect on our revenues and profitability.
A DISRUPTION IN OUR INFORMATION TECHNOLOGY,
INCLUDING AS A RESULT OF CYBERCRIMES,
COULD COMPROMISE CONFIDENTIAL,
PROPRIETARY AND SENSITIVE INFORMATION.
We depend on our information technology and data
processing systems to operate our business, and
a significant malfunction or disruption in the oper-
ation of our systems, human error, interruption to
power supply, or a security breach that compromis-
es the confidential and sensitive information stored
in those systems, could disrupt our business and ad-
versely impact our ability to compete. A leak of pro-
prietary technical information relating to our cars
and our production processes, for example, could
cause significant competitive harm. Our ability to
keep our business operating effectively depends
on the functional and efficient operation by us and
our third party service providers of our information,
data processing and telecommunications systems,
including our car design, manufacturing, inventory
tracking and billing and payment systems. We rely
on these systems to enable a number of business
processes and help us make a variety of day-to-day
business decisions as well as to track transactions,
billings, payments and inventory. Such systems are
susceptible to malfunctions and interruptions due to
equipment damage, power outages, and a range of
other hardware, software and network problems.
Those systems are also susceptible to cybercrime,
or threats of intentional disruption, which are in-
creasing in terms of sophistication and frequency,
especially considering that such cyber incidents
may remain undetected for long periods of time.
For example, in March 2023 we were the subject of
a ransomware attack. Ferrari decided not to pay the
ransomware, and rejection of the ransom request
led to the leak of a significant amount of customers’
personal identifiable information and we were pro-
vided evidence of such leak with respect to several
hundred customers. We notified our customers of
the potential data exposure and the nature of the in-
cident and we have worked with third party experts
to further reinforce our systems. Future breaches
may adversely affect our operations and reputation.
Additionally, a significant portion of our office
personnel moved to a “remote work” model in
response to the COVID-19 pandemic and part-time
remote work arrangements are currently in place
for our personnel. Remote work relies heavily on the
use of remote networking and online conferencing
services, which expose us to additional cybersecu-
rity risks. For any of these reasons, we may experi-
ence system malfunctions or interruptions.
Although our systems are diversified, including
multiple server locations, several layers of cyber-
security countermeasures and controls, a range
of software applications for different regions and
functions, and we periodically assess and imple-
ment actions to reduce risks to our systems and
disruptions to our information technology systems
and business continuity, a significant or large scale
34
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
malfunction or interruption of our systems could
adversely affect our ability to manage and keep our
operations running efficiently, and damage our rep-
utation if we are unable to track transactions and
deliver products to our dealers and clients. A mal-
function that results in a wider or sustained disrup-
tion to our business could have a material adverse
effect on our business, results of operations and
financial condition. In addition to supporting our
operations, we use our systems to collect and store
confidential and sensitive data, including information
about our business, our clients and our employees.
As our technology continues to evolve, we antic-
ipate that we will collect and store even more data in
the future, and that our systems will increasingly use
remote communication features that are sensitive to
both willful and unintentional security breaches. Much
of our value is derived from our confidential busi-
ness information, including car design, proprietary
technology and trade secrets, and to the extent the
confidentiality of such information is compromised,
we may lose our competitive advantage and our car
sales may suffer. We also collect, retain and use cer-
tain personal information, including data we gather
from clients for product development and market-
ing purposes, and data we obtain from employees.
Therefore, we are subject to a variety of ever-chang-
ing data protection and privacy laws on a global basis,
including the EU General Data Protection Regulation.
We expect that future generations of cars will
feature an increasing degree of connectivity for
purposes of infotainment, safety and regulatory
compliance, and the increased demand for a “con-
nected car” has led to increased digitization of car
systems, the wide application of software, and the
creation of new, fully digital mobility services. This
technology is capable of transmitting and storing an
increasing amount of personal information belong-
ing to our customers. These new features may
increase the cyber security risk of our cars. Any
unauthorized access to in-vehicle information tech-
nology systems may compromise the car security
or the privacy of our customers’ information and
expose us to claims as well as reputational damage.
In addition, third parties with which we contract
could also be subject to external cyber-attacks.
Should the third party be connected to our system,
the cyber attacker could potentially penetrate our
information technology systems. Although we pri-
oritize cybersecurity on all of our cars and when
processing personal data, any significant compro-
mise in the integrity of our data security could have
a material adverse effect on our business.
Cybersecurity is the object of increasing regu-
latory updates and we will be required to keep our
internal systems updated to comply with the new
rules that may come into force. For instance, pursu-
ant to the UN-ECE regulations, we will be required
to maintain over time, and to periodically renew, the
Cyber Security Management System (“CSMS”) to
register and sell our cars, as well as to demonstrate
that we are able to deal with, and aware of, potential
cyber risks, both for our cars and for our enterprise.
Failure to maintain the Cyber Security Management
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
35
BOARD REPORT
System Certification could result, for the countries
where the regulations are applicable, in impossibility
to homologate and sell new vehicles.
OUR SUCCESS DEPENDS LARGELY ON THE
ABILITY OF OUR CURRENT MANAGEMENT TEAM
TO OPERATE AND MANAGE EFFECTIVELY.
Our success depends on the ability of our senior
executives and other members of management to
effectively manage our business as a whole and in-
dividual areas of the business. Most of our senior
executives and employees, including many highly
skilled engineers, technicians and artisans, are re-
quired to work from our offices and production fa-
cilities in and around Maranello, Italy. If we were to
lose the services of any of these senior executives
or key employees, this could have a material adverse
effect on our business, operating results and finan-
cial condition. We have developed incentive plans
aimed at retaining and incentivizing our senior exec-
utives and employees, as well as management suc-
cession plans that we believe are appropriate in the
circumstances, although it is difficult to predict with
any certainty that we will replace these individuals
with persons of equivalent experience and capabil-
ities. If we are unable to find adequate replacements
or to attract, retain and incentivize senior execu-
tives, other key employees or new qualified person-
nel, our business, results of operations and financial
condition may suffer.
WE RELY ON OUR DEALER NETWORK
TO PROVIDE SALES AND SERVICES.
We do not own our Ferrari dealers and virtually all
of our sales are made through our network of deal-
erships located throughout the world. If our dealers
are unable to provide sales or service quality that
our clients expect or do not otherwise adequately
project the Ferrari image and its aura of luxury and
exclusivity, the Ferrari brand may be negatively af-
fected. We depend on the quality of our dealership
network and our business, operating results and fi-
nancial condition could be adversely affected if our
dealers suffer financial difficulties or otherwise are
unable to perform to our expectations. Furthermore,
we may experience disagreements or disputes in
the course of our relationship with our dealers or
upon termination which may lead to financial costs,
disruptions and reputational harm.
Our growth strategy also depends on our ability to
attract quality new dealers to sell our products in
new areas. We may face competition from other lux-
ury performance car manufacturers in attracting
quality new dealers, based on, among other things,
dealer margin, incentives and the performance of
other dealers in the region. If we are unable to at-
tract new dealers in targeted growth areas, our
prospects could be materially adversely affected. .
Furthermore, the evolution of leading-edge
technology (such as electric technology, connec-
tivity, software, etc.) will require significant and
continuous investments (such as new tools, skills,
knowledge and training) by our dealership network
to manage our new car models, including their new
features and technology. If our dealers are not able
to evolve and adapt their business operations to new
technology requirements, our business, operating
results and financial condition could be adversely
affected, including our clients’ expectations to
receive the highest qualified service.
WE ARE EXPOSED TO RISKS IN CONNECTION
WITH PRODUCT WARRANTIES AS WELL
AS THE PROVISION OF SERVICES.
A number of our contractual and legal requirements
oblige us to provide extensive warranties to our cli-
ents, dealers and national distributors. There is a risk
that, relative to the guarantees and warranties grant-
ed, the calculated product prices and the provisions
for our guarantee and warranty risks have been set
or will in the future be set too low. For example, we
have recently been offering on a voluntary basis war-
ranties on the batteries for our hybrid cars. There is
also a risk that we will be required to extend the guar-
antee or warranty originally granted in certain mar-
kets for legal reasons, or provide services as a cour-
tesy or for reasons of reputation where we are not
legally obliged to do so, and for which we will gener-
ally not be able to recover from suppliers or insurers.
CAR RECALLS MAY BE COSTLY
AND MAY HARM OUR REPUTATION.
We have in the past and we may from time to time
in the future be required to recall our products to
address performance, compliance or safety-re-
lated issues. We may incur costs for these recalls,
including replacement parts and labor to remove
and replace the defective parts. In addition, regula-
tory oversight of recalls, particularly in the vehicle
safety, has increased recently. Any product recalls
can harm our reputation with clients, particularly if
consumers call into question the safety, reliability
or performance of our cars. Any such recalls could
harm our reputation and result in adverse publicity,
lost revenue, delivery delays, product liability claims
and other expenses, and could have a material ad-
verse impact on our business, operating results and
financial condition.
WE MAY BECOME SUBJECT TO PRODUCT
LIABILITY CLAIMS, WHICH COULD HARM OUR
FINANCIAL CONDITION AND LIQUIDITY IF WE
ARE NOT ABLE TO SUCCESSFULLY DEFEND
OR INSURE AGAINST SUCH CLAIMS.
We may become subject to product liability claims,
which could harm our business, operating results
and financial condition. The automobile industry
experiences
significant
product
liability
claims
and we have inherent risk of exposure to claims in
36
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the event our cars do not perform as expected or
malfunction resulting in personal injury or death. A
successful product liability claim against us could
require us to pay a substantial monetary award.
Moreover, a product liability claim could generate
substantial negative publicity about our cars and
business, adversely affecting our reputation and in-
hibiting or preventing commercialization of future
cars, which could have a material adverse effect on
our brand, business, operating results and financial
condition. While we seek to insure against product
liability risks, insurance may be insufficient to pro-
tect against any monetary claims we may face and
will not mitigate any reputational harm. Any lawsuit
seeking significant monetary damages may have a
material adverse effect on our reputation, business
and financial condition. We may not be able to se-
cure additional product liability insurance coverage
on commercially acceptable terms or at reasonable
costs when needed, particularly if we face liability
for our products and are forced to make a claim un-
der such a policy.
OUR REVENUES FROM FORMULA 1 ACTIVITIES MAY
DECLINE AND OUR RELATED EXPENSES MAY GROW.
Revenues from our Formula 1 activities depend prin-
cipally on the income from our sponsorship agree-
ments and on our share of Formula 1 revenues from
broadcasting and other sources. See “Overview of
Our Business—Racing—Formula 1”. If we are unable
to renew our existing sponsorship agreements or if
we enter into new or renewed sponsorship agree-
ments with less favorable terms, our revenues would
decline. In addition, our share of profits related to
Formula 1 activities may decline if either our team’s
performance worsens compared to other compet-
ing teams, or if the overall Formula 1 business suffers,
including potentially as a result of increasing popular-
ity of other racing events. Furthermore, in order to
compete effectively on track we have been investing
significant resources in research and development
and to competitively compensate the best available
drivers and other racing team members. These ex-
penses also vary based on changes in Formula 1
regulations that require modification to our racing
engines and cars. These expenses are expected to
continue, and may grow further, including as a result
of any changes in Formula 1 regulations, which would
negatively affect our results of operations.
Compliance with the FIA Formula One regu-
lations, which are periodically amended by the
Formula One Commission and then approved by the
FIA World Motorsport Council, requires significant
changes to our racing cars, processes and opera-
tions. If we are unable to effectively adapt our cars
to comply with changes in FIA Formula One regula-
tions, our performance in races may suffer. These
changes may result in adverse effects on our reve-
nues and results of operations.
Starting from 2021, new FIA Formula One finan-
cial regulations have been introduced. These pro-
vide for a cap on spending for all chassis costs and
expenses (excluding, among others, the activities
to enable the supply of the current power units,
marketing costs, drivers’ salaries and the top three
personnel at each team) and a similar cap was intro-
duced also for the development of the power units
that will be used in the 2026 season and is applicable
for spending that started in 2023. The budget cap
for the 2024 Formula 1 season was €148 million in
relation to the development and manufacturing of
the racing car chassis and €98.5 million relating to
the power units that will be used in the 2026 sea-
son. The aforementioned budget caps on spending
are defined for each season based on several fac-
tors, including the number of races and inflation.
The budget cap for the 2025 season is currently in
the process of being defined but is expected to be
higher than in 2024. The cap on expenses affects
the amount of resources that we are allowed to allo-
cate to Formula 1 activities, with potential adverse
effects on our team’s performance if we are not
able to optimize such resources. Because Formula 1
is key to our brand marketing, the FIA spending cap
may also adversely affect our ability to support our
brand through renewed racing success.
WE RELY ON OUR LICENSING AND FRANCHISING
PARTNERS TO PRESERVE THE VALUE OF OUR
LICENSES AND THE FAILURE TO MAINTAIN SUCH
PARTNERS COULD HARM OUR BUSINESS.
We currently have multi-year agreements with li-
censing partners for various Ferrari-branded prod-
ucts in the sports, lifestyle and luxury retail seg-
ments. We also have multi-year agreements with
franchising partners for our Ferrari stores and
theme park. In the future, we may enter into addition-
al licensing or franchising arrangements. Many of
the risks associated with our own products, includ-
ing risks relating to the image of the Ferrari brand
and its aura of exclusivity, as well as to the demand
for luxury goods, also apply to our licensed products
and franchised stores. In addition, there are prob-
lems that our licensing or franchising partners may
experience, including risks associated with each li-
censing partner’s ability to obtain capital, manage its
labor relations, maintain relationships with its sup-
pliers, manage its credit and bankruptcy risks, and
maintain client relationships. While we maintain sig-
nificant control over the products produced for us
by our licensing partners and the franchisees run-
ning our Ferrari stores and theme parks, any of the
foregoing risks, or the inability of any of our licensing
or franchising partners to execute on the expected
design and quality of the licensed products, Ferrari
stores and theme park, or otherwise exercise oper-
ational and financial control over its business, may
result in loss of revenue and competitive harm to
our operations in the product categories where we
have entered into such licensing or franchising ar-
rangements. While we select our licensing and fran-
chising partners with care, any negative publicity
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
37
BOARD REPORT
surrounding such partners could have a negative
effect on licensed products, the Ferrari stores and
theme parks or the Ferrari brand. Further, while we
believe that we could replace our existing licens-
ing or franchising partners if required, our inability
to do so for any period of time could materially ad-
versely affect our revenues and harm our business. .
In connection with our new lifestyle strategy, we
continue to streamline our existing arrangements
with licensing partners. This may adversely affect
our results from brand activities, particularly in the
short to medium term while our broader lifestyle
strategy is carried out.
WE DEPEND ON THE STRENGTH OF OUR
TRADEMARKS AND OTHER INTELLECTUAL
PROPERTY RIGHTS.
Given the importance of our brand’s recognition on
our financial performance and strategy, we believe
that our trademarks and other intellectual property
rights are fundamental to our success and market
position. Therefore, our business depends on our
ability to protect and promote our trademarks and
other intellectual property rights. Accordingly, we
devote substantial efforts to the establishment and
protection of our trademarks and other intellectual
property rights such as registered designs and pat-
ents on a worldwide basis. We believe that our trade-
marks and other intellectual property rights are
adequately supported by applications for registra-
tions, existing registrations and other legal protec-
tions in our principal markets. However, we cannot
exclude the possibility that our intellectual property
rights may be challenged by others, or that we may
be unable to register our trademarks or otherwise
adequately protect them in some jurisdictions, espe-
cially 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. If a third party were to register our trade-
marks, or similar trademarks, in a country where we
have not successfully registered such trademarks,
it could create a barrier to our commencing trade
under those marks in that country.
WE MAY FAIL TO ADEQUATELY PROTECT OUR
INTELLECTUAL AND INDUSTRIAL PROPERTY
RIGHTS AGAINST INFRINGEMENT OR
MISAPPROPRIATION BY THIRD PARTIES.
Our success and competitive positioning depend
on, among other factors, our registered intellec-
tual property rights, as well as other industrial or
intellectual property rights, including confiden-
tial know-how, trade secrets, database rights and
copyrights. To protect our intellectual property, we
rely on intellectual property laws, agreements for
the protection of trade secrets, confidentiality and
non-disclosure agreements, and other contractu-
al means. Such measures, however, may be inad-
equate and our intellectual property rights may be
infringed or challenged by third parties, and our
confidential know-how or trade secrets could be
misappropriated or disclosed to the public without
our consent. Consultants, vendors and current and
former employees, for example, could violate their
confidentiality obligations and restrictions on the
use of Ferrari’s intellectual property. Ferrari may
not be able to prevent such infringements, misap-
propriations or disclosures, with potential adverse
effects on our brand, reputation and business.
In particular, our components may be subject to
product piracy, where our components are coun-
terfeited, which may result in reputational risk for
Ferrari. The risks described above arise particu-
larly in our Brand activities (see “Overview of Our
Business—Lifestyle”).
If we fail to adequately protect our intellectual
property rights, this may adversely affect our results
of operations and financial condition, as other manu-
facturers may be able to manufacture similar prod-
ucts at lower cost, with adverse effects on our com-
petitive position. In addition, counterfeited products,
or products illegally branded as “Ferrari”, may dam-
age our brand. In addition, we may incur high costs
in reacting to infringements or misappropriations of
our intellectual property rights.
THIRD PARTIES MAY CLAIM THAT WE INFRINGE
THEIR INTELLECTUAL PROPERTY RIGHTS.
We believe that we hold all the rights required for
our business operations (including intellectual
property rights and third-party licenses). However,
we are exposed to potential claims from third par-
ties alleging that we infringe their intellectual prop-
erty rights, since many competitors and suppliers
also submit patent applications for their inventions
and secure patent protection or other intellectual
property rights. If we are unsuccessful in defend-
ing against any such claim, we may be required
to pay damages or comply with injunctions which
may disrupt our operations. We may also as a re-
sult be forced to enter into royalty or licensing
agreements on unfavorable terms or to redesign
products to comply with third parties’ intellectual
property rights.
WE FACE RISKS ASSOCIATED WITH OUR
INTERNATIONAL OPERATIONS, INCLUDING
UNFAVORABLE REGULATORY, POLITICAL, TAX
AND LABOR CONDITIONS AND ESTABLISHING
OURSELVES IN NEW MARKETS, ALL OF WHICH
COULD HARM OUR BUSINESS.
We currently have international operations and
subsidiaries in various countries and jurisdictions
in Europe, North America and Asia that are subject
to the legal, political, regulatory, tax and social re-
quirements and economic conditions in these juris-
dictions. Additionally, as part of our growth strategy,
we will continue to expand our sales, maintenance,
and repair services internationally. However, such
38
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
expansion requires us to make significant expendi-
tures, including the establishment of local operat-
ing entities, hiring of local employees and establish-
ing facilities in advance of generating any revenue.
Moreover, the global reach of our operations also
exposes us to risks associated with changes in tar-
iffs or other protective trade measures. For more
information regarding the risks to our business and
operations posed by such measures, see “Global
economic conditions and macro events, as well as
trading policies and tariffs, may adversely affect
us” and “We are subject to risks associated with
exchange rate fluctuations, interest rate changes,
credit risk and other market risks.” Consequently,
due to our global presence, we are subject to a num-
ber of risks associated with international business
activities that may increase our costs, impact our
ability to sell our cars and require significant man-
agement attention. These risks include:
• conforming our cars to various international
regulatory and safety requirements where our
cars are sold, or homologated;
• difficulty in establishing, staffing and managing
foreign operations;
• difficulties attracting clients in new jurisdictions;
• foreign government tariffs and taxes, regula-
tions 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 intel-
lectual property rights, especially in those for-
eign countries that do not respect and protect
intellectual property rights to the same extent as
do the United States, Japan and European coun-
tries, 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, pandemics
or other widespread public health crises, war or
events of terrorism; and
• the strength of international economies.
If we fail to successfully address these risks, many
of which we cannot control, our business, operat-
ing results and financial condition could be materi-
ally harmed.
DEVELOPMENTS IN GROWTH MARKETS MAY
ADVERSELY AFFECT OUR BUSINESS.
We operate in a number of growth markets, both di-
rectly and through our dealers, and our exposure to
those markets may increase as we may pursue ex-
panded sales in those regions. We believe we have
potential for further success in these markets, in
particular in Asia, recognizing the increasing per-
sonal wealth of consumers. While demand in these
markets has increased in recent years due to sus-
tained economic growth and growth in personal
income and wealth, we are unable to foresee the
extent to which economic growth will be sustained.
For example, rising geopolitical and social tensions,
pandemics or similar public health crises, or slow-
downs in the rate of growth in these markets could
limit the opportunity for us to increase unit sales and
revenues in those regions in the near term.
Furthermore, in certain markets in which we or
our dealers operate, required government approv-
als may limit our ability to act quickly in making deci-
sions on our operations in those markets. Other
government actions may also impact the market for
luxury goods in these markets, such as tax changes
or the active discouragement of luxury purchases.
Consumer spending habits in these markets may also
change due to other factors that are outside of our
control. For instance, in recent years the President of
the People’s Republic of China has repeatedly signaled
the government’s intention to regulate the spending
patterns of individuals and families with ultra-high
incomes. Resulting regulatory action or similar state-
ments by governmental authorities may affect the
social acceptability of spending on luxury goods.
Maintaining or strengthening our position in
these growth markets is a component of our global
growth strategy. However, initiatives from sev-
eral global luxury automotive manufacturers have
increased competitive pressures for luxury cars in
several growth markets. As these markets continue
to grow, we anticipate that additional competitors,
both international and domestic, will seek to enter
these markets and that existing market participants
will try to aggressively protect or increase their
market share. Increased competition may result in
pricing pressures, reduced margins and our inabil-
ity to gain or hold market share, which could have a
material adverse effect on our results of operations
and financial condition. See also “Global economic
conditions and macro events, as well as trading poli-
cies and tariffs, may adversely affect us”.
LABOR LAWS AND COLLECTIVE BARGAINING
AGREEMENTS WITH OUR LABOR UNIONS COULD
IMPACT OUR ABILITY TO OPERATE EFFICIENTLY.
The majority of our employees are represented by
trade unions, are covered by collective bargaining
agreements and/or are protected by applicable la-
bor relations regulations that may restrict our abil-
ity to modify operations and reduce costs quickly
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
39
BOARD REPORT
in response to changes in market conditions. These
regulations and the provisions in our collective bar-
gaining agreements may impede our ability to or-
ganize our business successfully to compete more
efficiently and effectively, which could have a mate-
rial adverse effect on our results of operations and
financial condition.
IMPROPER CONDUCT OF EMPLOYEES, AGENTS,
OR OTHER REPRESENTATIVES COULD ADVERSELY
AFFECT OUR REPUTATION AND OUR BUSINESS,
OPERATING RESULTS, AND FINANCIAL CONDITION.
Our compliance controls, policies, and procedures
may not in every instance protect us from acts com-
mitted by our employees, agents, contractors, or
collaborators that would violate the laws or regula-
tions of the jurisdictions in which we operate, includ-
ing employment, foreign corrupt practices, environ-
mental, competition, and other laws and regulations.
Such improper actions could subject us to civil or
criminal investigations, and monetary and injunctive
penalties. In particular, our business activities may
be subject to anti-corruption laws, regulations or
rules of other countries in which we operate. If we
fail to comply with any of these regulations, it could
adversely impact our operating results and our fi-
nancial condition. In addition, actual or alleged viola-
tions could damage our reputation and our ability to
conduct business. Furthermore, detecting, investi-
gating, and resolving any actual or alleged violation
is expensive and can consume significant time and
attention of our executive management.
CHANGES IN TAX, TARIFF OR FISCAL
POLICIES COULD ADVERSELY AFFECT
DEMAND FOR OUR PRODUCTS.
Imposition of any additional taxes and levies designed
to limit the use of automobiles could adversely affect
the demand for our vehicles and our results of op-
erations. Changes in corporate and other taxation
policies, including those relating to the Patent Box tax
regime in Italy, as well as changes in export and oth-
er incentives given by various governments, or im-
port or tariff policies, could also adversely affect our
results of operations. See also “We currently benefit
or seek to benefit from certain special tax regimes,
which may not be available in the future” and “Global
economic conditions and macro events, as well as
trading policies and tariffs, may adversely affect us”.
The impact of any such tariffs on our operations and
results is uncertain and could be significant, and we
can provide no assurance that any strategies we
implement to mitigate the impact of such tariffs or
other trade actions will be successful. While we are
managing our product development and produc-
tion operations on a global basis to reduce costs and
lead times, unique national or regional standards can
result in additional costs for product development,
testing and manufacturing. Governments often
require the implementation of new requirements
during the middle of a product cycle, which can be
substantially more expensive than accommodating
these requirements during the design phase of a
new product. The imposition of any additional taxes
and levies or change in government policy designed
to limit the use of high performance sports cars or
automobiles more generally, or any decisions by poli-
cymakers to implement taxes on luxury automobiles,
could also adversely affect the demand for our cars.
The occurrence of the above may have a material
adverse effect on our business, results of operations
and financial condition.
IF WE WERE TO LOSE OUR AUTHORIZED ECONOMIC
OPERATOR CERTIFICATE, WE MAY BE REQUIRED
TO MODIFY OUR CURRENT BUSINESS PRACTICES
AND TO INCUR INCREASED COSTS, AS WELL
AS EXPERIENCE SHIPMENT DELAYS.
Because we ship and sell our cars in numerous coun-
tries, the customs regulations of various jurisdic-
tions are important to our business and operations.
To expedite customs procedure, we obtained the
European Union’s Authorized Economic Operator
(“AEO”) certificate. The AEO certificate is granted to
operators that meet certain requirements regard-
ing supply chain security and the safety and com-
pliance with law of the operator’s customs controls
and procedures. Operators are audited periodically
for continued compliance with the requirements.
The AEO certificate allows us to benefit from special
expedited customs treatment, which significantly
facilitates the shipment of our cars in the various
markets where we operate. If we were to lose the
AEO status, including for failure to meet one of the
certification’s requirements, we would be required
to change our business practices and to adopt stan-
dard customs procedures for the shipment of our
cars. This could result in increased costs and ship-
ment delays, which, in turn, could negatively affect
our results of operations.
OUR DEBT COULD ADVERSELY AFFECT OUR
OPERATIONS AND WE MAY FACE DIFFICULTIES
IN SERVICING OR REFINANCING OUR DEBT.
As of December 31, 2024, our debt was €3,352 million
(which includes our financial services). See “Financial
Overview—Non-GAAP Financial Measures—Net Debt
and Net Industrial Debt” for additional information.
Our current and long-term debt, of which 48 per-
cent and 58 percent bore floating rates of interest at
December 31, 2024 and 2023, respectively, requires
us to dedicate a portion of our cash flow to service
interest and principal payments and, if interest rates
rise, this amount may increase. In addition, our exist-
ing debt may limit our ability to raise further capital or
incur additional indebtedness to execute our growth
strategy or otherwise may place us at a competitive
disadvantage relative to competitors that have less
debt. To the extent we become more leveraged, the
risks described above would increase. We may also
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
41
BOARD REPORT
have difficulty refinancing our existing debt or in-
curring new debt on terms that we would consider
to be commercially reasonable, if at all.
WE ARE SUBJECT TO RISKS ASSOCIATED
WITH EXCHANGE RATE FLUCTUATIONS,
INTEREST RATE CHANGES, CREDIT RISK
AND OTHER MARKET RISKS.
We operate in numerous markets worldwide and
are exposed to market risks stemming from fluc-
tuations in currency and interest rates. In particu-
lar, changes in exchange rates between the Euro
and the main foreign currencies in which we oper-
ate affect our revenues and results of operations.
The exposure to currency risk is mainly linked to
the differences in geographic distribution of our
sourcing and manufacturing activities from those
in our commercial activities, as a result of which
our cash flows from sales are denominated in cur-
rencies different from those connected to pur-
chases or production activities. For example, we
incur a large portion of our capital and operating
expenses in Euro while we receive the majority of
our revenues in currencies other than Euro. In ad-
dition, foreign exchange movements might also
negatively affect the relative purchasing power of
our clients which could also have an adverse effect
on our results of operations. In 2024, the U.S. Dollar
appreciated against the Euro (going from 1.1050
U.S. Dollars for 1 Euro at December 31, 2023 to
1.0389 at December 31, 2024), the Pound Sterling
appreciated while the Japanese Yen remained sub-
stantially stable against the Euro over the course of
the year. If the U.S. Dollar or some other currencies
were to depreciate against the Euro, we expect that
it would adversely impact our revenues and results
of operations. Additionally, tariffs implemented by
the United States could impact the strength of the
U.S. Dollar and be a further contributing factor in
foreign currency exchange rates fluctuations. The
extent of adverse impacts from exchange rate
fluctuations could increase if the portion of our
business in countries outside of Eurozone increas-
es. See “Financial Overview—Trends, Uncertainties
and Opportunities”.
We seek to manage risks associated with fluctu-
ations in currency through financial hedging instru-
ments. Although we seek to manage our foreign cur-
rency risk in order to minimize any negative effects
caused by rate fluctuations, including through hedg-
ing activities, there can be no assurance that we
will be able to do so successfully, and our business,
results of operations and financial condition could
nevertheless be adversely affected by fluctuations
in market rates, particularly if these conditions per-
sist. Moreover, the valuation of hedging instruments
is influenced by the market dynamics of several
financial factors, such as exchange rates, inter-
est rates and implied volatility, that can negatively
impact our cost of hedging and the valuation of our
outstanding hedging transactions at fair value.
Additionally, changes in interest rates impact the
interest costs we incur on our debt. See also “Our
debt could adversely affect our operations and we
may face difficulties in servicing or refinancing our
debt” and “Car sales depend in part on the availability
of affordable financing”.
Our financial services activities are also sub-
ject to the risk of insolvency of dealers and retail
clients, as well as unfavorable economic conditions
in markets where these activities are carried out.
Despite our efforts to mitigate such risks through
the credit approval policies applied to dealers and
retail clients, there can be no assurances that we
will be able to successfully mitigate such risks, par-
ticularly with respect to a general change in eco-
nomic conditions.
CAR SALES DEPEND IN PART ON THE
AVAILABILITY OF AFFORDABLE FINANCING.
In certain regions, financing for new car sales has
been available at relatively low interest rates for
several years due to, among other things, expan-
sive government monetary policies. To the extent
that interest rates may rise generally based on
governmental monetary policies or actions of cen-
tral banks, market rates for new car financing are
expected to rise as well, which may make our cars
less affordable to clients or cause consumers to
purchase less expensive cars, adversely affecting
our results of operations and financial condition.
Economies around the world have recently experi-
enced significant inflationary pressures, with infla-
tion measures in the United States, Europe and the
United Kingdom reaching levels not recorded for
several decades. In response, monetary authori-
ties have taken anti-inflationary measures including
rapid increases in interest rates which are gradu-
ally transferring to market credit rates, although
central bank rates have recently decreased in the
United States and elsewhere. If consumer interest
rates increase substantially or if financial service
providers tighten lending standards or restrict their
lending to certain classes of credit, our clients may
choose not to, or may not be able to, obtain financing
to purchase our cars.
WE MAY NOT BE ABLE TO PROVIDE ADEQUATE
ACCESS TO FINANCING FOR OUR DEALERS
AND CLIENTS, AND OUR FINANCIAL SERVICES
OPERATIONS MAY BE DISRUPTED.
Our dealers enter into wholesale financing arrange-
ments to purchase cars from us to hold in invento-
ry or to use in showrooms and facilitate retail sales,
and retail clients use a variety of finance and lease
programs to acquire cars.
In most markets, we rely either on controlled
or associated finance companies or on commer-
cial relationships with third parties, including third
party financial institutions, to provide financing to
our dealers and retail clients. Finance companies
42
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
are subject to various risks that could negatively
affect their ability to provide financing services at
competitive rates, including:
• 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 re-
sidual value performance of cars they lease; and
• fluctuations in interest rates and currency
exchange rates.
Furthermore, to help fund our retail and wholesale fi-
nancing business, our financial services companies
in the United States also access forms of funding
available from the banking system in each market,
including sales or securitization of receivables either
in negotiated sales or through asset-backed financ-
ing programs. At December 31, 2024, an amount
of $1,394 million was outstanding under revolv-
ing securitizations carried out by Ferrari Financial
Services Inc. See “Financial Overview—Non-GAAP
Financial Measures—Net Debt and Net Industrial
Debt” for additional information. Should we lose the
ability to access the securitization market at advan-
tageous terms or at all, the funding of our controlled
or associated finance companies would become
more difficult and expensive and our financial con-
dition may therefore be adversely affected.
Any financial services provider, including our
controlled finance companies, will face other
demands on its capital, as well as liquidity issues
relating to other investments or to developments
in the credit markets. Furthermore, they may be
subject to regulatory changes that may increase
their costs, which may impair their ability to pro-
vide competitive financing products to our deal-
ers and retail clients. To the extent that a financial
services provider is unable or unwilling to provide
sufficient financing at competitive rates to our
dealers and retail clients, such dealers and retail
clients may not have sufficient access to financing
to purchase or lease our cars. As a result, our car
sales and market share may suffer, which would
adversely affect our results of operations and
financial condition.
Our
dealer
and
retail
customer
financing
in Europe are mainly provided through Ferrari
Financial Services GmbH (“FFS GmbH”), our part-
nership with CA Auto Bank S.p.A. (“CA Auto Bank”),
which is a fully owned subsidiary of Crédit Agricole
Consumer Finance S.A. (“CACF”) and was formerly
FCA Bank S.p.A. (“FCA Bank”) and a joint venture
between CACF and FCA Italy S.p.A. (a subsidi-
ary of Stellantis N.V. (hereinafter also “Stellantis”
and together with its subsidiaries, the “Stellantis
Group”)). If we fail to maintain our partnership with
CA Auto Bank, we may not be able to find a suitable
alternative partner with similar resources and
experience and continue to offer financing services
to support the sales of Ferrari cars in key European
markets, which could adversely affect our results
of operations and financial condition. Following
the change of control that lead to the creation of
CA Auto Bank through CACF’s acquisition in April
2023 of the 50 percent ownership interest in the
former FCA Bank previously owned by the Stellantis
Group, in November 2024 Ferrari and CA Auto Bank,
announced the renewal of their financial partner-
ship to jointly manage FFS GmbH.
OUR INSURANCE COVERAGE MAY NOT BE
ADEQUATE TO PROTECT US AGAINST ALL
POTENTIAL LOSSES TO WHICH WE MAY BE
SUBJECT, WHICH COULD HAVE A MATERIAL
ADVERSE EFFECT ON OUR BUSINESS.
We maintain insurance coverage that we believe is
adequate to cover normal risks associated with the
operation of our business. However, there can be no
assurance that any claim under our insurance pol-
icies will be honored fully or timely, our insurance
coverage will be sufficient in any respect or our
insurance premiums will not increase substantial-
ly. Accordingly, to the extent that we suffer loss or
damage that is not covered by insurance or which
exceeds our insurance coverage, or have to pay
higher insurance premiums, our financial condition
may be affected.
RISKS RELATED TO OUR COMMON SHARES
THE MARKET PRICE AND TRADING VOLUME OF
OUR COMMON SHARES MAY BE VOLATILE, WHICH
COULD RESULT IN RAPID AND SUBSTANTIAL
LOSSES FOR OUR SHAREHOLDERS.
The market price of our common shares may be
highly volatile and could be subject to wide fluctu-
ations. In addition, the trading volume of our com-
mon shares may fluctuate and cause significant
price variations to occur. If the market price of our
common shares declines significantly, a sharehold-
er may be unable to sell their common shares at or
above their purchase price, if at all. The market price
of our common shares may fluctuate or decline
significantly in the future. Some of the factors that
could negatively affect the price of our common
shares, or result in fluctuations in the price or trad-
ing volume of our common shares, include:
• variations in our operating results, or failure to
meet the market’s earnings expectations;
• publication of research reports about us, the au-
tomotive industry or the luxury industry, or the
failure of securities analysts to cover our com-
mon 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;
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
43
BOARD REPORT
• changes or proposed changes in laws or regula-
tions, or differing interpretations thereof, affect-
ing 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.
THE LOYALTY VOTING PROGRAM MAY AFFECT
THE LIQUIDITY OF OUR COMMON SHARES AND
REDUCE OUR COMMON SHARE PRICE.
The implementation of our loyalty voting program
could reduce the trading liquidity and adversely
affect the trading prices of our common shares.
The loyalty voting program is intended to reward
our shareholders for maintaining long-term share
ownership by granting initial shareholders and
persons holding our common shares continuous-
ly for at least three years the option to elect to re-
ceive special voting shares. Special voting shares
cannot be traded and, if common shares partici-
pating in the loyalty voting program are sold they
must be deregistered from the loyalty register and
any corresponding special voting shares trans-
ferred to us for no consideration (om niet). This
loyalty voting program is designed to encourage a
stable shareholder base and, conversely, it may de-
ter trading by shareholders that may be interest-
ed in participating in our loyalty voting program.
Therefore, the loyalty voting program may reduce
liquidity in our common shares and adversely af-
fect their trading price.
THE INTERESTS OF OUR LARGEST
SHAREHOLDERS MAY DIFFER FROM THE
INTERESTS OF OTHER SHAREHOLDERS.
Exor N.V. (“Exor”) is our largest shareholder, hold-
ing approximately 24.84 percent of our outstand-
ing common shares and approximately 36.69 per-
cent of our voting power (as of February 6, 2025).
Therefore, Exor has a significant influence over
matters submitted to a vote of our shareholders,
including matters such as adoption of the annual
financial statements, declarations of annual divi-
dends, the election and removal of the members of
our board of directors (the “Board of Directors”),
capital increases and amendments to our articles of
association. In addition, as of February 6, 2025, Trust
Piero Ferrari, a Jersey trust established by Piero
Ferrari, the Vice Chairman of Ferrari, holds approx-
imately 10.56 percent of our outstanding common
shares. Piero Ferrari holds the usufruct over such
shares including the right to exercise the voting
rights of such shares, corresponding to approxi-
mately 15.60 percent of voting interest in us (as of
February 6, 2025). The percentages of ownership
and voting power above are calculated based on
the number of outstanding shares net of treasury
shares. As a result, Piero Ferrari also has influence
in matters submitted to a vote of our shareholders.
Exor and Piero Ferrari informed us that they have
entered into a shareholder agreement, recent-
ly amended to reflect adherence by Trust Piero
Ferrari, pursuant to which they have undertaken to
consult for the purpose of forming, where possi-
ble, a common view on the items on the agenda of
shareholders meetings. See “Major Shareholders—
Shareholders’ Agreement”. The interests of Exor
and Piero Ferrari may in certain cases differ from
those of other shareholders. In addition, the sale of
substantial amounts of our common shares in the
public market by Trust Piero Ferrari or by Exor or
the perception that such a sale could occur could
adversely affect the prevailing market price of the
common shares.
WE MAY HAVE POTENTIAL CONFLICTS
OF INTEREST WITH STELLANTIS AND EXOR
AND ITS RELATED COMPANIES.
Questions relating to conflicts of interest may
arise between us and Fiat Chrysler Automobiles
N.V., our former largest shareholder, renamed
Stellantis N.V., in a number of areas relating to com-
mon shareholdings and management, as well as
our past and ongoing relationships. There are cer-
tain overlaps among the directors and officers of
us and Stellantis. For example, Mr. John Elkann, our
Executive Chairman, is the Chairman and an exec-
utive director of Stellantis and Chairman and Chief
Executive Officer of Exor. Certain of our other di-
rectors and officers may also be directors or offi-
cers of Stellantis or Exor, our and Stellantis’s larg-
est shareholder. These individuals owe duties both
to us and to the other companies that they serve
as officers and/or directors, which may create
conflicts as, for example, these individuals review
opportunities that may be appropriate or suitable
for both us and such other companies, or we pur-
sue business transactions in which both we and
such other companies have an interest. Exor holds
approximately 24.84 percent of our outstanding
common shares and approximately 36.69 percent
of the voting power in us (as of February 6, 2025),
while it holds approximately 14.90 percent of the
outstanding common shares in Stellantis (based
on Exor’s latest public filings available). The per-
centages of ownership and voting power above
are calculated based on the number of outstand-
ing shares net of treasury shares. Exor also owns
a controlling interest in CNH Industrial N.V. and
Iveco Group N.V., which were part of the former
Fiat Group before being spun-off several years
ago. These ownership interests could create ac-
tual, perceived or potential conflicts of interest
when these parties or our common directors and
officers are faced with decisions that could have
different implications for us and Stellantis or Exor,
as applicable.
44
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OUR LOYALTY VOTING PROGRAM MAY MAKE
IT MORE DIFFICULT FOR SHAREHOLDERS TO
ACQUIRE A CONTROLLING INTEREST IN FERRARI,
CHANGE OUR MANAGEMENT OR STRATEGY OR
OTHERWISE EXERCISE INFLUENCE OVER US,
WHICH MAY AFFECT THE MARKET PRICE OF OUR
COMMON SHARES.
The
provisions
of
our
articles
of
association
which establish the loyalty voting program may
make it more difficult for a third party to acquire,
or attempt to acquire, control of our company, even
if a change of control were considered favorably
by shareholders holding a majority of our common
shares. As a result of the loyalty voting program,
a relatively large proportion of the voting power
of Ferrari could be concentrated in a relatively
small number of shareholders who would have sig-
nificant influence over us. As of February 6, 2025,
Exor had approximately 24.84 percent of our out-
standing common shares and a voting interest
in Ferrari of approximately 36.69 percent. As of
February 6, 2025, Trust Piero Ferrari, a Jersey trust
established by Piero Ferrari held voting rights re-
lating to approximately 10.56 percent of our out-
standing common shares. Piero Ferrari holds the
usufruct over such shares including the right to ex-
ercise the voting rights of such shares, correspond-
ing to, as a result of the loyalty voting mechanism,
approximately 15.60 percent of the voting power
in our shares.The percentages of ownership and
voting power above are calculated based on the num-
ber of outstanding shares net of treasury shares.
In addition, Exor and Piero Ferrari informed us that
they have entered into a shareholder agreement, re-
cently amended to reflect adherence by Trust Piero
Ferrari, summarized under “Major Shareholders—
Shareholders’ Agreement”. As a result, Exor and
Piero Ferrari may exercise significant influence
on matters involving our shareholders. Exor and
Piero Ferrari and other shareholders participating
in the loyalty voting program may have the power
effectively to prevent or delay change of control
or other transactions that may otherwise benefit
our shareholders. The loyalty voting program may
also prevent or discourage shareholder initiatives
aimed at changing Ferrari’s management or strate-
gy or otherwise exerting influence over Ferrari. See
“Corporate Governance—Loyalty Voting Program”.
WE ARE A DUTCH PUBLIC COMPANY WITH LIMITED
LIABILITY, AND OUR SHAREHOLDERS MAY HAVE
RIGHTS DIFFERENT TO THOSE OF SHAREHOLDERS
OF COMPANIES ORGANIZED IN THE UNITED STATES.
The rights of our shareholders may be different from
the rights of shareholders governed by the laws of
U.S. jurisdictions. We are a Dutch public company with
limited liability (naamloze vennootschap). Our corpo-
rate affairs are governed by our articles of associa-
tion and by the laws governing companies incorporat-
ed in the Netherlands. The rights of our shareholders
and the responsibilities of members of our Board of
Directors may be different from the rights of share-
holders and the responsibilities of members of board
of directors in companies governed by the laws of
other jurisdictions including the United States. In the
performance of its duties, our Board of Directors is
required by Dutch law to consider our interests and
the interests of our shareholders, our employees and
other stakeholders, in all cases with due observation
of the principles of reasonableness and fairness. It is
possible that some of these parties will have interests
that are different from, or in addition to, your inter-
ests as a shareholder.
WE EXPECT TO MAINTAIN OUR STATUS AS A
“FOREIGN PRIVATE ISSUER” UNDER THE RULES AND
REGULATIONS OF THE SEC AND, THUS, ARE EXEMPT
FROM A NUMBER OF RULES UNDER THE EXCHANGE
ACT OF 1934 AND ARE PERMITTED TO FILE LESS
INFORMATION WITH THE SEC THAN A COMPANY
INCORPORATED IN THE UNITED STATES.
As a “foreign private issuer”, we are exempt from
rules under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) that impose certain
disclosure and procedural requirements for proxy
solicitations under Section 14 of the Exchange Act. In
addition, our officers, Directors and principal share-
holders are exempt from the reporting and “short-
swing” profit recovery provisions of Section 16 of
the Exchange Act and the rules under the Exchange
Act with respect to their purchases and sales of our
common shares. Moreover, we are not required to
file periodic reports and financial statements with
the SEC as frequently or as promptly as U.S. com-
panies whose securities are registered under the
Exchange Act, nor are we required to comply with
Regulation FD, which restricts the selective disclo-
sure of material information. Accordingly, there may
be less publicly available information concerning us
than there is for U.S. public companies.
OUR ABILITY TO PAY DIVIDENDS ON OUR COMMON
SHARES MAY BE LIMITED AND THE LEVEL OF
FUTURE DIVIDENDS IS SUBJECT TO CHANGE.
Our payment of dividends on our common shares
in the future will be subject to business conditions,
financial conditions, earnings, cash balances, com-
mitments, strategic plans and other factors that our
Board of Directors may deem relevant at the time it
recommends approval of the dividend. Our dividend
policy is subject to change in the future based on
changes in statutory requirements, market trends,
strategic developments, capital requirements and a
number of other factors. In addition, under our arti-
cles of association and Dutch law, dividends may be
declared on our common shares only if the amount
of equity exceeds the paid up and called up capital
plus the reserves that have to be maintained pur-
suant to Dutch law or the articles of association.
Further, even if we are permitted under our articles
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
45
BOARD REPORT
of association and Dutch law to pay cash dividends
on our common shares, we may not have suffi-
cient cash to pay dividends in cash on our common
shares. We are a holding company and our opera-
tions are conducted through our subsidiaries. As a
result, our ability to pay dividends primarily depends
on the ability of our subsidiaries, particularly Ferrari
S.p.A., to generate earnings and to provide us with
the necessary financial resources.
OUR MAINTENANCE OF TWO EXCHANGE LISTINGS
MAY ADVERSELY AFFECT LIQUIDITY IN THE MARKET
FOR OUR COMMON SHARES AND COULD RESULT IN
PRICING DIFFERENTIALS OF OUR COMMON SHARES
BETWEEN THE TWO EXCHANGES.
Our shares are listed on both the New York Stock
Exchange (“NYSE”) and the Euronext Milan. The dual
listing of our common shares may split trading be-
tween the NYSE and the Euronext Milan, adversely
affect the liquidity of the shares and the develop-
ment of an active trading market for our common
shares in one or both markets and may result in price
differentials between the exchanges. Differences in
the trading schedules, as well as volatility in the ex-
change rate of the two trading currencies, among
other factors, may result in different trading prices
for our common shares on the two exchanges.
IT MAY BE DIFFICULT TO ENFORCE
U.S. JUDGMENTS AGAINST US.
We are organized under the laws of the Netherlands,
and a substantial portion of our assets are outside
of the United States. Most of our Directors and
senior management and our independent regis-
tered public accounting firm are resident outside
the United States, and all or a substantial portion
of their respective assets may be located outside
the United States. As a result, it may be difficult for
U.S. investors to effect service of process within
the United States upon these persons. It may also
be difficult for U.S. investors to enforce within the
United States judgments against us predicated
upon the civil liability provisions of the securities
laws of the United States or any state thereof. In ad-
dition, there is uncertainty as to whether the courts
outside the United States would recognize or en-
force judgments of U.S. courts obtained against
us or our Directors and officers predicated upon
the civil liability provisions of the securities laws of
the United States or any state thereof. Therefore, it
may be difficult to enforce U.S. judgments against
us, our Directors and officers and our independent
registered public accounting firm.
RISKS RELATED TO TAXATION
CHANGES TO TAXATION OR THE INTERPRETATION
OR APPLICATION OF TAX LAWS COULD HAVE
AN ADVERSE IMPACT ON OUR RESULTS OF
OPERATIONS AND FINANCIAL CONDITION.
Our business is subject to various taxes in different
jurisdictions (mainly Italy), which include, among oth-
ers, the Italian corporate income tax (“IRES”), region-
al trade tax (“IRAP”), value added tax (“VAT”), excise
duty, registration tax and other indirect taxes. We
are exposed to the risk that our overall tax burden
may increase in the future.
Changes in tax laws or regulations or in the posi-
tion of the relevant Italian and non-Italian authorities
regarding the application, administration or inter-
pretation of these laws or regulations, particularly if
applied retrospectively, could have negative effects
on our current business model and have a material
adverse effect on our business, operating results
and financial condition.
In order to reduce future potential disputes
with tax authorities, in June 2023 we entered into
an advance pricing agreement (APA) with the tax
authorities for transfer pricing on intercompany
transactions between Ferrari S.p.A. and its foreign
subsidiaries. The APA covers the next 5 fiscal years
and may be renewed for an additional period with
the consent of both parties.
We were admitted to the Cooperative Compliance
Regime in Italy by the Italian Revenue Agency, which
provides for constant and preventive discussions
between the taxpayer and the Italian tax authorities
on the most significant transactions. This admission
is effective as of 2022 (the year in which the appli-
cation was filed), and was preceded by the adoption
and validation by Italian tax authorities of an inter-
nal tax risk control system, referred to as the Tax
Control Framework (TCF).
In addition, tax laws are complex and subject to
subjective valuations and interpretive decisions, and
we will periodically be subject to tax audits aimed at
assessing our compliance with direct and indirect
taxes. The tax authorities may not agree with our
interpretations of, or the positions we have taken or
intend to take on, tax laws applicable to our ordinary
activities and extraordinary transactions. In case of
challenges by the tax authorities to our interpreta-
tions, we could face long tax proceedings that could
result in the payment of penalties and have a mate-
rial adverse effect on our operating results, busi-
ness and financial condition.
THERE MAY BE POTENTIAL “PASSIVE
FOREIGN INVESTMENT COMPANY” TAX
CONSIDERATIONS FOR U.S. HOLDERS.
Shares of our stock would be stock of a “passive for-
eign investment company”, or a PFIC, for U.S. federal
income tax purposes with respect to a U.S. holder if
for any taxable year in which such U.S. holder held
46
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
shares of our stock, after the application of applica-
ble “look-through rules” (i) 75 percent or more of our
gross income for the taxable year consists of “pas-
sive income” (including dividends, interest, gains
from the sale or exchange of investment property
and rents and royalties other than rents and royal-
ties which are received from unrelated parties in
connection with the active conduct of a trade or busi-
ness, as defined in applicable Treasury Regulations),
or (ii) at least 50 percent of our assets for the taxable
year (averaged over the year and determined based
upon value) produce or are held for the production
of “passive income”. U.S. persons who own shares
of a PFIC are subject to a disadvantageous U.S. fed-
eral income tax regime with respect to the income
derived by the PFIC, the dividends they receive from
the PFIC, and the gain, if any, they derive from the
sale or other disposition of their shares in the PFIC.
While we believe that shares of our stock are
not stock of a PFIC for U.S. federal income tax pur-
poses, this conclusion is based on a factual determi-
nation made annually and thus is subject to change.
Moreover, our common shares may become stock
of a PFIC in future taxable years if there were to be
changes in our assets, income or operations.
THE CONSEQUENCES OF THE LOYALTY
VOTING PROGRAM ARE UNCERTAIN.
No statutory, judicial or administrative authority di-
rectly discusses how the receipt, ownership, or dis-
position of special voting shares should be treated
for Italian or U.S. tax purposes and as a result, the tax
consequences in those jurisdictions are uncertain.
The fair market value of the special voting shares,
which may be relevant to the tax consequences, is
a factual determination and is not governed by any
guidance that directly addresses such a situation.
Because, among other things, our special voting
shares are not transferable (other than, in very lim-
ited circumstances, together with the associated
common shares) and a shareholder will receive
amounts in respect of the special voting shares only
if we are liquidated, we believe and intend to take the
position that the fair market value of each special
voting share is minimal. However, the relevant tax
authorities could assert that the value of the special
voting shares as determined by us is incorrect.
The tax treatment of the loyalty voting program is
unclear and shareholders are urged to consult their
tax advisors in respect of the consequences of acquir-
ing, owning and disposing of special voting shares.
WE CURRENTLY BENEFIT OR SEEK TO BENEFIT
FROM CERTAIN SPECIAL TAX REGIMES, WHICH
MAY NOT BE AVAILABLE IN THE FUTURE.
Italian Law no. 190/2014, as subsequently amended
and supplemented, introduced an optional Patent
Box regime in the Italian tax system. The Patent Box
regime is a tax exemption related to, inter alia, the
use of intellectual property assets. Business income
derived from the use of each qualified intangible as-
set is partially exempted from taxation for both IRES
and IRAP purposes. We are currently applying the
Patent Box tax regime (Law No. 190/2014) for the pe-
riod from 2020 to 2024, with the latter being the final
year in which this regime is permitted. Law Decree
No. 146 as amended by the 2022 Italian budget law,
replaced the former Patent Box regime (which al-
lowed taxpayers to exempt from corporate income
tax (IRES) and regional income tax (IRAP) up to 50%
of their income derived from the direct or indirect
exploitation of intangibles) by introducing a new
Patent Box regime with a 110% “super tax deduction”
for research and development expenses related to
eligible intangible assets registered starting from
2021. The decree provides for a specific transitional
procedure between the two regimes. The amount of
the related tax benefits (if any) that the Group may
receive from the Patent Box or other tax regimes re-
mains subject to uncertainty.
In addition, we benefit from the measures intro-
duced in Italy by art. 110 of Law Decree no. 104/2020,
converted into Law no.126/2020, which reopened
the voluntary step up of tangible and intangible
assets, with the application of a three-percent sub-
stitutive tax rate.
Furthermore, we currently calculate taxes due
in Italy based, among other things, on certain tax
breaks recognized by Italian tax regulations for
R&D expenses and for the investments on manu-
facturing equipment.
These measures continue to mitigate the tax
burden in Italy. Significant changes in regulations
or interpretation might adversely affect the avail-
ability of such exemptions and result in higher tax
charges. See also “Changes to taxation or the inter-
pretation or application of tax laws could have an
adverse impact on our results of operations and
financial condition”.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
47
BOARD REPORT
OVERVIEW
Ferrari is among the world’s leading luxury brands,
focused on the design, engineering, production and
sale of the world’s most recognizable luxury per-
formance sports cars. Our brand symbolizes exclu-
sivity, innovation, state-of-the-art sporting perfor-
mance and Italian design and engineering heritage.
Our name and history and the image enjoyed by
our cars are closely associated with our Formula 1
racing team, Scuderia Ferrari, the most successful
racing team in the history of Formula 1. From the in-
augural year of Formula 1 in 1950 through the pres-
ent, Scuderia Ferrari has won 248 Grand Prix races,
16 Constructors’ World titles and 15 Drivers’ World
titles. We are the only team which has taken part in
all the editions of the Championship, racing in more
than 1,000 Formula 1 Grand Prix races.
We design, engineer and produce our cars in
Maranello, Italy, and sell them in over 60 markets
worldwide through a network of 180 authorized deal-
ers operating 200 points of sale as of the end of 2024.
We believe that our cars are the epitome of design,
performance and driving thrills.
In 2024, we launched three new models: 12Cilindri,
12Cilindri Spider, F80.
Our current product portfolio (including cars
presented in 2024, for which shipments will com-
mence in future years) consists of:
• seven Range, models of which: (i) one V8 internal
combustion engine (“ICE”) model: Roma Spider,
(ii) three V12 ICE models: Purosangue, 12Cilindri
and 12Cilindri Spider, (iii) two V6 hybrid models:
296 GTB and 296 GTS, and (iv) one V8 hybrid
model: SF90 Spider;
• three Special Series models: 812 Competizione
A, SF90 XX Stradale and SF90 XX Spider;
• one limited edition Icona model: Daytona SP3; and
• one Supercar model: F80 (unveiled in October
2024).
During the course of the year, we phased out the fol-
lowing models: Portofino M, SF90 Stradale, 812 GTS,
812 Competizione, Roma.
We also produce track cars and limited edition
One-Off cars from time to time, as well as other
strictly limited-series cars that may be for track or
non-track use.
The following table presents the Group’s car shipments, net revenues,
Operating profit (EBIT), net profit and net profit before income tax expense,
financial (income)/expenses, net and amortization and depreciation
(EBITDA) for the years ended December 31, 2024, 2023 and 2022. For
additional information regarding EBITDA, including a reconciliation of
EBITDA to net profit, as well as other non-GAAP financial measures we
present, see “Financial Overview—Non-GAAP Financial Measures”.
(Number of cars and € million)
For the years ended December 31,
2024
2023
2022
Car shipments(1)
13,752
13,663
13,221
Net revenues
6,677
5,970
5,095
Operating profit (EBIT)
1,888
1,617
1,227
Net profit
1,526
1,257
939
EBITDA
2,555
2,279
1,773
(1)
Excluding strictly limited racing cars (such as the XX Programme and the 499P Modificata), one-off and pre-owned cars.
Whilst broadening our product portfolio to target
a larger customer base, we continue to pursue a low
volume production strategy in order to maintain a rep-
utation for exclusivity and scarcity among purchasers
of our cars and we carefully manage our production
volumes and delivery waiting lists to promote this rep-
utation. We divide our regional markets into (i) Europe,
Middle East and Africa (“EMEA”), (ii) Americas, (iii)
Mainland China, Hong Kong and Taiwan, and (iv) Rest of
Asia-Pacific (“APAC”), which represented respectively
45.1 percent, 29.1 percent, 8.4 percent and 17.4 per-
cent of units shipped in 2024. The geographic alloca-
tion of our shipments and their mix by product reflects
our deliberate allocation strategy over the lifecycle of
the individual models and is generally impacted by the
phase-in/phase-out pace of the models, as well as the
length of waiting lists and other market-specific fac-
tors and conditions, including our commercial strate-
gy and the potential for future growth.
We focus our marketing and promotion efforts
on the investments we make in our racing activities
and in particular, our participation in the FIA Formula 1
World Championship with Scuderia Ferrari and the
FIA World Endurance Championship with the Ferrari
Endurance Team, the former being the pinnacle of
motorsport and one of the most watched annual
48
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
sports series in the world, with a cumulative TV audi-
ence of approximately 1.3 billion, 65 million average
race weekend viewership, 20 million average digital
and F1 TV viewership and 94 million social media
followers (Source: 2024 Liberty Investor Meeting).
Although our most recent Formula 1 world title
was in 2008, we continuously enhance our focus on
Formula 1 activities with the goal of improving racing
results and restoring our historical position as the
premier racing team in Formula 1. We believe that
these activities support the strength and awareness
of our brand among motor enthusiasts, clients and
the general public. Beyond Formula 1, we engage in
several other competitive motorsport events and in
2023 and 2024 we recorded victories in some of the
world’s prominent endurance races, including the
24 Hours of Le Mans in 2023 (100th edition) and 2024.
Ferrari’s presence in the broader luxury land-
scape is key to ensure brand relevance across pres-
ent and future generations and to amplify the cul-
tural relevance of our brand. As one of the world’s
primary luxury brands, we operate in carefully
selected luxury and lifestyle categories - personal
luxury goods, collectibles and experiences, the role
of which is to fuel long-term growth by broadening
our customer base and expanding our unique value
proposition beyond our core business, while pre-
serving the brand’s DNA, its heritage and values. See
below “Overview of Our Business—Lifestyle”.
As part of our lifestyle activities, we launched
our own Ferrari fashion collection with dedicated
fashion shows in June 2021 and we have continued
with successive showcases culminating in the latest
displays in February 2024 and September 2024. We
also license the Ferrari brand to a limited number of
producers and retailers of luxury and lifestyle sec-
tors, including theme parks that, we believe, enhance
the brand experience of our loyal clients and Ferrari
enthusiasts. The world of Ferrari can also be experi-
enced in our Ferrari Museum in Maranello and in the
Enzo Ferrari Museum in Modena.
Our international network of Ferrari Stores con-
sisted of 15 Ferrari-owned directly operated stores
and 2 franchised stores as of December 31, 2024,
where visitors can find our fashion collection, as
well as on our website.
We will continue focusing our efforts on pro-
tecting and enhancing the value of our brand to pre-
serve our strong financial profile and fuel long term
growth in existing and emerging markets, while
expanding the Ferrari brand to carefully selected
lifestyle categories.
HISTORY OF THE COMPANY
Ferrari N.V. was incorporated as a public limited
liability company (naamloze vennootschap) un-
der the laws of the Netherlands on September 4,
2015 with an indefinite duration. Our official seat
(statutaire zetel) is in Amsterdam, the Netherlands,
and our corporate address and principal place of
business are located at Via Abetone Inferiore n. 4,
I-41053 Maranello (MO), Italy. Ferrari is registered
with the Dutch Trade Register of the Chamber of
Commerce under number 64060977. Its telephone
number is +39-0536-949111. The name and ad-
dress of the Company’s agent in the United States
is: Ferrari North America, Inc., 250 Sylvan Avenue,
Englewood Cliffs, NJ 07632. Its telephone number is
+1 (201) 816 2600.
Our company is named after our founder Enzo
Ferrari. An Alfa Romeo driver since 1924, Enzo Ferrari
founded his own racing team, Scuderia Ferrari, in
Modena in 1929 initially to race Alfa Romeo cars. In
1939 he set up his own company, initially called Auto
Avio Costruzioni. In late 1943, Enzo Ferrari moved
his headquarters from Modena to Maranello, which
remains our headquarters to this day.
In 1947, we produced our first racing car, the 125
S. The 125 S’s powerful 12 cylinder engine would go
on to become synonymous with the Ferrari brand.
In 1948, the first road car, the Ferrari 166 Inter, was
produced. Styling quickly became an integral part of
the Ferrari brand.
In 1950, we began our participation in the
Formula 1 World Championship, racing in the
world’s second Grand Prix in Monaco, which makes
Scuderia Ferrari the longest running Formula 1
team. We won our first Constructor World Title in
1952. Our success on the world’s tracks and roads
extends beyond Formula 1, including victories in
some of the most important car races such as the
24 Hours of Le Mans, the world’s oldest endurance
automobile race, and the 24 Hours of Daytona.
The Fiat group acquired a 50 percent stake in
Ferrari S.p.A. in 1969 and increased its stake to 90
percent in 1988 following the death of Enzo Ferrari,
with the remaining 10 percent held by Enzo Ferrari’s
son, Piero Ferrari.
Ferrari became an independent, publicly traded
company following its separation from FCA (follow-
ing the merger with Peugeot S.A. in January 2021,
Stellantis), which was completed on January 3, 2016
(the “Separation”) and occurred through a series
of transactions including (i) an intragroup restruc-
turing which resulted in the Company’s acquisition
of the assets and business of Ferrari North Europe
Limited and the transfer by FCA of its 90 percent
shareholding in Ferrari S.p.A. to the Company, (ii) the
transfer of Piero Ferrari’s 10 percent shareholding
in Ferrari S.p.A. to the Company, (iii) the initial public
offering of common shares of the Company on the
New York Stock Exchange in October 2015 under
the ticker symbol RACE, and (iv) the distribution,
following the initial public offering, of FCA’s remain-
ing interest in the Company to FCA’s shareholders.
On January 4, 2016, the Company also completed
the listing of its common shares on the Mercato
Telematico Azionario (“MTA”, subsequently renamed
Euronext Milan), under the ticker symbol RACE.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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50
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
INDUSTRY OVERVIEW
Within the luxury goods market, we currently de-
fine our target market for luxury performance cars
powered by engines producing more than 500 hp
and selling at a retail price in excess of Euro 180,000
(Italian market price including VAT has been used as
reference) (the “Luxury Performance Car Industry”).
Historically, the growth patterns in the Luxury
Performance Car Industry have followed those in the
broader luxury market relatively closely. The Luxury
Performance Car Industry is generally affected by
global macroeconomic conditions and, although we
and certain other manufacturers have proven rela-
tively resilient, general downturns can have a dispro-
portionate impact on sales of luxury goods in light of
the discretionary nature of consumer spending in
this market. Furthermore, because of the emotional
nature of the purchasing decision, economic confi-
dence and factors such as expectations regarding
future income streams as well as the social accept-
ability of luxury goods may impact sales.
Following the sharp recession of 2008-2009, the
Luxury Performance Car Industry has been resil-
ient to further economic downturns and stagnation
in the broader economy, driven by an increase in
new product launches. A sustained period of wealth
creation in several Asian countries and, to a lesser
extent, in the Americas, has led to an expanding
population of potential consumers of luxury goods.
Developing consumer preferences in the Asian
markets, where the newly affluent are increasingly
embracing western brands of luxury products,
have also led to higher demand for cars in our seg-
ment, which are primarily produced by established
European manufacturers. In turn, the changing
demographic of customers and potential customers
is driving an evolution towards luxury performance
cars also suited to an urban and more frequent use.
Additionally, the growing appetite of younger afflu-
ent purchasers for luxury performance cars has
led to new entrants to the industry, which in turn has
resulted in higher sales overall in the market.
After
recovering
and
surpassing
pre-pan-
demic volumes in 2022, the Luxury Performance
Car Industry continued to grow in 2023 with a slight
slowdown in 2024. Ferrari shipments surpassed the
2019 pre-pandemic levels in 2021 (a year earlier than
the Luxury Performance Car Industry), benefiting
from actions implemented by the group to mitigate
the impact of the COVID-19 pandemic and to main-
tain production capacity, and our shipments have
continued to grow each year in line with our plans.
In 2023, Ferrari commenced deliveries of the
Purosangue, the first four-door, four wheel-drive
and four-seater Ferrari, which continued through-
out 2024 and is continuing in 2025. Given this broad-
ening of Ferrari’s car production, the reference
Luxury Performance Car Industry in which Ferrari
competes has been enlarged to include also high-rid-
ing four-door luxury performance cars offering
more than 500 hp and priced in excess of Euro
180,000 (Italian market price including VAT as refer-
ence). This new reference market has been defined
as the “Enlarged Luxury Performance Car Industry”.
After recovering and surpassing pre-pandemic vol-
umes in 2022, the Enlarged Luxury Performance
Car Industry continued to grow in 2023 and 2024.
More than in other segments of the broader lux-
ury market, in the Enlarged Luxury Performance
Car Industry, a significant portion of demand is
driven by new product launches. The market share
of individual producers fluctuates over time reflect-
ing the timing of product launches. New launches
tend to drive sales volumes even in difficult market
environments because the novelty, exclusivity and
excitement of a new product is capable of creating
and capturing its own demand from clients. The
Enlarged Luxury Performance Car Industry also
experienced an increased demand for personaliza-
tion and digital connectivity, with several industry
players introducing customized solutions to serve
local markets.
In line with the characteristics of the market
as noted above, one of the key elements driving
the positive performance of the Enlarged Luxury
Performance Car Industry in 2022, 2023 and 2024
was the renewed product offering by several com-
petitors, despite several adverse global events like
supply chain issues, rising inflation, the ongoing con-
flicts between Russia-Ukraine and Israel-Hamas and
the slow-down in the Mainland China, Hong Kong and
Taiwan region. Most of the producers in the Enlarged
Luxury Performance Car Industry managed to nav-
igate through these difficulties by adjusting their
supply chain policies and by revising their pricing
strategies, as well as through the aforementioned
renewal of their product offerings.
Growing environmental concerns are leading
to the implementation of increasingly stringent
emissions regulations and an increase in demand
for both hybrid and electric vehicles. Cost and lim-
ited charging infrastructure are currently limit-
ing factors in the demand for electric vehicles, but
advancements in battery technology in coming
years are expected to boost sales of hybrid and elec-
tric high-performance luxury vehicles, although at a
slower pace compared to mass market vehicles. The
ability to combine driving experience with hybrid
and electric technology will be key for the commer-
cial success of high-performance luxury vehicles.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
51
BOARD REPORT
As shown in the chart below, our volumes have historically proven less
volatile than our competitors’. We believe this is due to our strategy of
maintaining low volumes compared to demand, as well as to the higher
number of models in our product portfolio and our more frequent
product launches compared to our competitors.
Ferrari, Luxury Performance Car
Industry & Enlarged Luxury Perfor-
mance Car Industry data are updated
to December 31, 2024. Data is based on
units regitered (in Brazil, Japan, Taiwan,
United Kingdom, Canada, New Zealand,
Germany, France, Switzerland, Italy, Po-
land, Hungary, Czech Republic, Spain,
Sweden, Netherlands, Belgium and
Austria) or sold (in USA, South Korea,
Mainland China, Russia, Australia, Sin-
gapore and Indonesia). Source: USA-US
Maker Data Club; Brazil-JATO; Cana-
da-JATO; Austria-OSZ; Belgium-FEBIAC;
France-SIV; Germany-KBA; UK-SM-
MT; Italy-MIT; Netherlands-VWE; Po-
land-CEPiK; Hungary-Ministry of the
Interior; Czech Republic-Cars Import-
ers Association; Spain-TRAFICO; Swe-
den-BranschData; Switzerland-AS-
TRA; Mainland China-China Automobile
Industry Association-DataClub &
insurance data provided by Jato;
Russia-AEBRUS; Taiwan-Ministry of
Transportation and Communications;
Australia-VFACTS-S; Japan-JAIA; Indo-
nesia-GAIKINDO; New Zealand-VFACTS;
Singapore-LTA, MTA (Land Transport
Authority, Motor Trader Associations);
South Korea-KAIDA.
We identify the Luxury Performance
Car Industry to include all two-door luxu-
ry sports cars with power above 500 hp,
and retail price above Euro 180,000 (Ital-
ian market price including VAT as refer-
ence) sold by Aston Martin, Audi, Bentley,
BMW, Ferrari, Ford, Honda/Acura, Lam-
borghini, Maserati, McLaren, Mercedes
Benz, Porsche and Rolls-Royce.
With the Purosangue, Ferrari entered
a new segment of four-door and four-
wheel drive high performance vehicles.
As a result, in addition to the Luxury
Performance Car Industry historical-
ly considered, we also identified the
Enlarged Luxury Performance Car
Industry: a broader market segment
which also includes high-riding four
door luxury performance cars offering
more than 500 hp and priced in excess
of Euro 180,000 (Italian market price
including VAT as reference), mostly sold
by the same aforementioned competi-
tors with the addition of Land Rover.
Ferrari data based on internal informa-
tion for the 25 Top Countries (excluding
Middle East countries) for Ferrari an-
nual registrations and sales (which ac-
counted for approximately 90% of the
total Ferrari shipments in 2024).
VOLUMES
FERRARI UNITS
13,000
12,000+
86,000+
43,000+
0
Dec 31, 2004
Dec 31, 2004
Dec 31, 2024
Dec 31, 2024
Ferrari
Luxury Performance Car Industry
Enlarged Luxury Performance Car Industry
ENLARGED & LUXURY CAR INDUSTRY UNITS
100,000
0
52
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
In 2024, we had a market share of 23% in
the Luxury Performance Car Industry,
which is our historic reference market.
In 2024, we had a market share of 14%
in the Enlarged Luxury Performance
Car Industry, in which also high riding
four-door luxury performance cars
are included.
Ferrari, Luxury Performance Car
Industry & Enlarged Luxury Perfor-
mance Car Industry data are updated
to December 31, 2024. Data is based
on units registered (in Brazil, Japan,
Taiwan, United Kingdom, Canada, New
Zealand, Germany, France, Switzer-
land, Italy, Poland, Hungary, Czech Re-
public, Spain, Sweden, Netherlands,
Belgium and Austria) or sold (in USA,
South Korea, Mainland China, Russia,
Australia, Singapore and Indonesia).
Source: USA-US Maker Data Club; Bra-
zil-JATO; Canada-JATO; Austria-OSZ;
Belgium-FEBIAC; France-SIV; Germa-
ny-KBA; UK-SMMT; Italy-MIT; Neth-
erlands-VWE; Poland-CEPiK; Hun-
gary- Ministry of the Interior; Czech
Republic-Cars Importers Association;
Spain-TRAFICO; Sweden-BranschDa-
ta; Switzerland-ASTRA; Mainland Chi-
na-China Automobile Industry Asso-
ciation-DataClub & insurance data
provided by Jato; Russia-AEBRUS; Tai-
wan-Ministry of Transportation and
Communications; Australia-VFACTS-S;
Japan-JAIA; Indonesia-GAIKINDO; New
Zealand-VFACTS; Singapore-LTA, MTA
(Land Transport Authority, Motor Trad-
er Associations); South Korea-KAIDA
We identify the Luxury Performance
Car Industry to include all two-door lux-
ury sports cars with power above 500
hp, and retail price above Euro 180,000
(Italian market price including VAT as
reference) sold by Aston Martin, Audi,
Bentley, BMW, Ferrari, Ford, Honda/
Acura, Lamborghini, Maserati, McLar-
en, Mercedes Benz, Porsche and Rolls-
Royce. Ferrari is market leader in sev-
eral countries, including Italy, France,
Japan, Mainland China, Singapore and
South Korea among others.
In 2024, Ferrari’s volumes in the largest 25 markets increased compared to
2023, primarily driven by the contribution from our enlarged product range.
The charts below set forth our market shares in 2024 based on volumes
in our largest 25 markets by geographical area.
LUXURY PERFORMANCE CAR INDUSTRY MARKET SHARE
MARKET
MARKET SHARE
0
Top 25 Market
EMEA
Americas
Mainland China & Taiwan
Rest of APAC
100%
23%
20%
21%
37%
34%
ENLARGED LUXURY PERFORMANCE CAR INDUSTRY MARKET SHARE
MARKET
MARKET SHARE
0
Top 25 Market
EMEA
Americas
Mainland China & Taiwan
Rest of APAC
100%
14%
14%
11%
19%
19%
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
53
BOARD REPORT
With the Purosangue, Ferrari entered
in a new segment of four-door and
four-wheel drive high performance
vehicles. As a result, in addition to the
Luxury Performance Car Industry his-
torically considered, we also identified
the Enlarged Luxury Performance Car
Industry: a broader market segment
which also includes high-riding four-
door luxury performance cars offering
more than 500 hp and priced in excess
of Euro 180,000 (Italian market price
including VAT as reference), mostly sold
by the same aforementioned compet-
itors with the addition of Land Rover.
With respect to the Enlarged perime-
ter, Ferrari maintains its leadership in It-
aly, Singapore and Japan among others.
Ferrari data based on internal informa-
tion for the 25 Top Countries (excluding
Middle East countries) for Ferrari an-
nual registrations and sales (which ac-
counted for approximately 90% of the
total Ferrari shipments in 2024).
SPORTS CAR LINE UP
RANGE MODELS
SPECIAL SERIES
ICONA
SUPERCAR
While we monitor our market share as an indica-
tor of our brand appeal, we do not regard market
share as particularly relevant as compared to oth-
er segments of the automotive industry. We are not
focused on market share as a key performance
metric. Instead, we deliberately manage our sup-
ply relative to demand, to defend and promote our
brand exclusivity and premium pricing.
COMPETITION
Competition in the Enlarged Luxury Performance
Car Industry is concentrated in a limited number of
producers, including both large automotive compa-
nies that own luxury brands as well as small produc-
ers exclusively focused on luxury cars, like us. Our
main competitors are Lamborghini, McLaren, Aston
Martin, Rolls-Royce and Bentley, as well as Porsche,
Mercedes, Audi, BMW and Land Rover in certain
segments of the market, and may vary based on the
technical characteristics and target customer seg-
ment for each model.
Competition in the Enlarged Luxury Performance
Car Industry is primarily driven by the strength of
the brand and the appeal of the products in terms of
performance, driving thrills, styling and innovation
as well as by the manufacturers’ ability to regularly
renew their product offerings to continue to stimu-
late customer demand.
Competition among similarly positioned luxury
performance cars is also driven by price and total
cost of ownership. Resilience of the car value after
a period of ownership is an important competitive
dimension among similarly positioned luxury cars,
because higher resilience decreases the total cost
of ownership and promotes repeat purchases: we
believe this is a strong competitive advantage of
Ferrari cars.
OVERVIEW OF OUR BUSINESS
SPORTS CAR LINE-UP
In 2024, we launched three new models: 12Cilindri,
12Cilindri Spider, F80.
Our current product portfolio (including cars pre-
sented in 2024, for which shipments will commence
in future years) consists of:
• seven Range, models of which: (i) one V8 internal
combustion engine (“ICE”) model: Roma Spider,
(ii) three V12 ICE models: Purosangue, 12Cilindri
and 12Cilindri Spider, (iii) two V6 hybrid models:
296 GTB and 296 GTS, and (iv) one V8 hybrid
model: SF90 Spider;
• three Special Series models: 812 Competizione
A, SF90 XX Stradale and SF90 XX Spider;
• one limited edition Icona model: Daytona SP3;
• one Supercar model: F80 (unveiled in October
2024).
During the course of the year, we phased out the fol-
lowing models: Portofino M, SF90 Stradale, 812 GTS,
812 Competizione, Roma.
54
ROAD CARDS
RANGE MODELS
296 GTB V6 Hybrid
SPECIAL SERIES
ICONA
SF90 Stradale V8 Hybrid
Roma V8
Portofino M V8
812 GTS V12
Purosangue V12
Roma Spider V8
296 GTS V6 Hybrid
812 Competizione/A V12
Daytona SP3 V12
F80 HYbrid
SUPERCAR
SF90 XX/ Sp. V8 Hybrid
SF90 Spider V8 Hybrid
12 Cilindri V12
12 Cilindri Spider V12
ONE OFF
KC23
KC23 V8
SP-8
SP-8 V8
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
55
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We also produce track cars and limited edition
One-Off cars from time to time, as well as other
strictly limited-series cars that may be for track or
non-track use.
Our diversified product offering may include dif-
ferent architectures (such as front-engine and mid-
rear engine), engine sizes (V6, V8 and V12), technolo-
gies (natural aspirated, turbo-charged, hybrid), body
styles (such as coupes, spiders, targa and 4-doors)
and seats (2 seaters, 2+ seaters, 4 seaters).
We target end clients seeking high performance
cars with distinctive design, state-of-the-art technol-
ogy and outstanding driving dynamics to maximize
driving emotions. Our broad product portfolio is
designed to fulfill the strategy of “different Ferrari
for different Ferraristi, different Ferrari for different
moments”, which means being able to offer a highly
differentiated product line-up that can meet the vary-
ing needs of current and new customer segments
(in terms of sportiness, comfort, on-board space
and design, amongst others) and that can allow our
existing clients to use a Ferrari in various moments
of their lives. We believe that our clients can be
divided into two main categories: on the one hand,
the “Sports Car Driver”, a client looking for an elegant
and understated design, who likes driving cars in a
variety of locations and conditions, alone or with pas-
sengers, and who uses Ferrari for longer journeys;
on the other hand, the “Pilot”, a client looking for a high
performing and extreme sports car, who intends to
drive cars on track and on challenging roads, and
who is looking for an exciting driving experience.
We are also actively engaged in after sales activities driven, among
other things, by the objective of preserving and extending the market
value of the cars we sell. We believe our cars’ performance in terms
of value after a period of ownership significantly exceeds that of any
other brand in the luxury car segment, particularly for models whose
volumes are strictly limited (e.g. Special Series, Icona, Supercars). High
residual value is important to the primary market because clients, when
purchasing our cars, take into account the expected resale value in
assessing the overall cost of ownership. Furthermore, a higher residual
value potentially lowers the cost for the owner to switch to a new model
thereby supporting client loyalty and promoting repeat purchase.
The following chart shows the percentage of our unit shipments(1)
by pillar(2) for the years ended December 31, 2024, 2023 and 2022:
(1)
Excluding strictly limited racing cars (such as the XX Programme and the 499P
Modificata), one-off and pre-owned cars.
(2)
There were no shipments of Supercars during the period from 2022 to 2024.
PERCENTAGE OF UNIT SHIPMENTS BY PILLAR
SHARE
100%
0%
Range
Special Series
Icona
93%
6%
1%
2022
2023
96%
3%
<1%
2024
93%
5%
2%
TARGET AND CLIENTS
SPORTSCAR DRIVER
PILOT
56
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following chart shows the percentage of our unit shipments(1) by
geographic market for the years ended December 31, 2024, 2023 and
2022:
(1)
Excluding strictly limited racing cars (such as the XX Programme and the 499P
Modificata), one-off and pre-owned cars.
See also “Financial Overview—Trends, Uncertainties and Opportunities—
Shipments”.
The following chart shows the percentage of our unit shipments(1)
by engine type for the years ended December 31, 2024, 2023 and 2022:
(1)
Excluding strictly limited racing cars (such as the XX Programme and the 499P
Modificata), one-off and pre-owned cars.
PERCENTAGE OF UNIT SHIPMENTS BY PILLAR
SHARE
100%
0%
Range
Special Series
Icona
93%
6%
1%
2022
2023
96%
3%
<1%
2024
93%
5%
2%
PERCENTAGE OF UNIT SHIPMENTS BY ENGINE TYPE
Hybrid
ICE
SHARE
100%
0%
2022
2023
2024
56%
44%
78%
22%
49%
51%
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
57
BOARD REPORT
RANGE
Our Range line comprises products designed for
both our Pilot and our Sports Car Driver clients.
Range models designed for Pilot clients are
characterized by compact bodies, a design guided
by performance and aerodynamics, that often ben-
efit from technologies initially developed for our
Formula 1 single-seaters or other racing activities.
They favor performance over comfort, seeking to
provide the driver with an immediate response and
superior handling, leveraging state-of-the-art vehi-
cle dynamics, components and controls. Following
the phasing out of the SF90 Stradale and of the
812 GTS, we currently offer the following models:
the SF90 Spider, one of our first series production
cars featuring PHEV technology that combines a V8
engine (780 hp) with three electric motors allowing
the car to reach 1,000 hp; the 296 GTB and the 296
GTS, which also feature PHEV technology and are
powered by the first 6-cylinder engine installed on
a Ferrari road car producing 830 hp of total power
output delivered by the new 120° V6 engine (663 hp),
coupled with an electric motor capable of delivering
a further 122 kW (167 hp) – an unprecedented per-
formance for a V6 car.
Range models designed for Sports Car Driver
clients,
which
also
exhibit
the
performance
expected of a Ferrari, are characterized by more
refined interiors with a higher focus on comfort
and on-board life quality. Following the phasing out
of the Portofino M and the Roma, we currently offer
four such models: one model equipped with our V8
engine; the Roma Spider (620 hp), and three models
equipped with our V12 naturally aspirated engine,
the Purosangue (725 hp), launched in September
2022, and the 12Cilindri (830 hp) and the 12Cilindri
Spider (830 hp), both launched in May 2024.
SPECIAL SERIES
From time to time, we also design, engineer and pro-
duce Special Series cars which can be limited in time
or volume and are usually based on some of our
Range models but introduce novel product concepts.
These cars are characterized by significant modifica-
tions designed to enhance performance and driving
thrills. Our Special Series cars are particularly target-
ed to collectors and, from a commercial and product
development standpoint, they facilitate the transi-
tion from existing to new Range models. In 2021, we
launched the 812 Competizione, shipments of which
started in 2022, and the 812 Competizione A, for which
shipments started in 2023. The 812 Competizione and
the 812 Competizione A, respectively a coupe and
a targa, both feature 830 hp V12 engines. The 812
Competizione was phased out throughout the course
of 2024. In 2023, we launched the SF90 XX Stradale
and SF90 XX Spider, the new pinnacle of performance
and technological content, and the first XX street legal
cars. The coupè reaches 0-100 km/h in 2.3 seconds
and 0-200 km/h in 6.5 seconds, and set the Fiorano lap
time record for street legal cars with 1 minute and 17.3
seconds. Shipments of both models started in 2024.
ICONA
In September 2018, we introduced a new pillar of our
product portfolio: the Icona, a unique concept that
takes inspiration from the iconic concepts of our his-
tory and reinterprets them in a modern way, pairing
timeless design with state-of-the-art materials and
technology. The first example of this strictly limited
edition product line-up is the Ferrari Monza SP1/SP2,
which is inspired by the classic collectible barchetta
cars (like the 750 Monza and 860 Monza for exam-
ple), and currently out of production. In 2021, the
Daytona SP3 was unveiled. This limited edition tar-
ga takes inspiration from legendary Ferrari sports
prototypes of the 1960s (historically equipped with
a naturally aspirated V12 engine, mid-rear-mounted
in typical racing car style). The Daytona SP3 follows
the same approach and its power unit delivers 840
hp – along with 697 Nm of torque and maximum revs
of 9500 RPM – making it the most powerful naturally
aspirated road engine ever built by Ferrari.
SUPERCARS
In line with our tradition of Supercars starting with
the GTO (288 GTO) in 1984, and including the F40 in
1987, the F50 in 1995, the Enzo in 2002, the LaFerrari
in 2013, and the LaFerrari Aperta in 2016, we contin-
ue to produce limited edition Supercars - our latest
is the F80, launched in October 2024. These are the
highest expression of Ferrari road car performance
at the time and are often the forerunners of techno-
logical innovations for future Range models, with in-
novative features and futuristic design.
TRACK CARS
We also develop special track racing cars that are
based on our range and special series models. These
cars are not registered for use on the road and may
only be used on track in competitive and non-compet-
itive race events, including for our XX Programme,
Ferrari Challenge, F1 Clienti and Sport Prototipi.
ONE-OFFS
In order to meet the varying needs of our most loy-
al and discerning clients, we also produce a very
limited number of One-Off models. While based on
the chassis and equipped with engines of one of the
current models for homologation and registration
purposes, these cars reflect the exact exterior and
interior design specifications requested by the cli-
ents, and are produced as a single, unique car. Some
of the most iconic models emerged from our One-
Off program include the SP12 EC (inspired by the
512 BB and created in 2011), the F12 TRS (a radical
two-seat roadster created on the platform of the
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
F12 Berlinetta in 2014), the Ferrari SP38 (a superla-
tive mid-rear V8 turbo taking inspiration from the
legendary Ferrari F40), the 458MM Speciale (the last
mid rear model with a V8 naturally aspirated engine
in 2016), the Ferrari P80/C, a real track car taking
inspiration from past Ferrari Sport Prototipo mod-
els, and the Ferrari Omologata, based on the 812
Superfast V12 platform. The last models include the
BR20, a very elegant V12 based on the GTC4 Lusso
and produced in 2021, and the SP48 Unica, based on
the F8 Tributo, and SP51, based on the 812 Superfast
but with an open-air configuration, both launched in
2022. In 2023, we produced the KC23, a non-homolo-
gated car based on the 488 GT3 and featuring a fu-
turistic design, as well as the SP-8, which is based on
the F8 Tributo and features a particular targa design
and visible carbon fiber in the front part of the car.
In addition to the aforementioned cars, from
time to time we present other strictly limited-series
cars that may be for track or non-track use.
The following chart shows our product offering’s strategic pillars in terms
of their appeal to Ferraristi and collectors respectively.
PRODUCT OFFERING STRATEGIC PILLARS
Future Ferraristi
Ferraristi
Collectors
Range
Special Series
Icona
Supercar
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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PERSONALIZATION OFFER
Each Ferrari represents a masterpiece of engineer-
ing and design, enhanced by a multitude of person-
alization options available through our exclusive
product portfolio. Among the primary elements,
which are continually expanding, are the range of
body-color paints, exclusive livery designs that add
a refined touch and better define the car’s charac-
ter, an increasing selection of leather and Alcantara
colors for the interiors, carbon fiber components in
various color variations, titanium exhaust systems,
parking cameras, dual-mode suspension, and state-
of-the-art high-fidelity audio systems.
Through the “Special Equipment & Atelier” pro-
gram, our specialists guide the client in creating a
highly personalized car with a continuously growing
and enriching array of options, ensuring a unique
experience. These options include special paints
created specifically at the client’s request, custom
liveries, and exterior accents designed to define the
car’s character in line with the owner’s lifestyle and
driving preferences, colored and transitional car-
bon fiber elements in dual glossy/matte finishes for
both the exterior and interior, personalized stitching
and embroidery details, and luggage sets designed
to perfectly match the car’s interior.
In 2024, we launched a new project where
Atelier specialists not only consult clients in our
Personalization Centers but also during dealership
visits and other marketing platforms (for exam-
ple Universo Ferrari). The aim of this initiative is to
strengthen relationships with our clients by get-
ting closer to them, while also training the network
and enhancing the experience of both Ferrari deal-
ers and clients.
During the 2024 F1 Grand Prix in Miami, we
presented two stunning 296 GTS Assetto Fiorano
models, adorned with special liveries in the his-
toric Azzurro Dino and Azzurro LaPlata colors. We
also launched the new 12Cilindri, an elegant Gran
Turismo that pays homage to the tradition of natu-
rally aspirated V12 engines, offering several design
suggestions on how to personalize the car.
Moreover, with the launch of the new Ferrari
F80, we expanded our portfolio by introducing a
hybrid supercar that redefines the concept of per-
formance, customizable through the “Tailor Made”
program with exposed carbon fiber, available in 26
different color finishes.
The “Tailor Made” program elevates person-
alization to a higher level, with the assistance of a
dedicated Ferrari designer who guides the client
in selecting exclusive materials such as cashmere,
denim, and innovative fibers for their car. The three
collections - Scuderia, Classica, and Inedita - con-
tinue to represent the brand’s essence, celebrating
sporting history, traditional style, and experimental
innovation, respectively.
Finally, the “One-Off” program offers the pinna-
cle of exclusivity, allowing clients to design a unique
car personalized down to the smallest detail. See
“One Offs” above for additional details.
PERSONALIZATION OFFER
@Maranello
@New York
@Shanghai
TM Center
Maranello
@Maranello
@New York
@Shanghai
Atelier
Dealership with
Special Equipment
Dealership
Tailor made
Special Equipment
“Carrozzeria Scaglietti”
Personalization Program
One-Off
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
DESIGN
Design is a fundamental and distinctive aspect of
our products and our brand. The design of a Ferrari
is a structural part of our innovation process, and
everything we do to develop the lines of our cars is
functional to increase their performance and driv-
ing thrills. Our designers, modelers and engineers
work together to create car bodies that incorpo-
rate the most innovative aerodynamic solutions in
the sleek and powerful lines typical of our cars. The
interiors of our cars seek to balance functionality,
aesthetics and comfort. Cockpits are designed to
maximize the driving experience, tending towards
more sporty or more comfortable depending on
the model. The interiors of our vehicles boast ele-
gant and sophisticated trims and details that en-
hance the ergonomic layout of all main controls,
many of which are clustered on the steering wheel.
A guiding principle of our design is that each new
model represents a clear departure from prior
models and introduces new and distinctive aesthet-
ic elements, delivering constant innovation within
the furrow of tradition.
For the design of our cars we have relied histor-
ically on Italian coachbuilders such as Carrozzeria
Touring, Vignale, Scaglietti and Pininfarina. These
partnerships helped Ferrari in defining its design
language at the forefront of design advance.
Throughout the years this area of excellence has
been recognized repeatedly by a long series of
awards being bestowed upon Ferrari cars.
In 2010 we established the Ferrari Design
Centre, our in-house design department, with
the objective of improving control over the entire
design process and ensuring long-term continu-
ity of the Ferrari style. The mission of the Ferrari
Design Centre is to define and evolve the stylistic
direction of the marque, imprinting all new prod-
ucts with a modern stamp, according to a futur-
istic, uncompromised vision. The name and logo
“Ferrari Design” denotes all concepts and works
of the Ferrari Design Centre (see “—Intellectual
Property”). The Ferrari Design Centre handles all
aspects of automotive styling for the Ferrari road
cars product range, encompassing the styling of all
bodywork, external components and interior trim,
applied to series production models for the Range,
Special Series, Supercars, Icona, One-Offs, con-
cept cars and some track-only models. The Ferrari
Design Centre also includes a Color & Trim unit
which manages the choice of materials and finishes
for both exterior and interior trim and, in addition,
is responsible for the Tailor Made program in con-
junction with the Product Marketing department.
The Ferrari Design Centre is also often involved
in the styling and conceptual definition of Ferrari
branded products produced by our licensees (see
“—Lifestyle”). In 2019, we created the Advanced
Design team, a laboratory that aims at defining the
brand’s design vision, developing new concepts
and formal languages through so far unexplored
methods and tools, and trying to achieve simplifi-
cation and formal purity while staying true to the
Ferrari DNA which has characterized its history.
The Ferrari Design Centre is organized as an
integrated automotive design studio, employing a
total workforce of approximately 60 employees
(including designers, 3D surfacing operators, physi-
cal modelers and graphic artists), as well as contrac-
tors. It operates a modeling studio fully equipped
with 5-axis milling machines with the capacity to
develop various full-scale models (interior and exte-
rior) in parallel.
In September 2018, we opened a new building for
the Ferrari Design Centre, which is our first facility
fully dedicated to our in-house design department.
The new building hosts two Ateliers and the Tailor
Made department to engage clients with Ferrari’s
rich personalization services.
During its 15 year history, the Ferrari Design Centre
has designed the majority of our cars, including our
entire current line-up, and has received many pres-
tigious design awards for their design. The following
is a list of the awards won in the last 2 years:
• Ferrari 296 GTB: Performance Car of the Year -
Car&Driver USA (2024);
• Ferrari Vision GT: iF Design Award (2024);
• Ferrari Roma Spider: iF Design Award (2024);
Red Dot Best of The Best (2024);
• Ferrari KC23: iF Design Award(2024); Red Dot
Design Award (2024);
• Ferrari SF90 XX Stradale/Spider: iF Design
Award (2024); Red Dot Design Award (2024);
• Ferrari Purosangue: Compasso d’Oro ADI (2024);
• Centro Stile Ferrari and Flavio Manzoni: Awards
2024-Salone Auto Torino; Italian Design Week
Awards (2024);
• Ferrari 12Cilindri: Luxury Car of the Year - The
Motor Awards (2024); Design Prix- Automobile
Awards (2024);
• Ferrari Purosangue: Car Design Award (2023);
Red Dot Best of The Best Award (2023); iF Design
Award (2023); EyesOn Design Award - Best
Production Vehicle (2023); AUTONIS Award- Auto
Motor und Sport (2023);
• Ferrari Vision Gran Turismo: Red Dot Best of The
Best Award (2023);
• Ferrari 296 GTS: Red Dot Design Award (2023);
• Ferrari Daytona SP3: iF Design Award (2023);
• Ferrari Roma Spider: AUTONIS Award - Auto
Motor und Sport (2023); Sunday Times - Dream
Car Award (2023);
• Ferrari Design Centre: Car Design Award 2023 –
Ferrari brand design language (2023).
The multi-year collaboration with the creative col-
lective LoveFrom, which started in September 2021,
continues today and the partnership brings togeth-
er Ferrari’s legendary performance and excellence
and LoveFrom’s experience and creativity that has
defined extraordinary world changing products.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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PRODUCT DEVELOPMENT
AND TECHNOLOGICAL INNOVATION
Our development efforts take into account the three pillars of competitive
advantage of Ferrari cars: design, performance and driving thrills.
Design – sight is the first sense to enjoy a Ferrari and
the design of a Ferrari is a structural part of our in-
novation process. We develop the design of our cars
to increase their performance and driving thrills.
Performance – features such as power, aerody-
namics, weight, driveline and mechatronics all con-
tribute to determine the lap time on track. We strive
to ensure that every Ferrari is the best performing
car in its segment.
Driving thrills – a key differentiator of Ferrari
cars. There are five main elements to driving thrills:
longitudinal acceleration, lateral acceleration, brak-
ing, gear change and sound.
INNOVATION PRINCIPLES
Our goal with innovation is to enhance the perfor-
mance and driving thrills of our cars. The unique
Ferrari way of developing a car involves the follow-
ing main elements:
• leveraging on Formula 1 and racing-specific
know-how;
• prioritizing innovations in core hardware and
software, including through open innovation;
• tailoring existing solutions available on the mar-
ket; and
• developing distinctive and iconic components.
In addition to these internally driven factors, regula-
tion is key in determining the direction of innovation.
Furthermore, being prepared for change is part
of our DNA, and climate change is a further stimu-
lus for us to innovate. In the near future, we expect
Ferrari’s innovation program to be focused not only
on electric transition but also on innovative materi-
als, alternative fuels, lubricants and coolants, as well
as on aerodynamics.
In this regard, we have placed significant focus on
introducing new materials, such as recycled alumi-
num, for which CO2 emissions could be reduced by
up to 90%, and we are working with partners on the
use of alternative fuels, such as hydrogen, E-Fuels,
coolants and lubricants which would allow us to
reduce emissions while continuing to use internal
combustion engines that preserve our heritage.
Our goal is to find technological solutions that
will allow us to be compliant with applicable regula-
tions, without penalizing the performance and driv-
ing thrills of our cars.
KEY FEATURES OF OUR OFFER
Three Powertrains with
Distinctive Driving Emotions
Ferrari engines are characterized by prime perfor-
mance in a key parameter for cars’ engines: specific
power (power for displacement and power for mass/
weight). We intend to broaden the powertrain offer-
ing to include full electric, hydrogen and other tech-
nologies as well as the internal combustion engine
(ICE) which continues to represent Ferrari’s heritage.
Ferrari targets a well-diversified product port-
folio, composed of ICE, hybrid engines and full elec-
tric engines, each one delivering distinctive driving
emotions.
• ICE – Ferrari will continue to pursue the internal
combustion engine evolution and will develop
solutions in energy efficiency and alternative fu-
els to build on an essential part of the Company’s
heritage, including with the support of partners
where appropriate.
• Hybrid – our cars have shown that hybrid (HEV
and PHEV) is the right technology for increasing
pure performance, and we have taken advan-
tage of the technology transfer from the rac-
PILLARS OF COMPETITIVE ADVANTAGE
Design
Performance
Driving thrills
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ing world. Ferrari firmly believes that the hybrid
powertrain can further increase performance,
as evidenced by the four hybrid cars currently in
our product portfolio.
• Electric – leveraging strong commonalities with
the internal combustion engine, including tech-
nology transfer from the racing world, precision
mechanics, fluid-dynamics and performance
software, electric technology will also provide
unique elements, driving emotions and the thrills
of a true Ferrari.
The worlds of electric and combustion engines have
many similarities, including:
• the racing world - Formula 1 and other racing
competitions were and will be the starting point
for the development and test of new contents to
use on our range cars. For instance, the archi-
tecture of our electric engine is racing derived;
but the challenge has been to industrialize that
engine, in order to move from unitary produc-
tion to that of thousands of units. A challenge that
we have met thanks to the precision mechanics
know-how already existing in Maranello;
• the fluid dynamics - cooling systems are key to,
among other things, the performance and dura-
bility of electric engines. We use our know-how
on combustion engine cooling systems to devel-
op the best and most efficient solutions for our
future electric engines; and
• the performance software - the performance
software, as we apply everything we have
learned over the years in the combustion world
to the new challenges of the electrification era.
Ferrari Dynamic and Sensors
Sensors and the relevant know-how built over de-
cades contribute to the driving thrills and perfor-
mance, as well as reliability and car safety.
Our first sensor, a position sensor, was adopted in
1980 on the Ferrari 308GTBi. Now, a Ferrari car can
have hundreds of sensors, including accelerome-
ters, gyroscopes, microphones, and others, which
improve vehicle dynamics as well as performance
and driving thrills.
In the near future, our cars will be equipped with
new sensors that will allow us to further improve
the existing features and enable new functions, and
that will play a fundamental role on battery manage-
ment, increasing the life of the battery as well as the
safety of our cars. Longer term, new sensors tech-
nology will allow for new applications and a step-up
in performance.
By combining sensors and software, it will be pos-
sible to further improve the performance and driving
thrills of our cars. For example, comparing a Ferrari
with a 6D sensor and one without it, we have reduced
our braking distance by approximately 10% thanks to
the information collected through accelerometers,
gyroscopes, and the deep control vehicle software
know-how. Another example is the FAST (“Ferrari
Active Suspension Technology”), a technology first
introduced on the Purosangue that enables our cars
to apply the best suspension for every driving condi-
tion by keeping the vehicle body at the best elevation
for riding. FAST controls body roll in corners as well
as the tire contact patch over high-frequency bumps.
Architecture
The other principal technical area we are focusing
on is architecture. Our architecture covers all princi-
pal technical specifications of future Ferrari models.
We expect that innovation requirements will arise
principally from: the evolution of engine families; the
level of hybridization and electrification; modes of
traction; the number of seats up to a real four-seat-
er; and the body style, which will vary much more
significantly than in the past.
We expect that our core architectures will be the
rear-mid-engine architecture and the front-mid-en-
gine architecture, each comprising several variants.
FERRARI ARCHITECTURE: MAXIMUM PERFORMANCE AND FLEXIBILITY
ENGINE
DRIVELINE
ICE
HYBRID
V6
V6
FULL
ELECTRIC
V8
V12
V8
TECHNOLOGY AS A MEAN TO PROVIDE A WIDER OFFERING
2 WD
4 WD
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
63
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Autonomous driving and connectivity
While we do not intend to develop self-driving cars,
we will adopt certain features of autonomous driv-
ing technology in response to regulatory develop-
ments and customer preferences, especially in the
Range segment. For example, in 2018 we launched
initial functionalities for Advanced Driving Assistant
Systems (ADAS) such as predictive braking and au-
tomatic cruise control on current models, and fur-
ther innovations will be introduced in future models.
Ferrari is carefully monitoring the evolution of
autonomous driving technologies, including sen-
sors, new chips, artificial intelligence and connec-
tivity, and we will select and customize those inno-
vations compatible with the Ferrari experience and
the highest security standards. These technologies
combined with the hybridization and the incom-
ing cybersecurity requirements will also have an
important impact on the electronic architecture of
our cars and we are presently developing our future
electrical and electronic architecture to take into
account these requirements.
“MAKE OR BUY” APPROACH
Ferrari will continue to develop and produce its core
components in-house with a strong focus on innova-
tion, while co-developing and tailoring best-in-class
existing solutions with selected partners. Strategic
partnerships in non-core hardware and software
areas will provide access to state-of-the-art technol-
ogies, helping to maintain a disciplined approach to-
wards investment whilst enhancing design, perfor-
mance and driving thrills.
MANUFACTURING
Our production facilities are located in Maranello
and in Modena, Italy (see “—Properties”). Our produc-
tion processes include supply chain management
and production of cars in our Range models and
Special Series, as well as assembly of prototypes
and avanseries.
Notwithstanding the low volumes of cars pro-
duced, our production process requires a great
variety of inputs (over 70,000 product identifier
codes sourced from approximately 500 total sup-
pliers) entailing complex supply chain manage-
ment to ensure continuity of production. Our stock
of supplies is warehoused in or near Maranello,
and its management is outsourced to a third party
logistics company.
Production of our cars starts with the alumi-
num bodyworks at our plant in Modena (Carrozzeria
Scaglietti) and the remainder of the manufacturing
process takes place at our plant in Maranello, includ-
ing aluminum alloy casting in our foundry, engine
construction, mechanical machining, painting, car
assembly and bench testing. All parts and compo-
nents not produced in house at Ferrari are sourced
from our panel of suppliers (see “—Procurement”).
In recent years we have made significant invest-
ments in our manufacturing facilities. Equipment may
require substantial investment with the introduction
of new models or to maintain state-of-the-art tech-
nology, particularly in the case of shell tools for the
foundry, tools for machining, feature tools for body
welding and special mounting equipment for the as-
sembly. Since 2021 we have been acquiring additional
resources and production equipment, mainly in rela-
tion to Battery Electric Vehicles (“BEVs”), to success-
fully manage the new technological advancements
and related challenges resulting from the transition
to electrification. Our BEVs and related components
are produced in our e-building, a strategic asset that
was inaugurated in June 2024. For additional informa-
tion relating to our e-building see “—Properties”)
As at December 31, 2024, our production pro-
cesses employed 1,797 engineers, technicians and
other personnel (184 white collar employees and
1,613 blue collar, of which 443 were agency pro-
duction workers). Our flexible production structure
and organization allow us to adjust and increase our
production capacity to accommodate our expected
production requirements. This is primarily due to
the low volume of cars we produce per year and to
our highly skilled and flexible employee base that
can be deployed across various production areas,
as well as to our new e-building, which is based on
the concept of flexibility. In addition, we can adjust
our make-or-buy strategies to address fluctuations
in the level of demand on our internal production
resources. We constantly work to increase the uti-
lization rate and reduce the internal scrap rate and
we closely monitor an index of our production effi-
ciency. We are also ambitious to continually improve
the reliability of our cars, reducing defects, and opti-
mize finishing.
Unlike most low volume car producers, we oper-
ate our own foundry and machining department
producing several of the main components of our
engines, such as engine blocks, cylinder heads and
crankshafts. We believe this accelerates product
development and results in components that meet
our specifications more closely.
Engine Production
Our engines are produced according to a verti-
cal structure, from the casting of aluminum in our
foundry up to the final assembly and testing of the
engine. Several of the main components of our en-
gines, such as blocks and cylinder heads are pro-
duced at our foundry in Maranello. For this purpose,
we use a special aluminum alloy that includes seven
percent silicon and a trace of iron, which improves
mechanical integrity, as well as our own shell and
sand casting molds. Once all components are ready,
engines are assembled on different lines for our V12
engines, our V8 and V6 engines. The assembly pro-
cess is a combination of automatic and manual op-
erations. At the start of the assembly process, each
engine is identified with a barcode and operations
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
are recorded electronically. Every engine goes to
the test benches to ensure it delivers the expected
performance: approximately 90 to 95 percent of en-
gines are cold tested and approximately 5 to 10 per-
cent of engines are also hot tested and measured
for power and torque.
Body Assembly
In parallel with the assembly of our engines, we pre-
pare our body-shells at our body shop Carrozzeria
Scaglietti in Modena. At Carrozzeria Scaglietti we
have two different production lines dedicated to
the assembly of our aluminum bodies (V6-V8 and
V12), as well as a dedicated line for special series
with carbon fiber body (Daytona SP3 and F80). The
main components of the body-shells are not pro-
duced internally, but are sourced from manufac-
turers of chassis, bodies and carbon fiber parts.
Through a mix of high-precision robots as well as
highly skilled craftsmanship, we carefully assem-
ble and check the geometric alignment of the var-
ious parts with mechanical gauges as well as 3D
measuring machines. Then, we carry out aesthet-
ic controls on the surface of the aluminum panels,
to eliminate any imperfections by either filing or
panel beating. Our highly qualified specialists man-
age specific phases of body-shell manufacturing,
such as the completely manual execution of the
“aesthetic welding”, a unique joint weld between
flank and roof of certain models (the Roma and 812
Competizione families), giving the impression that
the body is one single piece.
Painting
When transferred to our paint shop, the bodies are
mounted on a loading bay, immersed in the catapho-
resis tanks and subsequently transferred to a fix-
ing gas fired oven at 180°C. After the cataphoresis,
the sealing phase of the body is largely automated.
Primers are then applied and fixed at 190°C until the
completely grey body-shell is ready for painting. All
body-shells are cleaned with automatic pressure
blowers (to avoid the electrostatic effect) and care-
fully brushed with emu feathers (because of their
natural electrostatic properties) to clean off any dirt
particles or impurities before painting. The painting
process is automated for larger surfaces, while it is
done by hand for some other localized areas. In 2019,
we replaced the robot which performs the applica-
tion of the base coat. The whole car is painted at the
same time to ensure color harmony. The bodies are
finally polished with lacquer to fix the paint and give
the bodies their final finish. In 2018, we substituted
our clear coat with a new generation 2K (bi-compo-
nent) transparent coat that allows us to decrease the
temperature of the oven from 140°C to 90°C; this is a
very innovative process that allows us to simultane-
ously paint aluminum and carbon fiber parts. At the
end of the process “aesthetic blacks” are realized by
painting any gaps in the car matte black finish.
Assembly Line and Final Checks
The final assembly of our cars takes place in
Maranello. For each model, the initial assembly op-
erations generally take place simultaneously on dif-
ferent lines and sections to maximize efficiency so
while the body is assembled on the main line, the
powertrain, as well as the cockpit and the doors, are
prepared on a separate sub-line. Furthermore, our
new e-building, which we inaugurated in June 2024,
is based on the concept of flexibility, and will be used
to produce and develop models with internal com-
bustion, hybrid and full electric powertrains, as well
as strategic electrical components.
Personalization and Road Tests
During the assembly process of our cars we manage
the fitting of all bespoke interiors, components and
special equipment options that our clients choose as
part of our personalization program (see “—Sports
Car Line-Up—Personalization Offer”). After the as-
sembly phase, every car completes a 60-kilometer
road test-drive.
Finishing and Cleaning
After the road test all cars go to the finishing depart-
ment. There, we thoroughly clean interior and exte-
rior, perform a comprehensive review of the whole
car, and polish and finish the bodies to give them
their final appearance.
PROCUREMENT
We source a variety of components, raw materials,
supplies, utilities, logistics and other services from
numerous suppliers. We recognize the contribution
of our suppliers to our success in pursuing excel-
lence in terms of luxury and performance, therefore
we carefully select suppliers that are able to meet
our high standards.
For the sourcing of certain key components with
highly technological specifications, we have devel-
oped strongly synergic relationships with some
of our suppliers, which we consider “key strategic
innovation partners”. We currently rely on selected
key strategic innovation partners, including for the
supply of transmissions and brakes. We have also
developed strong relationships with other industrial
partners for bodyworks and chassis manufactur-
ing and for powertrain and transmissions, among
other things. Pursuant to our make-or-buy strategy,
we generally retain production in-house whenever
we have an interest in preserving or developing
technological know-how or when we believe that
outsourcing would impair the efficiency and flexi-
bility of our production process. Therefore, we con-
tinue to invest in the skills and processes required
for low-volume production of components that we
believe improve product quality.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
65
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For the year ended December 31, 2024, the purchas-
es from our ten largest suppliers by value accounted
for approximately 23 percent of total procurement
costs, and no supplier accounted for more than 5
percent of our total procurement costs.
SALES AND AFTER-SALES
Our commercial team is organized in four geo-
graphic areas, covering our principal regional end
markets: (i) EMEA, (ii) Americas, (iii) Mainland China,
Hong Kong and Taiwan, and (iv) Rest of APAC.
Dealer Network
We sell our cars exclusively through a network of
authorized dealers (with the exception of one-offs
and track cars which we sell directly to end cli-
ents). In our larger markets we act as importer ei-
ther through wholly owned subsidiaries or, in China,
through a subsidiary partly owned by a local part-
ner, and we sell the cars to dealers for resale to end
clients. In smaller markets we generally sell the cars
to a single importer/dealer. We regularly assess
the composition of our dealer network in order to
maintain the highest level of quality. At December 31,
2024, our network comprised 180 dealers operat-
ing 200 points of sale.
We do not presently own dealerships and, while
our strategy does not structurally contemplate own-
ing dealerships, we retain flexibility to adapt to evolv-
ing market requirements over time.
We believe that our careful and strict selection of
the dealers that sell our cars is a key factor for pro-
moting the integrity and success of our brand. Our
selection criteria are based on the candidates’ rep-
utation, financial stability and proven track records.
We are also intent on selecting dealers who are able
to provide a purchase and after-sales experience
aimed at exceeding our clients’ high expectations.
Furthermore, our dealers are committed to promot-
ing and marketing our cars in a manner intended to
preserve the Ferrari brand integrity and to ensure
the highest level of client satisfaction.
While dealers may hold multiple franchises, we
enjoy a high degree of prominence and level of rep-
resentation at each point of sale, where the great
majority of the client interface and retail experi-
ence is exclusive to Ferrari. Our network and busi-
ness development team works with all dealers to
ensure our operating standards are met. Our rigor-
ous design, layout and corporate identity guidelines
guarantee uniformity of the Ferrari image and client
interface.
Our dealer network has consistently and pro-
actively invested in its facilities in recent years and
the majority of our dealer network’s worldwide
facilities have been upgraded with the latest Ferrari
corporate identity guidelines in order to provide cli-
ents with a superior experience while delivering a
unique luxury environment and digital touchpoints
to complement the physical space. In 2024 we pre-
sented further iterations of the Ferrari corporate
identity to the dealer network and selected pilot
projects around the world have started the imple-
mentation process.
Furthermore, at the end of 2023, Ferrari pre-
sented to its dealer network the Company’s vision on
the new Ferrari point of sale, continuing to invest in a
strategy aimed at delivering a superior client experi-
ence and to foster the relationship between Ferrari
and its client community to an even higher level. The
implementation started in 2024 and the first opening
is planned for 2025.
Ferrari also uses an omni-touchpoint strategy
and continues to engage with dealers and clients
at different levels. The client engagement typically
takes place at the dealerships, whose ability to pro-
mote the client-community life has been reinforced
via a new corporate identity implemented in recent
years, but also through digital touchpoints such
as the MyFerrari App, and through a plan of exclu-
sive experiences organized at our headquarters
in Maranello, as well as at a regional or dealer level.
Client engagement activities typically feature vari-
ous car driving opportunities, both on track and on
the road. We have also developed and implemented
several engagement activities aimed at gathering
the client community and promoting the discov-
ery of our brand, including through experience
touchpoints. The Casa Ferrari hospitality has been
proposed for several years and 2024 saw the third
application of the Universo Ferrari brand exhibition,
which took place in Bangkok, Thailand, after the first
edition outside of Maranello was held in Sydney,
Australia, in 2022, and the second in Seoul, South
Korea, in 2023.
Other important formats of client engagement
introduced in 2023 were continued in 2024, like the
second Tribute to Le Mans and the second Legacy
Tour this year, dedicated to Ferrari’s GTO, also com-
monly known as 288 GTO. In May 2024, Ferrari orga-
nized for the first time a unique event during the F1
Grand Prix in Miami, expression of our three key
dimensions, Racing, Lifestyle and Sports cars, and
involving our top clientele, with the simultaneous
launch of a dedicated Lifestyle capsule collection
and of two new car models, the new 12Cilindri and
the 12Cilindri Spider.
Competence building and training are also key
to the implementation of our strategy. Through our
in-house Ferrari Academy we provide training to
dealers for sales, after-sales and technical activi-
ties. This ensures that our dealer network delivers a
consistent level of market leading standards across
diverse cultural environments. In recent years we
have adapted our training strategy by introducing
and enhancing virtual-training solutions, while con-
tinuing to foster expertise in the network at the high-
est level. We also introduced new courses in areas
such as digital commercial execution and luxury
experience management, as well as design applied
to the personalization experience for clients, with
the aim of delivering the best possible client expe-
66
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
rience. Moreover, in 2024, we conducted the first
pilot editions of our new “In Dealership Coaching”
program, aimed at further building our retail com-
petence on how to achieve the desired level of excel-
lence in client management.
We collect and observe data relating to dealer
profitability and financial health to prevent or mit-
igate any adverse experience for clients arising
from a dealer ceasing to do business or experienc-
ing financial difficulties. Our regional executives visit
dealerships regularly to monitor and measure per-
formance and compliance with our operating stan-
dards. We have the right to terminate dealer rela-
tionships in a variety of circumstances, including
failure to meet performance or financial standards,
or failure to comply with our guidelines. Dealer turn-
over is relatively low, reflecting the strength of the
franchise and our selection processes, but is suffi-
cient to guarantee an orderly renewal over time and
to stimulate the network’s health and performance.
We provide a suggested retail price or a maxi-
mum retail price for all of our cars, but each dealer
is free to negotiate different prices with clients and
to provide financing. Although many of our clients
in certain markets purchase our cars from dealers
without financing, we offer direct or indirect finance
and leasing services to retail clients and to dealers.
(See “—Financial Services”).
The total number of our dealers as well as their
geographical distribution tends to closely reflect the
development or expected development of sales vol-
umes to end clients in our various markets over time.
The chart below sets forth the geographic distribu-
tion of our 200 points of sale at December 31, 2024:
GEOGRAPHIC DISTRIBUTION OF POINTS OF SALE (POS) AT DECEMBER 31, 2024
U.S.A.
45
Canada
5
Latin America
6
North Europe
15
Central Europe
15
West Europe
23
East Europe
14
South Europe
17
Middle East
11
Mainland China
18
Taiwan
3
Hong Kong
1
North East Asia
12
South East Asia
7
Australasia
8
HQ
HUBS
REGIONS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
POS
Rest of APAC
27 POS
Mainland China,
Hong Kong and Taiwan
22 POS
EMEA
95 POS
Americas
56 POS
Ferrari - Maranello
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
67
BOARD REPORT
Our sales are diversified across our dealer network,
with the largest dealer representing approximately
2.8% of our shipments, and our 15 largest dealers rep-
resenting approximately 22% of our shipments in 2024.
As part of our supply and demand management,
we determine allocations based on various metrics
including expected developments in the relevant
market, the number of cars sold historically by the
various dealers, current order book of dealers and
the average waiting time of the end client in the rel-
evant market. Our order reporting system allows us
to collect and monitor information regarding end
client orders and is able to assist us in production
planning, allocation and dealer management.
Parts
We supply parts for current and older models of
Ferrari to our authorized dealer network. In addition
to substitution of spare parts during the life of the
car, sales are driven by clients’ demand for parts to
customize their cars and maximize performance,
particularly after a change in ownership, as well as
parts required to compete in the Ferrari Challenge
and other client races. We also supply parts to
Ferrari models currently out of production, with
stocks dating back to 1995. The stock of parts for
even older models is currently owned and managed
by a third party which in some cases also manufac-
tures out-of-stock parts based on our designs. The
sale of parts is a profitable component of our prod-
uct mix and is expected to benefit from the increase
in the number of Ferrari cars in circulation.
After-Sales
Dealers provide after-sales services to clients, ei-
ther at facilities adjacent to showrooms or in stand-
alone service points across 252 facilities worldwide
at December 31, 2024. After-sales activities are very
important for our business to ensure the client’s
continued enjoyment of the car and the experience.
Therefore, we enforce a strict quality control on our
dealers’ services activities and we provide continued
training and support to the dealers’ service person-
nel. This includes our team of “flying doctors”, Ferrari
engineers who regularly travel to service centers to
address difficult technical issues for our clients.
We sell cars together with a scheduled program
of recommended maintenance services in order to
ensure that these cars are maintained to the highest
standards to meet our strict requirements for per-
formance and safety.
Our 7 Year Maintenance Program (free of charge
for customers since 2011 on any new cars) is offered
to further strengthen customer retention in the offi-
cial network and has been coupled with the possi-
bility to extend the statutory warranty term of our
standard warranty terms through the Warranty
Extension starting from the 3rd year up to the 7th year
and the Power Warranty Coverage, covering from
the 8th year up to the 16th year of life of the car. For
certain strictly limited series cars (for example, the
Monza SP1 and SP2, and the Daytona SP3) we intro-
duced a Full Warranty Coverage Extension that can
be applied after the 36-month commercial contrac-
tual warranty. For hybrid models, such as the SF90
family and the 296 family, we introduced a new ser-
vice called Warranty Extension Hybrid, which allows
the owner to buy a complete coverage after the 3rd
year up to the 8th, including replacement of the high
voltage battery at the 8th year of life of the car.
After the 8th year of life, a car (if in perfect main-
tenance condition) can be included in the Main Power
warranty coverage program (Maintenance and
Power) through to the car’s 16th year of life. Between
the 16th year of life and the Classiche eligibility (20
year old car) Ferrari provides its customers, in addi-
tion to standard maintenance items, also certain
specific maintenance kits (Ferrari Premium) to pre-
serve car performance and safety systems. When a
car follows the full maintenance program up to the
20th year of life, it automatically obtains the Ferrari
Classiche certification.
While we do not have any direct involvement in
pre-owned car sales, we seek to support a healthy
secondary market in order to promote the value of
our brand, benefit our clients and facilitate sales of
new cars. Our dealers provide an inspection service
for clients seeking to sell their car which involves
detailed checks on the car and a certification on
which the client can rely, covering, among other
things, the authenticity of the car, the conformity
to original technical specifications, and the state
of repair. Furthermore, we offer owners of classic
Ferrari cars maintenance and restoration services
through the 73 Officina Ferrari Classiche work-
shops that form part of our service network.
In addition, owners of our classic cars can seek
assistance in car and engine restorations at our
Ferrari Classiche department in Maranello.
FINANCIAL SERVICES
We offer retail client financing for the purchase of
our cars through the operations of Ferrari Financial
Services (“FFS”):
• directly in the United States through our fully
owned subsidiary Ferrari Financial Services Inc.
(“FFS Inc”);
• through Ferrari Financial Services GmbH (in
partnership with CA Auto Bank) in certain mar-
kets in EMEA (primarily the UK, Germany and
Switzerland); and
• through
various
partnerships,
which
may
also provide financing to our dealers, in other
European countries and other major internation-
al markets, such as Japan and Mainland China.
Through FFS, we offer a range of flexible, bespoke
financial and ancillary services to clients (both cur-
rent and new) interested in purchasing a wide range
of cars, from our current product range to older
68
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
pre-owned and classic models. FFS also provides
special financing arrangements to a selected group
of our most valuable and loyal customers.
At December 31, 2024, the consolidated financial
services portfolio was €1,662 million and entirely
originated in the United States.
CLIENT RELATIONS
Our clients are the backbone of our business to-
gether with our brand and our technology. We do
not promote our brand or our cars through general
advertising. Our main brand marketing and promo-
tional activities have two principal targets.
Firstly, we target the general public. Our most sig-
nificant effort in this respect is centered on our racing
activities and the resonance of Scuderia Ferrari (see
“—Racing—Formula 1”). We also reach the general
public through the activities of our lifestyle division,
through the sale of luxury goods at our stores and
online, the brand’s experience parks and museums,
and collectibles. We also engage in other brand-pro-
motional activities through digital platforms such as
eSports, and our official social media channels.
Secondly, we target existing and prospective cli-
ents on both new car and preowned car sales, seeking
to promote clients’ knowledge of our products, and
their enjoyment of our cars both on road and on track,
and to foster long-term relationships with our clients,
which is key to our success. In 2024, almost 81% of
our new cars were sold to existing Ferrari owners. In
recent years, we have pursued a carefully designed
enlargement and rejuvenation of our client base, while
always respecting the principle of exclusivity.
From December 2023 to December 2024 we con-
tinued to grow our active client base by 2.5%, rejuve-
nated our loyal client base with more than 30% of new
clients below 40 years old, and nurtured our best col-
lectors who have increased the average number of
Ferrari cars they own by approximately 11%.
By purchasing our cars, clients become part of a
select community sharing a primary association with
the Ferrari image and we foster this sense of fellow-
ship with a number of initiatives. We strive to maxi-
mize the experience of our clients throughout their
period of interaction with Ferrari – from first contact,
through purchasing decision process, to waiting-time
management and car delivery and enjoyment.
Recognizing the importance of digital touch-
points to enhance the overall client experience,
Ferrari continues to develop the MyFerrari App,
available exclusively for Ferrari clients to enhance
and foster their connection to the Ferrari world
through the direct distribution of tailored content.
This channel enables clients to directly access fea-
tures and services, strengthening their relationship
with the brand and their preferred official Ferrari
dealer. Moreover, Ferrari dedicates specific atten-
tion to Ferrari clients who have ordered a new car
by enriching their waiting time with dedicated digital
content to reinforce their engagement and connec-
tion with the Ferrari world.
Client and Brand Events
Client events are a cornerstone in fostering a sense
of community and loyalty within the Ferrari family.
In May 2024, we organized a truly remarkable
gathering in Miami, where Ferrari hosted a series
of unforgettable events bringing together the three
key dimensions of Ferrari — Racing, Sports Cars,
and Lifestyle — marking a global celebration with
the Cavalcade International. The event included
the 12Cilindri World Premiere (Sports Cars), the F1
Grand Prix (Racing) and the Capsule collection pre-
sentation (Lifestyle).
In June 2024 Ferrari organized a Casa Ferrari
event at the Le Mans circuit, hosting approximately
900 guests and including accommodations within
the circuit for a limited number of clients in cele-
bration of the 24 Hours of Le Mans. The members of
the Hyperclub and Le Club programmes, as well as
other international clients, came together to experi-
ence the adrenaline of one of the world’s most iconic
race. Casa Ferrari served as the vibrant epicenter
throughout the weekend, culminating in Ferrari’s his-
toric 1st and 2nd place finish with the 499P Hypercar.
October 2024 was the busiest month on the
event calendar. The launch of the F80 took place
in the brand-new e-building, a futuristic venue that
perfectly balances Ferrari’s rich tradition with for-
ward-thinking innovation, symbolizing the compa-
ny’s future journey.
The month closed with the Finali Mondiali at Imola,
a celebration of the racing season, where clients were
welcomed to Casa Ferrari for a fusion of adrenaline
and lifestyle throughout a week of racing activities.
Client Experience on Road
Ferrari’s driving events have two main goals: provid-
ing clients with the excitement of driving Ferrari’s
high-performance cars and strengthening brand
loyalty to encourage continued engagement. These
events are designed for a passionate and varied
Ferrari community, offering tailored experiences
for modern car enthusiasts, classic car collectors,
and track racing loyalists.
Encouraging clients’ passion for driving is a key
aspect of Ferrari’s commercial strategy, especially
in markets where racing traditions are less estab-
lished. Among our programs and events are:
• Esperienza Ferrari: which offers exclusive driv-
ing sessions with Ferrari’s expert instructors,
providing an opportunity for both prospective
and existing clients to experience the latest mod-
els. Throughout 2024, the Esperienza Ferrari
program at Fiorano allowed clients to engage
with the Ferrari brand firsthand, testing models
such as the Ferrari Roma Spider on the road and
the 296 GTB on the track; and
• Corso Pilota: a program that consists of driving
courses designed to accommodate various skill
levels, offering essential techniques for master-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
69
BOARD REPORT
ing high-performance vehicles. For instance, the
Corso Pilota Classiche usually offers a unique
opportunity to drive Ferrari’s iconic models on
Fiorano, our company’s historic race circuit, and
on the frozen lake of St Moritz.
In addition to the Miami Cavalcade International ex-
perience in May, the Cavalcade journey continued in
late June and early July with the Ferrari Cavalcade
event in Venice, where participants drove scenic
roads through historic hilltop towns with breathtak-
ing views of the Dolomites. The event culminated in
an exclusive gala dinner on July 4th, which included
a charity auction aimed at supporting Ferrari’s com-
mitment to education.
Moreover,
the
Cavalcade
Classiche
Family
Reunion, held in mid-September, provided a “travel-
ing museum” experience, showcasing over 60 clas-
sic Ferrari models. This event allowed participants
to explore the stunning landscapes of Friuli Venezia
Giulia and Slovenia.
In addition to the above, Ferrari takes part in
prestigious driving events such as the Ferrari
Tribute to Mille Miglia and the Ferrari Tribute to Targa
Florio, where modern Ferrari cars race before the
commencement of the main events. In 2024, Ferrari
also honored the 24 Hours of Le Mans with a five-
day tour showcasing some of Maranello’s most
iconic cars, traveling from Cognac to the La Sarthe
circuit. The Ferrari Tribute to Le Mans ended with a
parade around the track on the Saturday morning
before the race.
• Ferrari Tours: we also offer owners a unique op-
portunity to embark on exclusive journeys across
Italy, allowing them to experience the thrill of driv-
ing their cars through some of the world’s most
stunning and meticulously chosen landscapes.
These carefully crafted routes are designed to
provide not only exhilarating driving experienc-
es but also the chance to discover cultural land-
marks, scenic vistas, and luxurious destinations,
making for an unforgettable adventure. In 2024,
three Ferrari Tours were specifically dedicated
to our clients from the Far and Middle East.
Ferrari also organized the Legacy Tour, of which we
held the second edition in 2024, celebrating the 40th
anniversary of the Ferrari 288 GTO. Over three days,
more than 20 Ferrari GTOs from around the world
travelled across Italy’s most scenic roads, ending in
Fiorano, the birthplace of this iconic model.
Client Experience On Track
In 2024, the Corse Clienti season was intense, rich
in innovation and participation, confirm the growth
trend observed in recent years.
With the Ferrari Challenge Trofeo Pirelli we intro-
duced the Ferrari 296 Challenge in the international
series (Europe and North America), the ninth Ferrari
car in the history of the one-make series, which was
presented during the Finali Mondiali. At events in
Europe and the United States it was met with great
enthusiasm by participants, resulting in an average
of 70 drivers on the entry list for European events and
80 for U.S. events. Participation at series events in the
UK and Japan were in line with previous years. The
introduction of the Australasia series was announced
during the year and will start in 2025 with the Ferrari
296 Challenge competing on tracks in Australia.
The Ferrari Challenge Trofeo Pirelli event that
closed the Corse Clienti competitive season took
place at Imola, where it registered record atten-
dance of 33,000 fans despite challenging weather
conditions. A total of 111 drivers from 28 different
countries entered the races, competing in the final
rounds of the European and North American series,
as well as for the world championship title. Before
the beginning of the Ferrari show that took place on
Sunday October 20, 2024, to celebrate victories at the
24 Hours of Le Mans and the Lone Star Le Mans; two
499P, the cars numbered 50 and 51, which competed
in the FIA World Endurance Championship, took
part in a parade starting from the center of Imola
and culminating on the Santerno circuit, where they
appeared alongside the F80 and other cars from the
Endurance and Corse Clienti departments.
Additionally, in 2024 we launched the new Sport
Prototipi Clienti program with the Ferrari 499P
Modificata, allowing owners of the car derived from
the Hypercar 499P that won the 24 Hours of Le Mans
to participate in a dedicated event shared with F1
Clienti and XX Programme. The first event of the new
programme was held in March, at the Mugello circuit,
with a 499P Modificata running on the Tuscan track.
Over the course of the year, the number of partici-
pants rose to 10 during the Finali Mondiali weekend
held at Imola in October.
The non-competitive programs, F1 Clienti, XX
Programme, and Club Competizioni GT, take part in
exclusive non-competitive events on the world’s
most iconic tracks, organizing prestigious experi-
ences for clients, both on and off the track. At this
year’s Finali Mondiali, a record-breaking 130 drivers
and 101 cars registered, marking the highest num-
ber of participants in a single event.
The Corso Pilota continued to offer customers
a variety of track driving courses catering to differ-
ent skill levels and experiences (Sport, Evoluzione+,
Race, On Ice) or service (Personal Coaching), teach-
ing essential skills for high-performance cars using
the most advanced and effective teaching method-
ologies and technologies.
Ferrari Classiche
The Ferrari Classiche department supports Ferrari
clients in managing their historic Ferrari vehicles
(over 20 years from their production) with the ob-
jective of keeping as many of these classic cars on
the road as possible. Services include the certifica-
tion of the authenticity of classic Ferrari cars and
vehicles of particular historical relevance, the man-
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BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
agement of Ferrari restoration and repair activities,
as well as the management of Ferrari spare parts,
including when these are no longer available on the
market. The department also provides advice on
repair operations carried out on Ferrari Classiche
cars within its network.
Ferrari Classiche aims to create a platform of
information and technical expertise to preserve
and enhance over time the awareness and value of
Ferrari’s heritage and brand. We view the surviving
Ferrari vehicles of historical value as the tangible leg-
acy and incarnation of our brand. The Ferrari Classiche
department also supports and encourages the direct
participation of clients in strategic historical events.
The Ferrari Classiche department in Maranello
consists of an office of specialists and a work-
shop in which historic cars are checked, restored
and repaired. In addition, in order to provide an
enhanced service to owners away from the main
workshop in Maranello, starting from 2017 Ferrari
Classiche authorized a new service network with 73
Officina Ferrari Classiche workshops active to date,
primarily for vehicle repairs and the certifications’
inspections or revalidation. The network is expected
to expand in the future.
The authenticity of the car with respect to the ini-
tial specifications is checked via a technical inspec-
tion, performed either at the Ferrari Classiche
facility in Maranello or at an authorized workshop,
and benefits from a comprehensive archive con-
taining drawings of each of the individual chassis
and details of historical components. Based on the
evidence gathered during this inspection, the car is
then presented to an expert committee, chaired by
the founder’s son, Piero Ferrari, for the certification.
At the Maranello workshop, Ferrari Classiche
carries out full restorations or maintenance ser-
vices using either original components and spare
parts or replicas manufactured in accordance with
the original specifications. Our service offers our cli-
ents the opportunity to restore or maintain any clas-
sic Ferrari to its original pristine conditions.
The Ferrari Classiche department also provides
basic technical and instructional support to the
Ferrari Classiche Academy, a new driving school
project that launched in 2019 for vintage Ferrari
cars, including the Ferrari 308, Ferrari 328, 550
Maranello, MondialT, 250 GT Lusso, 365 GTB4.
The Ferrari Classiche department also offers
assistance services to clients willing to attend driv-
ing events (such as 1000 Miglia or other rally and
tour) or static events (such as concours of elegance).
RACING
Participation in the FIA Formula 1 World Championship
with Scuderia Ferrari and in the World Endurance
Championship with the Ferrari Endurance Team is a
core element of our marketing effort and promotion-
al activities, as well as an important source of inno-
vation for the support of the technological advance-
ment of Ferrari’s product portfolio. We also compete
in the F1 Esports Championship with the Scuderia
Ferrari Esports Team and we own the Mugello racing
circuit in Scarperia, near Florence, which we rent to
racing events organizers. Each of these items is fur-
ther discussed below.
Formula 1
The FIA Formula 1 World Championship is the pin-
nacle of motorsports and one of the most watched
annual sports series in the world, with approximate-
ly 1.3 billion cumulative TV audience, 65 million aver-
age weekend viewership, 20 million average digital
and F1 TV viewership and 94 million social media fol-
lowers (Source: 2024 Liberty Investor Meeting).
Formula 1 cars rely on advanced technology, pow-
erful hybrid engines and cutting edge aerodynamics.
While Europe is the sport’s traditional base, longstand-
ing non-European venues such as Australia, Brazil,
Canada, Japan, Mexico and the United States have
been joined in the last two decades by racing venues
in China, Bahrain, United Arab Emirates, Singapore,
Qatar, Saudi Arabia and Azerbaijan. This provides
participants in the Formula 1 World Championship
exceptional visibility on the world stage.
Scuderia Ferrari has been racing in the Formula
1 World Championship since the series was launched
in 1950, and won its first Grand Prix in 1951. We
are the only team that has competed in each sea-
son since launch and the oldest and most success-
ful in the history of Formula 1, with 248 Grand Prix
wins. Throughout our racing history, we have won
15 Drivers’ Championships and 16 Constructors’
Championships, more than any other team. Many of the
best known drivers in the sport’s history have raced
in Scuderia Ferrari’s distinctive red cars including
Alberto Ascari, Juan-Manuel Fangio, Mike Hawthorn,
Phil Hill, John Surtees, Niki Lauda, Jody Scheckter,
Gilles Villeneuve, Michael Schumacher, Sebastian
Vettel and Kimi Raikkonen. Our drivers’ line-up in 2024
comprised Charles Leclerc, the first graduate of the
Ferrari Driver Academy training scheme to race for
our Formula 1 racing team, and Carlos Sainz, a tal-
ented and experienced Spanish driver.
In 2021, the new FIA financial regulations entered
into force and are now applicable as updated in 2024,
imposing a cap on certain expenses and invest-
ments related to operations and the chassis of the
cars which may be incurred by any single Formula 1
team. Moreover, development activities were also
limited by the new regulation. In December 2021,
the World Motor Sport Council validated the frame-
work for the 2026 Power Unit (PU) Regulations,
which include technical, operational and financial
guidelines. The framework identifies key objectives
related to, among other things, the environmental
impact, cost reduction measures and competitive-
ness of the FIA Formula 1 World Championship.
A detailed document setting out the 2026 Power
Unit Regulations was submitted to the World Motor
Sport Council during the course of 2022. They will
apply to power units starting from the 2026 sea-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
71
BOARD REPORT
son of the FIA Formula 1 World Championship and,
consistent with the framework proposed to the
Council, are mainly focused on the sustainability
and innovation challenges of Formula 1. The 2026
Formula 1 Power Unit Regulations were approved in
August 2022 and apply starting in 2023 for motors
to be used in the 2026 season. In 2022, the World
Motor Sport Council also approved changes to the
2022 and 2023 Formula 1 Technical Regulations to
address safety matters.
The
Formula
1
2024
World
Championship
included 24 races.
In terms of results, the season ended with
second place for the Scuderia Ferrari in the
Constructors’ Championship, with 652 points, five
victories, twenty two podiums, four pole positions,
and with third and fifth place finishes in the Drivers’
Championship, for Charles Leclerc and Carlos
Sainz, respectively.
Scuderia Ferrari’s continuing participation in the FIA
Formula 1 World Championship over the five year
period from 2021 to 2025 is governed by two agree-
ments – widely known as New Concorde Agreement
- signed on August 18, 2020. The first of such agree-
ments governs the regulatory and governance as-
pects of the sport, and the second governs the com-
mercial aspects. The New Concorde Agreement
recognizes the historical role of Ferrari, the only
team that has participated in all Formula 1 World
Championship editions since its inception. In ex-
change for their participation in Formula 1 races, the
participating teams receive a share of a prize fund
based on the profits earned from Formula 1-related
commercial activities managed by Formula 1, in-
cluding in particular, promoters’ fees, television
broadcasting royalties, partnership agreements
and other sources. Shares in the prize fund are paid
to the teams, largely based on the relative ranking of
each team in the championship.
Improvements in technology and, from time
to time, changes in regulations typically require
the design and production of a new racing car
every year. Therefore, in addition to our long-
term research and development efforts, we begin
designing our cars each year in the spring, in
anticipation of the start of the racing season the
following March. While the chassis and the power
unit we build each year are designed to be used
throughout the racing season, the majority of
other components fitted on our cars are adjusted
from race to race depending on the characteris-
tics of the circuits.
To maximize the performance, efficiency and safe-
ty of our Formula 1 cars, while complying with the
strict technical rules and restrictions set out by the
FIA, our research and development team plays a key
role in the development of our road cars and their
engines. We often transfer technologies initially de-
veloped for racing to our road cars. Examples in-
clude steering wheel paddles for gear-shifting, the
use and development of composite materials, which
make cars lighter and faster, aerodynamic concepts
and technology related to hybrid propulsion.
Our road cars (especially our sports car models)
have benefited from the know-how acquired in the
wind tunnel by our racing car development teams,
enjoying greater stability as they reach high speeds
on and off the track. Our research and development
team focus on combining minimal lap times with
maximum efficiency, leading to advances in kinetic
energy recovery systems, or ERS, technology.
Current advanced ERS features two electric motor/
generator units in every car, which allow the car to
recover, store and deploy energy generated both by
the vehicle during braking and by the exhaust gases
through a turbocharger.
The great visibility, both on traditional media and
on digital platforms, that Scuderia Ferrari obtains
thanks to its participation in the FIA Formula 1 World
Championship continues to attract significant spon-
sorships. The visibility and placement of partner
logos on the car and team uniforms reflect their
respective level of sponsorship.
We use the platform provided by Formula 1
for a number of associated marketing initiatives,
such as the hosting of clients and other key part-
ners in Ferrari Formula 1 Club Hospitality to watch
and experience the Grand Prix races with Scuderia
Ferrari, and our Formula 1 drivers’ participation in
various promotional activities for our road cars. We
also often sell older Formula 1 cars to clients for use
in amateur racing or collection.
More generally, Formula 1 racing allows us to
promote and market our brand and technology to
a global audience without resorting to traditional
advertising activities, therefore preserving the aura
of exclusivity around our brand and limiting the mar-
keting costs that we, as a company operating in the
luxury industry, would otherwise incur.
World Endurance Championship
For the second consecutive year, Ferrari com-
peted in the top class of the FIA World Endurance
Championship, with two 499P cars fielded by the of-
ficial Ferrari – AF Corse team in the Hypercar class,
achieving very positive results. Ferrari made it to
the podium with a third place in the Constructors’
standings, while the crews of the 499P numbered
50 ranked second in the Drivers’ standings. The
Ferrari team – AF Corse secured four race podi-
ums, including the victory at the 24 Hours of Le Mans
where 499P car number 50 driven by Fuoco-Molina-
Nielsen secured victory in front of a record crowd at
the Circuit de La Sarthe of approximately 329 thou-
sand spectators. This was the second consecutive
victory, following the 2023 win at the Centenary 24
Hours of Le Mans of the 499P car number 51 driven
by Pier Guidi-Calado-Giovinazzi.
The private car numbered 83 achieved an over-
all victory at the Lone Star Le Mans in Austin (USA)
and during the season accumulated two first-place
finishes and six class podiums, earning third place in
the FIA World Cup for Hypercar Teams.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The 296 LMGT3 made its debut in the LMGTE Am
class, displaying steadily improving performance
throughout the season. The two cars fielded by the
official Vista AF Corse team achieved victories in
the final two races, the 6 Hours of Fuji with the car
driven by Rigon-Flohr-Castellacci and the 8 Hours of
Bahrain with the car driven by Rovera-Heriau-Mann.
Other GT Races
During the 24 Hours of Daytona, the first round of
the IMSA SportsCar Championship held in January
2024, Ferrari returned to victory in the iconic
American endurance race after ten years, thanks to
the result of the Ferrari 296 GT3 fielded by the Risi
Competizione team and driven by Rigon-Serra-Pier
Guidi-Calado. This success marked the beginning
of a season where class victories and podiums con-
firmed the growth of the 296 GT3.
Indeed, the Ferrari 296 GT3 excelled in the most
important championship for GT3 cars, the GT World
Challenge Europe. With a third-place finish at the 6
Hours of Jeddah, Alessandro Pier Guidi and Alessio
Rovera became champions in the overall standings
of the Endurance Championship, while AF Corse
– Francorchamps Motors triumphed in the most
prestigious team category. The Driver and Team
titles in the Gold Cup went to the crew of number 93
Sky Tempesta Racing car, driven by Jonathan Hui,
Christopher Froggatt, and Eddie Cheever. Having
also won the Sprint Cup, Cheever and Hui claimed
the combined title in the Bronze class of the GT World
Challenge (the latter is provisional until the appeal
window for the result of Race 1 in Barcelona closes).
By the end of 2024, the Ferrari 296 GT3 had
secured 8 Driver titles and 5 Team titles across the
various series, adding to the many titles won in the
debut season in 2023. Among the 100 victories
achieved, which also include those in the LMGT3 con-
figuration, 24 are overall wins and 76 are class wins.
Scuderia Ferrari Esports Team
To further enhance the Ferrari experience, we have
been increasing our focus on E-sports and the Scuderia
Ferrari Esports Team now competes in the F1 Esports
Sim Racing GT Challenge, Formula Sim Racing, VEC
and SRO Esports Championship. Starting from 2023,
the Ferrari Esports Series expanded to cover Europe,
North America, and Asia Pacific with the aim to find
new drivers for the Ferrari Esports Team and a pro-
gram to reach a younger audience worldwide.
Mugello Circuit
Located in Scarperia just outside Firenze, for
more than 100 years the Mugello Circuit has been
one of the leading motorsport venues globally.
Internationally renowned as the host venue for the
Italian MotoGP Grand Prix since 1976 (and consec-
utively since 1994), the Formula 1 Grand Prix of
Tuscany Ferrari 1000 in 2020, and numerous in-
ternational motorsports competitions, the 5,245
metres circuit mimicking the natural slopes of the
Tuscan hills is also famed for its ultimate driving ex-
perience and modern facilities.
Originally a 66 km road circuit, the first motor-
sport events held at Mugello starting from 1914 were
regularity. Enzo Ferrari won in 1921 on an Alfa Romeo
class 4.500. The current facilities were designed in
the early 70’s and later re-modelled in 1988 when
Ferrari bought the circuit. Year after year the track
has seen consistent improvements in terms of safety
with FIA Grade 1 and FIM Grade A certifications, the
highest levels of homologation for a racetrack.
In 2024, the circuit hosted 250 days of track activ-
ities and 16 race weekends.
The circuit was awarded the prize for the Best
Grand Prix circuit for a MotoGP event five times
(1995, 1996, 1997, 2000, 2011), and is also a leader
in terms of its sustainability practices. It was the
first circuit in the world to obtain FIA’s prestigious
“Achievement of Excellence” in 2015 and to be
certified according to the sustainable event man-
agement system ISO 20121. Same as in 2023, in
2024, the annual analysis carried out by Enovation
Consulting ltd. on 97 circuits worldwide, 23 of which
host or have hosted a Formula 1 Grand Prix, con-
tinued to feature the Mugello Circuit on top of the
Sustainable Circuits Index, that ranks the sustain-
ability performance of global circuits against seven
key sustainability factors: certifications, accredita-
tions, awards, environmental performance, social
performance, economic impact, and sustainability
approach and engagement.
In 2024 all certifications (ISO 9001, ISO 14001,
ISO 20121, Eco-Management & Audit Scheme)
were renewed, including for the international stan-
dards for sustainable and event management as
well as the system of safety and health manage-
ment on workplaces.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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LIFESTYLE
Ferrari’s presence in the wider luxury landscape is
key to ensure brand relevance across generations.
The role of Ferrari lifestyle is to foster growth by
broadening our client base and expanding our val-
ue proposition beyond our core business, while pre-
serving our brand’s DNA, its heritage and values.
The goal and mission of our lifestyle strategy
is that of bringing to life a universe that encapsu-
lates Ferrari’s DNA while accompanying our clients
through different stages and moments of their lives.
Over the past years, to strengthen brand desir-
ability, Ferrari:
• Entered into the personal luxury goods segment,
a critical segment to broaden our client base,
amplifying cultural relevance for the brand es-
pecially for future generations. We also launched
our clothing and apparel collection through ded-
icated fashion shows.
• Created a new organizational structure, formed
by a dedicated and talented team with fashion
and luxury expertise based in Milan and working
closely with our team in Maranello.
• Rationalized its licenses by terminating approxi-
mately half of its license agreements where the
product offering and distribution was not con-
sistent with the positioning of the Ferrari brand.
• Completed the rationalization of the retail network
by closing 7 franchised stores and 4 directly op-
erated stores considered unsuitable for Ferrari’s
luxury positioning. We have since relocated and
restyled our existing flagship boutiques and
opened 3 new ones in the United States. Our in-
ternational network of Ferrari Stores consisted
of 15 Ferrari-owned directly operated stores and
2 franchised stores as of December 31, 2024.
Ferrari
Lifestyle
has
three
pillars:
(1)
Personal
Luxury
Goods,
(2) Collectibles and (3) Experience.
1
Personal Luxury Goods – dedicated to our own refined collection – ac-
cessories, apparel and selected merchandising – embodying the style,
creativity and quality that we stand for, balancing exclusiveness and in-
clusiveness through a carefully combined mix of product categories.
Importantly, we will continue to strengthen partnerships with selected
licensees, which will allow us to play in complementary territories/cat-
egories while being loyal to our brand’s DNA and positioning. Through
our network of directly operated stores, we offer a wide range of Ferrari
branded products, including our fashion collection and selected mer-
chandising and licenses.
PERSONAL LUXURY GOODS – COLLECTION
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
2
Collectibles – builds on the concept of collectability by enlarging and
customizing the portfolio of available Ferrari tokens and the offer of
Ferrari branded products such as high-end watches and high-end writ-
ing instruments, consumer electronics, sportswear, toys, leading video
games, and other accessories. We will continue to expand the offer of
products such as limited editions and one-off artifacts embodying the
inherent craftsmanship and innovative spirit that lie behind the creation,
design and manufacture of our cars.
3
Experience – Through this pillar we intend to nurture our heritage and
celebrate our craftsmanship through dedicated and tailor-made expe-
riences. We capture the essence of the Ferrari spirit by immersing cus-
tomers in the racing history, passion and values of Ferrari, through our
Ferrari museums in Modena and Maranello (which attracted more than
850,000 visitors in 2024), Il Cavallino restaurant in Maranello and our
theme parks in Abu Dhabi and Spain.
COLLECTIBLES AND MEMORABILIA
MUSEUM AND PARKS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
75
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INTELLECTUAL PROPERTY
We own a number of registered designs and utility
patents. We expect the number to grow as we con-
tinue to pursue technological innovations and to de-
velop our design and brand activities.
We file patent applications in Europe, and around
the world (including in the United States) to protect
technology and improvements considered import-
ant to our business. No single patent is material to our
business as a whole.
We also own a number of registered trademarks,
designs and patents, including approximately 550
trademarks (word or figurative), registered in sev-
eral countries and across a number classes. In par-
ticular, we ensure that the maximum level of protec-
tion is given to the following iconic trademarks, for
which we own approximately 4,250 applications/
registrations in approximately 150 countries, in
most of the main classes for goods and services:
The names of our Range, Special Series, Icona and
Supercar models and Formula 1 single-seater mod-
els are also registered as trademarks (and logo-
types) and we also register their domain names and
the cars’ design.
The protection of intellectual property is also
increasingly important in connection with our design
and brand activities. Therefore, we adopt and follow
internal processes and procedures to ensure both
that all necessary protection is given to our intellec-
tual property rights and that no third party rights
are infringed by us. In addition, we are particularly
active in seeking to limit any counterfeiting activities
regarding our Ferrari branded products around the
world. To reach this goal we closely monitor trade-
mark applications and domain names worldwide,
actively interact with national and local authorities
and customs and avail ourselves of a network of
experienced outside counsels.
PROPERTIES
Our principal manufacturing facility is located in
Maranello (Modena), Italy. It has an aggregate cov-
ered area of approximately 832 thousand square
meters. Our Maranello plant hosts our corporate of-
fices and most of the facilities we operate for the de-
sign, development and production of our road and
track cars, as well as of our Formula 1 single-seat-
ers. (See “—Manufacturing”). Except for some leased
technical equipment, we own all of our facilities and
equipment in Maranello.
In recent years, we have made significant invest-
ments in our manufacturing facilities. In 2015, we
completed construction of the new building entirely
dedicated to our Formula 1 team and racing activi-
ties, as well as the new wind tunnel 4WD. In 2018, we
completed the new building for the Ferrari Design
Centre, which covers more than 7 thousand square
meters. In 2019, we completed the office area and
workshop area of the New Technical Center for
the development of engines and hybrid systems.
The entire building and the engine and hybrid test
benches cover an area of approximately 20 thou-
sand square meters and were completed in 2021.
In 2021, we completed the construction of the
new building related to new GT sport activities
(which covers an area of approximately 6 thousand
REGISTERED TRADEMARKS, DESIGNS AND PATENTS
“FERRARI” (WORD)
“FERRARI” LOGOTYPE
THE “PRANCING HORSE” (FIGURATIVE)
THE TRADEMARK (FIGURATIVE)
THE RACING SHIELD (FIGURATIVE)
SCUDERIA FERRARI (WORD & FIGURATIVE)
FERRARI
SCUDERIA
FERRARI
76
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
square meters near the Fiorano track), the new
building for our Formula 1 simulator and the ren-
ovation of the offices used by our Marketing and
Commercial department.
Between 2019 and 2022 Ferrari acquired land
and buildings near its Maranello plants and started
the construction of the e-building, which we inau-
gurated in June 2024 and is based on the concept of
flexibility. With a total floor space of over 40 thousand
square meters, the e-building is a strategic asset for
the construction of electric motors, batteries, elec-
tric axles and vehicle assembly. It features two floors,
designed to achieve maximum levels of energy per-
formance with heat pump air conditioning systems
and a 1.3 MW photovoltaic system installed on the
roof. Externally, the building is mainly made with both
opaline and transparent glass panels which guaran-
tee a high internal diffusion of natural light and high
visual comfort, also supported by the study of colors
and modern lighting materials. In addition to con-
densing the best characteristics of environmental
sustainability, the building offers internal and exter-
nal spaces intended for the well-being of people
through the presence of numerous relaxation areas.
In 2023 Ferrari added an additional 8 thousand
square meters to the New Technical Center in order
to speed up the development of electrification activ-
ities and boost the ability to test the strategic prod-
uct range components. Furthermore, to support the
development and production of Formula 1 compo-
nents, the Mechanical department was expanded
by approximately 2 thousand square meters. The
increasing number of employees has made it neces-
sary to construct, expand and modernize offices and
workspaces. The new Marketing and Commercial
Department offices and the 4WD Wind Tunnel
enlargement, which enables the entire Product
Development to accommodate more resources in
line with the range plan, have been identified as the
most significant buildings in 2023. The total area of
these recently constructed buildings is about 4 thou-
sand square meters. In order to attract the attention
of Ferrari collaborators, we also moved forward
with the development and restructuring of certain
related facilities (company restaurant, health & care
rooms, and infirmary).
In 2024 we began the construction of our new
paint shop on land we acquired in previous years.
It will feature total space of approximately 65 thou-
sand square meters over two floors. The new paint
shop is an important element in our personalization
offer in terms of the aesthetic appeal of our cars
for Ferrari customers and it is being designed with
innovative processes using state of the art painting
technologies and a significant focus on sustainability
and energy efficiency.
Adjacent to the plant is our Fiorano track, built
in 1972 and remodeled in 1996, and which covers
approximately 3 thousand meters.
The track also houses the Formula 1 logistics
offices. Additional facilities in Maranello include a
product development center, a hospitality area and
the Ferrari museum.
We also own the Mugello racing circuit in
Scarperia, near Florence, which we rent to racing
events organizers (see “—Racing—Mugello Circuit”).
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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We
own
a
second
plant
in
Modena,
named
Carrozzeria Scaglietti. At this approximately 26 thou-
sand square meter plant we manufacture aluminum
bodyworks for our regular Range, Special Series
and prototype cars.
The total carrying value of our property, plant and
equipment at December 31, 2024 was €1,829 million.
EMPLOYEES
Human capital is a decisive factor in our success,
building on our position as a global leader in the
luxury sector and creating long-term, sustainable
value. To recognize excellence, encourage profes-
sional development and create equal opportunities,
we adopt several initiatives, including our appraisal
system to assess our middle-managers and white
collar employees through performance manage-
ment metrics; our talent management and succes-
sion planning, in addition to assessment plans for
blue collars; training and skill-building initiatives;
employee satisfaction and engagement surveys,
including our so-called “Ferrari League” programs;
and flexible work arrangements, commuting pro-
grams and a dedicated welfare program, Formula
Benessere, which includes, among other programs,
Formula Benessere Check-Up (provided for 2,528
employees) and Formula Benessere Junior (provid-
ed for 1,082 children), offering medical assistance
to employees and their children and Formula Estate
Junior (offering Summer Campus to the children of
employees).
Starting in June 2024, a Formula Benessere
Check-Up initiative was launched for all employees
of the Group’s Italian companies: a medical-health
check-up offered annually and to be carried out
in-house during working hours and the extension
of the Formula Benessere Junior project to the
4-18 age group (compared to the current 5-15 age
group). Initiatives to support parenthood were also
announced, which include greater flexibility for
those who can work in agile mode and paid leave for
employees with children up to the age of 10.
On December 31, 2024, we had a total of 5,435
employees, including 170 managers and senior
managers. Of these employees, 5,088 were based
in Italy (primarily at our Maranello facility) and 347
were based in offices around the world (including
24 managers and senior managers), mostly in North
America and China.
December 31,
2024
2023
2022
White-collar employees and middle-managers
2,769
2,568
2,441
Italy
2,458
2,282
2,163
Rest of the world
311
286
278
Blue-collar employees
2,496
2,259
2,326
Italy
2,488
2,250
2,317
Rest of the world
8
9
9
Managers and senior managers
170
161
152
Total
5,435
4,988
4,919
Approximately
11
percent
of
the
employees
were trade union members in 2024. Our em-
ployees’ principal trade unions are Federazione
Italiana Metalmeccanici (FIM-CISL), Unione Italiana
Lavoratori Metalmeccanici (UILM-UIL), Federazione
Italiana
Sindacati
Metalmeccanici
e
Industrie
Collegate (FISMIC) and Federazione Impiegati Operai
Metallurgici (FIOM-CGIL).
All our managers are covered by collective
bargaining agreements signed by the Italian trade
union, Federmanager, signed on April 28, 2023. Our
other employees are covered by two agreements:
the first one entered into by FCA, CNH Industrial,
Iveco and Ferrari with FIM-CISL, UILM-IUL, FISMIC,
UGL and AQCF, signed on March 8, 2023; the second
one entered into by Ferrari and FIM-CISL, UILM-IUL,
FISMIC, signed on November 13, 2023 and named
“Accordo Premio di Competitività Ferrari”, which
includes, among other things, the payment of
bonuses linked to performance for certain catego-
ries of employees.
On March 11, 2024, we launched a new share-
holder plan available to all employees in Italy,
extended to employees of subsidiaries abroad start-
ing from September 23, 2024.
In addition to the collective bargaining agree-
ments, we have individually negotiated agreements
with several of our managers and other key employ-
ees providing for long-term incentives, exclusivity
and non-compete provisions.
REGULATORY MATTERS
We manufacture and sell our cars around the world
and our operations are therefore subject to a va-
riety of laws and regulations relating to environ-
mental, health and safety and other matters. These
laws regulate our cars, including their emissions,
78
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
fuel consumption, safety, and connectivity as well
as our manufacturing facilities and operations, set-
ting strict requirements on emissions, treatment
and disposal of waste, water and hazardous mate-
rials and prohibitions on environmental contami-
nation. Our vehicles, together with the engines that
power them, must comply with extensive regional,
national and local laws and regulations, and indus-
try self-regulations (including those that regulate
vehicle safety). However, we currently benefit from
certain regulatory exemptions, because we qualify
as an SVM or similar designation in certain jurisdic-
tions where we sell cars. As outlined below, these
exemptions provide a range of benefits, from less
stringent emissions caps and compliance date ex-
tensions, to exemptions from zero emission vehicle
production requirements.
We are in compliance with the relevant regula-
tory requirements affecting our facilities and prod-
ucts around the world. We constantly monitor such
requirements and adjust our operations as neces-
sary to remain in compliance.
APPROVAL AND MARKET SURVEILLANCE
In 2018, the European Parliament and European
Council
issued
Regulation
2018/858,
establish-
ing the new framework for the approval and
market surveillance of motor vehicles (repealing
Directive 2007/46/EC). While the previous regula-
tory framework of Directive 2007/46/EC was fo-
cused on technical standards, the new regulation
has a broader scope by including market surveil-
lance requirements in order to ensure the enforce-
ment of applicable standards. The key objectives of
Regulation 2018/858 are: enhancing the indepen-
dence of technical services (i.e. the approved testing
laboratories) as well as improving the quality of the
testing of vehicles and setting stricter requirements
for technical services; introducing market surveil-
lance in order to verify the conformity of vehicles on
the market to the applicable standards, and requir-
ing corrective measures in case of non-compliance
or where a vehicle poses a safety risk or a risk to the
environment; strengthening the type approval sys-
tem with more stringent oversight by the EU. The
Commission has the power to suspend, restrict or
withdraw the designation of technical services, to
order recalls, and to impose financial penalties.
GREENHOUSE GAS/CO2/FUEL
ECONOMY LEGISLATION
European legislation limited fleet average green-
house gas emissions for new passenger cars to 130
grams of CO2 per kilometer for the period 2015-2019.
Due to our SVM status under EU regulations we ben-
efited from a derogation from the 130 grams per
kilometer emissions requirement available to small
volume and niche manufacturers during that pe-
riod. Pursuant to that derogation, we were instead
required to meet yearly CO2 emissions targets, be-
ginning in 2012, reaching a target level of 290 grams
per kilometer in 2016 for our fleet of EU-registered
vehicles that year. Despite global shipments ex-
ceeding 10,000 vehicles in 2019, Ferrari continued
to qualify as an SVM under EU regulations, because
its total number of registered vehicles in the EU per
year is less than 10,000 vehicles.
In 2014, the European Union set new 2020 emis-
sions targets, calling for 95 percent of a manufac-
turer’s full fleet of new passenger cars registered in
the EU in 2020 to average 95 grams of CO2 per kilo-
meter, rising to 100 percent of the fleet in 2021. The
2014 regulation extends the small volume and niche
manufacturers derogation. Pursuant to the deroga-
tion approved by the European Commission follow-
ing our petition, we were required to meet certain
CO2 emissions target levels in the 2017-2021 period,
reaching a target of 277 grams per kilometer in 2021
for our fleet of EU-registered cars that year.
In 2019, the European Union set new 2025 and
2030 emissions targets, calling for respectively a
15 percent and 37.5 percent reduction of the tar-
get applicable in 2021. An incentive mechanism for
zero and low emission vehicles was also introduced.
This new regulation (EU 2019/631) continues to state
that it is not appropriate to use the same method
to determine the emissions reduction targets for
large volume manufacturers as for small volume
manufacturers that are considered as independent.
Therefore, Ferrari and other SVMs have the possi-
bility to continue to apply for alternative emissions
reduction and are required to submit the application
at the latest by October 31 of the year in which the
related derogation shall apply.
The regulation EU 2019/631 sets out new EU
rules on monitoring and reporting of average
emissions: the Commission will have to ensure the
real-world representativeness of the CO2 emission
values based on data from the fuel consumption
meters installed in new cars and will be obliged to
publish the performance of each manufacturer. For
this purpose, the Commission issued in March 2021
the Implementing Regulation EU 2021/392 requiring
manufacturers to collect and report the real-world
on-board fuel consumption monitoring (OBFCM)
data and the vehicle identification numbers of new
cars registered starting from January 1, 2021, unless
the vehicle owner expressly refuses to make that
data available. The European Commission will then
publish real-world data on an annual basis, aggre-
gated at the level of manufacturer for comparison
of the same set of vehicles between data recorded
in the certificates of conformity and the real-world
data. The first report was published in 2024. In addi-
tion, regulation EU 2019/631 requires the European
Commission to evaluate the possibility of a common
methodology for the assessment and the consistent
data reporting of full life-cycle emissions from cars.
The regulation also includes provisions on in-ser-
vice conformity testing and on detecting strategies
which may artificially improve the CO2 performance.
Because of these requirements, the European
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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Commission developed the Delegated Regulation
(EU) 2023/2867 setting out the guiding principles
for defining the in-service verification procedures.
Detailed technical provisions (e.g., test procedures,
statistical evaluations, tolerances, pass/fail criteria,
etc.) for the in-service verification procedures have
been defined in the Implementing Regulation EU
2023/2866.
The European Green Deal, adopted by the
European Commission in December 2019, has at
its core combating climate change and reaching
the objectives of the Paris Agreement and other
environmental goals (including addressing air pollu-
tion). One of its central elements is the 2050 climate
neutrality objective. The European Commission
enshrined the 2050 climate neutrality objective into
EU law entered into force in July 2021. In order to
set the EU on a sustainable path to achieve climate
neutrality by 2050, the European Commission has
also presented a net EU-wide, economy-wide plan
to reduce greenhouse gas emissions by at least 55
percent by 2030, compared to 1990 levels.
Building on the existing legislation and the EU’s
2030 climate ambitions, the European Commission
also published the “Fit for 55” Package on July 14,
2021, which includes a proposed amendment to the
regulation EU 2019/631. Regulation (EU) 2023/851
amending Regulation (EU) 2019/631 on CO2 emission
performance standards for new passenger cars
and for new light commercial vehicles was published
in the EU Official Journal on 25 April 2023 and entered
into force in May 2023. In particular, the provision
granting a derogation from the specific emissions
targets to manufacturers responsible for between
1,000 and 10,000 new passenger cars in a calendar
year will remain until 2035 included. Moreover, both
the proposals to increase the 2030 CO2 emissions
target from a 37.5% to a 55% reduction compared
to 2021 and introduce a 2035 target whereby CO2
emissions from new cars and vans would have to be
100% lower compared to 2021 have been confirmed.
For the first time, the Commission has introduced in
this Regulation a legal basis for registering vehicles
beyond 2035 running exclusively on CO2 neutral
fuels. However, specific regulatory instruments are
needed to implement this possibility.
Similarly to the EU, Switzerland introduced
CO2 emission regulations for new cars in July 2012.
Despite the existence of some specificities within
the Swiss regulation, derogations aligned with EU
regulation have been granted to SVMs up to and
including 2021. Switzerland has historically adopted
the targets approved by the European Commission.
On November 24, 2021, the Swiss Federal Council
amended the CO2 emission regulations for cars and
vans. This regulation was repealed starting from
January 1, 2022 and the vehicles of niche and small
volume manufacturers have to meet the same CO2
emission targets as the large volume manufacturers.
This change in legislation is expected to result in addi-
tional costs for Ferrari, either through penalties or
the purchase of emissions credits from other manu-
facturers. Such additional costs were not material in
2022-2024 and Ferrari does not expect that they will
be material in the future. The Swiss CO2 emissions
regulation is currently being revised, with the aim of
increasing the stringency of CO2 emissions targets
from 2025, with an effect on the related costs of
penalties and credits purchasing. Such costs are still
expected not to be material for Ferrari.
In the United States, both Corporate Average Fuel
Economy (“CAFE”) standards and greenhouse gas
emissions (“GHG”) standards are imposed on manu-
facturers of passenger cars. Because the control of
fuel economy is closely correlated with the control
of GHG emissions, the United States Environmental
Protection Agency (“EPA”) and the National Highway
Traffic Safety Administration (“NHTSA”) have sought
to harmonize fuel economy regulations with the
regulation of GHG vehicle emissions (primarily CO2).
These agencies have set the federal standards for
passenger cars and light trucks to meet an esti-
mated combined average fuel economy (CAFE) level
that is equivalent to 35.5 miles per U.S. gallon for
2016 model year vehicles (250 grams CO2 per mile).
In August 2012, these agencies extended this pro-
gram to cars and light trucks for model years 2017
through 2025, targeting an estimated combined
average emissions level of 163 grams per mile in
2025, which is equivalent to 54.5 miles per gallon.
On September 27, 2019 the EPA and the NHTSA
issued the “Safer Affordable Fuel-Efficient (SAFE)
Vehicles Rule Part One: One National Program” (SAFE
I Rule). These rules would exert federal preemption
authority under the CAFE statute over California’s
ability to regulate greenhouse gases and would
revoke the current EPA waiver under the Clean Air
Act which had authorized California to regulate GHG
from motor vehicles. The state of California along
with other states and certain NGOs filed challenges
to these rules in both U.S. District Court for the
District of Columbia and the United States Court of
Appeals D.C. Circuit. In May 2021, the NHTSA issued
a notice of proposed rulemaking proposing to fully
repeal the SAFE I Rule. In December 2021, NHTSA’s
proposal was finalized.
On March, 31, 2020 the EPA and the NHTSA issued
the final SAFE Vehicles Rule (Part Two) setting CAFE
and carbon dioxide emissions standards for model
years 2021-2026 passenger cars and light trucks.
Under the SAFE Vehicles Rule (Part Two), the overall
stringency of the federal standards is significantly
reduced from the levels previously set as the final
rule will increase stringency of CAFE and CO2 emis-
sions standards by 1.5 percent each year through
model year 2026, as compared with the standards
issued in 2012, which would have required annual
increases of approximately 5 percent. In August 2021,
the EPA published a notice of proposed rulemaking
proposing to strengthen federal GHG emissions
standards for passenger cars and light trucks by set-
ting stringent requirements for reductions from for
model years 2021-2026. This rulemaking has been
finalized in December 2021. Consistently with the
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
EPA’s approach, in September 2021 the NHTSA pub-
lished a notice of proposed rulemaking proposing
revised fuel economy standards for passenger cars
and light trucks for model years 2024-2026. In July
2022, the NHTSA’s final rule on CAFE standards for
model years 2024 through 2026 entered into force.
Specifically, model years 2024 and 2025 standards
increase in stringency by 8% each year relative to
the prior year, model year 2026 standards increase
by 10%. The CAFE standards reach approximately
49 miles per gallon in 2026 (U.S. fleet average) as
compared to 36 mpg in model year 2021, individual
manufacturer’s standards will vary from these fig-
ures depending on fleet and vehicle size mix. In April
2024, the EPA published the final rule for its 2027 and
later Multi-Pollutant Rulemaking, introducing among
other requirements, stricter emission standards of
GHGs as well as criteria and air toxic pollutants from
light- and medium-duty vehicles. The SVM GHG alter-
native standards have been removed from model
year (“MY”) 2027. Ferrari remains attentive to devel-
opments in this regard. In June 2024, also NHTSA
published the final rule setting more stringent fuel
economy standards for passenger cars, with bind-
ing targets for the model years 2027-2031.
Under current regulation, for model years 2017-
2026, the EPA allows an SVM, defined as an opera-
tionally independent manufacturer with less than
5,000 yearly unit sales in the United States, to petition
for a less stringent standard. The EPA has granted
us SVM status. We therefore petitioned the EPA for
alternative standards for the model years 2017-2021
and 2022-2025, which are aligned to our technical and
economic capabilities. On July 31, 2019 the EPA pub-
lished a Notice in the U.S. Federal Register (Federal
Register /Vol. 84, No. 147) that in part proposed that
Ferrari be permitted an alternative standard sub-
stantially in line with the alternative standard that
Ferrari proposed to the EPA for model years 2017-
2021. The EPA approved Ferrari proposed standards
for model years 2017-2020, whereas it required a
small reduction for the model year 2021 standard.
On June 25, 2020, the EPA Administrator signed
the final determination for alternative GHG stan-
dards for SVMs for model years 2017 through 2021.
Ferrari actively engaged in discussions with the EPA
throughout the years, submitting in 2018 a petition
for alternative standards in the model years 2022-
2025. No response has been received from the EPA
regarding this petition. However, in the aforemen-
tioned 2027 and later Multi-Pollutant Rulemaking final
rule published in April 2024, it is noteworthy that the
EPA allows SVMs to adhere to the 2021 standard until
the model year 2026 is included. Starting with model
year 2027, SVMs should comply with mainstream
standards with a certain phase-in. This adjustment
could impact our operations and we will closely mon-
itor developments in the upcoming fiscal year, includ-
ing purchasing credits from other manufacturers.
In September 2016, we petitioned the NHTSA
for recognition as an independent manufacturer
of less than 10,000 vehicles produced globally, and
we proposed alternative CAFE standards, for model
years 2017, 2018 and 2019. Then, in December, 2017,
we amended the petition by proposing alternative
CAFE standards for model years 2016, 2017 and
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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2018 instead, covering also the 2016 model year. In
2019, our global production exceeded 10,000 vehi-
cles, and therefore we are not considered a SVM
by the NHTSA for model year 2019. We previously
purchased the CAFE credits needed to fulfill this
deficit. On July 15, 2020, we submitted to the NHTSA
a petition for an exemption from the CAFE stan-
dards for the model year 2020. We proceeded with
this submission because, although Ferrari originally
intended to produce more than 10,000 vehicles
in 2020, actual production was lower than 10,000
vehicles as a result of the COVID-19 pandemic and
the related shutdown of our production facilities.
Therefore since we met the NHTSA definition of a
SVM, we have requested an alternative fleet aver-
age CAFE standard for model year 2020 standard. In
February 2024, NHTSA published a final decision to
exempt Ferrari from the generally applicable CAFE
standards for the model years petitioned and estab-
lished alternative standards at the levels already
achieved. We purchased the CAFE credits needed
to fulfill our model year 2021-2023 deficit and we
are currently evaluating the purchase of credits for
2024. We expect to continue to purchase credits in
the coming years if required.
As the state of California has been granted
special authority under the Clean Air Act to set its
own vehicle emission standards, the California Air
Resources Board (“CARB”) enacted regulations
under which manufacturers of vehicles for model
years 2012-2016 which are in compliance with the
EPA greenhouse gas emissions regulations are
also deemed to be in compliance with California’s
greenhouse gas emission regulations (the so-called
“deemed to comply” provision). In November 2012,
the CARB extended these rules to include model
years 2017-2025. In 2017 CARB performed a tech-
nical assessment regarding greenhouse gas stan-
dards for model years 2022 through 2025, in par-
allel with the EPA and the NHTSA, and confirmed in
March 2017 that the standards defined in 2012 may
be still considered appropriate. On December 12,
2018 the CARB amended its existing regulations to
clarify that the “deemed to comply” provision would
not be available for model years 2021-2025 if the
EPA standards for those years were altered via an
amendment of federal regulations. On September
19, 2019, the NHTSA and the EPA established the
“One National Program” for fuel economy regu-
lation, taking the first step towards finalizing the
agencies’ August 2018 proposal by announcing the
EPA’s decision to withdraw California’s waiver of
preemption under the Clean Air Act, and by affirm-
ing the NHTSA’s authority to set nationally applica-
ble regulatory standards under the preemption
provisions of the Energy Policy and Conservation
Act (EPCA). On March 9 2022, EPA rescinded its
withdrawal of the waiver for California’s light-duty
vehicle GHG and zero emission vehicle (ZEV) stan-
dards. California and Section 177 states may again
enforce those standards. Subsequently, CARB
clarified that the compliance with CARB’s GHG reg-
ulations is expected from model year 2021 for all
manufacturers. Ferrari meets the requirements
to be classified as an SVM based on the relevant
regulations in the state of California. Therefore, in
2023, in agreement with CARB, Ferrari petitioned
for SVM 2021-2025 alternative standards. In July
2024, we received official approval from CARB for
alternative standards for the MY 2021-2025. It may
be necessary also to increase the number of tests
to be performed in order to follow the CARB spe-
cific procedures.
While Europe and the United States lead the
implementation
of these fuel
consumption/CO2
emissions programs, other jurisdictions typically
follow on with adoption of similar regulations within
a few years thereafter. In China, for example, Stage
IV targeted a national average fuel consumption of
5.0L/100km by 2020. In September 2017, the Chinese
government issued the Administrative Measures on
CAFC (Corporate Average Fuel Consumption) and
NEV (New Energy Vehicle) Credits. This regulation
establishes mandatory CAFC requirements, while
providing additional flexibility for SVMs (defined as
a manufacturer with less than 2,000 units imported
in China per year that achieve a certain minimum
CAFC yearly improvement rate). Manufactures that
exceed the CAFC regulatory ceiling are required to
purchase NEV credits.
The Stage V regulation, issued on December 31,
2019, sets the fuel consumption fleet average tar-
gets for the period 2021-2025, targeting a national
average fuel consumption of 4.0 l/100km by 2025.
Following the adoption of the Stage V fuel consump-
tion regulation, an update to the Administrative
Measures on CAFC and NEV credits was published
in June 2020, keeping the additional flexibility for
SVMs and relaxing the minimum CAFC yearly
improvement rate required. The stage VI regula-
tion is currently under development with the aim
to strengthen 2026-2030 fuel consumption fleet
average targets. In addition to the fuel consump-
tion target on the entire fleet, the Chinese regula-
tion GB 19578-2021 sets specific fuel consumption
limits on model types. Currently, this standard has
not been adopted by the China Certification and
Accreditation Administration (CNCA) and is there-
fore not applicable for certification of imported
vehicles. In the current Ferrari portfolio, only the
plug-in hybrid models would be compliant with this
regulation. Ferrari is closely monitoring the ongo-
ing revision of the GB 19578-2021 standard, which
currently involves more stringent limits. Assessing
the potential implications, particularly its potential
applicability to importers, remains a priority for
us. Following the same approach also with respect
to pure electric vehicles, during 2021 the relevant
Chinese authorities have published a notice to call
for participation in a working group that should
define the energy consumption limit standards for
electric vehicles; the working group was estab-
lished in 2022 and the standard is currently in the
finalization phase.
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In the future, driving bans on combustion engine ve-
hicles could be imposed, particularly in metropolitan
areas, promoting progress in electric and hybrid
technology. On September 23, 2020, the Governor
of California issued an executive order requiring
that all in-state sales of new passenger vehicles be
zero-emission by 2035. CARB developed regulations
among the Advanced Clean Cars II (ACC II) regulato-
ry package to implement such executive order. The
ACC II regulations entered into force in November
2022 and will seek to increase the number of ze-
ro-emission vehicles (ZEVs) for sale and reduce
criteria and greenhouse gas emissions from new
light- and medium-duty vehicles beyond the 2025
model year. During 2021, the state of Washington
introduced legislation that could phase out sales of
non-ZEVs. The Washington State House bill 1204 ti-
tled “Clean Cars 2030” provides that all privately and
publicly owned passenger and light duty vehicles of
model year 2030 or later registered in Washington
state must be electric vehicles and the state’s trans-
portation commission will now work on a scoping
plan for achieving the 2030 requirement, anticipat-
ing the California target by five years. In November
2020, the UK Prime Minister, the Transport Secretary
and the Business Secretary announced, in the
context of the 10-Point Plan for a Green Industrial
Revolution, the end of the sale of new petrol and die-
sel cars in the United Kingdom by 2030. On July 14,
2021 the UK Government published the Green Paper
on a New Road Vehicle CO2 Emissions Regulatory
Framework for the United Kingdom. The commit-
ment is to reach net zero carbon emissions by 2050.
Following Brexit, the UK Government intends to de-
fine the legal framework to deliver the internal com-
bustion engine vehicles phase out dates announced
in November 2020 by the Prime Minister’s Ten Point
Plan for a Green industrial Revolution. To achieve
this goal, the UK Department for Transport pro-
posed an ambitious and challenging Zero Emissions
Vehicle (ZEV) mandate, in terms of its starting point
(i.e. 2024), annual trajectory targets and in terms
of the announced very limited flexibility to achieve
these targets. The final rule of the UK - ZEV Mandate
and CO2 Emissions Regulation was released in
December 2023, establishing new annual targets for
Stage I (2024 - 2030). Stage II (2031 - 2035) require-
ments will be defined in the future. The Regulation
also includes recent updates from UK Government
on the end of sale of new petrol cars, which has been
postponed from 2030 to 2035. Manufacturers re-
sponsible of less than 2,500 registrations in UK per
year can benefit from special provisions. This will
put the United Kingdom on course to be the first G7
country to decarbonize cars and vans.
EXHAUST AND EVAPORATIVE EMISSIONS
REQUIREMENTS
In 2007, the European Union adopted a series of up-
dated standards for emissions of other air pollutants
from passenger and light commercial vehicles, such
as nitrogen oxides, carbon monoxide, hydrocarbons
and particulates. These standards were phased in
from September 2009 (Euro 5) and September 2014
(Euro 6) for passenger cars. In 2016, the European
Union established that Euro 6 limits shall be evaluat-
ed through Real Driving Emissions (RDE) measure-
ment procedure and a new test-cycle more repre-
sentative of normal conditions of use (Worldwide
Light Vehicles Test Procedure). SVMs (vehicle man-
ufacturers with a worldwide annual production low-
er than 10,000 units in the year prior to the grant of
the type-approval) are required to be compliant with
RDE standards starting from 2020 while non-SVMs
have been required to comply with RDE standards
starting from 2017. We believe all new Ferrari mod-
els are fully compliant with RDE requirements. In
2018, the European Commission issued Regulation
2018/1832 for the purpose of improving the emis-
sion type approval tests and procedures for light
passenger and commercial vehicles, including those
for in-service conformity and RDE and introduc-
ing devices for monitoring the consumption of fuel
and electric energy. Under the EU Regulation, which
became applicable in January 2019, among other
things, the extended documentation package pro-
vided by manufacturers to type approval authori-
ties to describe Auxiliary Emission Strategies (AES)
is no longer required to be kept confidential, and the
decision whether to allow access to such documen-
tation package is left to national authorities. In addi-
tion, the Regulation introduced a new methodology
for checking In-Service Conformity (ISC) which in-
cludes RDE tests. Compliance is tested based on ISC
checks performed by the manufacturer, the grant-
ing type approval authority (GTAA), and accredited
laboratories or technical services. Test results will
be publicly available; in addition, the GTAA will pub-
lish annual reports on the ISC checks performed, in
order to improve transparency.
During 2019, the European Commission an-
nounced that it will propose more stringent air
pollutant emissions standards for combustion-en-
gine vehicles. The European Commission created
an Advisory Group on Vehicle Emission Standards
(AGVES), by joining all the relevant expert groups
working on emission legislation, in order to provide
technical advice for the development of the post-
EURO 6/VI emission standards for motor vehicles.
In March 2020, the European Commission launched
a public consultation on its roadmap outlining the
policy options that it could pursue in revising the
emission standards for light and heavy duty vehi-
cles (Euro 7). This initiative is part of the European
Green Deal, advocating the European automotive
industry’s role as a leader in the global transition to
zero-emission vehicles. In May 2024, the final regu-
lation (EU) 2024/1257 “Euro 7” was published, com-
bining the requirements laid down for light-duty and
heavy-duty vehicles, inclusive of updated testing
protocols and new pollutant emissions limits for fine
particles and ammonia. Manufacturers of fewer
than 10,000 new passenger cars registered in the
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
83
BOARD REPORT
European Union per calendar year could benefit
from additional lead time with respect to new reg-
istrations requirements and several other accom-
modations. New non-exhaust emissions limits (i.e.
brake emissions, tires abrasion) and stricter exist-
ing non-emissions limits (i.e. evaporative emissions)
have also been included, as well as a minimum per-
formance threshold on battery durability and real-
time measurements through on-board-monitoring
requirements (including communication over the
air and cybersecurity obligations). Euro 7 technical
elements are expected to be laid down by imple-
menting acts in the future. Depending on the reg-
ulatory developments to come, the technological
solutions required to ensure compliance with Euro
7 standards may affect customers’ expectations on
performance, sound and driving experience.
Despite the ongoing work related to Euro 7
rulemaking, in May 2022 the European Commission
submitted
the
draft
Regulation
amending
EU
2017/1151 to a public consultation, with the purpose
of introducing three additional phases in Euro 6
Regulation (i.e. Euro 6e, Euro 6e-bis, Euro 6e-bis-FCM).
The final Regulation (EU) 2023/443 was published in
the EU Official Journal on 2 March 2023 and entered
into force as from 1 September 2023. The Regulation
aims to adapt the European regulation to the tech-
nical progress achieved in the UN Regulations test
procedures and, among others, it introduces an
Auxiliary Emissions Strategy (AES) indicator to indi-
cate when a vehicle runs in AES mode. Moreover, as
recent European driving data showed that the real
world share of plug-in hybrid vehicles total mileage
in electric mode is much smaller than assumed for
regulatory purposes, the proposal includes adjust-
ing the current method for determining the fuel and
energy consumption values for those vehicles.
The European Commission is also expected to
assess and evaluate the current noise emissions lim-
its, with the risk of more stringent thresholds.
In the United States, the “Tier 3” Motor Vehicle
Emission and Fuel Standards issued by the EPA were
finalized in April 2014. With Tier 3, the EPA has estab-
lished more stringent vehicle emission standards,
requiring significant reductions in both tailpipe and
evaporative emissions, including nitrogen oxides,
volatile organic compounds, carbon monoxide and
particulate matter. These standards are intended
to harmonize with California’s standards for 2015-
2025 model years (so called “LEV3”) and have been
implemented over the same timeframe as the U.S.
federal CAFE and GHG standards for cars and light
trucks described above. Because of our status as an
operationally independent SVM, Ferrari obtained a
longer, more flexible schedule for compliance with
these standards under both the EPA and California
Program.
In November 2022, the California Air Resources
Board published the already mentioned ACC II regu-
lations amending the Low Emission Vehicle (or LEV)
Regulation to reduce both tailpipe and evaporative
emissions. Several accommodations applicable to
SVMs were included. In June 2024, the California Air
Resources Board held the first workshop on ACC II
regulations revision, with the goal of achieving align-
ment with several EPA Multi-Pollutant rulemaking
requirements, while also increasing the stringency
of other obligations.
In addition, California is moving forward with other
stringent emission regulations for vehicles, includ-
ing the Zero Emission Vehicle regulation (ZEV). The
ZEV regulation requires manufacturers to increase
their sales of zero emissions vehicles year on year,
up to 100 percent of vehicles sold in the state by
2035. Because we currently sell fewer than 4,500
units in California and all the other states adopting
Californian emissions regulation, we are exempt
from these requirements until model year 2035.
Additional stringency of evaporative emissions
also requires more advanced materials and techni-
cal solutions to eliminate fuel evaporative losses, all
for much longer warranty periods (up to 150,000
miles in the United States).
In response to severe air quality issues in Beijing
and other major Chinese cities, in 2016 the Chinese
government published a more stringent emissions
program (National 6), providing two different levels of
stringency (6a and 6b) effective starting from 2020.
In July 2018 China’s central government launched a
three-year plan to reduce air pollution, extending tar-
gets for reducing lung-damaging airborne particu-
late pollution to the country’s 338 largest cities. This
plan includes reductions in steel and other industrial
capacity, reducing reliance on coal, promoting elec-
tric vehicles and cleaner transport, enhancing air-pol-
lution warning systems, and increasing inspections
of businesses for air pollution infractions. Several
autonomous regions and municipalities have imple-
mented the requirements of the National 6 program
even ahead of the mandated deadlines.
During 2020, the Chinese Vehicle Emission
Control Center (VECC) launched the “Pre-study
on Next Stage Emission Standards for Light duty
Vehicles”, an ongoing research project expected to
be finalized in a more stringent emission program
in the next years. During 2023 and 2024, several
workshops were conducted, and we actively partic-
ipated, ensuring that we stayed abreast of the latest
developments and insights in our field.
Several other regulations are also emerging to
take into account the non-exhaust emissions and the
environmental impact of electric and hybrid vehi-
cles components, particularly on batteries. Brake
particulate emissions from passenger cars are
currently not regulated by any UNECE or regional
Regulations. However, a new UN Global Technical
Regulation (i.e., UN GTR 24) on the topic of brake
particulate emissions of light duty vehicle’s brake
systems has been finalized during 2023. Tire abra-
sion is currently regulated by a UN Regulation which
defines the test methods to follow and will set the
tire abrasion limits to be respected.
The Informal Working Group on Electric Vehicles
and Environment of the United Nations proposed
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during 2021 a Global Technical Regulation on in-ve-
hicle battery durability that was finally adopted in
2022 (i.e., UN GTR 22). This regulation is applicable
to both pure electric and plug-in hybrid vehicles
and
establishes
provisions
regarding
state-of-
health monitors, minimum performance require-
ments and in-service conformity checks. A UN GTR
is not binding for certification purposes. However,
it could be transposed into a UN Regulation or a
regional regulation required for the certification.
The European Commission included these bat-
tery durability requirements in Euro 7 regulation.
Additionally, the EPA and CARB have set minimum
performance requirements for battery durability
within the EPA Multipollutant and CARB ACCII reg-
ulations, respectively. Other government author-
ities, such as those in South Korea and China, are
also developing their own standards to evaluate
the minimum performance requirements of trac-
tion batteries. Moreover, the European Commission
published, in July 2023, the final rule (EU) 2023/1542
for a new regulation on batteries and waste batter-
ies. This regulation will apply to all kind of batteries,
including automotive and electric vehicle batteries,
and significantly increases the scope and number of
requirements relating to design, sustainability, label-
ling, information and end-of-life.
In the evolving regulatory landscape, we antic-
ipate new regulations on materials emerging from
various markets. These regulations aim to restrict or
ban the use of critical substances. The EU already has
a strong regulatory framework for chemicals (e.g.
REACH, POP Regulations) and is planning to expand
it as part of its broader zero-pollution goal under the
European Green Deal, with the aims to better pro-
tect citizens and the environment, while promoting
innovation for safe and sustainable chemicals. In this
context, the EU Commission presented its proposal
for a new Regulation replacing Directive 2000/53/
EC “End-of-Life Vehicles” and Directive 2005/64/
EC “Type-approval of motor vehicles with regard to
their Reusability, Recyclability and Recoverability”.
The aim of this new EU regulation is to propose mea-
sures to enhance the circularity of the automotive
sector, covering the design, production and end-
of-life treatment of vehicles. This regulation also
extends the responsibility of manufacturers to the
management of the end-of-life phase of vehicles.
Moreover, the European Chemicals Agency (ECHA)
has made available a draft dossier to recommend
a universal per- and polyfluoroalkyl substances
(PFAS) restriction. It is crucial to acknowledge that
such regulatory shifts may significantly impact
material choices, necessitating substantial research
and development efforts to uphold performance
standards amid these changes.
In this context, in 2024, the new Regulation (EU)
2024/1252 on “Critical Raw Materials” was published,
establishing a framework for strengthening access,
resilience, and the sustainable supply of critical raw
materials, while promoting efficiency and circularity
throughout the value chain.
VEHICLE SAFETY
Vehicles sold in Europe are subject to vehicle safe-
ty regulations established by the EU or by individual
member states. In 2009, the EU established a simpli-
fied framework for vehicle safety, repealing more
than 50 directives and replacing them with a single
regulation (the “General Safety Regulation”) aimed at
incorporating relevant United Nations standards. This
incorporation process began in 2012. With respect to
regulations on advanced safety systems, the EU now
requires new model cars from 2011 onwards to have
electronic stability control systems and tire pressure
monitoring systems. Regulations on low-rolling re-
sistance tires have also been introduced. The frame-
work is reviewed periodically, and in May 2018, the
European Commission adopted a proposal for a reg-
ulation to make certain vehicle safety measures man-
datory. On December 16, 2019, the revised General
Safety Regulation (EU) 2019/2144 was published
in the EU Official Journal. In 2022, a first set of new
safety technologies became mandatory in European
vehicles, such as Advanced Emergency Braking,
Emergency Lane Keeping systems, crash-test im-
proved safety belts, intelligent speed assistance and
warning of driver drowsiness. On November 16, 2022,
Commission Delegated Regulation (EU) 2022/2236 set-
ting out the technical requirements to be applied for
the purpose of EU type-approval of vehicles produced
in small series was published in the EU Official Journal.
In particular, with regard to certain requirements in-
troduced by the revised General Safety Regulation, an
exemption to Intelligent Speed Assistance, Advanced
Emergency Braking System and Emergency Lane
Keeping System has been granted for vehicles pro-
duced in small series and with specified characteris-
tics related to the installation of the camera. Moreover,
the regulation provides for a lead time of at least two
years with respect to the provisions applicable to vehi-
cles produced in unlimited series. In November 2023,
the expected Delegated Act implementing the fitment
of the Advanced Driver Distraction Warning (ADDW),
mandatory from 2024 for new types of vehicles as re-
quired by the Regulation (EU) 2019/2144 on General
Safety, has been published on Official Journal. This
regulatory act was the latest measure to be published
within the General Safety Regulation (EU) 2019/2144
framework.
The European Commission presented a pro-
posal to grant a full exemption from this new tech-
nology for vehicles characterized by low ground
clearance, where the installation of such a system
is unfeasible. Additionally, an extended lead time has
been proposed for other vehicles included in small
series definition. The final rule is expected to be pub-
lished in the first months of 2025.
The European Commission is also working on sev-
eral aspects relating to the European General Safety
scheme, expected to be developed in the coming
years. In particular, with regard to electric vehicle safe-
ty, the European Commission has been consolidating
86
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
efforts with other UN Contracting Parties during 2024
to revise the electric vehicles safety standard with
the aim to improve occupant protection in the event
of battery thermal propagation and to address other
regulations related to passive safety topics.
In 2017, the EU published technical requirements
for the Emergency Call (eCall) system, mandatory
for new model cars starting from 2018. In 2023 the
European Commission started a rulemaking process
to revise the eCall framework by aligning it to the new
4G/5G “packed switched” technology. The final rule
(Delegated Regulation EU 2024/1180) was published
in April 2024, requiring vehicles to be equipped with
the new 4G/5G “packed switched” technology. The
eCall revision process has not been finalized yet, as
the European Commission is still working on a revi-
sion of the regulation providing test procedures and
technical requirements for the certification of eCall
systems. The final rule is expected in 2025. Starting
from July 1, 2019, new types of pure electric vehicle
and new types of hybrid electric vehicle capable of
operating without propulsion from a combustion
engine operating are required to be equipped with
an Acoustic Vehicle Alerting System (AVAS), and
from July 1, 2021 for all new vehicles of such types, in
order to alert pedestrians that a vehicle is moving at
low speeds. At United Nations level, it has been iden-
tified the need for additional regulatory action for
BEVs with sound enhancement systems other than
AVAS regarding their noise emission. A specific reg-
ulatory process aimed at balancing safety and envi-
ronmental needs, which may directly impact sound
design specifications, is currently ongoing. During
2024, European authorities and United Nation’s con-
tracting parties began enforcing amendments to the
existing regulation on pedestrian protection, modify-
ing the current test procedures and enhancing the
measurement methods on extended vehicle areas
such as the windscreen.
Under U.S. federal law, all vehicles sold in the
United States must comply with Federal Motor
Vehicle Safety Standards (FMVSS) promulgated
by the NHTSA. Manufacturers need to provide cer-
tification that all vehicles are in compliance with
those standards. In addition, if a vehicle contains a
defect that is related to motor vehicle safety or does
not comply with an applicable FMVSS, the manu-
facturer must notify vehicle owners and provide
a remedy at no cost to the owner. Moreover, the
Transportation Recall Enhancement, Accountability,
and Documentation Act (“TREAD”) requires manu-
facturers to report certain information related to
claims and lawsuits involving fatalities and injuries
in the United States if alleged to be caused by their
vehicles, and other information related to client
complaints, warranty claims, and field reports in the
United States, as well as information about fatalities
and recalls outside the United States. Several new
or amended FMVSSs have taken effect in certain
instances under phase-in schedules that require
only a portion of a manufacturer’s fleet to comply
in the early years of the phase-in. These include an
amendment to the side impact protection require-
ments that added several new tests and perfor-
mance requirements (FMVSS No. 214), an amend-
ment to roof crush resistance requirements (FMVSS
No. 216), and a rule for ejection mitigation require-
ments (FMVSS No. 226). In 2024, the amendment of
occupant crash protection (FMVSS No. 208) was
adopted, updating the child restraint systems (CRSs)
referred therein. These CRSs are used by NHTSA
in air bag suppression and low risk deployment
testing. U.S. federal law also sets forth minimum
sound requirements for hybrid and electric vehicles
(FMVSS No. 141). With the publication, on November
15, 2021, of the Infrastructure Investment and Jobs
Act, the Congress of United States empowered the
Secretary of Transportation to promulgate new
regulations within safety framework. In May 2024,
NHTSA published a new regulation (FMVSS No. 127)
on Automatic Emergency Braking System. The reg-
ulation obliges manufacturers to equip vehicles
with a system that alerts the driver in case of immi-
nent collision with a pedestrian or a vehicle ahead
and automatically applies the brakes, in case the
driver fails to do so. The final rule is not aligned with
other international standards already in place in
many countries and is expected to have consistent
impacts on vehicle sensors design. Regarding the
standard implementation, NHTSA granted a delayed
compliance for SVMs. In December 2023, NHTSA
published an advanced notice of proposed rulemak-
ing as a first regulatory step to introduce a new
FMVSS regulation providing requirements for new
technologies to prevent driver distraction, drows-
iness and impaired driving. Additional rulemakings
currently under development focus on improving
requirements for the Safety Belt Reminder (FMVSS
208), introducing new anthropometric devices for
use in occupant protection standards, implement-
ing a system to warn the driver if occupants are left
unattended in the rear seats, and positioning anchor-
ages for child restraints and safety belts (FMVSS
225). In 2024, NHTSA published a proposal for a new
standard on pedestrian protection (FMVSS No. 228)
and the final rule revising the existing regulation
FMVSS 210 to improve the test requirements for
safety belt anchorage strength. Regarding electric
vehicle safety, NHTSA proposed a brand new stan-
dard, FMVSS 305a, to replace the existing one and
enhance occupant protection. Other rulemakings
are at a preliminary stage.
The regulatory updates mentioned above will
likely introduce requirements specific to the U.S.
market, compelling manufacturers to develop tai-
lored design solutions. This could lead to substantial
research and development expenditures.
In 2017, the Chinese authorities published an
updated version of the current local general safety
standard which allows China to become the driver
market for the Event Data Recorder mandatory
installation starting from 2021. Technical require-
ments were defined in mid-2019, through the for-
mal adoption of the local standard. Among the
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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BOARD REPORT
United Nations contracting parties, China has been
the first country to propose an early adoption of
updated test procedures on high-voltage batteries
for hybrid and electric vehicles, which has been
enforced starting in 2020. These regulations related
to electric vehicle safety are currently being revised
to enhance occupant protection in the event of ther-
mal propagation and to safeguard the battery pack
from bottom impacts caused by road obstacles.
Several passive safety standards introducing more
stringent requirements have been adopted at the
end of 2024 (e.g. front and rear protective devices,
roof crush and safety-belts and restraint systems
anchorages for occupant) and other revised regu-
lations (e.g. pedestrian protection, lateral and rear
collision, are expected to be enforced from the
beginning of 2025. The relevant Chinese Authority
(CATARC) is working on a new draft of the binding
regulation GB/T 18488 on drive motor system (DMS)
for electric vehicles, introducing more stringent
technical requirements, test methods and inspec-
tion requirements on electric motors. This draft
introduces more stringent technical and perfor-
mance requirements, test methods, and inspection
criteria for electric motors. During 2021, 2022 and
2023, the Chinese authorities worked on several
rulemaking initiatives related to active safety (e.g.,
ADAS, eCall), which are not yet mandatory for cer-
tification purposes and contribute to the regulatory
uncertainty in this market. In particular, the devel-
opment of a new binding standard for Automatic
Emergency Braking systems began in 2024 and
is not expected to be harmonized with the corre-
sponding international standards that are widely
adopted. The lack of harmonization of Chinese reg-
ulatory requirements is increasing in recent years.
This situation could lead to substantial research
and development expenditure, specifically for the
Chinese market.
Regulatory fragmentation is also emerging in
other markets such as the UK and South Korea, pri-
marily due to specific market needs and domestic
policy priorities.
CONNECTIVITY
In 2020, the European Commission issued its new
digital strategy policies, which represent a priority
in its regulatory agenda. During 2021, several draft
proposals were issued in this respect, including
in relation to Real Time Traffic Information (RTTI),
Connected
and
Intelligent
Transport
Systems
(C-ITS) and Artificial Intelligence (AI). The RTTI and
ITS proposals were finalized in December 2023
through the adoption of the Commission Delegated
Regulation (EU) 2022/670 and the Directive (EU)
2023/2661, respectively.
In 2022, the European Commission announced
the intention to present a proposal amending the
European Type Approval Framework (Regulation
(EU) 2018/858) to include provisions on access to
in-vehicle data. This measure would aim to address
certain sector-specific issues such as bi-direction-
al access to vehicle resources and the interplay be-
tween access to data and cybersecurity. Since the
announcement, the European Commission has not
yet disclosed the proposal for the sector-specific
regulation. Updates are expected in 2025 with the
publication of the European Commission’s working
program. As regards software and cybersecuri-
ty management issues, the proposal is expected to
include replacement parts, new categories of au-
tonomous vehicles and replacement of batteries.
In September 2022, the European Commission also
presented a proposal of a new regulation setting
up cybersecurity requirements covering a wide
range of digital products and related ancillary ser-
vices. The proposal would be aimed at strengthen-
ing the cybersecurity of products placed on the EU
market throughout their whole lifecycle, improv-
ing and extending the provisions and the scope of
existing regulation. The final rule was published in
2024. However, motor vehicles and components are
exempt from these requirements, as compliance
with specific requirements is already mandated by
Regulation (EU) 2019/2144 that, starting from 2022,
began enforcing regulations on cyber security and
software updates.
In 2024, Chinese authorities issued new regula-
tions on cybersecurity and software updates man-
agement, introducing specific technical require-
ments that differ from those provided by the
equivalent UNECE regulations. These new require-
ments may necessitate modifications in the elec-
tronic design of our models.
For the U.S. market, in October 2024, the Bureau
of Industry and Security, an agency within the U.S.
Department of Commerce, released a proposal for
a regulation on supply chain control of connected
and self-driving vehicles. The regulation aims to
prohibit the import and sale of software and com-
ponents (including those installed in vehicles) pro-
duced or developed in China and Russia, and to
establish a compliance mechanism through a dec-
laration of conformity.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FINANCIAL OVERVIEW
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS OF THE GROUP
The following discussion of our financial condition and
results of operations should be read together with the information
included in the sections “Overview” and “Overview of our Business”,
as well as in the Consolidated Financial Statements elsewhere in this
document. This discussion includes forward-looking statements
and involves numerous risks and uncertainties, including, but not limited
to, those described under “Forward-Looking Statements” and
“Risk Factors”. Actual results may differ materially from those
contained in any forward-looking statements.
TRENDS, UNCERTAINTIES AND OPPORTUNITIES
Shipments: Low volume strategy and brand exclu-
sivity — Our net revenues and results of operations
depend on, among other things, the achievement of
volume and mix targets established in our budgets
and business plans, which we define in line with our
low volume strategy to pursue controlled growth
and preserve brand exclusivity. As part of this strat-
egy, we seek to manage waiting lists in the various
markets in which we operate in order to respond
optimally to relative levels of demand, based on our
order books, while being sensitive to local client ex-
pectations in the markets where we operate. We
believe that waiting lists have promoted the sense
of exclusivity of our products and, accordingly, we
monitor and manage waiting lists to enhance this
exclusivity while ensuring the highest levels of client
service and satisfaction.
In order to maintain our brand’s aura of exclu-
sivity among purchasers of our cars, we have con-
tinued our low volume strategy while responding to
growing demand and to demographic changes as
the size and spending capacity of our target clients
has grown, gradually increasing annual shipments
from 7,255 in 2014, the year before our initial public
offering and separation from Stellantis, to 13,221 in
2022, 13,663 in 2023 and 13,752 in 2024 (shipments do
not include strictly limited racing cars, such as the XX
Programme and the 499P Modificata, as well as one-
off and pre-owned cars). Our current plans reflect a
continuation of our low volume and controlled growth
strategy, including the introduction of 15 new models
over the period from 2023 to 2026 as announced at
our Capital Markets Day in June 2022 (to date we have
introduced 8 new models since the start of 2023 and
we are planning to launch 6 models in 2025, includ-
ing our first full electric Ferrari in the fourth quar-
ter of 2025), and a measured increase in shipments
above current levels as we continue to (i) broaden
our product portfolio in line with our product strat-
egy “Different Ferrari for Different Ferraristi” and
“Different Ferrari for Different Moments”, and (ii) tar-
get a potentially larger and younger customer base,
while preserving and enhancing the exclusivity and
value of our brand. In 2024, we sold approximately
81% of our new cars to Ferrari clients that already
own at least one Ferrari and 48% of our new cars to
Ferrari clients that own multiple Ferrari, which rein-
forces the demand for our cars and the image of lux-
ury and exclusivity inherent in our brand.
We target our products to the upper end of the
luxury car segment and purchasers of our cars tend
to belong to the wealthiest segment of the popula-
tion. As the size and spending capacity of our target
client base has grown significantly in recent years,
our addressable market and the sense of exclusiv-
ity fostered by our low volume strategy have been
further enhanced. Given that our shipment strategy
is flexible, we are able to adjust the geographical
allocation of our shipments to respond to changes
in our key markets. The geographic allocation of our
shipments and their mix by product reflects our
deliberate allocation strategy over the lifecycle of
the individual models and is generally impacted by
the phase-in/phase-out pace of the models, as well
as the length of waiting lists and other market-spe-
cific factors and conditions, including our commer-
cial strategy and the potential for future growth. We
expect that further growth in shipments will result
primarily from our deliberate allocation strategy, as
well as from targeting new customer groups, geog-
raphies and modes of use through the expansion of
our product portfolio.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
89
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The following table sets forth our shipments(1) by geographic location:
For the years ended December 31,
2024
%
2023
%
2022
%
Number of cars and % of total cars
EMEA
Germany
1,476
10.7%
1,472
10.8%
1,439
10.9%
UK
933
6.8%
1,011
7.4%
997
7.5%
Italy
797
5.8%
740
5.4%
708
5.4%
France
547
4.0%
490
3.6%
473
3.6%
Switzerland
481
3.5%
482
3.5%
497
3.8%
Middle East (2)
479
3.5%
451
3.3%
439
3.3%
Other EMEA (3)
1,491
10.8%
1,417
10.4%
1,405
10.6%
Total EMEA
6,204
45.1%
6,063
44.4%
5,958
45.1%
Americas (4)
4,003
29.1%
3,811
27.9%
3,447
26.1%
of which United States of America
3,452
25.1%
3,262
23.9%
2,924
22.1%
Mainland China, Hong Kong and Taiwan
1,162
8.4%
1,490
10.9%
1,552
11.7%
of which Mainland China
814
5.9%
1,221
8.9%
1,290
9.8%
Rest of APAC (5)
2,383
17.4%
2,299
16.8%
2,264
17.1%
Total
13,752
100.0%
13,663
100.0%
13,221
100.0%
(1)
Excluding strictly limited racing cars (such as the XX
Programme and the 499P Modificata), one-off and pre-
owned cars.
(2)
Middle East mainly includes the United Arab Emirates, Saudi
Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait.
(3)
Other EMEA includes Africa and the other European
markets not separately identified.
(4)
Americas includes the United States of America, Canada,
Mexico, the Caribbean and Central and South America.
(5)
Rest of APAC mainly includes Japan, Australia, Singapore,
Indonesia, South Korea, Thailand, India and Malaysia.
Research, Development and Product Lifecycle
We engage in research and development activi-
ties aimed at further enhancing our technological
edge through continuous innovation and improving
the design, performance, driving thrills, advanced
technology, safety, efficiency and reliability of our
cars, among other things. Costs we incur for the
development of our cars and engines, as well as
their related components and systems, are recog-
nized as an asset if, and only if, the required condi-
tions under IAS 38 - Intangible Assets are met, in-
cluding, among others: (i) development costs can
be measured reliably, (ii) the technical feasibility
of the product, estimated volumes and expected
pricing all support the reasonable expectation that
the development expenditure will generate future
economic benefits, and (iii) the Group has the inten-
tion to complete the development and the ability to
use the intangible asset. Capitalized development
costs include all direct and indirect costs that may
be directly attributed to the development process.
All other research and development costs are ex-
pensed as incurred. Research and development
costs are recognized net of any technology-related
government incentives received.
The level of our capitalized development costs is
primarily affected by the timing of updates and re-
newals to our product portfolio, the pace of our in-
novation schedule and the integration of newly-in-
troduced powertrain technologies (including hybrid
and electric) more broadly into our product portfo-
lio. We continually launch new cars with enhanced
technological
innovations
and
design
improve-
ments. In 2024, we launched three new models: the
12Cilindri, the 12Cilindri Spider and our new limited
edition Supercar, the F80, in line with our previously
announced objective of introducing 15 new models
over the period from 2023 to 2026, with a view to
maintaining our product portfolio’s leading position
and to respond quickly to market demand and tech-
nological breakthroughs. We will continue to focus
on a well-diversified product portfolio composed of
three different powertrains (ICE, hybrid and elec-
tric), while increasing the integration of hybrid and
electric technologies in future models, as evidenced
by shipments of our hybrid models surpassing
those of our ICE models for the first time in 2024, as
well as our first full electric Ferrari which we expect
to launch in the fourth quarter of 2025.
A portion of our research and development
efforts are related to the development of the var-
ious components used in our models, and in par-
90
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ticular, hybrid, electric, electronic and mechanical
components. Our continued focus on component
development has the objective of improving perfor-
mance and reducing the costs to develop new mod-
els. Our strategy involves making core components
in-house, as well as collaborating with partners to
co-develop and tailor best in class solutions for state-
of-the-art technologies. Capitalized development
costs are amortized on a straight-line basis from the
start of production over the estimated lifecycle of
the model or the useful life of the related assets or
components. Our Range models typically have a life-
cycle of four to five years, while our Special Series,
Icona and Supercar models typically have shorter
lifecycles, and the useful life of components may be
up to eight years.
We also incur research and development costs
in connection with our Formula 1 and other racing
activities, including initiatives to maximize the per-
formance, efficiency and safety of our racing cars.
While we develop these technologies for initial use
in our Formula 1 and other racing cars, we seek to
transfer these technologies and components to
models in our current and future product portfolio,
where appropriate. Technological developments
and changes in the regulations of the Formula 1
World Championship generally lead us to design,
develop and construct a new racing car to be used
for one year only and therefore the costs incurred
for the design, development and construction of a
new racing car are generally expensed as incurred
and classified as research and development costs
in the income statement, unless the technology is
expected to be used for more than one year and
the costs meet the capitalization criteria in IAS 38.
Research and development costs for Formula 1
activities can vary from year to year and may be dif-
ficult to predict because they are subject to, among
other things, the need to respond to our car’s
performance relative to other racing teams and
changes in racing regulations, including the num-
ber of races and inflation.
Formula 1 financial regulations include a bud-
get cap to limit the amount of spending for chassis
costs that may be incurred by the teams partici-
pating in the Formula 1 World Championship (pri-
marily costs relating to the development and man-
ufacturing of the racing car chassis and excluding,
among others, the activities to enable the supply of
power units, marketing costs, drivers’ salaries and
the top three personnel at each team). Additionally,
starting in 2023, a cap was also introduced for the
development of the power units that will be used for
the 2026 season. The aforementioned budget caps
on spending are defined for each season based on
several factors, including the number of races and
inflation. The budget cap for the 2024 Formula 1
season was €148 million in relation to the develop-
ment and manufacturing of the racing car chassis
and €98.5 million relating to the power units that
will be used in the 2026 season. The budget cap
for the 2025 season is currently in the process of
being defined but is expected to be higher than in
2024, which, other things being equal, would lead
to higher cost of sales and research and develop-
ment costs in the period.
As a result of our strategy to continuously inno-
vate and broaden our product portfolio and inte-
grate hybrid, electric and other advanced technol-
ogies into our cars, our capitalized development
costs have gradually increased during the period
from 2022 to 2024, from €416 million in 2022 to
€448 million in 2023 and €476 million in 2024. This
has contributed to an increase in the proportion of
capitalized development costs compared to total
research and development incurred, including the
effects of the advancement through the stages of
development for many of the technologies we are
creating, as well as the aforementioned caps on
certain costs we are allowed to incur for the chas-
sis of our Formula 1 racing cars and the develop-
ment of the power unit to be introduced in 2026 (in
accordance with applicable FIA financial regula-
tions). In particular, capitalized development costs
as a proportion of total research and development
incurred (both capitalized and expensed) increased
from 44.5 percent in 2022 to 45.4 percent in 2023
and 45.8 percent in 2024.
The following table summarizes our research
and development expenditure for the years ended
December 31, 2024, 2023 and 2022:
(€ million)
For the years ended December 31,
2024
2023
2022
Capitalized development costs (1)
476
448
416
Research and development costs expensed (A)
563
539
518
Total research and development incurred
1,039
987
934
Amortization of capitalized development costs (B)
331
343
258
Research and development costs as recognized
in the consolidated income statement (A+B)
894
882
776
(1)
Capitalized to development costs within intangible assets
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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BOARD REPORT
Car Profitability
The relative profitability of the cars we sell tends
to vary depending on a number of factors, includ-
ing the exclusivity of the offering, overall perfor-
mance of the car and its technological advance-
ment and content, engine type and performance,
level of personalization and the geographic market
in which the cars are sold. For example, our strict-
ly limited edition Icona models (the most recent is
the Daytona SP3 for which shipments commenced
in the fourth quarter of 2022), as well as our limited
edition Supercars (the most recent is the F80 for
which shipments are expected to start in last quar-
ter of 2025) have sales prices that are significantly
higher than other models in our product portfolio
in light of their exclusivity, as well as the advanced
technology and design these models feature. In
general, these more exclusive offerings generate
higher revenues and provide better margins than
those generated on shipments of our Range and
Special Series models, thereby improving our fi-
nancial performance in the periods in which they
are sold. We plan to launch our Icona models more
frequently compared to our Supercars and we ex-
pect this to moderate potential fluctuations in finan-
cial performance due to the cadence of launches
of our Supercars. Additionally, car profitability may
vary between countries as a result of, among oth-
er things, economic conditions, the maturity of the
market, customs duties and tariffs, as well as emis-
sions regulations.
We leverage the continuous improvement of
the performance, technology and other features of
our cars, as well as the exclusivity of certain model
offerings and the scarcity value resulting from our
low volume strategy, to increase the average price
point of our Range and Special Series models over
time. In particular, in recent years we have been
increasing the price of selected models in certain
markets and we have introduced new models with
higher average selling prices compared to the cor-
responding predecessor models. Furthermore, as
we continue to integrate advanced technologies
more broadly into our car portfolio, including hybrid
and electric powertrains, we expect that our aver-
age price point will continue to increase, reflect-
ing the superior technological content of our new
models. Our experience to date suggests that the
profitability of a specific model is not necessarily
impacted by the type of powertrain.
Additionally, the interior and exterior technology
and content of the cars we sell can be customized
through our personalization offerings, which can
be further enhanced through additional bespoke
specifications. Incremental revenues from person-
alization are a particularly favorable factor of our
pricing and product mix due to the fact that we gen-
erate incremental margin on each additional option
selected by our clients.
SPONSORSHIP, COMMERCIAL
AND BRAND NET REVENUES
Our revenues from sponsorship, commercial and
brand activities are primarily impacted by, among
other things, the appeal of our brand, as well as the
historical success and current performance of our
racing teams (primarily from our participation in the
FIA Formula 1 World Championship with Scuderia
Ferrari and in the World Endurance Championship
with the Ferrari Endurance Team), which both im-
pact our ability to attract new sponsors and promote
brand activities. Additionally, our revenues from
sponsorship, commercial and brand activities are
also influenced by the overall popularity of Formula 1
and our other racing competitions more broadly.
We have increased our net revenues from spon-
sorship, commercial and brand activities in recent
years, from €499 million in 2022 to €572 million in 2023
and €670 million in 2024, representing annual growth
of 14.6 percent and 17.1 percent, respectively. This
trend has been driven primarily by new racing spon-
sorships, as well as by commercial revenues linked to
our racing performance and our brand activities.
Cost of Sales and Selling, General and Admin-
istrative Costs — Cost of sales primarily includes
costs incurred in the manufacturing and distribution
of our cars and spare parts. The cost of materials,
components and labor are the most significant ele-
ments, while the remaining costs primarily relate to
depreciation, insurance and transportation, as well
as warranty and product liability-related costs, which
are estimated and recorded at the time our cars or
products are shipped. Interest expenses and other
financial charges that are directly attributable to
our financial services activities in the United States,
including provisions for risks and write-downs of
financial assets, are also reported in cost of sales.
In manufacturing our cars, we incur costs
(through production or purchase) for a variety of
raw materials (the most significant of which is alumi-
num), components (including mechanical, electrical,
electronic, aluminum, steel and plastic components,
as well as castings and tires) and supplies, as well as
for utilities, logistics and other services from numer-
ous suppliers. Fluctuations in the cost of sales are
primarily related to the number of cars we produce
and sell, along with changes in the mix of models
in our product portfolio and, primarily in 2022 and
2023, also inflation. Newer models generally have
more technologically advanced components and
enhancements, including hybrid and electric tech-
nology, and therefore have higher costs per unit;
however, we aim to price our cars appropriately
to recover these costs in line with our profitability
strategy. Our Icona, Supercar and One-Off models
also generally have higher costs per unit compared
to our Range and Special Series cars, although the
higher sales prices for these models typically more
than offset the higher costs. Cost of sales is also
affected by fluctuations of certain raw material
prices, although we typically seek to manage these
92
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
costs and minimize their volatility through the use of
long-term fixed price purchase contracts.
Over time, we have made efforts to achieve
technical and commercial efficiencies. In particular,
technical efficiencies focus on efforts to produce
components using innovative and cost-effective
materials, without compromising the quality or per-
formance of the components. In order to achieve
these technical efficiencies, we perform in-house
research and development activities and we invite
our suppliers to present us with innovative techni-
cal solutions that they have developed. Commercial
efficiencies have been achieved through negoti-
ating discounts and entering into long-term con-
tracts with our partners and suppliers, who commit
upfront to pass on to us a portion of the efficien-
cies they achieve in performing our supply con-
tracts. Furthermore, efforts are made to award
new business to existing partners and suppliers,
where appropriate, in order to negotiate favorable
pricing. As cost of sales also includes depreciation
of plant and equipment, cost of sales is affected by
the number and timing of product launches as the
start of production of new models triggers the com-
mencement of depreciation of plant and equipment
acquired specifically for those models.
When new models are introduced, we also
incur promotional costs in connection with product
launch and marketing initiatives, which are generally
recorded within selling, general and administrative
costs. Our schedule of model launches through 2026
is expected to increase promotional costs compared
to prior periods. Furthermore, we are currently mak-
ing significant investments in brand development,
which is also expected to increase selling, general
and administrative costs in the coming periods.
ECONOMIC CONDITIONS AND MACRO EVENTS
As a result of rising inflation in recent years, we have
experienced increases in the costs of our raw ma-
terials, energy, utilities, financing and certain other
goods and services, resulting in downward pres-
sure on our operating profit (EBIT) margin, although
inflation decreased in 2023 compared to 2022 and
continued to decrease in 2024.
Following the aforementioned rise in inflation,
several main central banks raised interest rates rap-
idly over the course of 2022 and part of 2023, includ-
ing in the United States where we offer retail client
financing for the purchase of our cars through our
fully owned subsidiary FFS Inc, as well as in EMEA
where we offer retail client financing (primarily in the
UK, Germany and Switzerland) through our equity
method investment in Ferrari Financial Services
GmbH (for which we hold a 49.9 percent interest). This
has resulted in a general increase in the cost of bor-
rowing, which has in turn increased the interest rates
on loans we generate for new car financing as well as
the cost of funds we use to finance our financial ser-
vices activities, although the impacts have been tem-
pered following the more recent decrease in central
bank rates in the United States, the European Union
and elsewhere. If interest rates remain elevated or
increase again, it may lead to a higher cost of own-
ership for customers who finance the purchase of
their vehicle, which could have an adverse impact on
demand for our cars in certain markets.
The ongoing conflict between Russia and Ukraine
that started in February 2022, and the resulting geo-
political tensions have had a significant impact on the
global economy, resulting in a sharp increase in energy
prices and higher prices for certain raw materials and
goods and services, which in turn has contributed
to higher inflation globally. Many governments and
supranational organizations around the world have
imposed sanctions on certain industry sectors and
Russian parties, as well as enhanced export controls
on certain products and industries, including luxury
goods. Ferrari has very limited commercial interests
in Russia, Ukraine and the areas of conflict, and the
effects of the aforementioned sanctions and other
measures on our business have been contained.
Additionally,
uncertainties
regarding
future
trade arrangements and industrial policies in var-
ious countries or regions create additional mac-
roeconomic risk. In the United States, any policy to
discourage imports into the United States of vehi-
cles produced elsewhere could adversely affect
our operations and the U.S. administration has
announced its intention to impose steep tariffs on
imported goods, including cars.
Management carefully monitors the inflation out-
look and changes to interest rates, as well as devel-
opments in the ongoing conflict between Russia and
Ukraine, as well as conflicts elsewhere in the world
(including the conflict between Israel and Hamas
which has caused escalations in the wider region)
and geopolitical tensions more generally, in order to
appropriately address the potential impacts, direct or
indirect, on our operations, order intake, supply chain
(including the prices and availability of raw materials),
operating costs and financial expenses, as well as
potential impacts on our customers, the global finan-
cial markets and the financial services industry more
broadly. In order to mitigate potential supply chain dis-
ruptions that could result from the aforementioned
factors, we have at times deliberately maintained a
higher level of inventory and may continue to do so.
EFFECTS OF FOREIGN CURRENCY EXCHANGE
RATES
We operate in numerous markets worldwide and are
affected by fluctuations in foreign currency exchange
rates through (i) the translation into Euro upon con-
solidation of foreign currency financial statements
of our subsidiaries with functional currencies other
than Euro, which we refer to as the translation impact,
and (ii) transactions by entities of the Group in cur-
rencies other than their own functional currencies,
which we refer to as the transaction impact.
Translation impacts arise in the preparation of
the consolidated financial statements; in particular,
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
93
BOARD REPORT
we present our consolidated financial statements
in Euro, while the functional currency of each of our
subsidiaries depends on the primary economic envi-
ronment of the entity. In preparing the consolidated
financial statements, we translate into Euro the assets
and liabilities of foreign subsidiaries expressed in local
functional currency other than Euro using the foreign
currency exchange rates prevailing at the balance
sheet date, while we translate income and expenses
using the average foreign currency exchange rates
for the period presented. Accordingly, fluctuations
in the foreign currency exchange rates of the func-
tional currencies of our subsidiaries against the Euro
impacts our results of operations.
Transaction impacts arise when our Group enti-
ties conduct transactions in currencies other than
their own functional currency. Therefore, we are also
exposed to foreign currency risks in connection with
scheduled receipts and payments in multiple curren-
cies. Our costs are primarily denominated in Euro,
while the majority of our revenues are generated in
currencies other than the Euro, mainly in U.S. Dollars,
Japanese Yen, Chinese Yuan, Pound Sterling, Swiss
Franc and, to a lesser extent, certain other currencies.
Typically, an appreciation/depreciation of the U.S.
Dollar, and the other currencies in which we operate,
against the Euro positively/negatively impacts our
net revenues and results of operations, although the
impacts of fluctuations in foreign currency exchange
rates are also impacted by our hedging operations. In
2024, foreign currency exchange impact (including
hedging transactions) on our revenues and operating
profit was negative, mainly driven by the U.S. Dollar,
the Japanese Yen and the Chinese Yuan. Currency
changes also had a negative impact in 2023, primarily
due to the depreciation of the U.S. Dollar, the Japanese
Yen and the Chinese Yuan against the Euro, but these
were partially offset by our hedges.
Our risk management policies contemplate the use
of derivative financial instruments to hedge for-
eign currency exchange rate risk. In particular, we
have used derivative financial instruments as cash
flow hedges for the purpose of hedging the foreign
currency exchange rate at which a predetermined
proportion of forecasted transactions denominat-
ed in foreign currencies will occur. Accordingly, our
results of operations have not been fully exposed to
fluctuations in foreign currency exchange rates. See
Note 30 “Qualitative and Quantitative Information
on Financial Risks” to the Consolidated Financial
Statements included elsewhere in this document for
additional information related to our foreign curren-
cy exchange rate risk policies.
REGULATION
We ship our cars throughout the world and are
therefore subject to a variety of laws and regula-
tions, including tariffs. These laws regulate our cars,
including their emissions, fuel consumption and
safety, as well as our manufacturing facilities. As we
are currently a small volume manufacturer in cer-
tain jurisdictions, we benefit from certain regulatory
exemptions, including less stringent emissions caps.
Developing, engineering and producing cars which
meet continuously evolving regulatory require-
ments, and can therefore be sold in the relevant
markets, requires a significant effort and expendi-
ture of resources. See “Overview of Our Business—
Regulatory Matters” for additional information.
PATENT BOX BENEFIT
Income taxes for the years ended December 31, 2024,
2023 and 2022 benefited from the application of the
Patent Box tax regime by Article 1, par. 37-45 of Law
No. 190 of December 23, 2014, as amended and sup-
plemented from time to time, which provides tax ben-
efits for companies that generate income through the
use of intangible assets. Starting in 2020 the Group
has implemented the Patent Box tax regime, covering
the period from 2020 to the conclusion of this regime
in 2024, with the recognition of the associated tax ben-
efit distributed over three equal annual installments.
The Law Decree (Decree) n. 146 enacted by the
Italian authorities, effective from October 22, 2021
and as amended by the 2022 Italian budget law,
replaces the previous Patent Box tax regime with a
new one that provides a 110% “super tax deduction”
for certain costs related to eligible intangible assets.
The Decree also outlines a transitional procedure
for the coexistence of both regimes during their
applicable periods. As a result of a change in the
Patent Box tax regime, we expect our effective tax
rate to increase in 2025 compared to 2024.
For additional information see Note 10 “Income
taxes” to the Consolidated Financial Statements
included elsewhere in this document.
ASSET-BACKED FINANCING (SECURITIZATIONS)
We pursue a strategy of autonomous financing for
our financial services activities in the United States,
which involves limiting or reducing dependency on
intercompany funding and increasing the portion
of self-liquidating debt with various securitization
transactions. As our financial services portfolio
has increased due to growth of the business, our
asset-backed financing (securitizations) has also
increased to finance the underlying receivables. In
particular, the increase of €211 million in our receiv-
ables from financing activities from €1,451 million
at December 31, 2023 to €1,662 million at December
31, 2024 was accompanied by an increase of €176
million, in our asset-backed financing (securitiza-
tions) from €1,166 million at December 31, 2023 to
€1,342 million at December 31, 2024 (including the
effects of foreign currency translation impact).
For further details relating to our receivables
from financing activities and our asset-backed
financing (securitizations), see Note 18 “Current
Receivables and Other Current Assets” and Note
24 “Debt” to the Consolidated Financial Statements
included elsewhere in this document.
94
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
RESULTS OF OPERATIONS
CONSOLIDATED RESULTS OF OPERATIONS
2024 COMPARED TO 2023 AND 2023 COMPARED TO 2022
The following is a discussion of the results of operations for the year end-
ed December 31, 2024 compared to the year ended December 31, 2023
and for the year ended December 31, 2023 compared to the year ended
December 31, 2022. The presentation includes line items as a percentage
of net revenues for the respective periods presented to facilitate year-
over-year comparisons.
For the years ended December 31,
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
(€ million, except percentages)
Net revenues
6,677
100.0%
5,970
100.0%
5,095
100.0%
Cost of sales
3,330
49.9%
2,996
50.2%
2,649
52.0%
Selling, general and administrative costs
561
8.4%
463
7.7%
428
8.4%
Research and development costs
894
13.4%
882
14.8%
776
15.2%
Other expenses, net
12
0.1%
18
0.3%
21
0.4%
Result from investments
8
0.1%
6
0.1%
6
0.1%
Operating profit (EBIT)
1,888
28.3%
1,617
27.1%
1,227
24.1%
Financial income
147
2.2%
132
2.2%
84
1.2%
Financial expenses
146
2.2%
147
2.5%
133
2.2%
Financial (income)/expenses, net
(1)
—%
15
0.3%
49
1.0%
Profit before taxes
1,889
28.3%
1,602
26.8%
1,178
23.1%
Income tax expense
363
5.4%
345
5.7%
239
4.7%
Net profit
1,526
22.9%
1,257
21.1%
939
18.4%
NET REVENUES
The following table sets forth an analysis of our net revenues for each
of the years ended December 31, 2024, 2023 and 2022:
For the years ended December 31,
Increase/(Decrease)
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Cars and spare parts (1)
5,728
85.8%
5,119
85.7%
4,321
84.8%
609
11.9%
798
18.5%
Sponsorship, commercial
and brand (2)
670
10.0%
572
9.6%
499
9.8%
98
17.1%
73
14.6%
Other (3)
279
4.2%
279
4.7%
275
5.4%
—
—%
4
1.4%
Total net revenues
6,677
100.0%
5,970
100.0%
5,095
100.0%
707
11.8%
875
17.2%
(1)
Includes net revenues generated from shipments of our
cars, any personalization generated on these cars, as well
as sales of spare parts.
(2)
Includes net revenues earned by our racing teams (mainly
in the Formula 1 World Championship and in the World
Endurance Championship) through sponsorship agreements
and our share of the Formula 1 World Championship
commercial revenues, as well as net revenues generated
through the Ferrari brand, including fashion collections,
merchandising, licensing and royalty income.
(3)
Primarily relates to financial services activities,
management of the Mugello racetrack and other sports-
related activities as well as net revenues generated from
the rental of engines to other Formula 1 racing teams and
from the sale of engines to Maserati. Starting from 2024,
residual net revenues generated from the sale of engines
are presented within other net revenues as a result of the
expiration of the supply contract with Maserati in December
2023. As a result, net revenues generated from engines of
€127 million and €155 million for the years ended December
31, 2023 and 2022 that were previously presented as
“Engines” net revenues have been presented within “Other”
net revenues to conform to the current presentation.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
95
BOARD REPORT
2024 COMPARED TO 2023
Net revenues for 2024 were €6,677 million, an in-
crease of €707 million or 11.8 percent (an increase
of 13.4 percent on a constant currency basis), com-
pared to €5,970 million for 2023.
The increase in net revenues was attributable
to the combination of (i) a €609 million increase in
cars and spare parts and (ii) a €98 million increase in
sponsorship, commercial and brand.
Cars and spare parts
Net revenues generated from cars and spare parts
for 2024 were €5,728 million, an increase of €609
million or 11.9 percent, compared to €5,119 million
for 2023.
The increase in net revenues from cars and
spare parts was primarily attributable to a richer
product and country mix, as well as a higher con-
tribution from personalization. Foreign currency
exchange impact, including hedging transactions,
was negative, mainly driven by the U.S. Dollar, the
Japanese Yen and the Chinese Yuan.
Total shipments in 2024 were 13,752, an increase
of 89 cars or 0.7 percent, compared to 13,663 in 2023.
Our product portfolio during the year included ten
internal combustion engine (ICE) models and six hybrid
engine models, which represented 48.7 percent and
51.3 percent of shipments, respectively. Both the num-
ber of hybrid cars and the proportion of hybrid cars to
the total number of cars shipped continued to increase
in 2024 compared to 2023, surpassing those of ICE
vehicles for the first time, in line with our strategy to
integrate newly-introduced powertrain technologies
more broadly into our product portfolio. Shipments
were mainly driven by the Purosangue, the Roma
Spider and the 296 GTS, as well as our first shipments
of the SF90 XX family during the year and the 12Cilindri
in the fourth quarter, while the 812 Competizione
A was approaching the end of its lifecycle and the
Portofino M, the SF90 Stradale, the 812 GTS, the 812
Competizione and the Roma were phased out during
the year. Shipments of the Daytona SP3 increased
year-over-year in line with our delivery plans.
The €609 million increase in net revenues from
cars and spare parts was composed of: (i) a €335 mil-
lion increase in Americas (ii) a €273 million increase
in EMEA, and (iii) an €47 million increase in APAC, par-
tially offset by (iv) a €46 million decrease in Mainland
China, Hong Kong and Taiwan. The mix of net reve-
nues by geography primarily reflects deliberate vol-
ume and product allocation in different markets.
Sponsorship, commercial and brand
Net revenues generated from sponsorship, com-
mercial agreements and brand management activ-
ities for 2024 were €670 million, an increase of €98
million or 17.1 percent, compared to €572 million for
2023. The increase was primarily attributable to new
sponsorships and lifestyle activities.
Other
Other net revenues were €279 million for 2024 and
for 2023, with higher revenues from financial ser-
vices activities substantially offset by the end of the
supply of engines to Maserati.
2023 COMPARED TO 2022
Net revenues for 2023 were €5,970 million, an in-
crease of €875 million or 17.2 percent (an increase
of 17.1 percent on a constant currency basis), com-
pared to €5,095 million for 2022.
The increase in net revenues was attributable to
the combination of (i) a €798 million increase in cars
and spare parts, (ii) a €73 million increase in spon-
sorship, commercial and brand and (iii) a €4 million
increase in other revenues.
Cars and spare parts
Net revenues generated from cars and spare parts
for 2023 were €5,119 million, an increase of €798
million or 18.5 percent, compared to €4,321 million
for 2022.
The increase in net revenues from cars and spare
parts was primarily attributable to a more favorable
product and country mix, higher contribution from
personalization, higher volumes and pricing. Foreign
currency exchange impact, including hedging trans-
actions, was slightly negative, mainly driven by the
depreciation of the Japanese Yen and Chinese Yuan,
partially offset by the appreciation of the U.S. Dollar.
Total shipments for the year ended December 31,
2023 were 13,663, an increase of 442 cars or 3.3
percent, compared to 13,221 for the year ended
December 31, 2022. The deliveries of the year included
11 internal combustion engine (ICE) models (including
one ICE track car model) and 4 hybrid engine models,
which represented 55.8 percent and 44.2 percent of
shipments, respectively. Both the number of hybrid
cars and the proportion of hybrid cars to the total
number of cars shipped more than doubled in 2023
compared to 2022, driven by the 296 and SF90 fami-
lies. The increase in shipments was also driven by the
812 Competizione family, the Purosangue, which was
in ramp up phase in the second half of the year, and
the Portofino M, which was approaching the end of
its lifecycle during the year, partially offset by lower
shipments of the 812 GTS and the Roma, as well as
the F8 Tributo and F8 Spider, which were phased out
in the first and fourth quarters of the year, respec-
tively. Shipments of the Daytona SP3 were in line with
our delivery plans for this phase of its lifecycle and
we made our first shipments of the Roma Spider in
the fourth quarter of 2023.
The €798 million increase in net revenues from
cars and spare parts was composed of: (i) a €442
million increase in EMEA driven primarily by favor-
able mix, shipments of the Daytona SP3 and higher
contribution from personalization, (ii) a €310 mil-
lion increase in Americas and (iii) an €86 million
96
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
increase in APAC, partially offset by (iv) a €40 million
decrease in Mainland China, Hong Kong and Taiwan.
The mix of net revenues by geography primarily
reflects deliberate volume and product allocation
in different markets.
Sponsorship, commercial and brand
Net revenues generated from sponsorship, com-
mercial agreements and brand management activ-
ities for 2023 were €572 million, an increase of €73
million, or 14.6 percent, compared to €499 million
for 2022. The increase was primarily attributable to
new racing sponsorships, higher Formula 1 com-
mercial revenues and a better Formula 1 ranking in
2022 compared to 2021, as well as the contribution
from lifestyle activities.
Other
Other net revenues for 2023 were €279 million, an
increase of €4 million or 1.4 percent, compared to
€275 million for 2022. The increase was mainly driv-
en by an increase of financial services activities.
COST OF SALES
For the years ended December 31,
Increase/(Decrease)
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Cost of sales
3,330
49.9%
2,996
50.2%
2,649
52.0%
334
11.1%
347
13.1%
2024 COMPARED TO 2023
Cost of sales for 2024 was €3,330 million, an in-
crease of €334 million or 11.1 percent, compared to
€2,996 million for 2023. As a percentage of net rev-
enues, cost of sales was 49.9 percent in 2024 com-
pared to 50.2 percent in 2023.
The increase in cost of sales was primarily attrib-
utable to a change in product mix, higher indus-
trial costs, as well as racing and other supporting
activities, partially offset by the end of the supply of
engines to Maserati.
2023 COMPARED TO 2022
Cost of sales for 2023 was €2,996 million, an in-
crease of €347 million or 13.1 percent, compared to
€2,649 million for 2022. As a percentage of net rev-
enues, cost of sales was 50.2 percent in 2023 com-
pared to 52.0 percent in 2022.
The increase in cost of sales was primarily
attributable to a change in product mix, higher car
volumes and higher industrial costs (reflecting cost
inflation and depreciation), as well as racing and
other supporting activities, partially offset by fewer
engines sold to Maserati and foreign currency
exchange impact.
SELLING, GENERAL AND ADMINISTRATIVE COSTS
For the years ended December 31,
Increase/(Decrease)
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Selling, general and
administrative costs
561
8.4%
463
7.7%
428
8.4%
98
21.3%
35
8.1%
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
97
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2024 COMPARED TO 2023
Selling, general and administrative costs for 2024
were €561 million, an increase of €98 million or 21.3
percent, compared to €463 million for 2023. As a
percentage of net revenues, selling, general and
administrative costs were 8.4 percent in 2024 com-
pared to 7.7 percent in 2023.
The increase in selling, general and administra-
tive costs mainly reflects continuing initiatives for
software, digital infrastructure and organizational
development, as well as brand investments.
2023 COMPARED TO 2022
Selling, general and administrative costs for 2023
were €463 million, an increase of €35 million or
8.1 percent, compared to €428 million for 2022. As
a percentage of net revenues, selling, general and
administrative costs were 7.7 percent in 2023 com-
pared to 8.4 percent in 2022.
The increase in selling, general and administra-
tive costs mainly reflects continuing initiatives for
digital infrastructure and organizational develop-
ment, as well as brand investments.
RESEARCH AND DEVELOPMENT COSTS
For the years ended December 31,
Increase/(Decrease)
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Research and development
costs expensed during
the year
563
8.4%
539
9.1%
518
10.1%
24
4.5%
21
4.1%
Amortization of capitalized
development costs
331
5.0%
343
5.7%
258
5.1%
(12)
(3.5%)
85
33.0%
Research and
development costs
894
13.4%
882
14.8%
776
15.2%
12
1.4%
106
13.7%
2024 COMPARED TO 2023
Research and development costs for 2024 were
€894 million, an increase of €12 million or 1.4 per-
cent, compared to €882 million for 2023. As a per-
centage of net revenues, research and development
costs were 13.4 percent in 2024 compared to 14.8
percent in 2023.
The increase of €12 million was primarily driven
by an increase in research and development costs
expensed of €24 million, driven by racing activities
and our focus on continuous innovation, partially
offset by a decrease in amortization of capitalized
development costs of €12 million, mainly driven by
the phase-out of certain models.
2023 COMPARED TO 2022
Research and development costs for 2023 were
€882 million, an increase of €106 million or 13.7 per-
cent, compared to €776 million for 2022. As a per-
centage of net revenues, research and development
costs were 14.8 percent in 2023 compared to 15.2
percent in 2022.
The increase of €106 million was primarily
attributable to (i) higher amortization of capitalized
development costs of €85 million driven by a general
increase in capitalized development costs in recent
years (€448 million in 2023 and €416 million in 2022)
in line with our strategy to innovate and broaden our
product portfolio, as well as by (ii) higher research
and development costs expensed of €21 million
driven by Formula 1 and other racing activities.
OTHER EXPENSES, NET
For the years ended December 31,
Increase/(Decrease)
2024
2023
2022
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Other income
22
11
13
11
99.1%
2
(12.0%)
Other expense
34
29
34
5
14.8%
(5)
(12.2%)
Other expenses, net
12
18
21
(6)
(34.2%)
3
(12.3%)
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Other expenses primarily consist of indirect taxes, provisions and
other miscellaneous expenses. Other income primarily consists of
rental income, gains on the disposal of property, plant and equipment
and releases of previously recognized provisions, as well as other
miscellaneous income. The increase in other income in 2024 compared
to 2023 primarily relates to indemnities received from suppliers.
OPERATING PROFIT (EBIT)
For the years ended December 31,
Increase/(Decrease)
2024
Percentage
of net
revenues
2023
Percentage
of net
revenues
2022
Percentage
of net
revenues
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Operating profit (EBIT)
1,888
28.3%
1,617
27.1%
1,227
24.1%
271
16.7%
390
31.8%
2024 COMPARED TO 2023
Operating profit (EBIT) for 2024 was €1,888 million,
an increase of €271 million or 16.7 percent, com-
pared to €1,617 million for 2023. As a percentage of
net revenues, operating profit (EBIT) increased from
27.1 percent in 2023 to 28.3 percent in 2024.
The increase in operating profit (EBIT) was pri-
marily attributable to the combined effects of (i) pos-
itive volume impact of €7 million, (ii) €386 million of
positive product mix, sustained by the Daytona SP3
and a few units of the 499P Modificata, as well as
higher contribution from personalizations and posi-
tive country mix driven by the Americas, (iii) negative
contribution of €12 million from research and devel-
opment costs, (iv) negative contribution of €98 mil-
lion from selling, general and administrative costs,
(v) positive contribution of €70 million driven by new
sponsorships and lifestyle activities, partially offset
by higher costs due to the better 2024 Formula 1
season ranking, and (vi) negative foreign currency
exchange impact of €82 million (including foreign
currency hedging instruments), mainly driven by the
U.S. Dollar, the Japanese Yen and the Chinese Yuan.
2023 COMPARED TO 2022
Operating profit (EBIT) for 2023 was €1,617 million,
an increase of €390 million or 31.8 percent, com-
pared to €1,227 million for 2022. As a percentage of
net revenues, operating profit (EBIT) increased from
24.1 percent in 2022 to 27.1 percent in 2023.
The increase in operating profit (EBIT) was pri-
marily attributable to the combined effects of (i)
positive volume impact of €42 million (as further
described in revenues above), (ii) positive product
and country mix impact of €461 million, sustained
by the Daytona SP3, the 812 Competizione and the
SF90 families, as well as by the contribution from the
Americas and Mainland China, Hong Kong and Taiwan
and a higher contribution from personalization and
pricing, (iii) negative contribution of €106 million
from research and development costs, (iv) negative
contribution of €35 million from selling, general and
administrative costs, (v) positive contribution of €13
million from the combined effects of higher Formula
1 commercial revenues, a better Formula 1 ranking
in 2022 compared to 2021, new racing sponsorships
and a higher contribution from lifestyle activities, as
well as a partial release of environmental provisions
as a result of more favorable market conditions for
car emissions credits, partially offset by higher indus-
trial costs, reflecting the effects of cost inflation and
higher depreciation and amortization, and (vi) posi-
tive foreign currency exchange impact of €15 million
(including foreign currency hedging instruments).
FINANCIAL (INCOME)/EXPENSES, NET
For the years ended December 31,
Increase/(Decrease)
2024
2023
2022
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Financial income
147
132
84
15
11.2%
48
57.8%
Financial expenses
146
147
133
(1)
(1.0%)
14
10.4%
Financial (income)/expenses, net
(1)
15
49
(16)
(108.0%)
(34)
(69.7%)
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
99
BOARD REPORT
2024 COMPARED TO 2023
Financial income, net was €1 million for 2024 com-
pared to financial expenses, net of €15 million for
2023. The net change was primarily attributable to
an increase in financial income of €15 million, mainly
driven by (i) positive net foreign currency exchange
impact (including the net costs of hedging) and (ii)
higher interest income on cash and cash equiva-
lents, partially offset by (iii) a decrease in gains rec-
ognized on the cash tender of bonds (no cash ten-
ders of bonds were made in 2024 while in the third
quarter of 2023 we executed a partial cash tender
on a bond due in 2025, resulting in gains in 2023 of
€8 million).
2023 COMPARED TO 2022
Financial expenses, net for 2023 decreased to €15
million compared to €49 million for 2022. The de-
crease in financial expenses, net was driven by (i)
foreign currency exchange impact (including the
net costs of hedging), (ii) higher interest income on
cash and cash equivalents and (iii) gains realized on
the partial cash tender executed during the third
quarter of 2023 on a bond due in 2025 (€8 million).
INCOME TAX EXPENSE
For the years ended December 31,
Increase/(Decrease)
2024
2023
2022
2024 vs. 2023
2023 vs. 2022
(€ million, except percentages)
Income tax expense
363
345
239
18
5.3%
106
44.6%
2024 COMPARED TO 2023
Income tax expense for 2024 was €363 million, an
increase of €18 million, compared to €345 million
for 2023. Income taxes for both years benefited
from the coexistence of two Patent Box tax regimes,
which provide tax benefits for companies using in-
tangible assets(1). See Note 10 “Income Taxes” to the
Consolidated Financial Statements included else-
where in this Report for additional information relat-
ed to the Patent Box tax regime in Italy.
The increase in income tax expense was primar-
ily attributable to an increase in profit before taxes,
partially offset by a decrease of the effective tax rate.
The effective tax rate was 19.2 percent in 2024
compared to 21.5 percent in 2023, mainly reflecting
the coexistence of the two aforementioned Patent
Box tax regimes, with a greater effect of the new
regime in 2024 compared to 2023.
2023 COMPARED TO 2022
Income tax expense for 2023 was €345 million, an
increase of €106 million, compared to €239 million
for 2022. Income taxes for both years benefited
from the application of the Patent Box regime. See
Note 10 “Income Taxes” to the Consolidated Financial
Statements included elsewhere in this Report for
additional information related to the Patent Box tax
regime in Italy.
The increase in income tax expense was primar-
ily attributable to an increase in profit before taxes in
2023 compared to 2022.
The effective tax rate was 21.5 percent in 2023
compared to 20.2 percent in 2022, mainly reflecting
the estimate of the benefit attributable to the Patent
Box, the Allowance for Corporate Equity (ACE) and
tax incentives for eligible research and development
costs and investments.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
101
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LIQUIDITY AND CAPITAL
RESOURCES
LIQUIDITY OVERVIEW
We require liquidity in order to fund our operations,
meet our obligations, make capital investments and
reward our shareholders. Short-term liquidity is re-
quired, among others, to purchase raw materials,
parts, components and utilities, mainly for the produc-
tion of our cars, as well as for personnel and other op-
erating costs. In addition to our general working capi-
tal and operational needs, we require cash for capital
investments to support continuous product portfolio
renewal and expansion, as well as for research and
development activities aimed at continually innovating
and improving our cars, including the enrichment of
our product portfolio with hybrid and electric tech-
nology. We also make investments to enhance man-
ufacturing efficiency, improve capacity, implement
sustainability initiatives, ensure environmental and
regulatory compliance and carry out maintenance
activities, among others. We fund our capital expen-
diture primarily with cash generated from our op-
erating activities. We also use liquidity to reward our
shareholders through dividends and share repur-
chases. For example, in 2024 we distributed dividends
of €440 million to owners and made common share
repurchases of €581 million, together representing
nearly 100 percent of our Industrial Free Cash Flow
from Industrial Activities for the year of €1,027 million.
For additional information relating to Free Cash Flow
from Industrial Activities, which is a non-GAAP finan-
cial measures, see “—Non-GAAP Financial Measures”.
We centrally manage our operating cash man-
agement, liquidity and cash flow requirements with
the objective of ensuring effective and efficient
management of our funds. We believe that our cash
generation together with our available liquidity,
including committed credit lines granted from pri-
mary financial institutions, supported by the access
to debt capital markets, will be sufficient to meet our
short-term and long-term liquidity requirements.
See the “Net Debt and Net Industrial Debt” section
below for additional details relating to our liquidity.
CYCLICAL NATURE OF OUR CASH FLOWS
Our working capital is subject to month to month
fluctuations due to, among other things, production
and sales volumes, our financial services activities,
the timing of capital expenditures and, to a lesser
extent, tax payments. In particular, our inventory lev-
els generally increase in the periods leading up to the
launch of new models, during the phase out of exist-
ing models when we build up spare parts, and at the
end of the second quarter when our inventory levels
are generally higher to support the summer plant
shutdown. Inventory levels are also adjusted as we
deem necessary for agile supply chain management
requirements.
We generally receive payment for cars between
30 and 40 days after the car is shipped (or earlier
when sales financing arrangements are utilized by
us or by our dealers), while we generally pay most
suppliers between 60 and 70 days after we receive
the raw materials, components or other goods and
services. Additionally, we also receive advance pay-
ments from our customers, mainly for our Icona,
limited edition and Special Series models, as well as
certain Range models in selected markets. We main-
tain sufficient inventory of raw materials and com-
ponents to ensure continuity of our production lines,
however delivery of most raw materials and compo-
nents takes place monthly or more frequently in or-
der to minimize inventories. The manufacture of one
of our cars typically takes between 30 and 45 days,
depending on the level of automation of the relevant
production line, and the car is generally shipped to
our dealers three to six days following the comple-
tion of production, although in certain regions we
may warehouse cars for longer periods of time to
ensure prompt deliveries. As a result of the above,
including the advances received from customers
for certain car models, we tend to receive payment
for cars shipped before or around the time we are
required to make payments for the raw materials,
components or other materials used in the manu-
facturing of our cars. However, the advances we
collect on cars may be subject to timing differences
from period to period as a result of the number of
models in our product portfolio for which we collect
advances and the stage of their lifecycle at a given
point in time, which ultimately impacts our working
capital.
Our investments for capital expenditure and
research and development are, among other fac-
tors, influenced by the timing and number of new
models launches. Our development costs, as well as
our other investments in capital expenditure, gener-
ally peak when we develop a significant number of
new models to renew or expand our product port-
folio. Our investments in research and development
are also influenced by the timing of research costs
for our Formula 1 activities, for which expenditure
in a normal season is generally higher in the first and
last quarters of the year, and also depends on the
evolution of the applicable Formula 1 technical regu-
lations, as well as the number and cadence of races
during the course of the racing season. We are cur-
rently undergoing a period of structurally higher
capital spending as we broaden our car architec-
tures, prioritize innovation and advanced technolo-
gies, and integrate hybrid and electric powertrains
into our product portfolio. We also continue to make
significant capital investments in operating assets
and infrastructure projects that are important for
our continued growth and development, including
for the ongoing construction of our new paint shop.
The payment of income taxes also affects our
cash flows. We pay the first tax advance payment in
the second and/or third quarter of the year, together
with the remaining tax balance due for the previous
102
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
year, and the remaining part of the advance payment
in the third and/or fourth quarter. Our income tax
expense and tax payments in 2024, 2023 and 2022
benefited from applying the Patent Box tax regime in
Italy. See Note 10 “Income Taxes” to the Consolidated
Financial Statements included elsewhere in this
document for additional information related to the
Patent Box tax regime in Italy.
CASH FLOWS
The following table
summarizes the
cash flows from/(used
in)
operating, investing and financing activities for each of the years ended
December 31, 2024, 2023 and 2022. For additional details of our cash
flows, see our Consolidated Financial Statements included elsewhere in
this document.
For the years ended December 31,
2024
2023
2022
(€ million)
Cash and cash equivalents at beginning of the year
1,122
1,389
1,344
Cash flows from operating activities
1,927
1,717
1,403
Cash flows used in investing activities
(987)
(867)
(805)
Cash flows used in financing activities
(325)
(1,109)
(554)
Translation exchange differences
5
(8)
1
Total change in cash and cash equivalents
620
(267)
45
Cash and cash equivalents at end of the year
1,742
1,122
1,389
2024 COMPARED TO 2023
For the year ended December 31, 2024 cash and
cash equivalents held by the Group increased by
€620 million compared to a decrease in cash and
cash equivalents of €267 million for the year end-
ed December 31, 2023. The difference in the net
change in cash and cash equivalents in 2024 com-
pared to 2023 of positive €887 million was mainly
attributable to the combined effects of:
(i)
a decrease in cash flows used in financing activ-
ities of €784 million in 2024 compared to 2023,
driven by (i) an increase in proceeds from debt of
€677 million, (ii) a decrease in repayments of debt
of €338 million, partially offset by (iii) an increase in
dividends paid to owners of €111 million and (iv) an
increase in share repurchases of €120 million; and
(ii)
an increase in cash flows from operating activ-
ities of €210 million in 2024 compared to 2023,
primarily driven by an increase in net profit ex-
cluding non-cash items of €276 million, a de-
crease in cash absorbed from inventories, trade
receivables and trade payables of €56 million
and (iii) lower net finance costs paid of €50 mil-
lion, partially offset by (iv) higher income tax paid
of €117 million and (v) a decrease from other op-
erating assets and liabilities of €69 million;
partially offset by:
(iii) an increase in cash flows used in investing activ-
ities of €120 million in 2024 compared to 2023,
driven by higher investments in property, plant
and equipment and intangible assets, reflecting
our initiatives for the development of new mod-
els, components and infrastructure.
2023 COMPARED TO 2022
For the year ended December 31, 2023 cash and
cash equivalents held by the Group decreased by
€267 million compared to an increase in cash and
cash equivalents of €45 million for the year ended
December 31, 2022. The difference in the net change
in cash and cash equivalents in 2023 compared to
2022 of negative €312 million was primarily attribut-
able to the combined effects of:
(i)
an increase in cash flows from operating activ-
ities of €314 million in 2023 compared to 2022,
driven by an increase in net profit excluding
non-cash items of €506 million, partially offset
by higher absorption of cash for working cap-
ital, mainly due to an increase in inventories
driven by production planning and an enriched
product mix, as well as by lower collection of
advances for cars in 2023 compared to 2022,
which benefited from the collection of advanc-
es for the Daytona SP3;
partially offset by:
(ii)
an increase in cash flows used in investing ac-
tivities of €62 million in 2023 compared to 2022,
driven by higher investments in property, plant
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
103
BOARD REPORT
and equipment and intangible assets, reflecting
our initiatives for the development of new mod-
els, components and infrastructure; and
(iii) an increase in cash flows used in financing ac-
tivities of €555 million in 2023 compared to
2022, driven by (i) higher repayments of debt of
€583 million (€751 million in 2023 compared to
€168 million in 2022), (ii) higher dividends paid
of €82 million (€334 million in 2023 compared to
€252 million in 2022) and (iii) higher share repur-
chases of €64 million (€461 million in 2023 com-
pared to €397 million in 2022), partially offset by
(iv) an increase in proceeds from debt of €174
million (€436 million in 2023 compared to €262
million in 2022).
Please refer to the following discussion and to the
Consolidated Statement of Cash Flows included
elsewhere in this document for additional informa-
tion related to our cash flows.
A summary of the cash flows from or used in
operating, investing and financing activities for each
year is provided below.
OPERATING ACTIVITIES
YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024, our cash
flows from operating activities were €1,927 million,
primarily attributable to:
(i)
net profit of €1,526 million, adjusted for €667
million for depreciation and amortization ex-
pense, €363 million of income tax expense and
net other non-cash expenses of €165 million
(mainly related to provisions, allowances, share-
based compensation expense and the result
from investments accounted for using the equi-
ty method); and
partially offset by:
(i)
€244 million of cash absorbed from the net
change in inventories, trade receivables and
trade payables, attributable to inventories for
€158 million mainly driven by an enriched prod-
uct mix and trade receivables for €94 million
mainly driven by product mix and sponsorship
agreements, partially offset by higher trade
payables for €8 million;
(ii)
€119 million related to cash absorbed by receiv-
ables from financing activities driven by an in-
crease in the financial services portfolio due to
volume growth;
(iii) €20 million of cash absorbed from the change
in other operating assets and liabilities;
(iv) €1 million of net finance costs paid; and
(v)
€410 million of income tax paid.
OPERATING ACTIVITIES
YEAR ENDED DECEMBER 31, 2023
For the year ended December 31, 2023, our cash
flows from operating activities were €1,717 million,
primarily attributable to:
(i)
net profit of €1,257 million, adjusted for €345
million of income tax expense, €662 million for
depreciation and amortization expense, €147
million of financial expenses, €132 million of
financial income and net other non-cash ex-
penses of €139 million (mainly related to provi-
sions, allowances, share-based compensation
expense and the result from investments ac-
counted for using the equity method);
(ii)
€49 million of cash generated from the change
in other operating assets and liabilities, primari-
ly driven by advances received for our cars; and
partially offset by:
(i)
€300 million of cash absorbed from the net
change in inventories, trade receivables and trade
payables, attributable to inventories for €310 mil-
lion driven by production planning and an enriched
product mix and trade receivables for €33 million,
partially offset by trade payables for €43 million;
(ii)
€107 million related to cash absorbed by receiv-
ables from financing activities driven by an in-
crease in the financial services portfolio due to
volume growth;
(iii) €51 million of net finance costs paid; and
(iv) €292 million of income tax paid.
OPERATING ACTIVITIES
YEAR ENDED DECEMBER 31, 2022
For the year ended December 31, 2022, our cash
flows from operating activities were €1,403 million,
primarily attributable to:
(i)
net profit of €939 million, adjusted for €238
million of income tax expense, €546 million for
depreciation and amortization expense, €133
million of financial expenses, €84 million of fi-
nancial income and net other non-cash expens-
es and income of €112 million (mainly related to
provisions, allowances, share-based compen-
sation expense and the result from investments
accounted for using the equity method); and
(ii)
€140 million of cash generated from the change
in other operating assets and liabilities, primar-
ily driven by advances received for the Ferrari
Daytona SP3 and the 812 Competizione A;
partially offset by:
(i)
€305 million of income tax paid;
(ii)
€188 million of cash absorbed by receivables
from financing activities, driven by an increase
in the financial services portfolio;
104
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(iii) €98 million of cash absorbed from the net
change in inventories, trade receivables and
trade payables, primarily
(iv) attributable to higher overall volumes; and
(v)
€32 million of net finance costs paid.
INVESTING ACTIVITIES
YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024 our net cash
used in investing activities was €987 million, primar-
ily attributable to capital expenditures of (i) €507 mil-
lion for intangible assets, mainly related to external-
ly acquired and internally generated development
costs, and (ii) €482 million for property, plant and
equipment. For a detailed analysis of additions to in-
tangible assets and property, plant and equipment
see “—Capital Expenditures” below.
INVESTING ACTIVITIES
YEAR ENDED DECEMBER 31, 2023
For the year ended December 31, 2023, our net cash
used in investing activities was €867 million, primari-
ly attributable to capital expenditures of: (i) €487 mil-
lion for intangible assets, mainly related to external-
ly acquired and internally generated developments
costs, and (ii) €382 million for property, plant and
equipment. For a detailed analysis of additions to in-
tangible assets and property, plant and equipment
see “—Capital Expenditures” below.
INVESTING ACTIVITIES
YEAR ENDED DECEMBER 31, 2022
For the year ended December 31, 2022, our net cash
used in investing activities was €805 million, primari-
ly attributable to: (i) €457 million of additions to intan-
gible assets and, (ii) €348 million of additions to prop-
erty, plant and equipment. For a detailed analysis of
additions to intangible assets and property, plant and
equipment see “—Capital Expenditures” below.
FINANCING ACTIVITIES
YEAR ENDED DECEMBER 31, 2024
For the year ended December 31, 2024, net cash
used in financing activities was €325 million, primar-
ily attributable to:
(i)
€581 million to repurchase common shares un-
der the Company’s share repurchase program
(including the Sell-to-Cover practice under the
Group’s equity incentive plans);
(ii)
€445 million of dividends paid (of which €5 mil-
lion was to non-controlling interests);
(iii) €244 million for repayments related to our revolv-
ing securitization programs in the United States;
(iv) €105 million for repayments of borrowings
from banks and other financial institutions; and
(v)
€62 million for repayments of lease liabilities
and other debt;
partially offset by:
(i)
€496 million in proceeds from the issuance of a
new bond with a principal amount of €500 mil-
lion due in 2030;
(ii)
€340 million in proceeds related to our revolv-
ing securitization programs in the United States;
(iii) €225 million in proceeds from bank borrow-
ings; and
(iv) €51 million in proceeds from other debt.
FINANCING ACTIVITIES
YEAR ENDED DECEMBER 31, 2023
For the year ended December 31, 2023, net cash
used in financing activities was €1,109 million, pri-
marily attributable to:
(i)
€385 million for the full repayment upon maturi-
ty of a bond previously issued in 2016 and €191
million for the partial repayment of a bond due
in 2025 following a tender offer by the Group;
(ii)
€461 million to repurchase common shares un-
der the Company’s share repurchase program
(including the “Sell-to-Cover” practice under the
equity incentive plans);
(iii) €334 million of dividends paid (of which €329
million was to owners of the parent and €5 mil-
lion was to non-controlling interests);
(iv) €73 million of repayments of borrowings from
banks and other financial institutions, and
(v)
€18 million for repayments of lease liabilities;
partially offset by:
(i)
€250 million of proceeds from borrowings
from banks and other financial institutions; and
(ii)
€102 million of proceeds net of repayments re-
lated to our revolving securitization programs
in the United States (proceeds of €151 million
and repayments of €49 million).
FINANCING ACTIVITIES
YEAR ENDED DECEMBER 31, 2022
For the year ended December 31, 2022, our net cash
used in financing activities was €554 million, primar-
ily attributable to:
(i)
€397 million to repurchase common shares un-
der the Company’s share repurchase program
(including the “Sell-to-Cover” practice under the
equity incentive plans);
(ii)
€252 million of dividends paid (of which €250
million was to owners of the parent and €2 mil-
lion was to non-controlling interests);
(iii) €46 million related to the net change in borrow-
ings to banks and other financial institutions; and
(iv) €17 million in repayments of lease liabilities;
partially offset by:
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
105
BOARD REPORT
(i)
€146 million of proceeds net of repayments re-
lated to our revolving securitization programs
in the United States; and
(ii)
€12 million related to the net change in other debt.
CAPITAL EXPENDITURES
Capital expenditures are defined as additions to
property, plant and equipment (including right-of-
use assets recognized in accordance with IFRS 16 —
Leases) and intangible assets. Our capital investments
generally focus on efforts to support continuous
product portfolio renewal and expansion, including
for the required infrastructure, as well as develop-
ment activities aimed at continually innovating and
improving our cars, including the integration of hy-
brid and electric engine technology more broadly
into our product portfolio. We expect that our capital
expenditures in the next few years will continue to be
primarily focused on broadening and innovating our
product range, consistent with our plans to launch
15 models over the period from 2023 to 2026, as well
as on infrastructure investments to further enhance
our technological edge with innovation and the devel-
opment of core components in house.
Capital
expenditures
for
the
years
ended
December 31, 2024, 2023 and 2022 were €1,064 mil-
lion, €911 million and €824 million, respectively.
The following table sets forth a breakdown of capital expenditures by
category for each of the years ended December 31, 2024, 2023 and 2022:
For the years ended December 31,
2024
2023
2022
(€ million)
Intangible assets
Externally acquired and internally
generated development costs
476
448
416
Patents, concessions and licenses
26
24
31
Other intangible assets
5
15
10
Total intangible assets
507
487
457
Property, plant and equipment
Land and industrial buildings
58
32
18
Plant, machinery and equipment
105
113
154
Other assets
61
36
27
Advances and assets under construction
333
243
168
Total property, plant and equipment
557
424
367
of which leases recognized in accordance with IFRS 16
75
42
19
Total capital expenditures
1,064
911
824
INTANGIBLE ASSETS
Our total capital expenditures for intangible assets
for the year ended December 31, 2024 were €507
million (€487 million and €457 million for the years
ended December 31, 2023 and 2022, respectively).
The most significant investments in intangible
assets relate to externally acquired and internally
generated development costs. In particular, we
make such investments to support the development
of our current and future product offering. The cap-
italized development costs primarily include materi-
als and personnel costs relating to the engineering,
design and development activities focused on con-
tent enhancement of existing cars and new mod-
els, including to broaden and innovate our product
portfolio and our ongoing investments in advanced
technologies (including hybrid and electric), as well
as the development of key components used in our
cars, which are necessary to provide continuing
performance upgrades to our customers and which
we expect to continue to develop primarily in-house.
In recent periods, our capitalized developments
costs have significantly increased for the aforemen-
tioned initiatives from €416 million in 2022 to €448
million in 2023 and €476 million in 2024. This has con-
tributed to an increase in the proportion of capital-
ized development costs compared to total research
and development incurred due to the effects of the
advancement through the stages of development for
many of the technologies we are creating. In particular,
capitalized development costs as a proportion of total
research and development incurred (both capitalized
and expensed) increased to 45.8 percent in 2024 com-
pared to 45.4 percent in 2023 and 44.5 percent in 2022.
For the year ended December 31, 2024, we invest-
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ed €476 million in externally acquired and internally
generated development costs, of which €283 million
primarily related to the development of models to be
launched in future years and €193 million primarily
related to the development of our current product
portfolio and components.
For the year ended December 31, 2023, we
invested €448 million in externally acquired and
internally generated development costs, of which
€286 million primarily related to the development
of models to be launched in future years and €162
million primarily related to the development of our
current product portfolio and components.
For the year ended December 31, 2022, we
invested €416 million in externally acquired and
internally generated development costs, of which
€301 million primarily related to the development
of models to be launched in future years and €115
million primarily related to the development of our
current product portfolio and components.
PROPERTY, PLANT AND EQUIPMENT
Our total capital expenditures in property, plant and
equipment for the year ended December 31, 2024
were €557 million (€424 million and €367 million for
the years ended December 31, 2023 and 2022, re-
spectively), of which €75 million related to right-of-
use assets (€42 million and 19 million for the years
ended December 31, 2023 and 2022, respectively).
For the years ended December 31, 2024, 2023
and 2022, we made significant investments in infra-
structures in line with our growth plans and our
focus on the renewal and broadening of our prod-
uct portfolio and supporting future model launches.
In particular, we made investments:
• for our new e-building, which was inaugurated in
June 2024;
• in car and engine production lines (including for
models to be launched in future years), as well as
in our personalization programs; and
• the new paint shop.
At December 31, 2024, the Group had contrac-
tual commitments for the purchase of property,
plant and equipment amounting to €397 million (€115
million at December 31, 2023). The increase in con-
tractual commitments reflects the aforementioned
period of structurally higher capital spending as we
make investments in infrastructure projects, includ-
ing the new paint shop, as well as broaden our car
architectures, prioritize innovation and advanced
technologies, and enrich our product portfolio with
hybrid and electric powertrains.
CONTRACTUAL OBLIGATIONS
The following table summarizes payments due un-
der our significant contractual commitments at
December 31, 2024:
Payments due by period
Less than
1 year
1 to 3
years
3 to 5
years
After
5 years
Total
(€ million)
Long-term debt (1)
1,176
739
375
800
3,090
Interest on long-term debt (2)
80
82
51
13
226
Lease obligations (principal) (3)
26
39
26
35
126
Lease obligations (interest)
3
5
3
3
14
Unconditional minimum purchase obligations (4)
112
56
46
—
214
Purchase obligations (5)
307
90
—
—
397
Total contractual obligations
1,704
1,011
501
851
4,067
(1)
Amounts presented relate to the principal amounts of
long-term debt, excluding lease liabilities and 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.
See the table below for a reconciliation of the contractual
commitments of our long-term debt to the debt recognized
in the consolidated statement of financial position included
within our Consolidated Financial Statements.
(2)
Amounts include interest payments based on the
contractual terms and current interest rates on our long-
term debt. Where interest rates are variable, they were
determined using the rates in effect at December 31, 2024.
(3)
Lease obligations mainly relate to leases for Ferrari stores,
industrial buildings and certain other leased 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 research
and development activities 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.
108
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The long-term debt obligations reflected in the table above can be
reconciled to the amount recognized in the consolidated statement of
financial position at December 31, 2024 (in our Consolidated Financial
Statements included elsewhere in this document) as follows:
(€ million)
Debt
3,352
Short-term debt obligations
(124)
Lease liabilities
(126)
Accrued interest and amortized cost effects
(12)
Long-term debt
3,090
PENSION, POST-EMPLOYMENT BENEFITS AND
OTHER PROVISIONS FOR EMPLOYEES
We provide post-employment benefits for certain
active employees and retirees of the Group. We
classify these benefits on the basis of the type of
benefit provided and in particular as defined con-
tribution plans, defined benefit obligations or other
provisions for employees. At December 31, 2024, the
liability for such obligations amounted to €134 mil-
lion (€123 million at December 31, 2023). See Note
22 “Employee benefits” to the Consolidated Financial
Statements included elsewhere in this document.
OTHER COMMITMENTS AND OBLIGATIONS
We have entered into various arrangements with
unconsolidated third parties in the ordinary course
of business under which we have certain commit-
ments and obligations that are not currently report-
ed as obligations in our consolidated statement of fi-
nancial position. For additional information see Note
29 “Commitments” to the Consolidated Financial
Statements included elsewhere in this document.
NON-GAAP FINANCIAL MEASURES
We monitor and evaluate our operating and finan-
cial performance and financial position using sever-
al non-GAAP financial measures, including several
adjusted measures which present how the underly-
ing business has performed prior to the impact of
adjusting items, which may obscure the underlying
performance and impair comparability of results
between periods. We believe that these non-GAAP
financial measures provide useful and relevant in-
formation to management and investors regarding
our performance and improve the ability to assess
our financial performance and financial position.
They also provide us with comparable measures
that facilitate management’s ability to identify op-
erational trends, as well as make decisions regard-
ing future spending, resource allocations and other
operational decisions. Management also uses these
measures for budgeting and business plans, perfor-
mance monitoring, management remuneration and
external reporting purposes.
In particular, we present the following non-GAAP
financial measures, which are further described
below: EBITDA, Adjusted EBITDA, Adjusted Operating
Profit (Adjusted EBIT), Adjusted Net Profit, Adjusted
Basic Earnings per Common Share, Adjusted Diluted
Earnings per Common Share, Net Debt, Net Industrial
Debt, Free Cash Flow and Free Cash Flow from
Industrial Activities, as well as a number of financial
metrics measured on a constant currency basis.
While similar measures are widely used in the
industry in which we operate, the non-GAAP financial
measures we use may not be comparable to other
similarly titled measures used by other companies
nor are they intended to be substitutes for measures
of financial performance or financial position as pre-
pared in accordance with IFRS Accounting Standards.
EBITDA AND ADJUSTED EBITDA
EBITDA is defined as net profit before income tax ex-
pense, financial (income)/expenses, net and amorti-
zation and depreciation. Adjusted EBITDA is defined
as EBITDA as adjusted for certain income and costs,
which are significant in nature, expected to occur in-
frequently, and that management considers not re-
flective of ongoing operational activities.
The following table sets forth the calculation of
EBITDA and Adjusted EBITDA for the years ended
December 31, 2024, 2023 and 2022, and provides
a reconciliation of these non-GAAP measures to
net profit. There were no adjustments impacting
Adjusted EBITDA, therefore Adjusted EBITDA was
equal to EBITDA for the periods presented.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
109
BOARD REPORT
For the years ended December 31,
2024
2023
2022
(€ million)
Net profit
1,526
1,257
939
Income tax expense
363
345
239
Financial (income)/expenses, net
(1)
15
49
Operating profit (EBIT)
1,888
1,617
1,227
Amortization and depreciation
667
662
546
EBITDA
2,555
2,279
1,773
Adjustments
—
—
—
Adjusted EBITDA
2,555
2,279
1,773
ADJUSTED OPERATING PROFIT (ADJUSTED EBIT)
Adjusted Operating Profit (Adjusted EBIT) represents operating profit
(EBIT) as adjusted for certain income and costs which are significant in
nature, expected to occur infrequently, and that management considers
not reflective of ongoing operational activities.
The following table presents operating profit (EBIT) and Adjusted
Operating Profit (Adjusted EBIT) for the years ended December 31, 2024,
2023 and 2022. There were no adjustments impacting Operating Profit
(EBIT), therefore Adjusted Operating Profit (Adjusted EBIT) was equal to
operating profit (EBIT) for the periods presented.
For the years ended December 31,
2024
2023
2022
(€ million)
Operating profit (EBIT)
1,888
1,617
1,227
Adjustments
—
—
—
Adjusted Operating Profit (Adjusted EBIT)
1,888
1,617
1,227
ADJUSTED NET PROFIT
Adjusted Net Profit represents net profit as adjusted for certain income
and costs (net of tax effects) which are significant in nature, expected
to occur infrequently, and that management considers not reflective of
ongoing operational activities.
The following table presents net profit and Adjusted Net Profit for
the years ended December 31, 2024, 2023 and 2022. There were no
adjustments impacting net profit, therefore Adjusted Net Profit was
equal to net profit for the periods presented.
For the years ended December 31,
2024
2023
2022
(€ million)
Net profit
1,526
1,257
939
Adjustments
—
—
—
Adjusted Net Profit
1,526
1,257
939
110
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ADJUSTED BASIC EARNINGS PER COMMON
SHARE AND ADJUSTED DILUTED EARNINGS PER
COMMON SHARE
Adjusted Basic Earnings per Common Share and
Adjusted Diluted Earnings per Common Share rep-
resent earnings per share, as adjusted for certain in-
come and costs (net of tax effects) which are signif-
icant in nature, expected to occur infrequently, and
that management considers not reflective of ongo-
ing operational activities.
The
following
table
presents
Adjusted
Basic
Earnings per Common Share and Adjusted Diluted
Earnings per Common Share for the years ended
December 31, 2024, 2023 and 2022. There were no
adjustments impacting basic Earnings per com-
mon share and diluted earnings per common share,
therefore Adjusted Basic Earnings per Common
Share and Adjusted Diluted Earnings per Common
Share were equal to basic earnings per common
share and diluted earnings per common share for
the periods presented.
For the years ended December 31,
2024
2023
2022
Net profit attributable to owners of the Company
€ million
1,522
1,252
933
Weighted average number of common shares for basic earnings
per share
thousand
179,743
181,220
182,836
Basic earnings per common share
€
8.47
6.91
5.11
Adjustments
€
—
—
—
Adjusted Basic Earnings per Common Share
€
8.47
6.91
5.11
Weighted average number of common shares for diluted
earnings per share(1)
thousand
179,992
181,511
183,121
Diluted earnings per common share
€
8.46
6.90
5.09
Adjustments
€
—
—
—
Adjusted Diluted Earnings per Common Share
€
8.46
6.90
5.09
(1)
For the years ended December 31, 2024, 2023 and 2022, the weighted average number of common shares for diluted earnings per
common share includes the theoretical effect of the potential common shares that would be issued for outstanding share-based
awards granted by the Group (assuming 100 percent of the target awards vested).
See Note 12 “Earnings per Share” to the Consolidated Financial State-
ments, included elsewhere in this document, for the calculation of the basic
earnings per common share and diluted earnings per common share.
NET DEBT AND NET INDUSTRIAL DEBT
Due to different sources of cash flows used for the
repayment of debt between industrial activities
and financial services activities, and the different
business structure and leverage implications, Net
Industrial Debt, together with Net Debt, are the pri-
mary measures used by us to analyze our capital
structure and financial leverage.
NET DEBT
Is defined as debt less cash and cash equivalents
and is composed of Net Industrial Debt and Net Debt
of Financial Services Activities, which are both de-
fined below.
NET INDUSTRIAL DEBT
Is defined as debt of our industrial activities less
cash and cash equivalents of our industrial activities.
Net Industrial Debt represents our Net Debt less our
Net Debt of Financial Services Activities (as defined
below). Industrial activities include all of the Group’s
activities except for those relating to financial ser-
vices activities, which are further described below.
NET DEBT OF FINANCIAL SERVICES ACTIVITIES
Is defined as debt of our financial services activities
less cash and cash equivalents of our financial ser-
vices activities. The Group’s financial services ac-
tivities relate to its fully owned subsidiary Ferrari
Financial Services Inc., whose primary business is
to offer retail client financing for the sale of Ferrari
cars in the United States and to manage the relat-
ed financial receivables portfolio. The Net Debt of
Financial Services Activities primarily relates to our
asset-backed financing (securitizations) of the receiv-
ables generated by our financial services activities in
the United States.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
111
BOARD REPORT
The following table sets presents our Net Debt, Net Debt of Financial
Services Activities and Net Industrial Debt at December 31, 2024 and 2023.
At December 31,
2024
2023
Group
Financial
Services
Activities
Industrial
Activities
Group
Financial
Services
Activities
Industrial
Activities
(€ million)
Bonds and notes
(1,413)
—
(1,413)
(904)
—
(904)
Asset-backed financing (Securitizations)
(1,342)
(1,342)
—
(1,166)
(1,166)
—
Borrowings from banks and other
financial institutions
(415)
(63)
(352)
(291)
(73)
(218)
Lease liabilities
(126)
—
(126)
(73)
—
(73)
Other debt
(56)
(51)
(5)
(43)
(42)
(1)
Total debt with third parties
(3,352)
(1,456)
(1,896)
(2,477)
(1,281)
(1,196)
Intercompany (1)
—
(29)
29
—
(9)
9
Total debt, net of intercompany
(3,352)
(1,485)
(1,867)
(2,477)
(1,290)
(1,187)
Cash and cash equivalents
1,742
55
1,687
1,122
34
1,088
Net Debt
(1,610)
(1,430)
(180)
(1,355)
(1,256)
(99)
(1)
Represents intercompany (debt)/receivables between industrial activities and financial services activities.
For additional information relating to our total debt, see Note 24 “Debt”
to the Consolidated Financial Statements included elsewhere in this
document.
The Net Debt of Financial Services Activities pri-
marily relates to our asset-backed financing (secu-
ritizations) of the receivables generated by our fi-
nancial services activities in the United States. The
latter amounted to €1,662 million and €1,451 million
at December 31, 2024 and 2023, respectively. For
further details relating to our receivables from fi-
nancing activities and our asset-backed financing
(securitizations), see Note 18 “Current Receivables
and Other Current Assets” and Note 24 “Debt” to the
Consolidated Financial Statements included else-
where in this document.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents amounted to €1,742 mil-
lion at December 31, 2024 compared to €1,122 mil-
lion at December 31, 2023. See “—Cash Flows” above
for further details.
At December 31, 2024, 88 percent of our cash and
cash equivalents were denominated in Euro (80
percent at December 31, 2023). Our cash and cash
equivalents denominated in currencies other than
the Euro are available mostly to Ferrari S.p.A. and
certain subsidiaries which operate in areas other
than the Eurozone. Cash held in such countries may
be subject to transfer restrictions depending on the
jurisdictions in which these subsidiaries operate. In
particular, cash held in China (including in curren-
cies other than the Chinese Yuan), which amounted
to €63 million at December 31, 2024 (€81 million at
December 31, 2023), is subject to certain repatria-
tion restrictions and may only be repatriated as a re-
payment of payables or debt, or as dividends or cap-
ital distributions. We do not currently believe that
such transfer restrictions have an adverse impact
on our ability to meet our liquidity requirements.
112
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table sets forth an analysis of the currencies in which our
cash and cash equivalents were denominated at the dates presented.
At December 31,
2024
2023
(€ million)
Euro
1,536
895
U.S. Dollar
108
97
Chinese Yuan
63
81
Swiss Franc
12
11
Pound Sterling
8
20
Other currencies
15
18
Total
1,742
1,122
Cash collected from the settlement of receivables under securitization
programs is subject to certain restrictions regarding its use and is
primarily applied to repay principal and interest of the related funding.
Such cash amounted to €54 million at December 31, 2024 (€32 million at
December 31, 2023).
TOTAL AVAILABLE LIQUIDITY
Total available liquidity (defined as cash and cash equivalents plus
undrawn committed credit lines) at December 31, 2024 was €2,292 million
(€1,722 million at December 31, 2023).The following table summarizes
our total available liquidity:
At December 31,
2024
2023
(€ million)
Cash and cash equivalents
1,742
1,122
Undrawn committed credit lines
550
600
Total available liquidity
2,292
1,722
The undrawn committed credit lines at December 31, 2024 and 2023 relate
to revolving credit facilities. For further details, see Note 24 “Debt” to the
Consolidated Financial Statements included elsewhere in this document.
FREE CASH FLOW AND FREE CASH FLOW
FROM INDUSTRIAL ACTIVITIES
Free Cash Flow and Free Cash Flow from Industrial
Activities are two of our primary key performance
indicators to measure the Group’s performance
and cash flow generation. These measures are not
representative of residual cash flows available for
discretionary purposes.
FREE CASH FLOW
Is defined as consolidated cash flows from oper-
ating activities less investments in property, plant
and equipment (excluding right-of-use assets rec-
ognized during the period in accordance with IFRS
16 — Leases), intangible assets and joint ventures.
Free Cash Flow is composed of Free Cash Flow from
Industrial Activities and Free Cash Flow from Financial
Services Activities, which are both defined below.
FREE CASH FLOW FROM
INDUSTRIAL ACTIVITIES
Is defined as cash flows from operating activi-
ties of our industrial activities less investments in
property, plant and equipment (excluding right-of-
use assets recognized during the period in accor-
dance with IFRS 16 — Leases), intangible assets and
joint ventures of our industrial activities. Free Cash
Flow from Industrial Activities represents our Free
Cash Flow less our Free Cash Flow from Financial
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
113
BOARD REPORT
Services Activities (as defined below). Industrial ac-
tivities include all of the Group’s activities except for
those relating to financial services activities, which
are further described below.
FREE CASH FLOW FROM
FINANCIAL SERVICES ACTIVITIES
Is defined as cash flows from operating activities of
our financial services activities less investments in
property, plant and equipment (excluding right-of-
use assets recognized during the period in accor-
dance with IFRS 16 — Leases), intangible assets and
joint ventures of our financial services activities. The
Group’s financial services activities relate only to its
fully owned subsidiary Ferrari Financial Services Inc.,
whose primary business is to offer retail client financ-
ing for the sale of Ferrari cars in the United States and
to manage the related financial receivables portfolio.
Its cash flows from operating activities are mainly
driven by the change in its financial receivables port-
folio (receivables from financing activities), as well as
its operating result during the period.
The following table presents our Free Cash Flow, Free Cash Flow from
Financial Services Activities and Free Cash Flow from Industrial Activities
for the years ended December 31, 2024, 2023 and 2022.
For the years ended December 31,
2024
2023
2022
Group
Financial
Services
Activities
Industrial
Activities
Group
Financial
Services
Activities
Industrial
Activities
Group
Financial
Services
Activities
Industrial
Activities
(€ million)
Cash flows from/(used in)(1)
operating activities
1,927
(89)
2,016
1,717
(84)
1,801
1,403
(161)
1,564
Investments in property, plant
and equipment, intangible
assets and joint ventures
(989)
—
(989)
(869)
—
(869)
(806)
—
(806)
Free Cash Flow
938
(89)
1,027
848
(84)
932
597
(161)
758
(1)
For the years ended December 31, 2024, 2023 and 2022, cash flows used in operating activities of financial services activities mainly
reflects the outflows derived from the increase in the financial receivables portfolio (receivables from financing activities in the
consolidated statement of financial position) of €118.7 million, €107.2 million and €187.9 million, respectively.
Free Cash Flow for the year ended December 31, 2024 was €938 million
compared to €848 million for the year ended December 31, 2023 and
€597 million for the year ended December 31, 2022. For an explanation of
the drivers in Free Cash Flow see “—Cash Flows” above.
Free Cash Flow from Industrial Activities for the
year ended December 31, 2024 was €1,027 million,
an increase of €95 million compared to €932 million
for the year ended December 31, 2023. The increase
was primarily attributable to (i) an increase in net
profit excluding non-cash items of €276 million and
(ii) a decrease in cash absorbed from inventories,
trade receivables and trade payables of €56 million,
and (iii) lower net finance costs paid of €50 million,
partially offset by (iv) an increase in investments in
property, plant and equipment and intangible assets
of €120 million, reflecting our initiatives for product
and infrastructure development, (v) higher income
tax paid of €117 million, and (vi) a decrease from oth-
er operating assets and liabilities of €69 million.
Free Cash Flow from Industrial Activities for
the year ended December 31, 2023 was €932 mil-
lion, an increase of €174 million compared to €758
million for the year ended December 31, 2022. The
increase in Free Cash Flow from Industrial Activities
was primarily attributable to an increase in net profit
before income tax expense, financial (income)/
expenses, net, amortization and depreciation and
other non-cash income and expenses, partially off-
set by (i) higher absorption of cash for working cap-
ital, mainly due to an increase in inventories driven
by production planning and an enriched product
mix, (ii) lower collection of advances for cars in 2023
compared to 2022 (which benefited from the collec-
tion of advances for the Daytona SP3), and (iii) higher
investments in intangible assets and property, plant
and equipment reflecting our initiatives for product
and infrastructure development.
CONSTANT CURRENCY INFORMATION
The “Results of Operations” discussion above in-
cludes information about our net revenues on a con-
stant currency basis, which excludes the effects of
foreign currency translation from our subsidiaries
114
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
with functional currencies other than Euro, as well
as the effects of foreign currency transaction im-
pact and foreign currency hedging. We use this in-
formation to assess how the underlying revenues
changed independent of fluctuations in foreign
currency exchange rates and hedging. We calcu-
late constant currency by (i) applying the prior-pe-
riod average foreign currency exchange rates to
translate current period revenues of foreign sub-
sidiaries expressed in local functional currency oth-
er than Euro, (ii) applying the prior-period average
foreign currency exchange rates to current period
revenues originated in a currency other than the
functional currency of the applicable entity, and (iii)
eliminating the variances of any foreign currency
hedging (see Note 2 “Material Accounting Policies”
to the Consolidated Financial Statements, included
elsewhere in this document, for information on the
foreign currency exchange rates applied). Although
we do not believe that these measures are a substi-
tute for GAAP measures, we do believe that reve-
nues excluding the impact of currency fluctuations
and the impacts of hedging provide additional use-
ful information to investors regarding the operating
performance on a local currency basis.
2025 OUTLOOK
2025 guidance, based on the following assumptions
for the year and the current custom duties framework:
• Positive product and country mix, along with
strong personalizations
• Improved contribution from racing activities,
reflecting higher sponsorships as well as com-
mercial revenues linked to the better Formula 1
ranking achieved in 2024
• Lifestyle activities to expand its revenues growth
rate, while investing to accelerate development
and enlarge the network
• Continuous brand investments, higher racing
and digital transformation expenses
• Increased costs implied by the ongoing supply
chain challenges
• Higher effective tax rate in connection to the
change of the Patent Box regime
• Robust Industrial free cash flow generation driv-
en by strong profitability, partially offset by capital
expenditures more contained versus prior year
(€B, unless otherwise stated)
2024A
2025 GUIDANCE
GROWTH VS 2024
NET REVENUES
6.7
>7.0
≥5%
ADJ. EBITDA (margin %)
2.56
38.3%
≥2.68
≥38.3%
≥5%
ADJ. OPERATING PROFIT (EBIT) (margin %)
1.89
28.3%
≥2.03
≥29.0%
≥7%
ADJ. DILUTED EPS (€)
8.46(1)
≥8.60(1)
≥2%
INDUSTRIAL FCF
1.03
≥1.20
≥17%
(1)
Calculated using the weighted average diluted number of common shares at December 31, 2024 (179,992 thousand).
MAJOR SHAREHOLDERS
Exor is our largest shareholder through its approx-
imately 24.84 percent shareholding interest in our
outstanding common shares (as of February 6, 2025).
As a result of the loyalty voting mechanism, Exor’s
voting power is approximately 36.69 percent (as of
February 6, 2025). In addition, as of February 6, 2025,
Trust Piero Ferrari, a Jersey trust established by Mr.
Piero Ferrari, holds approximately 10.56 percent
of our outstanding common shares. Piero Ferrari
holds the usufruct over such shares including the
right to exercise the voting rights of such shares,
corresponding to, as a result of the loyalty voting
mechanism, a voting power of approximately 15.60
percent. The percentages of ownership and voting
power above are calculated based on the number of
outstanding shares net of treasury shares.
Exor and Mr. Piero Ferrari informed us that
they have entered into a shareholder agreement,
subsequently amended to reflect adherence by
Trust Piero Ferrari, summarized below under
“—Shareholders’ Agreement”.
Exor is controlled by Giovanni Agnelli B.V. (“G.A.”),
which holds approximately 57.07 percent of Exor’s
outstanding ordinary shares and 86.29 percent of
its voting rights (based on Exor’s latest public capi-
tal filings available). G.A. is a Dutch private company
with limited liability (besloten vennootschap met bep-
erkte aansprakelijkheid) with interests represented
by shares, founded by Giovanni Agnelli and currently
held by members of the Agnelli and Nasi families,
descendants of Giovanni Agnelli, founder of Fiat. Its
present principal business activity is to purchase,
administer and dispose of equity interests in public
and private entities and, in particular, to ensure the
cohesion and continuity of the administration of its
controlling equity interests. The managing direc-
tors of G.A., as of February 10, 2025, were Jeroen
Preller, Andrea Agnelli, Luca Ferrero de’ Gubernatis
Ventimiglia, Benedetto Della Chiesa, Johannes Casper
Brouwer, Filippo Scognamiglio Pasini, Alexandre von
Furstenberg and Niccolò Camerana.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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Based on the information in Ferrari’s shareholder register, regulatory
filings with the AFM and the SEC and other sources available to us, the
following shareholders owned, directly or indirectly, in excess of three
percent of the common shares holding voting rights of Ferrari, as of
February 6, 2025:
Shareholder
Number of common shares
Percentage owned (1)
Exor N.V. (2)
44,435,280
24.84%
Trust Piero Ferrari (2)
18,894,295
10.56%
Other public shareholders
115,535,414
64.60%
(1)
The percentages of share capital set out in this table
are calculated as the ratio of (i) the aggregate number
of outstanding common shares beneficially owned by
the shareholder to (ii) the total number of outstanding
common shares (net of treasury shares) of Ferrari. These
percentages may slightly differ from the percentages of
share capital included in the public register held by the
AFM of all notifications made pursuant to the disclosure
obligations under chapter 5.3 of the Dutch Act on financial
supervision (Wet op het financieel toezicht; the “AFS”), inter
alia, because any shares held in treasury by Ferrari are
included in the relevant denominators for purposes
of the AFS disclosure obligations.
(2)
Each of Exor and Trust Piero Ferrari participate in the
loyalty voting program of Ferrari. As of February 6, 2025,
Exor owned 44,435,280 special voting shares and Trust
Piero Ferrari owned 18,892,160 special voting shares.
Therefore, as discussed above in this section, the voting
power of Exor and Trust Piero Ferrari in Ferrari is higher
than the percentage of common shares beneficially held
as presented in this table.
Based on the information in Ferrari’s shareholder reg-
ister and other sources available to us, as of February 6,
2025, approximately 57.26 million Ferrari common
shares, or 29.53 percent of the outstanding Ferrari
common shares, were held in the United States. As of
the same date, approximately 1,882 record holders
had registered addresses in the United States.
SHAREHOLDERS’ AGREEMENT
On December 23, 2015, Exor and Piero Ferrari en-
tered into a Shareholders’ Agreement, which be-
came effective at the completion of the Separation
on January 3, 2016 (as amended, the “Shareholders’
Agreement”) and prior to the admission to listing
and trading of the common shares of Ferrari on
Euronext Milan. On December 16, 2022, Exor, Piero
Ferrari and the newly established Trust Piero Ferrari
entered into an adherence and amendment agree-
ment (the “Adherence and Amendment Agreement”)
to the Shareholders’ Agreement, whereby Trust
Piero Ferrari was added as a new party to the
Shareholders’ Agreement and certain provisions of
the Shareholders Agreement were amended. This
followed the establishment of Trust Piero Ferrari and
the grant to Trust Piero Ferrari of the bare owner-
ship of Ferrari shares as described under “—Major
Shareholders” above. Ferrari is not a party to the
Shareholders’ Agreement nor to the Adherence
and Amendment Agreement, and does not have any
rights or obligations thereunder. Below is a summa-
ry of the principal provisions of the Shareholders’
Agreement based on regulatory filings made by
Exor, Trust Piero Ferrari and Piero Ferrari.
CONSULTATION
For the purposes of forming and exercising, to the
extent possible, a common view on the items on the
agenda of any General Meeting of shareholders of
Ferrari, Exor and Piero Ferrari will consult with each
other prior to each General Meeting. For the purposes
of this consultation right and duties, representatives
of each of Exor and Piero Ferrari shall meet in order
to discuss in good faith whether they have or can find
a common view as to the matters on the agenda of
the immediately following General Meeting. This con-
sultation right does not include an obligation to vote
in any certain way nor does it constitute a veto right
in favor of Piero Ferrari. The consultation rights and
obligations set forth in the Shareholders’ Agreement
apply solely between Exor and Piero Ferrari, and do
not apply to Trust Piero Ferrari.
In the event of (i) consolidation upon Trust Piero
Ferrari of the usufruct on the common shares of
Ferrari, as held by Piero Ferrari, and the bare own-
ership on the common shares of Ferrari, as held
by Trust Piero Ferrari, or (ii) any other transfer of
the usufruct on the common shares of Ferrari, as
held by Piero Ferrari, to a Permitted Transferee
(as defined in the Shareholders’ Agreement), the
consultation rights and obligations set forth in the
Shareholders’ Agreement will automatically termi-
nate and cease to have any validity and effect and
a new consultation procedure will automatically
come into force and effect between Exor and the
relevant Permitted Transferee (including Trust
Piero Ferrari, if applicable). Such new consultation
procedure will entail no obligation on the parties to
reach a common view and each of Exor and the rel-
evant Permitted Transferee (including the trustee
acting on behalf of Trust Piero Ferrari, if applicable),
will at all times remain free to exercise its voting
rights independently.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PRE-EMPTION RIGHT IN FAVOR OF EXOR
AND RIGHT OF FIRST OFFER OF PIERO FERRARI
Except for Permitted Transfers (as defined in the
Shareholders’ Agreement), the bare ownership on
the common shares of Ferrari, as held by Trust Piero
Ferrari, and the usufruct on the common shares of
Ferrari, as held by Piero Ferrari, will not be trans-
ferred separately. In the event of the joint transfer
of bare ownership and usufruct of all or part of the
Ferrari common shares held by Trust Piero Ferrari,
Exor will have the right to purchase all (but not less
than all) of the common shares being transferred
on the terms of the original proposed transferor, in
case the original proposed transfer was for no con-
sideration, at market prices determined pursuant to
the Shareholders’ Agreement.
In the event Exor intends to transfer (in whole or
in part) its common shares to a third party, either
solicited or unsolicited, Piero Ferrari will have the
right to make a binding, unconditional and irrevoca-
ble all cash offer for the purchase of such common
shares. Trust Piero Ferrari will not have any rights in
connection with such right of first offer.
The foregoing will not apply in the case of trans-
fers of Ferrari common shares: (i) by any party to the
Shareholders’ Agreement, to a party that qualifies
as a “Loyalty Transferee” (as defined in the Ferrari
Articles of Association) of such party, (ii) by Exor,
to any affiliate of G.A., to a successor in business of
G.A. and to any affiliate of a successor in business
of G.A., and (iii) by any party to the Shareholders’
Agreement that is an individual, to an entity wholly
owned and controlled by that same party. In addi-
tion, the provisions regarding the pre-emption
right in favor of Exor and right of first offer of Piero
Ferrari will not apply in relation to, and Trust Piero
Ferrari will be free and allowed to carry out, market
sales to third parties of its Ferrari common shares
(provided always that bare ownership and usufruct
are transferred together) which in the aggregate do
not exceed, during the whole period of validity of the
Shareholders’ Agreement, 0.5 percent of the num-
ber of common shares owned by Piero Ferrari upon
completion of the Separation.
SUCCESSION
In the event of (i) consolidation upon Trust Piero
Ferrari of the usufruct on the common shares of
Ferrari, as held by Piero Ferrari, and the bare own-
ership on the common shares of Ferrari, as held
by Trust Piero Ferrari, or (ii) any other transfer of
the usufruct on the common shares of Ferrari, as
held by Piero Ferrari, to a Permitted Transferee, all
rights and obligations pertaining to Piero Ferrari
under the Shareholders’ Agreement other than
the consultation rights and obligations described
above (and, therefore, including the right of first
offer) shall automatically be transferred to the rel-
evant Permitted Transferee (including Trust Piero
Ferrari, if applicable) to the extent that such provi-
sions cannot be classified as acting in concert pro-
visions within the meaning of the Dutch applicable
laws and regulations.
TERM
The Shareholders’ Agreement entered into force
upon completion of the Separation on January 3,
2016 and provides that it shall remain in force un-
til the fifth anniversary of the effective date of the
Separation, provided that if neither of the parties
to the Shareholders’ Agreement terminates the
Shareholders’ Agreement within six months before
the end of the initial term, then the Shareholders’
Agreement shall be renewed automatically for an-
other five year term. Since neither of the parties to
the Shareholders’ Agreement terminated it within
six months before January 3, 2021, the Shareholders’
Agreement was automatically renewed for another
five year term and, therefore, until January 3, 2026.
The Shareholders’ Agreement shall terminate
and cease to have any effect as a result of the trans-
fer of all the common shares owned by either Exor
or Trust Piero Ferrari to a third party.
GOVERNING LAW AND JURISDICTION
The Shareholders’ Agreement is governed by and
must be interpreted according to the laws of the
Netherlands. Any disputes arising out of or in connec-
tion with the Shareholders’ Agreement are subject
to the exclusive jurisdiction of the competent court
in Amsterdam, the Netherlands, without prejudice to
the right of appeal and appeal to the Supreme Court.
CORPORATE GOVERNANCE
INTRODUCTION
Ferrari N.V. is a public limited liability company, in-
corporated under the laws of the Netherlands. The
Company is the holding company of the Ferrari Group
following the separation of the Ferrari business from
Fiat Chrysler Automobiles N.V. (“FCA”), now Stellantis
N.V. (“Stellantis”). In this section, the “Company” refers
to Ferrari N.V. The Company qualifies as a foreign
private issuer under the New York Stock Exchange
(“NYSE”) listing standards and its common shares
are listed on the NYSE and on Euronext Milan (for-
merly Mercato Telematico Azionario).
In accordance with the NYSE rules, the Company
is permitted to follow its home country practice
with regard to certain corporate governance stan-
dards. Therefore, the Company has adopted, except
as discussed below under “Compliance with Dutch
Corporate Governance Code”, the best practice pro-
visions of the updated Dutch corporate governance
code issued by the Corporate Governance Code
Monitoring Committee, which entered into force on
January 1, 2018 (the “Dutch Corporate Governance
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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BOARD REPORT
Code”) and is applicable retroactively as from finan-
cial year 2017. The Dutch Corporate Governance
Code contains principles and best practice provi-
sions that regulate relations inter alia between the
board of directors of a company and its committees
and the relationship with the general meeting of
shareholders. On December 20, 2022, the Corporate
Governance Code Monitoring Committee published
an update to the Dutch Corporate Governance Code.
The updated Dutch Corporate Governance Code
has entered into force on January 1, 2024 and was
applicable retroactively as from financial year 2023.
In this Annual Report, the Company addresses
its overall corporate governance structure. The
Company discloses, and intends to disclose, any
material departure from the best practice provi-
sions of the Dutch Corporate Governance Code in
this and in its future annual reports.
For further information about culture see “—
Creating Value for Our Shareholders”.
BOARD OF DIRECTORS
Pursuant to the Company’s articles of asso-
ciation (the “Articles of Association”), its board of
directors (the “Board of Directors” or the “Board”)
consists of three or more directors (the “Directors”).
The current Board of Directors was appointed at
the annual general meeting of shareholders held on
April 17, 2024. Its term of office will expire on the day
of the next Annual General Meeting of Shareholders,
which is currently expected to be on April 16, 2025.
Each Director may be reappointed at any subse-
quent annual general meeting of shareholders.
The Board of Directors as a whole is responsi-
ble for the strategy of the Company. The Board of
Directors is composed of two executive Directors
(i.e., Mr. John Elkann, Executive Chairman, and Mr.
Benedetto Vigna, Chief Executive Officer) and nine
non-executive Directors. Pursuant to Article 17 of
the Articles of Association, the general authority to
represent the Company shall be vested in the Board
of Directors and the Chief Executive Officer. The
Chief Executive Officer has day-to-day responsibility
for the management of the Company and the Group.
The Board of Directors appointed the following
internal committees: (i) an Audit Committee, (ii) an
ESG Committee, and (iii) a Compensation Committee.
On certain key operational matters, the executive
Directors are supported by the Ferrari Leadership
Team (hereinafter also the “FLT”, formerly Senior
Management Team, and so renamed as a result of
the organizational changes implemented in January
2022), which is responsible for reviewing the oper-
ating performance of the businesses, collaborat-
ing on certain operational matters, supporting the
executive Directors with their tasks and executing
decisions of the Board of Directors and the day-to-
day management of the Company, primarily to the
extent it relates to the operational management.
Set forth below is the name, year of birth and position of each of the
persons currently serving as Directors of Ferrari N.V. Unless otherwise
indicated, the business address of each person listed below will be c/o
Ferrari, Via Abetone Inferiore n. 4, I-41053 Maranello (MO), Italy.
Name
Year of Birth
Position
John Elkann
1976
Executive Chairman and Executive Director
Benedetto Vigna
1969
Chief Executive Officer
Piero Ferrari (1)
1945
Vice Chairman and Non-Executive Director
Sergio Duca (1) (2)
1947
Senior Non-Executive Director
Delphine Arnault (1)
1975
Non-Executive Director
Francesca Bellettini
1970
Non-Executive Director
Eddy Cue (1)
1964
Non-Executive Director
John Galantic
1961
Non-Executive Director
Maria Patrizia Grieco (1)
1952
Non-Executive Director
Adam Keswick (1)
1973
Non-Executive Director
Mike Volpi
1966
Non-Executive Director
(1)
Reappointed in view of each Board member’s contributions
to the Board of Directors in the past eight years and
because each Non-Executive Director’s background,
specific skills and experience continues to be valuable to the
Company on the basis of each Board member’s biography
(shown herein below) and the relevant skills that they could
bring to the Company (set out in the table herein below).
(2)
The Board of Directors has resolved to appoint Sergio
Duca as chairman of the Board, as referred to in the Dutch
Civil Code, who will in such capacity have the title Chair
(Voorzitter).
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Nine Directors currently qualify as independent (rep-
resenting a majority) for purposes of NYSE rules and
Rule 10A-3 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and eight Directors
qualify as independent (representing a majority) for
purposes of the Dutch Corporate Governance Code.
In percentage terms, the share of independent mem-
bers of the non-executive Board members accord-
ing to the NYSE rules is 100% (nine out of nine) where-
as according to the Dutch Corporate Governance
Code the percentage is 88.89% (eight out of nine).
Please see “—Diversity Policy” below for a chart
representing the Board’s gender and age as of
December 31, 2024.
According to the applicable laws and the
Regulation of the Board, no works council or similar
employee participation bodies are required to be
established at the Company.
The Board of Directors has resolved to grant the
following titles:
• John Elkann: Chairman of the Company;
• Benedetto Vigna: Chief Executive Officer;
• Piero Ferrari: Vice-Chairman and Non-Executive
Director; and
• Sergio Duca: Chair of the Board (Voorzitter) and
Senior Non-Executive Director.
The following members are independent within the
meaning of the Dutch Corporate Governance Code
and NYSE rules:
• Delphine Arnault: Non-Executive Director;
• Francesca Bellettini: Non-Executive Director;
• Eddy CueNon-Executive Director;
• Sergio Duca: Senior Non-Executive Director;
• John Galantic: Non-Executive Director;
• Maria Patrizia Grieco: Non-Executive Director;
• Adam Keswick: Non-Executive Director; and
• Mike Volpi: Non-Executive Director.
In addition, Piero Ferrari is considered independent
within the meaning of the NYSE rules.
Directors are expected to prepare themselves
for and to attend all Board of Directors meetings,
the annual general meeting of shareholders and the
meetings of the committees on which they serve,
with the understanding that, on occasion, a Director
may be unable to attend a meeting.
During 2024, there were four meetings of the
Board of Directors. The attendance rate at these
meetings was 95.46 percent.
The non-executive Directors of the Company met
to discuss the functioning of the Board and its com-
mittees, the functioning of the executive Directors
as a corporate body of the company, or the corpo-
rate strategy and the main risks of the business, pur-
suant to best practice provisions 2.2.6, 2.2.7, 2.2.8 and
1.1.2 of the Dutch Corporate Governance Code.
Summary biographies for the current Directors of
Ferrari are included below:
JOHN ELKANN
(CHAIRMAN OF THE COMPANY
AND EXECUTIVE DIRECTOR)
Mr. John Elkann is Chief Executive Officer of EXOR and
Chairman of Stellantis N.V.. Elkann earned a scientific
baccalauréat from Lycée Victor Duruy in Paris and
an engineering degree from Politecnico di Torino. He
began his career in 2001 at General Electric, gaining
international experience in Asia, Europe, and North
America. As Ferrari’s Chair (since 2018) he has been
bolstering the company’s leadership in innovation,
luxury and sport competitions while preserving its
iconic legacy. Elkann joined Fiat Group in 2003 and
contributed to its growth and the eventual creation of
Stellantis in 2021, one of the world’s largest automo-
tive groups. In 2009 Elkann established Exor, which is
today the largest shareholder of companies such as
CNH and Philips, in addition to Ferrari and Stellantis.
In 2023, he founded Lingotto, a long-term investment
management company. Elkann is a board member
of Meta, and a trustee of MoMA. He chairs the Agnelli
Foundation, a philanthropy focused on education. He
is also a member of JP Morgan International Council
and of Allianz International Advisory Board. Born in
1976, Italian citizenship.
BENEDETTO VIGNA
(CHIEF EXECUTIVE OFFICER
AND EXECUTIVE DIRECTOR)
Mr. Benedetto Vigna is Chief Executive Officer since
September 2021. Before joining Ferrari, he was
President of STMicroelectronics’, Analog, MEMS and
Sensors Group, since January 2016 and also a mem-
ber of ST’s Executive Committee from May 31, 2018.
Vigna joined ST in 1995 and founded ST’s MEMS ac-
tivities (Micro-Electro-Mechanical Systems). Under
his guidance, ST’s MEMS sensors established ST’s
leadership with large OEMs in motion-activated user
interfaces. His responsibilities were expanded to in-
clude connectivity, imaging and power solutions and
he piloted a series of successful moves into new busi-
ness areas, with a particular focus on the industrial
and automotive market segments. During his career
Vigna has filed more than 200 patents on microma-
chining, authored numerous publications and has sat
on the boards of several EU-funded programs includ-
ing startups as well as worldwide recognized boards
of Asian and American research centers. Benedetto
Vigna graduated in Subnuclear Physics from the
University of Pisa. Born in 1969, Italian citizenship
PIERO FERRARI
(VICE CHAIRMAN AND NON-EXECUTIVE DIRECTOR)
Mr. Piero Ferrari has been Vice Chairman of Ferrari
S.p.A. since 1988. He also serves as Chairman of
HPE-COXA, is board member and Vice President of
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
119
BOARD REPORT
Ferretti Group. He was President of Piaggio Aero
Industries S.p.A. from 1998 to 2014 and served as
Chairman of the Italian Motor Sport Commission
(CSAI) from 1998 to 2001 and BA SERVICE from
2000 to 2015. He was also a board member and Vice
President of Banca Popolare dell’Emilia Romagna in
Modena from 2002 to 2011 and from 2011 to 2014
respectively. The son of Ferrari’s founder Enzo
Ferrari, Mr. Piero Ferrari covered a variety of man-
agement positions in the motor sport division of
Ferrari from 1970 to 1988 with increasing respon-
sibilities. His first position with Ferrari dates back
to 1965 working on the production of the Dino 206
Competizione racing car. Mr. Piero Ferrari received
an honorary degree in Aerospace Engineering from
the University of Naples Federico II in 2004 and an
Honorary Degree in Mechanical Engineering from
the University of Modena and Reggio Emilia in 2005.
In 2004, Mr. Piero Ferrari was awarded the title of
Cavaliere del Lavoro. Born in 1945, Italian citizenship.
SERGIO DUCA
(CHAIRMAN OF THE BOARD OF DIRECTORS
AND SENIOR NON-EXECUTIVE DIRECTOR)
Mr. Sergio Duca is a member of the Statutory
Auditors of Ferrovie dello Stato Italiane S.p.A. since
2022, He also serves as Chairman of the board of au-
ditors of ISPI (Institute for the Study of International
Politics), as well as a member of the board of audi-
tors of the Intesa San Paolo Foundation Onlus. Mr.
Duca has previously served as director of Tofaş Türk
Otomobil Fabrikasi Anonim Şirketi from 2018 until
April 2024, independent director of OISA Automation
System S.p.A. from November 2020 until October
2024, member of the board of Nedcommunity asso-
ciation from May 2019 until May 2022, member of the
Statutory Auditors of BasicNet S.p.A. from 2017 un-
til March 2022, Chairman of the Board of Statutory
Auditors of Enel S.p.A. from April 2010 until May 2019,
Chairman of the Board of Directors of Orizzonte
SGR S.p.A. from 2008 until 2016, Chairman of the
Board of Statutory Auditors of Exor S.p.A. until May
2015, Chairman of the Board of Statutory Auditors
and effective auditor of GTech until April 2015,
member of the Board of ASTM S.p.A. and Chairman
of the Audit Committee of ASTM S.p.A. from 2010
until 2013, Chairman of the Board of Statutory
Auditors of Tosetti Value SIM and an independent di-
rector of Sella Gestione SGR until April 2010. From
1997 until July 2007, Mr. Duca was the Chairman of
PricewaterhouseCoopers S.p.A. In addition, he has
previously served as Chairman of the board of au-
ditors of the Fondazione per la Scuola of Compagnia
di San Paolo until February 2022, Chairman of the
board of auditors of the Silvio Tronchetti Provera
Foundation, Chairman of the board of auditors of
Compagnia di San Paolo until May 2016, member
of the Edison Foundation’s advisory board and the
University Bocconi in Milan’s development commit-
tee, as well as Chairman of the Bocconi’s Alumni
Association’s board of auditors and a member of the
board of auditors of the ANDAF (Italian Association of
Chief Financial Officers). As a certified chartered ac-
countant and auditor, he acquired broad experience
through the PricewaterhouseCoopers network as
the external auditor of a number of significant Italian
listed companies. Mr. Duca graduated with honors in
Economics and Business from University Bocconi in
Milan. Born in 1947, Italian citizenship.
DELPHINE ARNAULT
(NON-EXECUTIVE DIRECTOR)
Mrs. Delphine Arnault graduated from the EDHEC
Business School and the London School of Economics.
She began her career at McKinsey & Company, the
global management consultancy firm, where she was
a Consultant for two years. In 2001, she joined the
Executive Committee of Christian Dior Couture where
she directed several product lines. She was appoint-
ed Deputy General Manager of Christian Dior Couture
in 2008 and in September 2013 Deputy General
Manager of Louis Vuitton Malletier. She has been a
board director of LVMH Moët Hennessy Louis Vuitton
SE since 2003. Delphine was appointed to the board
of Château Cheval Blanc, the Saint-Emilion premier
grand cru classé in 2008. In 2002 she joined the board
of Loewe, the celebrated Spanish leather goods com-
pany, and was appointed to Pucci’s board of directors
in 2007. She was appointed to the boards of Céline in
December 2011 and Christian Dior SE in April 2012.
Delphine Arnault previously served as a director of
both Havas and 21st Century Fox from 2013 to 2019. In
2021, she has been appointed to the Board of Gagosian
and Phoebe Philo Limited. Since February 2023, Mrs.
Delphine Arnault is the President and CEO of Christian
Dior Couture. Born in 1975, French citizenship.
FRANCESCA BELLETTINI
(NON-EXECUTIVE DIRECTOR
Since July 2023, Francesca Bellettini is Kering Deputy
Chief Executive Officer and since September 2013 she
is President and Chief Executive Officer of Yves Saint
Laurent (part of the Kering Group), based in France. Ms.
Bellettini is a member of the Kering Group Executive
Committee since 2013. Ms. Bellettini joined the Kering
Group in 2003, occupying different executive roles.
From 2003 until 2008 she worked in Gucci, Italy, first
as Assistant to the President and Managing Director
and, from 2005, as Strategic Planning Director and
Associate Worldwide Merchandising Director. In
2008, she joined Bottega Veneta, Italy, as Worldwide
Merchandising Director and from 2010 she became
Worldwide Merchandising-Communication Director
based in Switzerland. From 1999 until 2002, Ms.
Bellettini worked in the Prada Group, Italy, first in the
Planning and New Business Development Division of
Prada and, in 2002, as Operations Manager of Helmut
Lang. Previously, she worked in Compass Partners
International, UK from 1998 to 1999, in Deutsche
Morgan Grenfell, UK from 1996 to 1998 and in Goldman
Sachs International, UK from 1994 to 1996. While grad-
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
uating, she had an internship in Citibank, Italy in 1994.
Ms. Bellettini graduated in Business Administration
with a focus on Finance from Bocconi University, Italy.
Born in 1970, Italian citizenship.
EDDY CUE
(NON-EXECUTIVE DIRECTOR)
Mr. Eddy Cue is Apple’s senior vice president of
Services, reporting to CEO Tim Cook. Mr. Cue over-
sees the full range of Apple’s services, including Apple
Music, Apple News, Apple Podcasts, the Apple TV app,
and Apple TV+, as well as Apple Pay, Apple Card, Maps,
Search Ads, Apple’s iCloud services, and Apple’s pro-
ductivity and creativity apps. Mr. Cue’s team has an
excellent track record of building and strengthening
world-class services that meet and exceed the high
expectations of Apple’s customers, and offer cre-
ators and storytellers the opportunity to bring their
creative visions to people around the world. Mr. Cue
joined Apple in 1989 and leads a large organization of
amazing people. Mr. Cue was instrumental in creat-
ing the Apple online store in 1998, the iTunes Store in
2003, and the App Store in 2008. He also played a key
role in developing Apple’s award-winning iLife suite
of applications. In his early years at Apple, he was a
successful manager of software engineering and
customer support teams. Mr. Cue earned a bache-
lor’s degree in Computer Science and Economics
from Duke University. He serves on the Board of
Trustees of both the Paley Center for Media and Duke
University. Born in 1964, American citizenship.
JOHN GALANTIC
(NON-EXECUTIVE DIRECTOR)
John Galantic is the Chief Executive Officer of the
Tod’s Group. He earned a BA from Tufts University
and an MBA from Harvard Business School. After
starting his career at Procter & Gamble in Italy, he
held general management roles in Italy, the UK, and
the USA at Glaxo SmithKline in Marketing and at Coty
as President of Coty Americas, before joining Chanel
in 2006. He was the Chief Operating Officer of Chanel
Inc. until 2023 and joined the Board of Directors of
Chanel Ltd. in 2018. He is also a member of the Board
of Directors of Bacardi Ltd.. In 2023, he became an
Operating Partner at Advent International and was
appointed CEO of Tod’s S.p.A. in September 2024.
Born in 1961, American and Swiss citizenship.
MARIA PATRIZIA GRIECO
(NON-EXECUTIVE DIRECTOR)
Maria Patrizia Grieco has been the Chairperson of
the Board of Directors of Anima Holding since March
2023. She has been also Chairperson of Assonime
(the association of the Italian joint stock companies)
since June 2021. From May 2020 to March 2023, she
was the Chairperson of from the board of directors
of Banca Monte dei Paschi di Siena and from May 2014
to May 2020 she was the Chairperson of the board of
directors of Enel, the Italian company world leader in
the utilities sector. After graduating in law from the
University of Milan, she started her career in 1977 at
Italtel, where in 1994 she became chief of the Legal
and General Affairs directorate. In 1999, she was
appointed General Manager with the task of reorga-
nizing and repositioning the company, and in 2002
she became Chief Executive Officer. Subsequently,
she held the positions of Chief Executive Officer of
Siemens Informatica, Partner of Value Partners and
Chief Executive Officer of the Group Value Team
(today NTT Data). From 2008 to 2013 she was Chief
Executive Officer of Olivetti, where she also held the
role of Chairperson from 2011. She has been a mem-
ber of the Board of Directors of Fiat Industrial, CIR
and Endesa S.A. and currently serves on the Board
of Ferrari and Amplifon. Mrs. Grieco is also a mem-
ber of the Board of Directors of Bocconi University.
Maria Patrizia Grieco was Chairperson of the Italian
Corporate Governance Committee from 2017 to 2021.
During her mandate, the new Corporate Governance
Code for Italian listed companies was issued. In the
framework of the G20 Italy, she was Chair of the
“Integrity & Compliance” Task Force of the B20 Italy,
which provided pragmatic solutions that embraced
the renewed concepts of integrity and compliance, to
create a better future through inclusion and positive
impact. She was also a member of the G20 Business
Advisory Board for the Italian Presidency, led by The
European House - Ambrosetti. The board supported
the Italian Prime Minister in providing contributions to
the G20 agenda. Born in 1952, Italian citizenship.
ADAM KESWICK
(NON-EXECUTIVE DIRECTOR)
Mr. Adam Keswick joined the Jardine Matheson Board
in 2007 and was Deputy Managing Director of Jardine
Matheson from 2012 to 2016. He was appointed
chairman of Matheson & Co. in August 2016. He has
held a number of executive positions since joining
the Jardine Matheson Group from N M Rothschild &
Sons in 2001, including group strategy director and,
thereafter, group managing director of Jardine Cycle
& Carriage between 2003 and 2007. Mr Keswick is a
director of Hongkong Land and Mandarin Oriental.
He is also a director of Ferrari N.V. and of Yabuli
China Entrepreneurs Forum. He was a director of
DFI Retail Group until July 2024, director of Schindler
until March 2024 and vice chairman of the supervi-
sory board of Rothschild & Co until November 2023.
Mr. Keswick attended Eton College and Edinburgh
University where he received his Master of Arts de-
gree in 1995. Born in 1973, British citizenship.
MIKE VOLPI
(NON-EXECUTIVE DIRECTOR)
Mr. Mike Volpi is a General Partner at Index Ventures.
Mike joined Index in 2009 to establish the firm’s North
American activities. Mike invests primarily in enter-
prise software and artificial intelligence. He is cur-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
121
BOARD REPORT
rently serving on the boards of Aurora, Confluent,
Clickhouse, Scale, Sonos, and Wealthfront, among
others. Mike was previously a director of Ericsson
and Fiat Chrysler Automotive. Prior to Index, Mike was
Chief Strategy Officer and SVP/GM of Cisco’s rout-
ing business, where he managed a P&L in excess of
$10 billion in revenues. His team was responsible for
the acquisition of over 70 companies, some of which
were multi-billion deals. Mike has a B.S. in Mechanical
Engineering and an M.S. in Manufacturing Systems
Engineering from Stanford, and an M.B.A. from the
Stanford Graduate School of Business. He currently
serves on the Global Advisory Board of Stanford’s
Knight Hennessy Scholars program. Born in 1966,
American citizenship.
As of December 31, 2024, the members of the Board of Directors had,
among other skills, the skills shown in the table below:
Skill Area
Corporate
Governance
and Risk
management
Financial
and
accounting
Corporate
management
Digital and
cybersecurity
Innovation
ESG
Automotive
and
motorsport
industry
knowledge
Luxury
goods
industry
knowledge
John Elkann
(Executive Chair-
man and Executi-
ve Director)
Benedetto Vigna
(Chief Executive
Officer)
Piero Ferrari
(Vice Chairman
and non-Executi-
ve Director)
Sergio Duca
(Senior Non-Exe-
cutive Director)
Delphine Arnault
(Non-Executive
Director)
Francesca
Bellettini
(Non-Executive
Director)
Eddy Cue
(Non-Executive
Director)
John Galantic
(Non-Executive
Director)
Maria Patrizia
Grieco
(Non-Executive
Director)
Adam Keswick
(Non-Executive
Director)
Mike Volpi
(Non-Executive
Director)
All Board Members have knowledge and expertise on business ethics,
corporate governance and regulatory affairs. Moreover, more than half
of Board Members have developed experiences in social engagements
and environmental issues. With these skills they oversee sustainability
matters and manage impacts, risks and opportunities.
122
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
As of December 31, 2024, the Board of Directors and its committee were
composed of eleven Directors as shown in the table below:
Directors
Nationality
Executive
Non
Executive
Independent
Committees
Directors
first
term (1)
Directors
current
term
from
Roles in
other
companies
(4)
NYSE
Rules
Dutch
Code
Audit
Compensation ESG
John Elkann
(Executive
Chairman and
Executive Di-
rector)
IT
April 15,
2016 (2)
April 17,
2024
3
Benedetto
Vigna
(Chief Executi-
ve Officer)
IT
Septem-
ber 16,
2021 (3)
April 17,
2024
0
Piero Ferrari
(Vice Chairman)
IT
January 2,
2016
April 17,
2024
0
Sergio Duca
(Chair of the Bo-
ard and Senior
Non-Executive)
IT
January 2,
2016
April 17,
2024
0
Delphine
Arnault
FR
April 15,
2016
April 17,
2024
2
Francesca
Bellettini
IT
April 16,
2020
April 17,
2024
0
Eddy Cue
US
January 2,
2016
April 17,
2024
0
John Galantic
US, CH
April 16,
2020
April 17,
2024
0
Maria Patrizia
Grieco
IT
April 15,
2016
April 17,
2024
2
Adam
Keswick
UK
April 15,
2016
April 17,
2024
1
Mike Volpi
US
April 14,
2023
April 17,
2024
3
(1)
References in this table to Directors refer to Ferrari N.V.
The Board of Directors is appointed annually on each annual
general meeting of shareholders
(2)
Mr. John Elkann is Executive Director from April 12, 2019.
(3)
Mr. Benedetto Vigna was confirmed as Chief Executive
Officer by the Board of Directors as of April 14, 2023.
(4)
Directorships in listed companies other than in the
Company.
None of the members of the Board of Directors and FLT have held a
similar position in the public administration (including regulators) in the
past two years.
BOARD REGULATIONS
The current regulations of the Board of Directors
deal with matters that concern the Board of
Directors and its committees internally.
The regulations contain provisions concern-
ing the manner in which meetings of the Board of
Directors are called and held, including the deci-
sion-making process. The regulations provide that
meetings may be held by telephone conference or
video-conference, provided that all participating
Directors can follow the proceedings and participate
in real time discussion of the items on the agenda.
The Board of Directors can only adopt valid resolu-
tions when the majority of the Directors in office shall
be present at the meeting or be represented thereat.
A Director may only be represented by another
Director authorized in writing. A Director may not
act as a proxy for more than one other Director.
All resolutions shall be adopted by the favorable
vote of the majority of the Directors present or rep-
resented at the meeting, provided that the regula-
tions may contain specific provisions in this respect.
Each Director shall have one vote.
The Board of Directors shall be authorized to
adopt resolutions without convening a meeting if
all Directors shall have expressed their opinions in
writing, unless one or more Directors shall object in
writing against the resolution being adopted in this
way prior to the adoption of the resolution.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
123
BOARD REPORT
MEMORANDUM AND ARTICLES
OF ASSOCIATION
A copy of the Articles of Association of our pre-
decessor company has been filed as Exhibit 3.1 to
Ferrari N.V.’s Registration Statement on Form F-1
filed on July 23, 2015.
Our Articles of Association are identical in all
material respects to those of our predecessor
company. A copy of our Articles of Association may
be obtained from the Dutch Trade Register of the
Chamber of Commerce.
The following is a summary of material infor-
mation relating to the Ferrari common shares,
including summaries of certain provisions of the
Ferrari’s articles of association (the “Ferrari Articles
of Association”), the terms and conditions in respect
of the Ferrari special voting shares (the “Terms and
Conditions”) and the applicable Dutch law provisions
in effect at the date of this annual report. The sum-
maries of the Ferrari Articles of Association and
the Terms and Conditions as set forth in this annual
report are qualified in their entirety by reference to
the full text of the Ferrari Articles of Association, and
Terms and Conditions.
THE FERRARI SHARES, ARTICLES OF
ASSOCIATION AND TERMS AND CONDITIONS OF
THE SPECIAL VOTING SHARES
Ferrari was incorporated as a public limited lia-
bility company (naamloze vennootschap) under
the laws of the Netherlands on September 4, 2015
under the name FE New N.V., in contemplation of
the Merger, and was renamed Ferrari N.V. effec-
tive as of January 3, 2016, upon effectiveness of
the Merger. Its official seat (statutaire zetel) is in
Amsterdam, the Netherlands, and its corporate
address and principal place of business is locat-
ed at Via Abetone Inferiore n. 4, I-41053 Maranello
(MO), Italy. Ferrari is registered with the Dutch
Trade Register of the Chamber of Commerce un-
der number 64060977. Its telephone number is
+39-0536-949111. The Company’s object, set forth
in Article 3.1 of the Articles of Association, is to car-
ry on, either directly or through wholly or partial-
ly-owned companies and entities, activities relating
in whole or in any part to passenger and commer-
cial vehicles, transport, mechanical engineering,
energy, engines, capital machinery and equipment
and related goods and propulsion, as well as any
other manufacturing, commercial, financial or ser-
vice activity.
Since incorporation Ferrari has had, and it
intends to continue to have, its place of effective
management in Italy. It will therefore be a tax res-
ident of Italy under both Italian tax law and Article
4 of the Convention between the Kingdom of the
Netherlands and the Republic of Italy for the avoid-
ance of a double taxation with respect to taxes on
income and on capital of 1980.
SHARE CAPITAL
The authorized share capital of Ferrari is seven
million five hundred thousand Euro (€7,500,000),
divided into three hundred seventy five million
(375,000,000) Ferrari common shares, nominal val-
ue of one Euro cent (€0.01) per share and an equal
number of special voting shares, nominal value of
one Euro cent (€0.01) per share.
Following the Capital Markets Day held in 2022,
on July 1, of the same year, Ferrari announced a
new multi-year share buyback program of approx-
imately Euro 2 billion to be executed by 2026 and
replacing the previous share buyback program.
The first tranche of the new repurchase program,
of up to Euro 150 million, was launched on July 1,
2022 and completed on November 30, 2022. The
second tranche of the new repurchase program, of
up to Euro 200 million, was launched on December
2, 2022 and completed on June 26, 2023. The third
tranche of the new repurchase program, of up to
Euro 200 million, was launched on July 3, 2023 and
completed on October 19, 2023. The fourth tranche
of the new repurchase program, of up to Euro 350
million, was launched on November 8, 2023 and was
completed on June 26, 2024. The fifth tranche of the
new repurchase program, of up to Euro 250 million,
was launched on July 1, 2024 and was completed on
November 26, 2024. The sixth tranche of the new
repurchase program, of up to Euro 150 million, was
launched on December 6, 2024 and is expected to be
completed within February 20, 2025.
As of December 31, 2024, Ferrari’s common
shares held in treasury amounted to 14,879,168. As
of the same date, the Company held in treasury 5.79
percent of its total issued share capital including the
common shares and the special voting shares. For
additional information on the abovementioned share
repurchase program, refer to “Other Information—
Additional Information—Purchases of Equity Securities
by the Issuer and Affiliated Purchasers”.
A delegation of authority to the Board of Directors
to authorize the issuance of common shares with-
out pre-emptive rights enabled Ferrari to offer and
sell newly issued common shares to investors free
of pre-emptive rights for a period of five years from
January 2, 2016 up to and including January 1, 2021.
Under Dutch law, such authorization may not exceed
a period of five years, but may be renewed by a res-
olution of the general meeting of shareholders for
subsequent five-year periods at any time. Pursuant
to the resolution of the Annual General Meeting held
on April 16, 2020, the authorization was renewed for
the period starting from January 2, 2021 up to and
including October 15, 2021. Pursuant to the resolu-
tion of the Annual General Meeting held on April 15,
2021, the authorization has been further renewed
for the period starting from April 15, 2021 up to and
including October 14, 2022. Pursuant to the resolu-
tion of the Annual General Meeting held on April 13,
2022, the authorization has been further renewed
for the period starting from April 13, 2022 up to and
124
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
including October 12, 2023. Pursuant to the resolu-
tion of the Annual General Meeting held on April 14,
2023, the authorization has been further renewed
for the period starting from April 14, 2023 up to and
including October 13, 2024. Pursuant to the resolu-
tion of the Annual General Meeting held on April 17,
2024, the authorization has been further renewed
for the period starting from April 17, 2024 up to and
including October 16, 2025.
Ferrari common shares are registered shares
represented by an entry in the share register of
Ferrari. The Board of Directors may determine that,
for the purpose of trading and transfer of shares on
a foreign stock exchange, such share certificates
shall be issued in such form as shall comply with
the requirements of such foreign stock exchange.
A register of shareholders is maintained by Ferrari
in the Netherlands and a branch register is main-
tained in the United States on Ferrari’s behalf by the
Transfer Agent, which serves as branch registrar
and transfer agent.
Beneficial interests in Ferrari common shares
that are traded on the NYSE are held through the
book-entry system provided by The Depository Trust
Company (“DTC”) and are registered in Ferrari’s reg-
ister of shareholders in the name of Cede & Co., as
DTC’s nominee. Beneficial interests in the Ferrari com-
mon shares traded on the Euronext Milan are held
through Monte Titoli S.p.A., the Italian central clearing
and settlement system, as a participant in DTC.
DIRECTORS
Set forth below is a summary description of
the material provisions of the Ferrari Articles of
Association, relating to our Directors. The summary
does not restate the Ferrari Articles of Association
in their entirety.
Ferrari’s Directors serve on the Board of
Directors for a term of approximately one year, such
term ending on the day that the first annual general
meeting of the shareholders is held in the follow-
ing calendar year. Ferrari’s shareholders appoint
the Directors of the Board of Directors at a gen-
eral meeting. Each Director may be reappointed at
any subsequent general meeting of shareholders.
The general meeting of shareholders determines
whether a Director is an executive Director or a
non-executive Director.
The Board of Directors is a one tier board and
consists of three or more members, comprising
both members having responsibility for the day-to-
day management of Ferrari (executive Directors)
and members not having such day-to-day respon-
sibility (non-executive Directors). The tasks of the
executive and non-executive Directors in a one-tier
board such as Ferrari’s Board of Directors may be
allocated under or pursuant to the Ferrari Articles of
Association, provided that the general meeting has
stipulated whether each such Director is appointed
as executive or as non-executive Director and fur-
thermore provided that the task to supervise the
performance by the Directors of their duties can
only be performed by the non-executive Directors.
In addition, an executive Director may not be
appointed chairman of the board or delegated the
task of establishing the remuneration of executive
Directors or nominating Directors for appointment.
Tasks that are not allocated fall within the power of
the Board of Directors as a whole. Regardless of an
allocation of tasks, all Directors remain collectively
responsible for the proper management and strat-
egy of Ferrari (including supervision thereof in case
of non-executive Directors). The Board of Directors
may determine that one or more Directors can law-
fully adopt board resolutions concerning matters
belonging to his or their duties.
Ferrari has a policy in respect of the remunera-
tion of the members of the Board of Directors. With
due observation of the remuneration policy, the
Board of Directors may determine the remunera-
tion for the Directors in respect of the performance
of their duties. The Board of Directors must sub-
mit to the Annual General Meeting of Shareholders
for its approval plans to award shares or the right
to subscribe for shares. The policy was amended
as approved by the Annual General Meeting of
Shareholders held on April 16, 2020 to implement
changes necessary pursuant to the implementa-
tion of the EU Directive 2017/828 into Dutch law.
The amended remuneration policy, as adopted by
the 2020 Annual General Meeting of Shareholders,
builds upon the previous remuneration policy (as
partially amended and as approved by the Annual
General Meeting of Shareholders held on April 14,
2017) and no material changes were made com-
pared to the previous remuneration policy. In addi-
tion the amended policy provided for the Board
of Directors to issue stock ownership guidelines
applicable to Directors and employees. Pursuant to
the resolution of the Annual General Meeting held
on April 17, 2024, the remuneration policy of the
Board of Directors has been amended to comply
with Dutch legislation, which requires remunera-
tion policies to be submitted for approval every four
years. This updated remuneration policy builds upon
the previous one, with no material changes to the
Director’s remuneration.
Ferrari shall not grant the Directors any personal
loans or guarantees.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
125
BOARD REPORT
SHARE OWNERSHIP
The number of shares directly and indirectly owned by members of the
Board of Directors on February 6, 2025 is set forth in the table below.
Name
Common Shares
% of Common Shares
Outstanding
Special Voting Shares
% of Special Voting
Shares Outstanding
Piero Ferrari
18,894,295
10.56
18,892,160
15.60
John Elkann
31,105
(*)
—
—
Benedetto Vigna
11,260
(*)
—
—
Delphine Arnault
2,803
(*)
—
—
Eddy Cue
2,692
(*)
—
—
John Galantic
100
(*)
—
—
Adam Keswick
2,643
(*)
—
—
(*) Common shares held represent less than 1 percent of our common shares outstanding as of February 6, 2025.
No members of the Ferrari Leadership Team beneficially own 1 percent
or more of the Company’s common shares or special voting shares.
THE AUDIT COMMITTEE
The Audit Committee is responsible, inter alia, for
assisting and advising the Board of Directors, and
acting under authority delegated by the Board of
Directors, with respect to: (i) the integrity of the
Company’s financial statements, (ii) the Company’s
policy on tax planning, (iii) the Company’s financing,
(iv) the Company’s application of information and
communication technology, (v) the systems of in-
ternal controls that management and the Board of
Directors have established, (vi) the Company’s com-
pliance with legal and regulatory requirements, (vii)
the Company’s compliance with recommendations
and observations of internal auditors and indepen-
dent registered public accounting firm, (viii) the
Company’s policies and procedures for addressing
certain actual or perceived conflicts of interest, (ix)
the review and approval of related party transac-
tions, (x) the independent registered public account-
ing firm’s qualifications, independence, remunera-
tion and any non-audit services for the Company, (xi)
the functioning of the Company’s internal auditors
and of the independent registered public account-
ing firm, (xii) risk management guidelines and poli-
cies, and (xiii) the implementation and effectiveness
of the Company’s ethics and compliance program.
Additionally, the Audit Committee invites the Head
of Enterprise Cybersecurity and the Chief Digital
Transformation Officer (CDTO) to report on cyber-
security at a committee meeting at least once a year.
The Audit Committee currently consists of Mr.
Duca (Chairperson), Ms. Bellettini and Mrs. Grieco,
each of whom is independent within the meaning of
the Dutch Corporate Governance Code. Our Board
of Directors has determined that Mr. Sergio Duca is
the “audit committee financial expert”. The gender
diversity within the Audit Committee is 66.7%.
The Audit Committee is elected by the Board of
Directors and is comprised of at least three non-ex-
ecutive Directors. Audit Committee members are
also required (i) not to have any material relationship
with the Company or to serve as auditors or accoun-
tants for the Company, (ii) to be “independent”, for
purposes of NYSE rules, Rule 10A-3 of the Exchange
Act and the Dutch Corporate Governance Code, and
(iii) to be “financially literate” and have “accounting
or selected financial management expertise” (as
determined by the Board of Directors). At least one
member of the Audit Committee shall be a “finan-
cial expert” as defined by the Sarbanes-Oxley Act
and the rules of the U.S. Securities and Exchange
Commission and Section 2(3) of the Dutch Decree on
the Establishment of an audit committee. No Audit
Committee member may serve on more than four
audit committees for other public companies, ab-
sent a waiver from the Board of Directors, which
must be disclosed in the Company’s annual report.
Unless decided otherwise by the Audit Committee,
the independent registered public accounting firm
of the Company, the Chief Financial Officer, the Chief
Internal Audit, Risk and Compliance Officer, and the
Head of Internal Audit are required to attend its
meetings, while the Chief Executive Officer is free,
but not required, to attend the meetings of the Audit
Committee, unless the Audit Committee determines
otherwise, and shall attend the meetings of the Audit
Committee if the Audit Committee so requires. The
Audit Committee shall meet with the independent
auditor at least once per year outside the pres-
ence of the executive Directors and management.
Furthermore, an independent third party shall make
an assessment of the performance of the Audit
Committee at least every five years.
In 2024, the Audit Committee met 6 times and
the average attendance rate was 94.45 percent. At
126
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
these meetings several matters were discussed,
including the audit committee role and responsibili-
ties, the Company’s financial control and risk frame-
work, risk assessment, internal control over finan-
cial reporting pursuant to the applicable rules, and a
financial overview of operating results. In particular,
the Audit Committee reviewed the Ferrari’s periodic
and yearly financial results and, with the assistance
of the Chief Financial Officer and other Company
officers, focused on key accounting and reporting
matters as well as the main business drivers.
THE COMPENSATION COMMITTEE
The Compensation Committee is responsible for,
among other things, assisting and advising the Board
of Directors, and acting under authority delegated
by the Board of Directors, with respect to: (i) deter-
mining executive compensation consistent with the
Company’s remuneration policy, (ii) reviewing and
approving the remuneration structure for the ex-
ecutive Directors, (iii) administering equity incentive
plans and deferred compensation benefit plans, (iv)
discussing with management the Company’s poli-
cies and practices related to compensation and is-
suing recommendations thereon, and (v) preparing
the compensation report.
The Compensation Committee currently consists
of Mr. Galantic (Chairperson), Mr. Cue and Mr. Ferrari.
The Compensation Committee is elected by the Board
of Directors and is comprised of at least three non-ex-
ecutive Directors, at most one of whom may not be
independent under Dutch Corporate Governance
Code. At the date of this Annual Report, every mem-
ber of the Compensation Committee is a non-exec-
utive Director and the majority of them are indepen-
dent. The gender diversity within the Compensation
Committee is 0.0%. Unless decided otherwise by
the Compensation Committee, the Head of Human
Resources of the Company attends its meetings.
In 2024, the Compensation Committee met once
with 100 percent attendance of its members at such
meeting. The Compensation Committee reviewed
the compensation report. Further information on
the activities of the Compensation Committee are
included in the compensation report.
THE ESG COMMITTEE
As stated in the Charter of the ESG Committee, the
ESG Committee is responsible for, among other
things, assisting and advising the Board of Directors,
and acting under authority delegated by the Board of
Directors, with respect to: (i) drawing up the selection
criteria and appointment procedures for members
of the Board of Directors; (ii) periodic assessment of
the size and composition of the Board of Directors
and as appropriate making proposals for a compo-
sition profile of the Board of Directors; (iii) periodic
assessment of the performance of individual direc-
tors and reporting this to the Board of Directors;
(iv) proposals to the non-executive members of the
Board of Directors for the nomination and re-nom-
ination of directors to be elected by the sharehold-
ers; (v) supervision of the policy on the selection and
appointment criteria for senior management and
on succession planning; and (vi) monitoring, evalua-
tion and reporting on the strategy, targets, achieve-
ments, disclosures and reports relating to ESG mat-
ters globally of the Company and its subsidiaries.
The ESG Committee consists of Mr. Elkann
(Chairperson), Mrs. Arnault and Mr. Cue. The ESG
Committee is elected by the Board of Directors and
is comprised of at least three Directors. At least
more than half of the members shall be independent
under the Dutch Corporate Governance Code, and
at most one of the members may be an executive
Director. At the date of this Annual Report, Mr. Elkann
is the only executive member of the ESG Committee
and the majority of ESG Committee members are
independent. The gender diversity within the ESG
Committee is 33.3%.
In 2024, the ESG Committee met once with 100
percent attendance of its members at such meeting.
The Committee reviewed the Board of Directors’
and Committee’s assessments, the Sustainability
achievement and objectives, and the recommenda-
tions for Directors’ election.
As described above, the charters of the Audit
Committee, Compensation Committee and ESG
Committee set forth independence requirements for
their members for purposes of the Dutch Corporate
Governance Code. Audit Committee members are
also required to qualify as independent for purposes
of NYSE rules and Rule 10A-3 of the Exchange Act.
INDEMNIFICATION OF DIRECTORS
Under Dutch law, indemnification provisions may be
included in a company’s articles of association. Under
the Articles of Association, the Company is required
to indemnify any and all of its Directors, officers, for-
mer Directors, former officers and any person who
may have served at its request as a director or of-
ficer of another company in which it owns shares
or of which it is a creditor, who were or are made
a party or are threatened to be made a party to or
are involved in, any threatened, pending or complet-
ed action, suit or proceeding, whether civil, criminal,
administrative, arbitrative or investigative (each a
“Proceeding”), or any appeal in such a Proceeding or
any inquiry or investigation that could lead to such a
Proceeding, against any and all liabilities, damages,
reasonable and documented expenses (including
reasonably incurred and substantiated attorneys’
fees), financial effects of judgments, fines, penalties
(including excise and similar taxes and punitive dam-
ages) and amounts paid in settlement in connection
with such Proceeding by any of them. Such indem-
nification shall not be deemed exclusive of any oth-
er rights to which those indemnified may be entitled
otherwise. Notwithstanding the above, no indemni-
fication shall be made in respect of any claim, issue
or matter as to which any of the abovementioned in-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
127
BOARD REPORT
demnified persons shall be adjudged to be liable for
gross negligence or willful misconduct in the perfor-
mance of such person’s duty to Ferrari. Ferrari has
purchased directors’ and officers’ liability insurance
for the members of the Board of Directors and cer-
tain other officers, substantially in line with that pur-
chased by similarly situated companies.
CONFLICT OF INTEREST
A Director shall not participate in discussions and
decision making of the Board of Directors with re-
spect to a matter in relation to which he or she has a
direct or indirect personal interest that is in conflict
with the interests of the Company and the business
associated with the Company (“Conflict of Interest”),
which shall be determined outside the presence
of the Director concerned. All transactions, where
there is a Conflict of Interest, must be concluded on
terms that are customary in the branch concerned
and approved by the Board of Directors. In addition,
the Board of Directors as a whole may, on an ad hoc
basis, resolve that there is such a strong appear-
ance of a Conflict of Interest of an individual Director
in relation to a specific matter, that it is deemed in
the best interest of a proper decision making pro-
cess that such individual Director be excused from
participation in the decision making process with
respect to such matter even though such Director
may not have an actual Conflict of Interest. In 2024
there were no transactions in which there were con-
flicts of interest with management board members
or supervisory board members, other than ordinary
course compensation arrangements.
At least annually, each Director shall assess
in good faith whether (i) he or she is independent
under (A) best practice provision 2.1.8 of the Dutch
Corporate Governance Code, (B) the requirements
of Rule 10A-3 under the Exchange Act, and (C) Section
303A of the NYSE Listed Company Manual; and (ii) he
or she would have a Conflict of Interest in connec-
tion with any transactions between the Company
and a significant shareholder or related party of the
Company, including affiliates of a significant share-
holder (such conflict, a “Related-Party Conflict”), it
being understood that currently Exor N.V. (“Exor”)
would be considered a significant shareholder.
The Directors shall inform the Board of Directors
through the Senior Non-executive Director or the
Secretary of the Board of Directors as to all material
information regarding any circumstances or relation-
ships that may impact their characterization as “inde-
pendent”, or impact the assessment of their inter-
ests, including by responding promptly to the annual
D&O questionnaires circulated by or on behalf of the
Secretary that are designed to elicit relevant informa-
tion regarding business and other relationships.
Based on each Director’s assessment described
above, the Board of Directors shall make a determi-
nation at least annually regarding such Director’s
independence and such Director’s Related-Party
Conflict. These annual determinations shall be con-
clusive, absent a change in circumstances from
those disclosed to the Board of Directors, that
necessitates a change in such determination.
Mr. Elkann is Chief Executive Officer of Exor,
our and Stellantis’s largest shareholder, and an
executive director of Stellantis. Stellantis, Exor and
a number of companies in the Stellantis and Exor
groups are related parties to Ferrari. See “Risk
Factors—We may have potential conflicts of inter-
est with Stellantis and Exor and its related compa-
nies” and Note 28 “Related Party Transactions” to
our Consolidated Financial Statements. Finally, Mr.
Ferrari is non-executive Chairman in COXA S.p.A,
from which Ferrari purchases components for
Formula 1 racing cars, and HPE S.r.l., which pro-
vides consultancy engineering services to Ferrari,
see Note 28 “Related Party Transactions” to our
Consolidated Financial Statements.
LOYALTY VOTING PROGRAM
In connection with the separation from FCA (the
“Separation”), Ferrari issued special voting shares
with a nominal value of one Euro cent (€0.01) per
share, to FCA, Piero Ferrari and FCA sharehold-
ers holding FCA special voting shares prior to the
Separation including Exor, in addition to Ferrari
common shares.
As of February 6, 2025, Exor held approximately
36.69 percent of the voting power in the Company,
Trust Piero Ferrari, a Jersey trust established by
Piero Ferrari, held approximately 15.60 percent of
the voting power in Ferrari and public sharehold-
ers held approximately 47.71 percent of the voting
power in the Company. The percentages of voting
power above are calculated based on the number of
outstanding shares net of treasury shares. For more
information on the Separation, see “Overview—
History of the Company”.
Subject to meeting certain conditions, our com-
mon shares can be registered in our loyalty register
(the “Loyalty Register”) and all such common shares
may qualify as qualifying common shares (“Qualifying
Common Shares”). The holder of Qualifying Common
Shares is entitled to receive without consideration
one special voting share in respect of each such
Qualifying Common Share. Pursuant to the Terms
and Conditions, and for so long as the Ferrari com-
mon shares remain in the Loyalty Register, such
Ferrari common shares shall not be sold, disposed
of, transferred, except in very limited circumstances
(i.e., transfers to affiliates or to relatives through
succession, donation or other transfers (defined in
the Terms and Conditions as “Loyalty Transferee”),
but a shareholder may create or permit to exist any
pledge, lien, fixed or floating charge or other encum-
brance over such Ferrari common shares, provided
that the voting rights in respect of such Ferrari
common shares and any corresponding special
voting shares remain with such shareholder at all
times. Ferrari’s shareholders who want to directly
or indirectly sell, dispose of, trade or transfer such
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Ferrari common shares or otherwise grant any right
or interest therein, or create or permit to exist any
pledge, lien, fixed or floating charge or other encum-
brance over such Ferrari common shares with a
potential transfer of voting rights relating to such
encumbrances will need to submit a de-registration
request as referred to in the Terms and Conditions,
in order to transfer the relevant Ferrari common
shares to the regular trading system (the “Regular
Trading System”) except that a Ferrari shareholder
may transfer Ferrari common shares included in the
Loyalty Register to a Loyalty Transferee (as defined
in the Terms and Conditions) of such Ferrari share-
holder without transferring such shares from the
Loyalty Register to the Regular Trading System.
Ferrari’s shareholders who seek to qualify to
receive special voting shares can also request to
have their Ferrari common shares registered in
the Loyalty Register. Upon registration in the Loyalty
Register such shares will be eligible to be treated as
Qualifying Common Shares, provided they meet the
conditions more fully described under “—Terms and
Conditions of the Special Voting Shares” below.
Notwithstanding the fact that Article 13 of the
Ferrari Articles of Association permits the Board of
Directors of Ferrari to approve transfers of special
voting shares, the special voting shares cannot be
traded and are transferable only in very limited cir-
cumstances (i.e., to a Loyalty Transferee described
above, or to Ferrari for no consideration (om niet)).
Pursuant to Article 23 of the Ferrari Articles of
Association, Ferrari shall maintain a special capital
reserve to be credited against the share premium
exclusively for the purpose of facilitating any issu-
ance or cancellation of special voting shares. The
special voting shares shall be issued and paid up
against this special capital reserve.
The special voting shares have immaterial eco-
nomic entitlements. Such economic entitlements are
designed to comply with Dutch law but are immate-
rial for investors. The special voting shares carry the
same voting rights as Ferrari common shares.
Section 10 of the Terms and Conditions include
liquidated damages provisions intended to deter
any attempt by holders to circumvent the terms of
the special voting shares. Such liquidated damages
provisions may be enforced by Ferrari by means of
a legal action brought by Ferrari before competent
courts of Amsterdam, the Netherlands. In partic-
ular, a violation of the provisions of the Terms and
Conditions concerning the transfer of special voting
shares, Electing Common Shares (common shares
registered in the Loyalty Register for the purpose
of becoming Qualifying Common Shares in accor-
dance with the Ferrari Articles of Association) and
Qualifying Common Shares may lead to the impo-
sition of liquidated damages. Because we expect
the restrictions on transfers of the special voting
shares to be effective in practice we do not expect
the liquidated damages provisions to be used.
Pursuant to Section 12 of the Terms and Condi-
tions, any amendment to the Terms and Conditions
(other than merely technical, non-material amend-
ments and unless such amendment is required to
ensure compliance with applicable law or regula-
tions or the listing rules of any securities exchange
on which the Ferrari common shares are listed) may
only be made with the approval of the general meet-
ing of shareholders of Ferrari.
At any time, a holder of Qualifying Common
Shares or Electing Common Shares may request
the de-registration of such shares from the Loyalty
Register to enable free trading thereof in the
Regular Trading System. Upon the de-registration
from the Loyalty Register, such shares will cease to
be Electing Common Shares or Qualifying Common
Shares as the case may be and will be freely tradable
and voting rights attached to the corresponding
special voting shares will be suspended with imme-
diate effect and such special voting shares shall be
transferred to Ferrari for no consideration (om niet).
TERMS AND CONDITIONS OF THE SPECIAL
VOTING SHARES
The Terms and Conditios apply to the issuance, alloca-
tion, acquisition, holding, repurchase and transfer of
special voting shares in our share capital and to cer-
tain aspects of Electing Common Shares, Qualifying
Common Shares and Ferrari common shares, which
are or will be registered in the Loyalty Register.
Application for Special Voting Shares
A Ferrari shareholder may at any time elect to partic-
ipate in the loyalty voting program by requesting that
Ferrari register all or some of the number of Ferrari
common shares held by such Ferrari shareholder in
the Loyalty Register. Such election shall be effective
and registration in the Loyalty Register shall occur
as of the end of the calendar month during which
the election is made. If such Ferrari common shares
(i.e. Electing Common Shares) have been registered
in the Loyalty Register (and are thus blocked from
trading in the Regular Trading System) for an unin-
terrupted period of three years in the name of the
same shareholder, the holder of such Ferrari com-
mon shares will be entitled to receive one Ferrari
special voting share for each such Ferrari common
share that has been registered. If at any moment
in time such Ferrari common shares are de-regis-
tered from the Loyalty Register for whatever rea-
son, the relevant shareholder loses its entitlement
to hold a corresponding number of Ferrari special
voting shares.
Withdrawal of Special Voting Shares
As described above, a holder of Qualifying Common
Shares or Electing Common Shares may request
that some or all of its Qualifying Common Shares
or Electing Common Shares be de-registered from
the Loyalty Register and if held outside the Regular
Trading System, transfer such shares back to the
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
129
BOARD REPORT
Regular Trading System, which will allow such share-
holder to freely trade its Ferrari common shares,
as described below. From the moment of such re-
quest, the holder of Qualifying Common Shares
shall be considered to have waived his rights to cast
any votes associated with the Ferrari special vot-
ing shares which were issued and allocated in re-
spect of such Qualifying Common Shares. Any such
request would automatically trigger a mandatory
transfer requirement pursuant to which the Ferrari
special voting shares will be offered and transferred
to Ferrari for no consideration in accordance with
the Ferrari Articles of Association and the Terms and
Conditions. Ferrari may continue to hold the special
voting shares as treasury stock, but will not be en-
titled to vote any such treasury stock. Alternatively,
Ferrari may withdraw and cancel the special vot-
ing shares, as a result of which the nominal value of
such shares will be allocated to the special capital
reserves of Ferrari. Consequently, the loyalty voting
feature will terminate as to the relevant Qualifying
Common Shares being deregistered from the
Loyalty Register. No shareholder required to trans-
fer special voting shares pursuant to the Terms and
Conditions shall be entitled to any consideration for
such special voting shares and each shareholder ex-
pressly waives any rights in that respect as a condi-
tion to participation in the loyalty voting program.
Change of Control
A shareholder who is a holder of Qualifying Common
Shares or Electing Common Shares must promptly
notify the Agent and Ferrari upon the occurrence
of a “change of control” as defined in the Ferrari
Articles of Association, as described below. The
change of control will trigger the de-registration of
the relevant Electing Common Shares or Qualifying
Common Shares or the relevant Ferrari common
shares in the Loyalty Register. The voting rights at-
tached to the special voting shares issued and allo-
cated in respect of the relevant Qualified Common
Shares will be suspended upon a direct or indirect
change of control in respect of the relevant holder
of such Qualifying Common Shares that are regis-
tered in the Loyalty Register.
For the purposes of this section a “change of
control” shall mean, in respect of any Ferrari share-
holder that is not an individual (natuurlijk persoon),
any direct or indirect transfer in one or a series of
related transactions as a result of which (i) a major-
ity of the voting rights of such shareholder, (ii) the
de facto ability to direct the casting of a majority of
the votes exercisable at general meetings of share-
holders of such shareholder and/or (iii) the ability to
appoint or remove a majority of the Directors, exec-
utive Directors or board members or executive offi-
cers of such shareholder or to direct the casting of
a majority or more of the voting rights at meetings
of the board of Directors, governing body or execu-
tive committee of such shareholder has been trans-
ferred to a new owner, provided that no change of
control shall be deemed to have occurred if (a) the
transfer of ownership and/or control is an intra-
group transfer under the same parent company,
(b) the transfer of ownership and /or control is the
result of the succession or the liquidation of assets
between spouses or the inheritance, inter vivos dona-
tion or other transfer to a spouse or a relative up to
and including the fourth degree or (c) the fair market
value of the Qualifying Common Shares held by such
shareholder represents less than twenty percent
(20 percent) of the total assets of the Transferred
Group at the time of the transfer and the Qualifying
Common Shares held by such shareholder, in the
sole judgment of the Company, are not otherwise
material to the Transferred Group or the change of
control transaction. “Transferred Group” shall mean
the relevant shareholder together with its affiliates,
if any, over which control was transferred as part of
the same change of control transaction within the
meaning of the definition of change of control.
LIABILITY TO FURTHER CAPITAL CALLS
All of the outstanding Ferrari common shares and spe-
cial voting shares are fully paid and non-assessable.
ADDITIONAL ISSUANCES AND RIGHTS
OF PREFERENCE
ISSUANCE OF SHARES
The general meeting of shareholders of Ferrari (the
“General Meeting”) has the authority to resolve on
any issuance of shares, unless such authority has
been delegated to the Board of Directors of Ferrari.
In such a resolution, the General Meeting must de-
termine the price and other terms of issuance. The
Board of Directors of Ferrari may have the power to
issue shares if it has been authorized to do so by the
General Meeting, or pursuant to the Ferrari Articles
of Association. Under Dutch law, such authorization
may not exceed a period of five years, but may be re-
newed by a resolution of the General Meeting for sub-
sequent five-year periods at any time. The Board of
Directors has been designated by the Ferrari Articles
of Association as the competent body to issue Ferrari
common shares and special voting shares up to the
maximum aggregate amount of the Ferrari autho-
rized share capital for an initial period of five years
from January 2, 2016, which may be extended by the
General Meeting with additional consecutive periods
of up to a maximum of five years each. The authori-
zation was renewed on an annual basis by the Annual
General Meetings in 2020 and subsequent years.
Pursuant to the resolution of the Annual General
Meeting held on April 17, 2024, the authorization has
been further renewed for the period starting from
April 17, 2024 up to and including October 16, 2025.
Ferrari will not be required to obtain approval
from a General Meeting to issue shares pursuant
to the exercise of a right to subscribe for shares
that was previously granted pursuant to authority
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
granted by the shareholders or pursuant to del-
egated authority by the Board of Directors. The
General Meeting shall, for as long as any such des-
ignation of the Board of Directors of Ferrari for this
purpose is in force, no longer has authority to decide
on the issuance of shares.
RIGHTS OF PRE-EMPTION
Under Dutch law and the Ferrari Articles of
Association, each Ferrari shareholder has a right of
pre-emption in proportion to the aggregate nominal
value of its shareholding upon the issuance of new
Ferrari common shares (or the granting of rights to
subscribe for Ferrari common shares). Exceptions to
this right of pre-emption include the issuance of new
Ferrari common shares (or the granting of rights to
subscribe for common shares): (i) to employees of
Ferrari or another member of its group pursuant
to a stock compensation plan of Ferrari, (ii) against
payment in kind (contribution other than in cash) and
(iii) to persons exercising a previously granted right
to subscribe for Ferrari common shares.
In the event of an issuance of special voting shares,
shareholders shall not have any right of pre-emption.
The General Meeting may resolve to limit or
exclude the rights of pre-emption upon an issu-
ance of Ferrari common shares, which resolution
requires approval of at least two-thirds of the votes
cast, if less than half of the issued share capital is
represented at the General Meeting. The Ferrari
Articles of Association or the General Meeting may
also designate the Board of Directors to resolve to
limit or exclude the rights of pre-emption in relation
to the issuance of Ferrari common shares. Pursuant
to Dutch law, the designation by the General Meeting
may be granted to the Board of Directors for a spec-
ified period of time of not more than five years and
only if the Board of Directors has also been desig-
nated or is simultaneously designated the authority to
resolve to issue Ferrari common shares. The Board
of Directors is designated in the Ferrari Articles of
Association as the competent body to exclude or limit
rights of pre-emption for an initial period of five years
from January 2, 2016, which may be extended by the
General Meeting with additional periods up to a maxi-
mum of five years per period. Pursuant to the resolu-
tions of the Annual General Meeting held on April 16,
2020, the Board of Directors was authorized to issue
Ferrari common shares and to limit or exclude the
rights of pre-emption in relation to the issuance of
Ferrari common shares for the period starting from
January 2, 2021 up to and including October 15, 2021.
The authorization was renewed on an annual basis
by the Annual General Meetings in 2020 and subse-
quent years. Pursuant to the resolution of the Annual
General Meeting held on April 17, 2024, the Board
of Directors has been authorized to issue Ferrari
common shares and to limit or exclude the rights
of pre-emption in relation to the issuance of Ferrari
common shares for the period starting from April 17,
2024 up to and including October 16, 2025.
REPURCHASE OF SHARES
Upon agreement with the relevant Ferrari share-
holder, Ferrari may acquire its own shares at any
time for no consideration (om niet), or subject to cer-
tain provisions of Dutch law and the Ferrari Articles
of Association for consideration, if: (i) Ferrari’s
shareholders’ equity less the payment required to
make the acquisition does not fall below the sum of
called-up and paid-in share capital and any statu-
tory reserves, (ii) Ferrari would thereafter not hold
a pledge over Ferrari common shares or together
with subsidiaries hold Ferrari common shares with
an aggregate nominal value exceeding 50 percent of
the Ferrari’s issued share capital and (iii) the Board
of Directors has been authorized to do so by the
General Meeting.
The acquisition of fully paid-up shares by Ferrari
other than for no consideration (om niet) requires
authorization by the General Meeting. Such authori-
zation may be granted for a period not exceeding 18
months and shall specify the number of shares, the
manner in which the shares may be acquired and the
price range within which shares may be acquired.
The authorization is not required for the acquisition
of shares from employees of Ferrari or another
member of its Group, under a scheme applicable
to such employees and no authorization is required
for repurchase of shares acquired in certain other
limited circumstances in which the acquisition takes
place by operation of law, such as pursuant to merg-
ers or demergers. Such shares must be officially
listed on a price list of an exchange.
At a General Meeting the shareholders may
resolve to designate the Board of Directors of
Ferrari as the competent body to resolve on Ferrari
acquiring any Ferrari’s fully paid up Ferrari common
shares other than for no consideration (om niet) for
a period of up to 18 months.ì
Ferrari may, jointly with its subsidiaries, hold
Ferrari shares in its own capital exceeding one-
tenth of its issued capital for no more than three
years after acquisition of such Ferrari shares for
no consideration (om niet) or in certain other limited
circumstances in which the acquisition takes place
by operation of law, such as pursuant to mergers
or demergers. Any Ferrari shares held by Ferrari in
excess of the amount permitted shall transfer to all
members of the Board of Directors jointly at the end
of the last day of such three year period. Each mem-
ber of the Board of Directors shall be jointly and
severally liable to compensate Ferrari for the value
of the Ferrari shares at such time, with interest at
the statutory rate thereon from such time. The term
Ferrari shares in this paragraph shall include depos-
itary receipts for shares and shares in respect of
which Ferrari holds a right of pledge.
No votes may be cast at a General Meeting on
the Ferrari shares held by Ferrari or its subsidiar-
ies. Also no voting rights may be cast at a General
Meeting in respect of Ferrari shares for which
depositary receipts have been issued that are
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
131
BOARD REPORT
owned by Ferrari. Nonetheless, the holders of a
right of usufruct or pledge in respect of shares held
by Ferrari and its subsidiaries in Ferrari’s share
capital are not excluded from the right to vote on
such shares, if the right of usufruct or pledge
was granted prior to the time such shares were
acquired by Ferrari or its subsidiaries. Neither
Ferrari nor any of its subsidiaries may cast votes
in respect of a share on which it or its subsidiaries
holds a right of usufruct or pledge.
REDUCTION OF SHARE CAPITAL
Shareholders at a General Meeting have the power
to cancel shares acquired by Ferrari or to reduce
the nominal value of the shares. A resolution to re-
duce the share capital requires a majority of at least
two-thirds of the votes cast at the General Meeting,
if less than one-half of the issued capital is present
or represented at the meeting. If more than one-half
of the issued share capital is present or represent-
ed at the meeting, a simple majority of the votes cast
at the General Meeting is required. Any proposal for
cancellation or reduction of nominal value is subject
to general requirements of Dutch law with respect
to reduction of share capital.
TRANSFER OF SHARES
In accordance with the provisions of Dutch law,
pursuant to Article 12 of the Ferrari Articles of
Association, the transfer or creation of Ferrari
shares or a right in rem thereon requires a deed in-
tended for that purpose and save when Ferrari is a
party to the transaction, written acknowledgment
by Ferrari of the transfer.
The transfer of Ferrari common shares that
have not been entered into a book-entry system
will be effected in accordance with Article 12 of the
Ferrari Articles of Association.
Common shares that have been entered into
the DTC book-entry system will be registered in the
name of Cede & Co., as nominee for DTC and trans-
fers of beneficial ownership of shares held through
DTC will be effected by electronic transfer made by
DTC participants. Article 12 of the Ferrari Articles
of Association does not apply to the trading of such
Ferrari common shares on a regulated market or
the equivalent thereof.
Transfers of shares held outside of DTC (includ-
ing Monte Titoli S.p.A., as a participant in DTC) or
another direct registration system maintained by
Computershare, Ferrari’s transfer agent in New
York (“Transfer Agent”) and not represented by cer-
tificates are effected by a stock transfer instrument
and require the written acknowledgment by Ferrari.
Transfer of registered certificates is effected by
presenting and surrendering the certificates to the
Transfer Agent. A valid transfer requires the regis-
tered certificates to be properly endorsed for trans-
fer as provided for in the certificates and accompa-
nied by proper instruments of transfer and stock
transfer tax stamps for, or funds to pay, any applica-
ble stock transfer taxes.
Ferrari common shares are freely transferable.
As described below, special voting shares are gen-
erally not transferable.
At any time, a holder of Ferrari common shares
that are registered in the Loyalty Register (i.e. Electing
Common Shares or Qualifying Common Shares)
wishing to transfer such Ferrari common shares
other than in limited specified circumstances (i.e.,
transfers to affiliates or to relatives through succes-
sion, donation or other transfers) must first request
a de-registration of such shares from the Loyalty
Register and if held outside the Regular Trading
System, transfer such common shares back into the
Regular Trading System. After de-registration from
the Loyalty Register, such Ferrari common shares
no longer qualify as Electing Common Shares or
Qualifying Common Shares, as a result, the holder of
such Ferrari common shares is required to offer and
transfer the special voting shares associated with
such Ferrari common shares that were previously
Qualifying Common Shares to Ferrari for no consid-
eration (om niet) as described in detail in “—Loyalty
Voting Program—Terms and Conditions of the Special
Voting Shares—Withdrawal of Special Voting Shares”.
ANNUAL ACCOUNTS AND INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
Ferrari’s financial year is the calendar year. Within
four months after the end of each financial year, the
Board of Directors will prepare the annual accounts,
which must be accompanied by an annual report
and an auditors’ report and will publish the accounts
and annual report and will make those available for
inspection at Ferrari’s corporate address. All mem-
bers of the Board of Directors are required to sign
the annual accounts and in case the signature of
any member is missing, the reason for this must be
stated. The annual accounts are to be adopted by
the General Meeting at the annual general meeting
of shareholders, at which meeting the members of
the Board of Directors will be discharged from lia-
bility for performance of their duties with respect
to any matter disclosed in the annual accounts for
the relevant financial year insofar this appears from
the annual accounts. The annual accounts, the an-
nual report and independent registered public ac-
counting firm’s reports are made available through
Ferrari’s website to the shareholders for review as
from the day of the notice convening the annual gen-
eral meeting of shareholders.
PAYMENT OF DIVIDENDS
Ferrari may make distributions to the shareholders
and other persons entitled to the distributable prof-
its only to the extent that its shareholders’ equity ex-
ceeds the sum of the paid-up and called up portion
of the share capital and the reserves that must be
maintained in accordance with Dutch law. No distri-
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
bution of profits may be made to Ferrari itself for
shares that Ferrari holds in its own share capital.
Ferrari may only make a distribution of dividends
to the shareholders after the adoption of its statutory
annual accounts demonstrating that such distribu-
tion is legally permitted. The Board of Directors may
determine that other freely distributable distribu-
tions shall be made, in whole or in part, from Ferrari’s
share premium reserve or from any other reserve,
provided that payments from reserves may only
be made to the shareholders that are entitled to the
relevant reserve upon the dissolution of Ferrari and
provided further that the policy of Ferrari on addi-
tions to reserves and dividends is duly observed.
Holders of special voting shares will not receive
any dividend in respect of the special voting shares.
However Ferrari maintains a separate dividend
reserve for the special voting shares for the sole
purpose of the allocation of the mandatory minimal
profits that accrue to the special voting shares. This
allocation establishes a reserve for the amount that
would otherwise be paid. The special voting shares
do not carry any entitlement to any other reserve.
Any distribution out of the special dividend reserve
or the partial or full release of such reserve requires
a prior proposal from the Board of Directors and a
subsequent resolution of the meeting of holders of
special voting shares.
Insofar as the profits have not been distributed
or allocated to the reserves, they may, by resolution
of the General Meeting, be distributed as dividends
on the Ferrari common shares only. The General
Meeting may resolve, on the proposal of the Board
of Directors, to declare and distribute dividends in
U.S. Dollars. The Board of Directors may decide,
subject to the approval of the General Meeting and
the Board of Directors having been designated as
the body competent to pass a resolution for the
issuance of shares, that a distribution shall, wholly
or partially, be made in the form of shares, or that
shareholders shall be given the option to receive a
distribution either in cash or in the form of shares.
The right to dividends and distributions will lapse
if the dividends or distributions are not claimed
within five years following the day after the date on
which they first became payable. Any dividends or
other distributions made in violation of the Ferrari
Articles of Association or Dutch law will have to be
repaid by the shareholders who knew or should
have known, of such violation.
GENERAL MEETINGS
AND VOTING RIGHTS
ANNUAL MEETING
An annual General Meeting must be held within six
months from the end of Ferrari’s preceding financial
year. The purpose of the annual General Meeting is to
discuss, among other things, the annual report, the
adoption of the annual accounts, allocation of prof-
its (including the proposal to distribute dividends),
release of members of the Board of Directors from
liability for their management and supervision, and
other proposals brought up for discussion by the
Board of Directors.
GENERAL MEETING
AND PLACE OF MEETINGS
Other General Meetings will be held if requested by
the Board of Directors, the chairman of the Board
of Directors, the chairperson or the chief executive
officer, or by the written request (stating the exact
subjects to be discussed) of one or more sharehold-
ers representing in aggregate at least 10 percent of
the issued share capital of the company (taking into
account the relevant provisions of Dutch law, and
the Ferrari Articles of Association and the applica-
ble stock exchange regulations). General Meetings
will be held in Amsterdam or Haarlemmermeer
(Schiphol Airport), the Netherlands.
CONVOCATION NOTICE AND AGENDA
General Meetings can be convened by a notice,
specifying the subjects to be discussed, the place
and the time of the meeting and admission and
participation procedure, issued at least 15 days
before the meeting or 42 days if shares of Ferrari
or depositary receipts issued with cooperation
of Ferrari have been admitted to trading on the
Euronext Milan or another regulated market as
referred to in Article 1:1 of the Dutch Financial
Supervision
Act.
All
convocations,
announce-
ments, notifications and communications to share-
holders and other persons entitled to attend the
General Meeting must be made on the company’s
corporate website in accordance with the relevant
provisions of Dutch law. The agenda for a General
Meeting may contain the items requested by one
or more shareholders representing at least three
percent of the issued share capital of the compa-
ny. Requests must be made in writing, including the
reasons for adding the relevant item on the agen-
da, and received by the Board of Directors at least
60 days before the day of the meeting. The agen-
da of the annual general meeting of shareholders
shall contain, inter alia, the following items:
• adoption of the annual report;
• the remuneration report;
• at least every four years after adoption of the re-
muneration policy, the remuneration policy;
• the policy of the Company on additions to re-
serves and on dividends, if any;
• granting of discharge to the Directors in respect
of the performance of their duties in the relevant
financial year;
• the appointment of Directors;
• if applicable, the proposal to pay a dividend;
• if
applicable,
discussion
of
any
substantial
change in the corporate governance structure
of the Company; and
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
133
BOARD REPORT
• any matters decided upon by the person(s) con-
vening the meeting and any matters placed on
the agenda with due observance of applicable
Dutch law.
The Board of Directors shall provide the general
meeting of shareholders with all requested infor-
mation, unless this would be contrary to an over-
riding interest of the Company. If the Board of
Directors invokes an overriding interest, it must
give reasons.
ADMISSION AND REGISTRATION
Each shareholder entitled to vote, and each person
holding a usufruct or pledge to whom the right to
vote on the Ferrari common shares accrues, shall be
authorized to attend the General Meeting, to address
the General Meeting and to exercise its voting rights.
The registration date of each General Meeting is the
twenty-eighth day prior to the date of the General
Meeting so as to establish which shareholders are
entitled to attend and vote at the General Meeting.
Only holders of shares and other persons entitled to
vote or attend the General Meeting, at such registra-
tion date are entitled to attend and vote at the General
Meeting. The convocation notice for the meeting shall
state the registration date and the manner in which
the persons entitled to attend the General Meeting
may register and exercise their rights.
Those entitled to attend a General Meeting may
be represented at a General Meeting by a proxy
authorized in writing. The requirement that a proxy
must be in written form is also fulfilled when it is
recorded electronically.
Members of the Board of Directors have the
right to attend a General Meeting. In these General
Meetings they have an advisory role.
VOTING RIGHTS
Ferrari applies the one-share-one-vote principle,
meaning that each Ferrari common share and each
special voting share confers the right on the holder
to cast one vote at a General Meeting. Resolutions
are passed by a simple majority of the votes cast, un-
less Dutch law or the Ferrari Articles of Association
prescribes a larger majority. Blank votes shall not be
counted as votes cast. Shares in respect of which
Dutch law determines that no votes may be cast
shall be disregarded for the purposes of determin-
ing the proportion of shareholders voting, present
or represented or the proportion of the share cap-
ital present or represented. Under Dutch law and/
or the Ferrari Articles of Association, the following
matters require at least two-thirds of the votes cast
at a meeting if less than half of the issued share cap-
ital is present or represented:
• 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 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.
Under Dutch law, a resolution to adopt the remuner-
ation policy requires three-fourths of the votes val-
idly cast, unless the Ferrari Articles of Association
include a lower threshold which could be inserted
in the Ferrari Articles of Association through a res-
olution of the General Meeting pursuant to a prior
proposal of the Board of Directors. Such a reso-
lution to amend the Ferrari Articles of Association
must be approved by a vote of a majority of at least
two-thirds of the votes cast if less than one-half of
the issued share capital is present or represent-
ed at such General Meeting and a simple majority
vote if one-half or more than one-half of the issued
share capital is present or represented at such
General Meeting.
All votes shall be cast in writing or electronically.
The chairman of the meeting may, however, deter-
mine that voting by raising hands or in another man-
ner shall be permitted.
Voting by acclamation shall be permitted if none
of the shareholders present or represented objects.
No voting rights shall be exercised in the gen-
eral meeting of shareholders for shares owned by
the Company or by a subsidiary of the Company.
Pledgees and usufructuaries of shares owned by
the Company and its subsidiaries shall however not
be excluded from exercising their voting rights, if
the right of pledge or usufruct was created before
the shares were owned by the Company or a subsid-
iary. Neither the Company nor any of its subsidiaries
may exercise voting rights for shares in respect of
which it holds a right of pledge or usufruct.
Without prejudice to the Articles of Association,
the Company shall determine for each resolution
passed:
• the number of shares on which valid votes have
been cast;
• the percentage that the number of shares as
referred to under a. represents in the issued
share capital;
• the aggregate number of votes validly cast; and
• the aggregate number of votes cast in favor of
and against a resolution, as well as the number
of abstentions.
LIMITATIONS ON RIGHTS OF NON-RESIDENT
OR FOREIGN SHAREHOLDERS
There are no limitations imposed by Dutch law or by
the Ferrari Articles of Association on the rights of
non-resident or foreign shareholders to hold or vote
Ferrari common shares.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
135
BOARD REPORT
SHAREHOLDERS’ VOTES ON
CERTAIN TRANSACTIONS
Any important change in the identity or character of
Ferrari must be approved by the General Meeting,
including (i) the termination transfer to a third par-
ty of the business of Ferrari or practically the entire
business of Ferrari; (ii) the entry into or breaking off
of any long-term cooperation of Ferrari or a subsid-
iary with another legal entity or company or as a ful-
ly liable partner of a general partnership or limited
partnership, where such entry into or breaking off
is of far-reaching importance to Ferrari; and (iii) the
acquisition or disposal by Ferrari or a subsidiary of
an interest in the capital of a company with a value of
at least one-third of Ferrari’s assets according to the
consolidated statement of financial position with ex-
planatory notes included in the last adopted annual
accounts of Ferrari.
AMENDMENTS TO THE FERRARI ARTICLES OF
ASSOCIATION, INCLUDING VARIATION OF RIGHTS
A resolution of the General Meeting to amend the
Ferrari Articles of Association or to wind up Ferrari
may be approved only if proposed by the Board of
Directors and must be approved by a vote of a ma-
jority of at least two-thirds of the votes cast if less
than one-half of the issued share capital is present
or represented at such General Meeting.
The rights of shareholders may be changed only
by amending the Ferrari Articles of Association in
compliance with Dutch law.
DISSOLUTION AND LIQUIDATION
The General Meeting may resolve to dissolve Ferrari,
upon a proposal of the Board of Directors thereto. A
majority of at least two-thirds of the votes cast shall
be required if less than one-half of the issued capi-
tal is present or represented at the meeting. In the
event of dissolution, Ferrari will be liquidated in ac-
cordance with Dutch law and the Ferrari Articles of
Association and the liquidation shall be arranged by
the members of the Board of Directors, unless the
General Meeting appoints other liquidators. During
liquidation, the provisions of the Ferrari Articles of
Association will remain in force as long as possible.
If Ferrari is dissolved and liquidated, whatever
remains of Ferrari’s equity after all its debts have
been discharged shall first be applied to distribute
the aggregate balance of share premium reserves
and other reserves (other than the special dividend
reserve), to holders of Ferrari common shares in
proportion to the aggregate nominal value of the
Ferrari common shares held by each holder; sec-
ondly, from any balance remaining, an amount equal
to the aggregate amount of the nominal value of
the Ferrari common shares will be distributed to
the holders of Ferrari common shares in propor-
tion to the aggregate nominal value of Ferrari com-
mon shares held by each of them; thirdly, from any
balance remaining, an amount equal to the aggre-
gate amount of the special voting shares dividend
reserve will be distributed to the holders of special
voting shares in proportion to the aggregate nom-
inal value of the special voting shares held by each
of them; fourthly, from any balance remaining, the
aggregate amount of the nominal value of the spe-
cial voting shares will be distributed to the holders
of special voting shares in proportion to the aggre-
gate nominal value of the special voting shares held
by each of them; and, lastly, any balance remaining
will be distributed to the holders of Ferrari common
shares in proportion to the aggregate nominal value
of Ferrari common shares held by each of them.
LIABILITY OF DIRECTORS
Under Dutch law, the management of a company is
a joint undertaking and each member of the Board
of Directors can be held jointly and severally liable
to Ferrari for damages in the event of improper
or negligent performance of their duties. Further,
members of the Board of Directors can be held lia-
ble to third parties based on tort, pursuant to certain
provisions of the Dutch Civil Code. All Directors are
jointly and severally liable for failure of one or more
co-Directors. An individual Director is only exempt-
ed from liability if he proves that he cannot be held
seriously culpable for the mismanagement and that
he has not been negligent in seeking to prevent the
consequences of the mismanagement. In this re-
gard a Director may, however, refer to the allocation
of tasks between the Directors. In certain circum-
stances, Directors may incur additional specific civil
and criminal liabilities.
INDEMNIFICATION OF DIRECTORS
AND OFFICERS
Under Dutch law, indemnification provisions may
be included in a company’s articles of association.
Under the Ferrari Articles of Association, Ferrari is
required to indemnify its Directors, officers, former
Directors, former officers and any person who may
have served at Ferrari’s request as a Director or
officer of another company in which Ferrari owns
shares or of which Ferrari is a creditor who were
or are made a party or are threatened to be made
a party or are involved in, any threatened, pending
or completed action, suit, or proceeding, whether
civil, criminal, administrative, arbitrative or investi-
gative (each a “Proceeding”), or any appeal in such
a Proceeding or any inquiry or investigation that
could lead to such a Proceeding, against any and all
liabilities, damages, reasonable and documented
expenses (including reasonably incurred and sub-
stantiated attorney’s fees), financial effects of judg-
ments, fines, penalties (including excise and similar
taxes and punitive damages) and amounts paid in
settlement in connection with such Proceeding by
any of them. Notwithstanding the above, no indem-
nification shall be made in respect of any claim, is-
136
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
sue or matter as to which any of the abovemen-
tioned indemnified persons shall be adjudged to be
liable for gross negligence or willful misconduct in
the performance of such person’s duty to Ferrari.
This indemnification by Ferrari is not exclusive of
any other rights to which those indemnified may be
entitled otherwise. Ferrari has purchased directors’
and officers’ liability insurance for the members of
the Board of Directors and certain other officers,
substantially in line with that purchased by similarly
situated companies.
DUTCH CORPORATE GOVERNANCE CODE
The Dutch Corporate Governance Code contains
principles and best practice provisions that regulate
relations between the board and the shareholders
(including the General Meeting). The Dutch Corporate
Governance Code is divided into five chapters which
address the following topics: (i) sustainable long-
term value creation; (ii) effective management and
supervision; (iii) remuneration; (iv) the general meet-
ing; and (v) one-tier governance structure.
Dutch companies whose shares are listed on a
government-recognized stock exchange, such as
the NYSE, are required under Dutch law to disclose
in their annual reports whether or not they apply
the provisions of the Dutch Corporate Governance
Code and, in the event that they do not apply a cer-
tain provision, to explain the reasons why they have
chosen to deviate.
Ferrari acknowledges the importance of good
corporate governance and supports the best prac-
tice provisions of the Dutch Corporate Governance
Code. Therefore, Ferrari intends to comply with
the relevant best practice provisions of the Dutch
Corporate Governance Code except as may be
noted from time to time in Ferrari’s annual reports.
The Dutch Corporate Governance Code has
been revised in December 2016 and the revised
Dutch Corporate Governance Code entered into
force on January 1, 2018, being applicable retroac-
tively as from the financial year 2017. Consequently,
Ferrari has reported in 2018 regarding its applica-
tion of the revised Dutch Corporate Governance
Code with respect to the financial year 2017. On
December 20, 2022, the Corporate Governance
Code Monitoring Committee published an update
to the Dutch Corporate Governance Code. The
updated Dutch Corporate Governance Code has
entered into force on January 1, 2024 and is applica-
ble retroactively as from financial year 2023.
DISCLOSURE OF HOLDINGS UNDER DUTCH LAW
Home member state for purposes
of the EU Transparency Directive
The Netherlands is Ferrari’s home member state
for the purposes of the EU Transparency Directive
(Directive 2004/109/EC, as amended). Due to the list-
ing of the Ferrari common shares on Euronext Milan,
we are subject to financial and other reporting obli-
gations under the Dutch act on Financial Supervision
(Wet op het financieel toezicht, “AFS”) and the Dutch
Financial Reporting Supervision Act (Wet toezicht fi-
nanciële verslaggeving), which both implement the
EU Transparency Directive in the Netherlands.
Disclosure of information
Ferrari is required to publish its annual report (con-
sisting of the audited annual accounts and the board
report, including a sustainability statement in accor-
dance with the Corporate Sustainability Reporting
Directive) within four months after the end of each
financial year and its half-yearly figures within three
months after the end of the first six months of each
financial year.
Shareholder disclosure
and reporting obligaions
As a result of the listing of the Ferrari common
shares on the Euronext Milan, chapter 5.3 of the AFS
applies, pursuant to which any person who, direct-
ly or indirectly, acquires or disposes of an actual or
potential capital interest and/or actual or potential
voting rights in Ferrari must promptly give written
notice to the Netherlands Authority for the Financial
Markets (stichting Autoriteit Financiële Markten, the
“AFM”) of such acquisition or disposal by means of
a standard form if, as a result of such acquisition or
disposal, the percentage of capital interest and/or
voting rights held by such person reaches, exceeds
or falls below the following thresholds: 3 percent, 5
percent, 10 percent, 15 percent, 20 percent, 25 per-
cent, 30 percent, 40 percent, 50 percent, 60 percent,
75 percent and 95 percent.
For the purpose of calculating the percentage of
capital interest or voting rights, the following inter-
ests must, inter alia, be taken into account: (i) shares
and/or voting rights directly held (or acquired or
disposed of) by any person, (ii) shares and/or vot-
ing rights held (or, acquired or disposed of) by such
person’s controlled entities or by a third party for
such person’s account, (iii) voting rights held (or
acquired or disposed of) by a third party with whom
such person has concluded an oral or written voting
agreement, (iv) voting rights acquired pursuant to
an agreement providing for a temporary transfer of
voting rights in consideration for a payment, and (v)
shares which such person, or any controlled entity
or third party referred to above, may acquire pur-
suant to any option or other right to acquire shares.
As a consequence of the above, special voting
shares must be added to Ferrari common shares
for the purposes of the above thresholds.
Controlled entities (within the meaning of the
AFS) do not themselves have notification obligations
under the AFS as their direct and indirect interests
are attributed to their (ultimate) parent. If a per-
son who has a three percent or larger interest in
Ferrari’s share capital or voting rights ceases to be a
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
137
BOARD REPORT
controlled entity it must immediately notify the AFM
and all notification obligations under the AFS will
become applicable to such former controlled entity.
Special rules apply to the attribution of shares
and/or voting rights which are part of the property
of a partnership or other form of joint ownership. A
holder of a pledge or right of usufruct in respect of
shares can also be subject to notification obligations,
if such person has, or can acquire, the right to vote
on the shares. The acquisition of (conditional) voting
rights by a pledgee or beneficial owner may also
trigger notification obligations as if the pledgee or
beneficial owner were the legal holder of the shares
and/or voting rights.
Furthermore, when calculating the percentage
of capital interest, a person is also considered to be in
possession of shares if (i) such person holds a finan-
cial instrument the value of which is (in part) deter-
mined by the value of the shares or any distributions
associated therewith and which does not entitle such
person to acquire any shares, (ii) such person may be
obliged to purchase shares on the basis of an option,
or (iii) such person has concluded another contract
whereby such person acquires an economic interest
comparable to that of holding a share.
If a person’s capital interest and/or voting rights
reaches, exceeds or falls below the abovementioned
thresholds as a result of a change in Ferrari’s issued
and outstanding share capital or voting rights, such
person is required to make a notification not later
than on the fourth trading day after the AFM has
published Ferrari’s notification as described below.
Following
the
implementation
of
Directive
2013/50/EU into the AFS, every holder of three
percent more of the issued and outstanding share
capital or voting rights whose interest has changed
compared to his most recent notification, and which
holder knows or should know that pursuant to this
change his interest reaches or crosses a threshold
as a result of certain acts (as described above and
including the exchange of a financial instrument or a
contract (pursuant to which the holder is deemed to
have issued and outstanding shares or voting rights
at his disposal)), must notify the AFM of this change.
Ferrari is required to notify the AFM promptly
of any change of one percent or more in its issued
and outstanding share capital or voting rights since
a previous notification. Other changes in Ferrari’s
issued and outstanding share capital or voting rights
must be notified to the AFM within eight days after
the end of the quarter in which the change occurred.
In addition to the above described notification
obligations pertaining to capital interest or voting
rights, pursuant to Regulation (EU) No 236/2012, as
amended, notification must be made of any net short
position of 0.1% in the issued share capital of Ferrari,
and of every subsequent 0.1% above this threshold.
Notifications starting at 0.5% and every subsequent
0.1% above this threshold will be made public via the
short selling register of the AFM. Furthermore, gross
short positions shall be notified in the event that a
threshold is reached, exceeded or fallen below. With
regard to gross short positions, the same disclosure
thresholds as for holders of capital interests and/or
voting rights apply.
Furthermore, each member of the Board of
Directors must notify the AFM:
• within two weeks after his/her appointment of
the number of shares he/she holds and the num-
ber 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 re-
spect of Ferrari’s issued and outstanding share
capital, immediately after the relevant change.
The AFM keeps a public register of all notifications
made pursuant to these disclosure obligations and
publishes any notification received which can be ac-
cessed via www.afm.nl. The notifications referred
to in this paragraph should be made in writing by
means of a standard form or electronically through
the notification system of the AFM.
Non-compliance with these disclosure obli-
gations is an economic offense and may lead to
criminal prosecution. The AFM may impose admin-
istrative penalties for non-compliance, and the pub-
lication thereof. In addition, a civil court can impose
measures against any person who fails to notify or
incorrectly notifies the AFM of matters required to
be notified. A claim requiring that such measures
be imposed may be instituted by Ferrari and/or by
one or more shareholders who alone or together
with others represent at least three percent of the
issued and outstanding share capital of Ferrari or
are able to exercise at least three percent of the
voting rights. The measures that the civil court may
impose include:
• an order requiring appropriate disclosure;
• suspension of the right to exercise the voting
rights for a period of up to three years as deter-
mined by the court;
• voiding a resolution adopted by the General
Meeting, if the court determines that the reso-
lution would not have been adopted but for the
exercise of the voting rights of the person with
a duty to disclose, or suspension of a resolution
adopted by the general meeting of shareholders
until the court makes a decision about such void-
ing; and
• an order to refrain, during a period of up to
five years as determined by the court, from ac-
quiring 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.
Shareholders are advised to consult with their own
legal advisers to determine whether the disclosure
obligations apply to them.
138
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
MANDATORY BID REQUIREMENT
Under Dutch law any person, acting alone or in con-
cert with others, who, directly or indirectly, acquires
30 percent or more of Ferrari’s voting rights will
be obliged to launch a public offer for all outstand-
ing shares in Ferrari’s share capital. An exception is
made for shareholders who, whether alone or acting
in concert with others, had an interest of at least 30
percent of Ferrari’s voting rights before the shares
were first listed on the Euronext Milan (formerly
Mercato Telematico Azionario or “MTA”), and who still
maintained such an interest after such first listing.
Immediately after the first listing of Ferrari common
shares on MTA, now Euronext Milan, Exor held more
than 30 percent of Ferrari’s voting rights. Therefore
Exor’s interest in Ferrari was grandfathered and the
exception that applies to it will continue to apply to it
for as long as its holding of shares represents over
30 percent of Ferrari’s voting rights.
DUTCH FINANCIAL REPORTING
SUPERVISION ACT
On the basis of the Dutch Financial Reporting Su-
pervision Act (Wet toezicht financiële verslaggeving),
or the FRSA, the AFM supervises the application of
financial reporting standards by, amongst others,
companies whose official seat is in the Netherlands
and whose securities are listed on a regulated mar-
ket within the EU or in a non-EU country on a system
similar to a regulated market.
Pursuant to the FRSA, the AFM has an indepen-
dent right to (i) request an explanation from Ferrari
regarding its application of the applicable financial
reporting standards and (ii) recommend to us the
making available of further explanations. If we do
not comply with such a request or recommendation,
the AFM may request that the Enterprise Chamber
order us to (i) make available further explanations as
recommended by the AFM, (ii) provide an explana-
tion of the way we have applied the applicable finan-
cial reporting standards to our financial reports or
(iii) prepare our financial reports in accordance with
the Enterprise Chamber’s instructions.
COMPULSORY ACQUISITION
Pursuant to Section 2:92a of the Dutch Civil Code
(“DCC”), a shareholder who, for its own account,
holds at least 95 percent of the issued share capi-
tal of Ferrari may institute proceedings against the
other shareholders jointly for the transfer of their
shares to it. The proceedings are held before the
Dutch Enterprise Chamber and can be instituted by
means of a writ of summons served upon each of
the minority shareholders in accordance with the
provisions of the Dutch Code of Civil Procedure.
The Enterprise Chamber may grant the claim for
the squeeze-out in relation to all minority share-
holders and will determine the price to be paid for
the shares, if necessary after appointment of one
or three expert(s) who will offer an opinion to the
Enterprise Chamber on the value to be paid for the
shares of the minority shareholders. Once the or-
der to transfer becomes final before the Enterprise
Chamber, the person acquiring the shares must
give written notice of the date and place of payment
and the price to the holders of the shares to be ac-
quired whose addresses are known to it. Unless the
addresses of all of them are known to it, it must also
publish the same in a Dutch daily newspaper with a
national circulation. A shareholder can only appeal
against the judgment of the Enterprise Chamber be-
fore the Dutch Supreme Court.
In addition, pursuant to Section 2:359c of the DCC,
an offeror under a public offer is also entitled to start
a squeeze out procedure, within three months after
the public offer, if following the public offer it holds
at least 95% of the issued share capital of Ferrari
representing at least 95% of the total voting rights. In
the event of a mandatory offer, the mandatory offer
price is in principle deemed to be a reasonable price,
which has to be accepted by minority shareholders.
In the event of a voluntary public offer, the offer price
is considered reasonable if at least 90% of the shares
have been acquired under the public offer.
Pursuant to Section 2:359d of the DCC, if the
offeror has acquired at least 95% of the issued
share capital of Ferrari representing at least 95%
of the total voting rights, each remaining minority
shareholder is entitled to demand a squeeze out.
This procedure must be initiated with the Enterprise
Chamber within three months after the end of the
period for tendering Shares in the public offer. With
regard to the price per share to be paid by the major-
ity Shareholder, the same procedure as for squeeze
out proceedings initiated by the offeror, as set out in
the previous paragraph, applies.
DISCLOSURE OF TRADES IN LISTED SECURITIES
DISCLOSURE UNDER DUTCH LAW
Pursuant to the AFS and the Market Abuse Regulation
(EU) No 596/2014 (the “Market Abuse Regulation”),
each of the members of the Board of Directors and
any other person discharging managerial respon-
sibilities within Ferrari and who in that capacity is
authorized to make decisions affecting the future
developments and business prospects of Ferrari
and who has regular access to inside information
relating, directly or indirectly, to Ferrari (each, an
“Insider”) must notify the AFM of all transactions,
conducted or carried out for his/her own account,
relating to Ferrari common shares, special voting
shares or financial instruments, the value of which is
(in part) determined by the value of Ferrari common
shares or special voting shares.
In addition, persons who are closely associated
with members of the Board of Directors or any of
the other Insiders must notify the AFM of all trans-
actions conducted for their own account relating to
Ferrari’s shares or financial instruments, the value of
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
139
BOARD REPORT
which is (in part) determined by the value of Ferrari’s
shares. The Market Abuse Regulation designates the
following categories of persons: (i) the spouse or
any partner considered by applicable law as equiv-
alent to the spouse, (ii) dependent children, (iii) other
relatives who have shared the same household for
at least one year at the relevant transaction date, and
(iv) any legal person, trust or partnership, among
other things, whose managerial responsibilities are
discharged by a member of the Board of Directors
or any other Insider or by a person referred to under
(i), (ii) or (iii) above.
The AFM must be forthwith notified of transac-
tions effected in either Ferrari’s shares or financial
instruments, the value of which is (in part) deter-
mined by the value of Ferrari’s shares, following
the transaction date by means of a standard form.
Notifications under the Market Abuse Regulation
may however be postponed until the date that the
value of the transactions carried out on a person’s
own account, together with the transactions car-
ried out by the persons associated with that person,
reaches or exceeds the amount of €5,000 in the cal-
endar year in question. The AFM keeps a public reg-
ister of all notifications made pursuant to the AFS
and the Market Abuse Regulation.
Ferrari is required to make inside information
public. Inside information is precise information
directly or indirectly relating to the issuer or the trade
in its securities which has not yet been made public
and publication of which could significantly affect
the trading price of the securities. Ferrari must also
provide the CONSOB with this inside information at
the time of publication. Furthermore, Ferrari must
without delay publish the inside information on its
website and keep it available on Ferrari’s website for
at least five years.
It is prohibited for any person to make use of
inside information by conducting, effecting or
attempting to conduct or effect a transaction in
relevant financial instruments. In addition, it is pro-
hibited for any person to pass on inside informa-
tion relating to Ferrari or the trade in its securities
to a third party or to recommend or induce, on the
basis of inside information, any person to conduct
a transaction in securities of Ferrari. Furthermore,
it is prohibited for any person to manipulate or
attempt to manipulate the market, for instance by
conducting transactions which could lead to an
incorrect or misleading signal of the supply of, the
demand for or the price of the securities. The pro-
visions of the Market Abuse Regulation concerning
insider trading and manipulation of the market are
self-executing and immediately applicable Italian
law. Moreover, on October 2016 CONSOB started a
process for the review (in light of the Market Abuse
Regulation) of certain regulatory provisions con-
tained in the Issuers’ Regulation no. 11971/1999.
Non-compliance with these reporting obliga-
tions could lead to criminal penalties, administrative
fines and cease-and-desist orders (and the publica-
tion thereof), imprisonment or other sanctions.
SHAREHOLDER DISCLOSURE AND REPORTING
OBLIGATIONS UNDER U.S. LAW
Holders of Ferrari shares are subject to certain
U.S. reporting requirements under the Securities
Exchange Act of 1934 (the “Exchange Act”) for share-
holders owning more than 5 percent of any class of
equity securities registered pursuant to Section 12
of the Exchange Act. Among the reporting require-
ments are disclosure obligations intended to inform
the market of significant accumulations of shares
that may lead to a change of control of an issuer.
If Ferrari were to fail to qualify as a foreign private
issuer in the future, Section 16(a) of the Exchange
Act would require Ferrari’s Directors and executive
officers, and persons who own more than ten per-
cent of a registered class of Ferrari’s equity securi-
ties, to file reports of ownership of, and transactions
in, Ferrari’s equity securities with the SEC. Such
Directors, executive officers and ten percent stock-
holders would also be required to furnish Ferrari
with copies of all Section 16 reports they file.
DISCLOSURE REQUIREMENTS UNDER ITALIAN LAW
Summarized below are the most significant require-
ments to be complied with by Ferrari in connec-
tion with the admission to listing of Ferrari common
shares on the Euronext Milan. The breach of the obli-
gations described below may result in the application
of fines and criminal penalties (including, for instance,
those provided for insider trading and market manip-
ulation). Further requirements may be imposed by
CONSOB and/or Borsa Italiana as a result of the listing
of Ferrari common shares on the Euronext Milan.
In particular, the following main disclosure obli-
gations provided for by the Legislative Decree no.
58/1998, or the Italian Financial Act, effective as
of the date of this document shall apply to Ferrari,
article 92 (equal treatment principle), article 114
(information to be provided to the public), article
114-bis (information to be provided to the market
concerning the allocation of financial instruments to
corporate officers, employees and collaborators),
article 115 (information to be disclosed to CONSOB)
and article 180 and the following (relating to insider
trading and market manipulation). In addition to the
above, the applicable provisions set forth under the
market rules (including those relating to the timing
for the payment of dividends) shall apply to Ferrari.
DISCLOSURE OF INSIDE INFORMATION
Pursuant to the Market Abuse Regulation, Ferrari
shall disclose to the public, without delay, any inside
information which: (i) is of a precise nature, (ii) has
not been made public, (iii) relates, directly or indi-
rectly, to Ferrari or Ferrari’s common shares, and
(iv) if it were made public, would be likely to have a
significant effect on the prices of Ferrari’s common
shares or on the price of related derivative financial
instruments (the “Inside Information”).
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BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
In this regard, Inside Information shall be deemed to
be of a precise nature if: (a) it indicates a set of circum-
stances which exists or which may reasonably be
expected to come into existence, or an event which
has occurred or which may reasonably be expected
to occur and (b) it is specific enough to enable a con-
clusion to be drawn as to the possible effect of that
set of circumstances or events on the prices of the
financial instruments (i.e., Ferrari’s common shares)
or the related derivative financial instruments.
The above disclosure requirement shall be
complied with through the publication of a press
release by Ferrari, in accordance with the modal-
ities set forth under the Market Abuse Regulation,
Dutch and Italian law, disclosing to the public the
relevant Inside Information. The provisions of the
MAR concerning the disclosure of inside informa-
tion are self-executing and immediately applicable
under Italian law.
Under specific circumstances, CONSOB may at
any time request: (a) Ferrari to disclose to the pub-
lic specific information or documentation where
deemed appropriate or necessary or alternatively
(b) to be provided with specific information or docu-
mentation. For this purpose, CONSOB has wide pow-
ers to, among other things, carry out inspections or
request information to the members of the manag-
ing board, the members of the supervisory board or
to the external auditor.
Ferrari shall publish and transmit to CONSOB
any information disseminated in any non-EU-coun-
tries where Ferrari’s common shares are listed (i.e.,
the United States), if this information is significant
for the purposes of the evaluation of Ferrari’s com-
mon shares listed on the Euronext Milan.
INSIDERS’ REGISTER
Pursuant to the Market Abuse Regulation, Ferrari and
its subsidiaries, as well as persons acting on their
behalf or for their account, shall draw up, and keep
promptly updated, a list of persons who, in the exer-
cise of their employment, profession or duties, have
access to Inside Information. Ferrari shall provide
such list to the competent authority at its request.
PUBLIC TENDER OFFERS
Certain rules provided for under Italian law with
respect to both voluntary and mandatory public
tender offers shall apply to any offer launched for
Ferrari’s common shares. In particular, among oth-
er things, the provisions concerning the tender of-
fer price, the content of the offer document and the
disclosure of the tender offer will be subject to the
supervision by CONSOB and Italian law.
ELECTION AND REMOVAL OF DIRECTORS
The Ferrari Articles of Association provide that the
Board of Directors shall be composed of three or
more members.
Directors are appointed by a simple majority of the
votes validly cast at a General Meeting. The General
Meeting may at any time suspend or dismiss any
Director.
DISCLOSURES PURSUANT TO DECREE ARTICLE
10 EU-DIRECTIVE ON TAKEOVERS
In accordance with the Dutch Besluit artikel 10 over-
namerichtlijn (the “Decree”), the Company makes the
following disclosures:
• For information on the capital structure of the
Company, the composition of the issued share
capital and the existence of the two classes of
shares, please refer to Note 13 to the Company
Financial Statements in this Annual Report. For
information on the rights attached to the com-
mon shares, please refer to the Company’s
Articles of Association. To summarize, the rights
attached to common shares comprise pre-emp-
tive rights upon issuance of common shares,
the entitlement to attend to the general meeting
of Shareholders and to speak and vote at that
meeting and the entitlement to distributions of
such amount of the Company’s profit as remains
after allocation to reserves. For information on
the rights attached to the special voting shares,
please refer to the Articles of Association
and the Terms and Conditions for the Special
Voting Shares which can both be found on the
Company’s website and more in particular to
the paragraph “Loyalty Voting Program” of this
Annual Report. At December 31, 2024, the is-
sued share capital of the Company consisted of
193,923,499 common shares, representing ap-
proximately 75.38 percent of the aggregate is-
sued share capital, and 63,349,112 special voting
shares, representing approximately 24.62 per-
cent of the aggregate issued share capital.
• The Company has imposed no limitations on
the transfer of common shares. The Articles of
Association provide in Article 13 for transfer re-
strictions for special voting shares.
• For
information
on
participations
in
the
Company’s capital in respect of which pursuant to
Sections 5:34, 5:35 and 5:43 of the Dutch Financial
Supervision Act (Wet op het financieel toezicht)
notification requirements apply, please refer to
the chapter “Major Shareholders” of this Annual
Report. There you will find a list of Shareholders
who are known to the Company to have holdings
of 3 percent or more at the stated date.
• No special control rights or other rights accrue
to shares in the capital of the Company.
• A mechanism for verifying compliance with a
scheme allowing employees to subscribe for or
to acquire shares in the capital of the company
or a subsidiary if the employees do not arrange
for such verification directly is not applicable to
the Company.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
141
BOARD REPORT
• No restrictions apply to voting rights attached
to shares in the capital of the Company, nor are
there any deadlines for exercising voting rights.
The Articles of Association allow the Company
to cooperate in the issuance of registered de-
positary receipts for common shares, but only
pursuant to a resolution to that effect of the
Board of Directors. The Company is not aware
of any depository receipts having been issued
for shares in its capital.
• The Company is not aware of the existence of
any agreements with Shareholders which may
result in restrictions on the transfer of shares or
limitation of voting rights except for the share-
holders’ agreement, dated December 23, 2015
between Exor (formerly Exor S.p.A.) and Piero
Ferrari, recently amended to reflect adherence
by Trust Piero Ferrari, which became effective
upon the completion of the Separation on January
3, 2016 (the “Shareholders’ Agreement”). The
Shareholders’ Agreement includes certain pre-
emption rights of Exor in the event of a proposed
transfer of common shares by Piero Ferrari, and
certain rights of first offer of Piero Ferrari in the
event of a proposed transfer of common shares
by Exor, in each case subject to the exceptions
set forth in the Shareholders’ Agreement. The
Shareholders’ Agreement will remain in force un-
til the fifth anniversary of the Separation provided
that if neither of the parties to the Shareholders’
Agreement
terminates
the
Shareholders’
Agreement within six months before the end of
the initial term, then the Shareholders’ Agreement
shall be renewed automatically for another five
year term. Since neither of the parties to the
Shareholders’ Agreement terminated it within six
months before January 3, 2021, the Shareholders’
Agreement was automatically renewed for an-
other five year term and, therefore, until January
3, 2026. On December 16, 2022, Exor N.V., Mr.
Piero Ferrari and Trust Piero Ferrari entered
into an adherence and amendment agreement
whereby Trust Piero Ferrari became a party to
the Shareholders’ Agreement and certain terms
of the Shareholders’ Agreement were amended.
The Shareholders’ Agreement, as so amended,
is governed by the laws of the Netherlands and it
mainly concerns the “acting in concert” and cer-
tain pre-emption rights and rights of first offer
with respect to the shares of the Company.
• The rules governing the appointment and dis-
missal of members of the Board of Directors
are stated in the Articles of Association of
the Company. All members of the Board of
Directors are appointed by the general meeting
of Shareholders. The term of office of all mem-
bers of the Board of Directors is for a period
of approximately one year after appointment,
such period expiring on the day the first Annual
General Meeting of Shareholders is held in the
following calendar year. The general meeting of
Shareholders has the power to suspend or dis-
miss any member of the Board of Directors at
any time. The rules governing an amendment
of the Articles of Association are stated in the
Articles of Association and require a resolution
of the general meeting of Shareholders which
can only be passed pursuant to a prior proposal
of the Board of Directors.
• The general powers of the Board of Directors
are stated in the Articles of Association of the
Company. Pursuant to the resolution of the
Annual General Meeting held on April 17, 2024, the
Board of Directors has been authorized to issue
common shares in the capital of the Company
and to grant rights to subscribe for common
shares in the capital of the Company. This autho-
rization is limited in respect of common shares
to 10 percent of the issued common shares for
general corporate purposes as of the date of the
2024 Annual General Meeting (i.e. April 17, 2024),
which can be used for any and all purposes nec-
essary in the opinion of the Board of Directors.
The authorization has been granted for a period
of 18 months starting from the date of the 2024
Annual General Meeting of Shareholders on April
17, 2024 up to and including October 16, 2025. The
Board of Directors has also been designated for
the same period as the authorized body to limit or
exclude the rights of pre-emption of sharehold-
ers in connection with the authority of the Board
of Directors to issue common shares and grant
rights to subscribe for common shares as re-
ferred to above. Pursuant to the resolution of the
Annual General Meeting held on April 13, 2022, the
Board of Directors has been further authorized
to issue special voting shares in the capital of the
Company and to grant rights to subscribe for spe-
cial voting shares in the capital of the Company.
This authorization is limited in respect of special
voting shares to 10 percent of the maximum
aggregate amount of special voting shares as
provided for in the Company’s authorized share
capital. The authorization has been granted for
a period of 5 years starting from the date of the
2022 Annual General Meeting of Shareholders on
April 13, 2022 up to and including April 12, 2027. In
the event of an issuance of special voting shares,
shareholders have no right of pre-emption. The
Company has the authority to acquire fully paid-
up shares in its own share capital, provided that
such acquisition is made for no consideration.
Further rules governing the acquisition of shares
by the Company in its own share capital are set
out in article 8 of the Articles of Association.
• The Company is not a party to any significant
agreements which will take effect, will be al-
tered or will be terminated upon a change of
control of the Company as a result of a public
offer within the meaning of Section 5:70 of the
Dutch Financial Supervision Act (Wet op het fi-
nancieel toezicht), provided that certain of the
loan agreements entered into by the Company
contain clauses that, as is customary for financ-
142
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ing agreements of similar type, may require
early repayment or termination in the event of a
change of control of the Company.
• The Company did not enter into any agreement
with a Director or employee of the Company pro-
viding for a payment / distribution upon termina-
tion of employment as a result of a public offer
within the meaning of article 5:70 of the Dutch
Financial Supervision Act.
GENERAL MEETING OF SHAREHOLDERS
At least one general meeting of shareholders shall
be held every year, which meeting shall be held with-
in six months after the close of the financial year.
Furthermore, general meetings of sharehold-
ers shall be held in the case referred to in Section
2:108a of the Dutch Civil Code as often as the Board
of Directors, the Chairman or the Chief Executive
Officer deems it necessary to hold them or as other-
wise required by Dutch law, without prejudice to what
has been provided in the next paragraph hereof.
Shareholders solely or jointly representing at
least ten percent (10 percent) of the issued share
capital may request the Board of Directors, in writ-
ing, to call a general meeting of shareholders, stat-
ing the matters to be dealt with.
If the Board of Directors fails to call a meeting,
then such shareholders may, on their application,
be authorized by the interim provisions judge of
the court (voorzieningenrechter van de rechtbank)
to convene a general meeting of shareholders. The
interim
provisions
judge
(voorzieningenrechter
van de rechtbank) shall reject the application if he
is not satisfied that the applicants have previously
requested the Board of Directors in writing, stating
the exact subjects to be discussed, to convene a
general meeting of shareholders.
General meetings of shareholders shall be held in
Amsterdam or Haarlemmermeer (Schiphol Airport),
the Netherlands, and shall be called by the Board
of Directors, the Chairman or the Chief Executive
Officer, in such manner as is required to comply
with the law and the applicable stock exchange reg-
ulations, not later than on the forty-second day prior
to the day of the meeting.
All convocations of general meetings of share-
holders and all announcements, notifications and
communications to shareholders shall be made
by means of an announcement on the Company’s
corporate website and such announcement shall
remain accessible until the relevant general meet-
ing of shareholders. Any communication to be
addressed to the general meeting of shareholders
by virtue of Dutch law or the Articles of Association,
may be either included in the notice, referred to in
the preceding sentence or, to the extent provided for
in such notice, on the Company’s corporate website
and/or in a document made available for inspection
at the office of the Company and such other place(s)
as the Board of Directors shall determine.
Convocations of general meetings of share-
holders may be sent to Shareholders through the
use of an electronic means of communication to
the address provided by such Shareholders to the
Company for this purpose.
The notice shall state the place, date and hour of the
meeting and the agenda of the meeting as well as
the other data required by law.
An item proposed in writing by such number of
Shareholders who, by Dutch law, are entitled to make
such proposal, shall be included in the notice or shall
be announced in a manner similar to the announce-
ment of the notice, provided that the Company has
received the relevant request, including the reasons
for putting the relevant item on the agenda, no later
than the sixtieth day before the day of the meeting.
Pursuant to Dutch law, the board of a listed com-
pany has the power to invoke a cooling-off period of
up to 250 days in the event of (i) a request by one or
more shareholders for consideration of a proposal to
appoint, suspend or dismiss one or more members
of the board, or (ii) when an unsolicited public bid
has been announced or made for the shares of the
listed company. The decision by the board to invoke
the cooling-off period is subject to supervisory board
approval. To invoke the cooling-off period, the request
under i) or the public bid under ii) must in the view of
the board be substantially contrary to the interest of
the listed company and its affiliated enterprises.
The agenda of the annual general meeting of
shareholders shall contain, inter alia, the following
items:
• adoption of the annual report;
• the remuneration report;
• at least every four years after adoption of the re-
muneration policy, the remuneration policy;
• the policy of the Company on additions to re-
serves and on dividends, if any;
• granting of discharge to the Directors in respect
of the performance of their duties in the relevant
financial year;
• the appointment of Directors;
• if applicable, the proposal to pay a dividend;
• if
applicable,
discussion
of
any
substantial
change in the corporate governance structure
of the Company; and
• any matters decided upon by the person(s) con-
vening the meeting and any matters placed on
the agenda with due observance of applicable
Dutch law.
The Board of Directors shall provide the general
meeting of shareholders with all requested informa-
tion, unless this would be contrary to an overriding
interest of the Company. If the Board of Directors
invokes an overriding interest, it must give reasons.
When convening a general meeting of sharehold-
ers, the Board of Directors shall determine that, for
the purpose of Article 19 and Article 20 of the Articles
of Association, persons with the right to vote or
attend meetings shall be considered those persons
who have these rights at the twenty-eighth day prior
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
143
BOARD REPORT
to the day of the meeting (the “Record Date”) and are
registered as such in a register to be designated by
the Board of Directors for such purpose, irrespective
whether they will have these rights at the date of the
meeting. In addition to the Record Date, the notice of
the meeting shall further state the manner in which
shareholders and other parties with meeting rights
may have themselves registered and the manner in
which those rights can be exercised.
The general meeting of shareholders shall be
presided over by the Chairman or, in his absence, by
the person chosen by the Board of Directors to act
as chairman for such meeting.
One of the persons present designated for that
purpose by the chairman of the meeting shall act as
secretary and take minutes of the business trans-
acted. The minutes shall be confirmed by the chair-
man of the meeting and the secretary and signed by
them in witness thereof.
The minutes of the general meeting of share-
holders shall be made available, on request, to the
shareholders no later than three months after the
end of the meeting, after which the shareholders
shall have the opportunity to react to the minutes in
the following three months. The minutes shall then
be adopted in the manner as described in the pre-
ceding paragraph.
If an official notarial record is made of the busi-
ness transacted at the meeting then minutes need
not be drawn up and it shall suffice that the official
notarial record be signed by the notary.
As a prerequisite to attending the meeting and,
to the extent applicable, exercising voting rights, the
shareholders entitled to attend the meeting shall be
obliged to inform the Board of Directors in writing
within the time frame mentioned in the convening
notice. At the latest this notice must be received by
the Board of Directors on the day mentioned in the
convening notice.
Shareholders and those permitted by Dutch law
to attend the general meetings of shareholders may
cause themselves to be represented at any meeting
by a proxy duly authorized in writing, provided they
shall notify the Company in writing of their wish to be
represented at such time and place as shall be stated
in the notice of the meetings. For the avoidance of
doubt, such attorney is also authorized in writing if
the proxy is documented electronically. The Board
of Directors may determine further rules concern-
ing the deposit of the powers of attorney; these shall
be mentioned in the notice of the meeting.
The Company is exempt from the proxy rules
under the Exchange Act.
The chairman of the meeting shall decide on the
admittance to the meeting of persons other than
those who are entitled to attend.
For each general meeting of shareholders, the
Board of Directors may decide that shareholders
shall be entitled to attend, address and exercise
voting rights at such meeting through the use of
electronic means of communication, provided that
shareholders who participate in the meeting are
capable of being identified through the electronic
means of communication and have direct cogni-
zance of the discussions at the meeting and the
exercising of voting rights (if applicable). The Board
of Directors may set requirements for the use of
electronic means of communication and state these
in the convening notice. Furthermore, the Board of
Directors may for each general meeting of share-
holders decide that votes cast by the use of elec-
tronic means of communication prior to the meeting
and received by the Board of Directors shall be con-
sidered to be votes cast at the meeting. Such votes
may not be cast prior to the Record Date. Whether
the provision of the foregoing sentence applies and
the procedure for exercising the rights referred to
in that sentence shall be stated in the notice.
Prior to being allowed admittance to a meeting, a
shareholder and each person entitled to attend the
meeting, or its attorney, shall sign an attendance list,
while stating his name and, to the extent applicable,
the number of votes to which he is entitled. Each
shareholder and other person attending a meeting
by the use of electronic means of communication
and identified in accordance with the above shall
be registered on the attendance list by the Board of
Directors. In the event that it concerns an attorney of
a shareholder or another person entitled to attend
the meeting, the name(s) of the person(s) on whose
behalf the attorney is acting, shall also be stated. The
chairman of the meeting may decide that the atten-
dance list must also be signed by other persons
present at the meeting.
The chairman of the meeting may determine the
time for which shareholders and others entitled to
attend the general meeting of shareholders may
speak if he considers this desirable with a view to
the orderly conduct of the meeting as well as other
procedures that the chairman considers desirable
for the efficient and orderly conduct of the business
of the meeting.
Ferrari applies the one-share-one-vote principle,
meaning that every share (whether common or spe-
cial voting) shall confer the right to cast one vote.
Shares in respect of which Dutch law determines
that no votes may be cast shall be disregarded for the
purposes of determining the proportion of share-
holders voting, present or represented or the pro-
portion of the share capital present or represented.
All resolutions shall be passed with an absolute
majority of the votes validly cast unless otherwise
specified in the Articles of Association. Blank votes
shall not be counted as votes cast.
All votes shall be cast in writing or electronically.
The chairman of the meeting may, however, deter-
mine that voting by raising hands or in another man-
ner shall be permitted.
Voting by acclamation shall be permitted if none
of the shareholders present or represented objects.
No voting rights shall be exercised in the gen-
eral meeting of shareholders for shares owned by
the Company or by a subsidiary of the Company.
Pledgees and usufructuaries of shares owned by
144
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the Company and its subsidiaries shall however not
be excluded from exercising their voting rights, if
the right of pledge or usufruct was created before
the shares were owned by the Company or a subsid-
iary. Neither the Company nor any of its subsidiaries
may exercise voting rights for shares in respect of
which it holds a right of pledge or usufruct.
Without prejudice to the Articles of Association, the
Company shall determine for each resolution passed:
• the number of shares on which valid votes have
been cast;
• the percentage that the number of shares as re-
ferred to under a. represents in the issued share
capital;
• the aggregate number of votes validly cast; and
• the aggregate number of votes cast in favor of
and against a resolution, as well as the number
of abstentions.
ISSUANCE OF SHARES
The general meeting of shareholders or alternatively
the Board of Directors, if it has been designated to do
so by the general meeting of shareholders, shall have
authority to resolve on any issuance of shares and
rights to subscribe for shares. The general meeting
of shareholders shall, for as long as any such desig-
nation of the Board of Directors for this purpose is
in force, no longer have authority to decide on the is-
suance of shares and rights to subscribe for shares.
For a period of five years from January 2, 2016 the
Board of Directors has been irrevocably authorized
to issue shares and rights to subscribe for shares
up to the maximum aggregate amount of shares as
provided for in the company’s authorized share cap-
ital as set out in Article 4.1 and 6.1 of the Articles of
Association, as amended from time to time.
The general meeting of shareholders or the Board
of Directors if so designated in accordance with the
Articles of Association, shall decide on the price and
the further terms and conditions of issuance, with
due observance of what has been provided in relation
thereto in Dutch law and the Articles of Association.
If the Board of Directors is designated to have
authority to decide on the issuance of shares or
rights to subscribe for shares, such designation
shall specify the class of shares and the maximum
number of shares or rights to subscribe for shares
that can be issued under such designation. When
making such designation the duration thereof,
which shall not be for more than five years, shall be
resolved upon at the same time. The designation
may be extended from time to time for periods not
exceeding five years. The designation may not be
withdrawn unless otherwise provided in the resolu-
tion in which the designation is made.
Pursuant to the resolution of the Annual General
Meeting held on April 17, 2024, the Board of Directors
has been authorized to issue common shares in
the capital of the Company and to grant rights to
subscribe for common shares in the capital of the
Company. This authorization is limited in respect of
common shares to 10 percent of the issued com-
mon shares for general corporate purposes as of
the date of the 2024 Annual General Meeting (i.e. April
17, 2024), which can be used for any and all purposes
necessary in the opinion of the Board of Directors.
The authorization has been granted for a period of
18 months starting from the date of the 2024 Annual
General Meeting of Shareholders on April 17, 2024
up to and including October 16, 2025. The Board of
Directors has also been designated for the same
period as the authorized body to limit or exclude the
rights of pre-emption of shareholders in connection
with the authority of the Board of Directors to issue
common shares and grant rights to subscribe for
common shares as referred to above. Pursuant to
the resolution of the Annual General Meeting held on
April 13, 2022, the Board of Directors has been fur-
ther authorized to issue special voting shares in the
capital of the Company and to grant rights to sub-
scribe for special voting shares in the capital of the
Company. This authorization is limited in respect of
special voting shares to 10 percent of the maximum
aggregate amount of special voting shares as pro-
vided for in the Company’s authorized share capital.
The authorization has been granted for a period of
5 years starting from the date of the 2022 Annual
General Meeting of Shareholders on April 13, 2022
up to and including April 12, 2027.
Payment for shares shall be made in cash unless
another form of consideration has been agreed.
Payment in a currency other than Euro may only be
made with the consent of the Company.
The Board of Directors has also been designated as
the authorized body to limit or exclude the rights of
pre-emption of shareholders in connection with the
authority of the Board of Directors to issue common
shares and grant rights to subscribe for common
shares as referred to above.
In the event of an issuance of common shares
every holder of common shares shall have a right of
pre-emption with regard to the common shares or
rights to subscribe for common shares to be issued
in proportion to the aggregate nominal value of his
common shares, provided however that no such
right of pre-emption shall exist in respect of shares or
rights to subscribe for common shares to be issued
to employees of the Company or of a group company
pursuant to any option plan of the Company.
A shareholder shall have no right of pre-emption
for shares that are issued against a non-cash con-
tribution.
In the event of an issuance of special voting
shares to qualifying shareholders, shareholders
shall not have any right of pre-emption.
The general meeting of shareholders or the
Board of Directors, as the case may be, shall decide
when passing the resolution to issue shares or
rights to subscribe for shares in which manner the
shares shall be issued and, to the extent that rights of
pre-emption apply, within what period those rights
may be exercised.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
145
BOARD REPORT
FERRARI LEADERSHIP TEAM
On certain key operational matters, the CEO is supported by the FLT,
which is responsible for reviewing the operating performance of the
business, collaborating on certain operational matters, supporting the
Chief Executive Officer with his tasks, and executing decisions of the
Board of Directors and the day-to-day management of the Company,
primarily as it relates to the operational management. Set forth below
are the names, year of birth and position of each of the members of the
FLT of Ferrari. Unless otherwise indicated, the business address of each
person listed below will be c/o Ferrari, Via Abetone Inferiore n. 4, I-41053
Maranello (MO), Italy.
Name
Year of Birth
Position
John Elkann
1976
Executive Chairman and Executive Director
Benedetto Vigna
1969
Chief Executive Officer
Antonio Picca Piccon
1964
Chief Financial Officer
Davide Abate
1984
Chief Technologies and Infrastructures Officer
Andrea Antichi
1979
Chief Manufacturing Officer
Michele Antoniazzi
1969
Chief Human Resources Officer
Carlo Daneo
1968
General Counsel
Alfonso Fuggetta
1958
Chief Digital Transformation Officer
Gianmaria Fulgenzi
1969
Chief Product Development Officer
Enrico Galliera
1966
Chief Marketing and Commercial Officer
Lorenzo Giorgetti
1970
Chief Racing Revenue Officer
Ernesto Lasalandra
1972
Chief Research & Development Officer
Maria Carla Liuni
1968
Chief Brand Officer
Marco Lovati
1972
Chief Internal Audit, Risk and Compliance Officer
Flavio Manzoni
1965
Chief Design Officer
Francesca Montini
1979
Chief Communications Officer
Angelo Pesci
1974
Chief Purchasing & Quality Officer
Frédéric Vasseur
1968
Scuderia Ferrari Team Principal & General Manager
All FLT members are executive officers.
Summary biographies for the current members of
the FLT are included below:
JOHN ELKANN
See the “—Board of Directors” section above.
BENEDETTO VIGNA
See the “—Board of Directors” section above.
ANTONIO PICCA PICCON
Mr. Antonio Picca Piccon is Chief Financial Officer
since July 2018. Before joining Ferrari, he held the
position of CFO in Ariston Thermo Group, includ-
ing responsibilities for Legal and Corporate Affairs
and ICT, since November 2014. Prior to such assign-
ment he spent 15 years within Fiat Group and FCA,
where he covered several senior roles in finance
and financial services, including CFO of Iveco Group,
CEO of FGA Capital (then FCA Bank and now CA Auto
Bank) and Group Treasurer and Head of Financial
Services for FCA. He started his career in banking,
in various positions within Sanpaolo IMI group. He
also served as a member of the Board of Directors
of Ferrari, Fiat Group Automobiles, Magneti Marelli,
Maserati and Teksid. Mr. Picca Piccon graduated in
Economics and Business Administration from the
University of Turin and holds an MPhil in Economics
from the University of Cambridge.
DAVIDE ABATE
Mr. Davide Abate is Chief Technologies and Infra-
structures Officer since January 2022. Previously
he held the position of Head of Technologies at
Ferrari since October 2020, and various manageri-
146
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
al roles in the manufacturing area such as Head of
Prototype Construction from 2017 to 2020. Prior to
joining Ferrari in 2012, he covered technical mana-
gerial roles at Ducati Motor Holding. Mr. Abate holds
the Ferrari Corporate Executive MBA from the
Bologna Business School and a master in Process
Engineering at Bocconi School of Management, as
well as a masters’ degree in Automotive Engineering
from the Turin Polytechnic.
ANDREA ANTICHI
Mr.
Andrea
Antichi
was
appointed
Chief
Manufacturing Officer in January 2022. Previously
he was Head of Vehicle at Ferrari since June 2018.
During his career he covered various managerial
roles at Ferrari in the manufacturing area such as
Head of Engine Assembly and Machining from 2014
to 2018 and Engine Assembly and Machining Process
Engineering Manager from 2008 to 2013. Prior to join-
ing Ferrari in 2006, he held technical roles in Piaggio
and researcher in Computational Biomechanics at
Istituti Ortopedici Rizzoli. Mr. Antichi holds the Ferrari
Corporate Executive MBA from the Bologna Business
School, as well as a masters’ degree in Mechanical
Engineering from the University of Pisa.
MICHELE ANTONIAZZI
Mr. Michele Antoniazzi is Chief Human Resources
Officer since April 2016. Before joining Ferrari, he
held several senior roles in Magneti Marelli, becom-
ing the Human Resources Director of the Automotive
Lighting business line in 2012. Prior to that experi-
ence he was the Human Resources Director of the
Suspension Systems business line from 2009 to
2012 and the Head of Organizational Development
for the Sector Magneti Marelli from 2006 to 2012.
He graduated from the University of Padova with a
degree in Industrial and Organizational Psychology.
CARLO DANEO
Mr. Carlo Daneo was appointed as our General
Counsel in July 2015, as a member of the Board of
Directors of Ferrari North America Inc. in February
2017, as a member of the Supervisory Body of
Ferrari S.p.A. in August 2015 and Data Protection
Officer of the Ferrari Group in February 2018. Prior
to joining Ferrari, he held several senior positions in
the FCA legal area, including the role of Senior Vice
President and Legal Counsel in Finance and Financial
Services of FCA from 2008 until 2015 and the role of
General Counsel in Fiat Chrysler Finance S.p.A. (pre-
viously Fiat Finance S.p.A.) from 2003 to 2015. He
started his career in 1995 with a work experience at
the United Nations at the International Trade Center
Unctad / WTO in Geneva and since 1996 in the le-
gal profession in law firms with experience in the
Corporate, Finance and Capital Markets areas in pri-
mary international law firms in Italy and abroad until
2003. He graduated in Law at the University of Turin,
did a master’s degree organized by the University
Institute of European Studies in international law at
the International Labour Organization of Turin and
obtained the title of Lawyer.
ALFONSO FUGGETTA
Mr. Alfonso Fuggetta was appointed Chief Digital
Transformation Officer of Ferrari in November
2024. After an initial role in the world of consultan-
cy, Fuggetta joined Cefriel as a researcher in 1988,
where he took on increasingly senior positions un-
til becoming CEO and scientific director from 2003
to 2024. Cefriel is a digital innovation centre com-
prising around 150 professionals in addition to the
Politecnico di Milano, three other universities, 17
multinational companies and the Lombardy Region.
In 1992 he was appointed associate professor at the
Politecnico di Milano, where in 2000 he assumed the
role of full professor of computer science. Fuggetta
has also been visiting professor at NTNU (Trondheim,
Norway), University of Colorado, Boulder (USA)
and the Institute for Software Research, University
of California, Irvine (USA). He was program co-
chair of the International Conference on Software
Engineering (ICSE 1997, Boston) and a member of
the editorial board of ACM TOSEM, one of the most
important scientific journals in the sector. In 2023,
he was included in the top 2% of researchers in the
world ranking drawn up by Stanford University and
Elsevier. Fuggetta completed a degree in electronic
engineering at the Politecnico di Milano in 1982.
GIANMARIA FULGENZI
Mr. Gianmaria Fulgenzi is Chief Product Development
Officer since January 2022. Previously he was Head
of GeS Supply Chain of Ferrari since March 2019.
He also worked in the product development and
manufacturing area, as Head of Rear Engine Car
Platform from 2015 to 2019 and Head of Powertrain
Production from 2008 to 2010. Prior to joining
Ferrari in 2002, he covered technical managerial
roles at PiaggioAero Industries. Mr. Fulgenzi holds a
master in Management from the London Business
School, as well as a masters’ degree in Aerospace
Engineering from the Turin Polytechnic.
ENRICO GALLIERA
Mr. Enrico Galliera was appointed as our Chief
Marketing and Commercial Officer in April 2010.
From 1990 to 2010 he worked for Barilla S.p.A,
where he held multiple positions, ultimately becom-
ing Europe and export market unit director. During
his time at Barilla S.p.A., Mr. Galliera also served as
director of customer business development for
Europe, general manager for South West Europe
and trade marketing director for Italy. Mr. Galliera
holds a degree in economics and political science
from the University of Parma.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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LORENZO GIORGETTI
Mr. Lorenzo Giorgetti was appointed Chief Racing
Revenue Officer in February 2023. His career has
seen him gain extensive experience in growing
businesses across sports clubs, the media and the
world of luxury. Prior to joining Ferrari, he was Chief
Commercial Officer at AC Milan; he has also been
Head of Licensing for major sporting events, such
as the Turin 2006 Winter Olympic Games and Milan
Cortina 2026. From 2007 to 2017, he led the com-
mercial management of RCS Media Group’s sports
division, where he was also CEO of the UAE sport
branch and is currently a member of the board of
the Global Esports Federation. He graduated in en-
gineering from the Politecnico di Milano and has an
MBA from SDA Bocconi.
ERNESTO LASALANDRA
Mr.
Ernesto
Lasalandra
is
Chief
Research
&
Development Officer since January 2022. He joined
Ferrari from his previous role as Group VP R&D
General Manager in STMicroelectronics, where over
the past decades he covered roles of increasing re-
sponsibilities in Product Development and R&D. Mr.
Lasalandra holds a degree in Electronic Engineering
from University of Pavia.
MARIA CARLA LIUNI
Ms. Maria Carla Liuni joined Ferrari as Chief Brand
Officer in September 2022. Previously, she was Chief
Marketing Officer at Pandora, where she played a
key part in relaunching the company and boosting
its desirability. She has also led Bulgari’s marketing
division and global communications. In addition, she
spent almost 20 years at Procter & Gamble, where
she was General Manager of the Prestige division
which includes perfume, makeup and skincare for
brands such as Dolce & Gabbana, Gucci and Hugo
Boss. This encompassed multiple roles including
Regional Leader for the Asia-Pacific region and lead-
ing on marketing, communication and product devel-
opment for the entire portfolio, working closely with
the fashion houses. She graduated in economics at
Rome’s Luiss University and has a master’s degree in
marketing from the IPSOA business school in Milan.
MARCO LOVATI
Mr. Marco Lovati is Chief Internal Audit, Risk and
Compliance Officer since December 2023, Chief
Internal Audit Officer since April 2015 and a member
of the Supervisory Body of Ferrari S.p.A. since July
2014. Prior to such assignment he spent 14 years in
the Internal Audit and Compliance department of Fiat
Group and FCA, where he covered several senior
positions including the role of “Financial & Insurance
Companies, Luxury Cars” and “Automotive Europe &
Financial JV Companies” Head of Audit, also serving
as member of the Supervisory Body of different Fiat
Group and FCA legal entities. Mr. Marco Lovati gradu-
ated in Economics and Business Administration from
the University of Turin and holds an MBA in Finance
jointly organized by the University of Turin and the
Italian Association of Finance Directors (ANDAF).
FLAVIO MANZONI
Mr. Flavio Manzoni was appointed as our Chief Design
Officer in January 2010. From 2007 to 2010 he was
Director of Creative Design at the Volkswagen Group
where he was involved in designing most of the
Skoda, Bentley, Bugatti and Volkswagen recent cars
as well as redefining the aesthetic philosophy of these
brands. From 2001 to 2006, he worked at Fiat Group
as Head of Design for Lancia, Fiat and LCV. He has also
held design positions at Lancia and Seat. Mr. Manzoni
holds a degree in architecture with a thesis in indus-
trial design from the University of Florence. On June
28, 2019, at the University of Sassari, he was awarded
an honorary master’s degree in “Humanities, Modern
Philology and Cultural Industry”.
FRANCESCA MONTINI
Ms. Francesca Montini is Chief Communications
Officer since April 2023. She joined Ferrari in
January 2018 as Head of Brand and Corporate
Communications. Over her career, Ms. Montini has
built a strong international profile in corporate and
brand communications working across multiple
markets (Europe, the Middle East and the U.S.A.)
and a variety of powerful global brands, including
Nike, Nokia, Ford, Jeep and Ferrari. Ms. Montini holds
a Masters degree in Corporate Communications
from University of Rome, La Sapienza and the
Ferrari Corporate Executive MBA from the Bologna
Business School.
ANGELO PESCI
Mr. Angelo Pesci is Chief Purchasing & Quality
Officer since January 2022. Angelo Pesci joined
Ferrari from STMicroelectronics, where over the
past decades he covered roles of increasing re-
sponsibilities in Financial Planning, Supply Chain
and Product Planning, Services and Operations.
Mr. Pesci holds a Master in Business Administration
from SDA Bocconi, as well as a masters’ degree in
Physics from University of Trieste.
FRÉDÉRIC VASSEUR
Mr. Frédéric Vasseur was born in Draveil, France on
May 28, 1968. In 1995, he graduated in Aeronautical
Engineering
at
ESTACA
(École
Supérieure
des
Techniques
Aéronautiques
et
de
Construction
Automobile) in Paris. In 1992, while still studying, he
established RPM, preparing Formula 3 engines for
Renault. In 1996, he set up the ASM team, racing in
Formula 3. He ran the operation up to 2015, win-
ning various titles including the French one in 1998
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
with David Saelens at the wheel, going on to win the
European title four times between 2004 and 2007,
with Jamie Green, Lewis Hamilton, Paul Di Resta
and Romain Grosjean. In 2004, he created a second
team, ART Grand Prix, winning eighth teams’ cham-
pionships across GP2 and GP3 and eleven drivers’
titles including clinching the 2016 GP3 crown with
Charles Leclerc. An enquiring mind and a willingness
to explore new avenues led Vasseur to set up AOTech
in 2010, a company specialising in driving simula-
tors and CFD design. Two years later, along came
Spark Racing Technology, dealing in the design and
manufacture of hybrid and electrical systems. The
company secured the contract to supply Formula
E chassis, when the category for fully electric sin-
gle-seaters was first set up by the FIA (Federation
Internationale Automobile) in 2014. Frédéric first ap-
peared in the Formula 1 paddock in 2016 as Renault
Team Principal. The following year, he moved on to
become Managing Director of the Sauber Group,
as well as Team Principal of the Alfa Romeo Sauber
F1 Team, which morphed into Alfa Romeo Racing in
2019, running Ferrari power units. After the 2022
season, he was asked to take on the role of Scuderia
Ferrari Team Principal & General Manager, starting
in his new position on January 9, 2023.
CORPORATE OFFICES
The Company is incorporated under the laws of the
Netherlands. It has its official seat in Amsterdam, the
Netherlands, and the place of effective management
of the Company is Via Abetone Inferiore n. 4 I-41053
Maranello (MO) Italy.
The business address of the Board of Directors
and the senior managers is Via Abetone Inferiore
n. 4 I-41053 Maranello (MO) Italy.
The Company is registered at the Dutch trade
register under number 64060977.
The Netherlands is the Company’s home mem-
ber state for the purposes of the EU Transparency
Directive (Directive 2004/109/EC, as amended).
INTERNAL CONTROL SYSTEM
The Company has in place an internal control sys-
tem (the “System”), based on the model provided by
the COSO Framework (Committee of Sponsoring
Organizations of the Treadway Commission Report
– Enterprise Risk Management model) and the prin-
ciples of the Dutch Corporate Governance Code,
which consists of a set of policies, procedures and
organizational structures aimed at identifying, mea-
suring, managing and monitoring the principal risks
to which the Company is exposed. The System is inte-
grated within the organizational and corporate gov-
ernance framework adopted by the Company and
contributes to the protection of corporate assets, as
well as to ensuring the efficiency and effectiveness
of business processes, reliability of financial infor-
mation and compliance with laws, regulations, the
Articles of Association and internal procedures.
The System, which has been developed on the basis
of international best practices, relies on the so called
“Three Levels of Controls Model” as referred to
and outlined in the “Risk Management Process and
Internal Control Systems” section of this Report.
PRINCIPAL CHARACTERISTICS OF THE INTERNAL
CONTROL SYSTEM AND INTERNAL CONTROL
OVER FINANCIAL REPORTING
The Company has in place a system of risk man-
agement and internal control over financial report-
ing based on the model provided by the COSO
Framework, according to which the internal control
system is defined as a set of rules, procedures and
tools designed to provide reasonable assurance of
the achievement of corporate objectives.
In relation to the financial reporting process,
reliability, accuracy, completeness and timeliness
of the information contribute to the achievement of
such corporate objectives. Risk management is an
integral part of the internal control system. A peri-
odic evaluation of the system of internal control over
financial reporting is designed to ensure the over-
all effectiveness of the components of the COSO
Framework (control environment, risk assessment,
control activities, information and communication,
and monitoring) in achieving those objectives.
The Company has a system of administrative
and accounting procedures in place that ensure
a high degree of reliability in the system of internal
control over financial reporting.
The approach adopted by the Company for the
evaluation, monitoring and continuous updating of
the system of internal control over financial report-
ing, is based on a “top-down, risk-based” process
consistent with the COSO Framework. This enables
focus on areas of higher risk and/or materiality,
where there is risk of significant errors, including
those attributable to fraud, in the elements of the
financial statements and related documents. The
key components of the process are:
• identification and evaluation of the source and
probability of material errors in elements of fi-
nancial reporting;
• assessment of the adequacy of key controls in
enabling ex-ante or ex-post identification of po-
tential misstatements in elements of financial re-
porting; and
• verification of the operating effectiveness of
controls based on the assessment of the risk of
misstatement in financial reporting, with testing
focused on areas of higher risk.
Identification and evaluation of the risk of misstate-
ments which could have material effects on financial
reporting is carried out through a risk assessment
process that uses a top-down approach to identify
the organizational entities, processes and the relat-
ed accounts, in addition to specific activities, which
could potentially generate significant errors. Under
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
149
BOARD REPORT
the methodology adopted by the Company, risks and
related controls are associated with the accounting
and business processes upon which accounting in-
formation is based.
Significant risks identified through the assess-
ment process require definition and evaluation of
key controls that address those risks, thereby mit-
igating the possibility that financial reporting will
contain any material misstatements.
In accordance with international best practices,
the Group has two principal types of control in place:
• controls that operate at Group or subsidiary lev-
el, such as delegation of authorities and respon-
sibilities, separation of duties, and assignment
of access rights to information technology sys-
tems; and
• controls that operate at process level, such as
authorizations, reconciliations, verification of
consistencies, etc. This category includes con-
trols for operating processes, controls for finan-
cial closing processes and cross-sector controls
carried out by captive service providers. These
controls can be preventive (i.e., designed to pre-
vent errors or fraud that could result in mis-
statements in financial reporting) or detective
(i.e., designed to reveal errors or fraud that have
already occurred). They may also be classified as
manual or automatic, such as application-based
controls relating to the technical characteristics
and configuration of information technology
systems supporting business activities.
An assessment of the design and operating effec-
tiveness of key controls is carried out through tests
performed by the Internal Audit department, both
at group and subsidiary level, using sampling tech-
niques recognized as best practices internationally.
The assessment of the controls may require the
definition of compensating controls and plans for
remediation and improvement. The results of moni-
toring are subject to periodic review by the manager
responsible for the Company’s financial reporting
and communicated by him to senior management
and to the Audit Committee (which in turn reports to
the Board of Directors).
Our risk management and internal control sys-
tem includes a department tasked with coordinating
the system as a whole: the Internal Audit, Risk and
Compliance Department, which reports directly to
the CEO and works to ensure, in an integrated man-
ner, that business operations are conducted with
transparency, in the interests of shareholders and
all stakeholders.
For additional information relating to the Internal
Audit, Risk and Compliance Department see the “Risk
Management Process and Internal Control System—
Ferrari’s Organization of the Internal Control and
Risk Management System”.
The Internal Control Committee meets at least
on a quarterly basis and is composed of the CFO
(Chairman), the General Counsel, the Chief Digital
Transformation
Officer
(formerly:
Chief
Digital
& Data Officer) the Chief Internal Audit, Risk and
Compliance Officer, the Chief Human Resources
Officer, the Chief Accounting Officer, Investor
Relations and Sustainability, Group SOX, Enterprise
Risk Management, Compliance, Tax Risk Manager
and Enterprise Cybersecurity.
CODE OF CONDUCT AND COMPANY POLICIES
CODE OF CONDUCT
We have adopted, at a group level, a Code of Conduct
which applies to all of our employees, including our
principal executive, principal financial and principal
accounting officers. It also applies to the Company’s
subsidiaries and other individuals or companies
that act in the name and on behalf of the Company.
Our Code of Conduct is available on our website at
https://cdn.ferrari.com/cms/network/media/pdf/
codice_condotta_ferrari_eng_def.pdf.
Ferrari’s Code of Conduct was updated in
February 2023, also strengthening the reference
to ESG aspects, with the approval by the Board of
Directors of Ferrari N.V.
Should any further amendments, or should any
waiver be granted under, the Code of Conduct, this
will be disclosed in accordance with the applicable
rules and regulations.
The Code of Conduct represents a set of val-
ues recognized, adhered to and promoted by the
Company which understands that conduct based on
the principles of diligence, integrity and fairness is an
important driver of social and economic development.
The Code of Conduct is a pillar of the gover-
nance system, which regulates the decision-making
processes and operating approach of the Company
and its employees in the interests of sustainable
long-term value creation while taking into account
the impact the actions have on people and the envi-
ronment and to that end weighs the stakeholder
interests that are relevant in this context. Explicit
reference is made to the UN’s Universal Declaration
on Human Rights, the principal Conventions of
the International Labor Organization (ILO) and the
OECD
Guidelines
for
Multinational
Enterprises.
Furthermore, the Code of Conduct provides for
the guiding principles relating to: health and safety,
business ethics and anticorruption, antitrust, human
resource management and the central role of the
individual and the respect of human rights, personal
data privacy, conflicts of interest, the importance of
the Community, of the environment and, in general
terms, of sustainability.
The Company promotes adoption of the Code
of Conduct as a best practice standard of business
conduct by partners, suppliers, agents, dealers and
any other business partner. In fact, the Company’s
contracts worldwide include specific clauses relat-
ing to recognition and adherence to the principles
underlying the Code of Conduct and related guide-
lines, as well as compliance with local regulations.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The Company closely monitors the effectiveness
of and compliance with the Code of Conduct, with
the help of the Group Compliance department.
Violations of the Code of Conduct are usually deter-
mined through, among other things: periodic activi-
ties of compliance monitoring carried out by Group
Compliance department, periodic and/or specific
activities carried out by the Internal Audit depart-
ment of the Group; the whistleblowing reports and
management procedures and checks forming part
of the standard operating procedures. Periodic re-
porting is provided to the Chairman and CEO as well
as to the Audit Committee. For all Code of Conduct
violations, the disciplinary measures taken are com-
mensurate with the seriousness of the case and
comply with local legislation. The relevant corporate
departments are notified of violations, irrespective
of whether criminal action is taken by the authorities.
The Internal Audit department of the Group should
inform the Board of Directors and the chairman of
the Audit Committee without delay if, during the per-
formance of its duties, it discovers or suspects an
instance of material misconduct or irregularity. If
the actual or suspected material misconduct or ir-
regularity pertains to the functioning of one or more
Directors, the Internal Audit department should re-
port this to the Chairman.
More detailed information about the Code of
Conduct, among which compliance therewith in
2024, is included in the Sustainability Statement sec-
tion of our 2024 Annual Report.
INSIDER TRADING POLICY
Since 2016, the Company has adopted an insider
trading policy (the “Insider Trading Policy”) govern-
ing, among other things, the purchase, sale and oth-
er dispositions of securities issued by the Company
by all Directors, officers and employees of the Group
and designed to promote compliance with appli-
cable insider trading laws, rules and regulations as
well as with the applicable listing standards.
A copy of the Insider Trading Policy can be found
under Exhibit 11.1 to this Form 20-F.
CYBERSECURITY
CYBERSECURITY RISK MANAGEMENT
AND STRATEGY
Ferrari recognizes the importance of assessing,
identifying, and managing material risks associated
with cybersecurity threats, as such term is defined
in Item 106(a) of Regulation S-K. These risks include,
among other things: operational risks, intellectual
property theft, fraud, extortion, harm to employees
or customers and violation of data privacy or secu-
rity laws. The identification, assessment and man-
agement of cybersecurity risk is integrated into our
Enterprise Risk Management process, which in turn
operates within the overall Ferrari Internal Control
and Risk Management System. Cybersecurity risks
related to our business, technical operations, pri-
vacy and compliance issues including any Ferrari
confidential information about vehicles, services,
projects and all non-public activities related to
Racing Department, employees, clients and fans
personal data are identified and addressed through
a multi-faceted approach, through e.g. red-teaming,
pentesting, friendly phishing and 3rd party-man-
aged cyber security posture analysis. Dealers’ and
suppliers’ cybersecurity risks are evaluated in a sim-
ilar way, as further explained below.
To defend, detect and respond to cybersecurity
incidents, we, among other things, conduct proac-
tive privacy and cybersecurity reviews of systems
and applications, including yearly attack exercises
to test our cybersecurity posture, audit applicable
data policies, perform penetration testing using
external third-party tools, techniques and security
service providers to test our posture, operate a bug
bounty program to encourage proactive vulnerabil-
ity reporting. We also conduct continuous training
to employees with in class sessions, online training,
at least monthly “security pills” (i.e., email to all users
to inform them e.g. of running phishing, campaigns,
cyberattacks against suppliers, or stories about
cybersecurity events, with the goal of improving
end user awareness), friendly phishing campaigns
and dedicated one-to-one support and advisory for
any cybersecurity question or doubt. Furthermore,
our team monitors emerging laws and regulations
related to data protection and information security
(including Operational Technology (OT) and vehicles)
and implements appropriate changes and collab-
orates with technical and business stakeholders
across our business units to further analyze the risk
to the company, and define detection, mitigation and
remediation strategies.
Once identified, cybersecurity events and data
incidents are collected, evaluated, ranked by sever-
ity and prioritized for response and remediation,
including based on materiality, operational, busi-
ness and privacy impact. Our incident response and
breach management processes have four overar-
ching and interconnected stages: 1) preparation for
a cybersecurity incident, 2) detection and analysis of
a security incident, 3) containment, eradication and
recovery, and 4) post-incident analysis.
To protect its shareholders and stakeholders,
starting from 2019 Ferrari has implemented a cyber
insurance program that covers damages directly
caused by hacking attacks, system failures and
other cybersecurity events (loss of profit, costs and
expenses, restoration costs), as well as damages
incurred by third parties following a breach of secu-
rity and/or confidentiality of personal data.
THIRD PARTY ENGAGEMENT
As part of our risk management and strategies de-
scribed above, we regularly engage external audi-
tors and consultants to assess our compliance with
applicable practices and standards, including for
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
UNECE R155, SOX, NYDFS500 certification for cy-
bersecurity of financial services as well as for assis-
tance with periodic security assessments such as
penetration testing, continuous and automatic vul-
nerability assessment, email and web filtering, end-
point and infrastructure protection, data loss pre-
vention, authentication systems, and advisory and
support on certain cybersecurity enhancements.
Worldwide primary cybersecurity companies are
frequently involved. These partnerships enable us
to leverage specialized knowledge, insights and
training, ensuring our cybersecurity strategies and
processes remain aligned with fast evolving risk
scenarios and new technologies.
SUPPLIERS’ SECURITY PROFILE
To oversee and identify cybersecurity threats asso-
ciated with third parties, Ferrari has implemented
an evaluation process of suppliers’ security profile.
Starting from the initial supplier evaluation, cyberse-
curity posture is evaluated through a specific ques-
tionnaire which contains different requirements
depending on the type of goods/services provid-
ed. Depending on the outcome of the question-
naire, certain suppliers are audited in person by the
Ferrari Internal Audit Department, which analyzes a
supplier’s main risks and, together with the supplier,
defines (and monitors) action plans to close or re-
duce the identified security gaps. At the end of the
evaluation process, a cybersecurity maturity rank-
ing is assigned, verified with a risk-based approach.
The resulting risk profile is among the criteria used
to assign the bid.
Suppliers
are
formally
required
to
inform
Ferrari, through a dedicated channel, of cyber inci-
dents they suffer. Ferrari also hires additional cyber-
security services to be promptly and independently
informed of suppliers’ cyber incidents and trigger
the incident management process.
DEALERS’ SECURITY PROFILE
Dealers undergo a cybersecurity evaluation and as-
sessment similar to that described above for suppliers,
albeit using a different cybersecurity questionnaire.
Any final action plans are agreed with the dealership
management. Same as suppliers, dealers are re-
quired to inform Ferrari Enterprise Cybersecurity in
case of cyberincidents, and are subject to a monitor-
ing process performed by Internal Audit.
CYBERSECURITY GOVERNANCE & REPORTING
Cybersecurity management is governed by the fol-
lowing departments and committees:
• Enterprise Cybersecurity: the department is re-
sponsible for the cybersecurity of the Group, in-
cluding information technology (IT), operational
technology (OT) and vehicle cybersecurity. The
Head of Enterprise Cybersecurity, who joined
Ferrari in 2019, has a degree in legal informat-
ics, an Executive MBA and over 10 years of expe-
rience in primary companies with a multi-year
role also as Data Privacy Officer. The Head of
Enterprise Cybersecurity reports to the Chief
Digital Transformation Officer (CDTO) and also
has a direct link to the CEO. For additional informa-
tion relating to the CDTO’s qualifications see the
“—Ferrari Leadership Team” within this section.
• Internal Control Committee (ICC): it meets peri-
odically to monitor, evaluate and discuss Group
enterprise cross-risks and approve related initia-
tives, including cybersecurity risks, status on ad-
dressing and/or mitigating those risks, cyberse-
curity and data privacy incidents (if any) and status
on cybersecurity initiatives. It is composed of ex-
ecutives and C - level executives representing the
Enterprise Cybersecurity, Digital Transformation,
Legal, Finance, Internal Audit, Compliance and Risk
(which includes Enterprise Risk Management) and
Human Resources departments.
• Cyber Crisis Committee (CCC): it comes into
play in case of significant cyber incidents. It is
composed by Enterprise Cybersecurity de-
partments and C-level executives represent-
ing the Digital Transformation, Legal, Finance,
Communication, and Compliance departments
as well as, depending on the individual case, the
relevant internal business functions (e.g. Sales,
Purchasing, Design and Racing).
• Audit Committee: it is the Committee appointed by
Board of Directors to oversee the implementation
and maintenance of an adequate risk manage-
ment and internal control system, receives regular
reporting on most relevant risks and reviews and
monitors the effectiveness of controls on these
risks, including cyber risks. It invites the Head of
Enterprise Cybersecurity and CDTO to report and
discuss about cybersecurity at a committee meet-
ing at least once a year. With the same frequency
the Board of Directors is informed of cyberse-
curity strategy, governance and management.
Further information about the Audit Committee is
included in the Corporate Governance section.
In addition to the previous committees, the CEO is
directly and immediately informed of any material
incidents and has direct contact with the Head of
Enterprise Cybersecurity at least monthly.
CYBER INCIDENTS
Ferrari considers as cyber incident any event that
negatively affects the confidentiality, integrity, and/
or availability (CIA) at an organization in a way that
impacts or could significantly impact the business.
Among the cyber incidents tracked by Ferrari in
2024 (e.g. PC thefts, smartphone losses, fraud or
impersonation attempts, hacking attempts, viruses,
insiders, human errors, hacked suppliers or dealers,
etc.) none has been considered critical or has signifi-
cantly impacted the business.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
153
BOARD REPORT
DIVERSITY POLICY
The Board of Directors adopted an updated diver-
sity policy for the Board of Directors (the “Diversity
Policy”) effective as of September 14, 2023, since the
Company believes that diversity in the composition
of the Board of Directors in terms of age, sex, gen-
der, nationality, expertise, experience, competen-
cies, or other personal qualities, and cultural or oth-
er background is an important mean of promoting
debate, balanced decision making and independent
actions of the Board of Directors.
The Diversity Policy gives weight to the follow-
ing diversity factors in Board of Directors compo-
sition age, sex, gender, nationality, expertise, expe-
rience, competencies, or other personal qualities,
and professional cultural or other background. The
Company considers each of these aspects key driv-
ers to support the abovementioned goals and to
achieve sufficient diversity of views and the exper-
tise needed for a proper understanding of current
affairs and longer-term risks and opportunities
related to the Company’s business. The Board of
Directors and its ESG Committee consider such fac-
tors when evaluating nominees for election to the
Board of Directors and during the annual perfor-
mance assessment process.
GENDER DIVERSITY TARGETS
a) Board of Directors diversity targets
The Company has set the following concrete targets
to be achieved by 2027: (a) at least 30% of the seats of
the Board of Directors to be occupied by women and
at least 30% by men; (b) at least 33% of the seats of the
non-executive members of the Board of Directors to
be occupied by women and at least 33% by men; (c) the
nationality of the members of the Board of Directors
to be reasonably consistent with the geographic
presence of the Company’s business, and no nation-
ality should count for more than 60% of the members
of the Board of Directors; and (d) diversity in the age
of the members of the Board of Directors by having
one or more members of the Board of Directors aged
under 50 at the day of their nomination; provided that,
in the candidate selection process, rules and gener-
ally accepted principles of non-discrimination (on
grounds such as ethnic origin, race, disability or sex-
ual orientation) will be taken into account. Given the
current composition of the Board of the Company in
one-tier system, composed only by two (2) executive
directors (of the same gender), the Company has de-
cided not to set a specific gender diversity target for
executive directors in the Policy while targets have
been set for the Board of Directors as a whole.
To
ensure
its
correct
implementation,
the
Diversity Policy will be taken into account in the nomi-
nation of executive Directors, and in the adoption of a
profile for non-executive Directors as well as in nom-
inating and recommending non-executive Directors.
As of December 31, 2024, the Company has
achieved (i) the gender targets of the non-executive
members of the Board of Directors, (ii) the target on
nationality and (iii) the age target. Due to the appoint-
ment of one extra male to the Board of Directors com-
pared to 2023, the percentage of women in the Board
as a whole has dropped just below the 30% target.
Please find below a chart representing the
Board’s gender and age as of December 31, 2024.
BOARD MEMBERS BY AGE GROUP AND GENDER
December 31, 2024
Directors
30-50
>50
Total
Total %
Male
1
7
8
73%
Female
1
2
3
27%
Other
—
—
—
—%
Not disclosed
—
—
—
—%
Total
2
9
11
100%
b) Manager Diversity Targets (sub-top)
& Diversity and Inclusion Practice
Ferrari places people at its core. We believe in the
importance of inclusion and the enhancement of di-
versity and continuously improve our people strate-
gies in order to maintain an engaging, meritocratic
and fair environment, in which all Ferrari people can
and want to do their best. Equal opportunities are the
best way to ensure that merit is the decisive factor
to keep on attracting, retaining and developing the
talents, accelerating Ferrari’s innovation process.
In order to guarantee equal opportunities, our
Company operates a merit-based remuneration
policy, not discriminating on the basis of gender,
age, nationality, social status or cultural background.
In addition, Ferrari S.p.A. started an in-depth analy-
sis on remuneration, which led, in July 2020, to the
award of the Equal Salary Certificate for providing
equal pay to men and women with the same quali-
fications and positions in the Company. This certifi-
cation, which has a 3-year validity cycle (a main audit
154
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
in the first year followed by annual monitoring in
the second and third years), has been extended at
global level in 2023 and confirmed in 2024. It testifies
the Company’s commitment to creating an inclusive
and diverse working environment while fostering
career development for all. Ferrari sees this certifi-
cation not as an end point but as a further stage of
growth and an opportunity to implement tangible
actions to ensure that everyone can pursue his or
her own professional development.
In addition to that, in December 2024, Ferrari
S.p.A. received the gender equality certification
issued under Italian UNI/PdR 125:2022, a gender
equality practice which defines the guidelines on
the management system for gender equality and
for the structuring and adoption of a set of perfor-
mance indicators (KPIs) inherent to gender equal-
ity policies on organizations, in six strategic areas
including (i) culture and strategy; (ii) governance; (iii)
human resources (HR) management processes; (iv)
opportunities for growth and inclusion of women in
business; (v) gender pay equity and (vi) parental pro-
tection and work-life balance.
Reflecting Ferrari’s ambition for diversity and
inclusion across the Company, in 2023, the Board of
Directors adopted a diversity and inclusion practice
(the “Diversity and Inclusion Practice”), and, in 2024,
the Company’s CEO executed the “Policy for Gender
Equality and Diversity & Inclusion”, setting forth D&I
principles according to which Ferrari operates.
Ferrari Group promotes the valorization of human
resources and encourages the diffusion of a corpo-
rate culture based on Inclusion and mutual respect
in the belief that Diversity represents a source of
creativity, enrichment and innovation. In carrying out
its activities, the Group adopts an approach aimed at
guaranteeing equal opportunities at all levels of the
organization as well as rejecting any form of discrim-
ination. The Diversity and Inclusion Practice identifies
and implements diversity and inclusion principles for
the whole employees’ population of Ferrari Group as
well as the Board of Directors. Among the actions we
have taken to implement the Diversity and Inclusion
Practice, the monitoring of diversity in panel of hiring
candidates, the analysis of the percentage of men
and women involved in remuneration and promotion
processes to support with these data the decision
making, the definition of clear diversity objectives for
all levels in the organization.
The continuous monitoring of our target shows
that women in managerial positions(33) at December
31, 2017 were 11.8 percent (while women repre-
sented 12.2 percent of the total employee popula-
tion) and at December 31, 2024 were 16.0 percent
(while women represented 16.1 percent of the total
employee population).
Our goal is to proceed in this direction: indeed
we aim to maintain a healthy growth rate in women
in managerial positions, considering the percent-
age of women in the total employee population. We
define as an appropriate target to have at least 18%
women in managerial positions by 2027.
Our plan to achieve the target is to continue the imple-
mentation of initiatives and actions put in place in 2024,
as mentioned above fostering the value of diversity in
panel of hiring candidates, monitoring the percentage
of men and women involved in career plans and salary
review, defining clear diversity objectives for all levels
in organization. For Ferrari it is important to guarantee
equal opportunities at all levels, so the consistency be-
tween global percentage and managerial percentage
is a key indicator in our diversity strategy.
STAKEHOLDER ENGAGEMENT PRACTICE
On September 14, 2023, the Board of Directors ad-
opted the updated version of the stakeholder en-
gagement practice (the “Stakeholder Engagement
Practice”), as the Company firmly believes that main-
taining a profitable dialogue with its stakeholders, by
listening to their expectations and perspectives, is key
in the path to sustainable long-term value creation.
This Stakeholder Engagement Practice aims at en-
hancing Ferrari’s communication with its stakehold-
ers and at giving all members of the Board, manag-
ers and employees of the Ferrari Group, and anyone
else working for it or on its behalf in Italy or any other
country, guidelines on the right methods and forms
of interaction with such different stakeholders.
For more information our stakeholder engage-
ment,
see
the
chapter
entitled
“Stakeholder
Engagement” in the Sustainability Statement section
of our 2024 Annual Report.
PROFILE OF THE NON-EXECUTIVE DIRECTORS
In respect of the composition of the Board of
Directors, a profile of the non-executive Directors
(the “Profile”) has been adopted by the Company.
The purpose of this profile is to provide guidance
with respect to the composition and expertise of
the non-executive Directors. The Profile provides
that the Board of Directors shall be composed in
such manner that its composition reflects an ade-
quate mix of technical abilities, professional back-
ground and experience, both general and specific,
gained in an international environment and per-
taining to the dynamics of the macro-economy and
globalization of markets, more generally, as well as
the industrial and financial sectors, more specifi-
cally. In selecting and nominating new non-execu-
tive Directors, the Company shall ensure that such
non-executive Directors complement the knowl-
edge and experience of the other non-executive
Directors and that the independency requirements
under the Dutch Corporate Governance Code and
the NYSE rules are taken into account. In selecting
and nominating new non-executive Directors, the
Company shall also ensure that the Diversity Policy,
including the gender diversity target ratios as de-
scribed under “—Diversity Policy” above, is taken
into account. In recommending prospective candi-
dates for nomination to the Board of Directors, the
ESG Committee shall take into account the Profile.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
155
BOARD REPORT
The Profile is posted on our website at https://
corporate.ferrari.com/sites/ferrari15ipo/files/e_
fnv_profile_non-executive_directors_13_09_2018_
clean_final_new_0.pdf.
COMPLIANCE WITH DUTCH CORPORATE
GOVERNANCE CODE
The Company endorses the principles and best prac-
tice provisions of the Dutch Corporate Governance
Code, except for the following best practice provi-
sions which are explained below:
Best practice provision 2.2.4 of the Dutch Corporate
Governance Code: The supervisory board should
also draw up a retirement schedule in order to avoid,
as much as possible, supervisory board members
retiring simultaneously. The retirement schedule
should be published on the company’s website.
The Company does not have a retirement schedule
as referred to in best practice provision 2.2.4 of the
Dutch Corporate Governance Code, because the
Company’s Articles of Association provide for a term
of office of member of the Board of Directors for a
period of approximately one year after appointment,
such period expiring on the day the first annual gen-
eral meeting of shareholders is held in the following
calendar year. Short terms of office for board mem-
bers are customary for companies listed in the U.S.
As the Company is listed on the NYSE, the Company
also follows certain common U.S. governance prac-
tices, one of which is the reappointment of our
Directors at each annual general meeting of share-
holders. In light of this term of office, the Company
does not have a retirement schedule in place.
Best practice provision 4.1.8 of the Dutch Corporate
Governance Code: Management board and super-
visory board members nominated for appointment
should attend the general meeting at which votes will
be cast on their nomination.
Pursuant to best practice provision 4.1.8 of the Dutch
Corporate Governance Code, every executive and
non-executive Director nominated for appointment
should attend the general meeting at which votes
will be cast on its nomination. Since, pursuant to
Article 14.3 of the Articles of Association, the term of
office of Directors is approximately one year, such
period expiring on the day the first annual gener-
al meeting of shareholders of the Company is held
in the following calendar year, all members of the
Board of Directors are nominated for (re)appoint-
ment each year. By publishing the relevant biograph-
ical details and curriculum vitae of each nominee
for (re)appointment, the Company ensures that the
Company’s general meeting of shareholders is well
informed in respect of the nominees for (re)appoint-
ment and in practice only the Chairman, the Chief
Executive Officer and the Vice-Chairman will there-
fore be present at the general meeting.
Best practice provision 5.1.4 of the Dutch Corporate
Governance Code: Neither the audit committee nor
the remuneration committee can be chaired by the
chairman of the management board or by a former
executive director of the company.
Our Senior Non-Executive Director and Chair of the
Board of Directors, Mr. Duca, is also the Chairperson
of the Audit Committee, which is not in line with best
practice provision 5.1.4 of the Dutch Corporate
Governance Code. The Company believes that Mr.
Duca, in light of his extensive experience with audits
and his knowledge in this respect, brings a valuable
contribution to the Audit Committee and therefore
believes it is in Ferrari’s best interest and appropri-
ate for Mr. Duca to chair the Audit Committee.
Best practice provision 5.1.4 of the Dutch Corporate
Governance Code: The committees referred to in
best practice 2.3.2 should be comprised exclusively
of non-executive directors.
Mr. Elkann, our Executive Chairman and Executive
Director, has a position on the ESG Committee, to
which best practice provision 5.1.4 of the Dutch
Corporate Governance Code applies. The position
of Mr. Elkann as executive Director in this commit-
tee follows inter alia from the duties of the ESG
Committee, which are more extensive than the du-
ties of a selection and appointment committee and
include duties that warrant participation of an exec-
utive Director in the view of the Company.
ITALIAN CORPORATE GOVERNANCE CODE
As regards the Italian framework for corporate
governance, the Company is aware that a corpo-
rate governance code (the “Italian CGC”) has been
issued by Borsa Italiana S.p.A., applicable to all com-
panies with shares listed on Euronext Milan starting
from January 2021.
As of December 31, 2024, the Company’s cor-
porate governance structure is substantially in line
with all the principles and recommendations set
forth in the Italian CGC, especially due to the fact that
the Company has adopted, and complies with, the
Dutch Corporate Governance Code, which contains
principles and best practice provisions largely sim-
ilar to those highlighted in the Italian CGC, exception
being made for the following:
(a) The independent Chair of the Board of Directors
cannot chair the control and risk committee (Article
2, Recommendation no. 7 of the Italian CGC).
Our Senior Non-Executive Director and Chair of the
Board of Directors, Mr. Duca, is also the Chairperson
of the Audit Committee, which is not in line with best
practice provision under Article 2, Recommendation
no. 7 of the Italian CGC. The Company believes that Mr.
Duca, in light of his extensive experience with audits
and his knowledge in this respect, brings a valuable
156
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
contribution to the Audit Committee and therefore
believes it is in Ferrari’s best interest and appropri-
ate for Mr. Duca to chair the Audit Committee.
(b) In large companies, the Board of Directors ex-
presses its guidelines on the maximum number
of offices that can be considered compatible with
an effective performance and the time commit-
ment required by the role of the directors. The rel-
evant offices are those held in corporate bodies
of other listed companies or of companies having
a significant size (Article 3, Recommendation no.
15 of the Italian CGC)
Applicable Dutch corporate law already expressly
regulates the maximum number of offices that may
be held by directors. Pursuant to Dutch law, persons
may not be appointed as non-executive Directors if
such persons are non-executive director, member
of the supervisory board or other similar bodies
for five or more (Dutch) companies of a certain size
and such persons cannot be appointed as executive
Directors if such persons are non-executive direc-
tor at more than two other (Dutch) companies of a
certain size or if such person is the chairperson of
the board of supervisors or the one tier board of
another (Dutch) company of a certain size. Ferrari is
compliant with the abovementioned Dutch limits.
(c) In large companies, the Board of Directors elab-
orates, with the support of the nomination com-
mittee, a plan for the succession of the Chief
Executive Officer and executive directors by iden-
tifying, at least, the procedures to be followed in
the event of an early termination of office (Article
4, Recommendation no. 24 of the Italian CGC)
The Company’s Board of Directors believes that the
members of the Board of Directors itself – chosen
and appointed on the basis of their respective ex-
pertise, level of professionalism and knowledge of
the Company’s business – would be capable to carry
out (in the absence, due to early termination of the
office, of the Chief Executive Officer and/or any oth-
er executive officer) the ordinary business of the
Company until the appointment, by the competent
corporate body, of the new Chief Executive Officer
and/or other executive officer(s).
Further, the Company’s Board of Directors
believes that the decision whether to adopt a suc-
cession plan shall be further analysed bearing in
mind the sensitivity of the topic.
Furthermore, the Company believes that the
overall system of delegated powers adopted by the
Company is sufficient to mitigate the risk of a vacancy
for an executive Director or a senior manager and
ensure the continuity of the Company’s business.
The overall system of delegated powers adopted
by the Company already includes a succession plan
for the top management which in the Company is
represented by the Ferrari Leadership Team. The
Company believes that the above measures help
the Company achieving the objective underlying
the Code’s principles and in any case contributes
to good corporate governance. Finally, it should be
noted that the Company’s Board of Directors has
already defined a procedure to be applied for the
appointment of, at least, the Chief Executive Officer,
which provides for, inter alia, the involvement of,
inter alia, a specific committee (i.e., the CEO Search
Committee), who will assist the ESG Committee with
selecting a new candidate for this office.
EXCHANGE CONTROLS
Under Dutch law, there are no exchange control
restrictions on investments in, or payments on, the
Ferrari common shares. There are no special re-
strictions in the Ferrari Articles of Association or
Dutch law that limit the right of shareholders who
are not citizens or residents of the Netherlands to
hold or vote the Ferrari common shares.
REPORT OF THE
NON-EXECUTIVE DIRECTORS
INTRODUCTION
This is the report of the non-executive Directors of
the Company over the financial year 2024, as re-
ferred to in best practice provision 5.1.5 of the Dutch
Corporate Governance Code, and it provides fur-
ther information on the performance of the non-ex-
ecutive Directors’ duties throughout 2024.
It is the responsibility of the non-executive
Directors to supervise the policies carried out by
the executive Directors and the general affairs of
the Company and its affiliated enterprise, including
the implementation of the strategy of the Company
regarding sustainable long-term value creation. Inter
alia, non-executive Directors should focus on the
effectiveness of the Company’s internal risk man-
agement and control systems and the integrity and
quality of the financial reporting and the sustainabil-
ity reporting. It is also the responsibility of the non-ex-
ecutive Directors to determine the remuneration
of the executive Directors and to nominate candi-
dates for the Director appointments. In so doing, the
non-executive Directors act solely in the interest of
the Company. With a view of maintaining supervision
on the Company, the non-executive Directors regu-
larly discuss Ferrari’s long-term business plans, the
implementation of such plans and the risks associ-
ated with such plans with the executive Directors.
According to the Articles of Association, the
Board of Directors is a single board and consists of
three or more members, comprising both members
having responsibility for the day-to-day manage-
ment of Ferrari (executive Directors) and members
not having such day-to-day responsibility (non-ex-
ecutive Directors). The tasks of the executive and
non-executive Directors in a one-tier board such as
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
157
BOARD REPORT
the Company’s Board of Directors may be allocated
under or pursuant to the Articles of Association, pro-
vided that the general meeting of shareholders has
stipulated whether such Director is appointed as
executive or as non-executive Director and further-
more provided that the task to supervise the perfor-
mance by the Directors of their duties can only be per-
formed by the non-executive Directors. Regardless
of an allocation of tasks, all Directors remain col-
lectively responsible for the proper management
and strategy of the Company (including supervision
thereof in case of non-executive Directors).
Details of the current composition of the Board
of Directors, including the non-executive Directors,
and its committees are set forth in the section
“Board of Directors”.
SUPERVISION BY THE
NON-EXECUTIVE DIRECTORS
The non-executive Directors supervise the policies
carried out by the executive Directors and the gen-
eral affairs of the Company and its affiliated enter-
prise. In so doing, the non-executive Directors have
also focused on the effectiveness of the Company’s
internal risk management and control systems, the
integrity and quality of the financial reporting and
Ferrari’s long-term business plans, the implementa-
tion of such plans and the risks associated.
The non-executive Directors also determine the
remuneration of the executive Directors and nom-
inate candidates for the Director appointments.
Furthermore, the Board of Directors may allocate
certain specific responsibilities to one or more indi-
vidual Directors or to a committee comprised of eli-
gible Directors of the Company and subsidiaries of
the Company. In this respect, the Board of Directors
has allocated certain specific responsibilities to the
Audit Committee, the Compensation Committee
and the ESG Committee. Further details on the man-
ner in which these committees have carried out
their duties, are set forth in the sections “The Audit
Committee”, “The Compensation Committee” and
“The ESG Committee”.
The non-executive Directors supervised the
adoption and implementation of the strategies and
policies by the Group, reviewed this annual report,
including the Compensation Report and the Group’s
financial results, received updates on legal and
compliance matters and they have been regularly
involved in the review and approval of transactions
entered into with related parties. The non-execu-
tive Directors have also reviewed the reports of the
Board of Directors and its committees and the rec-
ommendations for the appointment of Directors.
MEETINGS AND ATTENDANCE
During 2024, there were four meetings of the Board
of Directors. The average attendance at those meet-
ings was 95.46 percent. Members of the FLT were in-
vited to give presentations to the Board of Directors.
Portions of these meetings took place with the par-
ticipation of the non-executive Directors only, without
the executive Directors or any other attendees being
present, in order for the non-executive Directors to
independently review and discuss certain matters. In
addition, the Senior Non-Executive Director and the
Chief Executive Officer held regular one-to-one meet-
ings to discuss progress and key topics. Members
of the Board of Directors had contact with various
levels of management to ensure that they remained
well-informed about the Company’s operations. All
non-executive Directors set aside adequate time to
give sufficient attention to the Company’s matters.
An overview of the attendance of the individual Directors per meeting
of the Board of Directors and its committees set out against the total
number of such meetings is set out below:
Name
Meeting Board of
Directors
Audit Committee
ESG Committee
Compensation
Committee
John Elkann
4/4
—
1/1
—
Benedetto Vigna
4/4
—
—
—
Piero Ferrari
4/4
w
—
1/1
Sergio Duca
4/4
6/6
—
—
Delphine Arnault
3/4
—
1/1
—
Francesca Bellettini
3/4
5/6
—
—
Eddy Cue
4/4
—
1/1
1/1
John Galantic
4/4
—
—
1/1
Maria Patrizia Grieco
4/4
6/6
—
—
Adam Keswick
4/4
—
—
—
Mike Volpi
4/4
—
—
—
158
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
BOARD FOCUS
During these meetings, key topics discussed were,
amongst others: the Group’s strategy, the Group’s
financial results and reporting, sustainability, acqui-
sitions and divestments, executive compensation,
technological developments, risk management, up-
dates on legal and compliance, risk management, hu-
man resources with the Head of Human Resources,
implementation of the Remuneration Policy and the
compensation report. The non-executive Directors
were actively involved in the process of reviewing
strategic and growth projects for the Company.
INDEPENDENCE OF THE
NON-EXECUTIVE DIRECTORS
The non-executive Directors are required by Dutch
law to act solely in the interest of the Company. The
Dutch Corporate Governance Code stipulates the
corporate governance rules relating to the inde-
pendence of non-executive Directors and requires
under most circumstances that a majority of the
non-executive Directors be “independent”.
Currently, nine out of nine non-executive Directors
are considered to be independent under the NYSE
definition while eight non-executive Directors are
considered to be independent under the Dutch
Corporate Governance Code given the right of usu-
fruct Mr. Pierro Ferrari holds over shares (including
the right to exercise the voting rights of such shares)
held by Trust Piero Ferrari (as described in this Annual
Report). Mr. Sergio Duca, the Senior Non-Executive
Director of the Board of Directors, is independent
under the Dutch Corporate Governance Code in
accordance with best practice provision 2.1.9 of the
Dutch Corporate Governance Code.
Ferrari is of the opinion that the independency
requirements as referred to in best practice pro-
vision 2.1.10 of the Dutch Corporate Governance
Code are met by the Company.
EVALUATION BY THE
NON-EXECUTIVE DIRECTORS
The non-executive Directors are responsible for su-
pervising the Board of Directors and its committees,
as well as the individual executive and non-executive
Directors, and are assisted by the ESG Committee
in this respect. Each year, the Board of Directors
formally assesses its performance, including with
respect to its composition, diversity and how effec-
tively its members work together, with the aim of
helping to improve the effectiveness of the function-
ing of the Board of Directors and its committees.
In accordance with the ESG Committee Charter,
the ESG Committee assists and advises the Board of
Directors with respect to periodic assessment of the
performance of individual Directors. In this respect,
the ESG Committee has, amongst others, the duties
and responsibilities to review annually the Board of
Directors’ performance and the performance of its
committees and to review each Director’s continua-
tion on the Board of Directors at appropriate regular
intervals as determined by the ESG Committee.
In
2024,
the
ESG
Committee’s
periodic
assessments took place during the meeting held
on February 15. During that meeting, the ESG
Committee focused on the results of the periodic
assessments and the performance of the Board
of Directors, its committees and the individual
Directors, keeping also into account the self-as-
sessment prepared by each Director. During such
meeting and on the basis of such evaluations, the
ESG Committee dealt also with the directors’ nom-
ination process, the assessment of Directors’ qual-
ifications, the size and composition of the Board of
Directors and its committees, as well as the recom-
mendations for Directors’ election, in which the out-
come of the evaluations has been reflected.
The non-executive Directors have been regu-
larly informed by each committee as referred to in
best practice provision 2.3.5 of the Dutch Corporate
Governance Code and the conclusions of those
committee were taken into account when drafting
this report of the non-executive Directors.
The
non-executive
Directors
were
able
to
review
and
evaluate the
performance
of the
Audit Committee, the ESG Committee and the
Compensation Committee based on the assess-
ments made by the ESG Committee. The self-assess-
ment of the Committees were also discussed by the
Board of Directors. The outcome of the evaluations
is that there is no need to amend the size or compo-
sition of the Audit Committee, the ESG Committee
and the Compensation Committee, nor is there
any reason to amend their charters on this basis.
Further details on the manner in which these com-
mittees have carried out their duties, are set forth in
sections “The Audit Committee”, “The Compensation
Committee” and “The ESG Committee”.
On the basis of the preparations by the ESG
Committee, the non-executive Directors were able
to review the Board of Director’s assessments, the
individual Directors’ assessments and the recom-
mendation for Directors’ election. The Board of
Directors concluded that each of the Directors con-
tinues to demonstrate commitment to its respective
role in the Company.
Also, pursuant to the Compensation Committee
Charter, the Compensation Committee implements
and oversees the remuneration policy as it applies
to
non-executive
Directors,
executive
Directors
and senior officers reporting directly to the exec-
utive
Directors.
The
Compensation
Committee
administers all the equity incentive plans and the
deferred compensation benefits plans. On the basis
of the assessments performed, the non-executive
Directors determine the remuneration of the exec-
utive Directors and nominate candidates for the
Director appointments.
The non-executive Directors have supervised
the performance of the Audit Committee, the
Compensation Committee and the ESG Committee.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
159
BOARD REPORT
RESPONSIBILITIES IN RESPECT
TO THE ANNUAL REPORT
The Board of Directors is responsible for preparing
the Annual Report, inclusive of the Consolidated and
Company Financial Statements and Board Report, in
accordance with Dutch law and International Financial
Reporting Standards as issued by the International
Accounting Standards Board and as adopted by the
European Union (IFRS Accounting Standards).
In accordance with Section 5:25c, paragraph
2 of the Dutch Financial Supervision Act, the Board
of Directors states that, to the best of its knowl-
edge, the Consolidated and Company Financial
Statements prepared in accordance with IFRS
Accounting Standards as adopted by the European
Union provide a true and fair view of the assets, lia-
bilities, financial position and profit or loss for the
year of the Company and its subsidiaries and that
the Board Report provides a true and a fair view of
the performance of the business during the finan-
cial year and the position at the balance sheet date
of the Company and its subsidiaries, together with a
description of the principal risks and uncertainties
that the Company and the Group face.
February 20, 2025
[Board of Directors]
John Elkann
Benedetto Vigna
Piero Ferrari
Sergio Duca
Delphine Arnault
Francesca Bellettini
Eddy Cue
John Galantic
Maria Patrizia Grieco
Adam Keswick
Mike Volpi
163
SUSTAINABILITY
STATEMENT
165
SUSTAINABILITY STATEMENT
INDEX
ESRS 2 – General disclosures
166
E1 – Climate change
209
E2 – Pollution
240
E5 – Resource use
242
and circular economy
S1 – Own workforce
247
S2 – Workers in the value chain 269
S3 – Affected communities
272
S4 – Consumers
276
and End-users
G1 – Business Conduct
283
166
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ESRS 2 – GENERAL
DISCLOSURES
BASIS FOR PREPARATION
Through this Sustainability Statement, we aim to
provide our stakeholders with sustainability-related
information and illustrate our sustainability strategy
and our corporate social responsibility initiatives in
2024 (from January 1, 2024, to December 31, 2024)
to ensure a transparent and structured communi-
cation with our stakeholders.
This Sustainability Statement is prepared for the
first time in accordance with the requirements from
the European Sustainability Reporting Standard (ESRS)
issued by the European Financial Reporting Advisory
Group (EFRAG). While the Dutch implementation of the
Corporate Sustainability Reporting Directive (CSRD)
is still pending, we believe in proactive sustainabil-
ity reporting and have chosen to voluntarily prepare
our reports in accordance with the CSRD standards.
Several operating departments of the Group have been
actively involved in the process of data gathering and
report drafting to shape this Statement. This was pre-
pared under the supervision of Ferrari Group’s Chief
Financial Officer and was shared with the Executive
Officers of the Group and with the ESG Committee of
the Board of Directors. The IROs (defined as Impacts,
Risks and Opportunities) were approved by the Audit
Committee of the Board of Directors.
This Statement has been prepared on a consoli-
dated basis. The scope of consolidation corresponds
to Ferrari N.V.’s Consolidated Financial Statements.
The Sustainability Statement covers our upstream
and downstream value chain with respect to policies
and actions related to material IROs identified along
our value chain (for more details refer to “ESRS 2 –
General disclosures—Impacts, risks and opportu-
nities management”), and GHG Scope 3 emissions
metrics (please refer to “E1 – Climate change—Our
GHG Emissions” paragraph).
We did not use the option to omit a specific piece
of information corresponding to intellectual prop-
erty know-how or the results of innovation and any
exemption from disclosure of impending develop-
ments or matters in the course of negotiation, as
provided for in articles 19a (3) and 29a (3) of Directive
2013/34/EU.
Any exceptions, with regard to the scope of this
data, are clearly indicated throughout this Statement.
Please note that the quantitative metrics of Scope
3 GHG emissions and quantities of substances
of concern, related to metrics E1-6 and E2-5, are
based on estimates and assumption subject to a
high level of measurement uncertainty. For further
detail about the calculation methodology and un-
certainty associated, please refer to “E1—Climate
change—Our GHG Emissions” and “E2—Pollution—
Our metrics”, respectively.
The reporting frequency will be annual and we
use the phase-in provision in accordance with the
ESRS 1 Appendix C except for S1-7, S1-13, S1-14.
In this Statement, we define as significant the
fines that are above the financial materiality thresh-
old considered for the Financial Statement. For
more details on how it was determined, please
refer to the Independent Auditor’s Report in this
Report. In addition, for the actions indicated in each
chapter, we define as significant the amount of
operational and capital expenditures that exceeds
the threshold of €4 million.
GOVERNANCE
Ferrari N.V. is a public limited liability company, in-
corporated under the laws of the Netherlands. The
Company is the holding company of the Ferrari Group
following the separation of the Ferrari business from
FCA, now Stellantis N.V. In this section, the “Company”
refers to Ferrari N.V. The Company qualifies as a
foreign private issuer under the New York Stock
Exchange (“NYSE”) listing standards and its common
shares are listed on the NYSE and on Euronext Milan
(formerly Mercato Telematico Azionario).
The Board of Directors as a whole is responsi-
ble for the strategy of the Company. The Board of
Directors appointed the following internal commit-
tees: (i) an Audit Committee, (ii) an ESG Committee,
and (iii) a Compensation Committee. On certain
key operational matters, the executive Directors
are supported by the Ferrari Leadership Team
(hereinafter also the “FLT”), which is responsible
for reviewing the operating performance of the
businesses, collaborating on certain operational
matters, supporting the executive Directors with
their tasks and executing decisions of the Board of
Directors and the day to day management of the
Company, primarily to the extent it relates to the
operational management.
167
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
As of December 31, 2024, our Board of Directors is composed of eleven
Directors as shown in the table below:
Directors
Nationality
Executive
Non
Executive
Independent
Committees
Directors
first term
from1
Directors
current
term
from
Roles in
other listed
companies(2)
NYSE
Rules
Dutch
Code
Audit
Compen-
sation
ESG
John Elkann
(Executive
Chairman
and Executive
Director)
IT
April 15,
2016(3)
April 17,
2024
3
Benedetto
Vigna
(Chief
Executive
Officer)
IT
September
16, 2021(4)
April 17,
2024
0
Piero Ferrari
(Vice
Chairman)
IT
January 2,
2016
April 17,
2024
0
Sergio Duca
(Chair of the
Board and
Senior Non-
Executive)
IT
January 2,
2016
April 17,
2024
0
Delphine
Arnault
FR
April 15,
2016
April 17,
2024
2
Francesca
Bellettini
IT
April 16,
2020
April 17,
2024
0
Eddy Cue
US
January 2,
2016
April 17,
2024
0
John Galantic
US, CH
April 16,
2020
April 17,
2024
0
Maria Patrizia
Grieco
IT
April 15,
2016
April 17,
2024
2
Adam
Keswick
UK
April 15,
2016
April 17,
2024
1
Mike Volpi
US
April 14,
2023
April 17,
2024
3
(1)
References in this table to Directors refer to Ferrari N.V.
The Board of Directors is appointed annually on each annual
general meeting of shareholders.
(2)
Directorships in listed companies other than in the Company.
(3)
Mr. John Elkann is Executive Director from April 12, 2019.
(4)
Mr. Benedetto Vigna was confirmed as Chief Executive
Officer by the Board of Directors as of April 14, 2023
The Audit Committee currently consists of Mr. Duca
(Chairperson), Ms. Bellettini and Mrs. Grieco, each
of whom is independent within the meaning of the
Dutch Corporate Governance Code. At the date
of this Annual Report, every member of the Audit
Committee is a non-executive Director.
The Compensation Committee currently con-
sists of Mr. Galantic (Chairperson), Mr. Cue and Mr.
Ferrari. At the date of this Annual Report, every
member of the Compensation Committee is a
non-executive Director and the majority of them
are independent.
The ESG Committee consists of Mr. Elkann
(Chairperson), Mrs. Arnault and Mr. Cue. The ESG
Committee is elected by the Board of Directors and
is comprised of at least three Directors. At the date
of this Annual Report, Mr. Elkann is the only Executive
member of the ESG Committee and the majority of
ESG Committee members are independent.
Nine Directors currently qualify as independent
(representing a majority) for purposes of NYSE
rules and Rule 10A-3 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and
eight Directors qualify as independent (represent-
ing a majority) for purposes of the Dutch Corporate
Governance Code.
In percentage terms, the share of independent
members of the Board according to the NYSE Rule
is 82%, whereas according to the Dutch Corporate
Governance Code the percentage is 73%. None of
168
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the members of the Board of Directors have held
similar positions in the public administration (includ-
ing regulators) in the past two years.
According to the applicable laws and the Regulation
of the Board, at the level of the Company no works
council or similar employee participation bodies are
required to be installed.
As of December 31, 2024, the members of the Board of Directors had the
skills shown in the table below:
Skill Area
Corporate
Governance
and Risk
management
Financial and
accounting
Corporate
management
Digital and
cybersecurity
Innovation
ESG
Automotive
and
motorsport
industry
knowledge
Luxury goods
industry
knowledge
John Elkann
(Executive
Chairman and
Executive Director)
Benedetto Vigna
(Chief Executive
Officer)
Piero Ferrari
(Vice Chairman
and non-Executive
Director)
Sergio Duca
(Senior Non-
Executive Director)
Delphine Arnault
(Non-Executive
Director)
Francesca Bellettini
(Non-Executive
Director)
Eddy Cue
(Non-Executive
Director)
John Galantic
(Non-Executive
Director)
Maria Patrizia
Grieco
(Non-Executive
Director)
Adam Keswick
(Non-Executive
Director)
Mike Volpi (Non-
Executive Director)
All Board Members have knowledge and expertise
on business ethics, corporate governance and reg-
ulatory affairs. Moreover, more than half of Board
Members have developed experiences in social en-
gagements and environmental issues. With these
skills they are able to better oversee sustainability
matters and manage impacts, risks and opportuni-
ties. With reference to the IROs related to Quality and
Safety, Climate Change, Circular economy and Natural
Resources Management they benefit from the Board’s
skills in the automotive, motorsport and luxury goods
industry, as well as in ESG. Furthermore, the IROs re-
lated to Ethics and Business Conduct benefit from
Corporate Governance and Risk management exper-
tise. Digital and cybersecurity Board skills enable them
to accurately oversee the IROs related to the Data
Responsibility, privacy and cybersecurity topic.
Within each paragraph the function responsible for
the IROs involved will be indicated.
In the event of updates to internal and/or external
regulations, the administrative, management and/
or supervisory internavvl bodies may receive rele-
vant training as deemed necessary.
169
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
DIVERSITY POLICY
The Board of Directors adopted an updated diver-
sity policy for the Board of Directors (the “Diversity
Policy”) effective as of September 14, 2023, since the
Company believes that diversity in the composition
of the Board of Directors in terms of age, sex, gen-
der, nationality, expertise, experience, competen-
cies, or other personal qualities, and cultural or oth-
er background is an important mean of promoting
debate, balanced decision making and independent
actions of the Board of Directors.
The Diversity Policy2 gives weight to the following
diversity factors in Board of Directors composition:
age, sex, gender, nationality, expertise, experience,
competencies, or other personal qualities, and pro-
fessional cultural or other background. The Company
considers each of these aspects key drivers to sup-
port the above mentioned goals and to achieve suf-
ficient diversity of views and the expertise needed
for a proper understanding of current affairs and
longer-term risks and opportunities related to the
Company’s business. The Board of Directors and its
ESG Committee consider such factors when evalu-
ating nominees for election to the Board of Directors
and during the annual performance assessment
process. The Diversity Policy covers the following
opportunity: “Diversity of governing body/executive
team - The capabilities and perspectives of board/
executive team members are important for making
robust decisions on an ongoing basis”.
The most senior level in Ferrari accountable for
the implementation and monitoring of the policy is
the ESG Committee. The policy is available on the
corporate website.
BOARD OF DIRECTORS DIVERSITY TARGETS
The Company has set the following concrete targets
to be achieved by 2027: (a) at least 30 percent of the
seats of the Board of Directors to be occupied by
women and at least 30 percent by men; (b) at least 33
percent of the seats of the non-executive members
of the Board of Directors to be occupied by women
and at least 33 percent by men; (c) the nationality of
the members of the Board of Directors to be reason-
ably consistent with the geographic presence of the
Company’s business, and no nationality should count
for more than 60 percent of the members of the
Board of Directors; and (d) diversity in the age of the
members of the Board of Directors by having one or
more members of the Board of Directors aged un-
der 50 at the day of their nomination; provided that,
in the candidate selection process, rules and gen-
erally accepted principles of non-discrimination (on
grounds such as ethnic origin, race, disability or sex-
ual orientation) will be taken into account. Given the
current composition of the Board of the Company in
one-tier system, composed only by two (2) executive
directors (of the same gender), the Company has de-
cided not to set a specific gender diversity target for
executive directors in the Policy while targets have
been set for the Board of Directors as a whole.
To
ensure
its
correct
implementation,
the
Diversity Policy will be taken into account in the nomi-
nation of executive Directors, and in the adoption of a
profile for non-executive Directors as well as in nom-
inating and recommending non-executive Directors.
As of December 31, 2024, the Company has
achieved (i) the gender targets of the non-executive
members of the Board of Directors, (ii) the target on
nationality and (iii) the age target. Due to the appoint-
ment of one extra male to the Board of Directors
compared to 2023, the percentage of women in the
Board as a whole has dropped just below the 30
percent target.
The ESG Committee periodically monitors gender targets during the
nomination process and for the updating of the Annual Report.
These targets have been defined in compliance with the Dutch law and
aim to be both challenging and achievable.
Please find below a chart representing the Board’s gender and age as of
December 31, 2024.
BOARD MEMBERS BY AGE AND GENDER
2024
< 30
30-50
>50
Total
Total %
Female
—
1
2
3
27%
Male
—
1
7
8
73%
Other
—
—
—
—
—
Not disclosed
—
—
—
—
—
Total
—
2
9
11
100%
Total %
—
18%
82%
100%
100%
170
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
A further aspect of diversity within the Board is na-
tionality: 54.5 percent of its members are of Italian
nationality, while 45.5 percent have other nation-
alities. Additionally, gender diversity of the Audit
Committee is 66.7 percent, of the Compensation
Committee is 0 percent, and of the ESG Committee
is 33.3 percent. The Board’s gender diversity gap
is calculated as an average ratio of female to male
Board Members.
OUR DECISION-MAKING PROCESS
The Ferrari Leadership Team (FLT) is responsible for
reviewing the operating performance of the busi-
ness, collaborating on certain operational matters,
supporting the Chief Executive Officer with his tasks
and executing the decisions of the Board of Directors
and the day-to-day management of the Company,
primarily as it relates to operational management. All
FLT members are executive officers.
Please find below a chart representing the Ferrari Leadership Team by
gender as of December 31, 2024.
2024
Male
Male %
Female
Female %
Other
Other %
Not
Disclosed
Not
Disclosed
%
Total
Total
%
Senior
Managers(1)
14
87.5%
2
12.5%
—
—%
—
—%
16
100%
(1)
With the term Senior Managers we refer to the FLT members reporting directly to the Chief Executive Officer.
The FLT is led by the Chief Executive Officer and is
composed of the heads of the operating and central
functions. We have defined cross-functional commit-
tees, responsible for cross-functional projects to sus-
tain excellence in every area, among which the ESG
Strategic Committee. The ESG Strategic Committee,
composed of all the members of the FLT, is in charge
of defining the ESG strategy of the Ferrari Group and
of monitoring the achievement of the targets.
Our Chief Financial Officer, a member of the FLT
and Head of the ESG Strategic Committee, is respon-
sible for the sustainability function. It oversees the
sustainability activities within the Group, promot-
ing dialog between different teams and functions,
identifying impacts and opportunities as well as
supporting risk identification. Moreover, the sustain-
ability function directly defines or contributes to the
approval of ESG targets. The Chief Financial Officer
periodically reports back to the Board of Directors
on the management of the organization’s impacts,
as well as the setting and progress of ESG targets
and the definition of remediation plans if required.
At the operational level, we have established two
committees focused on specific environmental and
social issues, responsible for translating strategies
into concrete decisions and action plans. The Diversity
and Inclusion Committee, headed by the Chief Human
Resources Officer, focuses on gender diversity, dis-
ability inclusion, generational diversity and educa-
tional opportunities. In March 2024, a Diversity and
Inclusion office was established within Ferrari’s orga-
nizational chart, with the aim of promoting and coor-
dinating the development of a diverse and inclusive
work culture within the organization. Fostering this
culture not only enriches the working environment,
but also drives greater innovation and creativity, key
elements for the organization’s sustainable success.
Whereas, the Green Sustainability Steering Committee,
led by the Head of Carbon Neutrality and Supplier
Relations, has the priority to reach Carbon Neutrality
by 2030, addressing direct and indirect GHG emis-
sions, focusing on energy and materials, in addition to
our electrification journey.
In 2024, the Board of Directors met four times,
achieving an attendance rate of 95.46 percent. The
Board of Directors was informed twice by the Chief
Financial Officer and the Chief Human Resources
Officer about material IROs and in particular, the
activities implemented to reach Carbon Neutrality,
the educational projects with the local community
and the diversity and inclusion progress, as well as
employee development. All the discussed topics are
linked to specific IROs that resulted as relevant in the
double materiality assessment.
In 2024, the Audit Committee met 6 times and
the average attendance rate was 94.45 percent. At
these meetings several matters were discussed,
including the Audit Committee role and responsibili-
ties, the Company’s financial control and risk frame-
work, risk assessment, internal control over finan-
cial reporting pursuant to the applicable rules, and a
financial overview of operating results. In particular,
the Audit Committee reviewed Ferrari’s periodic and
yearly financial results and, with the assistance of the
Chief Financial Officer and other Company officers,
focused on key accounting and reporting matters
as well as the main business drivers. In 2024, the
Committee was updated on the CSRD Directive imple-
mentation as well as the stakeholder engagement
activity and approved the double materiality matrix.
In 2024, the ESG Committee met once with 100
percent attendance of its members at such meet-
ing. The Committee reviewed the Board of Directors
and Committee’s assessments, the sustainability
achievements and objectives, and the recommen-
dations for Directors’ election.
171
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
In 2024, the Compensation Committee met once
with 100 percent attendance of its members at such
meeting. The Compensation Committee reviewed
the compensation report. Further information on the
activities of the Compensation Committee is includ-
ed in the compensation report.
Integrating
sustainability
into
our
Company
relies on a formal structure with clear accountabili-
ties across different levels of the organization.
Roles and responsibilities for impacts and risks
are formally defined into specific regulations that are
available on the Ferrari corporate website, includ-
ing the Regulations of the Board of Directors, the
ESG Committee Charter, and the Audit Committee
Charter. For additional information, please refer to
the “Corporate Governance” chapter.
We take an integrated approach to risk man-
agement, where risk assessment is part of the
leadership team agenda. The Board of Directors is
responsible for considering the ability to control and
manage risks crucial to achieve its identified busi-
ness targets and to ensure continuity of the Group.
The Board of Directors designs, implements, and
maintains internal risk management and control sys-
tems. In executing such responsibilities, it is assisted
by the Audit Committee, which is responsible for
advising the Board of Directors and acts under the
authority delegated by the Board of Directors with
reference to internal controls and risk management
systems. The Ferrari Leadership Team is responsi-
ble for the deployment and maintenance of a risk
management system across our business functions.
As of today, each function involved is account-
able for implementing controls and procedures to
manage relevant negative and positive impacts with
support from the sustainability function, as well as
ESG opportunities. With reference to ESG risks, the
management’s role in governance processes, as well
as controls and procedures used to monitor, manage
and oversee them, is defined in the “Risk Management
Process and Internal Control System” chapter. For
more details on controls and procedures to manage
the IROs refer to the following chapters.
Impacts, risks and opportunities are presented
to the ESG Strategic Committee for evaluation
and discussion. They are then submitted to the
Audit Committee for approval and, are ultimately
approved by the Board of Directors along with the
Sustainability Statement.
ESG-related impacts and risks represent an
important business driver, a support in our deci-
sion-making process and a key point to develop the
Group’s risk management process.
Chief Executive Officer
Board of Directors (Executive Level)
Ferrari Leadership Team
•
ESG Committee
•
Audit Committee
•
Compensation Committee
torking Groups (Operational Level)
Chief Financial Officer
(responsible for sustainability)
ESG Strategic Committee
•
Members of Company management
•
Meets every quarter
•
Reviews and validates sustainability
strategy, committments and targets
Green Sustainability Steering Committee
•
Cross functional representatives
•
Meets periodically
•
Coordinate development and
deployment of specific cross-functional
programs on carbon footprint topics
Diversity Ɲ Inclusion Committee
•
Cross functional representatives
•
Meet periodically
•
Coordinate development and
deployment of specific cross-functional
programs on diversity and inclusion
topics
172
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
INTEGRATION OF SUSTAINABILITY-RELATED
PERFORMANCE IN INCENTIVE SCHEMES
The description below summarizes the guidelines
and the principles followed by Ferrari in order to de-
fine and implement the remuneration policy appli-
cable to the executive Directors and non-executive
Directors of the Company, as well as members of the
Ferrari Leadership Team (FLT). The form and amount
of compensation received by the Directors of Ferrari
for the year ended December 31, 2024, was deter-
mined in accordance with the remuneration policy.
The Compensation Committee oversees the remu-
neration policy, remuneration plans and practices of
Ferrari and recommends changes when appropriate.
The Committee is solely comprised of non-executive
Directors from the Board of Directors who are inde-
pendent pursuant to the Dutch Corporate Governance
Code (the “Code”). Ferrari’s current remuneration pol-
icy was approved by shareholders at the 2024 AGM
and will be resubmitted to a vote by the Company’s
General Meeting at least every four years.
The Board of Directors determines the com-
pensation for our executive Directors following the
recommendation of the Compensation Committee
and with reference to the remuneration policy. The
compensation structure for executive Directors
and FLT members includes a fixed component and
a variable component based on short and long-
term performance.
Our remuneration policy is aligned with Dutch
law and the Code. In particular, the Code requires
listed companies to disclose certain information
about the compensation of their Board and execu-
tive Directors. Through this remuneration strategy,
Ferrari fulfills the requirements of the Code ensur-
ing full transparency with our shareholders.
The main goal of Ferrari’s remuneration strat-
egy is to develop a system which consistently sup-
ports the business strategy and value creation
for all shareholders, establishing a compensation
structure that allows us to attract and retain the
most highly qualified executive talents and motivate
such executives to achieve business and financial
goals that create long-term value for shareholders
in a manner consistent with our core business and
leadership values and taking into account the social
context around the Company.
The main principles of Ferrari’s remuneration policy are outlined in the
chart below:
01
Alignment with Ferrari Strategy
Compensation is strongly linked to the achievement of target aligned with the Company's
publically disclosed objectives.
02
Pay For Performance
Compensation must reinforce our performance driven culture and meritocracy.
Our incentive plans are based on peer and market benchmarked performance metrics.
03
Competitiveness
Programs are designed to recruit, motivate and reward Executive Directors and members
of the SMT delivering operational and strategic performance over time.
Compensation program provisions and financial objectives are evaluated on an annual basis
and modified in accordance with industry and business conditions.
04
Long-Term Shareholder Value Creation
Target triggering any variable compensation payment aligned to interests of shareholders.
Our compensation structure places an appropriate amount of compensation at risk based
on long-term results.
05
Compliance
Ferrari compensation policies and plans are designed to comply with applicable laws
and corporate governance requirements.
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The structure of the remuneration applicable to our
executive Directors, non-executive Directors and
other key management under Ferrari’s remunera-
tion policy has not changed in 2024 and consists of
the following elements:
(i)
Fixed Remuneration linked to the third pillar of
Ferrari’s remuneration policy (Competitiveness)
with the objective of attracting, retaining and
motivating our qualified executives and effective
leaders. For this reason, we periodically bench-
mark comparable salaries paid to executives with
similar experience by comparable companies;
(ii)
Short-Term Incentives (STI) linked to the first
and second pillars of Ferrari’s remuneration
policy (Alignment with Ferrari’s Strategy and
Pay for Performance) and tied to specific finan-
cial targets which are set at challenging levels;
short-term incentives are also linked to the con-
tribution of the individual member (Individual
Performance Factor) in order to motivate its
beneficiaries to achieve challenging targets. In
particular, Ferrari’s 2024 achievements, suc-
cess and developments were driven by organi-
zation-wide alignment with the Company’s strat-
egy and values, through incentives that reward
the achievement of those goals;
(iii) Long-Term Incentives (LTI) linked to the first and
fourth pillars of Ferrari’s remuneration policy
(Alignment with Ferrari’s Strategy and Long-
Term Shareholder Value Creation) with the aim
to align the behavior of executives critical to the
business with shareholders’ interests, motivate
executives to achieve long-term strategic objec-
tives, and enhance retention of key resources;
(iv) Non-Monetary Benefits which are related to
the overall remuneration and linked to the
third pillar of Ferrari’s remuneration policy
(Competitiveness).
Regarding the LTI, during 2024, Ferrari had three
long-term equity incentive plans in place, consistent
with the Company’s business plan presented at the
Capital Markets Day in June 2022 and awarding to
their beneficiaries, as the case may be, a combination
of performance share units (“PSUs”) and restricted
share units (“RSUs”), each representing the right to
receive one Ferrari common share. The long-term
equity incentive plans are based, among other fac-
tors, on an ESG-related Factor Goal which accounts
for 20 percent of the total LTI performance.
The ESG-related Factor Goal focuses on an
Environment Factor and a Social Factor:
• 50 percent of it is based on the Reduction CO2
Carbon Emission following the milestones of the
Ferrari’s sustainability plan – Rolling KPI until 2030:
for the intermediate years leading up to 2030, the
amount of the incentive attributed to this KPI will
be assessed based on targets calculated through
a year-by-year reduction proportional to prod-
uct development up to 2030. This methodical ap-
proach ensures a progression towards the final
targets established for the year 2030, allowing
for a consistent and measurable tracking of the
CO2 emission reduction efforts in alignment with
Ferrari’s long-term sustainability objectives.
• 50 percent of it is based on the maintenance of
the Equal Salary certification or equivalent certi-
fication. The award of this certification is based
not only on equal pay for men and women, but in
a more extensive way on targets of continuous
improvement of diversity and inclusion culture
and inclusive environment.
2024
Percentage of variable remuneration dependent on sustainability-related
targets and (or) impacts (“Premio di Competitività”)
30.4%
Percentage of variable remuneration dependent on sustainability-related
targets and (or) impacts (Long-term Incentive)
12.3%
For further information please refer to “Remuneration of Directors”.
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STATEMENT ON DUE DILIGENCE
The table below provides a mapping of the information related to the due
diligence process.
Core elements of due diligence
Paragraphs in the sustainability statement
a) Embedding due diligence in governance,
strategy and business model
ESRS 2 - General disclosures | Governance, Our Decision-Making
Process
ESRS 2 - General disclosures | Integration of sustainability-related
performance in incentive scheme
ESRS 2 - General disclosures | Impact, risks and opportunities,
Double materiality assessment methodology
b) Engaging with affected stakeholders
in all key steps of the due diligence
ESRS 2 - General Disclosure | Interests and views of stakeholders,
Double materiality assessment methodology
ESRS 2 - General Disclosure | Double materiality assessment
methodology
S1 - Own workforce | Stakeholder Engagement
S2 - Workers in the value chain | Stakeholder Engagement
S4 - Consumers and End-users | Stakeholders Engagement
c) Identifying and assessing adverse impacts
ESRS 2 - General disclosures | Impacts, risks and opportunities
management
ESRS 2 - General disclosures | Impacts, risks and opportunities,
Double materiality assessment methodology
d) Taking actions to address those
adverse impacts
E1 - Climate change | Our Strategy to Reach Carbon Neutrality by
2030, Efficient energy use
E2 - Pollution | Our actions and targets
E5 - Resource use and circular economy | Our actions
S1 - Own workforce | Talent attraction, retention and development |
Talent Recruitment and Employee Retention, Our actions
S1 - Own workforce | Diversity and Inclusion | Our actions
S1 - Own workforce Health, Safety and well-being | Health and
Safety | Our actions
S1 - Own workforce Health, Safety and well-being | Welfare and
Working Environment | Our actions
S1 - Own workforce | Diversity and Inclusion, Our actions
S1 - Own workforce | Data Responsibility, Privacy and
Cybersecurity, Our actions
S2 - Workers in the value chain | Workers in the value Chain, Our
actions
S4 - Consumers and End-users | Vehicle quality and safety, Our
targets and actions
S4 - Consumers and End-users | Ethics and business conduct -
Transparent Information, Our targets and actions
S4 - Consumers and End-users | Data Responsibility, Privacy and
Cybersecurity, Our targets and action
S4 - Consumers and End-users | Stakeholders Engagement
e) Tracking the effectiveness of these
efforts and communicating
E1 - Climate change | Our targets, Efficient energy use, Our GHG
Emissions, GHG removals and GHG mitigation projects financed
through carbon credits
E2 - Pollution | Our actions and targets, Our metrics
E5 - Resource use and circular economy | Our targets, Resource
Inflows, Resource Outflows
S1 - Own workforce | Diversity and Inclusion | Our actions, our
targets
S1 - Own workforce | Health, Safety and well-being, Our metrics
S1 - Own workforce | Training and Talent Development, Our metrics
S1 - Own workforce | Talent Recruitment and Employee Retention,
Our actions, our targets
S2 - Workers in the value chain | Workers in the value chain, Our
metrics and targets
Due diligence is an on-going practice that responds to and may trigger
changes in the company’s strategy, business model, activities, business
relationships, operating, sourcing and selling contexts. The actions
described in the paragraphs referenced in the table above are the
starting point of a structured ESG due diligence activity, which will be
extended to all suppliers in the coming years.
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RISK MANAGEMENT AND INTERNAL CONTROLS
OVER SUSTAINABILITY REPORTING
The sustainability reporting process is subject to inter-
nal controls that are based on risk assessment. In par-
ticular, the internal control system focuses on a set of
disclosures identified as “high-priority” KPI, determined
based on a list of selected parameters, such as feasi-
bility, complexity, potential reputational and reporting
risks. The high priority KPIs are included in a “risk con-
trol matrix”, where controls are formalized and tracked.
The internal control system has been defined
following the guidelines of the Internal Control
over Sustainability Reporting (ICSR) issued by the
Committee
of
Sponsoring
Organizations
of
the
Treadway Commission (COSO) and based on the
COSO Internal Control-Integrated Framework (ICIF).
For the set of selected KPIs, the entire data flow is
mapped from primary data collection to consolidation
and final validation, clearly defining roles and respon-
sibilities. To mitigate the most relevant risks resulting
from those selected KPIs, the Group has implemented
an internal control process to ensure data consistency
and accuracy. The nature and frequency of the con-
trols varies based on the risks associated with each
KPI. Depending on the control to be performed, differ-
ent tools are used, including internal files specifically
designed to support the control and various software.
The main risks identified involve potential mis-
statements due to data elaboration or consolidation
from primary sources.
In the relation to the data points considered as
“high priority”, the risks identified are:
• Potential misstatements due to incorrect manual
data entry, in relation to data referred to Energy,
Waste, F-gas, Emissions, and Social areas;
• Potential misstatements due to incomplete data (in
relation to the same areas of reporting as above);
• Potential misstatements due to incoherent or
wrongly measured data (Energy, Waste, F-gas and
Social);
• Potential misstatements due to incorrect data ex-
traction from IT systems (in relation to the same
areas of reporting as above);
• Potential misstatements due to errors in calcula-
tions, in particular for GHG data and social data;
• Potential misstatements due to wrong selection of
conversion factors for calculations (Energy and
GHG emissions).
As mitigation strategies, envisaged controls (also at
entity level) can be either preventive or detective, de-
pending on whether they are aimed at finding poten-
tial misstatements (detective) or rather avoid them
(preventive). In relation to these mitigation strategies,
a monitoring plan was introduced at the end of 2024
to prospectively test the adequacy of the design and
the effectiveness of the controls in place to mitigate
and reduce the identified risks.
The risk assessment performed during 2024 for the
definition of the “high-priority” KPIs will be updated
in order to progressively include disclosures con-
tained in the sustainability statement in the internal
control framework. The Group Internal Control and
Sox Compliance Function is responsible for the risks
mitigation and related findings, and they periodically
report updates and potential findings to the relevant
management and supervisory bodies, in particular
the FLT and the Audit Committee respectively.
STRATEGY
Ferrari is one of the world’s leading luxury brands, en-
compassing racing, sports cars and lifestyle. In each
of these three souls, the Prancing Horse is a symbol of
exclusivity, innovation and cutting-edge performance.
Our strategy focuses on maintaining our leading
position in the luxury performance sports car market,
while enhancing and protecting the value and exclu-
sivity of the Ferrari brand.
• We aim to achieve profitable growth by pursuing
the following strategies:
• Low volumes and controlled growth;
• Regular new model introductions and enhance-
ments;
• Pursue excellence in racing;
• Controlled growth in adjacent luxury and lifestyle
categories;
We will continue focusing our efforts on protecting
and enhancing the value of our brand to preserve our
strong financial profile and fuel long term growth in
existing and emerging markets, while expanding the
Ferrari brand to carefully selected lifestyle categories.
For additional information about the Ferrari
Strategy, please refer to the “Overview” paragraph.
Our dedication to excellence and our pursuit of
innovation, cutting-edge performance, and distinc-
tion in design and engineering in our luxury cars are
intrinsically linked to our commitment to integrity,
transparency, and responsibility in every aspect of
our business operations.
By fully integrating environmental and social con-
siderations with economic objectives we are able to
identify potential risks and capitalize on additional
opportunities, resulting in a process of continuous
improvement. Sustainability is a core element of our
governance model and executive management plays
a direct and active role in developing and achieving
our sustainability objectives under the direction of our
Board of Directors. As a clear demonstration of this
commitment, we have strengthened the integration
of environmental topics in our strategic plan by pre-
senting, in June 2022, a decarbonization strategy that
will help us reach Carbon Neutrality by 2030. Please
refer to “E1—Climate change—Our Strategy to Reach
Carbon Neutrality by 2030”.
Our Carbon Neutrality journey is only a step, we
also aim to guarantee a just transition, able to secure
workers’ rights and livelihoods when economies are
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SUSTAINABILITY STATEMENT
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shifting to low-carbon production. We focus on ensur-
ing continuous progress across all training domains
to maintain know-how continuity and strengthen
employee skills, aligned with our ambitions for the
future. The foundation of a responsible company rests
on being fully attentive to the nature and extent of this
interconnection and on the understanding of both the
potential effects of its activities and how those effects
can be mitigated through responsible management.
We take in high consideration the interests and
views of our stakeholders, especially clients, investors
and regulators whose guidance can help us adopt the
best strategic drivers.
To ensure tangible long-term value creation and a
continuing integration of our sustainability strategy,
we place particular emphasis on five pillars:
• EXCEEDING EXPECTATIONS - Drive technological
innovation while pursuing excellence in design
and craftsmanship to fuel the passion of our cli-
ents and enthusiasts.
• BEING THE EMPLOYER OF CHOICE - Provide an
inclusive, educational, and inspiring work envi-
ronment to unleash everyone’s passion, creativ-
ity and talent.
• PROACTIVELY
FOSTERING
BEST
PRACTICE
GOVERNANCE - Maintain Ferrari’s corporate gov-
ernance and risk management systems aligned
with best practices to ensure an ethical business
conduct while providing superior and sustainable
returns to our shareholders.
• REDUCING OUR ENVIRONMENTAL FOOTPRINT -
Increase our environmental awareness to contin-
uously set and implement related programs and
actions.
• CREATING
AND
SHARING
VALUE
WITH
THE
COMMUNITY - Encourage strategic partnerships
and the creation of positive externalities for all
stakeholders.
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Sustainability
Pillars
Aspiration
Relevant United Nations SDGs
Most relevant
chapters of this
Sustainability
Statement
Ferrari material
topics
Exceeding
expectations
Drive technological
innovation while
pursuing excellence
in design and
craftsmanship to fuel
the passion of our
clients and enthusiasts.
S4-Consumers and
end-users
Quality and safety
Reducing our
environmental
footprint
Increase our
environmental
awareness to
continuously set and
implement related
programs and actions.
E1-Climate change
Climate change
E2-Pollution
Natural
resources
management
E5-Resource use and
circular economy
Circular economy
Being the
employer of
choice
Provide an inclusive,
educational, and
inspiring work
environment to unleash
everyone’s passion,
creativity and talent.
S1-Own workforce
Talent attraction,
retention and
development
S1-Own workforce
Health, safety and
well- being
S1-Own workforce
Diversity and
inclusion
Creating
and sharing
value with the
community
Encourage strategic
partnerships and the
creation of positive
externalities for all
stakeholders.
S3-Affected
communities
Responsibility
towards the
community
and future
generations
Proactively
fostering
best practice
governance
Maintain Ferrari’s
corporate governance
and risk management
systems aligned
with best practices
to ensure an ethical
business conduct while
providing superior and
sustainable returns to
our shareholders.
G1-Business Conduct
/ S4-Consumers and
end-users
Ethics and
Business Conduct
S1-Own workforce
S2-Workers in the value
chain
Human rights
S1-Own workforce
S4-Consumers and
end-users
Data
responsibility,
privacy and
cybersecurity
The connection between Ferrari Sustainability Strategy Material topics,
relevant United Nations SDGs and Ferrari sustainability pillars is disclosed
in the table below:
The above-mentioned material topics have been linked to the Sustainable
Development Goals (SDGs) that are impacted by our business. Each
material topic is analyzed in the subsequent chapters and includes
a qualitative description of the management approach and, where
available, selected performance indicators.
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Human capital is a crucial factor in our success,
building on our position as a global leader in the lux-
ury performance car sector and creating long-term
sustainable value. On December 31, 2024, we had a
total of 5,435 employees, including 170 managers
and senior managers. Of these employees, 5,088
were based in Italy (primarily at our Maranello facil-
ity) and 347 were based in offices around the world
(including 24 managers and senior managers),
mostly in North America and China.
December 31,
2024
2023
2022
White-collar employees and middle-managers
2,769
2,568
2,441
Italy
2,458
2,282
2,163
Rest of the world
311
286
278
Blue-collar employees
2,496
2,259
2,326
Italy
2,488
2,250
2,317
Rest of the world
8
9
9
Managers and senior managers
170
161
152
Total
5,435
4,988
4,919
No Ferrari product or service is banned in any market.
As long as the sector specific ESRS are not available, Ferrari will not be
able to disclose the breakdown of total revenue by significant ESRS sector.
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LIFESTYLE
SPORTS CAR & RACING
R&D Product
Developement
OWN OPERATIONS
OWN OPERATIONS
OWN OPERATIONS
OWN OPERATIONS
OWN OPERATIONS
SUPPLY CHAIN
SUPPLY CHAIN
DEALER NETWORK
OUTBOUND LOGISTICS
Raw materials (i.e. steel,
aluminum, conflict minerals)
Utilities
Utilities
Retail Stores
Museums
Stakeholder
Relations
Licensing
Agreements
Other services
Other services
Inbound Logistics
Sales & After Sales
Sales & After Sales
SALES &
AFTER SALES
MANUFACTURING
Client Relations
Co-development
Contract Manufacturing
Supplies of components
(i.e. transmissions, powertrains
and brakes, bodyworks and
chasing manufacturing)
Product
Design
Engine
Production
Assembly Line
& Final Checks
Personalization
& Road Tests
Racing Activities
& Logistics
Stakeholder
Relations
(e.g. Clients, Tifosi,
Sponsors)
Finishing &
Cleaning
Body
Assembly
Product
Developement
Contract
Manufacturing
Product Design
Collectibles
In house by Ferrari
Painting
OUR BUSINESS MODEL
Ferrari is a one segment company, its business mod-
el is composed of three dimensions: Sports Cars,
Racing and Lifestyle. Each one corresponds to a
group of products connected with material actual im-
pacts or material potential negative impacts. In partic-
ular, in 2024, only the Lifestyle dimension did not ac-
count for more than 10 percent of Ferrari’s revenues.
Our sports cars concur to reach our Carbon
Neutrality aspiration and our commercial strate-
gy lays on the following product strategy: Different
Ferrari for different Ferraristi and different Ferrari
for different moments. This ensures maximum flex-
ibility for our clients, hence to date, Ferrari has not
identified specific customer categories with par-
ticular requirements. Our vehicles are designed in
compliance with the regulatory standards of the
market for which it is intended, ensuring alignment
with local requirements. For more information re-
garding our Carbon Neutrality strategy please re-
fer to “E1—Climate change—Our Strategy to Reach
Carbon Neutrality by 2030”.
Below is the representation of the main features of Ferrari’s upstream
and downstream value chain, and Ferrari’s position within it. Additionally,
to provide a comprehensive understanding of our operations we
describe our inputs, outputs and outcomes.
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Financial capital represents how Ferrari can gener-
ate value for its shareholders and ensure the proper
functioning of its operations, as well as the generation
and distribution of value over time to all stakeholders.
Intellectual capital is an intangible resource
through which the Company generates expertise
and innovative solutions essential for the develop-
ment of its business. It also includes the level of tech-
nological infrastructure that characterizes organiza-
tional and operational processes, as well as the ways
in which internal and external expertise is leveraged
to drive innovation. Ferrari ensures and protects its
intellectual property through constant investments
in its research and technological development sec-
tor, covering processes, products, and design.
The inputs related to the human factor consist of
the characteristics and size of the workforce, as well
as its managerial, technical, and engineering skills,
which are ensured through the human resources
department. This function is formalized through pol-
icies and actions aimed at fostering training, talent
development, health and safety, engagement, and wel-
fare. For a detailed description of these activities, refer
to the paragraphs in the “S1—Own workforce” section.
The inputs related to the infrastructural fac-
tor encompass all forms of physical capital that
enable Ferrari to carry out its activities and define
its operational capacity. This includes physical
assets (buildings and production machinery, ware-
houses, circuits, hardware & software, etc.), which
are directly managed by the company through ded-
icated departments such as the Technologies and
Infrastructures department. Ferrari has established
policies and well-defined practices to monitor the
utilization and maintenance status of its infrastruc-
tural assets, ensuring timely interventions and their
alignment with Ferrari’s business needs.
The inputs related to the social-relational fac-
tor concern the characteristics and quality of the
relational dynamics established and maintained by
Ferrari with stakeholders at all levels, such as rela-
tionships with government authorities and institu-
tions, strategic partners in its supply chain, dealer
networks, universities & schools, customer satisfac-
tion and engagement, investors. These relationships
are developed, maintained, and ensured through
the structuring of dedicated internal departments
and by the policies, practices, actions, and ad-hoc
initiatives carried out with the stakeholders. For a
detailed description of these activities, refer to the
paragraphs in the S2, S3, S4 e G1 sections.
The inputs related to natural capital are the set of
energy and natural resources, as well as raw mate-
rials (e.g. steel, aluminum and conflict minerals) and
components (e.g. transmissions and brakes) essen-
tial for Ferrari’s production activities. These inputs
are sourced through a robust and strategic network
of partnerships with key suppliers. The procure-
ment process is managed by Purchasing & Quality
department responsible for sourcing, research and
selection of suppliers, driven by the specific needs
and requirements of operational departments.
The output is represented by the products sold and
the services provided by Ferrari to its clients in each
dimension. For Sports Cars we refer to current mod-
els (Range models, Special Series, Icona, One - Off
and Supercar) and Classiche, as well as client events,
experience and services. For Racing Activities, we
refer to Formula 1, Endurance competitions, Esports
and Ferrari Driving Academy. Lifestyle includes
Personal Luxury Goods, Collectibles and Experience.
The outcome corresponds to the systemic
impact generated on its stakeholders, including
shareholders, in terms of economic value cre-
ation (revenues and profitability as well as share-
holders’ reward through dividends and share
repurchases), technologies and innovation for
the automotive sector and racing, economic and
employment benefits for the local area and the
affected communities, experience, know-how and
talent development for its employees, driving per-
formance, design and exclusivity for its clients.
Finally, within actual externalities, GHG emission,
waste and scraps represent the main negative
consequences of Ferrari activities.
For a better understanding of Ferrari’s value chain,
please refer to “Overview of Our Business” chapter.
SPORTS CARS
Within our sports car line-up, our offer comprises
four main pillars: Range, Special Series, Icona and
Supercar. Our current product portfolio includes
seven Range models, three Special Series models,
one limited edition Icona model and one Supercar
model. We also produce limited edition One-Off cars
from time to time. In 2024, we launched three new
models: 12Cilindri, 12Cilindri Spider, and F80.
Our diversified product offering may include
different architectures, engine sizes, technologies,
body styles and seats.
We target end clients seeking high performance
cars with distinctive design, state-of-the-art technol-
ogy and outstanding driving dynamics to maximize
driving emotions. Our broad product portfolio is
designed to fulfill the strategy of “different Ferrari
for different Ferraristi, different Ferrari for different
moments”, which means being able to offer a highly
differentiated product line-up that can meet the
varying needs of current and new customer seg-
ments (in terms of sportiness, comfort, on-board
space and design, amongst others) and that can
allow our existing clients to use a Ferrari in various
moments of their lives.
We believe that our clients can be divided into
two main categories: on the one hand, the “Sports
Car Driver”, a client looking for an elegant and under-
stated design, who likes driving cars in a variety of
locations and conditions, alone or with passengers,
and who uses Ferrari for longer journeys; on the
other hand, the “Pilot”, a client looking for a high per-
forming and extreme sports car, who intends to
drive cars on track and on challenging roads, and
who is looking for an exciting driving experience.
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We are actively engaged in after sales activities driv-
en, among other things, by the objective of preserv-
ing and extending the market value of the cars we
sell. We believe our cars’ performance in terms of
value preservation after a period of ownership sig-
nificantly exceeds that of any other brand in the lux-
ury car segment.
In addition, we offer retail client financing for
the purchase of our cars through the operations of
Ferrari Financial Services (“FFS”) in all our markets.
Through FFS, we offer a range of flexible, bespoke
financial and ancillary services to clients (both cur-
rent and new) interested in purchasing a wide range
of cars, from our current product range to older
pre-owned and classic models. FFS also provides
special financing arrangements to a selected group
of our most valuable and loyal customers.
Our markets are clustered into: (i) Europe, Middle
East and Africa (“EMEA”), (ii) Americas, (iii) Mainland
China, Hong Kong and Taiwan and (iv) Rest of Asia-
Pacific (“APAC”), which represented respectively
45.1 percent, 29.1 percent. 8.4 percent and 17.3 per-
cent of unit shipped in 2024. For more details, please
refer to “Overview of Our Business—Sports Car
Line-Up” paragraph.
For additional information about our products,
services and markets please refer to “Overview of
Our Business—Sports Car Line-Up” paragraph.
RACING
Participation in the FIA Formula 1 World Championship
with Scuderia Ferrari and in the World Endurance
Championship with the Ferrari Endurance Team is a
core element of our marketing effort and promotion-
al activities, as well as an important source of inno-
vation for the support of the technological advance-
ment of Ferrari’s product portfolio. We also compete
in the F1 Esports Championship with the Scuderia
Ferrari Esports Team and we own the Mugello racing
circuit in Scarperia, near Florence, which we rent to
racing events organizers. Each of these items is fur-
ther discussed below.
For additional information about our products,
services and markets please refer to “Overview of
Our Business—Racing” paragraph.
LIFESTYLE
The role of Ferrari lifestyle is to foster growth by
broadening our customers’ base and expanding our
value proposition beyond our core business, while
preserving our brand’s DNA, its heritage and values.
The goal and mission of our lifestyle strategy is
to bring to life a universe that encapsulates Ferrari’s
DNA while accompanying our clients through differ-
ent stages and moments of their lives.
Over the past years, to strengthen brand desir-
ability, Ferrari entered into the personal luxury goods
segment, a critical segment to broaden our client base,
amplifying cultural relevance for the brand especially
for future generations. We also launched our cloth-
ing and apparel collection through dedicated fashion
shows. We created a new organizational structure,
formed by a dedicated and talented team with fash-
ion and luxury expertise based in Milan and working
closely with our team in Maranello. We rationalized
our licenses by terminating approximately half of our
license agreements where the product offering and
distribution was not consistent with the positioning of
the Ferrari brand. We completed the rationalization
of the retail network by closing 7 franchised stores
and 4 directly operated stores considered unsuitable
for Ferrari’s luxury positioning. We have since relo-
cated and restyled our existing flagship boutiques
and opened 3 new ones in the United States. Our
international network of Ferrari Stores consisted of
15 Ferrari-owned directly operated stores and 2 fran-
chised stores as of December 31, 2024.
Ferrari Lifestyle has three pillars: Personal
Luxury Goods, Collectibles and Experience. The
Personal Luxury Goods pillar is dedicated to our
own refined collection – accessories, apparel and
selected merchandising – embodying the style, cre-
ativity and quality that we stand for, balancing exclu-
siveness and inclusiveness through a carefully com-
bined mix of product categories. Importantly, we will
continue to strengthen partnerships with selected
licensees, which will allow us to play in complemen-
tary territories/categories while being loyal to our
brand’s DNA and positioning.
The Collectibles pillar is built on the concept
of collectability by enlarging and customizing the
portfolio of available Ferrari tokens and the offer of
Ferrari branded products such as high-end watches
and high-end writing instruments, consumer elec-
tronics, sportswear, toys, leading video games, and
other accessories.
Finally, the third pillar is Experience, through
which we intend to nurture our heritage and cel-
ebrate our craftsmanship through dedicated and
tailor-made experiences. We capture the essence
of the Ferrari spirit by immersing customers in
the racing history, passion and values of Ferrari,
through our Ferrari museums in Modena and
Maranello (which attracted more than 850,000 visi-
tors in 2024), Il Cavallino restaurant in Maranello and
our theme parks in Abu Dhabi and Spain.
For additional information about our products,
services and markets please refer to “Overview of
Our Business—Lifestyle” paragraph.
INTERESTS AND VIEWS OF STAKEHOLDERS
We believe it is important to develop forms of com-
munication and collaboration with both our internal
and external stakeholders that allow us to under-
stand their needs, interests, and expectations.
Our approach to engaging stakeholders aims
for honest, clear, and effective communication and
consultation, based on constant dialog. Fully under-
standing the needs and perspectives of our stake-
holders is a fundamental part of the value genera-
tion process (business model) and the definition of
183
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
our strategy which we continuously strive to pro-
mote both inside and outside our organization.
We believe that this approach is a key element of
sustainable and lasting growth, with a view to concil-
iate interests and expectations.
With this in mind, over the years we set an ongoing
process of stakeholder engagement carrying out
initiatives with different levels of interaction and
methods of involvement.
Our Stakeholder Engagement Practice, inspired by the values and
principles of the Code of Conduct, seeks to give all directors, managers
and employees of Ferrari, and anyone else working for it or on its behalf,
guidelines on the right methods and forms of interaction with different
stakeholders.
In line with the Stakeholder Engagement Practice, in
2024 we carried out specific activities to enhance
the voice of our stakeholders on sustainability topics.
These engagement activities are an important
part of the sustainability approach that helps us
identify potential updates in our sustainability impact
areas, risks and opportunities, as well as support
management in achieving the Company’s objectives.
For that reason, according to the Stakeholder
Engagement Practice, the results are analyzed to
come up with suitable action plans to constantly
improve company performance, on the basis of
expectations of primary interest to its stakeholders.
To this end, Ferrari ensures that the results
are documented and communicated appropri-
ately inside and outside of the Company, in part to
respond to the points of focus raised in interactions
with stakeholders.
Regarding the engagement by the Board and/or
any of its members, the Chairman of the Board shall
ensure that the Board is informed at the first appro-
priate meeting about the developments and signif-
icant contents of the engagement that has taken
place with the stakeholders.
STAKEHOLDERS
Br
an
d L
ov
er
s
Fe
rr
ar
ist
i
De
ale
rs
Su
pp
lie
rs
an
d
Sh
ar
eh
ol
de
rs
Fin
an
cia
l C
om
mu
nit
y
Lic
en
sin
g
Pa
rt
ne
rs
Bu
sin
es
s a
nd
Sp
on
so
rs
Em
pl
oy
ee
s a
nd
Tr
ad
e U
nio
ns
Go
ve
rn
me
nt,
Re
gu
lat
or
s a
nd
Co
m
mu
nit
y
an
d U
niv
er
sit
y
Me
dia
a
nd
In
flu
en
ce
rs
Sp
or
ts
In
sti
tu
tio
ns
En
thu
sia
st
s a
nd
184
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
STAKEHOLDER DIALOGUE
Stakeholders
Areas of interest
Communication methods
Enthusiasts and brand lovers
•
Racing
•
Sports Cars
•
“Ferrari classiche”
•
Brand Value
•
Innovation
•
Lifestyle
•
Motorsport events
•
Sports cars unveilings
•
Advertising
•
Earned media, website, social media
Ferraristi
•
Image and brand reputation
•
Clients satisfaction
•
Product technology, design quality and
safety
•
Privacy and security
•
“Ferrari classiche”
•
Client relations: client and driving
events
•
Client satisfaction survey
•
Media, website, social media
Business and licensing partners
•
Image and brand reputation
•
Continuity of the service
•
Contract terms and conditions
•
Financial soundness
•
Meetings
•
Website
Government, regulators and sports
institutions
•
Compliance with the law
•
Sport fair play
•
Dialogs concerning new regulations
and available technologies
•
Racing
•
Annual Report
•
Website
Employees and trade unions
•
Motivation and development
•
Work-life balance
•
Welfare
•
Health, safety and well-being
•
Equal opportunities
•
Industrial relations
•
Ethical business conduct
•
Induction for new employees and
training programs
•
Internal initiatives
•
Meetings with Top Management
•
Collective bargaining agreements
•
Participation in management-worker
health and safety committees
•
Website, social media
Sponsors
•
Racing
•
Image and brand reputation
•
Racing
•
Website, social media
Community and universities
•
Support local initiatives
•
Employment support
•
Partnerships with universities
•
Meeting and local events
•
Website, social media
•
Sustainability workshops
Media and influencers
•
Transparency
•
Racing
•
Image and brand reputation
•
Product technology, design quality and
safety
•
Racing
•
Press releases
•
Website, social media
•
Communication with journalists
•
New model/technology launch events
Suppliers(1)
•
Continuity of the service
•
Supplier risk assessment
•
Contract terms and conditions
•
Website
•
Meeting
•
Contractual documents
Financial community and shareholders
•
Market transparency
•
Financial soundness
•
Economic performance
•
Corporate governance
•
Financial earnings
•
Investor conference
•
Roadshow
•
Website
Dealers(2)
•
Image and brand reputation
•
Transparency
•
Motivation and development
•
Communication with Management
•
Convention
•
Training courses
•
Website
(1)
Suppliers do not include engagement of workers
in the value chain.
(2)
Dealers do not include engagement of workers
in the value chain.
186
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
As explained in the “ESRS 2—General disclosures—
Strategy” paragraph, in order to define our strategy
and our business model, particularly clients, inves-
tors and institutions views are taken into account.
We support our brand value by promoting a
strong connection with the Ferrari community: our
enthusiasts and brand lovers and Ferraristi(3). We
focus on strengthening this connection by reward-
ing our most loyal clients through a range of initia-
tives. In addition, we are able to collect their opinions
and trends through our satisfaction surveys and
other activities. For information about the organiza-
tion and the purpose of the surveys, as well as how
the outcomes are taken into account by Ferrari,
please refer to “S4—Consumers and End-user—
Stakeholder Engagement”.
In our strategy, we also take into consideration the
regulatory situation on sustainability matters that
affect our business. For that reason, in our Scenario
Analysis which includes transitional risks, we ana-
lyzed, for each country in which Ferrari operates
through points of sale, the regulatory situation
concerning the ICE powertrain. In this respect, we
do not pursue direct dialogue with national and in-
ternational institutions, nor with other regulatory
bodies. However, we are part of ACEA (European
Automobile Manufacturers’ Association) and other
associations that represent the interests of vehi-
cles manufacturers.
On the other hand, as far as local institutions are
concerned, we have a direct dialogue, especially with
the administrations of the municipalities of Maranello
and Fiorano, regarding activities for the local com-
munities and regarding administrative fulfillments.
We rely on a significant number of suppliers
who play an important part in the success of the
Group. For the sourcing of certain key compo-
nents with high technological specifications, we
have developed strong synergistic relationships
with some of our suppliers, which are considered
“key strategic innovation partners”. We continue to
invest significantly to minimize our environmental
impact. Our vehicles must comply with extensive
regional, national, and local laws and regulations,
as well as industry self-regulations (including those
that regulate vehicle safety).
The high attention and care towards our prod-
ucts are the foundation upon which our success is
built, and this is achieved thanks to the efforts of
our employees.
We are a dual-listed Company, therefore, the
financial discipline, enhanced through the relation-
ship with the financial community and sharehold-
ers, further supports the Company in pursuing its
business targets.
Furthermore, we collaborate with universities
and high schools to provide scholarships to talented
students. In 2024, we engaged with our employees,
participants of both “Scuola dei Mestieri” and “Scuola
delle Professioni”, and MUNER students through
face-to-face workshops that had a dual purpose: to
further communicate the importance of sustainabil-
ity and explain what it stands for within Ferrari, and
to collect their priorities and suggestions.
Finally, we regularly engage with our investors
to better understand what they consider to be the
main ESG drivers for Ferrari, as well as participate
every year in a variety of ESG questionnaires such as
the S&P Global Corporate Sustainability Assessment
(CSA), ranking in the top quartile of our industry in the
last assessment, the CDP Climate Change and CDP
Water questionnaires, obtaining a “A-” and “B” rating
respectively in 2024. All these activities allowed us to
further strengthen our materiality analysis.
In 2024, no amendments to Ferrari strategy and
business model occurred.
The sustainability statement may not include
every impact, risk and opportunity or additional
entity-specific disclosure that each individual stake-
holder (group) may consider important in its own
particular assessment. For more information about
the engagement of stakeholder in the process of
double materiality please see paragraph “Double
materiality assessment methodology”.
187
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
IMPACTS, RISKS AND
OPPORTUNITIES MANAGEMENT
The materiality analysis is the process of identifying the
topics that are relevant for the Group, these are based
on an assessment of impacts, risks and opportunities.
In 2024, we conducted the double material-
ity analysis according to the requirements of the
European Sustainability Reporting Standard and
the related guidelines(4). We re-assess our sustain-
ability matters annually, based on regulatory devel-
opments, business developments and stakeholder
engagement(5). We updated the analysis of the most
relevant sustainability topics (materiality analysis) for
the Group and our stakeholders, to better reflect the
sustainability context developments, the changes
in our drivers and goals, as well as our 2022-2026
Strategic Plan and sustainability strategy.
The table below, for comparative purposes, shows the link between
ESRS topics and Ferrari’s material topics.
ESRS Topic
Sub Topic
Sub-sub topic
Ferrari material topics
Climate change
•
Climate Change
•
Mitigation Energy
–
Climate change
Pollution
•
Substances of concern
•
Substances of very high concern
–
Natural resources
management
Resource use and
circular economy
•
Waste
•
Resources inflows, including resource use
•
Resource outflows related to products
and services
–
Circular economy
Own workforce
•
Working conditions
•
Work-life balance
•
Health and safety
Health, safety and well-
being
Own workforce
•
Equal treatment and opportunities for all
•
Employment and inclusion of
persons with disabilities
•
Employment and inclusion of
persons with disabilities
•
Diversity
Diversity & Inclusion
Own workforce
•
Other work-related rights
•
Privacy
Data responsibility,
privacy and cybersecurity
Own workforce
•
Working conditions
•
Equal treatment and opportunities for all
•
Secure employment
•
Working time
•
Adequate wages
•
Training and skills
development
Talent attraction,
retention and
development
Own workforce
•
Equal treatment and opportunities for all
•
Training and skills
development
Talent attraction, retention
and development
Workers in the value
chain
•
Equal treatment and opportunities for all
•
Gender equality and equal pay
for work of equal value
•
The employment and inclusion
of persons with disabilities
•
Measures against violence and
harassment in the workplace
•
Diversity
Diversity & Inclusion
Workers in
the value chain
•
Other work-related rights
•
Child labor
•
Forced labor
Human Rights
Affected
communities
•
Communities’ economic, social
and cultural rights
•
N/A
Responsibility towards
the community and future
generations
Consumers
and/or end-users
•
Information-related impacts
for consumers and/or end-users
•
Privacy
Data responsibility,
privacy and cybersecurity
Consumers
and/or end-users
•
Personal safety of consumers
and/or end-users
•
Health and safety
•
Security of a person
Quality & safety
Consumers
and/or end-users
•
Information-related impacts for
consumers and/or end-users
•
Social inclusion of consumers
and/or end-users
•
Access to quality information
•
Responsible marketing
practices
Ethics and business
conduct
Business conduct
•
Corporate culture
•
Protection of whistle-blowers
•
Corruption and bribery
•
Prevention and detection
training
Ethics and business
conduct
Business conduct
Management of relationships with suppliers
including payment practices
-
Ethics and business
conduct
188
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
For the complete list and description of relevant im-
pacts, risks and opportunities and the Double mate-
riality methodology please refer to the table present
in the “ESRS 2—General disclosures—Double materi-
ality assessment methodology” section.
Compared to the list of material topics pub-
lished in 2023, the topics “Product, technology, qual-
ity, design and safety” has changed into “Quality
and Safety”, the topic “Ethics and human rights”
has been divided into “Human Rights” and “Ethics
and Business Conduct”. This is due to the rational-
ization of the material topics according to the new
methodology applied in line with the list of topics,
sub-topics and sub-sub-topics into the ESRS. The
topic “Supply chain responsible management” has
been deleted since all value chain-related IROs have
been included into the specific topics they refer to.
The topic “Natural resources management and bio-
diversity” has become “Natural resources manage-
ment” since biodiversity matters have emerged as
not relevant. “Raw materials and circular economy”
has changed to “Circular Economy”.
DOUBLE MATERIALITY
ASSESSMENT METHODOLOGY
To determine the disclosures in our Sustainability
Statement, we followed a Double materiality assess-
ment process with four main steps:
1.
Analysis of the internal and external context
2.
Identification of potential sustainability impacts,
risks and opportunities
3.
Impacts, risks and opportunity evaluation
4.
Validation of the impacts, risks and opportunities
The process to identify risks and to assess which are
material is integrated in the Risk Management sys-
tem (ERM). In particular, sustainability-related risks
are identified through a specific classification. For
further information see “Risk Management Process
and Internal Control System”.
1. ANALYSIS OF THE INTERNAL
AND EXTERNAL CONTEXT
We have analyzed Ferrari’s strategy, targets and
ambitions in the field of sustainability. This was fol-
lowed by a benchmarking analysis that provided
us an overview of potential sustainability matters.
Additionally, we analyzed risks relevant to the Group
in the ESG-related areas and internal policies in the
field of sustainability, considering Ferrari’s three di-
mensions and their value chains considering all our
business relationships and geographies. The exter-
nal context analysis included the identification of
our key stakeholders (see “ESRS 2—General disclo-
sures—Strategy—Interests and views of stakehold-
ers”), the mapping of Ferrari business relationship
and upstream and downstream value chain (see
“S2—Workers in the value chain”).
2. IDENTIFICATION OF IMPACTS,
RISKS AND OPPORTUNITIES
Within this stage, we started from a deeper analysis
of the ESRS list of topics, sub-topic and sub-sub topics.
According to the results of the context analysis and
the previous GRI-aligned materiality assessments,
we identified the impacts and opportunities potential-
ly applicable to Ferrari. Specific impacts have been
identified considering the positive or negative, actual
or potential effects of Ferrari on different stakehold-
ers and the environment, including impacts on hu-
man rights, across our activities and business rela-
tionships in the value chain. Moreover, we integrated
the potential risks identified inside the ERM system.
During the identification of risks and opportunities,
dependencies and external impacts have been con-
sidered, particularly the risks and opportunities aris-
ing from the impacts and dependencies’ assessment.
3. IMPACTS, RISKS AND
OPPORTUNITY EVALUATION
In this phase, we defined the criteria and scales to as-
sess the IROs. In particular, we assessed our impact
(inside-out perspective) taking into account their
severity and likelihood. The severity was assessed
using 1 (small) to 5 (extreme) scoring, considering
scale, scope and for negative impact irremediabili-
ty. The likelihood was assessed using 1 (unlikely) to 5
(very likely) scoring. Both negative and positive im-
pacts were evaluated gross (before any mitigating
actions). For the financial materiality analysis (out-
side-in perspective), risks were assessed according
to the ERM methodology involving residual evalua-
tion by severity and likelihood. Whereas opportuni-
ties were assessed according to criteria and met-
rics defined on the basis of the ERM methodology,
considering residual evaluation by severity and like-
lihood. For risks, three variables (likelihood, impact
and preparedness) are assessed independently on
the basis of company metrics; these elements are
then multiplied and the product obtained through
this operation, defined overall risk exposure, is the
input for placing risks on a heat map that has four
different risk areas (Tier 1, Tier 2, Watching Area,
Residual Area). The severity was assessed using 1
(very low) to 5 (very high) scoring, considering four
different drivers of evaluation: strategic/market,
economic/financial, operational and reputational.
Additionally, the final score of severity resulted also
from considering the preparedness, which is the
degree of control, protection and readiness that
Ferrari ensures thanks to the current actions, pro-
cesses and levers, and their effectiveness. The likeli-
hood was assessed using 1 (very low) to 5 (very high)
scoring considering three different drivers: qual-
itative (uncertain contexts), quantitative (measur-
able contexts) and frequency (predictable contexts).
During the evaluation process we assessed each
IROs within the most relevant time horizon, consid-
ering short, medium and long term as described in
189
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ESRS 1 and considering the impact related both to
our own operations and to our upstream and down-
stream value chain.
In particular, the Sustainability function involved
the Ferrari competent departments to evaluate each
impact and opportunity, through one-to-one inter-
views. The evaluation of sustainability related risks
has been conducted through the ERM assessment.
Moreover, the impact evaluation process has
included consultation with our key stakeholders.
Since 2018, Ferrari engages with key stakeholders
(clients, dealers, universities, schools and enthusi-
asts) to assess severity and likelihood of impacts
that are relevant for stakeholders and validate the
impacts that have been assessed by Ferrari as mate-
rial. In particular in 2024, we carried out a stake-
holder engagement with investors through a per-
ception study and dedicated ESG meetings, as well
as with employees and MUNER students through in
person workshops. The results were included into
the Double materiality assessment.
4. VALIDATION OF THE IMPACTS,
RISKS AND OPPORTUNITIES
The Sustainability function defined a quantitative
threshold mechanism, based on the relevance as-
sessment previously performed. For both impacts
and opportunities, the threshold has been set higher
than 8 as a result of the product between severity
and likelihood (on a maximum of 25). To identify the
risks that are relevant for the materiality assess-
ment, the threshold has been defined as to include all
risks that are within the two highest levels of overall
risks exposure (Tier 1, Tier 2). This process enables
us to identify the material IROs.
The Double materiality assessment was pre-
pared under the supervision of Ferrari Group’s Chief
Financial Officer and the results were approved by
the Executive Officers of the Group and by the Audit
Committee of the Board of Directors.
Based on the materiality assessment, Ferrari has
determined the Disclosure Requirements related to
each material IROs to be disclosed in this Statement
in line with ESRS 1, AR 16 and EFRAG ID 177.
The table below presents the material impacts,
risks and opportunities and their related topic, in the
same order as reported in ESRS 1, AR 16. The mate-
rial IROs reveal our strategic sustainability priorities
and contribute to adapting our strategy as shown
in the columns “Sustainability strategy pillars” that
identify how the impacts are connected to the
Ferrari strategy. For more details on our sustainabil-
ity strategy pillars and how sustainability topics are
connected see the table in “ESRS 2—General disclo-
sures—Strategy”.
ESRS
FERRARI
MATERIAL TOPICS
MAIN IMPACTS 2024(1)
NATURE
TIME
HORIZON(2)
PERIMETER (3)
E1
Climate change
Energy consumption (within the organization) and related Greenhou-
se gas emissions (Scope 1 / Scope 2) with negative impact on climate
change and the community (e.g. Maranello)
Act/
Neg
Short
term
Own
operations
Energy consumption and related GHG emissions for downstream acti-
vities (e.g. outbound logistics, vehicles usage and use of sold products)
(Scope 3) with negative impact on climate change
Act/
Neg
Short
term
Downstre-
am
Energy consumption and related GHG emissions for upstream acti-
vities (e.g. raw material purchased and inbound logistics) (Scope 3)
with negative impact on climate change
Act/
Neg
Short
term
Upstream
E2
Natural resources
management
Group’s contribution to pollution due to substances of concern and
substances of very high concern
Pot/
Neg
Short
term
Own
operations
E5
Circular economy
Production of hazardous / non-hazardous waste by the organization
Act/
Neg
Short
term
Own
operations
Production of hazardous / non-hazardous waste by the supply chain
Act/
Neg
Short
term
Upstream
Promotion of circularity within the value chain to reduce the use
of natural resources and waste produced by suppliers
Act/Pos
Short
term
Upstream
Reduction of waste thanks to the increase of durability, reparability
and recyclability of spare parts (e.g. racing and sports cars) or pro-
ducts (e.g. lifestyle)
Pot/
Pos
Short
term
Own
operations
S1
Talent attraction,
retention and
development
Positive impacts on employees’ motivation and sense of belonging
thanks to secure employment and working time, competitive remu-
neration, benefits, training opportunities and career development
Act/Pos
Short
term
Own
operations
Loss of knowledge and key skills due to high turnover or low deve-
lopment with negative indirect impacts on stakeholders (e.g. custo-
mers)
Pot/
Neg
Medium
term
Own
operations
Diversity
and inclusion
Impacts on Ferrari’s employee’s satisfaction and engagement by
promoting awareness and culture about diversity and inclusion
Act/Pos
Short
term
Own
operations
Health, safety
and well-being
Work-life balance, attention to mental health with positive impacts
on employees’ physical and mental well-being
Act/Pos
Short
term
Own
operations
Work-related injuries (employees, workers whose work or workpla-
ce is controlled by Ferrari)
Pot/
Neg
Short
term
Own
operations
Data responsibili-
ty, privacy and
cybersecurity
Willful and/or unintentional security breaches involving confidential
business information, stakeholder privacy and losses of stakeholder
data, for the detriment of stakeholders (employees)
Pot/
Neg
Short
term
Own
operations
S2
Diversity
and inclusion
Incidents of discrimination (including gender discrimination in remu-
neration) and/or abuse along the value chain
Pot/
Neg
Short
term
Upstream
Human rights
Violation of human rights along the value chain (e.g. right to free-
dom of association and collective bargaining, child labor, forced or
compulsory labor also related to conflict minerals) with impacts on
human dignity
Pot/
Neg
Short
term
Upstream
S3
Responsibility
towards the com-
munity and future
generations
Support community education through general and technical
programs
Act/Pos
Short
term
Own
operations
Impact on the community (e.g. Maranello) wealth thanks to the em-
ployment (e.g. job opportunities for local students, financial stability
of employees)
Act/Pos
Short
term
Own
operations
S4
Quality and Safety
Reduced level of vehicle safety and quality with consequent increa-
sed risks for clients
Pot/
Neg
Short
term
Own
operations
Ethics and Busi-
ness Conduct
Reduced customer satisfaction/experience and limited customer
choice in the event of lack of access to information or in the event of
access to partial or misleading information
Pot/
Neg
Short
term
Own
operations
Data responsibi-
lity, privacy and
cybersecurity
Willful and/or unintentional security breaches involving confidential bu-
siness information, stakeholder privacy and losses of stakeholder data,
for the detriment of stakeholders (clients)
Pot/
Neg
Short
term
Own
operations
G1
Ethics and Busi-
ness Conduct
Promote awareness and culture about ethics of Ferrari management,
employees, business partners and other stakeholders, through speci-
fic tools (Whistleblowing channel) and training
Act/Pos
Short
term
Own
operations
Impacts on suppliers, especially SMEs, due to late payments on the
contractual payment terms
Pot/
Neg
Medium
term
Own
operations
(1)
All material negative impacts on social topics are related to individual incidents.
(2)
We consider as short-term time horizon within 1 year; for the medium-term time horizon between 1 and 5 years; and for the long-
term time horizon beyond 5 years.
(3)
For the composition of the value chain of Ferrari N.V. please refer to “ESRS 2—General disclosures—Our Business Model” paragraph.
SUSTAINABILITY
STRATEGY PILLAR
BUSINESS DIMENSIONS
TYPE OF INVOLVEMENT
IMPACTED STAKEHOLDER
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Caused through group’s activi-
ties and directly linked through
its business relationship
•
Own workforce
•
Affected communities
•
Workers in the value chain
•
Environment
•
Consumers
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Directly linked through
its business relationship
•
Own workforce
•
Affected communities
•
Workers in the value chain
•
Environment
•
Consumers
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Directly linked through
its business relationship
•
Own workforce
•
Affected communities
•
Workers in the value chain
•
Consumers
•
Environment
Reducing our environmental
footprint
Sports Cars/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Affected communities
•
Workers in the value chain
•
Environment
•
Consumers
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Affected communities
•
Workers in the value chain
•
Environment
•
Consumers
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Directly linked through
its business relationship
•
Affected communities
•
Workers in the value chain
•
Environment
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Environment
Reducing our environmental
footprint
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Environment
Being the employer of choice
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Consumers
Being the employer of choice
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Consumers
Being the employer of choice
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
Being the employer of choice
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
Being the employer of choice
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Caused through group’s activi-
ties and directly linked through
its business relationship
•
Own workforce
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Directly linked through
its business relationship
•
Workers in the value chain
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Directly linked through
its business relationship
•
Workers in the value chain
Creating and sharing value
with the community
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Affected communities
Creating and sharing value
with the community
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Affected communities
Exceeding expectations
Sports Cars/Racing
Caused through group’s
activities
•
Consumers
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Consumers
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Caused through group’s activities
and directly linked through its
business relationship
•
Consumers
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Affected communities
•
Workers in the value chain
Proactively fostering best
practice governance
Sports Cars/Racing/Lifestyle
Caused through group’s
activities
•
Own workforce
•
Affected communities
•
Workers in the value chain
The column “Perimeter” identifies where the material impacts are concentrated in Ferrari’s
own operations and value chain, whereas, the column “Business dimensions” identifies where
the material impacts are concentrated in Ferrari’s business model.
192
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ESRS
FERRARI
MATERIAL
TOPICS
MAIN RISKS 2024
SUSTAINABILITY
STRATEGY PILLAR
BUSINESS
DIMENSIONS
DEPENDENCIES
E1
Climate change
Fast paced and uncertain laws and
technical regulations proliferation:
Regulatory tightening on environmental
(e.g., CO2 reduction), enhanced by
societal pressures and uncertain
in timing/type of future approval
constraints (e.g., EU7 emissions, short
lead time between disclosure of
technical requirements and required
date of compliance)
Reducing our
environmental
footprint
Sports Cars/
Racing
–
Challenge in targeting Ferrari Carbon
Footprint strategy related to Scope 3
Indirect Emissions with main focus on
Upstream
Reducing our
environmental
footprint
Sports Cars/
Racing/Lifestyle
Energy consumption
and related GHG
emissions for upstream
activities (e.g. raw
material purchased
and inbound logistics)
(Scope 3) with negative
impact on climate
change
S1
Talent
attraction,
retention
and
development
Usage of external resources that can
have critical competence and know-
how, and deal with strategic projects
Being the employer
of choice
Sports Cars/
Racing/Lifestyle
Dependency on human
resource
Cybersecurity incidents deriving
from successful external/internal
cyber attacks (phishing, malware,
ransomware, social engineering, etc.)
on Ferrari or its Third Parties
Being the employer
of choice
Sports Cars/
Racing/Lifestyle
Willful and/
or unintentional
security breaches
involving confidential
business information,
stakeholder privacy and
losses of stakeholder
data, for the detriment
of stakeholders
(employee)
Willful and/or
unintentional
security breaches
involving confidential
business information,
stakeholder privacy and
losses of stakeholder
data, for the detriment
of stakeholders (clients)
S4
Quality and
Safety
Fast paced and uncertain laws and
technical regulations proliferation:
Regulatory tightening on safety (e.g.,
system, speed limits, autonomous
drive / ADAS), noise (i.e., limits on dB
emitted) and software update (e.g.
R156), enhanced by societal pressures
and uncertain in timing/type of
future approval constraints (e.g., EU7
emissions, short lead time between
disclosure of technical requirements
and required date of compliance)
Exceeding
expectations
Sports Cars/
Racing/Lifestyle
–
G1
Ethics and
business
conduct
Potential non-compliance with
Anticorruption Laws requirements
due to external context (e.g. regulatory
requirements’ tightening, engaging
with third-party vendors / agents with
questionable integrity)
Proactively fostering
best practice
governance
Sports Cars/
Racing/Lifestyle
–
193
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ESRS
FERRARI
MATERIAL
TOPICS
MAIN OPPORTUNITIES 2024
SUSTAINABILITY
STRATEGY PILLAR
BUSINESS
DIMENSIONS
DEPENDENCIES/
IMPACTS
E1
Climate
change
Energy efficiency: Using renewable energy
at a reduced cost plus investing in low
carbon technologies that could result
in lower carbon footprint, lower energy
consumption and lower energy costs
Reducing our
environmental
footprint
Sports Cars/Racing
Dependency on
natural resources
E5
Circular
Economy
Circular economy manufacturing initiatives
implemented: (1) use of recycled materials
(2) recovery of production waste for
recycling (3) projects aimed at ensuring an
extension of product life
Reducing our
environmental
footprint
Sports Cars/Racing/
Lifestyle
Dependency on
natural resources
S1
Talent
attraction,
retention and
development
Increased responsiveness to market
challenges by re-skilling and up-skilling
employees (e.g. for full-electric vehicles)
Being the employer
of choice
Sports Cars/Racing/
Lifestyle
-
Employee satisfaction & retention - The
matter includes adequate wages, training
and development of employees: attracting,
retaining and developing the best talent
through policies and practices related
to employees as an opportunity for the
company
Being the employer
of choice
Sports Cars/Racing/
Lifestyle
Positive impacts
on employees’
motivation and
sense of belonging
thanks to secure
employment and
working time,
competitive
remuneration,
benefits, training
opportunities and
career development
Diversity &
Inclusion
Diversity of governing body/executive
team - The capabilities and perspectives
of board/executive team members are
important for making robust decisions on
an ongoing basis
Being the employer
of choice
Sports Cars/Racing/
Lifestyle
Impacts on Ferrari’s
employee's
satisfaction and
engagement
by promoting
awareness and
culture about
diversity and
inclusion
S3
Responsibility
towards the
community
and future
generations
Improved reputation and acquisition of
new skills/expertise through stronger
relationships with local communities and
wealth generation (e.g. collaboration with
schools and universities, local job creation,
support for small local businesses)
Creating and
sharing value with
community
Sports Cars/Racing/
Lifestyle
Support community
education through
general and
technical programs
Material risks and opportunities are concentrated on Ferrari’s own
operations. The columns “Business dimensions” identify where in
Ferrari’s business model the material risks and opportunities are
concentrated. The columns “Sustainability strategy pillars” identify how
the impacts are connected to the Ferrari strategy.
The following environmental topics resulted as
not relevant according to the double materiality
assessment:
• Water Management (E3) has been evaluated as
not relevant since water consumption in busi-
ness as usual of Ferrari operations is not signif-
icant. According to Directive 2000/60/CE and
ARPAE screening, Ferrari sites are not located in
water risk areas. The Company has not carried
out consultations with affected communities re-
garding water and marine resource-related sus-
tainability assessments.
• Biodiversity (E4) has been evaluated as not
relevant since Ferrari sites are not located in
or near biodiversity-sensitive areas accord-
ing to Directive 2009/147/EC of the European
Parliament and of the Council on the conserva-
tion of wild birds, to Council Directive 92/43/EEC
on the conservation of natural habitats and of
wild fauna and flora, and Italian list of recognized
Protected Areas state by the Italian law. For this
reason, Ferrari has not identified and assessed
actual or potential impacts, dependencies, risks,
or opportunities related to biodiversity and eco-
systems across its own site locations or its up-
stream and downstream value chain. Similarly,
the Company has not identified or assessed its
dependencies on biodiversity and ecosystem
services, including any potential disruptions,
195
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
nor has it applied specific assessment criteria in
this regard. Ferrari has not conducted an eval-
uation of transition and physical risks and op-
portunities related to biodiversity and ecosys-
tems based on its impacts and dependencies,
nor has it considered systemic risks associated
with these factors. Moreover, the Company has
not carried out consultations with affected com-
munities regarding sustainability assessments
of shared biological resources and ecosystems.
In this context, Ferrari has not identified specific
sites, raw material production, or sourcing ac-
tivities that may negatively impact biodiversity
and ecosystems in relation to affected commu-
nities, nor has it engaged affected communities
in the materiality assessment where they could
be impacted. Additionally, the Company has not
assessed the effects of its operations on ecosys-
tem services relevant to affected communities,
nor has it defined measures to avoid negative
impacts. Where impacts are unavoidable, no
mitigation plans have been established to main-
tain the value and functionality of priority ser-
vices. Ferrari continues to monitor regulatory
developments and stakeholder expectations in
this area and will evaluate the need for further
assessments in the future.
Information about the Scenario Analysis was per-
formed taking into consideration climate-related
risks and includes consequences in terms of resil-
ience of the strategy are available at “E1—Climate
change—Climate Scenario Analysis” paragraph. No
other topic has been covered by a resilience analysis.
For the description of positive impacts, refer to
“S1—Own workforce and S3—Affected communities”
paragraphs. No positive impacts emerged from the
Double materiality assessment related to Workers in
the value chain and Consumers and End-user.
Considering the material risks and opportu-
nities, we identified current financial effects only
related to the risk ‘Fast paced and uncertain laws
and technical regulations proliferation’ resulting in
provisions for approximately €22 million being a por-
tion of “Environmental and other risk” (see Note 23—
Provisions of the Consolidated Financial Statement).
We do not have identified any significant risk of
material adjustment within the next annual reporting
period to the carrying amounts of assets and liabili-
ties reported in the related financial statements.
The double materiality assessment is an ongo-
ing process that may be impacted in time by sec-
tor-specific standards to be adopted or develop-
ments
in
stakeholder
expectations,
regulatory
developments, changes in risk management or new
business developments.
TABLE APPENDIX B
Disclosure Requirement
and related data point
SFDR (1) reference
Pillar 3 (2) reference
ESRS 2 GOV-1
Board’s gender diversity paragraph 21 (d)
Indicator number 13 of Table #1
of Annex 1
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10 Table #3
of Annex 1
ESRS 2 SBM-1
Involvement in activities related to fossil
fuel activities paragraph 40 (d) i
Indicators number 4 Table #1
of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission Implementing
Regulation (EU) 2022/2453(6)
Table 1: Qualitative information
on Environmental risk and
Table 2: Qualitative information
on Social risk
ESRS 2 SBM-1
Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9 Table #2
of Annex 1
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14 Table #1
of Annex 1
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
ESRS E1-1
Transition plan to reach climate neutrality
by 2050 paragraph 14
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013;
Commission Implementing
Regulation (EU) 2022/2453 Template
1: Banking book-Climate Change
transition risk: Credit quality of
exposures by sector, emissions and
residual maturity
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4 Table #2
of Annex 1
Article 449a
Regulation (EU) No 575/2013;
Commission Implementing
Regulation (EU) 2022/2453 Template
3: Banking book – Climate change
transition risk: alignment metrics
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high
climate impact sectors) paragraph 38
Indicator number 5 Table #1 and Indicator n.
5 Table #2 of Annex 1
ESRS E1-5
Energy consumption
and mix paragraph 37
Indicator number 5 Table #1
of Annex 1
ESRS E1-5
Energy intensity associated with activities
in high climate impact sectors paragraphs
40 to 43
Indicator number 6 Table #1
of Annex 1
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1 and 2 Table #1
of Annex 1
Article 449a; Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book – Climate change transition
risk: Credit quality of exposures
by sector, emissions and residual
maturity
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3 Table #1
of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: alignment metrics
Benchmark Regulation (3)
reference
EU Climate Law (4)
reference
Disclosure
Commission Delegated
Regulation (EU) 2020/1816(5),
Annex II
ESRS 2 - General disclosures | Governance, Diversity Policy
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 - General disclosures | Governance
ESRS 2 - General disclosures | Governance | Our Decision-Making Process,
Statement on due diligence
Delegated Regulation (EU)
2020/1816, Annex II
Ferrari is not active in fossil fuel, chemicals production, controversial
weapons and in the cultivation and production of tobacco
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 - General disclosures | Strategy
Delegated Regulation (EU)
2020/1818(7), Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 - General disclosures | Strategy
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 - General disclosures | Strategy
Regulation (EU)
2021/1119, Article 2(1)
E1 - Climate Change | Our Strategy to Reach Carbon Neutrality by 2030
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g),
and Article 12.2
E1 - Climate Change | Our Strategy to Reach Carbon Neutrality by 2030
Delegated Regulation (EU)
2020/1818, Article 6
E1 - Climate change | Our targets
E1 - Climate change | Efficient energy use
E1 - Climate change | Efficient energy use
E1 - Climate change | Efficient energy use
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
E1 - Climate change | Our GHG Emissions
Delegated Regulation (EU)
2020/1818, Article 8(1)
E1 - Climate change | Our GHG Emissions
Disclosure Requirement
and related data point
SFDR (1) reference
Pillar 3 (2) reference
ESRS E1-7
GHG removals and carbon
credits paragraph 56
ESRS E1-9
Exposure of the benchmark
portfolio to climate-related
physical risks paragraph 66
ESRS E1-9
Disaggregation of monetary
amounts by acute and chronic
physical risk paragraph 66 (a)
ESRS E1-9
Location of significant assets at
material physical risk paragraph 66 (c).
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47;
Template 5: Banking book - Climate
change physical risk: Exposures
subject to physical risk.
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by energy-
efficiency classes paragraph 67 (c).
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraph 34; Template
2:Banking book -Climate change
transition risk: Loans collateralised
by immovable property - Energy
efficiency of the collateral
ESRS E1-9
Degree of exposure of the
portfolio to climate- related
opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
ESRS E2-4
Amount of each pollutant listed
in Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air,
water and soil, paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1
Indicator number 1 Table #2 of Annex 1
Indicator number 3 Table #2 of Annex 1
ESRS E3-1
Water and marine
resources paragraph 9
Indicator number 7 Table #2
of Annex 1
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table #2
of Annex 1
ESRS E3-1
Sustainable oceans
and seas paragraph 14
Indicator number 12 Table #2
of Annex 1
ESRS E3-4
Total water recycled
and reused paragraph 28 (c)
Indicator number 6.2 Table #2
of Annex 1
ESRS E3-4
Total water consumption in m3 per net
revenue on own operations paragraph 29
Indicator number 6.1 Table #2
of Annex 1
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
Indicator number 7 Table #1
of Annex 1
ESRS 2- IRO 1 - E4 paragraph 16 (b)
Indicator number 10 Table #2
of Annex 1
ESRS 2- IRO 1 - E4 paragraph 16 (c)
Indicator number 14 Table #2
of Annex 1
ESRS E4-2
Sustainable land / agriculture
practices or policies paragraph 24 (b)
Indicator number 11 Table #2
of Annex 1
ESRS E4-2
Sustainable oceans / seas
practices or policies paragraph 24 (c)
Indicator number 12 Table #2
of Annex 1
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15 Table #2
of Annex 1
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2
of Annex 1
ESRS E5-5
Hazardous waste and radioactive
waste paragraph 39
Indicator number 9 Table #1
of Annex 1
ESRS 2- SBM3 - S1
Risk of incidents of forced
labour paragraph 14 (f)
Indicator number 13 Table #3
of Annex I
Benchmark Regulation (3)
reference
EU Climate Law (4)
reference
Disclosure
Regulation (EU)
2021/1119, Article 2(1)
E1 - Climate change | GHG removals and GHG mitigation projects financed
through carbon credits
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816,
Annex II
For fiscal year 2024, which corresponds to the first year of sustainability
report in accordance with ESRS, Ferrari has decided to make use of the
phase-in option in relation to the disclosure of the expected financial effects
of physical and material transition risks.
Not relevant according to Ferrari’s double materiality assessment
Not relevant according to Ferrari’s double materiality assessment
Not relevant according to Ferrari’s double materiality assessment
E5 - Resource use and circular economy | Resource outflows
E5 - Resource use and circular economy | Resource outflows
S1 - Own workforce | Human Rights
Disclosure Requirement
and related data point
SFDR (1) reference
Pillar 3 (2) reference
ESRS 2- SBM3 - S1
Risk of incidents of child
labour paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9 Table #3
and Indicator number 11
Table #1 of Annex I
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
ESRS S1-1
processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11 Table #3 of Annex I
ESRS S1-1
workplace accident prevention policy
or management system paragraph 23
Indicator number 1 Table #3 of Annex I
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table #3 of Annex I
ESRS S1-14
Number of fatalities and number
and rate of work- related accidents
paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I
ESRS S1-16
Unadjusted gender pay
gap paragraph 97 (a)
Indicator number 12 Table #1 of Annex I
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of Annex I
ESRS S1-17
Incidents of discrimination
paragraph 103 (a)
Indicator number 7 Table #3 of Annex I
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
paragraph 104 (a)
Indicator number 10 Table #1 and Indicator
n. 14 Table #3 of Annex I
ESRS 2- SBM3 – S2
Significant risk of child labour or forced
labour in the value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3
of Annex I
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9 Table #3 and Indicator
n. 11 Table #1 of Annex 1
ESRS S2-1
Policies related to value
chain workers paragraph 18
Indicator number 11 and n. 4 Table #3 of
Annex 1
ESRS S2-1
Non-respect of UNGPs on Business
and Human Rights principles
and OECD guidelines paragraph 19
Indicator number 10 Table #1 of Annex 1
ESRS S2-1
Due diligence policies on issues addressed
by the fundamental International
Labor Organisation Conventions 1 to 8,
paragraph 19
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph 36
Indicator number 14 Table #3 of Annex 1
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9 Table #3 of Annex 1 and
Indicator number 11 Table #1 of Annex 1
ESRS S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD
guidelines paragraph 17
Indicator number 10 Table #1 Annex 1
Benchmark Regulation (3)
reference
EU Climate Law (4)
reference
Disclosure
S1 - Own workforce | Human Rights
S1 - Own workforce | Human Rights
Delegated Regulation (EU)
2020/1816, Annex II
S1 - Own workforce | Human Rights
S1 - Own workforce | Human Rights
S1- Own workforce | Health and Safety, Our policy
S1 - Own workforce | Stakeholder Engagement
Delegated Regulation (EU)
2020/1816, Annex II
S1 – Own workforce | Health and Safety, Our metrics
S1 - Own workforce | Health and Safety, Our metrics
Delegated Regulation (EU)
2020/1816, Annex II
S1 - Own workforce | Diversity and Inclusion, Our metrics
S1 - Own workforce | Diversity and Inclusion, Our metrics
S1 - Own workforce | Human Rights
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818
Art 12 (1)
S1 - Own workforce | Human Rights
S2 - Workers in the value chain | Workers in the value chain
S2 - Workers in the value chain | Workers in the value chain, Our policy
S2 - Workers in the value chain | Our policy
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
S2 - Workers in the value chain | Our policy
Delegated Regulation (EU)
2020/1816, Annex II
S2 - Workers in the value chain | Our policy
S2 - Workers in the value chain | Our policy
S3 - Affected communities | Our policy
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
S3 - Affected communities | Our policy
Disclosure Requirement
and related data point
SFDR (1) reference
Pillar 3 (2) reference
ESRS S3-4
Human rights issues
and incidents paragraph 36
Indicator number 14 Table #3 of Annex 1
ESRS S4-1 Policies related
to consumers and end-users
paragraph 16
Indicator number 9 Table #3 and Indicator
number 11 Table #1 of Annex 1
ESRS S4-1
Non-respect of UNGPs on
Business and Human Rights
and OECD guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1
ESRS S4-4
Human rights issues and incidents
paragraph 35
Indicator number 14 Table #3 of Annex 1
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1
ESRS G1-1
Protection of whistle- blowers
paragraph 10 (d)
Indicator number 6 Table #3 of Annex 1
ESRS G1-4
Fines for violation of anti- corruption
and anti-bribery laws paragraph 24 (a)
ESRS G1-4
Standards of anti- corruption
and anti- bribery paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1
(1)
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019on sustainability-related disclosures
in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
(2)
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013on prudential requirements for credit
institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176,
27.6.2013, p. 1).
(3)
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016on indices used as benchmarks in financial
instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and
2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
(4)
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021establishing the framework for achieving
climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
Benchmark Regulation (3)
reference
EU Climate Law (4)
reference
Disclosure
S3 - Affected communities | Our policy
S1 - Own workforce | Stakeholder Engagement
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
S4 - Consumers and End-users | Stakeholders Engagement
S4 - Consumers and End-users | Stakeholders Engagement
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice
G1 - Business Conduct | Whistleblowing
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice
(5)
Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020supplementing Regulation (EU) 2016/1011 of the European
Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance
factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1).
(6)
Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022amending the implementing technical standards laid
down in Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L
324,19.12.2022, p.1.).
(7)
Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020supplementing Regulation (EU) 2016/1011 of the European
Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned
Benchmarks (OJ L 406, 3.12.2020, p. 17).
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CONTENT INDEX
Disclosure Requirement
Disclosure section
GENERAL DISCLOSURES
ESRS 2 BP-1 General basis for preparation of sustainability
statements
ESRS 2 - General Disclosures | Basis for preparation
ESRS 2 BP-2 Disclosures in relation to specific circumstances
ESRS 2 - General Disclosures | Basis for preparation
ESRS 2 GOV-1 The role of the administrative, management and
supervisory bodies
ESRS 2 - General Disclosures | Governance
ESRS 2 GOV-2 Information provided to and sustainability matters
addressed by the undertaking’s administrative, management and
supervisory bodies
ESRS 2 - General Disclosures | Governance
ESRS 2 GOV-3 Integration of sustainability-related performance in
incentive scheme
ESRS 2 - General Disclosures | Integration of sustainability-related
performance in incentive scheme
ESRS 2 GOV-4 Statement on due diligence
ESRS 2 - General Disclosures | Statement on due diligence
ESRS 2 GOV-5 Risk management and internal controls over
sustainability reporting
ESRS 2 - General Disclosures | Risk management and internal
controls over sustainability reporting
ESRS 2 SBM-1 Strategy, business model and value chain
ESRS 2 - General Disclosure | Strategy, Our Business Model
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS 2 - General Disclosure | Interests and views of stakeholders,
Double materiality assessment methodology
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
ESRS 2 - General Disclosures | Impact, risks and opportunities
management, Double materiality assessment methodology
ESRS 2 IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities
ESRS 2 - General Disclosure | Double materiality assessment
methodology
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
ESRS 2 - General Disclosure | Double materiality assessment
methodology
ESRS 2 MDR-P Minimum disclosure requirement on Policies
Please refer to MDR-P disclosed in each Topical Standard below.
ESRS 2 MDR-A Minimum disclosure requirement on Actions
Please refer to MDR-A disclosed in each Topical Standard below.
ESRS 2 MDR-T Minimum disclosure requirement on Targets
Please refer to MDR-T disclosed in each Topical Standard below.
ESRS 2 MDR-M Minimum disclosure requirement on Metrics
Please refer to MDR-M disclosed in each Topical Standard below.
ENVIRONMENTAL INFORMATION
E1 CLIMATE CHANGE
ESRS 2 GOV-3 E1 Integration of sustainability-related performance
in incentive scheme
E1 - Climate change | Our targets
ESRS E1-1 Transition plan for climate change mitigation
E1 - Climate change | Our Strategy to Reach Carbon Neutrality
by 2030, Impact, Risk and Opportunity Management, Our targets,
Efficient energy use, Our GHG Emissions, GHG removals and GHG
mitigation projects financed through carbon credit
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
E1 - Climate change | Impact, Risk and Opportunity Management
ESRS 2 IRO-1 Description of the processes to identify and assess
material climate-related impacts, risks and opportunities
E1 - Climate change | Our Strategy to Reach Carbon Neutrality by
2030, Impact, Risk and Opportunity Management
ESRS E1-2, MDR-P Policies related to climate change mitigation
and adaptation
E1 - Climate change | Our policy
ESRS E1-3, MDR-A Actions and resources in relation to climate
change policies
E1 - Climate change | Our Strategy to Reach Carbon Neutrality by
2030, Efficient energy use, Our GHG Emission
ESRS E1-4, MDR-T Targets related to climate change mitigation
and adaptation
E1 - Climate change | Our targets, Our GHG Emissions
ESRS E1-5 Energy consumption and mix
E1 - Climate change | Efficient energy use
ESRS E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
E1 - Climate change | Our GHG Emissions
ESRS E1-7 GHG removals and GHG mitigation projects financed
through carbon credits
E1 - Climate change | GHG removals and GHG mitigation projects
financed through carbon credits
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ESRS E1-8 Internal carbon pricing
E1 - Climate change | European Union Emission Trading System
(EU-ETS)
ESRS E1-9 Anticipated financial effects from material physical and
transition risks and potential climate-related opportunities
For fiscal year 2024, which corresponds to the first year of
sustainability report in accordance with ESRS, Ferrari has decided
to make use of the phase-in option in relation to the disclosure of the
expected financial effects of physical and material transition risks.
E2 POLLUTION
ESRS 2, IRO-1 Description of the processes to identify and assess
material pollution-related impacts, risks and opportunities
E2 - Pollution | Our policy
ESRS E2-1, MDR-P Policies related to pollution
E2 - Pollution | Our policy
ESRS E2-2, MDR-A Actions and resources related to pollution
E2 - Pollution | Our actions and targets
ESRS E2-3, MDR-T Targets related to pollution
E2 - Pollution | Our actions and targets
ESRS E2-5 Substances of concern and substances of very high
concern
E2 - Pollution | Our metrics
ESRS E2-6 Anticipated financial effects from pollution-related
impacts, risks and opportunities
For fiscal year 2024, which corresponds to the first year of
sustainability report preparation in accordance with ESRS, Ferrari
has decided to make use of the phase-in option in relation to
the disclosure of the expected financial effects of physical and
material transition risks.
E3 WATER AND MARINE RESOURCES
ESRS 2, IRO-1 Description of the processes to identify and
assess water and marine resources-related impacts, risks and
opportunities
ESRS 2 - General disclosure | Impacts, risks and opportunities
management
E4 BIODIVERSITY AND ECOSYSTEMS
ESRS 2, IRO-1 Description of the processes to identify and assess
biodiversity and ecosystem-related impacts, risks and opportunities
ESRS 2 - General disclosure | Impacts, risks and opportunities
management
E5 RESOURCE USE AND CIRCULAR ECONOMY
ESRS 2 IRO-1 Description of the processes to identify and assess
material resource use and circular economy-related impacts, risks
and opportunities
E5 - Resource use and circular economy | Our policy
ESRS E5-1, MDR-P Policies related to resource use and circular
economy
E5 - Resource use and circular economy | Our policy
ESRS E5-2, MDR-A Actions and resources related to resource use
and circular economy
E5 - Resource use and circular economy | Our actions
ESRS E5-3, MDR-T Targets related to resource use and circular
economy
E5 - Resource use and circular economy | Our targets
ESRS E5-4 Resource inflows
E5 - Resource use and circular economy | Resource inflows
ESRS E5-5 Resource outflows
E5 - Resource use and circular economy | Resource outflows
ESRS E5-6 Anticipated financial effects from resource use and
circular economy-related impacts, risks and opportunities
For fiscal year 2024, which corresponds to the first year of
sustainability report in accordance with ESRS, Ferrari has decided
to make use of the phase-in option in relation to the disclosure of the
expected financial effects of physical and material transition risks.
SOCIAL INFORMATION
S1 OWN WORKFORCE
ESRS 2 SBM-2 Interests and views of stakeholders
S1 - Own workforce | Stakeholder Engagement
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
S1 - Own workforce | Stakeholder Engagement
S1 - Own workforce | Health, Safety and well-being, Health & Safety,
Our policy
S1 - Own workforce | Characteristics of Ferrari employees
S1 - Own workforce | Data Responsibility, Privacy and
Cybersecurity
ESRS S1-1 Policies related to own workforce
S1 - Own workforce | Talent attraction, retention and development,
Our policy
S1 - Own workforce | Diversity and Inclusion, Our policy
S1 - Own workforce | Health and Safety, Our policy
S1 - Own workforce | Data Responsibility, Privacy and
Cybersecurity, Our policy
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ESRS S1-2 Processes for engaging with own workers and workers’
representatives about impacts
S1 - Own workforce | Stakeholder Engagement
ESRS S1-3 Processes to remediate negative impacts and channels
for own workers to raise concern
S1 - Own workforce | Stakeholder Engagement
ESRS S1-4, MDR-A Taking action on material impacts on own
workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and
effectiveness of those actions
S1 - Own workforce | Talent attraction, retention and development
| Training and Talent Development, Our actions
S1 - Own workforce | Talent attraction, retention and development
| Talent Recruitment and Employee Retention, Our actions
S1 - Own workforce | Diversity and Inclusion, Our actions
S1 - Own workforce Health, Safety and well-being, Health and
Safety, Our actions
S1 - Own workforce Health, Safety and well-being | Welfare and
Working Environment, Our actions
S1 - Own workforce | Data Responsibility, Privacy and
Cybersecurity, Our actions
ESRS S1-5, MDR-T Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks
and opportunities
S1 - Own workforce | Talent attraction, retention and development,
Training and Talent Development, Our targets
S1 - Own workforce | Talent attraction, retention and development,
Talent Recruitment and Employee Retention, Our targets
S1 - Own workforce | Diversity and Inclusion, Our targets
S1 - Own workforce | Health, Safety and well-being, Health and
Safety, Our targets
S1 - Own workforce | Health, Safety and well-being, Welfare and
working environment, Our targets
S1 - Own workforce | Data Responsibility, Privacy and
Cybersecurity, Our targets
ESRS S1-6 Characteristics of the undertaking’s employees
S1 - Own workforce | Characteristics of Ferrari employees
ESRS S1-7 Characteristics of non-employee workers in the
undertaking’s own workforce
S1 - Own workforce | Characteristics of Ferrari non-employees
ESRS S1-9 Diversity metrics
S1 - Own workforce | Diversity and Inclusion, Our metrics
ESRS S1-10 Adequate wage
S1 - Own workforce | Diversity and Inclusion, Our metrics
ESRS S1-11 Social protection
For fiscal year 2024, which corresponds to the first year of
sustainability report in accordance with ESRS, Ferrari has decided
to make use of the phase-in option in relation to the disclosure of
social protection information.
ESRS S1-12 Persons with disabilities
For fiscal year 2024, which corresponds to the first year of
sustainability report in accordance with ESRS, Ferrari has decided
to make use of the phase-in option in relation to the disclosure of
persons with disabilities information.
ESRS S1-13 Training and skills development metric
S1 - Own workforce | Training and Talent Development, Our metrics
S1 - Own workforce | Talent Recruitment and Employee Retention,
Our actions, Our targets and metrics
ESRS S1-14 Health and safety metrics
S1 - Own workforce | Health, Safety and well-being, Our metrics
ESRS S1-15 Work-life balance metrics
For fiscal year 2024, which corresponds to the first year of
sustainability report in accordance with ESRS, Ferrari has decided
to make use of the phase-in option in relation to the disclosure of
Work-life balance information.
ESRS S1-16 Compensation metrics (pay gap and total
compensation)
S1 - Own workforce | Diversity and Inclusion, Our metrics
ESRS S1-17 Incidents, complaints and severe human rights impacts
S1 - Own workforce | Human Rights
S2 WORKERS IN THE VALUE CHAIN
ESRS 2 SBM-2 Interests and views of stakeholder
S2 - Workers in the value chain | Stakeholder Engagement
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
S2 - Workers in the value chain | Workers in the value chain,
Our policy, Conflict minerals
ESRS S2-1, MDR-P Policies related to value chain workers
S2 - Workers in the value chain | Workers in the value chain,
Our policy, Our actions
ESRS S2-2 Processes for engaging with value chain workers about
impacts
S2 - Workers in the value chain | Stakeholder Engagement
ESRS S2-3 Processes to remediate negative impacts and channels
for value chain workers to raise concerns
S2 - Workers in the value chain | Workers in the value chain,
Our actions
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ESRS S2-4, MDR-A Taking action on material impacts on value
chain workers, and approaches to managing material risks and
pursuing material opportunities related to value chain workers,
and effectiveness of those action
S2 - Workers in the value chain | Workers in the value chain,
Our actions
ESRS S2-5, MDR-T Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks
and opportunities
S2 - Workers in the value chain | Workers in the value chain,
Our targets and metrics
S3 AFFECTED COMMUNITIES
ESRS 2 SBM-2 Interests and views of stakeholders
S3 - Affected communities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
S3 - Affected communities | Our policy, Stakeholder Engagement
ESRS S3-1, MDR-P Policies related to affected communities
S3 - Affected communities | Our policy
ESRS S3-2 Processes for engaging with affected communities
about impacts
S3 - Affected communities | Stakeholder Engagement
ESRS S3-3 Processes to remediate negative impacts and channels
for affected communities to raise concerns
S3 - Affected communities | Our policy, Stakeholder Engagement
ESRS S3-4, MDR-A Taking action on material impacts on affected
communities, and approaches to managing material risks and
pursuing material opportunities related to affected communities,
and effectiveness of those actions
S3 - Affected communities | Our targets and actions
ESRS S3-5, MDR-T Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks
and opportunities
S3 - Affected communities | Our targets and actions
S4 CONSUMERS AND END-USERS
ESRS 2 SBM-2 Interests and views of stakeholders
S4 - Consumers and End-users | Stakeholder Engagement
ESRS 2 SBM-3 Impacts, risks and opportunities and their
interaction with strategy and business model
S4 - Consumers and End-users | Stakeholder Engagement
S4 - Consumers and End-users | Vehicle quality and safety, Our
targets and actions
S4 - Consumers and End-users | Ethics and business conduct –
Transparent Information, Our targets and actions
S4 - Consumers and End-users | Data Responsibility, Privacy and
Cybersecurity, Our targets and actions
ESRS S4-1, MDR-P Policies related to consumers and end-users
S4 - Consumers and End-users | Vehicle quality and safety, Our
policy
S4 - Consumers and End-users | Ethics and business conduct -
Transparent Information, Our policy
S4 - Consumers and End-users | Data Responsibility, Privacy and
Cybersecurity, Our policy
ESRS S4-2 Processes for engaging with consumers and end-users
about impacts
S4 - Consumers and End-users | Stakeholder Engagement
ESRS S4-3 Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns
S4 - Consumers and End-users | Stakeholder Engagement
ESRS S4-4, MDR-A Taking action on material impacts on consumers
and end-users, and approaches to managing material risks and
pursuing material opportunities related to consumers and end-
users, and effectiveness of those actions
S4 - Consumers and End-users | Vehicle quality and safety, Our
targets and actions
S4 - Consumers and End-users | Ethics and business conduct -
Transparent Information, Our targets and actions
S4 - Consumers and End-users | Data Responsibility, Privacy and
Cybersecurity, Our targets and actions
ESRS S4-5, MDR-T Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks
and opportunities
S4 - Consumers and End-users | Vehicle quality and safety, Our
targets and actions
S4 - Consumers and End-users | Ethics and business conduct -
Transparent Information, Our targets and actions
S4 - Consumers and End-users | Data Responsibility, Privacy and
Cybersecurity, Our targets and actions
G1 BUSINESS CONDUCT
ESRS 2 GOV-1 The role of the administrative, supervisory and
management bodies
G1 - Business Conduct | Business conduct policies and corporate
culture
ESRS 2 IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities
G1 - Business Conduct | Business conduct policies
and corporate culture
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ESRS G1-1, MDR-P Corporate culture and Business conduct
policies and corporate culture
G1 - Business Conduct | Business conduct policies and corporate
culture
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice
ESRS G1-2 Management of relationships with suppliers
G1 - Business Conduct | Responsible purchasing practices | Our
policy, Our actions
G1 - Business Conduct | Payment practices
ESRS G1-3 Prevention and detection of corruption and briber
G1 - Business Conduct | Business conduct policies and corporate
culture
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice,
Risk-based training activities, Whistleblowing
ESRS G1-4 Confirmed incidents of corruption or bribery
G1 - Business Conduct | Anti-Bribery and Anticorruption Practice
ESRS G1-6 Payment practice
G1 - Business Conduct | Payment Practices
To limit the repetition of information already present in other sections
of the Annual Report or documents, the ESRS Standard allows to
incorporate information by reference. For 2024, Ferrari N.V. does not
disclose referring to other sections of the Annual Report nor other
documents. References to other sections of the Annual Report are
provided solely to facilitate the exploration of specific matters.
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E1 – CLIMATE
CHANGE
OUR ENVIRONMENTAL
RESPONSIBILITY
We aim to increase our environmental awareness to
continuously set and implement related programs
and actions.
We deeply believe that ensuring access to a pure
and blooming environment should not be a privilege
but rather a basic human right. In this respect, our
efforts aim to minimize the negative impacts of our
activities on natural resources and the global envi-
ronment, committing to protect the environment for
present and future generations. In particular, we are
aware of the challenges and opportunities posed by
climate change for sustainable business development.
We assemble all of our cars and manufacture all
the engines used in our cars at our production facil-
ity in Maranello(6) (Italy). The Carrozzeria Scaglietti
plant, located in Modena (Italy), is where we manu-
facture aluminum bodyworks and chassis. The two
plants cover a cumulative area of approximately 861
thousand square meters. We also own the Mugello
racing circuit in Scarperia, near Florence (Italy),
which covers an area of 1.7 million square meters
(of which approximately 1.2 million square meters of
green or tree-covered areas).
We directly operate 15 retail stores, maintain our
Lifestyle office in Milan and other offices for our for-
eign subsidiaries as well as other smaller facilities in
Italy, such as the Museo Enzo Ferrari (MEF) in Modena
and the Ferrari Museum in Maranello. The environmen-
tal impact of these additional facilities, even though
deemed negligible, is still measured and reported
in terms of energy consumption, greenhouse gas
(herein after “GHG”) emissions and waste generation.
ENVIRONMENTAL
MANAGEMENT SYSTEMS
We have invested significantly to minimize our en-
vironmental impact since 2001, when the Company
obtained the ISO 14001:2015 certification for its
plants in Maranello and Modena. In 2022, we ob-
tained the renewal of the certification of our envi-
ronmental management system according to the
standard ISO 14001:2015. In addition, in 2007, we
obtained and since then renewed the Integrated
Environmental Authorization (IEA). As mentioned in
our Environmental Practice, our effort is to minimize
the negative impact of our activities on natural re-
sources and the global environment.
In addition, once again in 2024, Ferrari S.p.A.
obtained the three stars of the FIA Environmental
Accreditation Program. The program developed by
the Fédération Internationale de l’Automobile aims
at helping key players in the motorsport and auto-
motive sector measure and enhance their environ-
mental performance by means of an independent
certification process.
To further reflect our sustainability commitment,
we have obtained several certifications assessing
our sustainable event management. This includes,
but is not limited to, the assessment of the following
aspects: separate collection of waste and recycling
of materials (circular economy), energy efficiency,
mobility and logistics, accessibility for people with
disabilities, diversity and inclusion, battle against
food waste, local development and economic impact.
In this respect, in 2024, we obtained once again the
ISO 20121:2013 certification (Event Sustainability
Management System), the international standard
for sustainable event management, for the Ferrari
Racing Days Nürburgring. The standard applies to
the planning and realization of the 2024 event. In the
same year, also Esperienza Ferrari and Ferrari Tour,
driving events dedicated to clients and sports car
lovers, obtained the ISO 20121:2013 certification.
During 2024, we maintained the ISO 20121:2013 cer-
tification for the Ferrari Factory Tour, a unique ex-
perience for clients, prospects, dealers and spon-
sors, where ad-hoc guided tours are organized to
the “Cittadella Ferrari” and the iconic places of the
“Cavallino Rampante”.
The Mugello Circuit S.p.A. obtained and renewed
the certification for the environmental manage-
ment system in accordance with ISO 14001:2015
and EMAS (Eco-Management and Audit Scheme).
Moreover, in 2020, Mugello Circuit S.p.A. obtained
the ISO 20121:2013 certification, confirmed also in
2024. Mugello Circuit S.p.A. has been the first circuit
in the world to obtain this certification. This standard
applies to the activities related to the events hosted
and is evidence of the commitment of Mugello
Circuit S.p.A. to implement a responsible and sus-
tainable management system. Moreover, in 2024, for
the second consecutive year, Mugello scored first
in the Sustainable Circuits IndexTM (SCITM) and was
named the most sustainable motorsport circuit.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OUR POLICY
Ferrari’s ambition to minimizing its impact on the
global environment is outlined in the Environmental
Practice, which is inspired by the guiding principles
set forth in the Code of Conduct and defines Ferrari’s
main ambition to fostering a corporate culture ded-
icated to environmental protection. The Practice ap-
plies to the entire Ferrari Group.
Ferrari considers environmental protection to
be a decisive aspect to be promoted in its overall
approach to business and it aims to continuously
improve the environmental performance of its
operations and comply with the provisions con-
tained in applicable laws and regulations. For this
reason, Ferrari aims to: reduce greenhouse gas
emissions across the product life cycles, minimize
water use, promote the reuse of waste materials in
the production process, monitor emissions into the
atmosphere and the sewage system, and contribute
to the protection of biodiversity in areas impacted
by its production process.
The Environmental practice sets out key prin-
ciples: compliance with applicable regulatory and
legal requirements, periodic and systematic estab-
lishment of improvement objectives and their mon-
itoring and measurement through KPIs, the devel-
opment of products that meet customers’ needs
while ensuring respect for the environment, and the
adoption of the best available technologies for the
efficiency of production processes and the reduc-
tion of emissions and environmental impacts. The
practice promotes, among others, the improve-
ment of energy efficiency and the use of renew-
able energy(7) aimed at mitigating climate change. In
particular, it enshrines the Company’s commitment
to monitor and reduce greenhouse gas emissions
produced throughout the entire product life cycle,
as well as reducing energy consumption. In line with
the Environmental Practice commitments, we have
developed the decarbonization strategy, which is
reported in our 2022-2026 Strategic Plan. The prac-
tice covers the following IROs: “Energy consumption
and related GHG emissions for upstream activities
(e.g. raw material purchased and inbound logistics)
(Scope 3) with negative impact on climate change”,
“Energy consumption and related GHG emissions
for downstream activities (e.g. outbound logistics,
vehicles usage and use of sold products) (Scope 3)
with negative impact on climate change”, “Energy
consumption (within the organization) and related
Greenhouse gas emissions (Scope 1 / Scope 2) with
negative impact on climate change and the com-
munity (e.g. Maranello)”, “Difficulties in targeting
Ferrari Carbon Footprint strategy related to Scope
3 Indirect Emissions with main focus on Upstream”,
“Energy efficiency - Using renewable energy at a
reduced cost plus investing in low carbon technol-
ogies that could result in lower carbon footprint,
lower energy consumption and lower energy costs”.
The monitoring and management of the envi-
ronmental performance of our production plants
is assigned to a team that reports to our Chief
Technologies & Infrastructures Officer. Their effort
is aimed at minimizing the impact of our activities
on the environment, particularly in relation to the
energy consumption of our production facilities.
For the achievement of GHG emission reduction
targets by 2030, the Green Sustainability Steering
Committee, composed of representatives from
different functions, has been appointed as the
responsible body. Specifically, within the Research
& Development department, a team is respon-
sible for future product development aiming at
reducing CO2eq emissions of Ferrari sports cars,
among which the future full electric powertrain.
Meanwhile, another team is in charge of oversee-
ing regulatory developments while monitoring the
emissions of Ferrari cars. In addition, the Research
& Development, the Product Development and the
Purchasing & Quality departments are working
with our suppliers to find solutions to meet our tar-
get of 30 percent reduction per car of our Scope
3 upstream emissions. These departments report
to the Chief Research & Development Officer, the
Chief Product Development Officer and the Chief
Purchasing & Quality Officer, respectively.
Please refer to the “ESRS 2—General disclosures—
Our Decision-Making Process” section for informa-
tion on accountability and the most senior levels re-
sponsible for Climate Change issues.
To draft the Environmental Practice, the interests
of stakeholders have been considered at a general
level, particularly those identified as the addressees
of the Practice. Ferrari considers the engagement of
its suppliers and its sales partners, as well as the local
authorities and communities, to be crucial to uphold
its environmental principles and commitments.
Ferrari ensures the internal and external dis-
semination of the Practice. Please refer to the
Ferrari corporate website at the following https://
www.ferrari.com/en-EN/corporate/practices.
OUR STRATEGY TO REACH
CARBON NEUTRALITY BY 2030
Our decarbonization strategy defined in 2022 is
aligned with the trajectory “well below 2°C” in order to
contribute to ambitions at the international, national
and regional level, such as the Paris Agreement. In this
context, our most significant environmental efforts
are deployed through a program for the reduction of
polluting and GHG emissions, both direct and indirect.
During our 2022 Capital Markets Day we pre-
sented our 2022-2026 Strategic Plan and our decar-
bonization strategy, detailing our commitment to
achieving Carbon Neutrality by 2030 on our entire
value chain, addressing direct and indirect GHG
emissions(8). Our decarbonization strategy is aligned
with the Transport Science-Based Target setting
Guidance of 2015 aligned with the trajectory “well
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
below 2°C” and entails a reduction of at least 90 per-
cent of our Scope 1 and 2 (market-based method)
absolute CO2eq emissions and a reduction of at least
40 percent of our Scope 3 emissions per car, with
respect to 2021. Our decarbonization strategy is not
defined as “transition plan” as stated by the ESRS E1-1.
Given that we plan to develop our new business plan
in 2025, we are currently reviewing these targets.
Ferrari is included in the EU Climate Transition
Benchmarks and the EU Paris-aligned Benchmarks,
however, as of today the Company is not aligned
to the EU Taxonomy Regulation. For further infor-
mation, please refer to the “E1—Climate change–
Taxonomy” paragraph.
As outlined in our 2022-2026 Strategic Plan
announced during the 2022 Capital Markets Day, the
first full electric Ferrari is expected to be launched
in the fourth quarter of 2025 and by 2026 a well-di-
versified product portfolio, composed of 55 percent
hybrid, 5 percent full electric and 40 percent ICE in
terms of number of models was expected. By 2030,
an offering composed of 20 percent ICE, 40 percent
hybrid and 40 percent full electric was expected.
This strategy reflects our principle of flexibility, as
the e-building houses the production of internal
combustion engines, hybrid engines and new elec-
tric motors, each capable of delivering Ferrari’s
signature driving thrills. Together with the electrifi-
cation journey, we are exploring solutions to reduce
the otherwise growing emissions of raw materials
mainly related to the battery module and looking into
recycled aluminum. Given that we plan to develop
our new business plan in 2025, we are currently
reviewing these targets.
Hybrid and electric vehicles have a higher envi-
ronmental impact in the upstream supply chain
compared to internal combustion engine vehicles.
The utilization of critical raw materials to create bat-
tery cells and the carbon-intensive production of
batteries have a substantial impact.
In 2024, the capital expenditure, including R&D
and tooling, related to the development of our elec-
tric vehicles amounted to approximately €236 mil-
lion (please refer to the paragraph Consolidated
Financial Statement). Given that we plan to develop
our new business plan in 2025, the total expenditure
for the next years is under review.
Nevertheless, our commitment is to go beyond
the decarbonization of the use phase and beyond
cutting GHG emissions domestically. Being that the
purchased goods category accounts for the major-
ity of our Scope 3 emissions, we have started to act
upstream to ensure fair and widespread actions at
a global level, focusing on recycled materials and
the development of innovative technologies. For this
reason, the engagement of our suppliers is a funda-
mental aspect of our decarbonization strategy.
For additional information on Ferrari’s goals,
please refer to the “E1—Climate change—Our tar-
gets” paragraph.
We are aware that the transition to a climate-neu-
tral economy could be slowed down by locked-in
GHG emissions. Regarding Scope 1 and 2, certain
processes cannot be converted to electricity yet.
For Scope 3 downstream, the locked-in emissions
depend on how the market will evolve in the com-
ing years, in particular on the share of BEVs (Battery
Electric Vehicle). However, it is important to point out
that the higher the share of BEVs, the harder it is to
reach the target set for Scope 3 upstream. We are
developing plans to reduce emissions from down-
stream ICEs, and in particular, we are evaluating var-
ious technologies, including alternative fuels.
Excluding locked-in emissions, the implemen-
tation of the decarbonization strategy depends
on regulatory and technological aspects. From a
financial point of view, we use our own resources
and we are constantly informed about externally
available funding.
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OUR DECARBONIZATION LEVERS TO REACH CARBON NEUTRALITY BY 2030
Category of action
Target related
climate change
Action
Timeline
Section reference
Energy efficiency
& use of renewable
sources energy
Scope 1&2 emissions -
Renewable energy and
electrification in our
operations
Phasing out of our trigeneration plant
2024
E1 Climate change - Efficient
energy use
Installation of photovoltaic panels
Since 2023
Our products
Scope 3 downstream
emissions - Electrification
and sustainable fuels
Launch of the first full electric Ferrari
2025
E1 Climate change - Our
Strategy to Reach Carbon
Neutrality by 2030
Scope 3 upstream
emissions - Recycled
materials and renewable
energy processes
Engine production
with 100% recycled alloy
2026
E5 Resource use and circular
economy
Use of recycled materials
in our products
Ongoing
Carbon Avoidance
-
Purchase of Carbon Credits
in partnership with ClimateSeed
Since 2022
E1 Climate change - GHG
removals and GHG mitigation
projects financed through
carbon credits
Constant dialogue
with partners
Scope 3 downstream
emissions - Electrification
and sustainable fuels
Introduction of Hydrotreated
Vegetable Oil (HVO) fuel in our
European outbound logistics on road
Since 2023
E1 Climate change - Our GHG
Emissions
Launch of the Green Dealer Award
Since 2023
IMPACT, RISK AND
OPPORTUNITY MANAGEMENT
Our risk management approach is an important
business driver and it is integral to the achievement
of the Group’s long-term business plan. As a relevant
factor for long-term value creation, we consider it
pivotal to manage risks related to climate change.
The fight against climate change and the preser-
vation of the environment are becoming crucial
around the world and these concerns have resulted
in rapidly evolving climate and environmental regu-
lations emitted across international markets.
Following the structure described in the “Risk
Management Process and Internal Control Systems”
section of this Report, at the first line of control, the
Risk Owner and FLTs are responsible for identifying,
assessing, and mitigating risks and for the establish-
ment and maintenance of a risk management sys-
tem across our business functions. Until December
2023, our CFO, who is a member of the FLT, was in
charge of the risk management function that is
involved, among other risks, in the assessment,
monitoring and management of environmental and
climate-related risks. Since December 2023, this role
has been assigned to the Chief of Internal Audit, Risk
and Compliance Officer. Operating areas represent
the first line of defense, they identify climate-related
risks and, in collaboration with the central function
of risk management, those risks are assessed, mon-
itored and managed at corporate level.
Through the Scenario Analysis and benchmark
activities we were able to define our impacts, risks
and opportunities.
CLIMATE SCENARIO ANALYSIS
In 2022, to strengthen our resilience strategy, we
conducted a Climate Scenario Analysis of our pro-
spective climate change risks, both physical and
transitional, for our plants in Maranello and Modena
and for our value chain following the most up-to-
date methodologies available internationally, cover-
ing the 2030 to 2050 time-horizon. In 2024, the as-
sumptions of this analysis remained unchanged. The
choice of the scenarios for physical and transition-
al risks is based on EU and international guidelines
(i.e. EU Taxonomy and TCFD respectively), on climate
literature, availability of impact studies and likeli-
hood of scenarios. We used the International Energy
Agency (IEA) and the Intergovernmental Panel on
Climate Change (IPCC) scenarios along with the
Swiss RE, Moody’s Analytics, and Wood Mackenzie
international databases.
More
specifically,
for
physical
risks,
the
Representative Concentration Pathways (RCP) cor-
respond to defined emissions and global warming
levels. Each RCP scenario is modeled by the scien-
tific community in terms of physical impacts. In par-
ticular, we have considered the RCP 8.5, RCP 4.5 and
RCP 2.6 scenarios:
• The RCP8.5 scenario is the most extreme of the
business-as-usual scenarios. It forecasts an in-
crease above 4°C by 2100. This scenario can
translate into reality if the world adopts no mitiga-
tion policy. High economic and population growth
rates (SSP5) favor this scenario. This scenario trig-
gers most of the climate “points of non-return” and
hence, its consequences are difficult to model;
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• The RCP4.5 scenario is the most probable given
current pledges by countries. It forecasts an in-
crease in temperature between 2 to 3°C by the
end of the century, well above the limits of Paris
2015 and Kyoto Protocol. Pledges as of October
2022 lead to an increase of 2.5°C by 2100, as cal-
culated by the United Nations; and
• The RCP2.6 scenario is a Paris/Kyoto one and
foresees emissions approximately at the same
levels of today (below 1.5°C by 2100 ).
Each climate scenario is characterized by dif-
ferent levels of greenhouse gas concentrations.
Specifically, we considered a pessimistic scenario
(RCP 8.5), an intermediate scenario (RCP 4.5) and a
more optimistic scenario (RCP 2.6) to assess the var-
ious situations we might face.
For the analysis of physical risks, we considered
three different time horizons:
• Short term: from 0 to 2 years;
• Medium term: from 2 to 5 years;
• Long term: from 5 to 8 years (the value eight is an
indicative value, for specific risks that we already
consider, the time horizon could be longer).
All of these relate to the expected life of our assets, stra-
tegic planning horizons and capital allocation plans.
For the analysis, we considered the geospatial
coordinates of our Maranello and Modena plants to
understand their exposure to physical events. In par-
ticular, precipitation, wind and temperature logs from
the local weather grid were analyzed to evaluate pres-
ent trends and build reliable inferences on possible
future trends. A detailed analysis of local sources such
as the Modena/Maranello Civil Protection, ARPAE and
newspapers allowed to build an “event history” data-
base and contributed to the overall risk mapping.
Through the Scenario Analysis we also analyzed
the physical and transitional risks of our suppliers,
taking into consideration their location.
In our Scenario Analysis we considered the
short, medium and long term, specifically until 2026,
from 2026 to 2035 and from 2035 to 2050.
As of today, the Climate Scenario Analysis does
not reflect any assumption made in the financial
statement.
With regard to transition scenarios analysis,
according to different scenarios, transition speeds
might vary greatly in the next two decades. The
assessment of transition climate-related risks is
based on a qualitative and quantitative climate-re-
lated scenario analysis. We take into account pro-
spective scenarios for technological development,
market conditions and normative evolutions. These
scenarios are based on the IEA (namely NZE, APS
and STEPS scenarios), a world agency providing
analysis and advisory services to governments on
energy issues, combined with many different liter-
ature studies, based on the definition of a climate
ambition and technology progress parameter. Also,
IPCC SSP scenarios were used to create charging
infrastructure projections. The overall structure
of the analysis relies on the pairing of physical and
transition scenarios following the combinations: (1)
SSP1/NZE- 2 SSP2/APS- 3 SSP3-5/STEPS:
• The Net Zero Emissions by 2050 Scenario (NZE)
is a normative scenario that shows a pathway
for the global energy sector to achieve net zero
CO2 emissions by 2050, with advanced econo-
mies reaching net zero emissions in advance
of others. It is consistent with limiting the global
temperature rise to 1.5 °C with no or limited tem-
perature overshoot (with a 50 percent probabil-
ity). It is consistent with an RCP2.6 scenario. It is
compatible with the SSP1 IPCC scenario, where
the world follows a sustainable development
pathway, with inequalities reduced, strong con-
vergence between developing and developed
countries, and strong climate action;
• In the APS scenario, countries fully implement
their national targets to 2030 and 2050. It is a “busi-
ness as usual” without strong efforts in decarbon-
izing. It is consistent with a low range of the RCP4.5
scenarios. It is compatible with the SSP2 IPCC sce-
nario which is a business-as-usual scenario;
• The STEPS provides a conservative benchmark
for the future, as it does not take for granted that
governments will reach all announced climate
goals. It explores where the energy system and
other sectors might go without a major addition-
al steer from policy makers. It is consistent with a
high RCP4.5 (low RCP8.5) scenario, and compat-
ible with SSP3-SSP5 IPCC scenarios. The SSP5
is a scenario with a strong technological devel-
opment sustained, however, by fossil fuels, while
the SSP3 is a “divided” world scenario, featuring
strong inequalities and competition for resourc-
es between nations.
To identify transitional risks, we analyzed, for each
country in which Ferrari operates through points
of sale, the regulatory situation concerning the ICE
powertrain. This enabled us to identify the countries
in which a restriction on the sale of ICE could be im-
posed. Moreover, we analyzed the targets set at na-
tional level in terms of the number of charging points
for BEVs. With regard to the market, we also took
into account the societal momentum around climate
action, always guided by our scientific and holistic
approach to address emission across sectors. The
transition scenario analysis also took into consider-
ation the issue of raw material shortage among its as-
sumptions, while considering that it is partly caused
by climate change and increased demand (with a
consequence on prices) for certain types of critical
materials needed to support the electric transition.
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Below the list of physical and transitional risks that have been analyzed in
the Climate Scenario Analysis.
PHYSICAL RISKS FOR MARANELLO AND MODENA FACILITIES
Acute
Increased Hail Frequency and Severity
Increase of Summer Blackout
Increase in Flooding Risk
Increased Wind Storm Severity
Increase in Drought Risk and Water Stress
Increase in Wildfires Risk
Chronic
Gas Equipment Production Reduction
Fuel Cell Efficiency Reduction
Health Hazards Accelerating invasion potential of disease vectors. Eg. West Nile
Increased Heat Waves Frequency and Length
Increase in Mean Temperature
Solar Panel Production Reduction
PHYSICAL RISKS FOR SUPPLY CHAIN
Acute
Increased Drought Exposure
Hydrogeologic Risk
Increased Flooding Exposure
Acute Climate Risk on Countries Extracting Critical Materials
Chronic
Increased Chronic Risk Exposure
Chronic Climate Risk on Countries Extracting Critical Materials
According to the Italian Institute for Environmental
Protection and Research data(9), Emilia Romagna
is the Italian region most susceptible to flood risk.
Weather grids around Maranello show a consis-
tent trend of increasing rainfall, a phenomenon
that is expected to elevate flood risks in the coming
decades. Emilia Romagna is morphologically suit-
able for the formation of tornados and wind storm
events. Extreme weather events such as floods,
windstorms, fires and heat waves could cause in-
terruptions in power grids. Increases in peak wind
speeds and the severity of hailstorms are also ob-
served. Heat waves and droughts are becoming
more frequent and intense, with Europe and the
Mediterranean region as global hotspots. Droughts
threaten natural water reserves in northern Italy,
while
rising
temperatures
contribute
to
fires.
Climatic conditions also affect solar energy produc-
tion and favor the spread of mosquito-borne diseas-
es, with hotter and wetter summers creating ideal
habitats for exogenous species.
Following the climate scenario analysis, we have
strengthened our mitigation and resilience plan
related to physical risks regarding our production
plants in Maranello and Modena. This plan included
the implementation of actions to mitigate extreme
weather events such as flooding, hail episodes and
droughts, reducing our climate-related physical
risks assessment under materiality threshold.
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TRANSITION RISKS ORGANIZATION WORLDWIDE
Market
Failure in Intercepting Favourable Markets
Failure in Aligning with Countries Climate Ambitions
Disalignment with Peers Transition Plans
Increased Interest Rates due to Disalignment with Bank’s Portfolios
Exposure to Critical Materials Price Soar Copper, Nickel, Cobalt, Lithium, Aluminum, Iron
CBAM Induced Increased Costs of Extra EU Supplies
Future Hypothetical Carbon Tax
Normative
Failure in Aligning with Countries Targets
Failure in Aligning with Cities Targets
Reputational
Penalty Fees for Exceeding Vehicle Emission Mandates
Change in climate induced luxury perception (e.g “Private Jet Bans”)
Technology
Supply Shortages of Critical Materials Lead, Manganese, Chromium, Zinc, Silver, Silicon, Molybdenum, REEs, PGM, Copper, Lithium,
Nickel, Vanadium, Cobalt, Graphite, Sylicium
Scarcity of Components and Materials Needed for the PV Arrays. Increase of costs
The transition risks identified through the scenario
analysis and reported above can potentially impact
Ferrari’s sales and production, therefore, not only
its operations but also its value chain. Specifically,
regulation and technology changes could lead to an
increase in costs in the medium term and to scarci-
ty of critical materials. Changes in client perception
could lead to a decrease in our revenues in the me-
dium and long term.
Following
the
scenario
analysis
conducted,
we identified two material transition risks and the
related resilience plans:
• Fast paced and uncertain laws and technical
regulations proliferation;
• Challenge in targeting Ferrari Carbon Footprint
strategy related to Scope 3 Indirect Emissions
To mitigate our material risk on “Fast paced and
uncertain laws and technical regulations prolifera-
tion” we have structured in the Ferrari Group a pro-
cess to monitor new regulations through a specific
R&D function that monitors on a regular basis the
new regulations and evaluates potential impacts on
company activities. To anticipate the timeliness of
the analysis, the company has identified local focal
points in countries most relevant for Ferrari busi-
ness and is also member of different manufacturer
associations that provide also information on regu-
latory changes trend. No significant operational or
capital expenditures have been allocated to this ac-
tion in 2024 or are planned for the future.
To mitigate our material risk on “Challenge in tar-
geting Ferrari Carbon Footprint strategy related to
Scope 3 Indirect Emissions” we have put in place sev-
eral actions, please refer to “Our Strategy to Reach
Carbon Neutrality by 2030” section.
OUR TARGETS
We defined our environmental targets, included
in our 2022-2026 Strategic Plan, aligned with the
Transport Science-Based Target setting Guidance of
2015 aligned with the trajectory “well below 2°C”. The
GHG emission reduction targets and the related ac-
tion plan were reviewed by the Board of Directors(10).
Below our emissions targets:
• carbon neutrality in our own operations(11) already
starting from 2021, through high-quality projects
with climate and social contributions (decreasing
by at least 90 percent our Scope 1 and 2 (mar-
ket-based method) absolute CO2eq emissions -
CO2, CH4, N2O and HFCs - by 2030 versus 2021);
• reduction of at least 40 percent of our Scope 3
emissions (CO2, CH4, N2O) per car, focusing main-
ly on materials and vehicle use phase. In particu-
lar, we aim to reduce upstream emissions by 30
percent per car and downstream emissions by
50 percent per car by 2030 versus 2021.
Following the former guidance provided by the SBTi
for the transport sector, we chose 2021 as the base
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
year for our emission targets as it was more repre-
sentative of the actual Company situation (2020 fig-
ures were influenced by the effects of Covid-19). In
2022, we set targets considering the journey to elec-
trification of our plants, including the phase-out of
our trigenerator, and the assumptions of the prod-
uct mix presented during our 2022 Capital Markets
Day (CMD), and there was no other specific assump-
tion regarding the evolution of the external context.
The targets in the table below are obtained by trans-
forming the CMD 2022 intensity targets into absolute
targets based on the 2024 deliveries (13,752). Given
that we plan to develop our new business plan in
2025, we are currently reviewing these targets.
2021 – Base Year
2030 Target
GHG emissions [tCO2e]
976,744
700,000
Scope 1&2 emissions
Renewable energy and electrification in our operations
92,716
10,000
Scope 3 upstream emissions
Recycled materials and renewable energy processes
578,677
500,000
Scope 3 downstream emissions
Electrification and sustainable fuels
305,351
190,000
In addition, for the Equity Incentive Plan 2022-2024 and the Equity
Incentive Plan 2023-2025, the innovation target has been replaced by an
ESG target focusing on an Environment Factor and a Social Factor. The
ESG target weighs 20 percent of the awards based on the achievement
of defined objectives relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based on the reduction of CO2
carbon emissions and 50 percent is based on the maintenance of the
Equal Salary certification.
EFFICIENT ENERGY USE
Our culture embraces a rational use of energy, which is mainly utilized
for the manufacturing of cars and engines.
Over the years, the Group has strived to lower its energy consumption
and to minimize its environmental impact, adopting innovative solutions
and shifting to renewable energy sources.
Currently, the share of renewable energy in Ferrari which is not self-
produced is purchased from the grid and covered by certificates of
guarantee of origin from renewable sources.
ENERGY CONSUMPTION WITHIN THE ORGANIZATION(1)
Unit of measurement: MWh
2024
Operational control only
2024
Financial control
2024
2023
2024 vs 2023 (%)
Total Natural Gas(2)
330
276,177
276,507
339,415
(19%)
Total Oil Products(3)
—
23,985
23,985
22,624
6%
Total Coal
—
—
—
—
—
Total Other fossil fuels
—
—
—
—
—
Total Electricity from fossil sources
—
882
882
3,769
(77%)
Total Energy from Fossil sources
330
301,044
301,374
365,808
—
Share Energy Fossil Fuels (%)
30%
73%
73%
86%
(15%)
Total Nuclear
—
238
238
405
(41%)
Share Nuclear (%)
—%
0.1%
0.1%
—%
(40%)
Total Energy from Biomass
—
—
—
—
—
Total Energy from Renewable sources
757
105,795
106,552
55,954
90%
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SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Total Self-produced renewable energy
—
3,897
3,897
1,758
122%
Total Renewable energy
757
109,692
110,449
57,712
91%
Share Renewable energy (%)
70%
27%
27%
14%
97%
Total Consumption
1,087
410,974
412,061
423,426
(2.7%)
Unit of measurement: MWh/€ thousand
2024
2023
2024 vs 2023 (%)
Energy Intensity(1)
0.062
0.071
(13.0%)
Unit of measurement: MWh
2024
2023
2024 vs 2023 (%)
Self-produced non-renewable energy
64,781
103,645
(37.5%)
Self-produced renewable energy
3,897
1,758
122%
For more details on net revenues, please refer to the “Consolidate Financial
Statement — Net revenues” paragraph of the Financial Statement.
In 2024, the total energy consumption within the
Maranello and Modena plants, the Mugello racing
circuit and our stores, museums, subsidiaries’ of-
fices and other facilities was 412,061 MWh, with a
decrease of 2.5 percent from 2023 (422,633 MWh)
mainly due to the electrification of our processes.
In 2008, we installed our first solar panels and
gradually increased capacity since then. Over the
years, this initiative has contributed to Ferrari’s
sustainability goals by increasing the capacity of
renewable energy generation in Ferrari S.p.A. and
Mugello Circuit S.p.A.. Progress in previous years
has seen a consistent rise in installed capacity, and
in 2024, we doubled the renewable energy self-pro-
duced compared to 2023. Looking ahead, plans are
in place to further expand the initiative with the aim
of reaching approximately 10 Megawatt peak (MWp)
capacity by 2030, doubling the current capacity of 5
MWp. No significant operational or capital expendi-
tures have been allocated to this action in 2024 or
are planned for the future.
Moreover, in September 2024, Ferrari switched
off the trigeneration plant at its Maranello factory
to replace a significant portion of methane gas
consumption with renewable energy sources. The
shut down enables an estimated 60 percent annual
reduction in Scope 1 and 2 CO2 emissions, and an
estimated 70 percent reduction in methane gas
consumption compared to 2021. Ferrari plans to
enhance Power Purchase Agreements (PPAs) in the
coming years to further accelerate the transition to
renewable energy. No significant operational or cap-
ital expenditures have been allocated to this action in
2024 or are planned for the future.
Ferrari is not involved in coal, oil and gas-related
activities.
OUR GHG EMISSIONS
In our decarbonization strategy, we focus on our di-
rect emissions as well as on our indirect upstream
and downstream Scope 3 GHG emissions. We believe
that concentrating solely on the vehicle use phase is
not enough, so in line with our holistic approach, we
need to continue to focus on raw materials.
Constant dialogue with partners in the supply
chain is key to identifying innovative approaches to
further reduce GHG emissions.
Starting from 2023, together with our logistics part-
ners we introduced for the first time Hydrotreated
Vegetable Oil (HVO) fuel in most of our European out-
bound logistics on road. On average this allows us to
reduce our GHG emissions for this sub-category by
80%. This ongoing initiative will continue in the coming
years, with the number of routes involved increasing
in 2024 compared to 2023, resulting in further reduc-
tions in GHG emissions. No significant operational or
capital expenditures have been allocated to this ac-
tion in 2024 or are planned for the future.
To sustain our goal of reaching Carbon Neutrality
by 2030, involving our dealers is a key part of our
strategy. In 2024, we organized the second edition of
the Green Dealer Award, aimed at engaging Ferrari
Group’s dealers in their sustainability efforts with a
particular focus on decarbonization. Our network
was evaluated via three KPIs: energy consumption,
energy reduction versus the previous year and ini-
tiatives they have undertaken such as efficiencies,
water savings and also social activities for the local
community. This process has allowed us to collect
and share on a global level best practices amongst
our dealers, with the project’s effectiveness demon-
(1)
The energy intensity is calculated considering the revenue of the entire Group.
(1)
The entire group falls within the C29 NACE code.
(2)
The conversion factor used for natural gas is
0.0101 MWh/smc.
(3)
The conversion factors used for Diesel fuel is
0.00988 MWh/L and for Gasoline fuel 0.00899 MWh/L.
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SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
strated by high levels of participation. In 2024, we
continued this initiative in line with the previous year
and we plan to further enhance dealer engagement
to foster continuous improvement. Additionally, this
program highlighted the initiatives and projects
undertaken by our dealers in support of our sustain-
ability objectives. No significant operational or capi-
tal expenditures have been allocated to this action in
2024 or are planned for the future.
While we are looking for new solutions to
decarbonize our business, the indirect GHG emis-
sions, for which we will not find reduction actions,
will be managed through the purchase of certified
carbon avoidance.
We calculate our carbon footprint considering
the GHG emissions related to all Group activities over
our entire value chain, based on the GHG Protocol
and the ISO 14064-1:2018 methodologies and is ver-
ified by a third-party under the limited assurance
engagement of this Statement. Scope 1 & 2 emis-
sions (except fugitive and industrial processes) are
calculated using the Energy-based method, with
primary data serving as the basis for consumption
data. Fugitive and industrial process emissions are
calculated using the Activity-based method, also
relying on primary data.
In order to define which Scope 3 categories are sig-
nificant for the Company, we carried out a signifi-
cance analysis according to the indications of the
ISO 14064-1:2018. Hereafter the Scope 3 catego-
ries reported:
a.
Category 3.1, Upstream transportation and distri-
bution (similar to category 4 of the GHG Protocol):
i.
Transportation and distribution of products
purchased between its tier 1 suppliers and
its own operations (in vehicles and facilities
not owned or controlled by Ferrari);
ii.
Transportation and distribution services
purchased, including inbound logistics, and
transportation and distribution between its
own facilities (in vehicles and facilities not
owned or controlled by Ferrari);
b.
Category 3.2, Downstream transportation and
distribution (similar to category 9 of the GHG
Protocol):
i.
Transportation and distribution of products
sold between its operations and the end
consumer, including retail and storage (in
vehicles and facilities not owned or con
trolled by Ferrari);
c.
Category 3.3, Employee commuting (category 7
of the GHG Protocol):Transportation of employ-
ees between their homes and their worksites.
d.
Category 3.4, Business travel (category 6 of the
GHG Protocol): Transportation of employees for
business-related activities (in vehicles not owned
or operated by Ferrari);
e.
Category 4.1, Purchased goods (part of category
1 and category 3 of the GHG Protocol): Extraction
and production of goods and fuels purchased or
acquired;
f.
Category 4.2, Capital goods (category 2 of the
GHG Protocol): Extraction and production of
capital goods purchased or acquired;
g.
Category 4.5, Use of services (part of category
1 of the GHG Protocol): Production of services
purchased or acquired;
h.
Category 5.1, Use stage of products (category 11
of the GHG Protocol): End use of goods and ser-
vices sold;
i.
Category 6.1, Franchises (category 14 of the
GHG Protocol): The Scope 1 and Scope 2 emis-
sions of franchisees, Ferrari reports its dealers
and workshops in this category.
j.
Based on the methodology applied in 2024, the
table below shows the details for each GHG
emissions category. The methodology allows
for judgment calls resulting in a range of possi-
ble outcomes and is subject to annual reviews to
improve the calculation of the Company’s GHG
emissions, resulting in some cases in incompa-
rability between one year and another. Through
the software SimaPro, it is possible to perform a
Monte Carlo analysis, which is a numerical way
to process uncertainty data and establish an
uncertainty range in the calculated results. The
Coefficient of Variability (CV - %, disclosed in the
table below) allows to quantitatively evaluate the
uncertainty. The acceptability ranges set for the
CV resulting from the analysis are as follows:
• CV ≤ 5% | very good
• CV > 5% and ≤ 15% | good
• CV > 15% and ≤ 25% | acceptable
• CV > 25% | not acceptable
In the next few years, we aim to use more primary
data in the categories 4.2 and 4.5 in order to reduce
the higher level of uncertainty, mainly due to the
Spend-based method used for the calculations of
these categories.
220
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Scope 3 Category(1)
Included
Methodology
Uncertainty
Source
Method(2)
Emission
factors
Assumptions
CV [%]
Category
3.1
Upstream
transportation
and
distribution
Yes
Delivery
inbound
documents,
Supplier
specific data
Supplier
specific
method,
Distance
based method
Ecoinvent,
Supplier specific
December 2024
estimated based on the
Jan-Nov actual data.
Calculation is based on
distance between Tier 1
supplier and Ferrari.
3.6
Category
3.2
Downstream
transportation
and
distribution
Yes
Delivery
outbound
documents,
Supplier
specific data
Supplier
specific
method,
Distance
based method
Supplier
specific,
Ecoinvent(3)
December 2024
estimated based on the
Jan-Nov actual data.
Calculation is based
on distance between
Ferrari and the dealer.
5.0
Category
3.3
Employee
commuting
Yes
Internal
database,
Internal survey
Distance
based method
DEFRA
Foreign employees are
estimated based on the
average value of Italian
employees.
November and
December 2024
estimated based on
the Jan-Oct actual data.
Calculation is based on
the distance between
the home address and
the working site.
10.6
Category
3.4
Business
travel
Yes
Supplier data
extraction,
Scuderia
Ferrari logistic
plans, LMH
logistic plans
Supplier
specific
method,
Distance
based
method,
Average data
method
Ecoinvent,
Supplier
specific,
DEFRA(4)
Foreign employees
travels are included
in category 4.5 (Use of
services). For Sports
Cars, calculation is
based mainly on the
actual distance travelled
combined with the mode
of transport; for Racing,
calculation is based on
logistic plans
5.5
Category
4.1
Purchased
goods
Yes
Warehouse
inbound
documents,
Supplier
specific data,
Invoices (fuel
and energy)
Supplier
specific
method,
Hybrid
method,
Average data
method,
Activity data
method
Ecoinvent,
Supplier
specific,
Raw materials
processing and
manufacturing is
included only for more
relevant components.
Includes Fuel and Energy
activities as per ISO
14064:2018
December 2024
estimated based on
the Jan-Nov actual
data. Calculation is
mainly based on the
composition of products
associated with the
correct emission factor.
6.3
Category
4.2
Capital Goods
Yes
Verified data
included
in Financial
Reports
Spend based
method
EEIO(5)
December 2024
estimated based on the
Jan-Nov actual data.
Calculation is based
on the capex asset
category associated with
the related spending
emission factor.
21.3
Category
4.3
Disposal of
solid and liquid
waste
No: not
material
(< 5% of
category 4)
—
—
—
—
—
221
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Category
4.4
Use of assets
No: not
material
(<5% of
category 4)
—
—
—
—
—
Category
4.5
Use of
services
Yes
Supplier
specific data,
Verified data
included in
Financial
Reports
(Services)
Supplier
specific
method,
Spend based
method
Supplier
specific,
EEIO
December 2024
estimated based on the
Jan-Nov actual data.
Calculation is based on
the chart of accounts
associated with the
related spending
emission factor.
21.1
Category
5.1
Use stage of
products
Yes
Official
homologation
process
Average data
method
IEA,
Ecoinvent,
Homologation(6)
Direct and indirect use
phase emissions (Well
to Wheel approach).
Calculation is based
on the total life cycle
distance of each
model multiplied by
homologated European
data (Tank-to-wheel) and
the upstream emission
factor (Well-to-tank).
5.1
Category
5.2
Downstream
leased assets
No: not
relevant
for Ferrari
and not
material
(<5% of
category 5)
—
—
—
—
—
Category
5.3
End-of-Life
stage of
products
No: Ferrari
cars are
collectible
and not
disposed
of. Not
material
(<5% of
category 5)
—
—
—
—
—
Category
5.4
Investments
No: not
material
(< 5% of
category 5)
—
—
—
—
—
Category
6.1
Franchises
Yes
Internal data
collection
Activity data
method
Ecoinvent,
IEA(7)
Full year estimated
based on Oct 23 - Sept 24
data. Calculation is based
on the actual energy
consumption data of the
dealers and workshops.
5.3
(1)
As defined in the ISO 14064-1.
(2)
As defined in the GHG protocol: supplier-specific method
uses primary data from the supplier; distance based
method uses the mass, distance, and mode of each
shipment, then applies the appropriate mass-distance
emission factor for the vehicle used ; activity data uses
specific emission factors together with available activity
data (mass, energy consumption, etc); average data
method uses industrial average emission factors together
with available activity data; spend base method uses the
economic value of a good or a service together with a
secondary data emission factor.
(3)
The GHG emissions of this category were calculated using
the emission factors of the Ecoinvent database (v3.9.1)
through the SimaPro tool
(4)
The GHG emissions of this category were calculated using
the emission factors indicated in “ghg-conversion-factors-
2024-full_set__for_advanced_users; v1.0”, published by the
Department for Environment Food & Rural Affairs (DEFRA)
of the UK government.
(5)
The GHG emissions of this category were calculated using
the Extended Environmental Input-Output (EEIO) factors
indicated in “Consumption based accounting tool: 2022”,
published by Eurostat.
(6)
The GHG emissions of this category were calculated using
the emission factors of the WLTP homologation in the
European Union.
(7)
The GHG emissions of this category were calculated using
the “Emission factors 2024”, published by the International
Energy Agency (IEA).
222
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
2024 FERRARI GROUP CARBON FOOTPRINT (1)(2)
Unit of measurement: t
2024
Operational
control only(3)
2024
Financial
control
2024
2021
(Base year)
Target
2025
Target
2030(4)
Target %
Base year
Total Scope 1(5)
102
65,236
65,338
90,832
N/A(6)
10,000
(28)%
SHARE of Scope 1 covered by
ETS
—%
81%
81%
87%
N/A
N/A
N/A
Total Scope 2
(location-based method)(7)
196
27,895
28,091
12,749
N/A
N/A
120%
Total Scope 2
(market-based method) (8)
—
598
598
1,884
N/A
N/A
(68%)
Cat 3.1 - Upstream transport
and logistics
—
20,592
20,592
16,923
N/A
N/A
22%
Cat 3.2 - Downstream
transport and logistics
—
11,357
11,357
12,290
N/A
N/A
(8%)
Cat 3.3 - Employee Commuting
—
3,618
3,618
2,568
N/A
N/A
41%
Cat 3.4 - Business Travel
—
8,194
8,194
2,820
N/A
N/A
191%
Cat 4.1 - Purchased Goods
—
375,905
375,905
348,265
N/A
N/A
8%
Cat 4.2 - Capital Goods
—
81,885
81,885
111,553
N/A
N/A
(27%)
Cat 4.5 - Use of Services
—
100,505
100,505
96,549
N/A
N/A
4%
Cat 5.1 - Use stage of products
—
338,256
338,256
261,096
N/A
N/A
30%
Cat 6.1 - Franchises
—
26,870
26,870
31,964
N/A
N/A
(16%)
Total Scope 3
—
967,182
967,182
884,028
N/A
690,000
9%
(1)
Biogenic emissions are included in the calculation
of our GHG emissions.
(2)
The emissions reported for 2024 have been calculated
according to the requirements of ISO 14064-1:2018 This
standard allows for judgment calls resulting in a range of
possible outcomes. Therefore, no comparison of the disclosed
data is possible with other studies unless methodology and
data assumptions are exactly the same. The GWP 100 of
the “Sixth Assessment Report” published by the IPCC has
been used. The gases included in the calculation of the GHG
emissions are: CO2, CH4, N2O, HFCs and other refrigerant
gases, whereas PFC, SF6 and NF3 emissions are not
considered. The methodology has been updated compared to
the one applied in 2021, with the 2024 methodology the 2021
GHG emissions are distributed differently among the ISO
14064 categories, leading to an increase from 751 ktCO2eq to
977 ktCO2eq of the total GHG emissions.
(3)
We consider as under our operational control the museum
Enzo Ferrari in Modena.The Scope 1&2 target is indicated
in Scope 1, Scope 3 specific targets are indicated in table
“E1—Climate change—Our targets”.
(4)
Direct greenhouse gas emissions, measured in tons of
CO2eq, were calculated using emission factors indicated in
“Ecoinvent 3.9.1” database.
(5)
Not applicable because not disclosed.
(6)
Market-based indirect greenhouse gas emissions, measured
in tons of CO2eq, were calculated using the Residual Mix
emission factors indicated in “2023 European Residual
Mixes, V.1.0”, published by AIB, and “Emissions Factors 2024”,
published by International Energy Agency (IEA). The Group
purchases Guarantee of Origin (GO) certificates in order to
reduce the impact of CO2eq emissions in the atmosphere.
(7)
Location-based indirect greenhouse gas emissions,
measured in tons of CO2eq, were calculated using the
emission factor indicated in “Emissions Factors 2024”,
published by International Energy Agency (IEA).
Unit of measurement: tCO2eq
2024
Operational
control only
2024
Financial
control
2024
2021
(Base year)
Target
2025
Target
2030
Target %
Base year
Total Emissions
(location-based)
298
1,060,313
1,060,611
987,609
N/A
N/A
7.4%
Total Emissions
(market-based)
102
1,033,016
1,033,118
976,744
N/A
700,000
5.8%
The gross 2024 GHG emissions(12) deriving from the Maranello and
Modena plants, from the Mugello racing circuit and from our stores,
museums, subsidiaries’ offices and other facilities (Scope 1 and Scope 2
market-based), are equal to 65,936 tCO2eq, compared to 92,716 tCO2eq in
2021. 2024 Scope 3 emissions are equal to 967,182 tCO2eq compared to
884,028 tCO2eq in 2021.
In 2024, our Scope 1 GHG emissions decreased by 28% compared to
223
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
2021, mainly due to the shutdown of the trigeneration plant in Maranello.
Our Scope 2 (market-based method) GHG emissions decreased by 70
percent compared to 2021 as we continued to purchase Guarantee
of Origin certificates for renewable energy for our production plants
in Maranello and Modena, and for the Mugello circuit. Since 2024, we
have included the museums and the Italian stores in the list of locations
covered by Guarantee of Origin certificates.
Our Scope 2 (location-based method) GHG emissions increased due to
the gradual shift from natural gas to electricity in our production plants.
As shown in the tables below, the majority of the Scope 1 and Scope 2
emissions occurs in Italy, primarily at our production plants in Maranello
and Modena. In 2024, Scope 1 emissions produced in Italy decreased by
approximately 14 percent compared to 2023.
Unit of measurement: tCO2eq Scope 1
2024
2023
Italy
64,332
75,172
Rest of the world
1,006
237
Total Scope 1 emissions
65,338
75,409
Unit of measurement: tCO2eq Scope 2
Location based
2024
2023
Italy
27,567
20,422
Rest of the world
524
962
Total Scope 2 location-based emissions
28,091
21,384
Unit of measurement: tCO2eq Scope 2
Market based
2024
2023
Italy
68
1,302
Rest of the world
530
980
Total Scope 2 Market-based emissions
598
2,282
Our scope 3 emissions related to 2024 are higher than those related to
2021, due to an increase in shipments of road cars (from 11,155 units in
2021 to 13,752 in 2024). The emissions per shipped car have decreased
from 87.8 tons CO2eq/car in 2021 to 75.1 tons CO2eq/car in 2024 (-14%).
Analyzing the most significant variations with respect to the base year 2021,
we can report that the increase in the number of units shipped has affected
in particular the following categories: “3.1 Emissions from upstream
transport and distribution for goods”; “4.1 Emissions from purchased
goods”; “5.1 Emissions from use stage of the product”. For the category
“3.1 Emissions from upstream transport and distribution for goods”, the
increase is also due to a higher share of primary data. The change in the
category “3.2 Emissions from downstream transport and distribution for
goods” is related to a shift from air freight to sea freight and the use of
Hydrotreated Vegetable Oil (HVO) in the European outbound logistics on
road. The change in the category “3.3 Emission from employee commuting”
is due to the higher number of employees as well as the reduction in the
number of days of working from home. The change in category “3.4
Emissions from business travel” is related to the fact that employee travel
for work purposes has now returned close to pre-pandemic levels. The
change in categories “4.2 Emissions from capital goods” and “6.1 Emissions
from franchises” is mainly due to a reduction in the emission factors.
In 2024, 12.7 percent of Scope 3 data has been calculated using primary
data directly obtained from our value chain partners.
224
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
As shown in the table below, we managed to decouple our economic
growth from our environmental impact. In other words, we continue
growing our business activities while at the same time reducing our
Scope 1 and 2 market-based GHG emissions.
2024
2021 (Base year)
2024 vs 2021 (%)
Net revenues [€ million]
6,677
4,271
56%
GHG intensity (All Scopes location-based) [tCO2eq / € million]
158.9
231.2
(31%)
GHG intensity (All Scopes market-based) [tCO2eq / € million]
154.7
228.7
(32%)
For
more
details
on
net
revenues,
please
refer
to
the
“Consolidated
Financial
Statement—Net
revenues”
paragraph
of the Financial Statement.
Below our biogenic emission:
Unit of measurement: tCO2eq
2024
Scope 1 Biogenic emissions
4
Scope 2 Biogenic emissions
—
Scope 3 Biogenic emissions
219
Total Biogenic emissions
223
GHG REMOVALS AND GHG
MITIGATION PROJECTS FINANCED
THROUGH CARBON CREDITS
Along with the implementation of GHG emis-
sion reduction initiatives, we recognize the criti-
cal importance of addressing residual emissions
by supporting certified carbon avoidance proj-
ects through the purchase of carbon avoidance
credits. By combining emission reduction mea-
sures with climate contributions to certified car-
bon avoidance projects, we have achieved Carbon
Neutrality for Scope 1 and 2 GHG emissions in
all our operations for 2021, 2022, and 2023.
As our planned reduction initiatives continue to
drive a sustained decrease in emissions by at least 90
percent of our Scope 1 and 2 absolute tCO2eq emis-
sions by 2030 versus 2021, we will progressively
adjust our climate contribution activities accordingly.
CARBON CREDITS CANCELLED IN THE REPORTING YEAR
2024
2023
Total (tCO2eq)
77,691
84,012
Share from reduction projects (%)
1 project - Sustainability
Community Project (100% Canada)
1 project - Sustainability
Community Project (100% Canada)
Share from removal projects (%)
0 projects
0 projects
Verified Carbon Standard (VCS) - Verra
100%
100%
Share from projects within the EU (%)
—
—
Share of carbon credits that qualify as
corresponding adjustments (%)
—
—
Since 2022, we have partnered with ClimateSeed
to support a unique carbon avoidance project, the
Sustainability Community Project in Canada (currently
we do not have projects in the EU). This project is cer-
tified by the Verified Carbon Standard (VCS) – Verra,
one of the most recognized GHG crediting programs.
The Sustainability Community Project pools more
than 800 local carbon-reduction micro-projects by
SMEs, municipalities, and NGOs together to provide
high additional social impacts. The GHG reductions
come from diverse sources of individual activities
such as improved energy efficiency for buildings,
redirection of waste away from landfills, and promo-
tion of fuel-switching activities. Since contributing to
225
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
this project, the project developer has been innovat-
ing how it manages and monitors the micro-projects
through digital solutions to scale the onboarding of
new projects and digitally manage the carbon emis-
sions inventory. The project carrier is continuously
searching for new SME prospects to join their sus-
tainable community, which includes more than 150
members and more than 1 thousand buildings in the
province of Quebec. The project’s main objective is to
bring up to 10 thousand customer facilities together in
a “sustainable community” to reduce GHG emissions.
During 2024, we cancelled 77,691 tCO2eq of car-
bon credits.
Beyond Verra’s project certification, Climate-Seed
has developed a comprehensive Project Evaluation
Framework that assesses all critical dimensions of a
project, including additionality, permanence, leakage,
social safeguards and rights, benefit-sharing struc-
tures, biodiversity impacts, and co-benefits aligned
with the Sustainable Development Goals (SDGs).
ClimateSeed’s Project Evaluation Framework pro-
vides a thorough, multidimensional analysis, high-
lighting each project’s strengths and potential risks.
This approach enables informed decision-making
and ensures the highest standards of environmental
and social integrity. In addition, ClimateSeed conducts
rigorous due diligence on project carriers, identifying
the ultimate beneficial owners behind each project to
mitigate risks related to money laundering and ter-
rorist financing. Furthermore, ClimateSeed upholds
fair and transparent pricing principles, ensuring: no
resale or secondary market transactions, direct car-
bon credit retirement on behalf of Ferrari, full trace-
ability and accountability in every transaction.
To reach Carbon Neutrality, our ambition is to
cancel carbon credits outside the undertaking’s
value chain for the amount of unavoidable emis-
sions and for which we will not find reduction
actions. To date we have in place a framework
agreement, and each year we define the precise
amounts of carbon credits to cancel.
As of today, Ferrari has not developed GHG remov-
als and storage projects.
EUROPEAN UNION EMISSION
TRADING SYSTEM (EU-ETS)
Ferrari’s production plant in Maranello is subject to
the European Union Emissions Trading System (EU-
ETS). To be compliant with the EU Emissions Trading
System (ETS), ad hoc procedures have been put in
place in order to monitor and measure the emissions
covered by the ETS. A specific monitoring plan has
been established according to the requirements of
the regulation, which is verified by a third party annu-
ally. Every year the emissions covered by the ETS are
verified by an independent third party and the corre-
sponding amount of allowances are included in The
Union Registry, which guarantees accurate account-
ing for all allowances issued under the EU emissions
trading system. Deadlines control and compliance
with the rules of the mechanism are entrusted to the
Competent National Authorities (ANC). The monitor-
ing and management of the activities related to ETS is
assigned to a team led by the Head of Infrastructures,
Ecology and Health & Safety. This team monitors, on a
monthly basis, the status of our relevant GHG emis-
sions in relation to the compliance status and factor
the costs of exceeding the allocated allowances into
our financial planning process. To do so, we have in-
stalled several meters in our plants, and we receive
monthly invoices from the natural gas provider that
confirms the values from the meters. We are explor-
ing further solutions to reduce our overall gas con-
sumption in the coming years. We also assess the
further development of the cap-and-trade schemes
and resulting potential financial risk for the Company
via our Enterprise Risk Management. Additionally,
the shutdown of the trigeneration plant, the main
contributor to Scope 1 emissions, has reduced our
EU-ETS-related costs. In 2024, 81 percent of Scope 1
emissions were covered by EU-ETS.
Based on the average price of EU-ETS credits
in 2024, we defined an internal carbon price, i.e., a
shadow price, to conduct cost-benefit analyses and
reduce upstream value chain emissions on specific
projects. The scopes covered by our internal carbon
pricing scheme are:
• Category 3.1 - Upstream transportation and
distribution
• Category 3.2 - Downstream transportation and
distribution.
• Category 4.1 - Purchased goods
• Category 4.5 - Use of services
These projects will be implemented in the next few
years, in 2024 there were no GHG emission cov-
ered by these schemes. The implementation of cli-
mate-related policies and targets is not incentivized
by the presence of an internal carbon price.
EU TAXONOMY
In order to meet the objectives of the European green
deal and to establish a unified EU classification system
of environmentally sustainable economic activities,
the European Commission published in June 2020
Regulation (EU) 2020/852, the “Taxonomy Regulation”(13).
The EU Taxonomy identifies the following six
environmental objectives:
(a) climate change mitigation;
(b) climate change adaptation;
(c) sustainable use and protection of water and ma-
rine resources;
(d) transition to a circular economy;
(e) pollution prevention and control; and
(f) protection and restoration of biodiversity and
ecosystems.
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SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Taxonomy-aligned activities are those that comply
with the requirements laid down in Article 3 of the
Taxonomy Regulation:
• substantially contributes to one or more of the
environmental objectives by meeting the techni-
cal screening criteria defined for this economic
activity;
• does no significant harm to the other five objec-
tives; and
• complies with minimum safeguards.
Our reporting requirements
Article 8 of the Taxonomy Regulation requires non-fi-
nancial undertakings to disclose information on the pro-
portion of the turnover, capital expenditure and operat-
ing expenditure (“key performance indicators”) of their
activities related to assets or processes associated
with environmentally sustainable economic activities.
The Commission adopted and published the
EU Taxonomy Delegated Acts(14) to implement the
Taxonomy Regulation. The Commission adopted
in July 2021, a delegated act that specifies the dis-
closure obligations of undertakings under Article
8 of the Taxonomy Regulation with respect to the
Taxonomy-eligibility and alignment of their activities
(“Disclosures Delegated Act”)(15).
Our approach to disclosure
Ferrari has been developing specific analysis to re-
spond to such disclosure requirements. A study was
performed in accordance with the following meth-
odological steps, briefly described below:
ANALYSIS OF THE ECONOMIC
ACTIVITIES OF FERRARI ELIGIBLE AND
ALIGNED TO THE EU TAXONOMY
We thoroughly analyzed the requirements es-
tablished by the Taxonomy Regulation and the
Commission’s FAQs, identifying the economic activ-
ity 3.3 “Manufacture of low carbon technologies for
transport” as the one that correlates the most with
Ferrari’s core activities and operations. Further
linkages can be found with the economic activity 6.5
“Transport by motorbikes, passenger cars and light
commercial vehicles”, with particular reference to
our financial services activities. Such a process was
conducted by analyzing both formal Ferrari-related
NACE codes as well as its substantial business activ-
ities and operations in comparison to the list provid-
ed by the EU Taxonomy. For both of these activities,
the environmental objective most consistent with
respect to Ferrari’s business is climate change miti-
gation. Further residual Ferrari activities and opera-
tions are currently considered not pertinent to oth-
er Taxonomy-related economic activities and/or not
significant for the purpose of this disclosure.
Substantial contribution
In the Annexes I and II of the Commission Delegated
Regulation (EU) 2021/2139 of June 4, 2021 are estab-
lished the Technical Screening Criteria for determin-
ing the conditions under which a specific economic
activity qualifies as contributing substantially to cli-
mate change mitigation or climate change adaptation,
respectively. Consequently, those Technical Screening
Criteria specify the minimum requirements that the
economic activity should meet in order to qualify as
environmentally sustainable. In 2024, Ferrari conduct-
ed a detailed analysis of all Technical Screening Criteria
related to economic activities 3.3 and 6.5 to determine
the share of Turnover, Capital Expenditure (CapEx)
and Operating Expenditure (OpEx) aligned with these
requirements. From the analysis performed, all the
technical screening criteria for substantial contribu-
tion to climate change mitigation are met.
Do no significant harm (DNSH)
The Climate Delegated Act establishes, for the climate
change mitigation and climate change adaptation en-
vironmental objectives, Technical Screening Criteria
for determining whether that economic activity
causes no significant harm to one or more of the en-
vironmental objectives laid down in Article 9 of the
Taxonomy Regulation. Similarly, the Environmental
Delegated
Act
establishes
Technical
Screening
Criteria for the remaining four environmental ob-
jectives. The Technical Screening Criteria for “do no
significant harm” should ensure that the economic
activity has no significant negative environmental
impact. In 2024, Ferrari conducted a detailed analy-
sis of all DNSH criteria related to economic activities
3.3 and 6.5, including the requirements outlined in
the Appendixes to Annex I of the Climate Delegated
Act, to verify alignment with the EU Taxonomy. From
the analysis performed, we met the DNSH outlined in
Delegated Regulation 2021/2139 under the econom-
ic activities 3.3 and 6.5 except for a minimal quantity
of a substance listed in Appendix C point c) “substanc-
es, whether on their own, in mixture or in articles, list-
ed in Annexes I or II to Regulation (EC) No 1005/2009
of the European Parliament and of the Council”.
Respect of the Minimum safeguards
The minimum safeguards referred to in point (c) of
Article 3 and Article 18 of the Taxonomy Regulation
are represented by procedures implemented by an
undertaking that is carrying out an economic activity
to ensure the alignment with the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles
on Business and Human Rights. Those procedures in-
clude the principles and rights set out in the eight funda-
mental conventions identified in the Declaration of the
International Labour Organisation (ILO) on Fundamental
Principles and Rights at Work and the International Bill
of Human Rights. In order to verify compliance with
Minimum safeguards on its activities, Ferrari conduct-
227
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ed and updated an analysis in light of the information
reported in the Final Report on Minimum Safeguards
published by the Platform on Sustainable Finance in
October 2022, and Commission’s FAQs.
Ferrari is compliant with the safeguards regard-
ing human rights in our activities, grievance mech-
anisms, anti-corruption, competition and taxation.
Furthermore, we are developing actions aimed at en-
suring full compliance with safeguards, through the
development of a state-of-the-art corporate due dili-
gence processes on human rights that will involve our
business partners both upstream and downstream.
Suppliers were selected based on risk criteria (stra-
tegic relevance, geographical location, company size,
supplier strategy, product category or service). This
initiative is the starting point of a structured ESG due
diligence activity. This approach, integrated into our
integrity framework, will be carried out in accordance
with the OECD Guidelines for Multinational Enterprises
and the UN Guiding Principles on Business and Human
Rights (UNGPs). Through this, it will be possible to clas-
sify such business activity as Taxonomy-aligned.
ANALYSIS OF 2024 FERRARI TURNOVER,
CAPITAL EXPENDITURE AND OPERATING
EXPENDITURE AND CALCULATION OF EU
TAXONOMY-RELATED KPIS.
We analyzed our turnover, capital and operating ex-
penditure for the calculation of the KPIs requested
pursuant to the Taxonomy Regulation and related
documentation, according to our current interpre-
tation of the applicable requirements.
Potential double counting in the allocation in the nu-
merator of turnover, capital expenditure and op-
erating expenditure has been avoided through the
use of the financial information which are at the
base of the Consolidated Financial Statements as of
December 31, 2024.
Turnover(16) KPI:
(a) Regarding the denominator, we based it on our
consolidated net turnover in accordance with
IAS 1.82(a). For further details on our account-
ing policies regarding our consolidated net turn-
over please refer to the Consolidated Financial
Statements of our Annual Report.
(b) Regarding the numerator, we analyzed our poten-
tial turnover derived from products or services
in line with the previous mentioned assumptions:
• we considered as “eligible”: the revenues re-
lated to the shipments of our cars, any per-
sonalization generated and to financial ser-
vices activities. We take into consideration
the eligible activities which contribute at least
1 percent of total Group revenues.
• we considered as “aligned”: the revenues re-
lated to the shipments of our cars and to finan-
cial services activities if these cars classified
as light-duty vehicles with specific emissions
of CO2, as defined in Article 3(1), point (h), of
Regulation (EU) 2019/631, lower than 50 g
CO2/km (low-and zero-emission light-duty
vehicles) and at the same time respects both
the compliance with all DNSH criteria listed in
the Delegated Regulation 2021/2139 for such
activities and the fulfillment of the minimum
safeguards. As of 2024, our sports cars are
above the required emissions threshold;
• we considered as “not eligible”: the revenues
generated from the sales of spare parts as
well as of engines to Maserati for the use in
their cars and from the rental of engines
to other Formula 1 racing teams; the reve-
nues earned by our racing teams (mainly in
the Formula 1 World Championship and the
World Endurance Championship) through
sponsorship agreements and our share of
the Formula 1 World Championship com-
mercial revenues; the net revenues generat-
ed through the Ferrari brand, including fash-
ion collection, merchandising, licensing and
royalty income; any other revenue, primari-
ly related to the management of the Mugello
racetrack and other sports-related activities.
• we considered as “not aligned”: the reve-
nues related to the shipments of our cars
and
to
financial
services
activities
that
have not met one or more of the Technical
Screening Criteria specified in the Delegated
Regulations or that do not fulfil the minimum
safeguards specified in the Article 18 of the
Taxonomy Regulation.
228
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY
– ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024(17)
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
0
0
4,973,770
74%
2%
76%
76%
24%
130,406
5,104,176
5,104,176
1,572,492
0
0%
0%
0%
Of which transitional
3.3. Manufacture of low carbon technologies for transport
Financial year 2024
Code
Turnover
Proportion of turnover 2024
%
€/000
A.2 Taxonom-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
CCM 3.3
CCM 6.5
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
6.5. Transport by motorbikes, passenger cars and light
commercial vehicles
Turnover of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
Turnover of Taxonomy-Non-Eligible activities
Total (A-B)
100%
6,676,668
Year
229
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
EL
76%
76%
Substantial contribution criteria
DNSH criteria (“Does Not Significantly HarmŰ
Climate Change
mitigation
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate Change
mitigation
Climate change
adaptation
Water and marine
resources
Pollution
Circular economy
Biodiversity and
ecosystem
Minium safeguards
Proportion of Taxonomy
Aligned or eligible
turnover, year 2022
Category enabling
acitivity
Category transitional
activity
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
82%
0%
0%
E
T
0%
2%
84%
84%
230
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
In 2024, the taxonomy-eligible turnover share decreased from the
previous year, mainly due to the reclassification of the eligibility of certain
other revenues.
PORTION OF TURNOVER/TOTAL TURNOVER
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
—%
76%
CCA
—%
—%
WTR
—%
—%
CE
—%
—%
PPC
—%
—%
BIO
—%
—%
As outlined in our 2022-2026 Strategic Plan an-
nounced during the 2022 Capital Markets Day, the
first full electric Ferrari will be launched in the fourth
quarter of 2025. Therefore, to date, such revenues
are equal to zero.
Capital Expenditure(18) KPI:
(c) Regarding the denominator, it consists of ad-
ditions to tangible and intangible fixed assets
during the financial year, before depreciation,
amortization and any re-measurements, includ-
ing those resulting from revaluations and im-
pairments, as well as excluding changes in fair
value. It includes acquisitions of tangible fixed
assets (IAS 16), intangible fixed assets (IAS 38)
and right-of-use assets (IFRS 16). Additions re-
sulting from business combinations are also in-
cluded. Goodwill and borrowing costs are not
included in the denominator, as it is not defined
as a tangible or intangible asset in accordance
with IAS 16 and IAS 38. For further details on our
accounting policies regarding our capital expen-
diture, please refer to the Consolidated Financial
Statements of our Annual Report.
(d) Regarding the numerator, we analyzed our capital
expenditures in line with the previous mentioned
assumptions:
• we considered as “eligible”:
• the additions of tangible assets related to
our production facilities in Maranello and
Modena, plus our subsidiaries (excluding
racetrack management and retail business)
as well as financial services activities;
• the additions of intangible assets related to
externally acquired and internally generat-
ed development costs for our cars as well as
patents, concessions and licenses and other
intangible assets mainly related to the regis-
tration of trademarks.
• we considered as “aligned”: the additions of
tangible and intangible assets related to the
development and production of vehicles, that
in particular classify as light-duty vehicles
with specific emissions of CO2, as defined
in Article 3(1), point (h), of Regulation (EU)
2019/631, lower than 50 g CO2/km (low-and
zero-emission light-duty vehicles). Moreover,
we consider the additions of tangible and in-
tangible assets related to the plan to allow
Taxonomy-eligible economic activities to be-
come Taxonomy-aligned (“CapEx plan”) un-
der the conditions specified in the second
subparagraph of the point 1.1.2.2 of Annex 1
of the Disclosure Delegated Act. At the same
time, both the compliance with all DNSH
criteria listed in the Delegated Regulation
2021/2139 for such activities and the ful-
fillment of the minimum safeguards as per
Article 3 and 18 of the Taxonomy Regulation
was verified;
• we considered as “not eligible”: the remaining
additions of tangible and intangible assets.
• we considered as “not aligned”: the additions
of tangible and intangible assets related to
the development and production of our ve-
hicles that have not met one or more of the
Technical Screening Criteria specified in the
Delegated Regulations or that do not fulfil the
minimum safeguards specified in the Article
18 of the Taxonomy Regulation.
231
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
232
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PORTION OF CAPITAL EXPENDITURE FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY
– ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024(19)
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
0
0
976,112
92%
92%
92%
8%
976,112
976,112
85,109
0
0%
0%
0%
Of which transitional
3.3. Manufacture of low carbon technologies for transport
Financial year 2024
Year
CapEx
Proportion of CapEx 2024
%
€/000
A.2 Taxonom-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
CCM 3.3
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
CapEx of Taxonomy-Non-Eligible activities
Total (A-B)
100%
1,061,221
Code
233
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
EL
N/EL
N/EL
N/EL
N/EL
N/EL
92%
92%
Substantial contribution criteria
DNSH criteria (“Does Not Significantly HarmŰ
Climate Change
mitigation
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate Change
mitigation
Climate change
adaptation
Water and marine
resources
Pollution
Circular economy
Biodiversity and
ecosystem
Minium safeguards
Proportion of Taxonomy
Aligned or eligible
CapEx, year 2022
Category enabling
acitivity
Category transitional
activity
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
94%
0%
0%
E
T
0%
94%
94%
234
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PORTION OF CAPEX/TOTAL CAPEX
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
—%
92%
CCA
—%
—%
WTR
—%
—%
CE
—%
—%
PPC
—%
—%
BIO
—%
—%
In 2024, capital expenditures increased in absolute
terms for both taxonomy-eligible and non-eligible
categories, the latter growing faster than the for-
mer, primarily due to the increase of right-of-use
assets (IFRS 16), resulting in a 2 percent decrease in
the eligibility share compared to the previous year.
We compiled the financial figures based on the
vehicle model and powertrain technology and we
included the capital expenditure that are initially
directly attributed to electric vehicles. Furthermore,
we included in the capital expenditure all other
activities that according to our medium-term plan-
ning, up to 2026, will contribute to the production of
electric vehicles. Capital expenditure that was not
clearly attributable to a particular vehicle was taken
into account on a proportionate basis using alloca-
tion formulas.
Operating Expenditure(20) KPI:
(e) Regarding the denominator, it consists of direct
non-capitalized costs that relate to research and
development, building renovation measures,
short-term lease, maintenance and repair, and
any other direct expenditures relating to the
day-to-day servicing of assets of property, plant
and equipment.
(f) Regarding the numerator, we analyzed our di-
rect non-capitalized costs in line with the previ-
ous mentioned assumptions:
• we considered as “eligible”:
• the direct non-capitalized costs that primar-
ily relate to research and development ac-
tivities, including Formula 1 racing as well as
development activities to support the inno-
vation of our product portfolio and compo-
nents, in particular, in relation to electric and
other new technologies,
• the maintenance expenditures related to the
manufacturing of our vehicles, and our sub-
sidiaries (excluding racetrack management
and retail business) as well as those related
to financial services activities;
• we
considered
as
“aligned”:
the
direct
non-capitalized costs related to the develop-
ment and production of vehicles, that in par-
ticular classify as light-duty vehicles with spe-
cific emissions of CO2, as defined in Article
3(1), point (h), of Regulation (EU) 2019/631,
lower than 50 g CO2/km (low-and zero-emis-
sion light-duty vehicles). Moreover, we con-
sider the direct non-capitalized costs related
to the CapEx plan to allow Taxonomy-eligible
economic activities to become Taxonomy-
aligned within a predefined timeframe as
set out in the second paragraph of the point
1.1.3.2 of Annex 1 of the Disclosure Delegated
Act. At the same time, both the compliance
with all DNSH criteria listed in the Delegated
Regulation 2021/2139 for such activities and
the fulfillment of the minimum safeguards
as per Article 3 and 18 of the EU Taxonomy
Regulation was verified;
• we considered as “not eligible”: the remaining
direct non-capitalized costs.
• we considered as “not aligned”: the direct
non-capitalized costs related to the devel-
opment and production of our vehicles that
have not met one or more of the Technical
Screening Criteria specified in the Delegated
Regulations or that do not fulfil the minimum
safeguards specified in the Article 18 of the
Taxonomy Regulation.
236
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PORTION OF OPERATING EXPENDITURE FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY
– ALIGNED ECONOMIC ACTIVITIES - DISCLOSURE COVERING YEAR 2024(21)V
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
0
0
591,491
100%
100%
100%
0%
591,491
591,491
529
0
0%
0%
0%
Of which transitional
3.3. Manufacture of low carbon technologies for transport
Financial year 2024
Code
OpEx
Proportion of OpEx 2024
%
€/000
A.2 Taxonom-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
CCM 3.3
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
OpEx of Taxonomy-Non-Eligible activities
Total (A-B)
100%
592,020
Year
237
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
EL
N/EL
N/EL
N/EL
N/EL
N/EL
100%
100%
Substantial contribution criteria
DNSH criteria (“Does Not Significantly HarmŰ
Climate Change
mitigation
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate Change
mitigation
Climate change
adaptation
Water and marine
resources
Pollution
Circular economy
Biodiversity and
ecosystem
Minium safeguards
Proportion of Taxonomy
Aligned or eligible
OpEx, year 2022
Category enabling
acitivity
Category transitional
activity
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
EL
N/EL
100%
0%
0%
E
T
0%
100%
100%
239
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
PORTION OF OPEX/TOTAL OPEX
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
—%
100%
CCA
—%
—%
WTR
—%
—%
CE
—%
—%
PPC
—%
—%
BIO
—%
—%
In 2024, the taxonomy-eligible operating expenditure
share has remained stable from the previous year.
Potential double counting in the allocation in the
numerator of Turnover, capital expenditure and
operating expenditure has been avoided through
the use of the financial information which are at the
base of the Consolidated Financial Statements as of
December 31, 2024.
Further analysis will be made over time accord-
ing to the progressive evolution of the Taxonomy
Regulation, and its concrete interpretation/appli
cation for reporting purposes in accordance with
Ferrari’s strategic approach.
In order to truly understand the importance and
actions that Ferrari is putting in place to achieve
the climate mitigation objective, it should be noted
our pursuit of reaching Carbon Neutrality by 2030,
addressing both direct and indirect emissions with
a focus on energy and materials, in addition to our
electrification journey. As a further step forward in
this process, since 2019 we are monitoring our car-
bon footprint considering the emissions related to
all the Group activities over our entire value chain.
Our calculation, based on GHG protocol and ISO
14064:2018 methodologies, allowed us to determine
priority areas for action. We have the ambition to
expanding our Taxonomy-aligned activities through
dedicated investment (“CapEx Plan”) and operating
expenditures, as outlined in our 2022-2026 Strategic
Plan presented during our 2022 Capital Markets
Day, in line with the conditions specified in the sec-
ond subparagraph of the point 1.1.2.2 of Annex 1 of
the Disclosure Delegated Act. Given that we plan to
develop our new business plan in 2025, we are cur-
rently reviewing this plan.
TAXONOMY TABLE FOR NUCLEAR AND GAS AS REFERRED
TO IN COMPLIMENTARY CLIMATE DELEGATED ACT(22)
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
N
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
N
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their safety upgrades.
N
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
N
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
N
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
N
240
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
E2 – POLLUTION
SUBSTANCES OF CONCERNS
AND SUBSTANCES OF VERY
HIGH CONCERN
Ferrari considers environmental protection a deci-
sive aspect to be promoted in its overall approach
to business.
OUR POLICY
We are aware of our potential impacts generated
by the unlawful usage of substances of concern and
substances of very high concern. For this reason and
in compliance with the applicable laws and regula-
tions (CE/1907/2006 – REACH(23) regulation), we have
defined strict procedures on the management of
these substances.
The Environmental Practice sets out key prin-
ciples to manage IROs such as compliance with
applicable regulatory and legal requirements, a peri-
odic and systematic establishment of improvement
objectives and their monitoring and measurement
through KPIs, the development of products that meet
customers’ needs while ensuring respect for the
environment, and the adoption of the best available
technologies for the efficiency of production pro-
cesses and the reduction of environmental impacts.
These principles include pollution prevention.
For additional information about the Environmental
Practice, please refer to the “E1—Climate change—Our
policy” paragraph.
During the year, we conducted a screening on our
site locations and business activities to assess and
evaluate pollutants and substances of concern and
very high concern. Additionally, during our materiality
analysis, we also considered the impacts on our entire
value chain, although we have not carried out consul-
tations with affected communities on this topic.
Regarding substances of concern and sub-
stances of very high concern, two specific proce-
dures have been approved: the “Approval of auxil-
iary and direct materials, storage management” and
the “CMR mixture/substances derogation”. Our pro-
cedures take into account all substances involved
in the analysis. However, there is no specific proce-
dure for each single substance.
The main objective of the “Approval of auxiliary and
direct materials, storage management” procedure is
to define how materials, such as auxiliary and direct
chemicals
(articles,
substances
and
preparation/
mixtures), are acquired and used by employees. This
ensures that all health and safety and environmental
risks associated with these materials are evaluated
and prevented before their entrance within the perim-
eter of our production sites. The procedure applies
to our production sites(24) and to all employees and
non-employees. This procedure aims at preventing
impacts and risks, as well as managing opportunities,
such as our potential contribution to pollution due to
substances of concern and substances of very high
concern. Moreover, the procedure aims to avoid inci-
dents and emergency situations, and, if they do occur,
to control and limit their impact on people and the envi-
ronment. According to this procedure, each area must
exclusively use chemicals, for its respective area, that
have passed the approval process, which considers
health, safety and environmental aspects. In particular,
product classified under current regulations as car-
cinogenic, mutagenic, and toxic for reproduction are
not supposed to be used, since Legislative Decree No.
102 of 30 July 2020 requires a progressive phase-out of
substances classified under those hazard categories.
Where substitution is not possible, a deroga-
tion process must be initiated in accordance with
the provisions of the procedure “CMR mixture/sub-
stances derogation”(25). According to this procedure,
we require users to seek a non-hazardous substi-
tute material and specific prevention and protec-
tion measures are put into place. In addition, within
“Approval of auxiliary and direct materials, storage
management”, specific rules are set for storage and
handling of hazardous substances as well as the peri-
odic monitoring and control of usage area and meth-
ods to prevent incidents and emergency situations.
The most senior level accountable for the
implementation of the procedures is the Chief
Technologies and Infrastructures Officer.
These procedures have been defined in accor-
dance with ISO 14001:2015 and ISO 45001:2018.
These procedures are addressed to employees
and are available on the Ferrari intranet.
The procedures cover the following impact:
“Group’s contribution to pollution due to substances
of concern and substances of very high concern”.
OUR ACTIONS AND TARGETS
We have implemented best practices to avoid or
minimize the risk of harm in managing substances
of concern and substances of very high concern,
even though no specific pollution-related target has
been set. Additionally, and according to the proce-
dures described above, we have put in place specific
processes to monitor and track their right applica-
tion also through periodic audits carried out by the
Environmental and Energy and the Health & Safety
teams. The results of the audits are recorded on a spe-
241
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
cific form and sent to all those in charge. The closure
of anomalies and the verification of effectiveness are
recorded and monitored by the Environment and
Energy Department on a specific summary file.
In case no substitute material is available, substances of
concern or very high concern are accepted under spe-
cific preventive measures. In this context, workers are
protected from exposure and contact with hazardous
substances through the implementation of closed cy-
cles (processes or systems designed to minimize their
exposure). These ensure that the use or transfer of
hazardous materials occurs in sealed or controlled en-
vironments, reducing the risk of leaks, contamination
or accidental exposure. Closed cycles aim at increasing
safety for operators, reducing risk of incidents and re-
ducing environmental impacts. These actions pertain
to Ferrari production facilities (Ferrari S.p.A.) and have
been already implemented in all processes where pos-
sible, and will remain in effect long-term, with regular
quality checks as needed. In 2024, we implemented a
closed cycle to manage cumene in our foundry. We aim
to minimize the number of exposed workers and re-
duce the duration and intensity of workers’ exposure to
the lowest technically possible value. No significant op-
erational or capital expenditures have been allocated to
these actions in 2024 or are planned for the future.
If the implementation of closed cycles is not pos-
sible, alternative collective protection systems, such
as fume hoods, are provided. These systems are
designed to safeguard the health and safety of groups
of people, rather than just individuals, during work
activities or in the presence of specific risks. These
are tools that reduce exposure to hazards through
solutions integrated into the workplace, independent
of individual behavior. These actions are specific to
Ferrari’s production facilities and have already been
implemented across all feasible processes. They are
designed to remain in place over the long term, with
periodic quality checks conducted as necessary. We
continue to monitor and report the use of hazard-
ous substance and the effectiveness of the safety
measures implemented. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
For other measures, for instance personal pro-
tective equipment, please refer to the “S1—Own work-
force—Health and Safety—Our actions” paragraph.
Referring to our Lifestyle activities, no substance
of concern or very high concern is produced, used,
distributed, commercialized, imported and exported
in line with applicable laws and regulations. To ensure
the quality and safety of our Lifestyle products, we per-
form specific tests including a qualitative resistance
test and a detailed chemical test to assess the compo-
sition of the products. These tests are carried out on
every product of our personal luxury goods category.
OUR METRICS
We purchase hazardous substances in the form
of articles, substances and preparation/mixtures
which are mainly acquired through indirect pur-
chasing. As far as direct purchasing concerns, these
are generally not subject to REACH regulation.
We monitor updates to the candidate chemi-
cals list of very high concern and are aware of the
presence of these substances in some of our com-
ponents. As soon as a rulemaking process begins to
regulate these substances in any market where we
operate, we take all necessary measures to prepare
for their substitution or to mitigate their potential
impact. The main production processes that include
the use of substances of concern and very high con-
cern are, among others, vehicle testing, laboratory
materials, machining, finishing and painting, engine
testing, powertrain and engine assembly. Gasoline,
used mainly in engine and vehicle testing, is, by far,
the major source of substances of concern.
Weight (Kg)
Substances of concern (SoC)
Substances of very high concern (SVHC)
Total amount of substances of concern that are
used during production or that are procured
1.970,070
90
Carcinogenicity categories 1 and 2 (gasoline)
1,329,650
—
Other hazard classes
640,420
90
Total amount of substances leaving facilities as
product, or part of product
185,324
175,983(1)
(1)
In this category, candidate chemicals list substances present in our products are included.
The SoC and SVHC used in our production process
are mainly calculated considering the observed
amounts used during the production process. Since
primary data is not currently available for the cat-
egories(26) excluded from the obligation to report
to the competent authority pursuant to Legislative
Decree No. 102 of 30 July 2020, we estimate the
amounts of SoC leaving our facilities as products,
or as part of products, and the 78 percent of SoC in-
cluded in the category “Other hazard classes” of the
SoC used during production or that are procured.
We estimated these data based on the total amount
purchased during the year, using a proxy sample
amounting to 10 percent of total products contain-
ing those substances. Regarding the candidate list
substances present in our cars, we calculate the
amount taking into consideration the car configura-
tion of the European and UK market and the number
of shipments in 2024. This methodology is not vali-
dated by an external body.
242
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
E5 – RESOURCE
USE AND CIRCULAR
ECONOMY
OUR POLICY
Ferrari consistently strives for the highest quality
in all materials used, ensuring durability over time;
as a result, our products are not only built to last but
are also cherished as collectibles that can be passed
down through generations rather than simply serv-
ing as modes of transportation. We also acknowl-
edge that a rational use of raw materials, together
with careful waste management, helps reduce the
environmental impact of our manufacturing pro-
cess. For this reason, we are implementing innova-
tive solutions and advanced technical processes,
such as the reuse of aluminum scraps, to minimize
waste and reduce environmental impacts.
Ferrari considers environmental protection to
be a decisive aspect to be promoted in its overall
approach to business. The Environmental Practice
promotes the reuse of waste materials in the pro-
duction process according to a circular economy
approach. Moreover, it aims to reduce the quantity
of waste and optimize the amount of materials sent
to recovery plants. The practice sets out key princi-
ples to manage IROs (for details please refer to “ESRS
2—General disclosures—Impacts, risks and opportu-
nities management” paragraph of this Report) such
as: compliance with applicable regulatory and legal
requirements, periodic and systematic establish-
ment of improvement objectives and their monitor-
ing and measurement through KPIs, the develop-
ment of products that meet customers’ needs while
ensuring respect for the environment, safety and
quality, and the adoption of the best available tech-
nologies for the efficiency of production processes
and the reduction of environmental impacts. The
practice covers the following impacts and oppor-
tunity: “Reduction of waste thanks to the increase
of durability, reparability and recyclability of spare
parts (e.g. racing and sports cars) or products (e.g.
lifestyle)”, “production of hazardous / non hazardous
waste by the organization”, “promotion of circularity
within the value chain to reduce the use of natural
resources and waste produced by suppliers”, “pro-
duction of hazardous / non hazardous waste by the
supply chain” and “circular economy manufacturing
initiatives implemented: use of recycled materials,
recovery of production waste for recycling and proj-
ects aimed at ensuring an extension of product life”.
Currently, the Environmental Practice does not
address the use of renewable resources, however,
we are continuously striving for sustainable and
innovative material sourcing to integrate into our
production processes.
The monitoring and management of the environ-
mental performance of our productive plants, includ-
ing waste, is assigned to a team that reports to our Chief
Technologies & Infrastructures Officer. Their effort
is aimed at minimizing the impact of our activities on
the environment. Please refer to the “ESRS 2—General
disclosures—Our Decision-Making Process” section for
the information about the accountability and the high-
est positions with responsibility for waste issues.
IROs in relation to resources use and circular
economy matters have been identified during the
double materiality assessment considering our
products and production process. We have not
carried out dedicated consultations with affected
communities on this topic, but we have an ongoing
dialogue with our suppliers to find recycled mate-
rial solutions to reduce our emissions. For additional
information on methodology adopted, please refer
to “ESRS 2—General disclosures—Impacts, risks and
opportunities management” paragraph.
OUR TARGETS
We have implemented best practices to maintain sta-
ble and possibly reduce our waste production, even
though no specific waste-related targets have been
set. Additionally, we have been proactively promoting
initiatives on alternative circular materials to evaluate
the introduction of less environmentally impactful solu-
tions. To track the progress and effectiveness of our
policies and actions in relation to the material sustain-
ability-related impact and opportunity, we aim to main-
tain the ISO 14001:2015 certification, which includes,
also for waste, continuous improvement targets and
KPIs (e.g. percentage of waste directed to recovery).
243
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OUR ACTIONS
In these past years, a series of initiatives have been
implemented across different phases of the manu-
facturing process to reduce waste production.
An evidence of Ferrari attention to waste reduc-
tion is represented by our management of scraps.
We recycle aluminum scraps by melting them in the
foundry, thus ensuring the reentering of those scraps
in the manufacturing process. This is an important
achievement, considering that aluminum is the first
raw material by weight used in our production pro-
cess. The aluminum scraps, i.e. the shavings, gen-
erated during the mechanical process that cannot
be melted, are compacted and eventually resold to
companies specialized in recycling. This process
has always been fully integrated in our foundry and
involves Ferrari’s operations. In addition, at the begin-
ning of 2023, we implemented the use of scorifying
salts in the aluminum melting process with the spe-
cific aim of maximizing material recovery. By facilitat-
ing the removal of impurities and enabling a cleaner
separation of aluminum from scrap, we have reduced
the amount of aluminum discarded. This improve-
ment has led to a 50 percent decrease in slag, under-
scoring our commitment to reducing waste and
optimizing resource use. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future. For the
medium-term future, we plan to reduce the use of this
virgin material by focusing on secondary alloy from
recycled processes and on the reduction of quar-
ry-derived resources.
Additionally, aligned with Ferrari’s ambition to reduce
CO2 emissions and to promote circularity, starting
from 2026, we plan to introduce 100 percent recy-
cled aluminum alloy for our engines (considering only
the parts produced internally in our Maranello plant
that weigh more than 80 percent of the engine). This
action could reduce aluminum-related CO2 emissions
by around 80 percent. This recycled alloy is charac-
terized by high performance without compromising
quality, differing minimally from primary alloys. Our
ambition is to eliminate the use of primary alloys in our
engines by relying on recycled raw materials. To align
with market availability, we have developed a flexible
process that allows us to use both primary and recy-
cled alloys in engine components. No significant oper-
ational or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
In 2024, at the best of our knowledge, no stake-
holder was negatively impacted.
RESOURCE INFLOWS
Car makers consume large amounts of raw mate-
rials, and a conscientious planning of the manufac-
turing process is essential to the management of
scarce resources. Among the most used materials in
our cars we have light alloys, such as aluminum, poly-
mers, and to a lesser extent other metals (copper,
titanium, platinum group, silicon, zinc, magnesium)
elastomers, fluids, lithium, light rare earth elements.
TOTAL RESOURCE INFLOWS
2024
Overall total weight of products and technical and biological materials used (Kg)
34,199
Percentage of biological materials (and biofuels used for non-energy purposes),
including packaging, that is sustainably sourced
—%
Weight of secondary reused or recycled components, secondary intermediary
products and secondary materials used to manufacture the undertaking’s products
and services (including packaging) (Kg)
1,577
Percentage of secondary reused or recycled components, secondary intermediary
products and secondary materials used to manufacture the undertaking’s products
and services (including packaging).
4.6%
For the denominator, the methodology applied to
calculate the data in the table above is based on the
incoming weight of materials and components in
our warehouses. This data is the same as the one
used for the calculation of the Scope 3 GHG emis-
sions, category 4.1. The numerator is calculated
based on supplier information provided through the
International Material Data System. To estimate the
quantity of packaging, we used the outflow quantity
and assumed it was equal to the inflow quantity.
RESOURCE OUTFLOWS
The Group adopts a systemic approach to waste
management, aiming to stabilize unit consumption
over time. Although total waste per vehicle may in-
crease due to production scale and innowvation ar-
eas, we have launched ongoing projects that focus on
minimizing waste generation as much as possible.
A significant portion of our waste derives from
non-hazardous materials including ferrous scraps,
paper, wood, plastic packaging, and aqueous solu-
tions. This waste primarily originates from foundry,
paint and mechanical operations. The main typologies
of hazardous waste include waste oil and solvents.
244
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
TOTAL WASTE BY WEIGHT DIVERTED FROM DISPOSAL BY RECOVERY OPERATION TYPES
Recovery operation types [t]
2024
Weight
Percentage
Hazardous Waste
Preparation for reuse
—
—%
Recycling
724
11.3%
Other recovery operations
—
—%
Total Hazardous Waste
724
11.3%
Non-Hazardous Waste
Preparation for reuse
13
0.2%
Recycling
5,681
88.5%
Other recovery operations
—
—%
Total Non-Hazardous Waste
5,694
88.7%
Total Waste Diverted From Disposal
6,418
TOTAL WASTE BY WEIGHT DIRECTED TO DISPOSAL BY WASTE TREATMENT TYPE
Waste treatment types [t]
2024
Weight
Percentage
Hazardous Waste
Incineration with energy recovery
—
—%
Incineration without energy recovery
—
—%
Landfilling
—
—%
Other disposal operations
597
18.1%
Total Hazardous Waste
597
18.1%
Non-Hazardous Waste
Incineration with energy recovery
—
—%
Incineration without energy recovery
—
—%
Landfilling
147
4.5%
Other disposal operations (D9 and D15)(1)
2,545
77.4%
Total Non-Hazardous Waste
2,692
81.9%
Total Waste Directed to Disposal
3,289
Weight (t)
Percentage
Total waste generated
9,707
Non-recycled waste
3,302
34.0%
Hazardous Waste
1,320
13.6%
Radioactive Waste
—
—%
(1)
D9: Physico-chemical treatment resulting in final compounds or mixtures which are discarded by any of the operations
numbered D1 to D12, e.g. evaporation, drying, calcination
D15: Storage pending any of the operations numbered D1 to D14 (excluding temporary storage, pending collection,
on the site where it is produced).
245
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Waste monitoring is conducted through a thor-
ough analysis of all supporting documentation. Each
month, our external waste intermediary provides a
report, generated from their management system,
detailing the previous month’s waste movements.
This data is processed to classify waste into the ap-
propriate categories defined by Legislative Decree
152/2006 and is recorded in our internal reporting
system for effective tracking and analysis.
For Ferrari’s offices worldwide, when primary
data are unavailable, waste production is estimated
using statistical data(27) based on either the office’s
surface area or the number of employees.
DURABILITY, REPARABILITY
AND RECYCLABLE CONTENT
We have embraced circular economy principles by
designing products with durability, repairability, and
recyclability in mind. Ferrari cars exemplify this ap-
proach, as their durability allows them to be passed
on from one generation to the next. Ferrari Classiche
services strive to keep as many of these classic cars
on the road as possible and extending their lifecy-
cle. Our cars are generally not considered means of
transportation but collectible items.
Ferrari cars are widely perceived as collect-
ible items, potentially lasting forever. Our cars are
expected to have a durability of at least 80 years,
based on Ferrari’s manufacturing history to date,
which began when the Company was founded in
1947. This far exceeds the industry average lifespan,
which statistically ranges from 18 years in Western
European countries to 28 years in Eastern ones(28).
We supply parts for both current and older
Ferrari models to our authorized dealer network.
The substitution of spare parts throughout a car’s
lifespan is driven not only by clients’ demand for
parts to personalize their cars and maximize perfor-
mance, but also to ensure and guarantee the repara-
bility of our products.
Please refer to the “Overview of Our Business—
Client Relations—Ferrari Classiche” section for fur-
ther information.
2024
Expected durability of products
At least 80
Industry average durability
From 18 years in Western European countries to 28 years in Eastern ones
Our personal luxury goods’ design and production rely on high-quality
materials. The durability of these products is influenced by their intended
use and the frequency of washing.
Total recyclable content [t]
Total weight of materials used [t]
Percentage
Recyclable content in products
27,600
32,471
85.0%
Recyclable content in products packaging
1,342
1,729
77.6%
The minimum recyclability of vehicles sold is 85%(29). This value refers to
the minimum percentage by mass guaranteed on our European fleet and
determined in accordance with EU Directive 2005/64/EC.
The total weight of materials refers to inflow materials used in our
vehicles. The quantity of packaging disclosed above is the total packaging:
we assume that the packaging inflow is equal to the packaging outflow
and that for our business, product packaging is not relevant.
247
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
S1 – OWN
WORKFORCE
BEING THE EMPLOYER OF CHOICE
The unmatched excellence and unique crafts-
manship of our products are the foundation upon
which Ferrari’s success is built and this is possible
thanks to the talents, skills and efforts of the people
working in Ferrari.
STAKEHOLDER ENGAGEMENT
Since 2021, the “Formula Insieme” program is the
main employee engagement activity, which aims
to pursue the continuous development of Ferrari
through a “plan, do, check, act” approach, starting
from our employees’ opinions, gaining awareness of
their points of view and identifying opportunities for
continuous improvement. Every two years we carry
out an internal performance survey of our employ-
ees on various topics related to the working environ-
ment, such as safety, change readiness, open cul-
ture and other areas linked to our relevant impacts.
The following impacts have been considered in the
Formula Insieme aspects: work-life balance, attention
to mental health with positive impacts on employees’
physical and mental well-being, positive impacts on
employees’ motivation and sense of belonging thanks
to secure employment and working time, compet-
itive remuneration, benefits, training opportunities
and career development and work-related injuries.
Risks and opportunities arising from impacts and
dependencies on people in “own workforce” are re-
lated to Ferrari’s entire workforce. This survey is ac-
cessible to all employees, with responses collected to
ensure the participation of those who might be more
vulnerable or marginalized. The results of the online
survey, conducted in 2023 and completed by more
than 95 percent of our employees, were analyzed to
identify potential areas for improvement and shared
with employees to gather suggestions and proposals
for action. The key findings from each department
have been transformed into a specific action plan,
led by a Human Resources representative who has
operational responsibility for ensuring that this en-
gagement happens and that the results inform the
Company’s approach. No significant operational or
capital expenditures have been allocated for this ac-
tivity in 2024 or are planned for the future.
We aim to advance a just transition, able to secure
workers’ rights and livelihoods when economies are
shifting to low-carbon production. Internal data and
the results of the survey conducted in 2023 did not
show any impact on Ferrari own workforce raised
from transition plans for reducing negative impacts
on the environment and achieving greener and cli-
mate neutral operations. Nevertheless, the Green
Sustainability Steering Committee has been tasked
with managing the action plan to achieve Carbon
Neutrality.
All employees of the Group in Italy are subject
to
collective
agreements
(Contratto
Collettivo
Specifico di Lavoro (CCSL), Accordo Premio di
Competitività Ferrari and a collective bargaining
agreement for our managers, signed by the Italian
trade union, Federmanager, on April 28, 2023).
These collective agreements enforce a contin-
uous dialog with workers’ representatives also
with respect to human rights, allowing to highlight
Ferrari employees’ perspective.
Furthermore, our own workforce can raise their
concerns or needs through the Ethics Helpline, avail-
able on our corporate website. The Whistleblowing
procedure protects the whistleblower against retal-
iation. For further information on the adopted chan-
nel for raising concerns refers to the “G1—Business
Conduct—Whistleblowing” paragraph.
For information regarding interests, views and
rights of Ferrari’s own workforce refer to para-
graph “ESRS
2—General
disclosures—Strategy—
Interests and views of stakeholders” .
HUMAN RIGHTS
Ferrari’s aim to respect, protect and promote hu-
man rights is laid down in the Human Rights Practice,
which is inspired by the guiding principles set forth
in the Code of Conduct and defines Ferrari’s main
ambitions to a corporate culture dedicated to ethics
and integrity. In particular, in line with our impacts,
risks and opportunities (please refer to chapter
“ESRS 2—General disclosures—Impacts, risks and
opportunities management” for further details)
the Human Rights Practice states the respect, pro-
tection and promotion of Human Rights towards
workers in our workplace, operations and activities,
across our supply chain, in the interaction with soci-
248
SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ety and local communities, consumers and end-us-
ers as well as in any context in which we operate.
The practice covers the following impact and risk:
“Violation of human rights along the value chain (e.g.
right to freedom of association and collective bar-
gaining, child labor, forced or compulsory labor also
related to conflict minerals) with impacts on human
dignity” and “Negative evolution of social/geopolitical
tensions or sanitary emergency, arising in specific
geographies, conditioning the corresponding mar-
ket’s strategies and/or operations”.
In particular, the Practice sets out key principles,
such as: the prohibition of child labor, compulsory
labor and forced labor, human trafficking and serf-
dom, the attention to a healthy and safe working
environment, the rejection of any form of abuse,
harassment and discrimination and the zero toler-
ance in respect of corruption in Ferrari workplaces
and along the supply chain as well as in society and
local communities. The Human Rights impact related
to Ferrari operations was deemed not relevant.
Regarding consumers and end users, the Human
Rights Practice declares that Ferrari’s workforce
must take personal responsibility for treating cli-
ents, co-workers, vendors and all stakeholders with
respect, integrity, ethics and professionalism. In par-
ticular, the Human Rights Practice must be consid-
ered for the Health and Safety matters.
Although our own workforce, value chain work-
ers, consumers and end-users, and local communi-
ties have not been directly engaged, the addressees
of this Practice are not only directors and employ-
ees but also those who work for or on behalf of
Ferrari, such as suppliers and business partners,
consultants and “atypical workers” (e.g. temporary
supply contract and staff-leasing workers), as well
as Ferrari’s stakeholders. In addition, Ferrari strives
to respect the rights of local communities and con-
tribute to their realization and development.
The Human Rights Practice officially entered
into force in 2021 and it applies to the entire Ferrari
Group, pursuant to local legislation. It was approved
by the Ferrari Leadership Team (FLT), the most senior
level accountable for the implementation of the prac-
tice, who plays a key role in overseeing its adequacy.
The Human Rights Practice is in line with sig-
nificant
third
parties
initiatives,
including:
the
International Bill on Human Rights, the United Nations
Guiding Principles on Business and Human Rights
and the UN Global Compact Ten Principles, the
International Labour Organization’s (ILO) Declaration
on Fundamental Principles and Rights at Work
and Conventions, the Organization for Economic
Co-operation and Development (OECD) Guidelines
for Multinational Companies, the OECD Due Diligence
Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas, and the
Charter of Fundamental Rights of the European Union.
In
addition,
to
ensure
full
effectiveness,
the
Compliance
function
periodically
reviews
the
Human Rights Practice and monitors its implemen-
tation to ensure it remains at maximum efficiency.
This includes considering factors such as emerging
best practices, changes in the Group’s business ac-
tivities or the applicable legal and regulatory frame-
work, and any possible violations or criticality that
has been identified. These monitoring activities are
carried out in compliance with the standards and
third-party initiatives mentioned above.
The Human Rights Practice has been ade-
quately 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.
In the event of human rights violations, the Ferrari
Group encourages all addressees to report them
through dedicated Whistleblowing channels and
takes all reasonable actions to remedy human rights
impacts. For additional information, please refer to
paragraph “G1—Business Conduct—Whistleblowing”.
In 2024, relating to our workforce, the Company
identified
two
cases
of
discrimination
and/or
harassment leading to disciplinary actions, no cases
of severe human rights incidents and no com-
plaints about violations of human rights emerged
from National Contact Points for OECD Multinational
Enterprises. In addition, there were no final judge-
ments relating to non-respect of the human rights
principle and there were no significant fines and/or
non-monetary sanctions.
Moreover, in 2023, we adopted a dedicated
Diversity and Inclusion Practice to encourage the dif-
fusion of a corporate culture based on inclusion and
mutual respect in the belief that diversity represents
a source of creativity, enrichment and innovation,
see “ESRS 2—General disclosures—Governance—
Diversity Policy”.
In addition, according to the results of the Double
materiality assessment, no operations are at signifi-
cant risk of incident involving forced labor, compul-
sory labor, or child labor.
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SUSTAINABILITY STATEMENT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The table below provides an overview of the relevant information
on human rights policies regarding four of our stakeholder groups,
particularly related to human rights issues.
REFERENCE TABLE ON HUMAN RIGHTS
Stakeholders particularly
related to human rights issues
Ferrari material topics
Key applicable policies
Section reference of main KPIs
Employees and trade unions
•
Talent attraction, retention
and development
•
Health, safety and well-
being
•
Diversity and inclusion
•
Human rights
•
Human Rights Practice
•
Ethics Helpline
•
Code of Conduct
•
Stakeholder Engagement
Practice
•
Diversity and Inclusion
Practice
•
S1 - Own workforce - Human
Rights
•
S1 - Own workforce - Health
and Safety
•
S1 - Own workforce - Talent
attraction, retention and
development
•
S1 - Own workforce -
Diversity and Inclusion
•
G1 - Business Conduct
Suppliers
•
Human rights
•
Human Rights Practice
•
Stakeholder Engagement
Practice
•
Ethics Helpline
•
Third Parties’ Compliance
Practice
•
Anticorruption Compliance
Practice
•
S1 - Own workforce - Human
Rights
•
G1 - Business Conduct
Community and university
•
Responsibility towards
the community and future
generations
•
Human rights
•
Human Rights Practice
•
Stakeholder Engagement
Practice
•
S3 - Affected communities
•
S1 - Own workforce - Human
Rights
Clients
•
Quality and safety
•
Human rights
•
Human Rights Practice
•
Stakeholder Engagement
Practice
•
Ethics Helpline
•
S4 - Consumers and End-
users
•
G1 - Business Conduct -
Whistleblowing
•
S1 - Own workforce - Human
Rights
TALENT ATTRACTION, RETENTION
AND DEVELOPMENT
The success, prestige and appeal of our brand de-
pend on the ability to attract and retain talents. Top
drivers, management, engineers, blue collars and all
the employees that make Ferrari unique have to be
rewarded based on their ability and determination.
This is why we offer career progression opportu-
nities tailored to one’s strengths, ambitions and our
Company’s requirements, underpinned by substan-
tial investments in training.
Human capital development ensures that our
Company has the appropriate skills to execute its busi-
ness strategy, while also enhancing employee attrac-
tion, retention, and motivation. As a result, it increases
productivity and drives innovation. During the regular
performance and career development review pro-
cess, training requirements are identified to address
the needs of both employees and the Company.
OUR POLICY
Talent attraction, retention, development and train-
ing are covered by our Human Rights practice. The
practice covers the following IROs: “Positive im-
pacts on employees’ motivation and sense of be-
longing thanks to secure employment and working
time, competitive remuneration, benefits, training
opportunities and career development”, “Loss of
knowledge and key skills due to high turnover or
low development with negative indirect impacts on
stakeholders (e.g. customers)”, “High and/or mis-
placed usage of external resources (consultants,
temporary workers, staff leasing) that can also have
critical competence and know-how, and deal with
strategic projects”, “Increased responsiveness to
market challenges by re-skilling and up-skilling em-
ployees (e.g. for full-electric vehicles)” and “Employee
satisfaction & retention, including adequate wages,
training and development of employees: attracting,
retaining and developing the best talent through pol-
icies and practices related to employees as an op-
portunity for the company”.
We uphold the values outlined in our practice, which
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promote professionalism, motivation, and job satis-
faction among all employees by providing opportu-
nities for training, mobility, and internal promotion,
while also enhancing the employability of each indi-
vidual. We view professional and personal develop-
ment as a shared responsibility. In this regard, we
listen to employee expectations and take action to
improve areas where the degree of satisfaction is
below our standards of excellence. Please refer to
the “S1—Own workforce—Human Rights” chapter
for further information.
Moreover, we have established several internal
procedures, including training, talent scouting and
recruiting, performance and talent management,
compensation, welfare, and work life balance.
Along with the need to hire, develop and retain tal-
ents, we recognize that managing human capital as
a critical resource is essential to achieving the best
possible results.
TRAINING AND TALENT DEVELOPMENT
Attracting, retaining and developing talent requires
a strategic and integrated approach that consid-
ers employee needs and market dynamics. We
rely on a highly qualified and motivated workforce,
which represents a real competitive asset in an ev-
er-changing economic environment.
OUR ACTIONS
Our Training Plan is organized in three main mac-
ro-areas and each of them has its own purpose:
• to protect and pass on the strategic and specif-
ic know-how of Ferrari and to project ourselves
into the future of innovation;
• to shape and prepare the future managerial
class for business, innovation, management and
human capital development challenges;
• to foster and support the inclusion, growth and
development of our people.
These programs covered a wide range of topics,
including
digitalization,
globalization,
sustainabil-
ity and continuous improvement. This result was
achieved mostly thanks to the high-quality volun-
teering training we continuously provide to our em-
ployees, among which the “Agile learning for an Agile
Company” project, the Harvard Manage Mentor
e-learning platform and the two MBA programs.
Below a description of the actions implemented
for each macro-area to effectively manage the
potential negative impact identified during the
Double materiality analysis. For further information
please refer to “ESRS 2—Impacts, risks and opportu-
nities management”.
To protect and pass on the
strategic and specific know-how
of Ferrari and to project ourselves
into the future of innovation.
What makes Ferrari’s craftsmanship unique is the
direct transfer of knowledge and expertise from
senior to junior workers, which in our manufactur-
ing process takes place directly on the job as we be-
lieve in constantly maintaining excellence through a
“learning by doing” approach.
In 2024, we further consolidated the educational
offer of the previous years, with the three main
areas of focus being: product innovation (mainly
with regard to electrification, ADAS (Advanced
Driver Assistance Systems) and carbon fiber, in a
cross-functional training), process innovation (as in
the case of welding and Quality Core tools) as well as
support and induction of new colleagues. In partic-
ular, in 2024 the topic of the addition of full electric
vehicles was further enhanced in order to ensure
that future models respect Ferrari quality standards.
To support teaching activities, the use of aug-
mented reality is also being experimented to com-
plement classrooms and laboratories. This applica-
tion, which makes it possible for attendants to take
advantage of this technology through specific tools
but also through tablets.
Among all the training initiatives in Ferrari, we
are very proud of our “Scuola dei Mestieri”, started
in 2009. It is a unique, in-house, technical training
project for both white collars and blue collars of our
development and production facilities in Maranello
and Modena, which increases the professionalism
of junior talents and motivates senior employees,
recognizing their competencies by asking them to
become Maestri and to pass on Ferrari’s unique her-
itage to the next generation. The initiative combines
different didactic methodologies, including on the
job sessions and in-classroom training, both focused
on the consolidation of competencies and skills, with
a particular focus on innovation. Being a Maestro is
an aspirational position and key to the Company’s
success. In 2024, the program saw 4,500 participa-
tions and more than 25 thousand hours of training
have been conducted.
At the end of the training programs, participant
satisfaction is assessed. Additionally, feedback is
collected from team leaders to evaluate the skills
acquired and, more importantly, the progress
observed. Annually, we aim at identifying and incor-
porating the training needs and requests for the
upcoming year and we monitor both the number of
participations and the hours of training to evaluate
the progress of the program.
Additionally, within “Scuola dei Mestieri” we
have implemented an activity called “Scuola delle
Professioni”, to provide an overview of the values
inherent to the Ferrari DNA. This program aims to
offer participants a complete vision of the devel-
opment process of a new Ferrari Sports Car, from
the creation of the product concept to the series
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production and go to market, all in line with Ferrari’s
targets and DNA. The course is based on four macro
areas: product development, vehicle technology,
testing and manufacturing, and delivery and selling
activities. The course comprises more than 40 lec-
tures and more than 80 hours, all delivered during
working hours, including “technical” visits to all
production departments. In 2024, the fourth ses-
sion took place, involving new hires from the R&D
department in Maranello. Due to the large number
of employees involved in this program, the activity
was divided into two waves (2024 and 2025) to allow
all participants to take part in the training. The effec-
tiveness of this program is assessed through a sat-
isfaction survey covering the four topics addressed
during the course. In the previous edition, more
than 200 employees of the Design, Purchasing and
Quality departments have been involved.
Since
2017
we
deliver
a
training
course
for blue collars appointed as Conduttori in the
Manufacturing, R&D and Quality departments, work-
ers without hierarchical responsibilities who play
the role of link between the team and the supervi-
sor. Conduttori are chosen not only for their tech-
nical skills but also for their soft ones. Throughout
the years, this program was extended to include all
Conduttori. The training course consists of 40 hours
and include technical content sessions with inter-
nal Maestri and operational problem-solving activi-
ties, all aligned with the activities of their respective
roles. The training and improvement of their com-
petences is essential as they have the task of train-
ing new employees. In 2024, we launched a new
training program dedicated to specific key roles,
“Capo Team”(30) in the Manufacturing, R&D, Product
Development and Quality areas, and Technologists
in the Manufacturing area. We assess the level of
satisfaction through a survey provided to all partic-
ipants, covering organizational aspects, the topics
discussed, and the instructor’s expertise. The final
result is the Net Promoter Score, an indicator of
participant satisfaction. Our strategy for future edi-
tions is to maintain periodic engagements with the
involved categories to ensure the participation of all
roles. No significant operational or capital expendi-
tures have been allocated to this action in 2024 or are
planned for the future.
To shape and prepare the future managerial
class for business, innovation, management
and human capital development challenges.
In 2024, we completed the fifth edition of the Ferrari
Corporate Executive MBA (EMBA), our master’s pro-
gram designed to enhance the management skills of
attendees, expose them to the most recent innova-
tion trends, and convey the Ferrari leadership model.
This master’s degree, which over the past five years
has involved more than 180 people, offers a unique
tailor-made program to create a significant group
within the management class that will be able to
grasp the challenges of the future, while at the same
time preserving the tradition of Ferrari. The EMBA
is designed for 30 managers of the Ferrari Group
who, for about 12-15 months, participate in face-to-
face and online lectures. The course includes inno-
vation talks, leadership workshops and production
plant site visits. In 2024, the EMBA was expanded be-
yond Italy, allowing managers to study in the U.S. and
China and foster personal and professional growth
through exposure to international business models
and cultures. In addition to the Executive MBA, a new
program was launched in 2021 for employees aged
27 to 35 who have been identified as high-potential
talents through the performance evaluation system:
the Ferrari Global Corporate MBA. This master’s de-
gree, offered to Ferrari Group employees, provides
participants with managerial skills, while focusing on
the three main disruptive trends of our time: tech-
nological innovation, digital transformation and sus-
tainable transition. The master’s program concludes
with an 8-weeks project work or internship in an in-
novative company operating in sectors other than
the automotive one, at the end of which the main re-
sults are discussed through a session in front of the
FLT. These master’s degrees have helped develop a
group of managers with a shared approach to lead-
ership, while respecting and valuing individual differ-
ences - a group on which Ferrari can rely on to tack-
le future challenges. In addition to the questionnaire
completed at the conclusion of these master’s pro-
grams and the opportunity for participants to freely
share their feedback via email, we also gather feed-
back from managers to evaluate whether improve-
ments in skills have occurred. The effectiveness of
these programs has resulted in a low turnover rate,
an increase in the collaboration with the subsidiaries,
stronger relationships between colleagues of dif-
ferent departments, and an increase in participants
motivation and engagement.
For 2025, we will carry out a training update
as well as problem-solving activities involving the
Alumni, employees who have participated in the pre-
vious editions of the master’s degrees.
To foster and support the inclusion, growth
and development of our people.
In line with business and Company requirements,
and consistent with the needs expressed in the One
Ferrari Performance and Feedback process(31),
training activities were provided with respect to
managerial, technical and language skills.
Launched in 2019, we continue to offer all our
employees the possibility to access the Harvard
Manage Mentor e-learning platform. The training
has been customized according to our needs and
the following three lines of development: to integrate
this platform with the One Ferrari Performance and
Feedback process, to give employees, especially
newcomers, the basic managerial skills that we
consider essential requirements, and to adapt pro-
fessional development paths based on employees’
career levels. Soft skills and language courses are
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included in this platform, as well as several training
activities on diversity topics that support our Equal
Salary certification.
The effectiveness of this program is assessed
through a satisfaction survey, which investigates
whether the participant was able to apply the man-
agerial and soft skills learned in the courses. Taking
into account the results achieved, we plan to con-
tinue to provide access to the Harvard Manage
Mentor e-learning platform in the years to come.
In 2024, we launched the second edition of
the “Agile learning for an Agile Company” project,
open to all white collars and agency workers of the
Group. In 2023, interviews and focus groups were
conducted with the help of an external supplier to
understand the main challenges faced during the
remote working experience, adopted in 2020. Based
on the results, the training was structured around 9
winning practices, which include working and com-
municating successfully with others through digital
tools, the achievement of a work-life balance, the use
of feedback to strengthen relationships, the value of
effective meetings, the creation of a strong network,
and the ability to learn from study and experience.
The training sessions were made more interesting
thanks to gamification, the creation of competitions
and structured growth paths, and they were inte-
grated with several online group meetings to share
experiences and put into action what was learned.
Moreover, a forum was opened for the exchange of
ideas and opinions. The goal of the interviews and
focus groups was to engage managers and individ-
ual contributors in a journey of skills reflection and
learning, to live effectively and in balance with the
constantly evolving context and work patterns. The
project was also extended to agency workers with
approximately 300 participants resulting in more
than 6,000 training hours. The new edition also
involved employees hired after May 2023, who were
not able to participate in the previous edition as the
training sessions coincided with this month.
After each training pill, a satisfaction survey on
the specific topic covered is conducted. Once the
course is finished, a final survey is also proposed
to collect feedback and suggestions for future
editions. The training program enabled a cultural
change within the Company and taking into account
these results, we plan to continue supporting the
“Agile learning for an Agile Company” project in the
years to come.
In addition, an online training campaign is
launched twice a year and includes all the corporate
mandatory trainings dedicated to Ferrari Group’s
new employees. Among the mandatory courses
relating to the General Data Protection Regulation
(GDPR), Antitrust and Anticorruption, a session is
dedicated to our Code of Conduct that also covers
human rights.
To measure the effectiveness of this training activity,
a final test is administered with a passing threshold
of 80 percent correct answers. Taking into account
the results achieved, we plan to continue offering
the online training to new employees in the years to
come. No significant operational or capital expendi-
tures have been allocated to this action in 2024 or
are planned for the future.
In 2024, we focused on ensuring continuous
progress across all training domains to maintain
know-how continuity and strengthen employee
skills, aligned with our ambitions for the future.
Collaboration,
innovation,
focus
and
learning,
together with agility at all levels, represent some
of the key values we uphold to succeed in a rapidly
changing world. Through employee training pro-
grams, we aim to advance a just transition that is
able to secure workers’ rights and livelihoods as
economies shift to low-carbon production. This
includes the development of specific training initia-
tives focused on the addition of the electric engine.
All these training activities were delivered both
in presence and online. In 2023, to sustain the imple-
mentation of the new behavioral framework, we had
a peak in training hours. In 2024, training hours were
in line with previous years levels.
OUR TARGETS
We do not have specific measurable targets for
employee training, but we aim to provide a range
of training activities as described above in order to
promote a competent and up-to-date workforce.
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OUR METRICS
AVERAGE HOURS OF TRAINING BY GENDER AND EMPLOYEE CATEGORY
Gender
2024
2023
Male
15.7
26.6
Female
20.6
29.6
Other
—
—
Not disclosed
—
—
Total
16.4
27.1
Employee category
2024
2023
Managers and Senior Managers
20.8
42.1
Middle Managers
23.4
43.7
White collars
22.8
42.2
Blue collars
8.9
8.3
Total
16.4
27.1
The total hours of training are obtained from the
Company’s database, which tracks participation
and outcomes for each course session in terms of
hours completed and number of attendees. In the
total amount, individuals who withdrew, non-em-
ployees, those who failed the final test, or those who
did not complete the entire course are excluded.
Subsequently, the total amount of training hours is
divided by the number of employees per employ-
ment category and gender.
TALENT RECRUITMENT AND
EMPLOYEE RETENTION
OUR ACTIONS
The excellence that our products and our brand
embody is what attracts and retains the best talents
worldwide.
At Ferrari, recruitment and selection is about iden-
tifying and sourcing the right qualities and skills that will
represent the core of our future success. Our recruit-
ment process provides a platform to engage with
future employees, to assess competencies through
a structured selection process and to prepare for
post-recruitment integration and development.
The mission of the recruitment team is to iden-
tify, evaluate and bring onboard the individuals
aligned with our requirements and values. During
2024, we received approximately 52 thousand
applications, both specific and spontaneous, from
blue collars, skilled workers as well as university
educated applicants.
We also undertake partnership programs with
leading universities worldwide to engage with stu-
dents, professors, career offices and a network of
professionals to identify talents for the future(32). In
2024, we organized 77 events (mainly in presence at
university campuses or in Ferrari offices), attended
by more than 6 thousand students.
We offer Company insight presentations, tes-
timonials
by
Ferrari
employees,
selected
case
studies at university campuses and, for partner
universities such as the Motorvehicle University of
Emilia-Romagna (MUNER), we also offer the exclusive
opportunity to visit Ferrari facilities. These activities
allow us to share the key values of the Company, and
to engage directly or indirectly - through communi-
cations with professors, participants, and on social
media - while strengthening our recruitment pipeline.
“Scuderia F1 Ferrari Engineering Academy”,
active since 2015, is dedicated to the recruitment of
talented engineers worldwide to join our F1 team. In
2024, we completed the tenth edition of this talent
program, allowing a selection of race engineering
talents of partner universities to work in Scuderia
Ferrari. Each year, 6 to 8 participants are selected
through a rigorous process involving university
partnerships, selection assessments, and inter-
views. The program begins with a two-day induc-
tion, followed by a structured workweek in which
participants spend 80 percent of their time with line
managers and 20 percent on innovation projects.
Over six months, they work on 10 to 15 projects with
the guidance of two dedicated mentors. Participants
gain
transversal
knowledge
through
interac-
tions with various departments, including Engine,
Aerodynamics, Track, Tires, and Testimonials.
Developed in collaboration with Italian and inter-
national motorsport universities, the Academy aims
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to identify and train top talent for the automotive
and motorsport sectors. At the end of the Academy,
annual performance evaluations are conducted for
both staff and participants, with additional mid-term
and a final evaluations to monitor participants’ prog-
ress and potential for hiring within the organization.
Since 2015, a total of 67 participants have taken part
in the Academy with a retention rate of around 60
percent over the 9 years. Taking into account the
results achieved, we plan to continue offering this
program in the years to come. No significant oper-
ational or capital expenditures have been allocated
to this action in 2024 or are planned for the future.
To ease employees into their new jobs, for more
than 10 years, we have been providing a two-day
induction program twice a month. This program is
dedicated to new hires of the Italian plants. The first day
is dedicated to introducing the Company culture and
mission, as well as guiding new employees through
the corporate offices (compliance, cybersecurity
and administration), ending with the factory tour of
the Maranello plant. The following day is focused on
health and safety mandatory training. Through this
activity new hires feel involved and engaged in the
Company. The program aims to introduce them to
the Company’s environment and provide the foun-
dational information to begin their professional jour-
ney. The positive feedback collected over the years
indicates high levels of satisfaction, demonstrating
progress in the effectiveness of the actions disclosed
in prior periods. No significant operational or capital
expenditures have been allocated to these actions in
2024 or are planned for the future.
Ferrari engagement programs have always
been initiatives that express our spirit of innovation,
allowing our employees to fully develop the value of
collaboration. “Ferrari League” is the engagement
program dedicated to Scuderia Ferrari and Sports
Cars teams. Ferrari League offers the Ferrari facil-
ities’ teams the opportunity to propose their own
ideas to optimize internal processes, increase pro-
ductivity, reduce costs, and improve the satisfac-
tion of internal and external stakeholders. In 2024,
we received over 20 thousand suggestions from
employees with a focus on Carbon Neutrality, quality
management, logistics and process efficiency.
The project has been ongoing since 2012, with
activities evolving almost every year in response to
continuous feedback. This activity is planned to con-
tinue in the years to come. At the end of this engage-
ment activity, dedicated meetings are organized
with each Area/Department, involving the respec-
tive Area and Team Leaders. These discussions
enable the identification of strengths and areas of
improvement, to make the next year’s activities even
more effective. In particular, for each activity, we
analyze the evaluation and delivery mode and the
project feasibility. No significant operational or capi-
tal expenditures have been allocated to this action in
2024 or are planned for the future.
We reward all Ferrari employees in Italy, exclud-
ing Mangers and Senior Managers, through a produc-
tivity bonus called “Premio di Competitività”, based
on yearly shipments and Adjusted EBITDA results, as
well as a product quality index adjusted for individual
absenteeism rates. In 2024, each employee received
up to € 14.4 thousand (please refer to the paragraph
Consolidated Financial Statement) as provided for in
a specific agreement signed with the trade unions.
Ferrari has signed the renewal of the agreement for
its Competitiveness Award (Premio di Competitività),
expired in December 2023. The new agreement
will be valid for the four-year period 2024-2027,
strengthened by the integration of an environmental
factor into the award calculation. The effectiveness
of these actions is assessed through the continuous
decrease of the absenteeism rate, which is directly
linked to the Award, and the higher retention rate
monitored throughout the years. As stipulated in the
Competitiveness Award agreement, we plan to con-
tinue offering the “Premio di Competitività” in the
years to come. The expected outcomes of the pro-
gram include the enhanced attention to employee
well-being and the cultivation of a culture that prior-
itizes employee satisfaction.
In 2023, to evolve and adapt to the current
historical context, a new behavioral model, “One
Ferrari”, was developed and shared with all Ferrari
people. One Ferrari is based on our Values, and
introduces 6 Guiding Principles (Collaboration,
Continuous Learning, Confident Humility, Focus,
Fearless
Organization,
and
Will
to
Progress),
declined into concrete and measurable behav-
iors, which aim to lead our daily actions. This new
model has become part of the annual perfor-
mance appraisal phase, which has brought with it
a renewal in both the tools and the dynamics of the
performance management process, now called
“One Ferrari Performance and Feedback”.
Every employee, excluding blue collars, is able
to continuously monitor performance, give and
receive feedback, work towards a final evaluation
which is aimed at merging all the data into a defi-
nite and precise picture of the year spent, and ignite
actionable future developments.
All the people involved have access to a
training on our performance management pro-
cess through online training video courses that
are always available to all employees globally.
Moreover, we organize assessment classes with
external psychologists and HR experts with the aim
of evaluating employee potential. Blue collars, who
are not involved in the performance management
process, have access to an assessment, based on
development centers, aimed at developing their
career path. Starting in 2024, a pilot project was
launched to evaluate blue collars based on assess-
ments from their managers.
In addition, we continue the leadership develop-
ment project for our Managers and Senior Managers,
an individual assessment of leadership behaviors
aimed at continuous improvement and professional
development, which also includes a 360-degree
feedback. The results of these assessments are a
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fundamental asset for succession plans in key posi-
tions, identifying career development opportunities
and defining consistent retention actions.
Through our career development program, we en-
courage the professional growth of our employees
and prioritize filling key positions with talented in-
ternal candidates before tapping into the external
market. The results of the analysis carried out on
our key positions held by our employees are used to
develop specific succession plans, with a 2 to 4 year
timeframe. These plans aim to ensure Ferrari’s long-
term competitiveness while leveraging the talents
of our employees. Moreover, in 2023, we created the
Internal Job Posting within our employee corporate
portal, allowing employees to apply for new posi-
tions within the Company. The aim is to help talent
emerge and to contribute to the creation of a culture
of agility and innovation.
In 2024, for the fifth year in a row, our effort to
guarantee employee attraction and retention was
also recognized by the Top Employers Institute who
positively evaluated the Company’s programs in
terms of talent attraction, training, career develop-
ment, inclusion and respect for diversity, welfare,
social commitment and innovation.
OUR TARGETS AND METRICS
We do not have specific measurable targets for tal-
ent recruitment and employee retention, but we aim
to recruit employees who are eager to learn and
improve their performance through the actions de-
scribed above.
In 2024, 50.6% of employees received regular
performance and career development reviews. This
percentage is attributable to White collars, Middle
Managers and Managers and Senior Managers. For
this reason, the percentage related to women (71.0%)
is significantly higher than that of men (46.7%) given
that the blue collars category is predominantly male.
EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS
2024
% Male
% Female
% Other
% Not Disclosed
% Total
Managers and Senior
Managers
98.7%
100.0%
—%
—%
98.8%
Middle Managers
96.4%
97.7%
—%
—%
96.6%
White collars
92.5%
90.6%
—%
—%
92.0%
Blue collars
—%
—%
—%
—%
—%
Total
46.7%
71.0%
—%
—%
50.6%
In 2024, each employee who was evaluated received
one performance review, as agreed by management.
The metrics were obtained from an internal tool
used for performance and career evaluation. Within
the tool, only employees as of December 31, 2024 who
received an evaluation during the year were consid-
ered. The employees were then classified into the four
categories mentioned above based on their job title.
DIVERSITY AND INCLUSION
OUR POLICY
As outlined in the Code of Conduct (“Code”), Ferrari
“want(s) an environment in which values are fos-
tered and ethical conduct encouraged, in order to
create a setting in which teamwork is prioritised,
the dignity of each individual is respected, and there
is no room for discrimination”. In order to reaffirm
and renew our aim of spreading a corporate culture
based on inclusion and mutual respect, we have ad-
opted the Diversity and Inclusion Practice and the
Policy for gender equality and diversity & inclusion.
These policies cover the following impacts and op-
portunities: “Impacts on Ferrari’s employees satis-
faction and engagement by promoting awareness
and culture about diversity and inclusion”, “Incidents
of discrimination (including gender discrimination in
remuneration) and/or abuse along the value chain”
and “Diversity of governing body/executive team
- The capabilities and perspectives of board/exec-
utive team members are important for making ro-
bust decisions on an ongoing basis”.
The Diversity and Inclusion Practice of Ferrari
N.V. was adopted by the Board of Directors of the
Company on September 14, 2023, and is applicable to
the Ferrari Group (i.e., Ferrari N.V., Ferrari S.p.A. and
their branches, subsidiaries and controlled joint-ven-
ture), according to local legislation. The Practice was
drafted taking into account the interests of employ-
ees and, in fact, representatives of the Human
Resources Department, as well as those of the Group
Compliance,
Investor
Relations
&
Sustainability
and Legal Departments, participated in its drafting.
Through this Practice the Ferrari Group promotes
the valorization of human resources and encour-
ages the diffusion of a corporate culture based
on inclusion and mutual respect in the belief that
Diversity represents a source of creativity, enrich-
ment and innovation. Specific diversity aspects have
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been identified as relevant for the Group: racial and
ethnic origin, sex, sexual orientation, gender identity,
disability, age, religion, national extraction or social
origin. For that reason, in carrying out its activities,
the Group adopts an approach aimed at guarantee-
ing equal opportunities at all levels of the organiza-
tion as well as rejecting any form of discrimination. In
addition, and according to impacts, risks and oppor-
tunities, the Practice principles apply to specific
areas of interest: people attraction & acquisition -
including recruiting- , people empowerment - includ-
ing training and performance and talent manage-
ment - , people rewarding -including salary review
and promotion. The Ferrari Leadership Team (FLT) is
accountable for the implementation of the Practice.
Ferrari is able to monitor diversity and inclusion mat-
ters through the continuous maintenance of the cer-
tifications related to Diversity and Equal Opportunity
(Equal Salary Certification and UNI/PdR 125).
In drafting this Practice and defining its ambi-
tions, both the Dutch Corporate Governance Code
(which was published on December 8, 2016, and
subsequently updated) and, more generally, the laws
and regulations of the countries in which Ferrari
operates were taken into consideration. In addition,
the following internal documents and international
principles/guidelines were considered. In detail:
Internal documents in force at the time of the
approval of this Practice:
• Code of Conduct;
• Human Rights Practice;
• Diversity Policy of the Board of Directors;
• Remuneration Policy of the Board of Directors;
• Human Capital Management Procedure;
• Annual Report.
Principles/guidelines issued by relevant internation-
al organizations:
• Guidelines on Diversity & Inclusion in the work-
place (UN Global Compact);
• Guiding Principles on Business and Human
Rights (United Nations);
• Declaration
on
Fundamental
Principles
and
Rights at Work and Conventions (International
Labour Organization);
• UN Agenda 2030 for Sustainable Development.
• EU Directive 2023/970 (Pay transparency);
• EU Directive 2022/2381 (Gender balance among
Directors);
• UNI ISO 30415/2021 (Human resource manage-
ment - Diversity and inclusion);
• UNI/PdR 125:2022 (Gender equality manage-
ment system);
• Other Italian Legislative Decrees;
Several procedures are in place to prevent discrim-
ination, for instance, during the hiring process, ca-
reer development, and training activities.
In line with our Diversity and Inclusion Practice
and to guarantee equal opportunities, our Company
operates a merit-based remuneration procedure,
not discriminating based on gender, age, nationality,
social status or cultural background. Furthermore,
Ferrari adopted a Remuneration Policy determin-
ing the compensation for the executive and non-ex-
ecutive Directors (please refer to the chapter
“Remuneration of Directors”).
The Policy for Gender equality and Diversity
and Inclusion, which applies to the entire Ferrari
Group, was drafted taking into account the inter-
ests of employees, irrespective of specific vulnera-
ble groups and the Diversity and Inclusion Practice
during 2024. The policy defines gender equality as a
key element in enhancing diversity and promoting
inclusion. Ferrari believes that an inclusive work envi-
ronment, open to diversity, is essential for attracting
and retaining top talent, fostering innovation, and
ensuring the sustainable success of the Company.
We monitor progress toward gender equality, inclu-
sion and women’s empowerment by collecting data
and feedback to assess the effectiveness of our ini-
tiatives, ensuring ongoing improvement. The results
obtained and future goals are communicated peri-
odically, transparently, and responsibly.
The Chief Human Resources Officer is the most
senior level in Ferrari that is accountable for the
implementation of these policies.
The Diversity and Inclusion Practice and the
Policy for Gender Equality and Diversity and Inclusion
are public on Ferrari’s corporate website and acces-
sible to all employees on the Ferrari intranet.
OUR TARGETS
In 2022, we defined as a strategic goal to maintain a
healthy growth rate of women in managerial posi-
tions, considering the percentage of women in the
total employee population. In 2017, we defined as an
appropriate target to have at least 18 percent wom-
en in managerial positions by 2027 in Ferrari Group,
in line with the Dutch Act on balanced gender di-
versity at the top of large companies of September
2021, and with our Practice. During the process of
target setting the interests of our employees were
taken into consideration, however, we did not en-
gage our own workforce or workers’ representa-
tives. The Compensation Committee and the ESG
Committee monitor the progress towards our tar-
gets on an annual basis through specific KPIs includ-
ed in this Report and if deemed necessary request a
target revision.
The continuous monitoring of our target shows
that women in managerial positions(64) at December
31, 2017 were 11.8 percent (while women repre-
sented 12.2 percent of the total employee popula-
tion) and at December 31, 2024 were 16.0 percent
(while women represented 16.1 percent of the total
employee population).
Our plan to achieve the target is to continue the
implementation of initiatives and actions, such as
fostering the value of diversity in the panel of hiring
candidates, monitoring the percentage of men and
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
women involved in career plans and salary reviews,
and defining clear diversity objectives for all lev-
els in the organization. For Ferrari it is important to
guarantee equal opportunities at all levels, for this
reason, consistency between the global percentage
and the managerial percentage is a key indicator in
our diversity strategy.
For Board of Directors Diversity Targets refers
to the “ESRS 2—General disclosures—Governance—
Board of Directors diversity targets” paragraph.
OUR ACTIONS
We have put in place many actions to reach the
objectives outlined in the Diversity and Inclusion
Practice. In 2023, we have received the renewal of
the Equal-Salary Certificate for providing equal pay
to men and women with the same qualifications
and positions in the Company. This accreditation,
confirmed in 2024, attested the Company’s ambi-
tion to create an inclusive and diverse working en-
vironment while fostering career development for
everybody. The Equal Salary certification covers all
the Ferrari Group and is valid for 3 years. During this
period, two monitoring reviews are carried out to
verify that the ambition to a fair and non-discrimina-
tory wage policy is constant. The certification pro-
cess involves both quantitative and qualitative eval-
uations. The quantitative evaluation, which must be
surpassed to proceed to the qualitative evaluation,
consists of a detailed statistical analysis of compen-
sation levels to verify that the gender pay gap is low-
er than 5 percent compared to a predictive statisti-
cal salary and that the accuracy of the data used is
greater than 90%. The qualitative evaluation assess-
es: (i) the CEO and Top Management’s ambition to
Diversity and Inclusion matters, (ii) how Corporate
processes and policies are fair in terms of gender,
(iii) employees’ perception of the inclusiveness of the
culture and (iv) the PDCA (Plan, Do, Check, Act) meth-
odology application in all of the aforementioned pro-
cesses. We see this certification not as an end point
but as a further stage of growth of the Company and
an opportunity to continue to implement tangible ac-
tions to ensure that everyone can pursue its own
professional growth. In 2020, Ferrari was the first
Italian Company to receive this specific certification.
No significant operational or capital expenditures
have been allocated to these actions in 2024 or are
planned for the future.
In December 2024, Ferrari facilities located in
Italy, received the UNI/PdR 125:2022 Certification,
which testifies our compliance with the guidelines
on the management system for gender equality and
with the set of performance indicators (KPIs) inher-
ent to gender equality policies on organizations, in
six strategic areas such as culture and strategy;
governance; human resources (HR) management
processes; opportunities for growth and inclusion
of women in business; gender pay equity and paren-
tal protection and work-life balance. The certifica-
tion is valid for three years and is subject to annual
auditing. Gender Equality Certification is a tool with
the objective of promoting the adoption of appropri-
ate policies to reduce the gender gap through fair
career opportunities, equal pay, gender manage-
ment policies and support for parenthood. We are
convinced of the need to continue promoting and
implementing an equal opportunities certification in
the years to come. This certification not only demon-
strates our ambition to equality and inclusion, but
also allows us to continuously monitor and improve
our business practices. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
To continuously improve our Diversity and
Inclusion approach and achieve our policy objec-
tives, we have defined some initiatives to support
our employees in their work-life balance. Since 2023,
we collaborate with a specialized education technol-
ogy company for our digital self-coaching project
dedicated to new parents. The aim is to recognize the
value of the parental experience and enable Ferrari
Group employees to apply the acquired parenting
talents and expertise into their jobs. Enrollment in the
program is open to new parents (children aged 0-3)
and expectant mothers. To assess the effectiveness
of this activity, at the end of the course, participants
were asked to fill in a survey. The purpose of this sur-
vey was to understand the degree of appreciation of
the project. In 2024, 30 percent of participants were
mothers, 96 percent of participants stated they
enjoyed the course, 70 percent stated they felt more
strength in facing parenting challenges, 60 percent
felt a better work-life balance, and 90 percent recog-
nized enhanced cross-cutting skills. Given the high
level of appreciation for the project, we will continue
this collaboration in the coming years. No significant
operational or capital expenditures have been allo-
cated to this action in 2024 or are planned for the
future. This initiative complements other parental
support projects included in the Company Welfare
program, as detailed in the “S1—Own Workforce—
Welfare and Working Environment” paragraph.
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OUR METRICS
In relation to the subjects of the Diversity and Inclusion Practice and the
other related policies, below the description of some figures.
EMPLOYEES BY GENDER AND EMPLOYEE CATEGORY
2024
Male
Male %
Female
Female %
Other
Other %
Not
Disclosed
Not
Disclosed %
Total
Managers and
Senior Managers
149
87.6%
21
12.4%
—
—%
—
—%
170
Middle Managers
661
83.2%
133
16.8%
—
—%
—
—%
794
White collars
1,456
73.7%
519
26.3%
—
—%
—
—%
1,975
Blue collars
2,294
91.9%
202
8.1%
—
—%
—
—%
2,496
Total
4,560
83.9%
875
16.1%
—
—%
—
—%
5,435
2023
Male
Male %
Female
Female %
Other
Other %
Not
Disclosed
Not
Disclosed %
Total
Managers and Senior
Managers
139
86.3%
22
13.7%
—
—%
—
—%
161
Middle Managers
618
83.4%
123
16.6%
—
—%
—
—%
741
White collars
1,369
74.9%
458
25.1%
—
—%
—
—%
1,827
Blue collars
2,077
91.9%
182
8.1%
—
—%
—
—%
2,259
Total
4,203
84.3%
785
15.7%
—
—%
—
—%
4,988
The data was extracted from the HR internal database and then classified into the four categories mentioned above, considering
employees in service as of December 31, 2024.
EMPLOYEES BY AGE GROUP AND EMPLOYEE CATEGORY
31 December 2024
<30
30-50
>50
Total
Managers and Senior
Managers
—
81
89
170
Middle Managers
4
536
254
794
White collars
311
1,403
261
1,975
Blue collars
394
1,558
544
2,496
Total
709
3,578
1,148
5,435
31 December 2023
<30
30-50
>50
Total
Managers and Senior
Managers
—
79
82
161
Middle Managers
4
519
218
741
White collars
270
1,321
236
1,827
Blue collars
285
1,492
482
2,259
Total
559
3,411
1,018
4,988
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SUSTAINABILITY STATEMENT
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The number of employees was extracted from the HR internal database,
subsequently each employee’s age was calculated based on the
difference between December 31, 2024 and their date of birth.
ADEQUATE WAGES
2024
Employees with adequate wage
100%
Employees in Italy and of foreign subsidiaries receive wages that exceed
the minimum wage provided by the ESRS guidelines (S1-10 AR 73). In
particular, all employees of the Group in Italy are covered by collective
agreements (Contratto Collettivo Specifico di Lavoro (CCSL) and a
collective bargaining agreement for our managers, signed by the Italian
trade union, Federmanager, on April 28, 2023).
GENDER PAY GAP
2024
Gross hourly pay
Male
Female
Gender Pay Gap
Managers and Senior Managers
€95.8
€93.4
2.5%
Middle Managers
€40.6
€42.8
(5.3%)
White collars
€25.2
€24.5
2.7%
Blue collars
€14.6
€13.6
6.9%
Total
€24.4
€26.4
(8.2%)
As indicated in the table above, we are in compliance with both the Equal
Salary and UNI/PdR 125 certifications, as we maintain a variation of less
than 10%.
The methodology considers both the gross hourly pay level and the
gender pay gap outlined in the ESRS Directive’s guideline, ESRS S1-16,
AR 98. Additionally, the total number of working days, excluding national
holidays and weekends, and contractual working hours, were calculated
for each country.
ANNUAL TOTAL COMPENSATION RATIO
2024
Annual total compensation for the organization’s highest paid-individual(1)
€7,983,034
Median annual total compensation for all of the organization’s employees excluding
the highest-paid individual
€54,126
Annual total compensation ratio(2)
147.5
(1)
The Total Annual Remuneration of the CEO includes
€3,123,629, recognized as share-based compensation
expense during the years ended December 31, 2024, for
equity awards granted under the Group’s Equity Incentive
Plan 2023-2025 and the Equity Incentive Plan 2022-2024 that
will vest in 2026 and 2025, respectively, subject to certain
performance and service conditions. See also “—Directors’
compensation” and “—Share-based compensation of
executive Directors”.
(2)
The annual total compensation includes base salary, short-
term incentives, competitiveness bonuses, long-term
incentives, one-time bonuses or other bonuses paid during
the year, cash allowances and benefits in kind, such as cars,
housing, private health insurance, wellness programs and
annual retention bonuses provided to the organization’s
highest-paid individual and to all employees over the course
of a year. For the purpose of calculating the annual total
compensation, full-time equivalent (FTE) pay rates are used
for each part-time employee and total target amounts of
bonuses and incentives were considered.
In line with the ESRS standards, in 2024, the ratio of the annual total
compensation for the highest-paid individual to the median annual total
compensation for all employees, excluding the highest-paid individual,
was 147.5. In 2024 the highest-paid individual was the CEO.
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For further details on the internal pay ratios calcu-
lated in line with the Dutch Corporate Governance
Code, please refer to the “Remuneration of Directors—
Remuneration of the Members of the Board of
Directors and the Executive Council—1. Remuneration
Strategy for the 2023 Financial Year—Lock up period—
Internal pay ratios” chapter.
HEALTH, SAFETY AND WELL-BEING
HEALTH AND SAFETY
OUR POLICY
We are dedicated to safeguarding the health and safe-
ty of the entire Ferrari workforce by preparing and
adopting every necessary and appropriate measure
to uphold our workplaces to the highest standards of
health, safety and hygiene.
We promote the dissemination and reinforcement
of a health and safety culture within our organization, in
particular by raising awareness on health and safety-re-
lated risks and fostering responsible behaviors of all our
employees, also through awareness-raising campaigns
and training activities. The practice covers the following
impacts: “Work-life balance, attention to mental health
with positive impacts on employees’ physical and mental
well-being” and “Work-related injuries (employees, work-
ers whose work or workplace is controlled by Ferrari)”.
We regularly evaluate the impacts of our operations
and investments to minimize any potential risk on our
employees and communities. We do so by implement-
ing all the necessary control measures and remediating
identified risks of accidents, injuries, and health and envi-
ronmental impacts. For further information please refer
to our “S1—Own workforce—Human Rights” paragraph.
Moreover, as part of the management system ISO
45001:2018, Ferrari has formalized two Health & Safety
policies(34) covering Ferrari S.p.A. and Mugello Circuit
S.p.A., respectively. Both policies aim to achieve the best
possible occupational health and safety conditions, includ-
ing accident prevention, for its employees and collabora-
tors, as well as for suppliers and contractors in general.
Through these policies, defined without stake-
holder involvement, Ferrari embraces and renews its
ambition to respect, protect and promote health and
safety, in accordance with legislative obligations, as
well as any other regulations or agreements voluntarily
entered into by the Company and in line with its impacts,
risks and opportunities. For information regarding the
interaction between material impacts, risks and oppor-
tunities and strategy and business model, refer to para-
graph “ESRS 2—General disclosures—Strategy”.
The most senior level in Ferrari that is account-
able for the implementation of these polices is the
Chief Executive Officer (CEO). Both policies are avail-
able on the Ferrari intranet.
OUR TARGETS
Our main objective is to promote and disseminate a
culture of health and safety across the entire Ferrari
Group, consistent with our policies described above.
We have internal targets on the reduction of the inju-
ry rate, the hours of training and the number of audits
conducted. We monitor the health and safety KPIs with
the ambition to reach the “zero-injury goal”. Since 2021,
targets have been measured annually with a defined
baseline and have been monthly monitoring for devia-
tions. Management reviews and sets these targets on
an annual basis, focusing on continuous improvement.
While our targets are generally lower than industry av-
erages, international standards set significantly higher
benchmarks. Employees have not been involved in the
target-setting process, however, targets are regularly
monitored and shared via the Ferrari intranet.
OUR ACTIONS
Below a description of the actions implemented that
contribute to the achievement of our targets.
We place a strong emphasis on the safety of our
people and are dedicated to the prevention of work-
place accidents.
Our hazard identification, risk assessment and inci-
dent investigation processes are developed in accor-
dance with the highest international and national volun-
tary standards and normative requirements on health
and safety. In addition to formal meetings being held
with employee representatives, periodic meetings are
also held with management to review safety issues and
share best practices. The risk assessment output is a
detailed risk list and the related preventive measures.
In addition, the assessment revealed the workers
most at-risk for each risk, including both employees
and non-employees, across Mugello Circuit S.p.A. and
Ferrari S.p.A. sites. These include areas such as the
foundry, heat treatment facilities, engine test rooms,
racetrack, car refueling stations, gasoline circuit inter-
vention workshops, warehouses, engine/component
test cells, assembly lines, and car storage facilities.
Periodic internal health and safety audits are per-
formed to ensure compliance with our health and
safety management system, applicable laws and best
practices of Ferrari S.p.A. and Mugello Circuit S.p.A..
Specifically, 100 percent of employees and non-em-
ployees of both Ferrari S.p.A. and Mugello Circuit S.p.A.
are fully covered by the health and safety management
system in accordance with legal requirements. Our
health and safety management systems are certified
ISO 45001:2018, a voluntary international standard,
which specifies the requirements of an occupational
health and safety management system with reference
to the activities performed within the premises of the
organization by its employees or external workers.
We continue to make significant investments in safety at
work, improvements in the existing structures and spe-
cific training have allowed us to achieve significant re-
sults. Mandatory health and safety training is provided to
all new hires during the second day of the induction pro-
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
gram, while periodic sessions are developed for all em-
ployees. We provide employees who test our cars with
specific on-track driving training to make sure they have
all the skills required to perform emergency maneuvers,
if necessary. In addition, a specific health and safety sec-
tion is part of the training program of the “Department
Team Leaders”. Moreover, periodic meetings with the
Representatives of Safety Workers (RLS) are scheduled
quarterly and not just annually, as required by the CCSL
(“Contratto Collettivo Specifico di Lavoro”) to address
any potential health and safety threat that could arise.
Mandatory trainings are completed by 100 percent
of the addressees and cover Ferrari S.p.A. and Mugello
Circuit S.p.A.. Health and safety mandatory training has
been in place since the obligation exists. These activities
are conducted annually and, according to local regula-
tions and internal practices, will continue in the coming
years. At present, the primary method for assessing the
effectiveness of the training content is the test admin-
istered at the end of the course. No significant opera-
tional or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
We remain dedicated to advancing the program
aimed at highlighting the “near misses”: events that
could have caused injuries but did not. Active since 2021
in Ferrari’s production facilities, the program operates
on a “bottom-up” logic, enabling everyone, including
those who carry out simple operational roles, to sub-
mit reports. The “Near Miss program” aims to map haz-
ards or weaknesses in Ferrari’s risk management and
correct them to prevent future incidents. This activity
is set to continue in the coming years. Currently, sim-
ilarly to the other health and safety actions, effective-
ness of measures results from the low frequency and
magnitude of incidents. No significant operational or
capital expenditures have been allocated to this action
in 2024 or are planned for the future.
OUR METRICS
The table below shows the number of injuries, the working hours
and the injury rate divided between employees and non-employees
monitored in the reporting period. In 2024, the injury rate was 0.98 with
9 occurrences and no fatalities occurring. Each work-related injury is
analyzed to determine the cause, and appropriate measures to avoid
reoccurrences are then implemented. We continue to monitor injuries
while strengthening prevention efforts and conducting in-depth analysis
to prevent recurrence. The metrics reported below are not validated by
an external body. The following data is in headcount.
NUMBER OF INJURIES AND INJURY RATE
EMPLOYEES
INJURIES
2024
Total number of recorded working injuries
9
Of which working injuries with absence from 1 to 3 days
4
Of which working injuries with absence of over 3 days
5
Of which serious working injuries (not considering deaths)
—
Of which number of fatalities as result of work-related injuries
—
Working hours
9,146,021
Number of days lost to work-related injuries and fatalities from work-related accidents
191
Recorded working injury rate
0.98
WORK-RELATED ILL HEALTH
2024
Number of cases of recordable work-related ill health of employees
1
Of which number of fatalities in own workforce as result of work-related ill health
—
Working hours
9,146,021
Number of days lost to work-related ill health and fatalities from ill health related to employees
193
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NON EMPLOYEES
INJURIES
2024
Total number of recorded working injuries
1
Of which working injuries with absence from 1 to 3 days
—
Of which working injuries with absence of over 3 days
1
Of which serious working injuries (not considering deaths)
—
Of which number of fatalities as result of work-related injuries
—
Working hours
1,692,308
Number of days lost to work-related injuries and fatalities from work-related accidents
9
Recorded working injury rate
0.59
WORK-RELATED ILL HEALTH
2024
Number of cases of recordable work-related ill health of employees
—
Of which number of fatalities in own workforce as result of work-related ill health
—
Working hours
1,692,308
Number of days lost to work-related ill health and fatalities from ill health related to employees
—
Health and safety contents are also covered by the CCSL (Contratto
Collettivo Specifico di Lavoro), signed on March 8, 2023, and also by the
Accordo Premio di Competitività Ferrari, signed on September 25, 2019,
and renewed on November 13, 2023, valid for the four year period 2024-
2027, providing a specific Health and Safety Commission involving, on a
monthly basis, both the Company and the workers’ representatives for
health and safety. CCSL and Accordo Premio di Competitività Ferrari
cover 93.4 percent of Ferrari S.p.A. and Mugello Circuit S.p.A. employees.
OTHER WORKERS WORKING ON FERRARI SITES
FATALITIES
2024
Number of fatalities as result of work-related injuries
—
Number of fatalities in own workforce as result of work-related ill health(1)
—
(1)
The definition of ill-heath includes the diseases of “ILO List of Occupational Diseases”.
During 2024, no practice of Ferrari has caused or contributed to
significant adverse health and safety impacts on its workforce.
The metrics are monitored through our internal portal, including the
number of injuries, days of absence, and work-related illnesses for both
employees and non-employees. For other workers operating on Ferrari
sites, metrics are received only via email, as suppliers report incidents
directly. Worked hours are provided by the Human Resources function
through their portal. All data is consistent with the S1-14 AR 83 to AR 95.
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WELFARE AND WORKING ENVIRONMENT
OUR ACTIONS
We know that the highest individual and team per-
formance is only achieved if employees feel they
are in an empowering environment. We also believe
that the quality of our products cannot be separated
from the lives of the people working at Ferrari.
One of our many strengths is the ability to attract,
retain and develop talents. Since 1997, we have
launched our unique set of initiatives, with the intention
of developing a high-quality working life for Ferrari
employees, both professionally and personally. Over
the years, the project has become a pillar of our cul-
ture, based on redesigning the working environment,
enforcing a safety-first culture, enabling individual
development, enhancing teamwork and building a
community now comprising 60 different nationalities.
Our complex in Maranello, a state-of-the-art work
environment, was designed to reinforce the syner-
gistic relationship between work and results. With
the needs of our employees firmly in mind, our man-
ufacturing facilities are specifically created to com-
bine carefully designed lighting systems - projected
to maximize the amount of natural light - and several
external and internal green areas. Thermal comfort
throughout the factory is also a crucial requirement
and, since 2013, the in-plant foundry is equipped
with a cooling system that makes it air-conditioned
and climate controlled. Special measures aimed
at reducing the environmental impact and noise
using advanced technologies are also in place. As an
example, the design of our manufacturing facilities
is aimed at providing the workplace with maximum
acoustic comfort thanks to noise reduction solu-
tions (source and reverberation). In addition, in 2024,
we inaugurated the e-building, based on the concept
of flexibility. The e-building will house the production
and development of internal combustion, hybrid
and full electric models, it is also a strategic asset
for the construction of electric motors, batteries,
electric axles and vehicle assembly. In this facility,
various solutions have been designed to improve
the well-being of people in the work environment:
ergonomic workstations, relaxation areas, acoustic
and visual comfort, and the correct mix of natural
and artificial lighting are some of the aspects that
are the most beneficial.
As part of its longstanding commitment to
well-being and work-life balance, Ferrari has been
offering the preventive medical program “Formula
Benessere”
since
1999.
This
program
allows
employees in Italy to participate voluntarily, free of
charge, in a single annual appointment comprising
specialist medical consultations.
Until 2023, employees could undergo specific
medical examinations within the Company prem-
ises. Starting from 2024, the program has been
revised to provide each employee with a compre-
hensive medical check-up. This includes six special-
ist consultations, with the option to add a gynecolog-
ical or urological examination, along with a series of
blood tests. Notably, the check-up is designed to be
completed in a single session, during working hours.
The specialist visits cover ophthalmology, car-
diology, dermatology, internal medicine, and sports
medicine. Ferrari also extends this dedicated annual
check-up, free of charge and on a voluntary basis,
to its employees’ children. Starting in 2024, the eligi-
ble age range for children has been expanded from
5-15 years to 4-17 years. In 2024, more than 2,500
employees, representing around 52 percent of eli-
gible population, and over 1,000 children benefited
from medical and specialist check-ups performed
through “Formula Benessere”, which will continue
in the following years. These cover Ferrari S.p.A.,
including Italian stores. The effectiveness of these
actions is assessed through a statistical report on
employee and children attendance to the welfare
initiative, and an internal satisfaction questionnaire.
Moreover, employees can access medical and phys-
iotherapeutic support during trips related to the
Formula 1 World Championship.
To promote an active lifestyle among our employ-
ees, our program also includes the access to a gym.
It is available for all the employees in Maranello, while
employees at the Modena plant have a free mem-
bership in one of the city gyms. No significant oper-
ational or capital expenditures have been allocated
to this action in 2024 or are planned for the future.
As part of the initiatives to promote work-life bal-
ance, Ferrari offers the “Formula Estate Junior” pro-
gram to strengthen the sense of belonging among
employees and their families while, above all, providing
tangible support for parenting during the Italian sum-
mer school break. This project, created for the children
of Ferrari Maranello and Modena employees aged 3 to
13, provides a summer camp centered around fun and
structured with socio-educational programs. These
include sports activities, excursions, and educational
workshops tailored to each age group.
The fifteenth edition saw the participation of
more than 800 children. This initiative, which will con-
tinue in the following years, provides children with
an exciting and educational experience. Each edi-
tion of the “Formula Estate Junior” camp is designed
around a specific educational theme developed by
professional educators in collaboration with the
local community. The effectiveness of this activity is
assessed through the monitoring of children’s par-
ticipation and an internal satisfaction questionnaire
dedicated to employees. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
Education has always been one of Ferrari’s most
important values to uphold. "Formula Scuola” is a pro-
gram that supports education through the award of
scholarships to outstanding students and textbook
reimbursements. The scholarships, named after
our founder Enzo Ferrari, are awarded to Ferrari
S.p.A. employees and their children who have con-
tinued their studies and achieved excellent academic
results. In 2024, our Chairman and CEO presented
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105 scholarships to talented students during a spe-
cial award ceremony organized for the occasion. The
scholarship program has reached its fifteenth edi-
tion and will continue in the future. The effectiveness
of these actions is assessed through a report on the
number of employees and children enrolled in this
initiative and an internal survey. No significant opera-
tional or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
The textbook reimbursement initiative, on the other
hand, is available to children of Ferrari employees in
Italy enrolled in middle and high schools. In 2024, it
benefited 782 employees.
Many other activities to foster a shared sense of
belonging were carried out in 2024 by the Ferrari
Group, including the long awaited Family Day, the Finali
Mondiali at the Imola Circuit, and Esperienza Ferrari.
CHARACTERISTICS
OF FERRARI EMPLOYEES
Ferrari’s workforce mainly consists of blue and white-collar workers. Our
workers operate in various areas, including the foundry, warehouses,
assembly lines, test rooms for engines and car components and the
racetrack. Our workforce is divided between employees and non-
employees, with the latter including agency workers, staff lease workers
and interns. The entire own workforce of the Ferrari Group has been
included in the scope of the disclosure under ESRS 2. Additionally,
except for health and safety matters, there are no people with particular
characteristics that may be at greater risk of harm.
As of December 31, 2024, Group employees were 5,435, an increase of 9
percent compared to December 31, 2023 4,988. We expect to continue
growing over the next few years to meet our key priorities.
2024
Number of employees (head count)
Country
Female
% Female
Male
% Male
Other
% Other
Not
Disclosed
% Not
Disclosed
Total
Total Italy
744
14.6%
4,344
85.4%
—
—%
—
—%
5,088
Total Rest of
the world
131
37.8%
216
62.2%
—
—%
—
—%
347
Total Group
875
16.1%
4,560
83.9%
—
—%
—
—%
5,435
2023
Number of employees (head count)
Country
Female
% Female
Male
% Male
Other
% Other
Not
Disclosed
% Not
Disclosed
Total
Total Italy
665
14.3%
4,001
85.7%
—
—%
—
—%
4,666
Total Rest of
the world
120
37.3%
202
62.7%
—
—%
—
—%
322
Total Group
785
15.7%
4,203
84.3%
—
—%
—
—%
4,988
As shown in the tables above, 93.6% of our employees work in Italy, which
is considered the only significant location of operation as this is where
our plants and most of our workforce is located.
Employees are categorized based on the terms and conditions of
their employment contracts. Permanent employees have an indefinite
employment contract, whereas, temporary employees have fixed-term
contracts. Non-guaranteed hours employees are employed on contracts
without a minimum guaranteed number of working hours. Full-time
employees work the standard hours as defined by applicable legislation
or the employment agreement. Part-time employees, however, work
fewer hours than full-time thresholds. These distinctions apply across all
countries where Ferrari has facilities.
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Geographical distribution information is obtained from the HR internal
database. All employees covered by the CCSL, along with Ferrari N.V., fall
within the Italian perimeter
.
2024
Female
Male
Other
Not
Disclosed
Total
Number of employees (head count)
875
4,560
—
—
5,435
Number of permanent employees (head count)
853
4,536
—
—
5,389
Number of temporary employees (head count)
22
24
—
—
46
Number of non-guaranteed hours employees (head count)
—
—
—
—
—
Number of full-time employees (head count)
853
4,556
—
—
5,409
Number of part-time employees (head count)
22
4
—
—
26
Number of non-employees (head count)
249
820
—
—
1,069
2024
Total Italy
Total Rest of the world
Total Group
Number of employees (head count)
5,088
347
5,435
Number of permanent employees (head count)
5,085
304
5,389
Number of temporary employees (head count)
3
43
46
Number of non-guaranteed hours employees (head count)
—
—
—
Number of full-time employees (head count)
5,064
345
5,409
Number of part-time employees (head count)
24
2
26
Number of non-employees (head count / FTE)
1,062
7
1,069
Most of our employees have a permanent contract (99.2%) and almost all
our employees are full time (99.5%).
The data in the tables above includes all employees working for Ferrari’s
entities and the data is disclosed in head count. The information refers to
the end of the reporting period.
The data was directly extracted from the HR internal database and
classified into the categories described above.
EMPLOYEE TURNOVER BY GENDER
Female
Male
Other
Not disclosed
Total Group
Employees at December 31, 2024
875
4,560
—
—
5,435
Departures
44
180
—
—
224
Departures (%)
5.0%
3.9%
—%
—%
4.1%
The employee turnover is calculated using as the nominator, employees
who left during the year due to dismissal, retirement, or death in service,
and as the denominator, the number of employees at the end of the
reporting period.
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CHARACTERISTICS OF FERRARI NON-EMPLOYEES
TOTAL NUMBER OF WORKERS WHO ARE NOT EMPLOYEES
AND WHOSE WORK IS CONTROLLED BY THE ORGANIZATION
2024
2023
Agency workers
235
227
Staff leasing workers
752
680
Interns
82
81
Total
1,069
988
Non-employees contribute to various departments across the Company,
depending on the workload and ongoing projects. Agency and staff
leasing workers are both hired through agencies, though they differ in
employment terms: agency workers are hired on a temporary contract,
while staff leasing employees hold permanent contracts. Interns are
managed separately, and participants in school-to-work programs and
curricular internships are excluded from the total count. The information
in the table above refers to the end of the reporting period and refer to
non-employees in head count.
Please refer to “Overview of Our Business—Employees” for information
on employees.
DATA RESPONSIBILITY, PRIVACY
AND CYBERSECURITY
We regard the protection of personal data as a top pri-
ority of our organization. We respect the right to pri-
vacy of our workforce, irrespective of their functions
or characteristics, undertaking to use the data and in-
formation provided in a legitimate, fair and transpar-
ent manner in accordance with applicable laws.
In conducing our business operations, we strive
to act in accordance with the current legislative
framework that governs the processing of per-
sonal data at a global scale, including but not limited
to the General Data Protection Regulation “GDPR”
(EU Regulation no. 2016/679), the UK GDPR and the
California Consumer Privacy Act of 2018 “CCPA”.
The data protection legal framework has steadily
developed in recent years and has brought a new
awareness to privacy.
Workforce personal data are collected for the
management of the employment relationship, as
well as for regulatory and organizational purposes.
Such data are handled with the utmost level of accu-
racy and confidentiality.
OUR POLICY
Within its implementation of the provisions set
forth in the EU/2016/679 General Data Protection
Regulation (GDPR), Ferrari decided to describe
the privacy organizational structure of the Ferrari
Group and to establish and regulate the Ferrari
Privacy Committee. Ferrari also identified the in-
dividuals involved in the processing activities and
their respective roles and responsibilities, including
the Data Protection Officer “DPO”, responsible for
the compliance with the Privacy regulation.
The workforce Privacy Policy, available on the
Ferrari intranet, is applicable to all employees of
Ferrari S.p.A., while the subsidiaries and branches of
the Ferrari Group worldwide implemented local pri-
vacy notices in compliance with the applicable local
legislation. The recipients of this Policy are all direc-
tors, managers, employees, temporary workers, in-
terns, and scholarship holders of the Ferrari Group.
We care about processing data in a safe and
transparent manner, and in this respect, according
to our Code of Conduct, we take the utmost care to
protect the personal data of the individuals who are
part of Ferrari and those who come into contact with
us. The practice covers the following impacts and
risk: “Willful and/or unintentional security breaches
involving confidential business information, stake-
holder privacy and losses of stakeholder data, for
the detriment of stakeholders (employees and cli-
ents)” and “Cybersecurity incidents deriving from
successful external/internal cyber attacks (phishing,
malware, ransomware, social engineering, etc.) on
Ferrari or its Third Parties”. In line with our impacts,
opportunities, and risks, the Code of Conduct
includes specific guidelines related to respect and
ensure data protection for confidential information
and personal data. Ferrari S.p.A. updated the Privacy
Policy in January 2024. During 2024, the Ferrari
Group also updated the Privacy Policies of its sub-
sidiaries’ employees in Germany, France, Australia,
Dubai branch, UK, Singapore and Japan.
Privacy and personal data protection are also
covered by our Human Rights practice. According
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to the latter, Ferrari processes all the collected
personal data in compliance with applicable data
protection laws and security and privacy policies.
Please refer to the “S1—Own workforce—Human
Rights” paragraph for further information.
OUR TARGETS
We strive to ensure that every step of our production
follows current regulations, however, we have not set
specific targets on data protection and privacy. Our
priority is to ensure compliance with data protection
and privacy laws, particularly with the EU/2016/679
General Data Protection Regulation (GDPR).
OUR ACTIONS
Below a description of the actions implemented to
effectively manage the potential negative impact
identified during the Double materiality analysis.
For further information please refer to “ESRS 2—
Impacts, risks and opportunities management”.
We have adopted a progressive approach to
ensure compliance with data protection and pri-
vacy law requirements. We have implemented
new processes such as digital systems to collect
consents and privacy notices acknowledgments,
the adoption of a governance tool to periodically
update the records of processing activities, to per-
form privacy impact assessments, to perform the
balancing test and to manage cookies. Moreover,
we have created internal procedures among which
the Privacy Procedure, the Privacy by Design
Procedure, the Data Retention Procedure, the Data
Breach Procedure, the Appointment and manage-
ment of system administrators, the Data Subject
Access
Requests
Management
Procedure.
To
answer requests from data subjects and to comply
with applicable regulations, we have implemented
an online portal (OneTrust) which allows anyone,
including employees and consumer and end-users,
to make privacy requests in a structured format.
Ferrari has also in place a specific e-mail address
where employees and stakeholders can submit their
privacy requests. We provide the operating instruc-
tions for authorized persons within the Company
who process personal data, we have identified inter-
nal privacy referents within Company departments
and we have in place an internal Privacy Committee.
To track and assess the effectiveness of this tool
we have implemented specific KPIs related to data
breaches. No significant operational or capital
expenditures have been allocated to these actions in
2024 or are planned for the future.
In case a transfer of Personal Data to third par-
ties is necessary, we have implemented a Data
Processing Agreement (DPA) to be signed between
Ferrari and the third-party processing personal
data on its behalf. The process requires the filling
out of a specific “DPA” section during the issuance of
a privacy relevant purchase request to the supplier.
An Intercompany Data Protection Agreement has
been signed by Ferrari S.p.A. and its subsidiaries.
The Compliance department, with the support
of the Human Resources department, identifies and
proposes appropriate awareness-raising activities
for Ferrari’s personnel on personal data protection
and on the rules defined in Ferrari’s internal regu-
lations. Training is mandatory for every new hire,
as well as when there are changes in duties or the
introduction of significant new tools, with significant
impact on the processing of personal data. E-learning
courses are organized for and addressed to employ-
ees who are involved in the processing of personal
data, while courses related to the correct collection
of client data and their consents are organized for the
Dealer Network. Whereas, dedicated face-to-face
trainings have been delivered to the Referents of the
Privacy Structure and to at risk areas. The purpose
of the training is to raise awareness on data risks
and prevention measures. It focuses on key aspects
of personal data regulations, available measures to
prevent harmful events, relevant responsibilities
and ways to stay updated on the Company’s security
measures. The effectiveness of the training courses
in guaranteeing proper data protection and privacy
is assessed through a final test. In 2024, there were
no significant changes to these trainings and for the
future, we will continue with the activity carried out
in previous years. No significant operational or capi-
tal expenditures have been allocated to this action in
2024 or are planned for the future.
Any unauthorized access to our information
technology systems may compromise the confiden-
tiality of Ferrari’s intellectual property or the privacy
of our clients’ information and expose us to claims as
well as reputational damage. For these reasons, we
have always paid the utmost attention to cybersecu-
rity. To defend, detect and respond to cybersecurity
incidents, we have implemented several actions,
among which we conduct proactive privacy and
cybersecurity reviews of systems and applications,
including yearly attack exercises to test our cyber-
security posture, audit applicable data policies, per-
form penetration testing using external third-party
tools, techniques and security service providers to
test our posture, operate a bug bounty program to
encourage proactive vulnerability reporting.
We regularly engage external auditors and con-
sultants to support with periodic security assess-
ments such as penetration testing, continuous and
automatic vulnerability assessment, email and web
filtering, endpoint and infrastructure protection,
data loss prevention, authentication systems, and
advisory and support on certain cybersecurity
enhancements. Worldwide primary cybersecurity
companies are frequently involved. These partner-
ships enable us to leverage specialized knowledge,
insights and training, ensuring our cybersecurity
strategies and processes remain aligned with fast
evolving risk scenarios and new technologies. Every
activity, involving the entire Ferrari Group’s IT infra-
structure, is continuously monitored both by the
systems themselves and through internal controls.
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These activities are structured to include periodic
reviews at an appropriate frequency to minimize the
risk of cyberattacks to the greatest extent possible.
Annually, all Ferrari employees are provided with
specific trainings on information security and cyber-
security. The same training is provided to external
workers too. This training is delivered both online
and in-person, and it is part of regularly launched
training campaigns. Internal “phriendly phishing”
campaigns are regularly carried out to assess the
level of awareness of the Ferrari population regard-
ing phishing. Phished people have been and will be
addressed by specific risk-based training activities.
At the end of each training session, a learning test is
administered to verify the effectiveness of the top-
ics discussed. The testing cycle is continuously per-
formed (8 times in the last 7 years, plus 4 complete
cycles planned in 2025) constantly varying the bait to
stay aligned with the new and ever-changing attack
techniques. Training is similarly performed, always
considering the newest threats (e.g. IA and deep
fake, Quishing) and, whenever necessary, tailored to
specific needs or topics.
The overall operational and capital expendi-
ture allocated for these activities was about € 4
million (please refer to the paragraph Consolidated
Financial Statement) in 2024. For 2025, we have
defined activities aligned with the previous year,
updates are possible given that we plan to develop
our new business plan in 2025.
For further details see “Corporate Governance—
Cybersecurity”.
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S2 – WORKERS IN
THE VALUE CHAIN
STAKEHOLDER ENGAGEMENT
Our current practice does not entail the direct in-
volvement of value chain workers or their repre-
sentatives in the assessment of impacts, both ac-
tual and potential, that might affect them. Instead,
we focus on the interaction and dialogue with the
representatives of the companies for which these
workers work. Please refer to paragraph “G1
Business Conduct—Responsible purchasing practic-
es” and to paragraph “ESRS 2—General disclosures—
Strategy—Interests and views of stakeholders” for
more information about the interests, views, and
rights of Ferrari’s value chain workers.
WORKERS IN THE VALUE CHAIN
Ferrari’s value chain involves a diverse range of peo-
ple across various sectors and geographical loca-
tions. Alongside our own workforce, workers within
the value chain also play a fundamental role.
Upstream workers are part of the supply chain
that provides raw materials, components and ser-
vices to Ferrari. They include metal and mineral
extraction workers, involved in the extraction and
refining of metals used in the production process,
and workers engaged in the production of compo-
nents and materials. In particular, regarding supply
chain workers engaged in the mining and process-
ing of tantalum, tin, tungsten and gold (collectively,
‘3TG’ or ‘Conflict Minerals’), Ferrari maps its supply
chain to gain awareness of the sourcing status of
3TG materials from potential conflict zones to avoid
knowingly using conflict minerals that support or
fund inhumane treatment, including human traf-
ficking, slavery, forced labor, child labor, torture and
war crimes. At the end of this monitoring, Ferrari
prepares a Final Report to be submitted to the SEC.
In cases where high-risk suppliers are identified, the
Compliance Department and the Management of
the Purchasing Department determine the interven-
tion strategy to be adopted. At the end of each year,
the results of the above-mentioned campaign are
shared with the relevant buyers to ensure the imple-
mentation of any actions defined by Compliance and
Management. Please refer to the “S2—Workers in
the value chain—Conflict minerals” section for more
information. Except for 3TG's workers in high-risk or
conflict-affected countries, we have no other infor-
mation regarding geographies, country or other
levels, or commodity areas within the Company’s
value chain where there may be a significant risk of
child labor, or forced or compulsory labor. However,
we gather information on business ethics, environ-
ment practices, human rights, working condition
and health and safety for workers in our supply
chain through SAQ (Self-Assessment Questionnaire)
surveys provided by Drive Sustainability(35). This pro-
cess has primarily involved our Tier-1 suppliers and,
in certain cases, extends to Tier-2 or Tier-3 suppliers.
Downstream workers include mostly dealers
responsible for selling Ferrari cars and logistics
workers that manage the transportation and deliv-
ery of vehicles and parts. In addition, workers oper-
ating on our sites that are not part of our own work-
force (i.e. temporary workers) include consultants,
and employees of cleaning and temporary building
maintenance companies.
Currently, we do not have detailed information
on the presence of value chain workers who could
be particularly vulnerable to the negative impacts
identified through the Double materiality analysis.
Furthermore, we have a few workers involved in
the joint venture with which we collaborate.
OUR POLICY
We encourage the adoption and sharing of sustain-
able practices among our business partners, sup-
pliers and dealers. All suppliers must respect the
Ferrari Code of Conduct, which includes the set of
values recognized, adhered to and promoted by our
Company. In line with our impacts, opportunities and
risks, the Code of Conduct was updated in 2023 to
include specific guidelines relating to the respect of
human rights, environmental protection, ethical and
integrity principles, with consideration also given to
the value chain.
As indicated in the paragraph on the Code of
Conduct, this also extends to all suppliers, dealers,
advisors and agents of Ferrari, as there is no spe-
cific Code for them.
In line with our Code of Conduct, we defined our
Human Rights practice that sets out key principles
such as the prohibition of child labor, compulsory
labor and forced labor, trafficking and serfdom,
attention to a healthy and safe working environment,
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rejection of any form of abuse, harassment and dis-
crimination, zero tolerance concerning corruption
and protection of the rights of local communities.
The Practice is applicable to the entire Ferrari Group.
The Practice addresses all workers who work for or
on behalf of Ferrari, such as suppliers and business
partners across its upstream and downstream
value chain.
For more information about the practice,
please
refer
to
“S1—Own
workforce—Human
Rights” paragraph.
In 2024, to the best of our knowledge there were
no severe human rights issues or incidents, nor any
cases of non-respect of the human rights principle
embodied into the internationally recognized stan-
dards mentioned in the “S1—Own workforce—Human
Rights” paragraph, among value chain workers.
OUR TARGETS AND METRICS
Currently, we have not defined specific targets
for workers within our value chain. To guarantee a
high standard of ethics and behavior, we require
all third parties that wish to collaborate with us to
sign the Statement of Commitment, an annex of our
contract, to comply with the Code of Conduct and
the Organizational Model established by Legislative
Decree no. 231/2001. For more information on this
document please refer to paragraph “G1—Business
Conduct—Responsible
purchasing
practices”.
Furthermore, Ferrari uses specific tools to monitor
and stay informed about its suppliers. These tools al-
low for a thorough screening of all available online
news regarding environmental, social and gover-
nance (ESG) issues. This process not only ensures
greater transparency, but also enables Ferrari to
make more informed decisions, thus promoting the
social responsibility and ethical commitment of its
supplier network.
OUR ACTIONS
We are in the process of structuring an ESG Due
Diligence activity on our suppliers, however, we
have not yet formalized a specific action plan to ad-
dress the material impacts, risks and opportunities
on all workers in the value chain.
This implies that we have yet to implement sys-
tematic measures to identify, assess and mitigate
risks that may jeopardize the well-being of workers
involved in the different stages of our value chain.
Furthermore, we have not developed concrete
strategies to exploit opportunities that may arise
in relation to the management of labor rights and
working conditions within the value chain. However,
we recognize the importance of taking a proactive
approach in this area and are actively working to
structure our due diligence process with the aim of
developing a strategic framework for action.
The Drive Sustainability questionnaire and the
Compliance Evaluation are preliminary activities for
a more structured ESG Due Diligence activity also
aimed at preventing the above-mentioned potential
negative impacts on workers along the value chain.
Before entering in any form of commercial collab-
oration with a supplier, we undertake a thorough
assessment through the Compliance Evaluation
process, which allows us to analyze the supplier
from multiple angles, ensuring that it meets high
ethical and legal standards. The main areas of anal-
ysis include anti-corruption, trade sanctions, money
laundering, conflict of interest, ethics (including
human rights) and reputation. On the other hand,
the Drive Sustainability Questionnaire is mainly
intended for those with whom a contract is already
in place. Through the latter we request suppliers to
provide detailed information regarding their social
and environmental practices. In this questionnaire,
we request general information regarding their
code of ethics, implemented human rights policies
and the existence of complaint mechanisms or for-
mal complaint handling procedures. In addition, we
ask for specific information on workers’ health and
safety to ensure that the highest standards are met.
In addition to social aspects, the questionnaire also
includes questions on environmental issues. In par-
ticular, we examine the responsible sourcing of raw
materials and the sustainable management of the
entire value chain. This holistic approach allows us
not only to assess the current practices of our sup-
pliers, but also to promote a collective commitment
to sustainability and social responsibility within our
supply chain. For more information on the Drive
Sustainability Questionnaire and the Compliance
Evaluation, please refer to paragraph “G1—Business
Conduct—Responsible purchasing practices”.
In 2024, in line with our aim of structuring ESG
due diligence activities, we decided to undertake an
initial risk assessment process that will cover both
internal aspects of our organization and employ-
ee-related aspects along the entire value chain. This
initiative was motivated by the emerging need to
comply with new regulations, such as the Corporate
Sustainability Due Diligence Directive (CSDDD), which
requires companies to assess and manage human
rights and environmental risks along the entire value
chain. Through this process, we aim to strengthen
our sustainable governance, consolidate our repu-
tation, and contribute to long-term responsible and
sustainable development, to align with the latest
regulatory and social expectations. The value chain
risk assessment will provide us with an opportunity
to improve our practices and create shared value.
Based on the findings, we will evaluate actions to
address risks related to workers in our value chain.
The actions described above are the starting point of
a structured ESG due diligence activity, which will be
extended to all suppliers in the coming years.
Regarding the ethics violations reporting chan-
nels made available by Ferrari, as specified in the
“G1 Business Conduct—Whistleblowing” paragraph,
our official Ethics Helpline also allows workers in
the value chain to report violations of the Code of
Conduct. However, there is no dedicated activity to
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assess whether value chain workers are aware of
this channel even if it is publicly available on Ferrari
corporate website. Currently, we do not have for-
malized processes to systematically address poten-
tial negative impacts that could affect workers in
our supply chain. However, in daily practice, Ferrari
is committed to taking proactive measures when
it becomes aware of a possible involvement in sit-
uations of human rights violations associated with
workers in our supply chain. In such cases, our
Company proceeds with a direct approach, con-
tacting the supplier involved to initiate a construc-
tive dialogue. This exchange is aimed at obtaining
clarification and detailed information on the specific
circumstances. This not only allows us to better
understand the situation, but also to work together
with the supplier to find appropriate solutions and
ensure decent working conditions for all workers.
CONFLICT MINERALS
Ferrari supports the goal of preventing the exploita-
tion of minerals violating human rights, with specific
reference to tantalum, tin, tungsten and gold (collec-
tively, “3TG” or “Conflict Minerals”) originated from
high-risk or conflict affected countries (“Covered
Countries”), that may be included in our cars and/
or products. As part of Ferrari’s commitment to re-
spect and promote human rights and the sustain-
ability of its operations, Ferrari selects suppliers
based not only on the quality and competitiveness of
their products and services, but also on their adher-
ence to social, ethical and environmental principles,
as outlined in Ferrari’s Code of Conduct.
Therefore, we place a high priority on responsi-
ble sourcing and the integrity of our suppliers, and
we strive to ensure that the livelihoods of individuals
in Covered Countries are not harmed by our efforts.
In particular, Ferrari has developed actions and
strategies aimed at complying with the applicable
Conflict Minerals National and International rules and
regulations, such as by way of example Section 1502
of the Dodd-Frank Act and the subsequent rules
promulgated by the U.S. Securities and Exchange
Commission, requiring companies to determine
whether 3TG in their supply chain originated from
the Democratic Republic of Congo and its adjoining
countries, and whether the procurement of those
minerals supported the armed conflict.
Due to the complexity of our supply chain, we
are dependent upon suppliers to provide the infor-
mation necessary to correctly identify the smelters
and refiners that produce the 3TG contained in our
products and take appropriate action to determine
that these smelters and refiners source responsibly.
In accordance with the Organization for Economic
Co-operation
and
Development
(“OECD”)
Due
Diligence Guidance for Responsible Supply Chains
of Minerals from Conflict- Affected and High-Risk
Areas, we have established an internal management
system in relation to the supply of Conflict Minerals
with the objective, inter alia, of:
• minimizing the trade in Conflict Minerals that
directly or indirectly finance or benefit armed
groups anywhere in the world;
• enabling legitimate minerals from conflict and
high-risk regions to enter Ferrari’s global supply
chain, thereby supporting the economies and
the local communities that depend on the export
of such minerals.
Specifically, we expect our suppliers to assure that
the 3TG in their products do not directly or indirect-
ly finance or benefit armed groups in the Covered
Countries.
Moreover, we require all of our 3TG suppliers to
conduct the necessary due diligence and provide us
with adequate information on the country of origin
and source of the materials used in the products
they supply to us. The activity involves various sup-
plier categories, including direct material suppliers
for both Sports Cars and Racing, Lifestyle suppliers
whose products are sold through Ferrari Stores,
indirect suppliers providing items sent to custom-
ers between vehicle orders and final shipping (such
as key holder gifts or 1:43 car models), and spare
parts business suppliers whose products are pur-
chased and resold to customers. With reference to
2023, 95.73 percent of Ferrari’s direct suppliers(36) by
purchased value submitted responses to our sur-
vey, in 2022 the response rate was 95 percent. The
due diligence program for 3TG suppliers involves
Tier 1 direct production, lifestyle suppliers, contact
plan suppliers and after-market part direct suppli-
ers. Ferrari conducts due diligence on the source
and chain of custody of the 3TG necessary for our
products once a year, starting in December and
concluding the activity within May to analyze the col-
lected information.
The design of Ferrari’s conflict minerals program
is consistent with the Organization for Economic
Co-operation
and
Development
Due
Diligence
Guidance for Responsible Supply Chain of Minerals
from Conflict-Affected and High-Risk Areas, Third
edition, and related Supplements on Tin, Tantalum
and Tungten and on Gold (collectively, “OECD
Guidance”). Ferrari uses the tools and programs
developed by the Conflict-Free Sourcing Initiative
(“CFSI”), and industry initiative that audits smelters
and refiners’ due diligence activities, including in
particular the Conflict Minerals Reporting Template
(“CMRT”) and the Conflict Free Smelter Program
(“CFSP”). We are strongly committed to increasing
the coverage of our analysis and the response rate
through targeted actions. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
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S3 – AFFECTED
COMMUNITIES
Our goal is to create and share long-term value with
our stakeholders. Community engagement and in-
volvement with the local territory are essential to us,
particularly in Maranello and Modena, where all our
cars are manufactured.
To maintain alive the spirit of Ferrari and the story
of its founder Enzo Ferrari, two different museums
have been established, attracting every year thou-
sands of visitors from all over the world thus contin-
uously benefiting the local community.
We are aware of our responsibility towards the
community and our efforts are directed to support
its development, mainly through collaborations with
local universities and schools and thanks to the indus-
try network in the Emilia-Romagna region. We believe
that promoting the education of young talents is an
essential step to reinforce the connection with local
communities. Developing talented and brilliant engi-
neers with a specific academic background focused
on emerging technologies in the automotive industry,
and in particular innovative solutions for state-of-the-
art performance in luxury sports cars and racing cars,
is essential for the Group to seize future opportunities.
Please refer to the “ESRS 2—General disclo-
sures—Strategy—Interests and views of stakehold-
ers” paragraph for more information on interests,
views, and rights of our affected communities.
OUR POLICY
In line with our values, our impacts, risks and oppor-
tunities, we seek to play a key role in supporting the
communities within which we operate, with a view
to shared growth. For this reason, according to our
Code of Conduct, we engage in constant and trans-
parent dialogue with communities and the main local
stakeholders involved directly or indirectly in our ac-
tivities and in the development of social initiatives. The
practice covers the following impacts and opportu-
nity: “Support community education through general
and technical programs”, “Impact on the community
(e.g. Maranello) wealth thanks to the employment (e.g.
job opportunities for local students, financial stability
of employees)” and “Improved reputation and acqui-
sition of new skills/expertise through stronger rela-
tionships with local communities and wealth genera-
tion (e.g. collaboration with schools and universities,
local job creation, support for small local businesses)”.
Opportunities arising from impacts and depen-
dencies on affected communities are related to
communities of Ferrari S.p.A.. Additionally, there are
no negative impacts on affected communities with
particular characteristics, those at greater risk of
harm or those living in particular contexts.
Ferrari is firmly dedicated to respecting the
rights of local communities and to positively con-
tributing to their realization, believing that their cul-
tural and natural heritage, as well as traditions and
customs, are key elements for the success of its
business and for the whole society. Our support to
a range of associations and local authorities is evi-
dence of our commitment in this area.
For a detailed description of key contents refer
to the Code of Conduct, please refer to the “G1—
Business Conduct—Business conduct policies and
corporate culture” paragraph. In addition, the atten-
tion to affected communities is also outlined in the
Human Rights Practice. For additional information
please refer to the “S1—Own workforce—Human
Rights” paragraph.
In particular, the affected communities can
raise their concerns or needs through the Ethics
Helpline, available on our corporate website. The
Whistleblowing
procedure
protects
the
whis-
tleblower against retaliation.
In specific business relationship cases, Ferrari
requires the acceptance of the Code of Conduct
which includes references to the Whistleblowing
policy and the Ethics Helpline for reporting con-
cerns. As of the date of publication of this Report,
the Ethics Helpline has not been officially communi-
cated to the affected communities even if it is pub-
licly reachable from Ferrari corporate website.
Ferrari has adopted a channel for raising con-
cerns available for affected communities. For that
reason S3-3 29 is not applicable.
In 2024, to the best of our knowledge there were
no severe human rights issues or incidents, nor any
cases of non-respect of the human rights principle
embodied into the internationally recognized stan-
dards mentioned in the “S1—Own workforce—Human
Rights” paragraph, among affected communities.
STAKEHOLDER ENGAGEMENT
Ferrari communities extend beyond the students
and professors of universities in Emilia-Romagna
and technical schools in the municipalities where our
plants are located, to also include people who live and
contribute to the vitality of the surrounding local ar-
eas. Whereas, regarding local communities along the
value chain, impacts have emerged as not relevant,
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and the rights of indigenous people are not applica-
ble, given the nature of our operational activities.
Specifically, we
aim to
promote
education
within the local community at the high school level
by establishing long-term relationships with techni-
cal schools, such as the Istituti Tecnici Superiori, in
Maranello and neighboring towns. The main collab-
orations participating in orientation committees,
establishing “school-work” projects for students,
bringing the testimony of Ferrari technicians in
classrooms, implementing training of trainers (TOT)
activities, donating Ferrari equipment, and partic-
ipating in public tenders to finance technical class-
rooms and labs in collaboration with local schools.
The aim of these initiatives is to support schools
in providing the new generations with the skills
and tools needed to meet the rapid technological
changes taking place in society.
Community engagement takes place through
technical committees composed of representatives
of technical institutes or universities, among which
school directors and teachers in charge of such
courses. The topics included in the different course
curricula are discussed with Ferrari representatives,
with the purpose of providing students with the skills
needed for their future careers. Ferrari’s representa-
tives are members of the Human Resources depart-
ment, and they report to the Chief Human Resources
Officer, who is the most senior role that has the
responsibility for ensuring the engagement happens
and that the results inform Ferrari’s approach on
education. The frequency of the committees’ meet-
ings varies depending on both the level of education
(i.e. at least three times a year with universities and
annually with technical institutes) and on the status of
projects (i.e. in the case of new course being planned,
the committee will be convened more frequently
compared to long-lasting activities).
These engagement activities can be considered
effective given that this cooperation has been ongo-
ing for many years.
Ferrari is partner of the Motorvehicle University of
Emilia-Romagna (MUNER), an association which was
strongly advocated by the Emilia-Romagna region.
In 2024, Ferrari, as a member of its steering com-
mittee, collaborated in advancing educational initia-
tives aiming for inclusivity in STEM fields and motor-
sports. These initiatives aim to examine the Italian
context, through the engagement of students from
different backgrounds, nationalities, gender or reli-
gion with the objective of breaking common biases
towards engineering and technical professions and
overcome barriers to inclusivity in their studies and
future careers. To gain insight, Ferrari conducts sur-
veys, focus groups, interviews with students. This
engagement helps to understand their unique chal-
lenges and needs. Additionally, the committee con-
ducts research to explore the reasons behind gaps
and lack of opportunities, particularly for students
pursuing STEM and motorsports careers.
Affected communities included in the scope of
the disclosure under ESRS 2 are mainly commu-
nities located near the production plants. In 2024,
no negative impacts on affected communities
emerged. Nevertheless, a whistleblowing channel is
available to third parties, including members of the
community.
OUR TARGETS AND ACTIONS
We are strongly dedicated to actions and initiatives
that have a positive impact on the affected commu-
nities, even though no specific targets have been set.
Every initiative promoted is constantly mon-
itored and measured with regard to its effects
on the affected communities thought qualitative
indicators. The effectiveness of each action listed
below is reported.
EDUCATION
At the end of 2024, Ferrari installed a Miri Classroom
at a local elementary school, located in Formigine
(close to Maranello). This project is a new, immersive,
and inclusive learning environment where boys and
girls become the protagonists of their education-
al adventures. With the touch of a finger, they can
travel through time and discover distant places. All
the content, developed by Giunti Scuola, is stimulat-
ing and interactive, suitable for every level of learn-
ing, from preschool to primary school. We expect
that around one hundred classes in the school will
have the opportunity to use and learn through this
interactive classroom. Starting from 2024, this proj-
ect delivered 250 immersive experiences engaging
students across all grade levels. If the project is suc-
cessful, we could consider to extend it to other local
schools in the future. To verify the level of satisfaction
we perform periodical reports tracked by the class-
room internal system. Since the Miri Classroom ini-
tiative was only recently implemented, measurable
outcomes are not yet available. No significant opera-
tional or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
We also continue our work with the e.DO Learning
Center, an innovative educational project born in
2022 from the synergy between Ferrari and the
local area. The project was developed within a labo-
ratory at the IIS Fermo Corni in Modena, which has
been completely refurnished and equipped with new
technology and furniture thanks to the support from
Ferrari. This space, dedicated to students starting
from the age of 8 up to the university level, offers the
opportunity to learn about artificial intelligence and
new technologies through games, for the younger
users, and through exercises, for the older ones. The
laboratory is equipped with 5 e.DO robots, with mod-
ular and multi-axis mechanical arms with integrated
open-source intelligence, developed by the company
Comau. Since the debut of the project, more than
6,000 students have attended lessons in the labora-
tory. In recent years, the program has been refined,
alongside the ongoing maintenance of the robots.
Given the success of this project, we could expand
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it to other districts. To verify the level of satisfaction
we administered a survey to all students that par-
ticipated in the activity. Since the e.DO Learning ini-
tiative was only recently implemented, measurable
outcomes are not yet available. No significant opera-
tional or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
Since 2013, Ferrari has been a partner of “ITS
Maker”, the Emilia-Romagna Higher Institute of
Mechanics, Mechatronics, Motor and Packaging.
The project aims to deliver two-year courses to pro-
vide the most in-demand technical skills in a prac-
tical way, also thanks to an internship that takes up
40 percent of the total course hours. Additionally,
the Company is involved in courses on electronic
systems, powertrains, materials and composites,
and every year hosts approximately 20 ITS Maker
students in the Sports Cars and Scuderia depart-
ments, providing them with the opportunity to apply
their technical skills in a practical way. In 2024, a
new course titled ‘Restoration and Historical Cars’
was launched. Ferrari is actively involved through
its Classiche workshops, supporting the program
with a dedicated restoration workshop focused on
vintage engines. Through its involvement in these
specific courses, Ferrari contributes to the creation
of an innovation and development ecosystem, pre-
paring the next generation of technicians and engi-
neers for future challenges and generating a strong
impact on the local economy. For this reason, we
monitor the effectiveness of this action using differ-
ent KPIs, such as the employment rate of graduates,
the percentage of workers with permanent con-
tracts, and the proportion of students who continue
their academic paths. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
We have established collaborations with leading
universities worldwide that include the possibility
for students to develop bachelor and doctoral the-
ses as well as other research projects.
Since 2017, Ferrari has been partner of the
Motorvehicle University of Emilia-Romagna (MUNER),
an association strongly advocated by the Emilia-
Romagna region. We plan to continue this part-
nership in the future. MUNER was created thanks
to a synergistic connection between the universi-
ties of Modena and Reggio Emilia, Bologna, Ferrara
and Parma along with car companies (Automobili
Lamborghini,
Dallara,
Ducati,
HaasF1Team,
HPE
Group, Marelli, Maserati, Pagani, Visa Cash App RB
Formula One Team) in the region that represent the
excellence of Italian brands, which includes Ferrari.
Thanks to existing partners and those who join
every year, the opportunity to access new automo-
tive knowledge and skills continues to increase. The
Motorvehicle University of Emilia-Romagna hub aims
to attract the best university students from all over
the world, with the goal of training and introducing
the engineers of tomorrow into the corporate world.
The educational offer includes the following
Master’s Degree programs, whose design and
implementation saw the active participation of
Ferrari: Advanced Automotive Engineering (AAE),
Electronic Engineering for Intelligent Vehicles (EEIV)
and Electronic Vehicle Engineering (EVE). The forma-
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tive catalog of the latter is entirely devoted to electri-
cal vehicles and aims at forging new professionals
with a comprehensive view of all the phases and
processes of the development of an electric vehicle.
In all these courses, the partners of the initiative
participate in educational activities by teaching and
co-teaching courses, lessons, seminars and labora-
tories and by inviting students to visit the production
plants. This partnership opens up the opportunity
for the most talented and motivated students to take
part in internship programs with the companies
involved. In particular, the course Vehicle Conceptual
Design (VCD) of the AAE and EVE programs, is
entirely taught by Ferrari Maestri, covering more
than 20 lectures. In 2024, the number of enrollments
in the three master’s degrees programs increased,
with about 9 percent of the students coming from
foreign countries. Moreover, in 2024, MUNER con-
tinued to offer high school and university students a
variety of academic, business and cultural contents,
all aimed at deepening their understanding of high
performance vehicles and engineering subjects.
Since the foundation of MUNER, Ferrari has offered
various internship opportunities to over 75 students
and hired around 53, directly upon graduation. This
has contributed to the fact that over 70 percent of
students find a job within the first six months after
graduation. In the coming years, we plan to further
enhance the course offerings and expand them
where necessary.
Ferrari, through strategic educational partner-
ships such as the Motorvehicle University of Emilia-
Romagna hub, stands as a key player in creating
opportunities for the economic well-being of the area.
MUNER, in fact, not only attracts the best university
students from all over the world, but also acts as a
gateway between academia and industry, training the
engineers of the future and fostering their entry into
the local job scene. In this way, Ferrari contributes to
the growth of the community by fostering innovation
and supporting the development of highly specialized
skills that are essential to the region’s economic and
technological progress. No significant operational
or capital expenditures have been allocated to this
action in 2024 or are planned for the future.
In addition, in 2024 the MUNER Gender and
Diversity Empowerment Committee was officially
established, with a Ferrari representative as part
of it. This Committee focuses on gender issues in
the automotive sector and engineering education.
Indeed, since the automotive sector is character-
ized by significant gender disparity, addressing
this issue at the governance level becomes cru-
cial. The Committee actively aims at pursuing a set
of key objectives, including promoting an inclusive
corporate and academic culture that respects gen-
der diversity, actively involving all stakeholders in
decision-making processes and job opportunities,
sharing best practices and successful experiences
in gender equality, and implementing targeted train-
ing programs to raise awareness and educate on
gender equality topics.
Furthermore, in 2024, Ferrari Group around the
world promoted educational and charity activities
for their local communities, in collaboration with dif-
ferent partners.
COMMUNITY VALUE CREATION
Ferrari Museum Maranello
& Museo Enzo Ferrari (MEF)
The Ferrari Museum Maranello invites visitors to ex-
perience the Prancing Horse dream first-hand, of-
fering them a journey through the Group’s history,
values and automotive world.
The Museo Enzo Ferrari (MEF) is built around
the house in which Enzo Ferrari was born in 1898.
The MEF tells the story of Enzo Ferrari as a young
boy discovering the irresistible allure of the world
of motor racing, his career as a driver in 1920s, as
the driving force behind the Scuderia Ferrari in the
1930s, and then as Ferrari, the Constructor, from
1947 onwards.
In 2024, the Ferrari Museum Maranello and the
MEF welcomed more than 850,000 visitors, contrib-
uting to the local economy and positively impacting
the wealth generation of the local community.
In 2024, the main exhibitions were:
• “Roaring 50s”, an exhibition on the history of the
Modena Street circuit.
• “Scuderia Ferrari, the complete history”, cel-
ebrating the most successful Formula 1 team
ever
• “One of a kind”, a glorious celebration of the ex-
clusive world of personalization.
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S4 – CONSUMERS
AND END-USERS
In this Sustainability Statement, we refer to consum-
ers and end-users as clients.
STAKEHOLDERS ENGAGEMENT
We are devoted to the highest level of client satisfac-
tion, for this reason we strive to promote knowledge
of our products, the enjoyment of our sports cars
both on road and on track, and foster long-term re-
lationships with our clients, which is key to our suc-
cess. To achieve this objective, we have put in place
different structured methods to directly engage
with them, from exclusive events and initiatives to
dedicated client satisfaction surveys.
By purchasing our cars, clients become part of
an exclusive community, united by a shared passion.
We foster this sense of fellowship with a number of
initiatives and events, such as exclusive new model
unveils, on-the-road driving events such as the
Ferrari Cavalcade, special experiences on track and
dedicated programs for Ferraristi that own histori-
cal models. For additional information, please refer
to the “Client Relations” paragraph.
We have also built a structured process to
assess the overall client satisfaction covering the
product, the services provided, the events we orga-
nize, and the overall client experience with the car.
Specific KPIs are constantly monitored and ana-
lyzed by the Marketing Intelligence department, the
function that has operational responsibility for ensur-
ing that the engagement happens. The Marketing
Intelligence
department
reports
to
the
Chief
Marketing and Commercial Officer, the most senior
role in charge of ensuring the results inform Ferrari
approach. The KPIs are measured through bespoke
surveys for each car launch and collected for every
new model, from range vehicles to special and limited
editions. A similar approach is adopted for evaluating
the quality of service and satisfaction of our events.
The assessment process can involve proactively
administering online questionnaires and conducting
telephone interviews with a sample of customers, or
the customers directly reaching out to us.
Product satisfaction aims to evaluate perfor-
mance, driving emotions, design, quality, comfort,
devices and HMI of our products. The evaluation is
carried out through three different survey typol-
ogies in different time frames, which enables us to
gather client comments and feedback:
• Early stage: at the commercial launch of a new
Ferrari model, client/prospect satisfaction is
monitored with Demo Test Drives of the new car
at dealers’ showrooms.
• Second stage: after approximately 3 to 4 weeks
of ownership, the first clients of the new mod-
el receive a survey, “Report200”, to gather their
first impressions of the recently purchased car.
A brief questionnaire, managed by the Ferrari
Customer Care, is conducted by phone with the
initial customers and is terminated after the first
200 replies have been collated.
• Third stage: a few months following the launch, a
third survey named New Car Buyer Satisfaction
(“NCBS”) is sent by email to the initial clients. The
NCBS is a more complete, in-depth and detailed
assessment on the car, and is composed of more
than 100 online questions aimed at gathering a
thorough feedback on the vehicle.
The purpose of these three surveys is to collect
client(37) opinions on the driving experience, including
the car safety devices. The topics of data treatment
and privacy, and marketing practices are not includ-
ed in the engagement process however, through the
available communication channels, the consumer can
reach out for any concern regarding these issues.
Service satisfaction is monitored through an
online survey and is evaluated through two differ-
ent indices: Customer Satisfaction Index (“CSI”) and
Ferrari Relationship Index (“FRI”). The purpose of
both indices is to evaluate client satisfaction with
respect to the sale and after-sale services. CSI
focuses more on the latest service offered by the
dealer, while FRI focuses on the long-term relation-
ship between clients and Ferrari. The results are
gathered and analyzed through a statistical model at
our headquarters.
The results of the product and service satis-
faction analyses are used to outline any necessary
action plan for current models and, additionally, to
identify potential features to be added to the next
generation of vehicles. Recent surveys show that
client satisfaction for Ferrari products and services
has constantly stayed at a very high level.
Starting from 2017, to improve the main cli-
ent events organized by Ferrari’s headquarters
(such as Esperienza Ferrari, Digital or Physical
World Premiere, Factory Tour etc.), we also started
to evaluate the level of client satisfaction through
an online survey using digital tools. The results
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of our analysis are gathered and shared with the
Operative Marketing department. The results of the
surveys measuring client satisfaction levels for our
Ferrari Driving Courses worldwide (US, Europe,
Mainland China) have also been shared with the
Corse Clienti department and Hub representatives.
Recognizing the importance of digital touch-
points to enhance the overall client experience,
Ferrari continues to develop the MyFerrari App.
Dedicated to Ferrari clients, the app aims to enhance
and foster their connection with the Ferrari world
through the direct distribution of tailored contents.
For additional information, please refer to “Client
Relations and Sales and After Sales” paragraph.
Finally, it is worth noting that our dealers play a
key role in engaging clients. For a better understand-
ing of the dealers’ role, please refer to the “Sales and
After Sales” paragraph.
The Customer Contact Service is a dedicated ser-
vice established by Ferrari, enabling clients to directly
raise concerns or requests regarding our products
and services. This service is centralized at the Group
level, except for the Mainland China, Hong Kong and
Taiwan region, where the service is provided locally.
When a client contacts customer service, including
the one in Mainland China, Hong Kong and Taiwan,
every single inquiry is categorized, monitored, and
managed until resolved, with all specifics recorded in
a globally centralized shared database. We produce
periodical detailed reports to assess the status of
inquiries. These reports are subsequently shared with
the relevant Company departments and made avail-
able to dealers. All client complaints are addressed
and available for consulting through a dynamic dash-
board. This service addresses the impacts related to
Quality and Safety, and Ethics and Business Conduct.
We
have
developed
an
integrated
system
between our customer care, dealers, Marketing
department and area managers to track all contacts
with clients, manage inquiries and share the results
of client and dealer satisfaction analysis.
In 2024, Ferrari assessed through its customer
service satisfaction survey that all clients are aware
of and trust the Customer Contact Service for rais-
ing concerns or needs. This survey helps to evaluate
client awareness of the available communication
channels and to verify the accuracy of the service
provided. The workflow adheres to internal formal-
ized procedure designed to manage customer pro-
cesses and communications effectively. Currently,
no specific policies are in place to protect individuals
from retaliation when utilizing these structures or
processes, nevertheless, the Whistleblowing proce-
dure protects the whistleblower against retaliation.
The chart below shows the flow between clients, dealers and Ferrari
FLOW BETWEEN CLIENTS, DEALERS AND FERRARI
Ferrari clients
Customer care
Development
(for future models)
Production
(for current models)
Dealer
Marketing
Intelligence
Area Manager
Questionnaires
Questionnaires
feedbacks and inquires
Questionnaires feedback
Scorecard and Report
Report and Analysis
Questionnaires
Market research activities
(questionnaires and reports)
Replies to inquires
Client inquires
Ferrari clients
Customer care
Development
(for future models)
Production
(for current models)
Dealer
Marketing
Intelligence
Area Manager
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Moreover, a dedicated Customer Care Service is avail-
able for our Lifestyle clients for any notices or con-
cerns regarding the e-commerce platform services.
In 2024, to the best of our knowledge there were
no severe human rights issues or incidents, nor
any cases of non-respect of the human rights prin-
ciple embodied into the internationally recognized
standards mentioned in the “S1—Own workforce—
Human Rights”, among consumers and end-users.
Please note that consumers and end-users of
the Ferrari Group have been included in the scope
of the disclosure under ESRS 2.
Risks and opportunities arising from impacts
and dependencies on consumers and end users
relate to all Ferrari consumers and end users.
Please refer to the “ESRS 2—General disclo-
sures—Strategy—Interests and views of stakehold-
ers” paragraph for more information on interests,
views, and rights of our clients.
VEHICLE QUALITY AND SAFETY
Vehicle quality and safety are among our top priori-
ties and Ferrari cars are always designed and man-
ufactured with the safety of our clients and other
road users in mind.
Our cars increasingly incorporate electronic
equipment developed with an integrated approach,
which ensures the best balance between safety, con-
trol, best-in-class performance and driving thrills.
We sell cars together with a scheduled program
of recommended maintenance services to ensure
that vehicles are maintained to the highest stan-
dards to meet our strict requirements for perfor-
mance and safety.
OUR POLICY
Our products and services are designed and man-
ufactured, as far as reasonably foreseeable, so not
to compromise health, safety and physical integrity
of customers, in accordance with our Human Rights
practice mentioned in the “S1—Own workforce—
Human Rights” paragraph.
According to the impacts, risks and oppor-
tunities identified, our integrated quality, safety
and environment policy outlines our ambition to
continuously improve products and processes
which may impact quality, workers’ safety, the envi-
ronment and related management systems, also
through digitalization and the adoption of the best
available technologies. The practice covers the fol-
lowing impact and risk: “Reduced level of vehicle
safety and quality with consequent increased risks
for clients” and “Fast paced and uncertain laws
and technical regulations proliferation: Regulatory
tightening on safety (e.g., system, speed limits,
autonomous drive / ADAS), noise (i.e. limits on dB
emitted), software update (e.g. R156) and environ-
mental (e.g. CO2 reduction), enhanced by societal
pressures and uncertain in timing/type of future
approval constraints (e.g. EU7 emissions, short lead
time between disclosure of technical requirements
and required date of compliance)”.
We strive to consolidate the relationships with our
strategic partners and the strengthening of our
supply chain, and to collaborate to satisfy both cus-
tomer and stakeholder expectations. In addition, we
align the development and control over our cars and
production processes with up-to-date regulatory
requirements. Our integrated quality, safety and en-
vironment policy has been defined within the imple-
mentations and renewals of the ISO 9001:2015, ISO
45001:2018 and ISO 14001:2015 standards. The at-
tention to quality aims to guarantee strategic plan-
ning, design, development, production, sales and af-
ter-sales service objectives of our sports cars. For
more detail on ISO 45001 refer to “S1—Own work-
force—Health and Safety—Our policy” and on ISO
14001 refer to “E1—Climate change—Environmental
management system” paragraph.
The integrated quality, safety and environment
policy is applicable to the Ferrari Group. The Chief
Executive Officer (CEO) is the most senior level
accountable for the implementation of the policy, con-
sidering the interest of clients and suppliers. Ferrari’s
employees have access to the integrated policy on
Ferrari intranet together with all necessary proce-
dures to ensure the highest level of product safety.
Through our Code of Conduct and Human Rights
practices, we aim to ensure that our products and
services do not compromise the health, safety, or
physical integrity of our customers, as far as rea-
sonably foreseeable. Furthermore, we have several
internal procedures to guarantee the highest level of
product safety.
OUR TARGETS AND ACTIONS
We aim to ensure that every step of our design and
production process follows current regulations. To
guarantee the compliance with applicable regulation
and to achieve functionality, performance, safety
and quality objectives, we develop annually a Quality
Plan with operational targets. This involves several
Company functions, that through the review of the
previous year’s results, identify and set new ambi-
tions and defines specific KPIs, monitored monthly
throughout the year. As of the date of publication of
this Report, no specific public targets have been set.
Quality has always been at the basis of our suc-
cess. With this in mind, we first certified our qual-
ity management system in 1996. Over the years,
we have consistently maintained this certifica-
tion, positioning Ferrari among the first in Italy to
adopt updates and new revisions, while continually
expanding its scope within the Company. The cer-
tification encompasses the planning, design, devel-
opment, production, sales and after-sales service
regarding our Sports Cars. Our approach to quality
and continuous improvement creates a fertile envi-
ronment for the development of innovative ideas
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and solutions that will improve products, methods
and the working environment.
The high-quality standards of our products and ser-
vices are shared and followed by our suppliers and
dealers to ensure that every part of our value chain
contributes to client satisfaction.
We manufacture and sell our cars around the world
and our operations are therefore subject to a vari-
ety of laws and regulations relating to environmental,
health and safety and other matters. These laws regu-
late our cars, including their emissions, fuel consump-
tion, safety, and connectivity as well as our manufac-
turing facilities and operations.
We are in compliance with the relevant regula-
tory requirements affecting our facilities and prod-
ucts around the world. We constantly monitor such
requirements and adjust our operations as necessary
to remain in compliance. Our approach is to ensure
the same safety level in all markets to meet the certifi-
cation requirement of the most stringent country.
All of our models are subject to a series of tests to
obtain approval from the relevant authorities. Moreover,
we start assessing all our new models at an early stage
of planning and design to identify areas of improvement.
To guarantee the highest level of passenger safety,
we develop both passive and active safety systems.
Passive safety requirements are the initial guide-
lines assigned to the engineers to define the design
of every component, from car framework to all
the retain components (airbags, seat belts, etc.).
Moreover, specific devices are installed in racing
cars to obtain FIA (Federation International de l’Au-
tomobile) approval. With the aim of solving issues
beforehand, all of our models are subject to a series
of tests to obtain approval from the relevant authori-
ties. The tests are reproduced in a state-of-the-art vir-
tual environment before conducting them with real
cars. Furthermore, we consistently update the equip-
ment to ensure their effectiveness is thoroughly
monitored. All passive safety requirements aim at
ensuring a high level of safety in our cars. All actions
related to Passive Safety have been implemented in
our vehicles and will remain in effect long-term, with
regular updates as needed.
We believe that the future developments of vehicle
safety will be linked to traditional and well known Active
Safety Systems (ABS, ESC) and modern Advanced
Driver Assistance Systems (ADAS), capable of prevent-
ing or mitigating crash occurrences. We are currently
assessing the implementation of the most recent trends
and developments in terms of simplifying and facilitat-
ing the interaction between the car and the driver to
avoid any distraction. ADAS are included into our entire
fleet, and we are working to implement new solutions
for our upcoming models, such as lane keeping assist,
intelligent speed assist and driving drowsiness. All
Active Safety requirements aim at ensuring the maxi-
mum level of safety in our cars. The correct functional-
ity of the systems is consistently monitored and verified
during every scheduled maintenance of each vehicle.
Driver warning system and associated reactions are
continuously run during each driving task.
Sensors represent another innovative solution that im-
pacts vehicle safety. Indeed, sensors and the relevant
know-how built over decades contribute not only to the
driving thrills and performance, but also to reliability
and vehicle safety, ensuring that this technology ben-
efits all clients who purchase our products. Our first
sensor, a position sensor, was adopted in 1980 on the
Ferrari 308GTBi. Now, a Ferrari car can have hundreds
of sensors, including accelerometers, gyroscopes, mi-
crophones, and others, which improve vehicle dynam-
ics as well as performance and driving thrills. In the
near future, our cars will be equipped with new sen-
sors that will allow us to further improve the existing
features and enable new functions, and that will play
a fundamental role in battery management, increas-
ing the life of the battery as well as the safety of our
cars. Moreover, extensive research and development
is performed on virtual sensors that, applying Machine
Learning techniques, can extend the operating field of
physical sensors to furthermore enlarge the data set
available to enhance performance and functionalities.
Longer term, new sensors technology will allow
for new applications and a step-up in performance. By
combining sensors and software, it will be possible to
further improve the performance and driving thrills of
our cars. For instance, comparing a Ferrari with a 6D
sensor and one without it, we have reduced our brak-
ing distance up to 10 percent (according to the driv-
ing situation) as a result of the information collected
through accelerometers, gyroscopes, and the deep
control vehicle software know-how. Another example
is the FAST (“Ferrari Active Suspension Technology”),
a technology first introduced on the Purosangue that
enables our cars to apply the best suspension for
every driving condition by keeping the vehicle body at
the best elevation for riding. FAST controls body roll
in corners and the tire contact patch over high-fre-
quency bumps, while also supporting the active aero-
dynamics, like in the F80, to further enhance tire grip
on the road across various driving situations.
The overall operational and capital expenditure
allocated for these three activities was about € 24
million (please refer to the paragraph Consolidated
Financial Statement) in 2024. The amount refers to soft-
ware calibration (airbag control unit and brake node),
physical tests on full vehicle and representative sam-
ples, as well as approval and homologation crash tests.
Future costs related to active and passive safety will
evolve according to the relevant regulatory require-
ments, while seeking to explore innovative solutions
that combine dynamic performance and safety.
The Group periodically initiates voluntary ser-
vice actions to address client satisfaction, safety,
and emissions issues related to cars sold, including
through recall actions.
Dealers provide after-sales services to clients, either
at facilities adjacent to showrooms or in stand-alone ser-
vice points across 252 facilities worldwide at December
31, 2024. After-sales activities are very important for
our business to ensure the client’s continued enjoyment
of the car and the experience. For that reason, Ferrari
strives for continuous improvement in its after sales
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services. Therefore, we enforce a strict quality control
on our dealers’ services activities, and we provide con-
tinued training and support to the dealers’ service per-
sonnel. This includes our team of “flying doctors”, Ferrari
engineers who regularly travel to service centers to
address difficult technical issues for our clients.
We offer our clients a scheduled program of recom-
mended maintenance services in order to ensure that
the cars are maintained at the highest standards to meet
our strict requirements for performance and safety.
Our 7 Year Maintenance Program, free of charge on any
new car since 2011, is offered to further strengthen
customer retention in the official network and has been
coupled with the possibility to extend the statutory war-
ranty term of our standard warranty terms through the
Warranty Extension starting from the 3rd year up to the
7th year and the Power Warranty Coverage, covering
from the 8th year up to the 16th year of life of the car.
For certain strictly limited series cars (for example, the
Monza SP1 and SP2 and the Daytona SP3) we introduced
a Full Warranty Coverage Extension that can be applied
after the 36-month commercial contractual warranty.
For hybrid models, such as the SF90 family and the 296
family, we introduced a new service called Warranty
Extension Hybrid, which allows the owner to buy a com-
plete coverage after the 3rd year up to the 8th, including
replacement of the high voltage battery at the 8th year
of life of the car. After the 8th year of life, a car (if in per-
fect maintenance condition) can be included in the Main
Power warranty coverage program (Maintenance and
Power) through to the car’s 16th year of life. Between
the 16th year of life and the Classiche eligibility (20 year
old car) Ferrari provides its customers, in addition to
standard maintenance items, also certain specific main-
tenance kits (Ferrari Premium) to preserve car perfor-
mance and safety systems. When a car follows the full
maintenance program up to the 20th year of life, it auto-
matically obtains the Ferrari Classiche certification.
The overall operational and capital expenditure
allocated for this activity was about € 100 million in
2024 (please refer to the paragraph Consolidated
Financial Statement). For 2025, we have defined activ-
ities aligned with the previous year, updates are pos-
sible given that we plan to develop our new business
plan in 2025.
Please refer to the “Overview of Our Business—
Regulatory Matters—Vehicle safety” paragraph for
more information about vehicle safety.
Expanding the view to the quality and safety of our
Lifestyle products, we perform specific tests includ-
ing a qualitative resistance test and a detailed chem-
ical test to assess product composition. These tests
are carried out on every product of our personal lux-
ury goods category.
ETHICS AND BUSINESS CONDUCT -
TRANSPARENT INFORMATION
Our clients are the backbone of our business togeth-
er with our brand and our technology. In addition, and
according to our Code of Conduct, reputation is one of
Ferrari’s most significant assets. Therefore, all our ac-
tions, inside and outside the Company, must be guided
by transparency and fairness. Our clients have access to
accurate and accessible product- related information, to
avoid the potentially harmful misuse of products.
OUR POLICY
In line with our impacts, risks and opportunities, the Code
of Conduct states that clear and open communication,
both within the Group and with our stakeholders, is the
building block of effective relationships. The practice cov-
ers the following impact: “Reduced customer satisfac-
tion/experience and limited customer choice in the event
of lack of access to information or in the event of access
to partial or misleading information”.
We strive to convey accurate and comprehensive
messages to our stakeholders, via the relevant depart-
ments at Ferrari. Additionally, no consumers and end
users have been addressed as consumers with partic-
ular characteristics that may be at greater risk of harm.
A specific practice on transparent communica-
tion towards our clients has not been formalized. For
more information about the Code of Conduct, please
refer to “G1—Business Conduct—Business conduct pol-
icies and corporate culture” paragraph.
OUR TARGETS AND ACTIONS
All of our communication and marketing activities,
across different channels such as our website, social
media, and events, along with all information related to
our products and services, are designed to comply with
applicable laws and regulations in every country we sell
or operate in. All our communication channels aim at
providing the highest level of transparency and fairness
in information, even though specific targets have not yet
been set. Annually we set specific KPIs and internal tar-
gets which are monitored monthly throughout the year.
We have put in place specific actions to ensure
quality and fairness of information, ensuring that all
employees and stakeholder, including dealers, adopt
a consistent approach across all communication and
marketing channels.
In this context, the Marketing and Commercial
and Lifestyle departments, in collaboration with
the Communication department, are in charge of
the direct and indirect information communicated
to clients.
Indeed, dealers are dedicated to promoting and
marketing our cars in a manner intended to preserve
the Ferrari brand integrity and to ensure the high-
est level of client satisfaction as well as respecting all
applicable laws and regulations on misleading adver-
tising and unfair commercial practices. Through our
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in-house Ferrari Academy, we provide training to
dealers for sales, after-sales and technical activi-
ties. This ensures that our dealer network delivers a
consistent level of market leading standards across
diverse cultural environments. This activity aims at
continuous improvement.
For additional information on our communication
and marketing strategy, please refer to the “Client
Relations” and the “Sales and After Sales” paragraphs.
We consistently provide information on the tech-
nical and performance characteristics of our ve-
hicles and will continue to do so, ensuring that cli-
ents have access to useful information to make the
most informed decision. These include information
via the corporate website, product brochures and
MyFerrari App. Brochures include detailed data on
various aspects of the car, such as engine, dimen-
sions, safety, technology and comfort, design and
performance, including GHG emissions data. This
document is part of the sales process, and it is use-
ful for fully understanding technical and perfor-
mance characteristics of the vehicle. In addition, in
2024 we have redesigned and developed the new
and innovative MyFerrari App, available exclusively
for Ferrari clients to enhance and foster their con-
nection to the Ferrari world. This channel enables
clients to directly access features and services,
strengthening their relationship with the brand and
their preferred official Ferrari dealer. The effective-
ness of these activities is assessed through the con-
tinuous use of these channels. Based on experience
and best practices, these are the most appropriate
tools to address potential negative impacts on our
clients. For the future, we plan to continue this activ-
ity and update these communication channels when
needed. No significant operational or capital expen-
ditures have been allocated to this action in 2024 or
are planned for the future.
Regarding GHG emissions data, these are fully
compliant with current regulations. Please, refer to
the “Regulatory Matters—Greenhouse gas/CO2/fuel
economy legislation” paragraph.
Similarly to sports cars and racing, we provide
all mandatory technical and quality information
about our lifestyle products on specific labels or tags
according to applicable laws and regulations.
DATA RESPONSIBILITY, PRIVACY
AND CYBERSECURITY
We regard the protection of personal data as a top
priority of our organization. We respect the right to
privacy of our workforce and stakeholders, under-
taking to use the data and information provided in
a legitimate, fair and transparent manner in accor-
dance with applicable laws.
In conducing our business operations, we strive to
act in accordance with the current legislative frame-
work that governs the processing of personal data at
a global scale, including but not limited to the General
Data Protection Regulation “GDPR” (EU Regulation no.
2016/679), the UK GDPR and the California Consumer
Privacy Act of 2018 “CCPA”. The data protection legal
framework has steadily developed in recent years
and has brought a new awareness to privacy.
Client personal data are collected for different
purposes, such as the management of their vehi-
cle orders, for marketing and profiling activities
and for the management of the relationship of our
clients, granting the highest level of care and ser-
vices. These data are processed with the utmost
level of confidentiality.
Considering our range of clients, the compliance
with the GDPR and applicable laws, the services and
products offered, no consumer and no worker is
clustered as “vulnerable” or at greater risk of harm.
OUR POLICY
We care about processing data in a safe and trans-
parent manner, and in this respect, according to our
Code of Conduct, we take the utmost care to protect
the personal data of the individuals who are part of
Ferrari and those who come into contact with us.
Ferrari has adopted specific policies on Privacy and
Data Protection in relation to client’s personal data
processing whose recipients are all directors, man-
agers, employees, temporary workers, interns, and
scholarship holders of the Ferrari Group. For that
reason, please refer to the “S1—Own workforce—
Data
Responsibility,
Privacy
and
Cybersecurity”
paragraph for further information on data protec-
tion policies and practices related to client data pro-
cessing activities.
Moreover, for information regarding policy on
human rights involving also our clients please refer
to “S1—Own workforce—Human Rights”.
OUR TARGETS AND ACTIONS
As of today, no targets have been set, however, we
constantly monitor the correct adoption of the poli-
cy through KPIs on data breaches.
The management of consumers and end-users’
personal data is ensured by the actions carried out by
Ferrari with respect to the recipients of the policies
mentioned above. Particularly, we foster an effective
and prompt response to requests from data subjects,
such as the implementation of OneTrust, an online
portal which allows clients to make privacy requests.
This also allows us to assess and monitor whether the
actions implemented are appropriate in response to
the risk of breaches of consumers and end-users’
data with regard to their privacy requests. Since this
portal is the same one adopted for employee privacy
requests, please refer to the “S1—Own workforce—
Data Responsibility, Privacy and Cybersecurity” para-
graph for further information.
Regarding our activities on Cybersecurity, please
refer to “S1—Own workforce—Data Responsibility,
Privacy and Cybersecurity”.
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G1 – BUSINESS
CONDUCT
BUSINESS CONDUCT POLICIES
AND CORPORATE CULTURE
At Ferrari, we seek to develop a cooperative envi-
ronment in which the dignity of each individual is
respected and that embodies the highest ethical
standards in business conduct. We are dedicated
to maintaining a fair, secure, productive and inclu-
sive workplace for all members of our workforce, in
which everyone is valued for its unique contribution.
The basis of Ferrari’s governance model is the
Code of Conduct that embodies a set of values rec-
ognized, adhered to and promoted by the Company.
Ferrari believes that a conduct based on the princi-
ples of diligence, integrity and fairness is a key driver
for the social and economic development.
Ferrari endorses the United Nations (“UN”) Decla-
ration on Human Rights, the International Labor Or-
ganization (“ILO”) Conventions and the Organization
for
Economic
Co-Operation
and
Development
(“OECD”) Guidelines for Multinational Companies.
Accordingly, our Code of Conduct aims to
ensure that all members of the Ferrari Group work-
force act with the highest level of integrity and com-
ply with applicable laws, thus contributing to build a
better future for our Company and the communities
in which we do business.
Ferrari values are:
• INDIVIDUAL AND TEAM: Our talented individuals
are our greatest resource. However, they can
only pursue the extraordinary by working to-
gether as a team. By fostering integrity, excel-
lence and generosity, we give each of our people
the possibility to express their own full potential
- and be part of something greater.
• TRADITION AND INNOVATION: Tradition and in-
novation drive each other. The ongoing quest for
lasting firsts is what fuels the Ferrari legend. Our
ability to combine revolutionary technological
solutions with exceptional artisanal craftsman-
ship is what enables us to create icons that stay
timeless in a fast-changing world.
• PASSION AND ACHIEVEMENT: Ferrari’s racing
spirit lives on in emotions that transcend the
road and the track, ultimately becoming an au-
thentic attitude towards life. Nothing excites us
more than setting ambitious targets and expec-
tations – and then exceeding them, to push ev-
ery boundary. It is how the power of passion be-
comes the beauty of achievement.
The values are integrated into the Code of Conduct.
The Company promotes its values and corporate
culture both internally, through training activities
and employee engagements, and externally, by pub-
lishing them on the corporate website.
Ferrari’s Code of Conduct can be found on our
corporate
website
at
https://www.ferrari.com/
en-EN/corporate/code-conduct.
Ferrari’s integrity system sets the elements:
• Principles, set out in the Code of Conduct, that
capture Ferrari’s ambition to important values
in business and foundation for the corporate
governance of the Ferrari Group and includes a
framework comprised of the following primary
personal conduct;
• Practices that are the basic rules that must guide
our daily behaviors in order to achieve our over-
arching Principles;
• Procedures that further articulate Ferrari’s spe-
cific operational approaches for achieving com-
pliance and that may have specific applications
limited to certain geographical regions and/or
businesses, as appropriate.
Practices and procedures are drafted with the pre-
cautionary 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. In particular, stakeholders that have
been included are those who are addressees of the
practices and procedure. Our public Practices are
available on the Ferrari corporate website at the fol-
lowing link: https://www.ferrari.com/en-EN/corpo-
rate/practices.
Our Code of Conduct, which was updated in
early 2023, also strengthening the reference to
ESG aspects, has been approved by the Board of
Directors of Ferrari N.V. and is applicable to the
whole Ferrari Group.
For information about the role of the Board of
Directors related to business conduct and their
expertise on business matters refers to the “ESRS
2—General disclosures—Governance” paragraph, in
particular to the column “Corporate Governance and
Risk management” of the Board of Director’s “Skills”.
The implementation of the Code of Conduct is
supervised by the FLT members, with regards to
their department.
The practice covers the following IROs: “Promote
awareness and culture about ethics of Ferrari man-
agement, employees, business partners and other
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stakeholders, through specific tools (Whistleblowing
channel) and training”, “Potential non-compliance
with Anticorruption Laws requirements due to
external context or internal elements” and “Supply
chain ESG due diligence - factors considered in
selecting and monitoring suppliers on environmen-
tal and social issues can have an impact on con-
sumer demand, reputational risks and the ability to
effectively manage sourcing”.
IROs in relation to business conduct matters
have been identified during the double materiality
assessment with focus on certain specific elements
including location, activity, sector and the structure
of the transaction.
The Code of Conduct applies to all Ferrari Group
board members and officers, full-time and part-
time employees, as well as to all temporary, contract
and all other individuals and companies that act on
behalf of the Ferrari Group, regardless of their loca-
tion. The Code of Conduct also applies to Ferrari’s
commercial partners and suppliers. Compliance
with the Code of Conduct in its entirety would not
be possible without their contribution and conse-
quently they are required to comply with principles
such as integrity, transparency and responsibility.
At the beginning of 2023, Ferrari N.V. adopted a
Compliance Model in order to assess and govern, at
a high level, corporate responsibility laws and regu-
lations that apply to the Company in all relevant juris-
dictions. The Model consists of a general part that
describes the governance principles and structure
of the Company, and a special part that highlights
the at-risk areas together with a description of the
principles and specific controls implemented to pre-
vent the perpetration of offenses relevant for the
Company. As for the Code of Conduct, the principles
set out in the Compliance Model are incorporated in
our Practices and Procedures.
The
Compliance
and
Internal
Audit
func-
tions investigate possible violations of the Code
of Conduct, reported either through the Ethics
Helpline and other reporting channels, or eventu-
ally identified during standard audits. For additional
information about such investigations, please refer
to “—Whistleblowing”.
In 2024, in light of the last update of the Code of
Conduct occurred in February 2023, a series of train-
ing activities, both online and in person, have been
carried out involving our 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 infor-
mation 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.
ANTI-BRIBERY AND
ANTICORRUPTION PRACTICE
The Ferrari Group strives to uphold the highest
standards of integrity, honesty and fairness in all in-
ternal 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 indi-
viduals, which can result in significant fines, impris-
onment 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 (please refer to paragraph “ESRS 2—
General disclosures—Impacts, risks and opportuni-
ties management”), the Practice aims to define prin-
ciples 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 suppli-
ers 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 com-
pliance 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 gov-
erning relations with Public Officials and Relevant
Private Entities; the various Procedures governing the
selection of Third Parties (e.g. suppliers, dealers, spon-
sors) and the related anticorruption due diligence. The
practice covers the following risk: “Potential non-com-
pliance with Anticorruption Laws requirements due
to external context or internal elements”.
Ferrari’s policy applies to every director, officer
or other employee, consultant, agent, represen-
tative, 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 eco-
nomic value, permitted by applicable laws and in
compliance with the Code of Conduct and all appli-
cable practices and procedures) in connection with
their work for Ferrari at any time or for any reason.
The Internal Audit and Compliance functions pe-
riodically review the Anticorruption Practice and
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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 person-
nel 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 ade-
quately 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 cor-
porate website at the following link https://www.fer-
rari.com/en-EN/corporate/practices.
The Anticorruption Practice includes a specific
section dedicated to training. Accordingly, manda-
tory training programs are periodically developed
by the Compliance function with the support of
the Human Resources department. These train-
ings have the objective of providing the necessary
knowledge of Anticorruption Laws and the instruc-
tions 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-cor-
ruption and anti-bribery.
In 2024, there were no incidents in Ferrari’s value
chain directly involving the Company or its employees.
RISK-BASED TRAINING ACTIVITIES
During 2024, dedicated trainings and awareness
initiatives on various compliance topics such as an-
ticorruption have been provided to our employees,
with the aim to promote the consistency of their
behaviors with the applicable anticorruption laws
and regulations.
We believe that every employee shall be informed
on the applicable Anticorruption laws, so to be aware
of the risks, the relevant personal and corporate
responsibilities and have a clear understanding of
the actions needed to tackle bribery and any poten-
tial violation of such laws. Mandatory induction train-
ing programs are delivered to all new joiners both in
person and through a specific e-learning platform
with the support of the Human Resources depart-
ment. These trainings provide the necessary knowl-
edge of Anticorruption laws and the instructions to
recognize any potential criticalities.
Nevertheless, the Compliance function monitors
the level of awareness on anticorruption - and all
other compliance topics, among which antitrust, pri-
vacy, and confidentiality, of the entire Ferrari popula-
tion, including the FLT. Indeed, every year, for all com-
pliance topics, the Compliance function assesses the
level of risk exposure of each area, function(38) and
activity. According to the results of this assessment,
in-depth training is deployed to the at-risk functions
on the specific compliance topic. The training pro-
grams are targeted to employees who are identified
according to their roles in Ferrari and their related
exposure to the concerned compliance risk.
Anticorruption training has not been deployed to
Board members.
In 2024, the risk assessment revealed that 4 areas
are the most at-risk in terms of Anticorruption top-
ics: 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. Within the
above-mentioned areas, the percentage of at-risk
functions and their members covered by the train-
ing activities was assessed following an in-depth risk
assessment. This process aims to safeguard individ-
uals who may be exposed to such risks. The training
is meticulously structured to address specific needs
and it has been delivered in-person to over 90 per-
cent of the members of those functions.
THIRD PARTIES COMPLIANCE PRACTICE
Dealing with third parties entails inherent risks, in terms
of potential corporate liabilities, as well as financial and
reputational damages that Ferrari may suffer as a con-
sequence of unlawful conducts carried out by third
parties with which it does business (“Third Parties”).
Hence, Ferrari strongly believes that the capability to
adequately evaluate Third Parties, as well as promptly
address any threats and risk factors, represents an es-
sential requirement for the protection of its assets, in-
tegrity and reputation in an overall and long-term vision.
Ferrari aims to collaborate with third parties that
meet certain requirements both in terms of compli-
ance with applicable laws and regulations and in rela-
tion to ethics, integrity and transparency. In this respect,
Ferrari has adopted the Third Parties Compliance
Practice, that establishes the general rules of conduct
that must be followed at Group level when dealing with
any Third Parties, including active and passive counter-
parties as well as any further Third Parties with which
Ferrari may establish contractual relationships. The
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Practice involves counterparties that, according to the
contractual relation with Ferrari, receive payments
from or give payments to Ferrari (i.e. dealers, distrib-
utors, sponsors, licensees, service centers and direct
clients of vehicles, consultants, suppliers, agents) and
any further third party that does business with Ferrari,
whether as a legal and/or a natural person. This Practice
officially entered into force in 2020 and applies to the
entire Ferrari Group pursuant to local legislation. The
practice covers the following risk: “Potential non-com-
pliance with Anticorruption Laws requirements due to
external context or internal elements”.
In
particular,
the Third
Parties
Compliance
Practice underlines the importance of carrying out a
“compliance evaluation” before establishing any busi-
ness relationship with a Third Party in order to exam-
ine its ethical reliability and reputation, its involvement
in a legitimate and lawful business, and its ambition to
share Ferrari’s values of integrity and fairness.
By adhering to the principles outlined in the
Third Parties Compliance Practice, Third Parties are
therefore expected not only to comply with appli-
cable laws and Ferrari’s ethical principles and stan-
dards, but also to become active parties towards
their own employees and their respective third par-
ties to disseminate a culture of compliance, integrity
and transparency.
The Internal Audit function carries out appropri-
ate audits and controls to verify the correct imple-
mentation of the Practice. The Compliance function
periodically reviews the Practice and monitors its
implementation to ensure it remains updated and
efficient, taking into consideration any organization-
al changes, emerging best practices, possible viola-
tions or criticalities that have been identified.
The FLT is the most senior level in the Ferrari
Group that is accountable for the implementation of
this Practice.
No third-party standards or initiatives were used
to draft the Practice. Practices and procedures are
drafted with the precautionary principle in mind and
are functional to the pursuit of the interests of stake-
holders, who are therefore the main reference point
considered in their drafting.
The Third Parties Compliance 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 cor-
porate website at the following link https://www.fer-
rari.com/en-EN/corporate/practices.
WHISTLEBLOWING
The Ferrari Group has set a specific procedure to
investigate business conduct incidents, including
possible cases of corruption and bribery, promptly,
independently and objectively. The Whistleblowing
Procedure regulates the reporting channels and the
process of managing reports of possible violations
originating from internal or external persons of the
Ferrari Group. It contains information about the ob-
jectives, scope of application, potential reporting sub-
jects, operational measures to manage the reporting
and to investigate reported facts and address allega-
tions or incidents. It encloses assigned responsibili-
ties and protection measures for whistleblowers.
As described in the Code of Conduct, the Ferrari
Group has adopted the Ethics Helpline, a channel
which allows all stakeholders (employees, custom-
ers, suppliers and partners) and any third parties to
request advice and/or report concerns about alleged
situations, events or actions which may be inconsis-
tent with the values and principles set out in the Code
of Conduct, Organizational Models, laws and regu-
lations, 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 appli-
cable laws and regulations. As of the date of publica-
tion of this Statement, we do not have any additional
procedures beyond those established by the applica-
ble law transposing Directive (EU) 2019/1937.
The Ethics Helpline can be accessed either by
phone or by web, with multiple languages available,
and it is an essential element of the management pro-
cess, in accordance with the Code of Conduct. It is
managed by an independent provider, and it is avail-
able 24 hours a day, seven days a week. We assess the
effectiveness of the Ethics Helpline through the con-
tinuous monitoring of the platform and the effective
registration of the reports. All reported subjects and
facts are processed with the utmost confidentiality,
so that the individuals who report an alleged viola-
tion in good faith are not subject to any form of retal-
iation. In addition, in compliance with applicable local
legislation, reports may also be made anonymously.
We developed a dedicated online training course on
Whistleblowing topics and the training course on
Ferrari’s Code of Conduct also includes a section on
whistleblowing, to ensure that all employees under-
stand how the Ethics Helpline operates and are aware
of the contents of the Whistleblowing Procedure. The
training on the Whistleblowing procedure is manda-
tory for all new joiners or in the event of amendments
to relevant internal regulations. In addition, in line with
the Compliance training approach mentioned before,
specific training sessions are executed annually for
those functions resulting at high compliance-related
risk. For further information on this approach, please
refer to paragraph “—Training & Functions at risk”.
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.
For this reason, G1-1 10 d is not applicable.
Furthermore, Ferrari employees may also seek
advice concerning the application and interpretation
of the Code of Conduct by contacting the Compliance
function or submitting a query to the Ethics Helpline.
The reports received are classified into four cat-
egories corresponding to the four main principles
of the Code of Conduct: we protect people; we act
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with integrity; we are committed to operating in an
environmentally responsible way; we protect the
resources, the tradition and identity of Ferrari.
The Internal Audit and Compliance functions, with
the potential support of the Legal Affairs and Human
Resources departments, as well as other business
functions possibly involved, assess all allegations.
The outcomes and the potential disciplinary/contrac-
tual actions resulting from each allegation are then
notified to the relevant internal functions. The mea-
sures taken are commensurate with the seriousness
of the case and comply with the applicable legislation.
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 develop-
ments 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 poten-
tial 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 han-
dled by the identified corporate functions, in accor-
dance with the Whistleblowing Procedure.
In addition, to provide maximum transparency to
the entire process, a Whistleblowing Committee has
been appointed. It is composed of the Chief Human
Resources Officer, the General Counsel and the
Chief Internal Audit, Risk and Compliance Officer.
The Whistleblowing Committee meets periodically
to monitor the progress of the investigations and
the implementation of the measures taken by the
relevant corporate functions. Periodic reporting on
whistleblowing management is provided to the Audit
Committee and further internal control bodies.
RESPONSIBLE PURCHASING
PRACTICES
We source a variety of components, raw materials,
supplies, utilities, logistics and other services from
numerous suppliers. We recognize the contribution
of our suppliers to our success in pursuing excel-
lence in terms of luxury and performance, therefore
we carefully select suppliers that are able to meet
our high standards.
For the sourcing of certain key components with
highly technological specifications, we have devel-
oped strongly synergic relationships with some
of our suppliers, which we consider “key strategic
innovation partners”. We currently rely on selected
key strategic innovation partners, including for the
supply of transmissions and brakes. We have also
developed strong relationships with other industrial
partners for bodyworks and chassis manufactur-
ing and for powertrain and transmissions, among
other things. Pursuant to our make-or-buy strategy,
we generally retain production in-house whenever
we have an interest in preserving or developing
technological know-how or when we believe that
outsourcing would impair the efficiency and flexi-
bility of our production process. Therefore, we con-
tinue to invest in the skills and processes required
for low-volume production of components that we
believe improve product quality.
For the year ended December 31, 2024, the
purchases from our ten largest suppliers by value
accounted for approximately 23 percent of total
procurement costs, and no supplier accounted for
more than 5 percent of our total procurement costs.
Our focus on excellence, in terms of luxury,
quality, aesthetics and performance, requires us to
implement a responsible and efficient supply chain
management to select suppliers and partners that
are able to meet our high standards. Notwithstanding
the low volume of cars manufactured, our produc-
tion process requires a great variety of inputs entail-
ing a complex supply chain management to ensure
continuity of production.
OUR POLICY
Our relations with suppliers are governed by pur-
chase contracts (including general conditions of
purchase), which outline mutual responsibilities and
expectations. When we sign a contract with a busi-
ness partner, we extend an invitation to them to also
sign the Statement of Commitment, by which sup-
pliers undertake not only to comply with the pro-
visions 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 docu-
ment 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-com-
pliance with the Code of Conduct may give rise to
significant consequences and could be considered
a serious breach. In such circumstances, Ferrari re-
serves 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 so-
cially responsible working environment.
To further monitor and promote a responsible sup-
ply 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:
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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 nec-
essary. The SRC’s aim is to establish management
guidelines for financially critical suppliers, approving
current action plans and mitigation measures, re-
questing 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 perspec-
tive. The function will also guarantee operational
activities in support of both direct and indirect pur-
chasing, including strategic & trade compliance
analyses and checks.
OUR ACTIONS
Since 2021, we quantify our CO2eq emissions along the
whole value chain. Indirect upstream GHG emissions,
which account for about 55 percent of our total emis-
sions, relate mainly to our supply chain procurement
process. In particular, the majority of this stream
comes from raw material extraction and component
production. For this reason, we are developing en-
gagement activities and partnerships with our sup-
pliers to identify effective solutions to reduce GHG
emissions and to drive the low-carbon transition.
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-com-
pliance 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(39), the com-
petent departments of the Ferrari Group conduct
an adequate Compliance Evaluation on the potential
supplier to examine its ethical reliability and reputa-
tion, its involvement in a legitimate and lawful busi-
ness, 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 activ-
ity since the prior period. The information collected
enables us to identify activities to raise awareness
among our suppliers, and we will continue this activ-
ity in the future. No significant operational or capital
expenditures have been allocated to this action in
2024 or are planned for the future.
In 2024, we continued a structured engagement
of our Tier 1 and Tier 2 supplier base, to collect qual-
itative and quantitative information regarding their
climate change impacts, specifically through Life
Cycle Assessments. Most of the direct suppliers
were involved to identify emission hotspots on which
to focus improvement efforts. This approach aims
to ensure that companies not only maintain a high
level of quality in their products or services, but that
they are also actively engaged in carbon reduction
activities and sustainable resource management.
The main objective of these engagement activities
is to understand whether suppliers have clear and
measurable targets for reducing their emissions in
the medium and long term. It is crucial that compa-
nies not only recognize the importance of sustain-
ability, but that they integrate concrete strategies
and practices to contribute to reducing environ-
mental impacts. These initiatives are an important
step towards building a network of responsible and
sustainable suppliers, capable of addressing global
environmental challenges and responding to the
increasing consumer and regulatory expectations
for sustainability. The information collected enables
us to identify activities to raise awareness among
our suppliers, and we will continue this activity in
the future. The expected outcome of the Life Cycle
Assessment approach related to carbon footprint
is to create a “carbonized” bill of materials of the
entire vehicle across our entire product range.
This will allow us to set up a solid base to define the
decarbonization roadmap of our vehicles through
the identification of hot spots in our upstream value
chain to be tackled with targeted actions. Product
carbon footprint (PCF) will cover the Scope 3 emis-
sions related to a single vehicle.
These objectives are to be achieved within the 2030
Carbon Neutrality target. There is no past informa-
tion because a structured questionnaire was first
administered in 2024. The actions planned for the
future aim to improve the quality of the final result:
among these, maximizing the percentage of primary
data (collected from suppliers) and switching from
spend to activity-based data. No significant opera-
tional or capital expenditures have been allocated to
this action in 2024 or are planned for the future.
Moreover, we are carrying out targeted tier-n
engagement activities for all major raw material
suppliers (aluminum, steel, platinum-group metals,
plastics, carbon fiber), particularly on small- and
medium-sized suppliers, to search for sustainable
and low-carbon solutions.
Ferrari aims to have direct access to materi-
als and technologies with reduced environmental
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impact, by engaging and cooperating with Tier-1 and
key-players of the supply chain, such as with, alumi-
num and plastic suppliers.
The main goal consists in developing and imple-
menting the decarbonization initiatives to contribute
to the achievement of the 2030 Carbon Neutrality
target. This effort specifically focuses on Scope 3
Emissions Category 1 as the perimeter of action.
Our purpose is to create strategic collabora-
tive relationships in the field of innovation and sus-
tainability. We have been working hard to establish
new strategic partnerships with important players
on the global scene, and as a result of these efforts,
we have also created direct connections with inno-
vative material manufacturers. These alliances not
only expand our network of collaborations, but also
give us access to cutting-edge technologies that can
enrich our offering and improve its quality.
We plan to engage in new projects and opportu-
nities on Scope 3 category 1 by exploring innovative
materials and technologies such as recycled and
bio-based materials. Moreover, we plan to enlarge
our decarbonization strategy toward the remaining
categories of Scope 3 such as use of services and
capital goods. No significant operational or capital
expenditures have been allocated to this action in
2024 or are planned for the future.
For further information about actions related to
GHG emissions reductions please refer to “E1—
Climate change—Our Strategy to Reach Carbon
Neutrality by 2030”
In 2024, with the continued partnership with
Drive Sustainability, we were able to engage a
selected base of our Tier 1 suppliers(40) (approx-
imately 70 percent of active suppliers of direct
materials, accounting for more than 87 percent
of our Annual Purchase Value, and about 20.6 per-
cent of active suppliers of indirect materials) and
to collect comprehensive information on their ESG
performance through a structured questionnaire.
Suppliers were selected based on risk criteria (stra-
tegic relevance, geographical location, company
size, supplier strategy, product category or service).
Through the Drive Sustainability Questionnaire
(SAQ 5.0), we request detailed information on our
suppliers’ social and environmental practices. The
questionnaire includes basic questions about their
code of ethics, human rights policies and the pres-
ence of formal complaint handling mechanisms or
procedures. In addition, we ask for specific details
on workers’ health and safety to verify the pres-
ence of high standards in the treatment of human
resources. In addition to social aspects, the question-
naire also addresses environmental issues, focusing
on responsible sourcing of raw materials and sus-
tainable management of the entire value chain.
The objective of this activity is to create the first-
level risk assessment upon which we will structure
our due diligence activities.
During 2024, we submitted the questionnaire
to direct material suppliers(41) who did not respond
to the first survey and we extended it to additional
138 direct material suppliers. In this way we involved
suppliers accounting globally over 96 percent of
our direct materials 2024 Annual Purchasing Value
(APV). The information collected enables us to iden-
tify activities to raise awareness among our suppli-
ers. We plan to continue this initiative in the future
by involving in 2025 the Indirect Materials Suppliers
who did not respond to the first Survey. Additionally,
we plan to enlarge the scope to address the Due
Diligence requirements of new regulations like EU
Batteries Regulation and Deforestation Regulation.
In the future, the Drive Sustainability questionnaire
might also be used for assessing and selecting
new suppliers. No significant operational or capital
expenditures have been allocated to this action in
2024 or planned for the future.
The actions described above are the starting
point of a structured ESG due diligence activity, which
will be extended to all suppliers in the coming years.
PAYMENT PRACTICES
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 pay-
ment 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 enter-
prises (SMEs - Small and Medium Enterprises(42)).
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 addi-
tional verification and control procedures that may
be required for certain purchases prior to paying.
As of December 31, 2024, there were no out-
standing legal proceedings for late payments.
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BOARD REPORT
RISK MANAGEMENT PROCESS AND
INTERNAL CONTROL SYSTEM
Our risk management approach is an important
business driver and it is integral to the achieve-
ment of the Group’s long-term business plan. We
take an integrated approach to risk management,
where risk assessment is part of the leadership
team agenda. The Board of Directors is responsible
for considering the ability to control and manage
risks crucial to achieve its identified business tar-
gets and to ensure continuity of the Group. For this
reason, Ferrari has developed varying appetites to
achieve different strategic objectives, focusing at-
tention at all relevant risk levels, from risk manage-
ment to internal control.
To assess risks affecting the Company’s activ-
ities and the effectiveness of the internal control
system, Ferrari has in place an internal control and
risk management system (the “System”) based
on the model provided by the COSO Framework
(“Committee of Sponsoring Organizations of the
Treadway
Commission
Report—Enterprise
Risk
Management model”) and the principles of the Dutch
Corporate Governance Code.
Our System consists of a set of rules, procedures
and organizational structures aimed at contributing
proactively to the following objectives:
• safeguard of Ferrari’s heritage;
• efficient and effective management of the Group
in line with corporate strategies;
• reliability, accuracy and integrity of the infor-
mation provided to corporate bodies and to the
market; and
• compliance with the current laws and regula-
tions, with the Company’s Statute and Articles of
Association and with the internal procedures of
the Group.
Contributing to informed and consistent deci-
sion-making as well as to the spread of a correct
knowledge of risks, legality and corporate values,
the System plays a central role in the corporate or-
ganization, supporting the Company’s management
in alignment with the corporate objectives as de-
fined by the Board of Directors.
FERRARI’S ORGANIZATION
OF THE INTERNAL CONTROL
AND RISK MANAGEMENT SYSTEM
The System involves a plurality of organizational
units and actors, requiring both coordination among
each other and room to operate interdependent-
ly, guaranteeing complementarity in the objectives
pursued and in the rules of operation.
In order to ensure the adequateness of the
System, Ferrari has allocated roles and responsi-
bilities among the relevant organizational units and
actors based on the international best practice of
the “Three Lines of Controls Model”. Each line of
control has different functions with clearly defined
boundaries:
• The first line of control identifies, assesses
and manages the relevant risks and subse-
quently elaborates and implements specific
response actions. It comprises the set of con-
trol activities that each operating unit applies
to their processes to ensure operations are
carried out properly. Such activities, the pri-
mary responsibility of which lies with the man-
agement of the applicable operating units, are
considered an integral part of corporate op-
erations. This first line of control comprises
core business Risk Owners, staff functions Risk
Owners and by the Ferrari Leadership Team.
The managers of each operating unit are re-
quired, within the scope of their activities and
responsibilities, to ensure the System functions
properly and effectively;
• The second line of control monitors the main
risks to ensure the controls implemented by the
first line are appropriate and effective. It also
provides support to the first line of control in the
identification and assessment of the main risks,
as well as in the implementation of management
procedures, and related controls, necessary to
address those risks. This control line is entrust-
ed to compliance, strategic, operational and
reporting functions. Additionally, on a case-by-
case basis and depending on the significance
of the risk, specific corporate departments can
be assigned tasks pertaining to the second-line
concerning specific risk areas;
• The third line of control provides for indepen-
dent and objective assurance and advisory ac-
tivities, and it is aimed at assessing the adequacy
of internal control, risk management and cor-
porate governance processes according to a
risk-based approach. Third-line controls and ac-
tivities fall within the remit of the Internal Audit
department which carries out checks on the
structure and effectiveness of the System.
The Board of Directors designs, implements, and
maintains internal risk management and control sys-
tems. In executing such responsibilities, it is assist-
ed by the Audit Committee, which is responsible for
advising the Board of Directors and acts under the
authority delegated by the Board of Directors with
reference to internal controls and risk management
systems.
The Ferrari Leadership Team is responsible for
the deployment and maintenance of a risk manage-
ment system across our business functions. The
Ferrari Leadership Team is a managerial group led
by the CEO and composed of the heads of the var-
ious corporate departments; it reviews the risk
management framework and the Company’s key
global risks on a regular basis. For risks deemed to
be significant, comprehensive risk response plans
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are developed and reviewed on a regular basis to
ensure the actions are relevant and sufficient. Our
risk management framework is discussed with the
Group’s Audit Committee on a regular basis.
Moreover, the Company has adopted a specific
Internal Control and Risk Management System Policy,
approved by the Audit Committee in May 2023, with
the aim to provide for a clear attribution of respon-
sibilities relating to the governance, monitoring and
reporting of the main risks and interrelationships
between the organizational units and the bodies
responsible for risk management and control.
As noted above, the System involves a plurality
of departments and actors: its correct function-
ing depends on productive interactions between
such units and people. It is therefore important to
establish methods of coordination and collabora-
tion between the various departments and people
involved to facilitate both the overall functioning of
the System as well as unambiguous and consistent
reporting of the risks to which the Group is exposed
to the top management and the relevant corporate
bodies. With this goal in mind, in December 2023, our
System was enhanced with the creation of a new
department tasked with coordinating the system
as a whole: the Internal Audit, Risk and Compliance
Department, which reports directly to the CEO and
works to ensure, in an integrated manner, that busi-
ness operations are conducted with transparency,
in the interests of shareholders and all stakeholders.
The Internal Audit, Risk and Compliance depart-
ment reports to the Chief Internal Audit, Risk &
Compliance Officer, who in turn reports to the CEO,
and comprises the following groups:
• Enterprise Risk Management, the purpose of this
group is to create an organized system for identi-
fying, assessing, managing, and monitoring major
risks that could compromise the achievement of
our strategic, operational and financial objectives.
• Compliance, the purpose of which is to ensure
that the actions taken within the Company are
consistent with the applicable rules of ethics, laws
and regulations, as well as Ferrari’s internal pro-
cedures, in order to increase the confidence of
stakeholders in the fairness of our management.
• Internal Audit, the purpose of which is to pro-
vide an independent and objective assessment
of the adequacy of our Internal Control and Risk
Management System as well as of the efficiency
of operations conducted within Ferrari. This is
achieved through the execution of, among oth-
ers, operational, compliance, financial and tech-
nology audits as well as consulting activities de-
signed to enhance and protect company assets
and relevant information also providing support
to internal stakeholders in the implementation of
projects, as applicable. The Internal Audit func-
tion continues to report to the Audit Committee
of the Board of Directors of Ferrari N.V.
• Ferrari
has
established
an
Internal
Control
Committee with the aim of supervising the System
and facilitating an integrated approach to risks
and controls by the function involved and other
departments that perform control activities.
The Internal Control Committee meets at least
on a quarterly basis and is composed of the CFO
(Chairman), the General Counsel, the Chief Digital
Transformation Officer, the Chief Internal Audit, Risk
and Compliance Officer, the Chief Human Resources
Officer, the Chief Accounting Officer and represen-
tatives from the following departments: Investor
Relations and Sustainability, Group SOX, Internal
Audit, Enterprise Risk Management, Compliance, Tax
Risk and Enterprise Cybersecurity.
FERRARI’S ENTERPRISE
RISK MANAGEMENT PROCESS
The Ferrari ERM system is based on the above men-
tioned COSO Framework.
The Ferrari Enterprise Risk Management sys-
tem is oriented by and structured in six different
components:
• Risk Governance: a structure through which our
organization directs, manages and reports its
risk management activities. The Risk Governance
structure encompasses clearly defined roles
and responsibilities, decision-making powers,
risk operating model and reporting lines.
• Risk Culture: the values and the attitude con-
sistent with our risk management culture are
communicated and understood at all levels of
the organization, with the aim of increasing the
diffusion of a risk culture, fostering a common
risk language and the sharing of information and
experiences related to risks.
• Risk Strategy & Appetite: our risk management
principles are intended to enable the achieve-
ment of our business plan, goals and strategic
objectives. Our risk appetite is balanced through
risk tolerance, limits and associated protocols to
be activated in case of a breach, to ensure risk
levels’ control within our organization.
• Risk Assessment & Measurement: established
activities that allow Ferrari to identify, assess and
quantify potential risks on a regular basis. This
activity allows Ferrari to consider the potential
impact that events may have on the achievement
of the Company’s objectives. Risks are assessed
using likelihood, impact, preparedness and ve-
locity level criteria.
• Risk Management & Monitoring: management’s
response to manage, mitigate, avoid, share or
accept risk. Risk management efforts create val-
ue through information on risks and controls to
improve business performance. Systematically
monitoring the identified risks and management
activities against established metrics allows for
timely and proactive response where warrant-
ed. Key Risk Indicators (“KRIs”) are reviewed to
ensure their consistency with the identified risks
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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and their trends are analyzed to identify needs for
further remediation plans. KRIs are monitored
each trimester, semester, or year, where the fre-
quency of monitoring depends on a series of ele-
ments such as: being connected to company top
risks, frequency of change, data availability.
• Risk Reporting: reporting of risk and related
information (e.g. mitigation activities) provides
genuine insight into the strengths and weakness-
es of the risk management process. Disclosure
of risk management information to key internal
and external stakeholders supports the deci-
sion-making processes.
RISK STRATEGY & APPETITE
The risk appetite of Ferrari (i.e., the level of risk that
Ferrari is willing to accept to achieve its objectives) is
applied to our strategy, Code of Conduct, corporate
values and policies. Such risk appetite is measured
and tracked thanks to the so-called “Risk Appetite
Framework”.
The Risk Appetite Framework is integrated
in all corporate decision-making levels. It defines
Ferrari’s risk profile, provides explicit boundaries to
risk levels within which the management is expected
to safely operate, and iteratively reviews risk values,
metrics, and limits.
The risks, divided into specific categories as set out in the table below,
are all relevant to the Ferrari business in different ways and their order
of appearance does not reflect a ranking by significance.
Risk category
Risk description
Overall appetite
Risk appetite statement
Strategic risks (S)
Risks which affect or
are created by Ferrari’s
business strategy and could
affect Ferrari’s long-term
positioning and performance.
Moderate
Ferrari is willing to accept moderate risks in order
to achieve its strategic objectives. Ferrari recognizes
the need of continuing to invest in research and
development to design and build technically innovative,
aesthetically iconic and highly performing cars able
to deliver the most “driving thrills” and feature design
excellence. Strategic risks are taken in a responsible
way considering all stakeholders’ interests in order
to preserve Ferrari’s brand exclusivity, a high level
of demand, the unique customer experience and
the current technological and regulatory trends.
Operational risks (O)
Risks which impact the
internal processes, people,
systems and/or external
resources of the organization
and affect Ferrari’s ability to
implement its business plan.
Moderate
Ferrari seeks to minimize operational risks on its
business plans by implementing a manufacturing
system capable of flexibly meeting expected targets,
maintaining a quality of products and services in line
with Ferrari’s customers’ expectations, developing
and retaining talents within the organization, securing
business continuity as well as production line
performances and ensuring the adequacy of our
business partners.
Financial risks (F)
Risks which include areas
such as valuation, currency,
liquidity, commodity and
impairment risks.
Low
Ferrari has a cautious approach with respect to
financial risks. Ferrari continuously seeks to improve
and strengthen its financial position in order to
generate the required cash to finance its operations
and reward its stakeholders.
Compliance risks (C)
Risks of non-compliance
with laws, regulations,
local standards, code of
conduct, internal policies and
procedures.
Zero tolerance
Ferrari does not tolerate infringements of, and abides
to, all applicable laws and regulations through the
implementation of preventive measures and the
rigorous enforcement of its internal Code of Conduct.
This ensures that ethics and integrity are respected
and the promotion of its values.
Reputational risks (R)
Risks which affect Ferrari’s
brand image, credibility and/
or integrity
Zero tolerance
Ferrari strives to protect and enhance its reputation
by mitigating all the potential threats that could
influence Ferrari’s reputation, credibility and the
operational integrity, while constantly increasing
its brand awareness.
Health, Safety and
Environmental risks (H)
Risks which affect health and
safety and the environment
Zero Tolerance
Ferrari does not tolerate risks that could have
effect on its employees or clients as well as on the
surrounding environment.
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
INTEGRATED RISK ASSESSMENT
The integrated risk assessment, which is carried
out annually, is a structured and systematic pro-
cess for identifying, assessing and prioritizing main
corporate risks.
Different
departments
of
the
System
are
involved in the process to obtain a shared and com-
plete picture of risk exposure and to prevent over-
laps in the activities which must be performed.
The integrated risk assessment consists of the
following activities:
• Identification and description of the main risks
that could affect achievement of corporate ob-
jectives, grouped by business area, organization-
al department, functional area, and, where nec-
essary, process.
• Performance of risk assessment and analysis:
a.
at inherent-risk level, i.e. without considering
mitigation actions in place, and
b.
at residual-risk level, i.e. taking into account
action taken to mitigate the risk.
In performing the analysis at inherent and residual lev-
el, we analyze the potential impact, i.e. the potential con-
sequences when a risk manifest itself, as well as the po-
tential probability and velocity of this happening.
Risk events are measured and assessed accord-
ing to the following parameters:
• likelihood, intended as the probability that and
event may occur; it can be measured in one of
three different metrics: quantitative, qualitative
or frequency;
• impact, intended as the effect on company tar-
gets and operations of a risk event involving the
Strategic, Financial, Compliance, Health & Safety,
Environmental or Operational and Reputational
component of the business;
• preparedness, intended as the maturity and
efficiency of the existing risk management sys-
tems and processes relevant to that risk event;
• velocity, defined as the time that elapses be-
tween the occurrence of a certain risk event and
the point at which the company first feels its ef-
fects.
The results of each risk assessment are consol-
idated on a risk heat map which combines the
afore-mentioned variables to offer an immediate
picture of most relevant events and determine their
priority and risk treatment methods.
KEY RISKS
A non-exhaustive summary of risks and uncer-
tainties faced by Ferrari are described in the Risk
Factors section of this Annual Report.
In this section we have identified one risk for
each risk category providing examples of control
and mitigation actions implemented by the Company
to reduce risks overall exposure.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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The list of risks, control measures and mitigating actions presented
below is not exhaustive. The sequence in which these risks and mitigating
actions are described does not reflect any order of importance, likelihood
of occurrence or control measures effectiveness.
Risk category
Risk
Risk description
Control / Mitigating Actions
Strategic
risks (S)
Technology,
Product and
Regulation
The introduction of electric technology in our
cars is costly and its long-term success is
uncertain. A failure in the challenge to make
Ferrari new electric models appealing, in
renewing style over time, in differentiating ICE
from hybrid/electric cars and in differentiating
new models from older models could impact
our ability to meet the tastes of clients and
prospects.
•
Heavy investments in R&D to maintain leading
position in high performance car technology and
our competitive position
•
As technologies change, Ferrari upgrades and
adapts its cars through the introduction of new
models to keep providing cars with the latest and
best-in-class technology
•
Car pricing strategies to recoup the investments
and expenditures sustained in product and
technology development
•
Monitoring of luxury car market, technological
evolution, social trends (for example connectivity
expectations) and changes in our customer
experiences to offer the most appealing future
models possible
Operational
risks (O)
Production
Disruption
All cars and engines are internally
manufactured at our production facility in
Maranello. We manufacture all of car chassis in
a nearby facility in Modena.
Our Maranello or Modena plants could become
unavailable permanently or temporarily for a
number of reasons, including contamination,
power shortage, labor strikes or events related
to information technology business continuity.
If major disasters such as earthquakes,
fires, floods, hurricanes, wars, terrorist
attacks, pandemics or other events occur,
our headquarters, as well as our Formula 1
activities and production facilities, may be
seriously damaged, or we may have to stop or
delay the production and shipment of our cars.
•
In the last 15 years, Ferrari increased
investments to reduce the extent of possible
damages from earthquakes and fires and has
been implementing different activities to mitigate
climate change risks. For example, to mitigate
floods risk, the Company has implemented
alert systems to monitor possible floods near
corporate facilities as well as floods management
tools like flow diverters and pumps
•
To avoid impacts on the information technology
business continuity Ferrari implemented disaster
recovery plans
•
Insurance coverages have been structured to
avoid financial impacts from natural events
•
Safety stock for critical components
Financial
risks (F)
Exchange
Rate
Fluctuations,
Interest Rate
Changes,
Commodity
Prices, Credit
Risk and
Other Market
Risks
Ferrari operates in numerous markets
worldwide and is exposed to market risks
stemming from fluctuations in currency
and, to a lesser extent, interest rates and
commodity prices.
The exposure to foreign exchange rate risks is
mainly linked to our cash flow from revenues
denominated in currencies different from the
ones connected to purchases or production
activities. We incur a large portion of our
capital and operating expenses in Euro while
we receive the majority of our revenues in
currencies other than Euro.
•
Foreign exchange hedging instruments
authorized within the Company’s foreign
exchange risk management policy
•
Monitoring interest rate movements for hedging
purposes and execution of the foreseen interest
rate caps
•
Commodity hedging instruments defined and
authorized for specific commodities’ price
exposure risk
•
Credit approval policies applied to dealers and
retail clients
•
Bank guarantees, pre-payments (also title of the
vehicle for the financial services business
Compliance
risks (C)
Non-
compliance
with Laws,
Regulations,
Local
Standards
and Codes
We are subject to comprehensive and
constantly evolving laws, regulations and
policies throughout the world. We expect that
legal and regulatory requirements affecting
our business and our costs of compliance will
continue to increase significantly in scope and
complexity in the future. Evolving regulatory
requirements could significantly affect our
product development plans and may limit the
number and types of cars we sell and where
we sell them, which may adversely affect our
revenue and operating results.
•
Increasing knowledge and awareness of laws,
regulations, standards and codes through
specific training and/or internal communication
to the relevant departments
•
Specific project teams activated in case of
new requirements to put in place the required
organizational and process changes
•
Increasing internal compliance awareness
and effective communication between central
compliance team and managers working at the
subsidiary level
•
Communicating and implementing business
conduct standards internally
•
Maintaining a global whistle blower procedure
•
Training activities in order to increase awareness
of personal data management
•
Internal organizational structure focused on
privacy and adoption of a procedural system
focused on privacy matters
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Reputational
risks (R)
Brand Image
The preservation and enhancement of the
value of the Ferrari brand is crucial in driving
revenue and demand for our cars. The
perception and recognition of the Ferrari
brand are of strategic importance and depend
on many factors such as design, technology,
performance, quality and image of our cars,
as well as the appeal of our dealerships and
stores, the success of our client activities,
and our general profile, including our brand’s
image of exclusivity.
•
Structured process of selection and
management of business partners (e.g. selection
of licensing-franchising partners, preventive
controls on suppliers, enhancement of the client
community, Ferrari Academy training center for
dealers, etc.)
•
Preservation of brand value (e.g. with an internal
function dedicated to monitoring and maximizing
the residual value of Ferrari cars, monitoring of
pre-owned market and estimating evolution of
residual values, etc.)
•
Social media management (e.g. close monitoring
of social media and Ferrari perception, adoption
of a Ferrari Social Media Practice)
•
Adoption of a Ferrari Social Media Practice
Health,
Safety and
Environmental
risk (H)
Climate
Change
We are subject to climate-related risks in the
conduct our business. Physical impacts of
climate change, including natural disasters and
adverse weather, could result in disruptions
to us, our suppliers, vendors, customers and
logistics hubs. These risks may also exacerbate
other risks, some of which described in the
“Risk Factors” section of this Annual Report,
including but not limited to our competitiveness,
products’ demand, consumer preferences,
availability and price of raw materials.
•
Mapping our direct and indirect emissions
•
Mapping specific suppliers’ carbon footprint
and raising awareness to improve bottom up
information sharing by requiring both current
carbon footprint and reduction roadmap
•
Identification of co-designers and new
innovation / product development activities, also
considering CO2 potential impacts
•
Scenario analysis of physical and transitional
climate change risks, covering the 2030 to 2050
period, to build an effective resilience strategy
•
Monitoring fleet emissions over time
RISK MANAGEMENT & MONITORING
Ferrari has adopted a specific framework (called
“Risk Response Strategy”) to define specific mitiga-
tion plans for each relevant risk identified through
the yearly integrated risk assessment, as described
above. The first line of control is responsible for iden-
tifying and implementing the mitigation action able
to reduce the company risk exposure. Enterprise
Risk Management department:
• supports the first line of control in identifying
and implementing the mitigation actions;
• evaluates the effectiveness of mitigation actions
to reduce the company risk exposure.
For each relevant risk identified, one of the following
risk response strategy is assigned to such risk:
• Reduce: to reduce the residual risk exposure;
• Avoid: to avoid the residual risk exposure;
• Share: to transfer/share the residual risk expo-
sure;
• Accept: no further actions plan to be defined,
monitoring of operational activities.
Enterprise Risk Management department moni-
tors on regular basis the mitigation actions status
to promptly evaluate the updated risk exposure for
each relevant risk identified. The results of periodi-
cal mitigation actions status monitoring are report-
ed to Ferrari Leadership Team.
RISK REPORTING
Ferrari has developed a clear framework of infor-
mation flows to corporate governance and control
bodies to provide with timely and appropriate infor-
mation concerning both the results and any trouble
encountered during the activity carried out by the
different departments involved in internal control
and risk management system, so that the Corporate
Governance and Control Bodies (e.g. Audit Committee
and Internal Control Committee) can evaluate the
necessary corrective actions without delay.
In particularly, the risk map derived from the
Integrated Risk Assessment is first shared with the top
management and then presented to the Group’s Audit
Committee, with focus on the relevant risk areas, the
mitigation activities implemented, any management
strategies that must be adopted and their priority.
INTERNAL CONTROL OVER
FINANCIAL REPORTING
Starting from October 2015, Ferrari N.V. is listed on the
New York Stock Exchange (NYSE), while from January
2016 Ferrari N.V. is also listed on the Euronext Milan
(formerly Mercato Telematico Azionario, or MTA).
Our shares’ listing on regulated markets involves
being compliant with the related securities regula-
tions and listing rules. In particular, publicly traded
companies filing financial statements with the U.S.
Securities and Exchange Commission are required
to comply with the Sarbanes Oxley Act require-
ments, in particular sections 302, 404 and 906 that
involve a periodical management assessment of
internal controls and CEO and CFO Certifications of
Periodic Financial Reports and SEC Filings. In addi-
tion, our independent registered public accounting
firm is also required to report on the effectiveness
of the internal control over financial reporting.
Under the COSO Internal Control-Integrated
Framework, according to which the internal con-
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FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
trol system is defined as a set of rules, procedures
and tools designed to provide reasonable assur-
ance of the achievement of corporate objectives,
Ferrari has developed an Internal Control System
over the Financial Reporting in order to assure
completeness, accuracy and reliability of the group
financial reporting.
Within the abovementioned context, identifi-
cation and evaluation of the risk of misstatements
which could have material effects on financial
reporting is carried out through a risk assessment
process that uses a top-down approach to iden-
tify the organizational entities, processes and the
related accounts, in addition to specific activities
that could potentially generate significant errors.
Under the methodology adopted by the Company,
risks and related controls are associated with the
accounting and business processes upon which
accounting information is based.
Significant risks identified through the assess-
ment process require definition and evaluation of
key controls that address those risks, thereby mit-
igating the possibility that financial reporting will
contain any material misstatements.
In accordance with international best practices,
the Group has two principal types of control in place:
• controls that operate at Group or subsidiary lev-
el, such as delegation of authorities and respon-
sibilities, separation of duties, and assignment
of access rights to information technology sys-
tems; and
• controls that operate at process level, such as
authorizations, reconciliations, verification of
consistencies, etc. This category includes con-
trols for operating processes, controls for finan-
cial closing processes and controls carried out
by specific service providers. These controls
can be preventive (i.e., designed to prevent er-
rors or fraud that could result in misstatements
in financial reporting) or detective (i.e., designed
to reveal errors or fraud that have already oc-
curred). These controls may also be classified as
manual or automatic, such as application-based
controls relating to the technical characteristics
and configuration of information technology
systems supporting business activities.
An assessment of the design and operating ef-
fectiveness of key controls is carried out through
tests performed periodically during the year, both
at Group and subsidiary level, using sampling tech-
niques recognized as best practices internationally.
The assessment of the controls may require the
definition of compensating controls and plans for
remediation and improvement. The results of moni-
toring are subject to periodic review by the manager
responsible for the Company’s financial reporting
and communicated by him to senior management
and to the Audit Committee.
REMUNERATION OF DIRECTORS
INTRODUCTION
The description below summarizes the guidelines
and the principles followed by Ferrari in order to
define and implement the remuneration policy ap-
plicable to the executive Directors and non-execu-
tive Directors of the Company, as well as members
of the Ferrari Leadership Team (FLT). In addition,
this section provides the remuneration paid to
these individuals for the year ended December 31,
2024. The form and amount of compensation re-
ceived by the Directors of Ferrari for the year end-
ed December 31, 2024 was determined in accor-
dance with the remuneration policy.
The Compensation Committee oversees the
remuneration policy, remuneration plans and prac-
tices of Ferrari and recommends changes when
appropriate. The Committee is solely comprised of
non-executive Directors who are independent pur-
suant to the Dutch Corporate Governance Code
(the “Code”). Through this document, Ferrari aims
to provide its stakeholders with a high level of trans-
parency and disclosure in order to strengthen the
trust they and the market place in Ferrari, as well
as provide them with the information they need to
assess the Company’s remuneration principles and
exercise shareholders’ rights in an informed man-
ner. The Company may from time to time amend
the remuneration policy, subject to our sharehold-
ers’ approval when necessary. This Compensation
Report consists of two sections:
Remuneration strategy: our current remunera-
tion policy (which is available on our corporate web-
site) governs compensation for both executive and
non-executive Directors. In 2024, Ferrari confirmed
these remuneration features through the positive
vote expressed by shareholders in the Annual General
Meeting held on April 17, 2024 (the “2024 AGM”).
Our current remuneration strategy further
strengthens the alignment with shareholders’ inter-
ests and long-term sustainability of our business,
adopting certain updates to reflect developing best
practices in the Code.
Implementation
of
remuneration
strategy:
details how remuneration features have been imple-
mented during the 2024 financial year and actual
remuneration received by each executive Director
and non-executive Director. In 2024, there was no
deviation from the remuneration policy.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
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(1)
REMUNERATION STRATEGY
FOR THE 2024 FINANCIAL YEAR
Our remuneration policy is aligned with Dutch
law and the Code. In particular, the Code requires
listed companies to disclose certain information
about the compensation of their Board and execu-
tive Directors. Through this remuneration strategy,
Ferrari fulfills the requirements of the Code ensur-
ing full transparency with our shareholders.
REMUNERATION PRINCIPLES
The main goal of Ferrari’s remuneration strategy is
to develop a system which consistently supports the
business strategy and value creation for all sharehold-
ers, establishing a compensation structure that allows
us to attract and retain the most highly qualified exec-
utive talents and motivate such executives to achieve
business and financial goals that create long-term val-
ue for shareholders in a manner consistent with our
core business and leadership values and taking into
account the social context around the Company.
In
defining the
remuneration
strategy, the
Compensation Committee has taken into account
certain
principles
which
characterize
Ferrari’s
remuneration policy, such as:
1.
the identity, mission and values of the Company,
to attract, retain and reward skilled women and
men who constitute the soul of the Company.
Their passion, courage, creativity, ambition and
pride constitute the essence of Ferrari and fuel
its legend to ever greater heights. Being Ferrari
means being part of a unique future-focused
team in which people are the most valuable re-
source. Together with all our employees we have
crafted the vision, mission and values that are
the very essence of being part of Ferrari and
which guide our employees as we tackle our
day-to-day challenges;
2.
the provision of statutory requirements, with
specific
focus
on
the
Shareholder
Rights
Directive (Directive (EU) 2017/828) and the imple-
mentation thereof into Dutch law;
3.
international competitive remuneration market
trends, based on the idea that it is becoming in-
creasingly challenging to attract and retain em-
ployees in today’s competitive labor market. For
our executive Directors and members of the FLT,
fixed remuneration, short-term incentive oppor-
tunities and long-term incentive opportunities
are calculated based on the position and respon-
sibilities assigned to each, taking into account
average remuneration levels on the market for
positions with similar levels of responsibility
and managerial complexity in large internation-
al companies, in order to maintain high levels of
competitiveness and engagement;
4.
corporate governance and executive remuner-
ation best practices as expressed by institutional
investor guidelines, developing a remuneration
policy compliant with the Code and the interest
of Ferrari’s shareholders. We analyze any gaps
in each of our remuneration components in or-
der to provide a high level of alignment with the
main guidelines of our stakeholders;
5.
the societal context around and social support
in respect of the Company, developing a specif-
ic focus on trends in sustainability among our
employees. We aim to provide a healthy and safe
workplace for all employees and stakeholders by
implementing a high level of safety standards to
avoid potential risks to people, assets or the envi-
ronment, in order to guarantee an optimal work-
ing environment for all employees and attract the
best talents. Our results in this field reflect, once
again, our strategic commitment to protecting
the environment and ensuring personal safety;
6.
the views of the Board of Directors, members
of the FLT, other senior leaders and all employ-
ees, in order to make the health and safety of the
Company’s employees essential to the success-
ful conduct and future growth of the Company.
In this respect and in line with the Code, the inter-
nal pay ratio is an important input for determining
the remuneration for the Board of Directors; and
7.
the centrality for Ferrari of value creation and
the interest of our shareholders, the importance
of which is recognized through the use of Total
Shareholder Return (TSR) as a performance met-
ric in the Company’s long-term incentive plans.
The Compensation Committee believes that the
use of relative TSR remains one of the most ap-
propriate measures of long-term performance
for Ferrari. The structure of our PSU awards
demonstrates the centrality of this factor and
helps to promote a strong correlation between
pay and performance for our executives.
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01
Alignment with Ferrari Strategy
Compensation is strongly linked to the achievement of target aligned with the Company's
publically disclosed objectives.
02
Pay For Performance
Compensation must reinforce our performance driven culture and meritocracy.
Our incentive plans are based on peer and market benchmarked performance metrics.
03
Competitiveness
Programs are designed to recruit, motivate and reward Executive Directors and members
of the SMT delivering operational and strategic performance over time.
Compensation program provisions and financial objectives are evaluated on an annual basis
and modified in accordance with industry and business conditions.
04
Long-Term Shareholder Value Creation
Target triggering any variable compensation payment aligned to interests of shareholders.
Our compensation structure places an appropriate amount of compensation at risk based
on long-term results.
05
Compliance
Ferrari compensation policies and plans are designed to comply with applicable laws
and corporate governance requirements.
The main principles of Ferrari’s remuneration policy are outlined in the
chart below:
OVERVIEW OF REMUNERATION ELEMENTS
As anticipated above, Ferrari’s current remuneration
policy was approved by shareholders at the 2024 AGM
and will be resubmitted to a vote by the Company’s
General Meeting at least every four years. The struc-
ture of the remuneration applicable to our executive
Directors, non-executive Directors and other key
management under Ferrari’s remuneration policy
has not changed in 2024 and consists of the following
elements:
(i)
Fixed Remuneration linked to the third pillar of
Ferrari’s remuneration policy (Competitiveness)
with the objective of attracting, retaining and
motivating our qualified executives and effective
leaders. For this reason, we periodically bench-
mark comparable salaries paid to executives with
similar experience by comparable companies;
(ii)
Short-Term Incentives (STI) linked to the first
and second pillars of Ferrari’s remuneration
policy (Alignment with Ferrari’s Strategy and
Pay for Performance) and tied to specific finan-
cial targets which are set at challenging levels;
short-term incentives are also linked to the con-
tribution of the individual member (Individual
Performance Factor) in order to motivate its ben-
eficiaries to achieve challenging targets. In par-
ticular, Ferrari’s 2024 achievements, success and
developments were driven by organization-wide
alignment with the Company’s strategy and val-
ues, through incentives that reward the achieve-
ment of those goals;
(iii) Long-Term Incentives (LTI) linked to the first and
fourth pillars of Ferrari’s remuneration policy
(Alignment with Ferrari’s Strategy and Long-Term
Shareholder Value Creation) with the aim to align
the behavior of executives critical to the business
with shareholders’ interests, motivate executives
to achieve long-term strategic objectives, and en-
hance retention of key resources;
(iv) Non-Monetary Benefits which are related to
the overall remuneration and linked to the
third pillar of Ferrari’s remuneration policy
(Competitiveness).
Ferrari’s remuneration policy provides that a sub-
stantial portion of the compensation of our executive
Directors and members of the FLT should be “at-risk”,
meaning that each will receive a certain percentage of
his or her total compensation only to the extent Ferrari
and the executive accomplish short- and long-term
goals established by the Compensation Committee.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
305
BOARD REPORT
The
Compensation
Committee
regularly
reviews
the
Directors’
remuneration policy against the best corporate governance practices
adopted by institutional shareholders and the recommendations of the
main proxy advisors, while also considering the view of the stakeholders
on the remuneration policy and main features of the compensation report.
In this respect, at the 2024 AGM shareholders approved the remuneration
report for the year 2023 (the “2023 Ferrari Remuneration Report”) and
the voting results are reflected in the following table:
Resolution
Votes For
%
Votes Against
%
Votes Total
Abstain
2.d - Remuneration
Report 2023
(discussion and
advisory vote)
202,247,427
99.16043%
1,712,394
0.83957%
203,959,821
584,565
Considering the previous vote of the Annual General Meeting of
shareholders and to further understand shareholders’ feedback to the
2023 Ferrari Remuneration Report, we engaged with our stakeholders
prior to drafting the remuneration report for the year 2024. We believe
that those conversations have been very constructive and have led to
improvements in our remuneration report.
Through this remuneration report we continue to pursue our objective
of providing our stakeholders each year with clear and comprehensive
disclosure of the decisions relating to the remuneration of our executive
and non-executive Directors and members of the FLT.
The remuneration report for the year 2024 is subject to a consultative vote
at the Annual General Meeting of Shareholders scheduled for April 16, 2025.
306
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
REMUNERATION STRUCTURE FOR 2024 AND OUTLOOK 2025
The purpose and features of the different elements of our remuneration
structure for 2024 which will remain unchanged for 2025 are outlined in
the table below:
Component
Purpose
Terms and Conditions
Remuneration
Structure
Attract, retain and
motivate highly qualified
executives to achieve
challenging results
Competitively position
our compensation
package compared to
the compensation of
comparable companies,
mainly represented by
the reference panel and
companies that compete
for similar Talents
Reinforce our
performance driven
culture and meritocracy
•
Ferrari’s remuneration structure
is organized as follows:
•
Fixed remuneration
•
Short-term incentives
•
Long-term incentives
•
Non-monetary benefits
Fixed
Remuneration
Reward skills, contribution
and experience required
for the position held
•
Executive Chairman: Fixed remuneration is set in relation to the delegated powers
assigned over the term and positions held in line with the Reference Panel based on
yearly benchmarking (see “Benchmarking for Executive Directors Remuneration”
Paragraph).
•
CEO: Fixed remuneration is set in relation to the delegated powers assigned over
the term and positions held in line with the Reference Panel (see “Benchmarking for
Executive Directors Remuneration” Paragraph).
•
Non-executive Directors: Remuneration of non-executive Directors is fixed and
not dependent on the Company’s financial results. It is approved by the Company’s
shareholders and periodically reviewed by the Compensation Committee.
•
FLT Members: The fixed remuneration is related to the position held and the
responsibilities attributed, as well as the experience and strategic nature of the
resources, in line with Reference Panel offering for roles of similar responsibility
and complexity.
Short-Term
Incentives
•
Achieve the annual
financial, operational
and other targets and
additional business
priorities
•
Motivate and guide
executives’ activities
over the short-term
period
•
Short-term incentives targets:
•
Based on achievement of annually predetermined performance objectives
•
Annual financial, operational and other identified objectives
Long-Term
Incentives
Align the behavior of
executives critical
to the business with
shareholders’ interests
Motivate executives
to achieve long-term
strategic objectives
Enhance retention of key
resources
•
Equity awards through the to promote creation of value for the shareholders
•
Equity Incentive Plan 2022 – 2024, 2023 – 2025 and 2024 – 2026
•
Executive Directors: awarded only PSUs
•
FLT Members: awarded a combination of PSUs and RSUs
•
PSUs: 40% linked to TSR compared to Peer Group, 40% linked to Adjusted EBITDA,
20% linked to ESG related Factor Goal
The new LTI Plan 2025-2027 will introduce minor changes as composition of relative TSR
group (maintaining the same number of companies) and the ESG metrics to which PSUs
are linked.
Non-Monetary
Benefits
Retain executives through
a total reward approach
Enhance executive and
employee security and
productivity
Represent an integral part of the remuneration package with welfare and retirement-
related benefits
Lock Up Period
Ensures alignment with
shareholders’ interests
In 2022 a lock up provision was introduced for the Executive Chairman, the CEO, the
members of the FLT and other key members of the Group. The Lock Up provision applies
retroactively to all equity incentive plans in place.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
307
BOARD REPORT
2024 Implementation and Outlook 2025
Offer a highly competitive compensation package compared to the roles with the same managerial complexity and responsibilities
within comparable companies, comprised of those represented by the Reference Panel.
•
Executive Chairman: €500,000 annually.
•
CEO: €1,500,000 annually.
•
Non-Executive Directors: $75,000 annually.
•
FLT Members: The fixed remuneration is related to the position held and the responsibilities attributed, as well as the experience
and strategic nature of the resource, in line with Reference Panel offering for roles of similar responsibility and complexity.
•
Executive Chairman: the compensation package includes a short-term incentive plan with a target pay-opportunity equal to 100%
of base salary and maximum pay-opportunity equal to 225% of base salary.
•
CEO: The compensation package includs a short-term incentive plan with a target pay-opportunity equal to 100% of base salary and
maximum pay-opportunity equal to 225% of base salary.
•
FLT Members: Variable incentive percentage of fixed remuneration based on the position held with an average target pay-
opportunity equal to 100% of base salary and an average maximum pay-opportunity equal to 225% of base salary.
•
Executive Chairman: The Equity Incentive Plan 2022-2024, 2023-2025 and 2024-2026 provides for a target pay-opportunity equal to
200% and a maximum pay-opportunity equal to 320% of base salary.
•
CEO: The Equity Incentive Plan 2022-2024, 2023-2025 and 2024-2026 provides for a target pay-opportunity equal to 200% and a
maximum pay-opportunity equal to 320% of base salary.
•
FLT Members: Variable incentive percentage of fixed remuneration based on the position held with an average target opportunity
equal to 125% and average maximum pay opportunity equal to 181% of base salary.
Customary welfare, retirement-related and fringe benefits such as company cars and drivers, personal/home security, medical
insurance, accident insurance, tax preparation and financial counselling.
Under the lock up provision, 50% of the vested shares under the equity incentive plan will be subject from the date of vesting to
unavailability and non-transferability for a period determined according to the corporate role:
•
CEO and Chairman: 36 months
•
FLT members: 24 months
•
Other key members of the Group: 12 months
308
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
2024 REMUNERATION OF EXECUTIVE
DIRECTORS AND FLT MEMBERS
The Board of Directors determines the compensation
for our executive Directors following the recommen-
dation of the Compensation Committee and with ref-
erence to the remuneration policy. The compensation
structure for executive Directors and FLT members
includes a fixed component and a variable component
based on short and long-term performance.
BENCHMARKING FOR EXECUTIVE
DIRECTORS REMUNERATION
We believe that this compensation structure pro-
motes the interests of Ferrari in the short and the
long-term and is designed to encourage the executive
Directors and FLT members to act in the best inter-
ests of Ferrari. In determining the level and structure
of the compensation of the executive Directors, the
non-executive Directors will take into account, among
other things, Ferrari’s financial and operational re-
sults and other business objectives, while considering
the executive Directors’ view concerning the level and
structure of their own remuneration. Performance
targets are set by the Compensation Committee to be
both achievable and stretching, considering Ferrari’s
strategic priorities and the automotive landscape. The
performance measures that are used for variable
components have been chosen to support Ferrari’s
strategy, long-term interests and sustainability.
For the abovementioned reasons, the compensa-
tion packages adopted by Ferrari are significantly bal-
anced towards the variable components in order to
reinforce the performance-driven culture and mer-
itocracy. This is in line - as per the short-term incen-
tive component - with the first and second pillars of
Ferrari’s remuneration policy (see “Alignment with
Ferrari’s Strategy and Pay for Performance”) and - as
per the long-term incentive component (which has a
dominant weight, as shown in the figures below) - with
the first and fourth pillars of Ferrari’s remuneration
policy (see “Alignment with Ferrari’s Strategy and Long-
Term Shareholder Value Creation”), with the ultimate
aim to align the performance with shareholders’ inter-
ests and value creation in the medium- to long-term,
to motivate executives to achieve long-term strategic
objectives, and to enhance retention of key resources.
This compensation structure, inspired by Ferrari’s
remuneration policy, is mirrored in the compensa-
tion package for the Ferrari workforce at every level,
in order to promote and better pursue the organiza-
tion-wide alignment with the Company’s strategy and
values and contribute to pay-for-performance cul-
ture and long-term value creation.
The structure of the compensation package (base
salary and variable compensation, composed of LTI
and STI components) specifically provided for the
CEO and the Executive Chairman is aligned to, and
consistent with, the main pillars of the Ferrari’s remu-
neration policy applied to the entire workforce as well
as to the best market practice and to the Reference
Panels, as better explained below.
In this regard, we establish target compensation
levels using a market-based approach and we moni-
tor compensation levels and trends in the market. We
also periodically benchmark our executive compen-
sation program against peer companies.
In 2024, Ferrari conducted the periodic review of
the Reference Panel it uses to assess the competitive-
ness and alignment of the compensations awarded to
the CEO and Executive Chairman, as well as to ensure
the consistency of the adopted compensation policies
with the Reference Panel.
As for the CEO, Ferrari identified an ad hoc
Reference Panel composed of 15 companies.
In continuity with previous years, Ferrari bench-
marked its CEO’s total remuneration with those of
listed companies deemed comparable with Ferrari in
light of some or all of the following criteria: a) repre-
senting excellence and luxury in their respective sec-
tors; b) operating in the same business as Ferrari; c)
acting in similar sectors; d) presenting overall a sim-
ilar market capitalization, revenues and number of
employees with Ferrari.
Compared to 2023, the CEO’s Reference Panel
was updated by adding Brunello Cucinelli, which
meets the selection criteria outlined above, focusing
the panel more on companies representing excel-
lence and luxury. Furthermore, three companies
(Volkswagen, Volvo and The Estée Lauder Companies)
were removed from the previous peer group due to
less affinity with Ferrari’s business positioning.
The companies in the Reference Panel used by Ferrari for the CEO’s
compensation benchmarking are listed below:
Chief Executive Officer Reference Panel
Aston Martin Lagonda
Bayerische Motoren Worke
Brembo
Brunello Cucinelli
Burberry
Compagnie Financiere Richemont
Ermenegildo Zegna
Harley-Davidson
Hermes International
Kering
LVMH
Mercedes-Benz Group
Moncler
Pirelli
Porsche
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
309
BOARD REPORT
EXECUTIVE CHAIRMAN’S AND CEO’S COMPENSATION PACKAGES
Chairman
target
amounts
25%
25%
50%
25%
25%
50%
Chairman
maximum
amounts
CEO
maximum
amounts
Fixed remuneration
Share
Short-term incentives
Long-term incentives
CEO
target
amounts
16%
34%
50%
16%
34%
50%
The Executive Chairman’s Reference Panel com-
prises the companies of the CEO’s Reference Panel
which have a chairman with powers and delega-
tions comparable to the powers and authority of
the Executive Chairman (five Companies out of 15 of
those inserted in CEO’s Reference Panel), along with
four additional companies (added in order to bench-
mark a statistically significant number of peers and
determined based on companies that have a chair-
man with powers and authority comparable to the
powers and authority of the Executive Chairman).
Compared to 2023, the Executive Chairman’s Refer-
ence Panel has been updated by adding Brunello
Cucinelli, which meets the selection criteria outlined
above.
The companies forming part of the Reference Panel for the Executive
Chairman target compensation benchmarking are listed below:
Executive Chairman Reference Panel
Ariston Group Holding
Aston Martin Lagonda
Brembo
Brunello Cucinelli
Compagnie Financiere Richemont
Ford Motors
Hermes International
Prada Group
The Estèe Lauder Companies
As described above, both Reference Panels are
composed of companies representing excellence in
their respective sectors and offering very competi-
tive compensation levels to their executives.
The
level
and
structure
of
the
Executive
Chairman’s and CEO’s compensation packages for
2024 have therefore been compared to the prac-
tices of the companies belonging to the abovemen-
tioned Reference Panels.
As for the compensation structure, the current
Executive
Chairman’s
and
CEO’s
compensation
packages are in line with (i) market practice and
the compensation packages offered by companies
belonging to the Reference Panels; and (ii) Ferrari’s
remuneration policy as approved by shareholders at
the 2024 AGM.
Because the Reference Panels consist of sev-
eral companies that are larger than Ferrari in terms
of revenues and/or number of employees and that
have
competitive
remuneration
packages,
the
CEO’s base salary is positioned above the median
of the CEO’s Reference Panel while the Executive
Chairman’s base salary is below the 25th percentile
of the Executive Chairman’s Reference Panel; the
total target compensation for the CEO is around the
median while the Executive Chairman’s total target
compensation is positioned below the 25th percen-
tile.
Our Executive Chairman’s and CEO’s compensation packages are
structured as follows:
310
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
On the basis of the remuneration policy objectives,
compensation of executive Directors and FLT members
consists, inter alia, of the elements discussed below.
Fixed component
The primary objective of the base salary (the fixed
part of the annual cash compensation) for executive
Directors and FLT members is to attract and retain
highly qualified senior executives. Our policy is to pe-
riodically benchmark comparable salaries paid to
executives with similar experience by comparable
companies.
Variable components
Executive Directors and FLT members are also eligi-
ble to receive variable compensation subject to the
achievement of pre-established financial and other
identified performance targets. The short and long-
term components of executive Directors’ and FLT
members’ variable remuneration are linked to prede-
termined, assessable targets in order to create long-
term value for the shareholders.
Our variable compensation programs are designed
to recruit, motivate and reward executive Directors
and members of the FLT delivering operational and
strategic performance over time. The provisions and
financial objectives of our variable compensation pro-
grams are evaluated on an annual basis and modified
in accordance with industry and business conditions.
Short-term incentives
The primary objective of our performance-based
short-term variable cash-based incentives is to incen-
tivize the executive Directors and the members of the
FLT to focus on the business priorities for the current
or next year. The short-term incentive plan is designed
to motivate its beneficiaries to achieve challenging
targets, by recognizing individual contributions to the
Group’s results on an annual basis. The Compensation
Committee believes that it is appropriate to use a bal-
ance of corporate financial targets, strategic objec-
tives and individual performance objectives.
The methodology for calculating payouts under our short-term incentive
plan is the following:
The target level for both the Company Performance
Factor and the Individual Performance Factor is 100%,
reaching a possible maximum level which is equal to
the 150% of the target level, resulting in a maximum
pay-opportunity equal to 225% of base salary. There is
no minimum bonus payout; as a result, if none of the
threshold objectives are satisfied, there is no bonus
payment.
To determine the executive Directors’ annual per-
formance bonus, the non-executive Directors, upon
proposal of the Compensation Committee:
• approve the executive Directors’ targets and max-
imum 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.
In 2024, the Compensation Committee defined the
Company Performance Factor by reference to four
metrics:
• Net Revenues (20%)
• Consolidated Adjusted Operating profit (Adjusted
EBIT) (20%)
• Consolidated Adjusted EBITDA Margin (20%)
• Industrial Free Cash Flow (40%)
The Compensation Committee established challeng-
ing goals for each metric linked to budget, each of
which pays out independently. For each metric, per-
formance can fluctuate between 0% and 150% of tar-
PAYOUT UNDER SHORT-TERM INCENTIVE PLAN METHODOLOGY
Base Salary X STI %
Adjust opportunity
based on business
results
Links directly to
individual current
contribution
Target Bonus
Company
Performance
Factor
Individual
Performance
Factor
STI Payout
×
×
=
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
311
BOARD REPORT
get, which is the highest possible multiplier, with 50%
being the threshold level of performance required.
Achievement of the maximum level of performance
for each metric and for the Individual Performance
Factor results in a maximum pay-opportunity equal
to 225% of base salary.
The achievement of the budget target, which
is normally consistent with the Guidance publicly
disclosed at the beginning of each year, implies the
application of a multiplier equal to 100% to the rele-
vant metric, and deviations within the lowest and the
highest thresholds defined from year to year imply
a linear variation of the multipliers between 50% and
150%; outside these thresholds the multiplier goes
to zero or remains equal to 150% (which is the maxi-
mum multiplier). The overall Company Performance
Factor coefficient is a weighted average of those
obtained for each metric.
In addition, upon proposal of the Compensation
Committee, the non-executive Directors have author-
ity to grant special bonuses for specific transactions
that are deemed exceptional in terms of strategic
importance and effect on Ferrari’s results, taking into
account standards of reasonableness and fairness.
The form of any such bonus (cash, common shares
of Ferrari or options to purchase common shares)
is determined by the non-executive Directors from
time to time.
No special bonuses were awarded to the execu-
tive Directors or members of the FLT for 2024.
Short-term incentives clawback clause
In 2023, in furtherance of the NYSE listing require-
ments, Ferrari introduced a clawback clause for its
short-term incentives, which allows the Company to
recover part or all of the variable component of re-
muneration received during the three fiscal years
immediately preceding the date the Company is re-
quired to prepare an accounting restatement due
to the material noncompliance of the Company with
any financial reporting requirement under applica-
ble securities laws, including any required account-
ing restatement to correct an error in previously
issued financial statements that is material to the
previously issued financial statements, or that would
result in a material misstatement if the error were
corrected in the current period or left uncorrected
in the current period.
We have also adopted a specific policy aligned with
the NYSE listing requirements (the “NYSE Clawback
Policy”). The NYSE Clawback Policy, which became
effective on December 1, 2023, provides for the recov-
ery of certain erroneously awarded incentive-based
compensation earned by current or former executive
officers of the Company in the event that the Company
is required to prepare an accounting restatement.
Long-term incentives
We believe that the equity incentive plan dis-
cussed below increases the alignment between the
Company’s performance and shareholder interests,
by linking the compensation opportunity of the exec-
utive Directors and members of the FLT to increas-
ing shareholder value.
During
2024,
Ferrari
had
three
long-term
equity incentive plans in place, consistent with the
Company’s business plan presented at the Capital
Markets Day in June 2022 and awarding to their ben-
eficiaries, as the case may be, a combination of per-
formance share units (“PSUs”) and restricted share
units (“RSUs”), each representing the right to receive
one Ferrari common share:
• Equity Incentive Plan 2022-2024, approved on
February 25, 2022 by the Board of Directors,
covering a performance period from 2022 to
2024, having the Executive Chairman and CEO
of the Company, as well as members of the FLT
and other key members of the Group as benefi-
ciaries;
• Equity Incentive Plan 2023-2025, approved on
February 23, 2023 by the Board of Directors,
covering a performance period from 2023 to
2025, having the Executive Chairman and CEO
of the Company, as well as members of the FLT
and other key members of the Group as benefi-
ciaries;
• Equity Incentive Plan 2024-2026, approved on
February 22, 2024 by the Board of Directors,
covering a performance period from 2024 to
2026, having the Executive Chairman and CEO
of the Company, as well as members of the FLT
and other key members of the Group as benefi-
ciaries.
Further details about vesting of Equity Incentive Plan
2022-2024, covering a performance period from
2022 to 2024, which will vest on March 2025 and
having the Executive Chairman and the CEO of the
Company, as well as members of the FLT and other
key employees of the Group, as beneficiaries, ended
on December 31, 2024 are provided in Section 2.
For the Equity Incentive Plan 2022-2024, the PSUs
are earned based on the level of achievement of
defined key performance indicators relating to: i)
a relative total shareholder return (“TSR”) target
(which is relative to the TSR of a defined peer group
(“Peer Group”)), ii) an Adjusted EBITDA target, and iii)
an ESG-related factor goal.
Each target is measured independently of the
other targets and relates to separate portions of the
aggregate awards.
For the Equity Incentive Plan 2022-2024, the Equity
Incentive Plan 2023-2025 and the Equity Incentive
Plan 2024-2026, executive Directors are awarded
only PSUs. For the Equity Incentive Plan 2022-2024,
the Equity Incentive Plan 2023-2025 and the Equity
Incentive Plan 2024-2026, the RSUs, which are
awarded only to members of the FLT and other key
employees of the Group, are service-based and vest
subject to the employees’ continued employment
with the Company at the time of vesting.
312
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Details of the equity long-term incentives granted to the Executive
Chairman and CEO are summarized below:
EQUITY INCENTIVE PLAN 2022-2024, EQUITY INCENTIVE PLAN 2023-2025
AND EQUITY INCENTIVE PLAN 2024-2026
Type of Equity Long-Term
Incentive Vehicle
Proportion of Equity
Long-Term Grant
Holding Period
Performance Metrics
(Weighting)
Executive Chairman
Performance
Share Units
(PSUs)
100%
6 years: 3 years
performance period
+ 3 years Lock Up
1) relative TSR (40%)
2) Adjusted EBITDA (40%)
3) ESG-related Factor
Goal (20%)
CEO
Performance
Share Units
(PSUs)
100%
6 years: 3 years
performance period
+ 3 years Lock Up
1) relative TSR (40%)
2) Adjusted EBITDA (40%)
3) ESG-related Factor
Goal (20%)
The number of PSUs earned is determined based on the level at which the
three performance criteria described below are achieved. At the end of
the vesting period, the total number of PSUs earned is equal to the sum of:
• the number of PSUs earned under the relative TSR payout factor;
• the number of PSUs earned under the Adjusted EBITDA payout factor;
plus
• the number of PSUs earned under the ESG-related factor goal.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
313
BOARD REPORT
EQUITY INCENTIVE PLAN 2022-2024, EQUITY INCENTIVE PLAN 2023-2025
AND EQUITY INCENTIVE PLAN 2024-2026 MAIN FEATURES
Metrics
(weight)
Metrics
(type)
Benchmark
Rationale
Link between pay and performance
Relative TSR (40%)
Financial criteria
Peer Group
(11 companies:
Ferrari, Aston
Martin, Burberry,
Estèe Lauder,
Hermes, Kering,
LVMH, Mercedes
Benz Group AG,
Moncler, Prada and
Richemont)
TSR is tracked for both
Ferrari and the companies
in the defined Peer Group
calculating: The starting
price is the share price on
the first opening day of
the year, while the ending
price is the average of the
share prices over the 30
calendar days prior to the
grant and award date
Ranking
% of target awards
1°
2°
3°
4°
5°
6°
7°-8°-9°-10°-11°
175%
150%
125%
100%
75%
50%
0%
Adjusted EBITDA
(40%)
Financial criteria
5-year Business Plan
Adjusted EBITDA is defined
as net profit before income
tax expense, financial
(income)/expenses, net
and amortization and
depreciation and is an
indicator of Ferrari’s
profitability(1)
Performance
Payout
+15%
+10%
+5%
5 Years Plan
-5%
<-5%
175%
150%
125%
100%
75%
0%
ESG-related Factor
Goal (20%)
Non-financial
criteria
Project linked
to E and S spheres
The ESG focuses on an Environment Factor and a Social Factor: -
50% is based on the Reduction CO2 Carbon Emission following the
milestones of the Ferrari’s sustainability plan -Rolling KPI until 2030:
for the intermediate years leading up to 2030, the amount of the
incentive attributed to this KPI will be assessed based on targets
calculated through a year-by-year reduction proportional to product
development up to 2030. This methodical approach ensures a
progression towards the final targets established for the year 2030,
allowing for a consistent and measurable tracking of the CO2 emission
reduction efforts in alignment with Ferrari’s long-term sustainability
objectives. - 50% is based on the maintenance of the Equal Salary
Certification or equivalent certification. The award of this certification
is based not only on equal pay for men and women, but in a more
extensive way on targets of continuous improvement of Diversity and
Inclusion culture and inclusive environment.
The certification process involves both quantitative and qualitative
evaluations. The quantitative evaluation, which must be surpassed to
proceed to the qualitative evaluation, consists of a detailed statistical
analysis of compensation levels to verify that the gender pay gap is
lower than 5% compared to a predictive statistical salary and that the
accuracy of the data used is greater than 90%. The qualitative evaluation
assesses: (i) the CEO, the FLTs and other executives’ commitment to
diversity and inclusion matters, (ii) how Corporate processes and
policies are fair in terms of gender, (iii) employees’ perception of the
inclusiveness of the culture and (iv) the PDCA (Plan, Do, Check, Act)
methodology application in all of the aforementioned processes.
(1)
For additional information relating to this non-IFRS financial measure, see “Financial Overview—Non-GAAP Financial Measures—
EBITDA and Adjusted EBITDA”
314
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
In relation to the vesting of the PSUs awarded to the Executive Chairman
and the CEO, the settlement of all units under the plans occur after the
end of the performance period (i.e., December 31, 2024 and December
31, 2025 and December 31, 2026), to the extent that the conditions for
vesting are satisfied.
The performance period for the Equity Incentive Plan 2023-2025 PSUs
commenced on January 1, 2023. The fair value of the awards used for
accounting purposes was measured at the grant date using a Monte
Carlo Simulation model. The fair value of the PSUs that were granted to
Mr. Elkann and Mr. Vigna in 2023 is €221.76 per share.
The key assumptions used to calculate the grant-date fair values for
these awards are summarized below:
Key Assumptions
PSU Awards Granted to
the Chairman and CEO in 2023
Grant date share price
€242.30
Expected volatility
27.93%(1)
Dividend yield
0.75%
Risk-free rate
2.90%
(1)
The expected volatility was based on the observed volatility of the defined Peer Group. The risk-free rate was based on the iBoxx
sovereign Eurozone yield.
The performance period for the Equity Incentive Plan 2024-2026 PSUs
commenced on January 1, 2024. The fair value of the awards used for
accounting purposes was measured at the grant date using a Monte
Carlo Simulation model. The fair value of the PSUs that were granted to
Mr. Elkann and Mr. Vigna in 2024 is €386.05 per share.
The key assumptions used to calculate the grant-date fair values for
these awards are summarized below:
Key Assumptions
PSU Awards Granted to
the Chairman and CEO in 2024
Grant date share price
€390.50
Expected volatility
26.34%1
Dividend yield
0.61%
Risk-free rate
3.00%
(1)
The expected volatility was based on the observed volatility of the defined Peer Group. The risk-free rate was based on the iBoxx
sovereign Eurozone yield.
Any RSUs awarded to FLT members and other key members of the
Group are service-based and will vest in March 2026 or March 2027 (as
applicable) conditional on the continued employment of the beneficiaries
with the Company or the Group at the time of vesting. The executive
Directors were not awarded any RSUs in 2022, 2023 and 2024.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
315
BOARD REPORT
NEW EQUITY INCENTIVE PLAN 2025-2027,
MAIN DESIGN FEATURES
The design of the new Equity Incentive Plan 2025-
2027, which Ferrari will implement in 2025, subject
to the approval of the next Annual General Meeting,
provides for minor changes compared to the former
Equity Incentive Plans. The main changes include:
• Composition of the relative TSR peer group:
TSR Peer Group will be updated in order to con-
sider more comparable companies to Ferrari
(adding Brunello Cucinelli and Porsche AG, and
removing Mercedes-Benz Group and The Estée
Lauder Companies)
• ESG-related Factor Goal metrics: the two ESG-
related factor goals will be updated as follows: (i)
Environmental Factor (50%): the CO2 carbon emis-
sions reduction level will be measured on a Scope
1, 2, 3 upstream and 3 downstream perimeter; (ii)
Social Factor (50%): the female presence in sub-
top positions will be measured against a defined
target, set according to the Diversity Policy goal
RECOUPMENT OF INCENTIVE COMPENSATION
(CLAWBACK POLICY)
The Equity Incentive Plans include a clawback
clause, which allows the Company to recover part
or all of the variable component of remuneration
awarded or paid on the basis of information or data
that subsequently prove manifestly incorrect, if the
Board of Directors determines that circumstances
that would have constituted “cause” (as defined)
existed while the remuneration remained unvest-
ed or due to the beneficiaries’ fraud or negligence
(each, a “Recovery Event”).
In particular, if a Recovery Event occurs within
three years after the payment of cash or delivery
of any shares in respect of the PSUs or RSUs, a par-
ticipant will be required to repay the net amount
received, as determined by the Board of Directors
in its discretion.
As discussed above, the NYSE Clawback Policy
also governs the recovery of certain erroneously
awarded incentive-based compensation earned
by current or former executive officers of the
Company in the event that the Company is required
to prepare an accounting restatement.
LOCK UP PERIOD
In 2022, the Board of Directors approved a lock up
provision for its Executive Chairman, CEO, mem-
bers of the FLT and other key members of the Group
which replaces the former stock ownership guide-
lines and applies to all long-term incentive plans is-
sued and to be issued by the company.
Under the lock up provision 50% of the vested shares
under the Equity Incentive Plans will be subject from
the date of vesting to unavailability and non-trans-
ferability for a period determined according to the
corporate role:
• CEO and Chairman: 36 months after vesting
• FLT members: 24 months after vesting
• Other key members of the Group: 12 months af-
ter vesting
The Executive Chairman and the CEO are also each
required to retain 100% of the shares of common
stock issued, on a net, after-tax basis, upon vesting
and settlement of any equity awards granted to such
individual until the fifth anniversary of the grant date
of the applicable award other than in the event of
death, termination of service due to total disability,
approved leave of absence or retirement.
OTHER BENEFITS
Executive Directors may also be entitled to custom-
ary fringe benefits such as personal use of aircraft,
company cars and drivers, personal/home security,
medical insurance, accident insurance, tax prepa-
ration and financial counselling. The Compensation
Committee may grant other benefits to the execu-
tive Directors in particular circumstances.
SEVERANCE
The terms of service of the CEO provide that termi-
nation of the contract by either party is subject to
six months’ notice period. However, if the Company
terminates his services for reasons other than for
just cause (as defined) or if he terminates his ser-
vices due to the reduction or limitations of his man-
aging powers or following his dismissal in case of
change of control, the Company shall pay the CEO
an amount equal to 18 monthly installments of his
base monthly salary, including any amount due for
the six months’ notice period (which means that the
severance amount does not exceed 12 months’ sala-
ry, in line with the Code), plus the accrued pro rata of
the Company’s contribution to the pension fund as
well as STI and LTI variable compensation accrued
at the date of termination of employment. If an actual
severance payment will be made at the termination
of employment and such severance payment would
exceed 12 months’ base salary, then a disclosure will
be made in line with the Code.
If within twenty-four months following a change
of control (as defined), the Chairman’s services are
terminated by the Company (other than for cause),
or are terminated by the Chairman for good reason,
the Chairman is entitled to receive the accelerated
vesting of awards under his long-term incentive plan.
316
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(1)
Includes €3,123,629, €1,994,433 and €1,009,045 recognized
as share-based compensation expense during the years
ended December 31, 2024, 2023, and 2022 respectively, for
equity awards granted under the Group’s Equity Incentive
Plan 2023-2025 and the Equity Incentive Plan 2022-2024 that
will vest in 2026 and 2025, respectively, subject to certain
performance and service conditions. See also “—Directors’
compensation” and “—Share-based compensation of
executive Directors” below.
(2)
For 2021 the pay ratio is calculated considering the
remuneration of the current CEO, Benedetto Vigna, payable
for the period from September 16, 2021 (the date when Mr.
Vigna began acting as Chief Executive Officer) to December
31, 2021, which includes a one-off Welcome Bonus. There
is no significant difference between the pay ratio so
calculated and the pay ratio calculated based on the target
remuneration elements pro-rated on a full year basis. In
addition, the compensation payable to Mr. Elkann as interim
CEO during 2021 is not included in the calculation of the
pay ratio because such compensation was forfeited by Mr.
Elkann. The decrease in the pay ratio in 2021 when compared
to 2020 can be explained, inter alia, by the fact that for 2020
the pay ratio is calculated considering the remuneration
of the former CEO, Louis Camilleri, whose compensation
package was different from that of the current CEO and
included a large portion of LTI variable compensation.
INTERNAL PAY RATIOS
In line with the Code, the internal pay ratio is an important input for
determining the Remuneration Policy for the Board of Directors. The
internal pay ratio is calculated as the ratio between (i) the total annual
remuneration of the CEO (43) and (ii) the average total annual remuneration
of the employees of the Company and the Group Companies of which the
company consolidates the financial data(44). The following table presents
the internal pay ratio for 2024, 2023, 2022, 2021 and 2020.
2024
2023
2022
2021(2)
2020
Total Annual Remuneration of CEO (A)
7,983,034(1)
6,692,434(1)
4,993,961(1)
4,486,151
6,835,721
Average Total Annual Employee (FTE) Remuneration
Costs (B)
102,170
99,857
97,182
92,656
78,193
Pay Ratio (A/B)
78.1
67.0
51.4
48.4
87.4
SCENARIO ANALYSIS
On an annual basis, the non-executive Directors, upon
proposal of the Compensation Committee, examine
the relationship between the performance criteria
chosen and the possible outcomes for the variable
remuneration of our executive Directors (scenar-
io analysis). To date, the non-executive Directors
believe the remuneration policy has proven effec-
tive in terms of establishing a correlation between
Ferrari’s strategic goals and the chosen perfor-
mance criteria, as the main key performance criteria
of our executive Directors’ long-term incentive plan,
which represents a significant part of the Executive
Chairman’s and the CEO’s compensation package,
supports both Ferrari’s business strategy and value
creation for our shareholders.
The Compensation Committee evaluates the
mix of variable compensation linked to financial
and non-financial performance, as well as share-
holder returns, taking also into account the wages
and employment conditions of our employees.
Our incentive plans are based on peer and market
benchmarked performance metrics.
In the event that specific long-term threshold
performance targets are not achieved, there will
be no variable pay vesting or payout for executive
Directors for the relevant period.
The following table and chart describe compensation levels that the
Executive Chairman and the CEO could receive under the compensation
packages in place and different scenarios in a calendar year, assuming a
constant share price (i.e. no appreciation):
Element of remuneration
Details of assumption
Fixed remuneration
The Executive Chairman’s base salary is €500,000 and the CEO’s base salary is €1,500,000.
Short-term Incentive Plan
The compensation packages for 2024 for the Executive Chairman and the CEO include a short-term
incentive plan with a threshold pay-opportunity equal to 50% of base salary, a target pay-opportunity
equal to 100% of base salary and maximum pay-opportunity equal to 225% of base salary.
Long-term Incentive Plan
Executive Chairman and CEO:
in case of failure to achieve any of the performance criteria the scenario assumes no award of PSUs;
in case of achievement of the threshold for each of the performance criteria, the scenario assumes an
award equal to threshold pay opportunity (60% of base salary);
in case of achievement of the targets for each of the performance criteria, the scenario assumes an
award equal to target pay opportunity (200% of base salary);
in case of achievement of the maximum level of each performance criteria the scenario assumes the
award equal to maximum pay opportunity (320% of base salary).
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
317
BOARD REPORT
CHAIRMAN AND CEO COMPENSATION LEVELS
CHAIRMAN, €
4,000,000
0
500,000
500,000
250,000
300,000
500,000
1,000,000
500,000
CEO, €
10,000,000
0
Minimum
Threshold
Target
Maximum
Fixed remuneration
500,000
Short-term remuneration
1,050,000
2,000,000
1,125,000
1,370,000
500,000
2,995,000
1,500,000
1,500,000
750,000
900,000
1,500,000
3,000,000
1,500,000
Minimum
Threshold
Target
Maximum
1,500,000
3,150,000
6,000,000
3,375,000
4,110,000
1,500,000
8,975,000
Long-term remuneration
Fixed remuneration
Short-term remuneration
Long-term remuneration
Details about the Chairman and the CEO’s actual 2024 remuneration are
included in section 2.
In the event of performance below the set thresholds, the Executive
Chairman and the CEO would not receive payout of any amounts under
either the short-term or long-term incentive plan.
318
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
REMUNERATION POLICY FOR
NON-EXECUTIVE DIRECTORS
Remuneration of non-executive Directors is approved by the Company’s
shareholders and periodically reviewed by the Compensation Committee.
Remuneration of non-executive Directors is fixed and not dependent on
the Company’s financial results. Non-executive Directors are not eligible
for variable compensation and do not participate in any incentive plans.
The current annual remuneration for the non-executive Directors (which
was approved at the 2024 AGM) is shown in the table below:
Non-Executive Director Compensation
U.S. $
Annual cash retainer
$75,000
Additional retainer for Audit Committee member
$10,000
Additional retainer for Audit Committee Chairman
$20,000
Additional retainer for Compensation Committee member
$5,000
Additional retainer for Compensation Committee Chairman
$15,000
Additional retainer for ESG Committee member
$5,000
Additional retainer for ESG Committee Chairman
$15,000
Additional retainer for the senior non-executive Director
$25,000
All remuneration of the non-executive Directors is paid in cash.
Remuneration of other employees and Equal Salary Certification
Ferrari aims to provide a market-competitive and fair remuneration
package for its workforce, in line with the remuneration policy and
in order to better pursue the Company’s strategy and purpose and
contribute to long-term value creation.
Furthermore, Ferrari operates a merit-based remuneration policy,
which does not discriminate on the basis of gender, age, nationality,
social status or cultural background.
In 2023 we received the renewal of the Equal Salary Certificate for
providing equal pay to men and women with the same qualifications and
positions in the Company, confirmed in 2024. See also “Sustainability
Statement—S1—Own workforce—Diversity and Inclusion—Our actions”.
Ferrari strongly believes in the Equal Salary Certification and since 2022
the maintenance of the certification is part of the vesting conditions of the
equity incentive plans (as a component of the ESG-related Factor Goal).
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
319
BOARD REPORT
2. IMPLEMENTATION OF REMUNERATION STRATEGY IN 2024
INTRODUCTION
This section sets out the implementation of Ferrari’s remuneration
strategy for the year ended December 31, 2024. The remuneration granted
in the year ended December 31, 2024 is in accordance with the substance
and the procedures of the remuneration strategy (as set out above) and
therefore we believe it allows us to seek to attract and retain the most
highly qualified executive talent and motivate such executives to achieve
business and financial goals that create long-term value for shareholders
in a manner consistent with our core business and leadership values and
taking into account the social context around the Company.
DIRECTORS’ COMPENSATION
The following table summarizes the remuneration received by the
members of the Board of Directors for the year ended December 31,
2024 from Ferrari and its subsidiaries.
Fixed remuneration
Variable
remuneration
Extraordinary
items
Pension
benefits
LTI
Total
remuneration(2)
Annual
fee
Fringe
benefits
Name
Office held
(in €, except otherwise stated)
John Elkann
Chairman and
Executive Director
513,931
20,163(1)
1,032,500(*)
—
—
1,041,210
2,607,804
Benedetto
Vigna
Chief Executive
Officer and
Executive Director
1,500,000
31,905(1)
3,097,500(*)
—
230,000
3,123,629
7,983,034
Total
Executive
Directors
2,013,931
52,068
4,130,000
—
230,000
4,164,839
10,590,838
Piero Ferrari
Vice Chairman
and Non-Executive
Director
74,298
20,164(1)
—
—
—
—
94,462
Sergio Duca
Senior Non-
Executive Director
111,445
—
—
—
—
—
111,445
Delphine
Arnault
Non-Executive
Director
74,297
—
—
—
—
—
74,297
Francesca
Bellettini
Non-Executive
Director
78,940
—
—
—
—
—
78,940
Eddy Cue
Non-Executive
Director
78,940
—
—
—
—
—
78,940
John Galantic
Non-Executive
Director
83,584
—
—
—
—
—
83,584
Maria Patrizia
Grieco
Non-Executive
Director
78,940
—
—
—
—
—
78,940
Adam Keswick
Non-Executive
Director
69,653
—
—
—
—
—
69,653
Mike Volpi
Non-Executive
Director
69,653
—
—
—
—
—
69,653
Total
Non-Executive
Directors
719,750
20,164
—
—
—
—
739,914
Total
2,733,681
72,232
4,130,000
—
230,000
4,164,839
11,330,752
(1)
Relate to car benefits provided to Mr. Vigna, Mr. Elkann and
Mr. Ferrari in accordance with the remuneration policy.
(2)
Certain amounts have been converted from U.S. Dollars
to Euro.
(*) This amount refers to short-term incentives. For information regarding equity-based variable compensation see “Share-based
compensation of executive Directors” below.
320
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table summarizes the remuneration received by the
members of the Board of Directors for the year ended December 31,
2023 from Ferrari and its subsidiaries.
Fixed
remuneration
Variable
remuneration
Extraordinary
items
Pension
benefits
LTI
Total
remuneration2
Annual
fee
Fringe
benefits
Name
Office held
(in €, except otherwise stated)
John Elkann
Chairman and
Executive Director
513,833
13,279(1)
984,900(*)
—
—
878,667
2,390,679
Benedetto
Vigna
Chief Executive
Officer and
Executive Director
1,501,560
11,741(1)
2,954,700(*)
—
230,000
1,994,433
6,692,434
Total
Executive
Directors
2,015,393
25,020
3,939,600
—
230,000
2,873,100
9,083,113
Piero Ferrari
Vice Chairman
and Non-Executive
Director
73,777
13,080(1)
—
—
—
—
86,857
Sergio Duca
Senior Non-
Executive Director
110,665
—
—
—
—
—
110,665
Delphine
Arnault
Non-Executive
Director
73,777
—
—
—
—
—
73,777
Francesca
Bellettini
Non-Executive
Director
78,387
—
—
—
—
—
78,387
Eddy Cue
Non-Executive
Director
78,387
—
—
—
—
—
78,387
John Galantic
Non-Executive
Director
82,999
—
—
—
—
—
82,999
Maria Patrizia
Grieco
Non-Executive
Director
78,387
—
—
—
—
—
78,387
Adam Keswick
Non-Executive
Director
69,166
—
—
—
—
—
69,166
Mike Volpi
Non-Executive
Director
49,513
—
—
—
—
—
49,513
Total
Non-Executive
Directors
695,058
13,080
—
—
—
—
708,138
Total
2,710,451
38,100
3,939,600
—
230,000
2,873,100
9,791,251
(1)
Relate to car benefits provided to Mr. Vigna, Mr. Elkann and
Mr. Ferrari in accordance with the remuneration policy.
(2)
Certain amounts have been converted from U.S. Dollars
to Euro.
(*) This amount refers to short-term incentives. For information regarding equity-based variable compensation see “Share-based
compensation of executive Directors” below.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
321
BOARD REPORT
The following table shows a comparison of the total remuneration of
Directors over the last five years, based on Ferrari Directors who served
as Directors in 2024.
DIRECTORS’ TOTAL REMUNERATION
2024
2023
2022
2021
2020
Name
Office held
(in €, except otherwise stated)
John Elkann (*)
Executive Chairman and
Executive Director
2,607,804
2,390,679
1,977,195
336,938(1)
77,790
Benedetto Vigna (*)
Chief Executive Officer and
Executive Director
7,983,034
6,692,434
4,993,961
4,486,151(2)
—
Piero Ferrari
Vice Chairman and Non-
Executive Director
94,462
86,857
95,965
81,062
30,041
Sergio Duca
Senior Non-Executive Director
111,445
110,665
114,844
103,238
27,233
Delphine Arnault
Non-Executive Director
74,297
73,777
76,563
68,171
17,020
Francesca Bellettini(3)
Non-Executive Director
78,940
78,387
81,348
73,127
—
Eddy Cue
Non-Executive Director
78,940
78,387
81,348
73,127
19,290
John Galantic(3)
Non-Executive Director
83,584
82,999
86,133
77,429
—
Maria Patrizia Grieco
Non-Executive Director
78,940
78,387
81,348
73,127
19,290
Adam Keswick
Non-Executive Director
69,653
69,166
71,777
64,524
17,020
Mike Volpi
Non-Executive Director
69,653
49,513
—
—
—
Adjusted EBITDA(4) (€ thousand)
2,555
2,279
1,773
1,531
1,143
Average Ferrari Share Price
393.32
275.25
196.34
185.25
155.98
Median fixed remuneration of employees (5)
38,000
37,210
34,960
34,071
32,876
(1)
From January 1, 2021, to September 15, 2021: Chairman,
CEO and Executive Director. From September 16, 2021,
to December 31, 2021: Executive Chairman and Executive
Director.
(2)
Mr. Vigna joined Ferrari as CEO and Executive Director on
September 16, 2021. As a Welcome Bonus for having joined
Ferrari, Mr. Vigna was granted (i) an extraordinary lump
sum of €1,000,000 and (ii) 16,256 Ferrari common shares,
in each case subject to approval by shareholders at the 2022
Annual General Meeting.
(3)
Mrs. Francesca Bellettini and Mr. John Galantic were Non-
Executive Directors from April 16, 2020.
(4)
For additional information relating to this non-IFRS financial
measure, see “Financial Overview—Non-GAAP Financial
Measures—EBITDA and Adjusted EBITDA”.
(5)
This information does not include the “Premio di
Competitività”, which is on top of the fixed remuneration.
(*) For information regarding equity-based variable compensation see “Share-based compensation of executive Directors” below.
SHORT-TERM INCENTIVE
OF EXECUTIVE DIRECTORS
In March 2025, the CEO and the Executive Chairman
will receive the payout of their short-term incentives
for the performance year 2024.
The target setting of Ferrari’s STI has been
defined with a competitive perspective to ensure a
strong focus on economic and financial objectives,
and the target levels have been set higher than the
Guidance 2024 provided to the market. Additionally,
the performance curve established for the CPF
objectives of the STI has a threshold level below
which no incentive payment is made, which is very
close to the Target level, while reaching the Cap level
is more challenging.
Weight %
Actual Payout
Net Revenues
20%
150%
Adj. EBITDA %
20%
137.5%
Adj. Operating profit (EBIT)
20%
150%
Industrial Free Cash Flow
40%
150%
The results of linear interpolation is Company performance factor 2024 = 147.5%
322
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
SHARE-BASED COMPENSATION
OF EXECUTIVE DIRECTORS
The following table provides an overview of the outstanding equity
incentive plans provided to Ferrari executive Directors in 2024:
Name,
position
Main conditions of share award plans
Movements in share awards during 2024
Plan
Performance
period
Grant
date
Vesting
date
Number of
unvested
awards at
January 1,
2024
New
awards
granted
Shares
vested
Awards
forfeited
/other
Number of
unvested
awards at
December
31, 2024
of which are
subject to
performance
conditions
John
Elkann,
Executive
Chairman
Equity
Incentive
Plan 2021-
2023
2021 - 2023
April
2021
March
2024
4,448
—
5,100(1)
—
—
—
Equity
Incentive
Plan 2022-
2024
2022 - 2024
April
2022
March
2025
5,042
—
—
—
5,042
5,042
Equity
Incentive
Plan 2023-
2025
2023 - 2025
April
2023
March
2026
4,170
—
—
—
4,170
4,170
Equity
Incentive
Plan 2024-
2026
2024 - 2026
April
2024
March
2027
—
2,925
—
—
2,925
2,925
Benedetto
Vigna,
Chief
Executive
Officer
Equity
Incentive
Plan 2022-
2024
2022 - 2024
April
2022
March
2025
15,126
—
—
—
15,126
15,126
Equity
Incentive
Plan 2023-
2025
2023 - 2025
April
2023
March
2026
12,510
—
—
—
12,510
12,510
Equity
Incentive
Plan 2024-
2026
2024 - 2026
April
2024
March
2027
—
8,775
—
—
8,775
8,775
(1)
The number of shares vested was greater than the number of awards granted as a result of the level of achievement of the related
service conditions.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
323
BOARD REPORT
In March 2024, 3,617 PSUs and 1,483 RSUs held by the Executive Chairman
under the Equity Incentive Plan 2021-2023 vested. The evidence of the
level of achievement of the KPIs relating to the PSUs is summarized in the
following table:
In March 2025, the Equity Incentive Plan 2022-2024 will vest and the evidence
of the level of the achievement is summarized in the following table:
Threshold, Target and Maximum are presented in the “Equity Incentive
Plan 2022-2024” paragraph.
EVIDENCE OF THE LEVEL OF THE ACHIEVEMENT
KPY
Relative TSR
(weight 50%)
2nd place positioning in the TSR
ranking against the Peer Group
Payout 120%
60%
EBITDA
(weight 30%)
+11.2% vs 5 years plan
Innovation
(weight 20%)
Achievement of launches (70%)
of the Innovation Factor and
technological projects (30%)
of the Innovation Factor
Actual performance
Pay-out
Payout 140%
Payout 100%
42%
20%
122%
PSU total pay-out
EVIDENCE OF THE LEVEL OF THE ACHIEVEMENT
KPY
Relative TSR
(weight 40%)
1st place positioning in the TSR
ranking against the Peer Group
Payout 175%
70%
EBITDA
(weight 40%)
+14.3% vs 5 years plan
Innovation
(weight 20%)
Achievement of launches (70%)
of the Innovation Factor and
technological projects (30%)
of the Innovation Factor
Actual performance
Pay-out
Payout 171.3%
Payout 50%
68.5%
10%
148.5%
PSU total pay-out
324
BOARD REPORT
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
COMPENSATION OF THE MEMBERS OF THE FLT
The compensation paid to or accrued during the
year ended December 31, 2024 by Ferrari and its
subsidiaries to the members of the FLT (excluding
the CEO) amounted to €29.3 million in aggregate,
consisting of €14.3 million for salary and €8.8 mil-
lion for other short-term benefits (which is linked
to the FY 2024 performance and represents slight-
ly more than the target set levels), €5.5 million for
share-based compensation in relation to PSUs and
RSUs awarded under the Group’s Equity Incentive
Plans (2022-2024; 2023-2025; 2024-2026) and other
share-based awards, and €0.7 million for the Group’s
contributions to pension funds. The PSU and RSU
awards will vest in March 2025, 2026 and 2027 (as ap-
plicable), subject to continued employment and, for
the PSU awards, to the achievement of performance
conditions related to relative TSR, Adjusted EBITDA
and ESG-related Factor Goal (for LTI Plan 2022-2024,
2023-2025 and 2024-2026), as described above.
Given: (i) Ferrari’s second place positioning in the
TSR ranking against the Peer Group (correspond-
ing to the vesting of 120 percent of the target PSUs
awarded); (ii) the result of the Adjusted EBITDA factor
payout (+11.2% vs 5-years plan) and (iii) the achieve-
ment of Innovation Factor (100%), for the vesting of
the Equity Incentive Plan 2021-2023, which covers
the performance period from 2021 to 2023, ending
on December 31, 2023, 12,028 PSUs and 6,969 RSUs
vested for FLT members.
DIRECTOR AND OFFICER OVERLAPS
There are overlaps among certain Directors and of-
ficers of Stellantis and Exor and our Directors and of-
ficers. These individuals owe duties both to us and to
the other companies that they serve as officers and/
or Directors. This may raise certain conflicts of inter-
est as, for example, these individuals review oppor-
tunities that may be appropriate or suitable for both
Ferrari and such other companies, or business trans-
actions are pursued in which both Ferrari and such
other companies have an interest, such as Ferrari’s
arrangement, now terminated, to supply engines
for Maserati cars. For example, Mr. John Elkann, our
Executive Chairman, is also the Executive Chairman
of Stellantis and the Chief Executive Officer of Exor.
As of February 6, 2025, Exor held approximately
24.84 percent of our outstanding common shares
and approximately 36.69 percent of the voting pow-
er in the Company, while it holds approximately
14.90 percent of the outstanding common shares in
Stellantis, based on Exor’s latest public filings avail-
able. The percentages of ownership and voting pow-
er above are calculated based on the number of
outstanding shares net of treasury shares. See “Risk
Factors—Risks related to our Common Shares—We
may have potential conflicts of interest with Stellantis
and Exor and its related companies”.
CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
Under the supervision, and with the participation,
of our management, including our Chief Executive
Officer and Chief Financial Officer, we conducted
an evaluation of the effectiveness of our disclosure
controls and procedures as of December 31, 2024
pursuant to Exchange Act Rule 13a-15(b). Based on
that evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure con-
trols and procedures are effective to provide rea-
sonable assurance that information required to be
disclosed in our Exchange Act filings is recorded,
processed, summarized and reported within the
time periods specified in the SEC’s rules and forms
and that such information is accumulated and com-
municated to our management, including our Chief
Executive Officer and Chief Financial Officer, as ap-
propriate, to allow timely decisions regarding re-
quired disclosure.
MANAGEMENT’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
The Company’s management is responsible for es-
tablishing and maintaining adequate internal control
over financial reporting. The Company’s internal
control system was designed to provide reasonable
assurance regarding the preparation and fair pre-
sentation of published financial statements in accor-
dance with IFRS Accounting Standards.
All internal control systems, no matter how well
designed, have inherent limitations. Therefore, even
those systems determined to be effective can pro-
vide only reasonable assurance with respect to
financial statement preparation and presentation in
accordance with IFRS Accounting Standards.
Management assessed the effectiveness of the
Company’s internal control over financial reporting
as of December 31, 2024, using the criteria set forth
in the “Internal Control - Integrated Framework
(2013)” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
Based on that assessment, management believes
that, as of December 31, 2024, the Company’s inter-
nal control over financial reporting was effective.
The Company’s independent registered public
accounting firm has issued an audit report on the
effectiveness of the Company’s internal control over
financial reporting. That report is included herein.
CHANGES IN INTERNAL CONTROL
No change to our internal control over financial re-
porting occurred during the year ended December
31, 2024 that has materially affected, or is reason-
ably likely to materially affect, our internal control
over financial reporting.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
327
BOARD REPORT
STATEMENT BY THE BOARD OF DIRECTORS
Based on the assessment performed, the Board of Directors believes
that, as of December 31, 2024, the Group’s and the Company’s Internal
Control over Financial Reporting is considered effective and that
(i) the Board Report provides sufficient insights into any material
weaknesses in the effectiveness of the internal risk management and
control systems (please refer to section “Principal Characteristics
of the Internal Control System and Internal Control over Financial
Reporting” of this Annual Report), (ii) the internal risk management and
control systems are designed to provide reasonable assurance that the
financial reporting does not contain any material inaccuracies (please
refer to section “Principal Characteristics of the Internal Control System
and Internal Control over Financial Reporting” of this Annual Report), (iii)
based on the current state of affairs, it is justified that the Group’s and
the Company’s financial reporting is prepared on a going concern basis
(please refer to Note 1 to the Consolidated Financial Statements of this
Annual Report and Note 2 to the Company Financial Statements of this
Annual Report for additional information on the basis of preparation),
and (iv) the Board Report states those material risks and uncertainties
that are, in the Board of Director’s judgment, relevant to the expectation
of the Company’s continuity for the period of twelve months after the
preparation of the Board Report (please refer to the chapter “Risk
Factors” of this Annual Report).
February 20, 2025
John Elkann
[Executive Chairman]
Benedetto Vigna
[Chief Executive Officer]
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329
FINANCIAL
STATEMENTS
331
CONSOLIDATED
FINANCIAL
STATEMENTS
Consolidated Income
333
Statement
Consolidated Statement
334
of Comprehensive Income
Consolidated Statement
335
of Financial Position
Consolidated Statement
336
of Cash Flows
Consolidated Statement
338
of Changes In Equity
Notes to the Consolidated
340
Financial Statements
FINANCIAL STATEMENTS
333
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
CONSOLIDATED INCOME STATEMENT
FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
For the years ended December 31,
Note
2024
2023
2022
(€ thousand)
Net revenues
4
6,676,668
5,970,146
5,095,254
Cost of sales
5
3,329,483
2,995,877
2,648,953
Selling, general and administrative costs
6
561,144
462,580
427,974
Research and development costs
7
894,092
881,559
775,572
Other expenses, net
8
12,443
18,898
21,548
Result from investments
8,245
6,137
6,175
Operating profit (EBIT)
1,887,751
1,617,369
1,227,382
Financial income
9
147,100
132,319
83,858
Financial expenses
9
145,895
147,334
133,474
Financial (income)/expenses, net
9
(1,205)
15,015
49,616
Profit before taxes
1,888,956
1,602,354
1,177,766
Income tax expense
10
363,043
344,897
238,472
Net profit
1,525,913
1,257,457
939,294
Net profit attributable to:
Owners of the parent
1,521,877
1,252,048
932,614
Non-controlling interests
3
4,036
5,409
6,680
Basic earnings per common share (in €)
12
8.47
6.91
5.11
Diluted earnings per common share (in €)
12
8.46
6.90
5.09
The accompanying notes are an integral part of the Consolidated
Financial Statements.
334
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
For the years ended December 31,
Note
2024
2023
2022
(€ thousand)
Net profit
1,525,913
1,257,457
939,294
Items that will not be reclassified to the consolidated income statement in
subsequent periods:
(Losses)/Gains on remeasurement of defined benefit plans
20
(691)
221
1,605
Related tax impact
20
168
(52)
(376)
Total items that will not be reclassified to the consolidated
income statement in subsequent periods
(523)
169
1,229
Items that may be reclassified to the consolidated income statement in
subsequent periods:
(Losses)/Gains on cash flow hedging instruments
20
(86,810)
(26,284)
92,898
Exchange differences on translating foreign operations
20
12,248
(6,323)
9,798
Related tax impact
20
23,610
6,403
(24,626)
Total items that may be reclassified to the consolidated
income statement in subsequent periods
(50,952)
(26,204)
78,070
Total other comprehensive (loss)/income, net of tax
(51,475)
(26,035)
79,299
Total comprehensive income
1,474,438
1,231,422
1,018,593
Total comprehensive income attributable to:
Owners of the parent
1,470,092
1,226,428
1,012,215
Non-controlling interests
4,346
4,994
6,378
The accompanying notes are an integral part of the Consolidated
Financial Statements.
335
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT DECEMBER 31, 2024 AND 2023
At December 31,
Note
2024
2023
(€ thousand)
Assets
Goodwill
13
785,182
785,182
Intangible assets
14
1,545,664
1,419,699
Property, plant and equipment
15
1,828,784
1,575,200
Investments and other financial assets
16
80,822
67,671
Deferred tax assets
10
236,791
217,553
Total non-current assets
4,477,243
4,065,305
Inventories
17
1,088,194
948,514
Trade receivables
18
349,176
261,380
Receivables from financing activities
18
1,661,632
1,451,158
Tax receivables
18
15,918
11,616
Other current assets
18
137,763
130,228
Current financial assets
19
25,006
61,130
Cash and cash equivalents
32
1,742,214
1,121,981
Total current assets
5,019,903
3,986,007
Total assets
9,497,146
8,051,312
Equity and liabilities
Equity attributable to owners of the parent
3,533,946
3,060,888
Non-controlling interests
3
9,292
9,734
Total equity
20
3,543,238
3,070,622
Employee benefits
22
134,147
123,045
Provisions
23
206,212
187,276
Deferred tax liabilities
10
110,016
136,846
Debt
24
3,351,888
2,477,186
Other liabilities
25
1,106,221
1,022,967
Other financial liabilities
19
61,894
13,539
Trade payables
26
945,657
930,560
Tax payables
37,873
89,271
Total equity and liabilities
9,497,146
8,051,312
The accompanying notes are an integral part of the Consolidated
Financial Statements.
336
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
For the years ended December 31,
Note
2024
2023
2022
(€ thousand)
Cash and cash equivalents at the beginning of the year
32
1,121,981
1,388,901
1,344,146
Cash flows from operating activities:
Net profit
1,525,913
1,257,457
939,294
Income tax expense
10
363,043
344,897
238,472
Amortization and depreciation
14,15
666,777
662,305
546,225
Provision accruals
23
81,546
64,834
72,331
Result from investments
(8,245)
(6,137)
(6,175)
Financial income
9
(147,100)
(132,319)
(83,858)
Financial expenses
9
145,895
147,334
133,474
Other non-cash expenses, net
32
91,909
79,813
46,653
Change in inventories
17
(157,526)
(309,564)
(153,890)
Change in trade receivables
18
(94,029)
(33,381)
(48,400)
Change in trade payables
26
7,672
43,277
103,981
Change in receivables from financing activities
27
(118,687)
(107,247)
(187,890)
Change in other operating assets and liabilities
(20,045)
48,642
140,008
Finance income received
9
49,673
32,432
5,158
Finance costs paid
9
(50,354)
(83,243)
(37,351)
Income tax paid
10
(409,786)
(292,463)
(304,692)
Total cash flows from operating activities
1,926,656
1,716,637
1,403,340
Cash flows used in investing activities:
Investments in intangible assets
14
(506,874)
(487,148)
(456,894)
Investments in property, plant and equipment
15
(482,277)
(381,762)
(347,725)
Investments in joint ventures
—
—
(1,367)
Proceeds from the sale of property, plant and equipment and intangible assets
14,15
2,041
2,458
578
Total cash flows used in investing activities
(987,110)
(866,452)
(805,408)
Cash flows used in financing activities:
Proceeds from bonds and notes
24
496,145
—
—
Repayments of bonds and notes
24
—
(575,702)
—
Proceeds from securitizations
24
340,499
151,217
218,924
Repayments of securitizations
24
(243,649)
(49,611)
(72,824)
Proceeds from borrowings from banks and other financial institutions
24
225,000
250,000
8,909
Repayments of borrowings from banks and other financial institutions
24
(104,690)
(72,500)
(55,000)
Proceeds from other debt
24
51,022
34,596
34,456
Repayments of other debt
24
(41,297)
(35,566)
(23,215)
Repayments of lease liabilities
24
(22,001)
(17,691)
(16,500)
Dividends paid to owners of the parent
20
(439,918)
(328,631)
(249,522)
Dividends paid to non-controlling interests
20
(4,788)
(4,890)
(2,266)
337
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Share repurchases
20
(581,084)
(460,629)
(396,522)
Total cash flows used in financing activities
(324,761)
(1,109,407)
(553,560)
Translation exchange differences
5,448
(7,698)
383
Total change in cash and cash equivalents
620,233
(266,920)
44,755
Cash and cash equivalents at the end of the year
32
1,742,214
1,121,981
1,388,901
The accompanying notes are an integral part of the Consolidated
Financial Statements.
338
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
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
equity
(€ thousand)
At December 31, 2021
2,573
2,192,453
(22,006)
42,518
(9,640)
2,205,898
5,518
2,211,416
Net profit
—
932,614
—
—
—
932,614
6,680
939,294
Other comprehensive
income/(loss)
—
—
68,272
10,100
1,229
79,601
(302)
79,299
Total comprehensive
income
—
932,614
68,272
10,100
1,229
1,012,215
6,378
1,018,593
Dividends to owners
of the parent
—
(249,522)
—
—
—
(249,522)
—
(249,522)
Dividends to non-controlling
interests
—
—
—
—
—
—
(2,266)
(2,266)
Share repurchases
—
(396,522)
—
—
—
(396,522)
—
(396,522)
Share-based compensation
—
20,860
—
—
—
20,860
—
20,860
Other movements
—
(112)
(33)
—
73
(72)
—
(72)
At December 31, 2022
2,573
2,499,771
46,233
52,618
(8,338)
2,592,857
9,630
2,602,487
Net profit
—
1,252,048
—
—
—
1,252,048
5,409
1,257,457
Other comprehensive
(loss)/income
—
—
(19,881)
(5,908)
169
(25,620)
(415)
(26,035)
Total comprehensive
income
—
1,252,048
(19,881)
(5,908)
169
1,226,428
4,994
1,231,422
Dividends to owners of the
parent
—
(328,631)
—
—
—
(328,631)
—
(328,631)
Dividends to non-controlling
interests
—
—
—
—
—
—
(4,890)
(4,890)
Share repurchases
—
(460,629)
—
—
—
(460,629)
—
(460,629)
Share-based compensation
—
30,863
—
—
—
30,863
—
30,863
At December 31, 2023
2,573
2,993,422
26,352
46,710
(8,169)
3,060,888
9,734
3,070,622
Net profit
—
1,521,877
—
—
—
1,521,877
4,036
1,525,913
Other comprehensive
(loss)/income
—
—
(63,200)
11,938
(523)
(51,785)
310
(51,475)
Total comprehensive
income
—
1,521,877
(63,200)
11,938
(523)
1,470,092
4,346
1,474,438
Dividends to owners
of the parent
—
(439,918)
—
—
—
(439,918)
—
(439,918)
Dividends to non-controlling
interests
—
—
—
—
—
—
(4,788)
(4,788)
Share repurchases
—
(581,084)
—
—
—
(581,084)
—
(581,084)
Share-based compensation
—
23,968
—
—
—
23,968
—
23,968
Other movements
—
(7)
—
—
7
—
—
—
At December 31, 2024
2,573
3,518,258
(36,848)
58,648
(8,685)
3,533,946
9,292
3,543,238
The accompanying notes are an integral part of the Consolidated
Financial Statements.
340
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(1)
BACKGROUND AND BASIS OF
PREPARATION
BACKGROUND
Ferrari is among the world’s leading luxury brands.
The activities of Ferrari N.V. (herein referred to as
“Ferrari” or the “Company” and together with its sub-
sidiaries the “Group”) are focused on the design, engi-
neering, production and sale of luxury performance
sports cars. The cars are designed, engineered and
produced in Maranello and Modena, Italy and sold in
approximately 60 markets worldwide through a net-
work of 180 authorized dealers operating 200 points
of sale. The Ferrari brand is licensed to a selected
number of producers and retailers of luxury and
lifestyle goods, with Ferrari branded merchandise
also sold through a network of 15 Ferrari-owned di-
rectly operated stores and 2 franchised stores (as of
December 31, 2024), as well as on Ferrari’s website.
To facilitate the sale of new and pre-owned cars, the
Group provides various forms of financing to clients,
as well as to dealers in certain territories, directly or
through cooperation or other agreements with finan-
cial institutions. Ferrari also participates in the Formula
1 World Championship through its team Scuderia
Ferrari and the World Endurance Championship
through its Ferrari endurance teams. Ferrari’s racing
activities are a core element of Ferrari marketing and
promotional activities, as well as an important source
of innovation to support the technological advance-
ment of Ferrari’s product portfolio.
BASIS OF PREPARATION
Authorization of consolidated financial statements
and compliance with International Financial Reporting
Standards
These
consolidated
financial
statements
of
Ferrari N.V. were authorized for issuance by the
Board of Directors on February 20, 2025.
The consolidated financial statements have been
prepared in accordance with the IFRS® Accounting
Standards (“IFRS Accounting Standards”) as issued
by the International Accounting Standards Board
(“IASB”) as well as IFRS Accounting Standards as
adopted by the European Union (references to IFRS
Accounting Standards refer to both IFRS Accounting
Standards as issued by the IASB and IFRS Accounting
Standards as adopted by the European Union, unless
specified otherwise). There is no effect on these
consolidated financial statements resulting from
differences between IFRS Accounting Standards as
issued by IASB and IFRS Accounting Standards as
adopted by the European Union. The designation IFRS
Accounting Standards also includes International
Accounting Standards (“IAS® Standards”) as well
as the interpretations of the International Financial
Reporting
Interpretations
Committee
(“IFRIC®
Interpretations’” and “SIC® Interpretations”).
The consolidated financial statements are pre-
pared on a going concern basis and applying the
historical cost method, modified as required by IFRS
Accounting Standards for the measurement of cer-
tain financial instruments, which are generally mea-
sured at fair value.
The
Group’s
presentation
currency
is
the
Euro, which is also the functional currency of the
Company, and unless otherwise stated amounts are
presented in thousands of Euro.
(2)
MATERIAL ACCOUNTING POLICIES
FORMAT OF THE FINANCIAL STATEMENTS
The consolidated financial statements include the
consolidated income statement, consolidated state-
ment of comprehensive income, consolidated state-
ment of financial position, consolidated statement
of cash flows, consolidated statement of changes in
equity and the accompanying notes (referred to col-
lectively as the “Consolidated Financial Statements”).
For presentation of the consolidated income
statement, the Group uses a classification based on
the function of expenses, as it is more representa-
tive of the format used for internal reporting and
management purposes and is consistent with inter-
national practice. In the consolidated income state-
ment, the Group presents a subtotal for its operating
profit before interest and taxes which is referred to
as operating profit (EBIT). Operating profit (EBIT) dis-
tinguishes between the profit before taxes arising
from operating items and those arising from financ-
ing activities. Operating profit (EBIT) is one of the
primary measures used by the Board of Directors
(the Group’s “Chief Operating Decision Maker” as
defined in IFRS 8 — Operating Segments) to assess
performance and allocate resources.
For presentation of the consolidated statement of
financial position, a mixed format has been selected
to present current and non-current assets and lia-
bilities, as permitted by IAS 1 paragraph 60. More
specifically, the Consolidated Financial Statements
include both industrial and financial services activ-
ities. Receivables from financing activities are
included in current assets as the investments will be
realized in their normal operating cycle. The funding
for financial services activities is primarily obtained
through securitization programs and funding from
certain of the Group’s operating companies. This
financial service structure within the Group does
341
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
not allow the separation of financial liabilities fund-
ing the financial services operations (whose assets
are reported within current assets) and those fund-
ing the industrial operations. Presentation of finan-
cial liabilities as current or non-current based on
their date of maturity would not facilitate a meaning-
ful comparison with financial assets, which are cate-
gorized on the basis of their normal operating cycle.
Disclosure as to the due date of the various compo-
nents of debt is provided in Note 24.
The consolidated statement of cash flows is
presented using the indirect method with cash
flows classified within operating, investing or
financing activities.
NEW AMENDMENTS EFFECTIVE FROM
JANUARY 1, 2024
The following new amendments effective from
January 1, 2024 were adopted by the Group for
the preparation of these Consolidated Financial
Statements.
In January 2020 IASB issued amendments
to IAS 1 — Presentation of Financial Statements:
Classification of Liabilities as Current or Non-Current
to clarify how to classify debt and other liabilities
as current or non-current, and in particular how to
classify liabilities with an uncertain settlement date
and liabilities that may be settled by converting to
equity. There was no effect from the adoption of
these amendments.
In September 2022 IASB issued amendments to
IFRS 16 — Leases: Liability in a Sale and Leaseback
to improve the requirements for sale and leaseback
transactions, which specify the measurement of the
liability arising in a sale and leaseback transaction,
to ensure the seller-lessee does not recognize any
amount of the gain or loss that relates to the right of
use it retains. There was no effect from the adoption
of these amendments.
In October 2022 IASB issued amendments to
IAS 1 — Presentation of Financial Statements: Non-
current Liabilities with Covenants, that clarify how
conditions with which an entity must comply within
twelve months after the reporting period affect the
classification of a liability. There was no effect from
the adoption of these amendments.
In
May
2023
IASB
issued
amendments
to
IAS 7 — Statement of Cash Flows and IFRS 7 —
Financial Instruments: Disclosures: Supplier Finance
Arrangements,
that
introduce
new
disclosure
requirements to enhance the transparency and use-
fulness of the information provided by entities about
supplier finance arrangements and are intended to
assist users of financial statements in understand-
ing the effects of supplier finance arrangements
on an entity’s liabilities, cash flows and exposure to
liquidity risk. There was no effect from the adoption
of these amendments.
NEW STANDARDS AND AMENDMENTS
NOT YET EFFECTIVE
The standards and amendments issued by IASB that
will have mandatory application in 2025 or subse-
quent years are listed below:
In August 2023, IASB issued amendments to IAS
21 — The Effects of Changes in Foreign Exchange
Rates: Lack of Exchangeability, to clarify how an
entity has to apply a consistent approach to assess-
ing whether a currency is exchangeable into another
currency and, when it is not, to determine the
exchange rate to use and the disclosures to provide.
The amendments are effective on or after January
1, 2025. The Group does not expect any material
impact from the adoption of these amendments.
In April 2024, IASB issued IFRS 18 — Presentation
and Disclosure in Financial Statements, which intro-
duces new concepts relating to: (i) the structure of the
statement of profit or loss, (ii) required disclosures
in the financial statements for certain profit or loss
performance measures that are reported outside an
entity’s financial statements (management-defined
performance measures), and (iii) enhanced princi-
ples on aggregation and disaggregation which apply
to the primary financial statements and notes in gen-
eral. The standard is effective on or after January 1,
2027. The Group is evaluating the potential impact
from the adoption of this standard.
In May 2024, IASB issued IFRS 19 — Subsidiaries
without Public Accountability: Disclosures, which
permits eligible subsidiaries to use IFRS Accounting
Standards with reduced disclosures better suited to
the needs of the users of their financial statements,
as well as to keep only one set of accounting records
to meet the needs of both their parent company and
the users of their financial statements. The standard
is effective on or after January 1, 2027 and earlier
application is permitted. The Group does not expect
any impact from the adoption of this standard.
In
May
2024,
IASB
issued
Amendments
to
the Classification and Measurement of Financial
Instruments which amended IFRS 9 — Financial
Instruments and IFRS 7 — Financial Instruments:
Disclosures, with the aim of addressing diversity in
practice by making the requirements more under-
standable and consistent. The amendments: (a) clarify
the date of recognition and derecognition of certain
financial assets and liabilities, with a new exception
for certain financial liabilities settled through an
electronic cash transfer system to be derecognized
before the settlement date if certain criteria are met;
(b) clarify and add further guidance for assessing
whether a financial asset meets the solely payments
of principal and interest (SPPI) criterion; (c) add new
disclosures for certain instruments with contractual
terms that can change cash flows (such as certain
instruments with features linked to the achievement
of environment, social and governance (ESG) targets);
and (d) update the disclosures for equity instruments
designated at fair value through other comprehen-
sive income (FVOCI). The amendments are effective
342
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
on or after January 1, 2026 and earlier application
is permitted. The Group is evaluating the potential
impact from the adoption of these amendments.
In July 2024, IASB issued Annual Improvements
to IFRS Accounting Standards — Volume 11 which
contains amendments to five standards as result of
IASB’s annual improvements project. IASB uses the
annual improvements process to make necessary,
but non-urgent, amendments to IFRS Accounting
Standards that will not be included as part of another
major project. The amended standards are: IFRS
1 — First-time Adoption of International Financial
Reporting Standards, IFRS 7 — Financial Instruments:
Disclosures and its accompanying Guidance on imple-
menting IFRS 7; IFRS 9 — Financial Instruments; IFRS
10 — Consolidated Financial Statements; and IAS 7 —
Statement of Cash Flows. The amendments are effec-
tive on or after January 1, 2026 and earlier application
is permitted. The Group is evaluating the potential
impact from the adoption of these amendments.
In December 2024, IASB issued Amendments
for nature-dependent electricity contracts which
amended IFRS 9 — Financial Instruments and IFRS 7
— Financial Instruments: Disclosures to help compa-
nies better report the financial effects of nature-de-
pendent electricity contracts, which are often struc-
tured as power purchase agreements (PPAs), in the
light of the increased use of these contracts. The
amendments are effective on or after January 1,
2026 and earlier application is permitted. The Group
is evaluating the potential impact from the adoption
of these amendments.
BASIS OF CONSOLIDATION
SUBSIDIARIES
Subsidiaries are entities over which the Group
has control. Control is achieved when the Group
has power over the investee, when it is exposed to,
or has rights to, variable returns from its involve-
ment with the investee, and has the ability to use its
power over the investee to affect the amount of the
investor’s returns. Subsidiaries are consolidated on
a line by line basis from the date on which the Group
achieves control. The Group reassesses whether or
not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the
three elements of control listed above.
The Group recognizes any non-controlling inter-
ests (“NCI”) in the acquiree on an acquisition-by-ac-
quisition basis, either at fair value or at the non-con-
trolling interest’s share of the recognized amounts
of the acquiree’s identifiable net assets. Net profit
or loss and each component of other comprehen-
sive income/(loss) are attributed to the owners
of the parent and to the non-controlling interests.
Total comprehensive income/(loss) of subsidiar-
ies is attributed to owners of the parent and to the
non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
All intra-group balances and transactions and
any unrealized gains and losses arising from in-
tra-group transactions are eliminated in preparing
the Consolidated Financial Statements.
Subsidiaries are deconsolidated from the date
when control ceases. When the Group ceases to
have control over a subsidiary, it derecognizes the
assets (including any goodwill) and liabilities of the
subsidiary at their carrying amounts, derecognizes
the carrying amount of non-controlling interests in
the former subsidiary and recognizes the fair value
of any consideration received from the transaction.
Any retained interest in the former subsidiary is then
remeasured to its fair value.
INTERESTS IN ASSOCIATE
An associate is an entity over which the Group has
significant influence. Significant influence is the pow-
er to participate in the financial and operating policy
decisions of the investee but without having control
or joint control over those policies. Associates are
accounted for using the equity method of account-
ing from the date significant influence is obtained.
Under the equity method, the investments are
initially recognized at cost and adjusted thereafter to
recognize the Group’s share of the profit/(loss) and
other comprehensive income/(loss) of the investee.
The Group’s share of the investee’s profit/(loss) is
recognized in the consolidated income statement.
Distributions received from an investee reduce the
carrying amount of the investment. Post-acquisition
movements in other comprehensive income/(loss)
are recognized in other comprehensive income/
(loss) with a corresponding adjustment to the carry-
ing amount of the investment.
Unrealized gains on transactions between the
Group and its associates are eliminated to the extent
of the Group’s interest in the associate. Unrealized
losses are also eliminated unless the transaction
provides evidence of an impairment of the asset
transferred.
When the Group’s share of the losses of an asso-
ciate exceeds the Group’s interest in that associate,
the Group discontinues recognizing its share of fur-
ther losses. Additional losses are provided for, and
a liability is recognized, only to the extent that the
Group has incurred legal or constructive obliga-
tions or made payments on behalf of the associate.
The Group discontinues the use of the equity
method from the date the investment ceases to be an
associate or when it is classified as available-for-sale.
INTERESTS IN JOINT OPERATIONS
A joint operation is a joint arrangement whereby the
parties that have joint control of the arrangement
have rights to the assets and obligations for the lia-
bilities, relating to the arrangement. Joint control is
the contractually agreed sharing of control of an ar-
rangement, which exists only when decisions about
the relevant activities require the unanimous con-
sent of the parties sharing control.
343
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
When the Group undertakes its activities under joint
operations, it recognizes in relation to its interest in
the joint operation: (i) its assets, including its share
of any assets held jointly, (ii) its liabilities, including its
share of any liabilities incurred jointly, (iii) its revenue
from the sale of its share of the output arising from
the joint operation, (iv) its share of the revenue from
the sale of the output by the joint operation, and
(v) its expenses, including its share of any expenses
incurred jointly.
FOREIGN CURRENCY TRANSACTIONS
The functional currency of the Group’s entities is the
currency of their primary economic environment. In
individual companies, transactions in foreign curren-
cies are recorded at the exchange rate prevailing at
the date of the transaction. Monetary assets and liabil-
ities denominated in foreign currencies at the balance
sheet date are translated at the foreign currency ex-
change rate prevailing at that date. Exchange differ-
ences arising on the settlement of monetary items or
on reporting monetary items at rates different from
those at which they were initially recorded during the
period or in previous financial statements are recog-
nized in the consolidated income statement.
CONSOLIDATION OF FOREIGN ENTITIES
All assets and liabilities of foreign consolidated com-
panies with a functional currency other than the
Euro are translated using the closing rates at the
date of the consolidated statement of financial posi-
tion. Income and expenses are translated into Euro
at the average foreign currency exchange rate for
the period. Translation differences resulting from
the application of this method are classified as cur-
rency translation differences within other compre-
hensive income/(loss) until the disposal of the invest-
ment. Average foreign currency exchange rates for
the period are used to translate the cash flows of
foreign subsidiaries in preparing the consolidated
statement of cash flows.
Goodwill, assets acquired and liabilities assumed
arising from the acquisition of entities with a func-
tional currency other than the Euro are recognized
in the Consolidated Financial Statements in the
functional currency and translated at the foreign
currency exchange rate at the acquisition date.
These balances are translated at subsequent bal-
ance sheet dates at the relevant foreign currency
exchange rate.
The principal foreign currency exchange rates used to translate other
currencies into Euro were as follows:
2024
2023
2022
Average
At December 31,
Average
At December 31,
Average
At December 31,
U.S. Dollar
1.0824
1.0389
1.0814
1.1050
1.0530
1.0666
Pound Sterling
0.8466
0.8292
0.8699
0.8691
0.8528
0.8869
Swiss Franc
0.9526
0.9412
0.9717
0.9260
1.0047
0.9847
Japanese Yen
163.8519
163.0600
151.8540
156.3300
138.0274
140.6600
Chinese Yuan
7.7875
7.5833
7.6568
7.8509
7.0788
7.3582
Australian Dollar
1.6397
1.6772
1.6283
1.6263
1.5167
1.5693
Singapore Dollar
1.4458
1.4164
1.4521
1.4591
1.4512
1.4300
Canadian Dollar
1.4821
1.4948
1.4595
1.4642
1.3695
1.4440
Hong Kong Dollar
8.4454
8.0686
8.4663
8.6314
8.2451
8.3163
INTANGIBLE ASSETS
GOODWILL
Goodwill is not amortized, but is tested for impair-
ment annually or more frequently if events or chang-
es in circumstances indicate that it might be im-
paired. After initial recognition, goodwill is measured
at cost less any accumulated impairment losses.
DEVELOPMENT COSTS
Development costs for car project production and
related components, engines and systems are rec-
ognized as an asset if, and only if, the required con-
ditions under IAS 38 — Intangible Assets are met,
including, among others: (i) that development costs
can be measured reliably, (ii) that the technical fea-
sibility of the product, volumes and pricing support
the view that the development expenditure will gen-
erate future economic benefits, and (iii) the Group
has the intention to complete the development and
the ability to use the intangible asset. Capitalized de-
velopment costs include all direct and indirect costs
that may be directly attributed to the development
process. All other research and development costs
are expensed as incurred, net of any government
grants received.
344
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Capitalized development costs are amortized on a
straight-line basis from the start of production over
the estimated lifecycle of the model or the useful life
of the related components or other assets (general-
ly between four and eight years). Increasing an as-
set’s expected lifecycle or its residual value would
result in a reduced amortization charge in the con-
solidated income statement.
The Group incurs significant research and devel-
opment costs also for its Formula 1 racing activ-
ities. These costs are considered fundamental to
the development of the road and track car models
and prototypes. Technological developments and
changes in the regulations of the Formula 1 World
Championship generally require the Group to design,
develop and construct a new racing car to be used
for one year only. The costs incurred for the design,
development and construction of a new racing car
are generally expensed as incurred unless the tech-
nology will be used for more than one year and the
costs meet the capitalization criteria in IAS 38.
PATENTS, CONCESSIONS AND LICENSES
Separately acquired patents, concessions and li-
censes are initially recognized at cost. Patents,
concessions and licenses acquired in a business
combination are initially recognized at fair value.
Patents, concessions and licenses are amortized on
a straight-line basis over their useful economic lives,
which is generally between three and five years.
OTHER INTANGIBLE ASSETS
Other intangible assets mainly relate to the regis-
tration of trademarks and have been recognized in
accordance with IAS 38 — Intangible Assets, where
it is probable that the use of the asset will generate
future economic benefits for the Group and where
the cost of the asset can be measured reliably. Other
intangible assets are measured at cost less any im-
pairment losses and amortized on a straight-line
basis over their estimated life, which is generally be-
tween three and five years.
PROPERTY, PLANT AND EQUIPMENT
COST
Property, plant and equipment is initially recognized
at cost which comprises the purchase price, any
costs directly attributable to bringing the assets to
the location and condition necessary to be capable
of operating in the manner intended by manage-
ment, capitalized borrowing costs and any initial es-
timate of the costs of dismantling and removing the
item and restoring the site on which it is located. Self-
constructed assets are initially recognized at pro-
duction cost. Subsequent expenditures and the cost
of replacing parts of an asset are capitalized only if
they increase the future economic benefits embod-
ied in that asset. All other expenditures are expensed
as incurred. When such replacement costs are cap-
italized, the carrying amount of the parts that are
replaced is recognized as a loss in the period of re-
placement in the consolidated income statement.
DEPRECIATION
Depreciation is calculated on a straight-line basis over the estimated
useful lives of the assets, as follows:
Depreciation rates
Industrial buildings
3% - 20%
Plant, machinery and equipment
5% - 22%
Other assets
12% - 25%
Land is not depreciated. If the asset being depreciated consists of separately
identifiable components whose useful lives differ from that of the other
parts making up the asset, depreciation is charged separately for each of
its component parts through application of the “component approach”.
LEASES
The Group recognizes a right-of-use asset and a corre-
sponding lease liability at the date at which the leased
asset is available for use. Each lease payment is allo-
cated between the principal liability and finance costs.
Finance costs are charged to the consolidated income
statement over the lease period using the effective in-
terest rate method. The right-of-use asset is depreciat-
ed on a straight-line basis over the lease term.
Right-of-use assets are measured at cost compris-
ing the following: (i) the amount of the initial measure-
ment of lease liability; (ii) any lease payments made
at or before the commencement date less any lease
incentives received; (iii) any initial direct costs and,
if applicable, (iv) restoration costs. Payments associ-
ated with short-term leases and leases of low-value
assets are recognized as an expense in the consoli-
dated income statement on a straight-line basis.
Lease liabilities are measured at the net present value
345
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
of the following: (i) fixed lease payments, (ii) variable
lease payments that are based on an index or a rate
and, if applicable, (iii) amounts expected to be pay-
able by the lessee under residual value guarantees,
and (iv) the exercise price of a purchase option if the
lessee is reasonably certain to exercise that option.
Lease liabilities do not include any non-lease compo-
nents that may be included in the related contracts.
Lease payments are discounted using the inter-
est rate implicit in the lease. If that rate cannot be
determined, the Group’s incremental borrowing
rate is used, being the rate that the Group would
have to pay to borrow the funds necessary to obtain
an asset of similar value in a similar economic envi-
ronment with similar terms and conditions.
Some lease contracts contain variable pay-
ment terms that are linked to sales generated from
Ferrari stores. Variable lease payments that depend
on sales are recognized in the consolidated income
statement in the period in which the condition that
triggers those payments occurs.
Extension and termination options are included
in a number of leases related to Ferrari stores, ware-
houses and machinery and equipment of the Group.
In determining the lease term, management consid-
ers all facts and circumstances that create an eco-
nomic incentive to exercise an extension option, or
not exercise a termination option. Extension options
(or periods after termination options) are only
included in the lease term if the lease is reasonably
certain to be extended (or not terminated).
BORROWING COSTS
General and specific borrowing costs directly at-
tributable to the acquisition, construction or pro-
duction of qualifying assets, which are assets that
necessarily take a substantial period of time to get
ready for their intended use, are added to the cost of
those assets, until such time as the assets are sub-
stantially ready for their intended use.
All other borrowing costs are expensed in finan-
cial expenses if related to the Group’s industrial
activities or cost of sales if related to the Group’s
financial services activities in the consolidated
income statement, as incurred.
IMPAIRMENT OF ASSETS
The Group continuously monitors its operations to
assess whether there is any indication that its in-
tangible assets (including capitalized development
costs) and its property, plant and equipment may be
impaired. Goodwill is tested for impairment annually
or more frequently, if there is an indication that an
asset may be impaired.
If indications of impairment are present, the car-
rying amount of the asset is reduced to its recov-
erable amount, which is the higher of fair value less
costs of disposal and its value in use. The recover-
able amount is determined for the individual asset,
unless the asset does not generate cash inflows that
are largely independent of the cash inflows from
other assets or groups of assets, in which case the
asset is tested as part of the cash-generating unit
(“CGU”) to which the asset belongs. A CGU is the
smallest identifiable group of assets that generates
cash inflows that are largely independent of the
cash inflows from other assets or groups of assets.
In assessing the value in use of an asset or CGU, the
estimated future cash flows are discounted to their
present value using a discount rate that reflects cur-
rent market assessments of the time value of money
and the risks specific to the asset or CGU. An impair-
ment loss is recognized if the recoverable amount is
lower than the carrying amount.
Where an impairment loss for assets other
than goodwill subsequently no longer exists or
has decreased, the carrying amount of the asset
or CGU is increased to the revised estimate of its
recoverable amount, but not in excess of the carry-
ing amount that would have been recorded had no
impairment loss been recognized. The reversal of
an impairment loss is recognized in the consolidated
income statement immediately.
FINANCIAL INSTRUMENTS
PRESENTATION
Current financial assets include trade receivables,
receivables from financing activities, derivative fi-
nancial instruments, other current financial assets
and cash and cash equivalents.
Investments and other financial assets include invest-
ments accounted for using the equity method as well
as other securities and non-current financial assets.
Financial liabilities include debt (primarily bonds,
notes,
asset-backed
financing
(securitizations)
and borrowings from banks), trade payables and
other financial liabilities (mainly derivative financial
instruments).
MEASUREMENT
Financial assets, other than investments account-
ed for using the equity method, and financial lia-
bilities are measured in accordance with IFRS 9 —
Financial Instruments.
Except for investments accounted for using the
equity method, the Group initially measures finan-
cial assets at fair value plus, in the case of financial
assets not measured at fair value through profit or
loss, transaction costs.
Equity instruments held by the Group are recog-
nized at fair value through profit or loss. When mar-
ket prices are not directly available, the fair value is
measured using appropriate valuation techniques
(e.g. discounted cash flow analysis based on market
information available at the balance sheet date).
Trade receivables and receivables from financ-
ing activities are originated in the ordinary course
of business and held within a business model with
the objective to hold the receivables in order to
346
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
collect contractual cash flows that meet the “solely
payments of principal and interest” criterion under
IFRS 9, therefore they are measured at amor-
tized cost using the effective interest rate method.
Receivables with maturities greater than one year
are discounted to present value.
Assessments are made regularly as to whether
there is any objective evidence that a financial
asset or group of financial assets may be impaired.
If any such evidence exists, an impairment loss is
recognized within selling, general and adminis-
trative costs for trade receivables and within cost
of sales for receivables from financing activities.
Under IFRS 9, a forward-looking expected credit
loss model must be applied when assessing impair-
ment. In making impairment assessments for trade
receivables and for receivables from financing
activities that are within the scope of IFRS 16, the
Group applies the simplified approach to estimate
the lifetime expected credit losses and considers its
historical credit loss experience, adjusted for for-
ward-looking factors specific to the nature of the
Group’s receivables and economic environment.
For all other receivables from financing activities,
the Group applies the general approach, which
requires the application of a three-stage model
to assess whether there has been a significant
increase in credit risk on the financial instrument
since initial recognition.
Stage
Description
Time period for
measurement of ECL
Stage 1
A financial instrument that is not credit-impaired on initial recognition
12-month ECL
Stage 2
A financial instrument with a significant increase in credit risk since
initialrecognition
Lifetime ECL
Stage 3
A financial instrument that is credit-impaired or has defaulted
Lifetime ECL
The Group considers a default to occur and a signif-
icant increase in credit risk to occur when the coun-
terparty fails to make contractual payments within
a certain number of days of when they fall due. For
example, for receivables from financing activities
this typically occurs when the counterparty fails to
make contractual payments within 60 days of when
the related receivables fall due, while for trade re-
ceivables this is assessed on a case by case basis.
Receivables are written off when the counter-
party fails to make contractual payments and there
is no reasonable expectation of recovery, and in any
circumstance no later than 360 days. When trade
receivables or receivables from financing activities
have been written off, the Company may continue
to engage in enforcement actions to attempt to
recover the receivables. Receivables from financ-
ing activities are generally secured on the title of
cars or other guarantees.
Financial liabilities, with the exception of deriv-
ative financial instruments, are measured at amor-
tized cost using the effective interest rate method.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are used for eco-
nomic hedging purposes only in order to reduce fi-
nancial risks and in particular, foreign currency risks.
Derivative financial instruments qualify for hedge
accounting only when at the inception of the hedge
there is formal designation and documentation of
the hedging relationship, the hedge is expected to
be highly effective, its effectiveness can be reliably
measured and it is highly effective throughout the fi-
nancial reporting periods for which it is designated.
All derivative financial instruments are mea-
sured at fair value.
When derivative financial instruments qualify for
hedge accounting, the following accounting treat-
ments apply:
Cash flow hedges
Where a derivative financial instrument is designat-
ed 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 instru-
ment is recognized directly in other comprehensive
income/(loss). The cumulative gain or loss is reclassi-
fied 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 con-
solidated income statement immediately within net
financial income/expenses. When a hedging instru-
ment or hedge relationship is terminated but the
hedged transaction is still expected to occur, the cu-
mulative gain or loss realized to the point of termina-
tion remains in other comprehensive income/(loss)
and is recognized in the consolidated income state-
ment at the same time as the underlying transaction.
If the hedged transaction is no longer probable, the
cumulative unrealized gain or loss held in other com-
prehensive income/(loss) is recognized in the consol-
idated income statement immediately.
The Group does not use fair value hedges or
hedges of a net investment.
If hedge accounting cannot be applied, the gains
or losses from the fair value measurement of deriv-
347
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ative financial instruments are recognized immedi-
ately within financial expenses.
Transfers of financial assets
The Group sells certain of its receivables from fi-
nancing activities under securitization programs.
Securitization transactions involve the sale of finan-
cial receivables to a special purpose vehicle, which
in turn finances the purchase of such financial re-
ceivables by issuing asset-backed securities in the
form of notes whose repayment of principal and in-
terest depends on the cash flows generated by the
related financial receivables. The receivables sold
as part of securitization programs are consolidat-
ed until collection from the customer as they do not
meet the requirements for derecognition in accor-
dance with IFRS 9.
The Group may also sell certain of its trade
receivables through factoring transactions without
recourse. The Group derecognizes the trade receiv-
ables when, and only when, the contractual rights
and risks to the cash flows arising from the related
trade receivables are no longer held or the Group
has transferred the financial assets.
In the case of a transfer of receivables, if the
Group transfers substantially all the risks and
rewards of ownership of the receivables, it derecog-
nizes the receivables and separately recognizes as
assets or liabilities any rights and obligations cre-
ated or retained in the transfer. On derecognition
of the receivables, the difference between their
carrying amount and the consideration received
or receivable for the transfer of the receivables is
recognized within cost of sales for receivables from
financing activities and within financial income or
financial expenses for trade receivables.
TRADE RECEIVABLES
Trade receivables are amounts due from clients
for goods sold or services provided in the ordinary
course of business. Trade receivables are recog-
nized initially at fair value and subsequently mea-
sured at amortized cost using the effective interest
rate method, less any provision for allowances.
INVENTORIES
Inventories of raw materials, semi-finished products
and finished goods are stated at the lower of cost
and net realizable value, cost being determined on
a first-in first-out (FIFO) basis. The measurement of
inventories includes the direct costs of materials, la-
bor and indirect costs (variable and fixed). Purchase
costs include ancillary costs. Prototypes are recog-
nized at their estimated realizable value, if lower than
production cost. Provision is made for obsolete and
slow-moving raw materials, finished goods, spare
parts and other supplies based on their expected fu-
ture use and realizable value. Net realizable value is
the estimated selling price in the ordinary course of
business less the estimated costs of completion and
the estimated costs for sale and distribution.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash in hand, de-
posits held at call with banks and other short-term
highly liquid investments with original maturities of
three months or less.
EMPLOYEE BENEFITS
DEFINED CONTRIBUTION PLANS
Costs arising from defined contribution plans are
expensed as incurred.
DEFINED BENEFIT PLANS
The Group’s net obligations are determined sepa-
rately for each plan by estimating the present val-
ue of future benefits that employees have earned
in the current and prior periods, and deducting the
fair value of any plan assets. The present value of the
defined benefit obligation is measured using actu-
arial techniques and actuarial assumptions that are
unbiased and mutually compatible and attributes
benefits to periods in which the obligation to pro-
vide post-employment benefits arise by using the
Projected Unit Credit Method.
The components of the defined benefit cost are
recognized as follows:
• the service costs are recognized in the consol-
idated income statement by function and pre-
sented in the relevant line items (cost of sales,
selling, general and administrative costs, re-
search and development costs, etc.);
• the net interest on the defined benefit liability
is recognized in the consolidated income state-
ment 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 obli-
gations, which comprise actuarial gains and loss-
es and any change in the effect of the asset ceiling
are recognized immediately in other comprehen-
sive income/(loss). These remeasurement com-
ponents are not reclassified in the consolidated
income statement in a subsequent period.
OTHER LONG-TERM EMPLOYEE BENEFITS
The Group’s obligations represent the present val-
ue of future benefits that employees have earned
in return for their service during the current and
prior periods. Remeasurement components on oth-
er long-term employee benefits are recognized in
the consolidated income statement in the period in
which they arise.
349
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
SHARE-BASED COMPENSATION
The Group has implemented equity incentive plans
that provide for the granting of share-based com-
pensation to the Chairman, the Chief Executive
Officer, all other members of the Ferrari Leadership
Team and other key employees of the Group. The
Group also provides share-based compensation as
part of commercial agreements with certain sup-
pliers. The share-based compensation arrange-
ments are accounted for in accordance with IFRS
2 — Share-based Payment, which requires the
Company to recognize share-based compensa-
tion expense based on fair value of awards grant-
ed. Compensation expense for the equity-settled
awards containing market performance condi-
tions is measured at the grant date fair value of the
award using a Monte Carlo simulation model, which
requires the input of subjective assumptions, in-
cluding the expected volatility of the Company’s
common stock, the dividend yield, interest rates
and a correlation coefficient between the com-
mon stock and the relevant market index. The fair
value of the awards which are conditional only on
a recipient’s continued service to the Company is
measured using the share price at the grant date
adjusted for the present value of future distribu-
tions which employees will not receive during the
vesting period.
Share-based compensation expense relating to
the equity incentive plans is recognized over the ser-
vice period within selling, general and administrative
costs or cost of sales in the consolidated income state-
ment depending on the function of the employee, with
an offsetting increase to equity. Share-based com-
pensation expense relating to commercial agree-
ments with certain suppliers is recognized over the
period in which the supplier’s services are received
and classified within the consolidated income state-
ment depending on the function of the supplier’s ser-
vices, with an offsetting increase to equity.
PROVISIONS
Provisions are recognized when the Group has a
present obligation, legal or constructive, as a result
of a past event, it is probable that an outflow of re-
sources embodying economic benefits will be re-
quired to settle the obligation and a reliable estimate
of the amount of the obligation can be made.
WARRANTY AND RECALL CAMPAIGNS PROVISION
All cars are sold with warranty coverage. The war-
ranty coverage generally applies to defects that may
become apparent within a certain period from the
purchase of the car.
The warranty provision is recognized at the time
of the sale of the car, based on the present value
of management’s estimate of the expected cost
to fulfill the obligations over the contractual war-
ranty period. Estimates are principally based on the
Group’s historical claims or costs experience and
the cost of parts and services to be incurred in the
activities. The costs related to these provisions are
recognized within cost of sales at the time when they
are probable and reasonably estimable.
See “—Use of estimates and judgments” below
for further details relating to recall campaigns.
DEFERRED INCOME
Deferred income relates to amounts received by the
Group under various agreements, which are reliant
on the future performance of a service or other act
of the Group. Deferred income is recognized as net
revenues when the Group has fulfilled its obligations
under the terms of the various agreements.
Range models (models belonging to the Ferrari
product portfolio, excluding Special Series, Icona,
limited edition supercars and one-off models) are
sold with a scheduled maintenance program to
ensure that the cars are maintained to the highest
standards to meet the Group’s strict requirements
for performance and safety. Amounts attributable
to the maintenance program are not recognized as
income immediately, but are deferred over the main-
tenance program term. The amount of the deferred
income related to this program is based on the esti-
mated fair value of the service to be provided.
ADVANCES
Advances relate to amounts received from or billed
to customers in advance of having delivered the
related cars or provided the related services. The
advances are recognized in net revenues when the
cars are shipped or the services provided.
REVENUE RECOGNITION
Revenue is recognized when control over a product
or service is transferred to a customer. Revenue is
measured at the transaction price which is based on
the amount of consideration that the Group expects
to receive in exchange for transferring the prom-
ised goods or services to the customer and excludes
any sales incentives as well as taxes collected from
customers that are remitted to government author-
ities. The transaction price will include estimates of
variable consideration to the extent it is probable
that a significant reversal of revenue recognized will
not occur. The Group enters into contracts that may
include both products and services, which are gen-
erally capable of being distinct and accounted for as
separate performance obligations.
The Group generates revenue from the sale of
cars, spare parts and engines as well as from spon-
sorship, commercial and brand activities. The Group
accounts for a contract with a customer when there
is a legally enforceable contract between the Group
and the customer, the rights of the parties are identi-
fied, the contract has commercial substance, and col-
lectability of the contract consideration is probable.
350
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Payments from customers are typically due within
30 to 40 days of invoicing.
The Group does not recognize any assets asso-
ciated with the incremental costs of obtaining a
contract with a customer that are expected to be
recovered. The majority of revenue is recognized at
a point-in-time or over a period of one year or less,
and the Group applies the practical expedient to rec-
ognize the incremental costs of obtaining a contract
as an expense when incurred if the amortization
period of the asset that would otherwise be recog-
nized is one year or less.
CARS, SPARE PARTS AND ENGINES
The sales of cars, spare parts and engines have
multiple performance obligations that include prod-
ucts, services, or a combination of products and
services as contracts may include maintenance
programs and extended warranties that are sep-
arately priced or not separately priced. Contracts
may also include variable consideration for dis-
counts such as sales incentives and performance
based bonuses and product returns. The Group of-
fers incentives to its third-party dealers, which are
designed to promote the sale of cars and parts, as
well as a variety of other performance indicators,
which may be qualitative or quantitative, such as
quality service, customer satisfaction and preser-
vation of the Ferrari brand, among others. The cost
of incentives is estimated at the inception of a con-
tract at the expected amount that will ultimately be
paid and is recognized as a reduction to revenue
generally at the time of the sale or when the dealer
is expected to achieve the required performance if
in relation to other performance indicators differ-
ent from sales. Revenues recognized are limited to
the amount of consideration the Group expects to
receive. The Group allocates the transaction price
to the performance obligations based on the stand
alone selling prices (SSP) for each obligation. When
the SSP does not exist, the Group estimates the SSP
based on the adjusted market approach.
Revenues for the sale of cars, spare parts and
engines are recognized at a point in time when
control of the cars, spare parts or engines is trans-
ferred to the customer based on shipping terms,
which generally corresponds to the date when the
cars, spare parts and engines are released to the
carrier responsible for transportation to dealers or
Maserati. Revenues relating to the maintenance pro-
gram are recognized over time based on the input
method of measuring progress towards complete
satisfaction of the related performance obliga-
tion, calculated as a proportion of overall revenues
expected during the maintenance period equal to
the ratio of costs incurred in the reporting period
compared to the overall costs to be incurred during
the maintenance period. Revenues relating to the
extended warranties are recognized on a straight-
line basis over the extended warranty period.
Revenues from the supply of engines and related
services to other Formula 1 racing teams are recog-
nized over time on a time and materials basis when
the services are provided.
Management has exercised judgment in deter-
mining performance obligations, variable consider-
ation, allocation of transaction price and the timing
of revenue recognition.
SPONSORSHIP, COMMERCIAL
AND BRAND ACTIVITIES
Revenues from sponsorship agreements in connec-
tion with our participation in racing competitions
are generally recognized ratably over the contract
term as the customer benefits from the service
throughout the service period. Revenues from
sponsorship agreements that contain variable con-
sideration based on the performance of the Group’s
racing teams are estimated and recognized over the
relevant period to the extent that it is highly probable
that a significant reversal in the amount of the cu-
mulative revenue recognized will not occur, which is
typically when it is considered highly probable that
the related conditions associated with the variable
consideration will be achieved.
Revenues from commercial activities primar-
ily relate to the revenues from participating in the
Formula 1 World Championship. The revenues
attributable to each racing team are governed by a
specific agreement and depend upon, among other
factors, the prior year ranking of each of the racing
teams. Revenues of the commercial activities are
recognized ratably over the contract term.
Revenues from brand licensing agreements
where the customer has a right to access the
Group’s brands or the contract includes minimum
guaranteed payments are recognized on a straight-
line basis over the contract term. Licensing reve-
nues in excess of the minimum guaranteed pay-
ments are recognized when the related conditions
are satisfied. Revenues from sales-based licensing
agreements are recognized when the sales occur.
Management has exercised judgment in deter-
mining variable consideration.
OTHER REVENUES
Interest income generated by our financial service
activities from the provision of client and dealer fi-
nancing is reported within revenues using the effec-
tive interest rate method and not within net financial
income/expenses.
COST OF SALES
Cost of sales comprises expenses incurred in
the manufacturing and distribution of cars and parts
(including the engines rented to other Formula 1 rac-
ing teams), of which, cost of materials, components
and labor costs are the most significant portion. The
remaining costs principally include depreciation,
amortization, insurance and transportation costs.
351
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Cost of sales also includes warranty and product-re-
lated costs, which are estimated and recorded at
the time of sale of the car.
Expenses which are directly attributable to the
financial services companies, including the interest
expenses related to their financing as a whole and
provisions for risks and write-downs of assets, are
also reported in cost of sales.
OTHER EXPENSES AND OTHER INCOME
Other expenses consist of miscellaneous costs
which cannot be allocated to specific functional ar-
eas, such as indirect taxes, accruals for provisions
not attributable to cost of sales or selling, general
and administrative costs, and other miscellaneous
expenses, including marketing expenses incurred
on behalf of our third-party dealers.
Other income consists of miscellaneous income
that is not directly attributable to the sale of goods or
services, such as gains on the disposal of property
plant and equipment, the release of certain provi-
sions originally recognized as other expenses, rental
income and other miscellaneous income.
TAXES
Income taxes include all taxes based upon the tax-
able profits of the Group. Current and deferred tax-
es are recognized as income or expense and are in-
cluded in the consolidated income statement for the
period, except tax arising from (i) a transaction or
event which is recognized, in the same or a different
period, either in other comprehensive income/(loss)
or directly in equity, or (ii) a business combination.
Deferred taxes are accounted using the balance
sheet method. Deferred tax liabilities are recognized
for all taxable temporary differences between the
carrying amounts of assets or liabilities and their tax
base, except to the extent that the deferred tax liabil-
ities arise from the initial recognition of goodwill or
the initial recognition of an asset or liability in a trans-
action which is not a business combination and at
the time of the transaction, affects neither account-
ing profit nor taxable profit. Deferred tax assets are
recognized for all deductible temporary differences
to the extent that it is probable that taxable profit will
be available against which the deductible temporary
differences can be utilized, unless the deferred tax
assets arise from the initial recognition of an asset
or liability in a transaction that is not a business com-
bination and at the time of the transaction, affects
neither accounting profit nor taxable profit.
Deferred tax assets and liabilities are measured
at the substantively enacted tax rates in the respec-
tive jurisdictions in which the Group operates that
are expected to apply to the period when the asset
is realized or liability is settled. Any remeasurements
to deferred tax assets and liabilities as a result of
changes in substantially enacted tax rates are rec-
ognized in the consolidated income statement.
The recoverability of deferred tax assets is depen-
dent on the Group’s ability to generate sufficient
future taxable income in the period in which it is
assumed that the deductible temporary differenc-
es reverse and tax losses carried forward can be
utilized. In making this assessment, the Group con-
siders future taxable income arising on the most re-
cent budgets and plans, prepared by using the same
criteria described for testing the impairment of as-
sets and goodwill, moreover, it estimates the impact
of the reversal of taxable temporary differences
on earnings and it also considers the period over
which these assets could be recovered. The carry-
ing amount of deferred tax assets is reduced to the
extent that it is not probable that sufficient taxable
profit will be available to allow the benefit of part or
all of the deferred tax assets to be utilized. The car-
rying amount of deferred tax assets is reviewed at
each reporting date.
The Group recognizes deferred tax liabilities
associated with the existence of a subsidiary’s undis-
tributed profits, except when it is able to control the
timing of the reversal of the temporary difference
and it is probable that this temporary difference will
not reverse in the foreseeable future. The Group
recognizes deferred tax assets associated with the
deductible temporary differences on investments in
subsidiaries only to the extent that it is probable that
the temporary differences will reverse in the foresee-
able future and taxable profit will be available against
which the temporary difference can be utilized.
Deferred tax assets relating to the carry-for-
ward of unused tax losses and tax credits, as well
as those arising from deductible temporary differ-
ences, are recognized to the extent that it is proba-
ble that future profits will be available against which
they can be utilized.
Current income taxes and deferred taxes are
offset when they relate to the same taxation author-
ity and there is a legally enforceable right of offset.
Imposta
Regionale
sulle
Attività
Produttive
(“IRAP”) is recognized within income tax expense.
IRAP is calculated on a measure of income defined
by the Italian Civil Code as the difference between
operating revenues and costs, before financial
income and expense, and in particular before the
cost of fixed-term employees, credit losses and any
interest included in lease payments. IRAP is applied
on the tax base at 3.9 percent for the years ended
December 31, 2024, 2023 and 2022.
Tax uncertainties are accounted for in accor-
dance with IFRIC 23.
Other taxes not based on income, such as prop-
erty taxes and capital taxes, are included in other
expenses, net.
DIVIDENDS
Dividends payable by the Group are reported as a
change in equity in the period in which they are ap-
proved by shareholders or the Board of Directors as
applicable under local rules and regulations.
352
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
ROUNDING OF AMOUNTS
All amounts disclosed in the consolidated financial
statements and notes have been rounded off to the
nearest thousand Euro unless otherwise stated.
SEGMENT REPORTING
The Group has determined that it has one operating
and one reportable segment based on the informa-
tion reviewed by the Board of Directors (the Group’s
“Chief Operating Decision Maker” as defined in IFRS
8 — Operating Segments) in making decisions re-
garding the allocation of resources and to assess
performance.
For additional disclosures required by IFRS 8,
see Note 31 “Entity-Wide Disclosures”.
USE OF ESTIMATES AND JUDGMENTS
The Consolidated Financial Statements are prepared
in accordance with IFRS Accounting Standards,
which require the use of estimates, judgments and
assumptions that affect the carrying amount of as-
sets and liabilities, the disclosure of contingent as-
sets and liabilities and the amounts of income and
expenses recognized. The estimates and associated
assumptions are based on elements that are known
when the financial statements are prepared, on his-
torical experience and on any other factors that are
considered to be relevant.
Estimates
and
underlying
assumptions
are
reviewed periodically and continuously by the
Group. If the items subject to estimates do not per-
form as assumed, then the actual results could dif-
fer from the estimates, which would require adjust-
ments. The effects of any changes in estimates are
recognized in the consolidated income statement in
the period in which the changes are made, or pro-
spectively in future periods.
The most significant estimates and judgments
made by management are described below.
MAINTENANCE PROGRAMS
AND EXTENDED WARRANTIES
The Group’s new cars are sold with a scheduled mainte-
nance program to ensure that the cars are maintained
to the highest standards to meet the Group’s strict re-
quirements for performance and safety. Amounts at-
tributable to the maintenance programs are not rec-
ognized as income immediately, but are recognized
over the maintenance program term based on the in-
put method of measuring progress towards complete
satisfaction of the related performance obligation, cal-
culated as a proportion of overall revenues expected
during the maintenance period equal to the ratio of
costs incurred in the reporting period compared to the
overall costs to be incurred during the maintenance
period. The amount of the deferred income related to
this program is based on the estimated fair value of the
service to be provided. The Group also offers various
extended warranty programs to customers that pro-
vide additional coverage beyond the warranty period
required by applicable law or included with all new car
sales. Revenues relating to the extended warranties
are recognized on a straight-line basis over the extend-
ed warranty period. Management has exercised judg-
ment in determining performance obligations, variable
consideration, allocation of the transaction price and
the timing of revenue recognition in relation to its main-
tenance programs and extended warranties.
RECALL CAMPAIGNS
The Group periodically initiates voluntary service ac-
tions to address various client satisfaction, safety and
emissions issues related to cars sold. Included in the
reserve is the estimated cost of these services and re-
call actions. Considering the nature of the recall cam-
paigns, in certain circumstances management may
exercise judgment in determining the related provi-
sions. The estimated future costs of these actions are
based primarily on historical experience and the cost
of parts and services to be incurred in the specified
activities, and are recognized at the time when they
are probable and reasonably estimable. Estimates of
the future costs of these actions are inevitably impre-
cise due to several uncertainties, including the num-
ber of cars affected by a service or recall action. It is
reasonably possible that the ultimate cost of these
service and recall actions may require the Group to
make expenditures in excess of (or less than) estab-
lished reserves over an extended period of time and
the estimates are periodically reviewed during the
year. Due to the uncertainty and potential volatility of
these estimated factors, changes in the assumptions
used could affect the results of operations.
CLIMATE-RELATED MATTERS
Global climate change is resulting in, and is expected
to continue to result in, natural disasters and extreme
weather occurring more frequently or with greater
intensity, including droughts, wildfires, storms, rising
sea-levels, flooding, heat waves and cold waves. Such
extreme events are driving changes in market dy-
namics, stakeholder expectations, local, national and
international climate change policies and regulations.
The global automotive industry in particular is
currently experiencing significant developments
due to an increased focus on climate change and
evolving regulatory requirements and technolog-
ical changes relating to fuel efficiency, electrifica-
tion and greenhouse gas emissions, among others,
which are also impacting the luxury performance
sports car market in which the Group operates.
As these regulatory developments and tech-
nological changes continue to evolve, the Group’s
strategies, operations and business plans may
change and the recoverability of the Group’s assets
could be impacted, including the recoverability of
goodwill, capitalized development costs and prop-
erty, plant and equipment.
353
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Goodwill
The Group’s goodwill amounted to €785,182 thou-
sand at December 31, 2024 and December 31, 2023.
As required by IFRS Accounting Standards, an annu-
al impairment test must be performed for goodwill,
which may require management to exercise judg-
ment in determining expected future cash flows.
Based on the impairment tests performed by man-
agement, the recoverable amount of goodwill was
significantly higher than its carrying amount for the
years ended December 31, 2024, 2023 and 2022.
Furthermore, the exclusivity of the Group’s busi-
ness, its historical profitability and its future earn-
ings prospects indicate that the carrying amount of
the goodwill will continue to be recoverable even in
the event of difficult economic and market condi-
tions, including those that may be caused by regu-
latory developments or climate-related matters. For
additional information relating to the goodwill test
performed, see Note 13 “Goodwill”.
Non-current assets with
definite useful lives
The Group’s non-current assets (excluding good-
will) primarily include intangible assets, which pri-
marily relate to development costs, and property,
plant and equipment. At December 31, 2024 and
December 31, 2023, the Group’s intangible assets
amounted to €1,545,664 thousand and €1,419,699
thousand, respectively (of which €1,502,889 thou-
sand and €1,369,895 thousand related to devel-
opment costs), and the Group’s property, plant
and equipment amounted to €1,828,784 thousand
and €1,575,200 thousand, respectively. The Group
makes significant investments for the development
of its existing and future product portfolio, and cap-
italized development costs recognized for the years
ended December 31, 2024 and 2023 amounted to
€476,467 thousand and €448,380 thousand respec-
tively. These costs were capitalized in accordance
with the criteria in IAS 38 — Intangible Assets, includ-
ing, among others: (i) the costs can be measured re-
liably, (ii) the technical feasibility of the product, es-
timated volumes and expected pricing all support
the view that the development expenditure will gen-
erate future economic benefits, based primarily on
information specific to business initiatives underly-
ing the Group’s business plans, and (iii) the Company
has the intention to complete the development
and the ability to use the related intangible assets.
Management may use judgment in distinguishing
between research phases and development phases,
including as a result of regulatory developments. For
the years ended December 31, 2024, 2023 and 2022,
no impairment indicators were identified and the
Group did not recognize any impairment charges
for non-current assets with definite useful lives.
Provisions
The Group sells its cars around the world and is sub-
ject to a variety of laws and regulations relating to
the environment, and in particular, to the emissions
of its cars. The group’s cars, together with the en-
gines that power them, must comply with extensive
regional, national and local laws and regulations, and
industry self-regulations (including those that regu-
late vehicle safety). The Group is currently benefit-
ing from certain regulatory exemptions because it
qualifies as a small vehicle manufacturer or similar
designation in certain jurisdictions where it sells
cars. These exemptions provide a range of benefits,
from less stringent emissions caps and compliance
date extensions, to exemptions from zero emission
vehicle production requirements, which may re-
quire management to use judgment. The Group rec-
ognized provisions for environmental risks based
on management’s best estimates of the future cash
outflows that will be required to settle the Group’s
related obligations. For additional information see
Note 23 “Provisions”.
Other areas requiring estimates in the prepara-
tion of the consolidated financial statements include
the following: revenue recognition, product war-
ranty liabilities, recoverability of goodwill, recov-
erability of non-current assets with definite useful
lives, share-based compensation, litigation and con-
tingent liabilities, and current and deferred taxes.
354
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(3)
SCOPE OF CONSOLIDATION
Ferrari N.V. is the parent company of the Group and it holds, directly and
indirectly, interests in the Group’s main operating companies. The Group’s
scope of consolidation at December 31, 2024 and 2023 was as follows:
At December 31, 2024
At December 31, 2023
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.
Italy
Engineering,
manufacturing
and sales
100%
—%
100%
—%
New Business 33 S.p.A. (1)
Italy
Engineering,
manufacturing
and sales
100%
—%
100%
—%
Indirectly held through Ferrari S.p.A.
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 International Cars Trading
(Shanghai) Co. L.t.d.
China
Importer and
distributor
80%
20%
80%
20%
Ferrari (HK) Limited
Hong Kong
Importer and
distributor
100%
—%
100%
—%
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 Europe GmbH
Germany
Service company
100%
—%
100%
—%
G.S.A. S.A. in liquidation
Switzerland
Service company
100%
—%
100%
—%
Mugello Circuit S.p.A.
Italy
Racetrack
management
100%
—%
100%
—%
Ferrari Financial Services, Inc.
USA
Financial services
100%
—%
100%
—%
Indirectly held through other Group
entities
Ferrari Auto Securitization
Transaction LLC (2)
USA
Financial services
100%
—%
100%
—%
Ferrari Auto Securitization
Transaction - Lease, LLC (2)
USA
Financial services
100%
—%
100%
—%
Ferrari Auto Securitization
Transaction - Select, LLC (2)
USA
Financial services
100%
—%
100%
—%
Ferrari Financial Services Titling
Trust (2)
USA
Financial services
100%
—%
100%
—%
Ferrari Lifestyle North America, Inc. (3) (4)
USA
Retail
100%
—%
100%
—%
(1)
With effectiveness as of January 1, 2025, New Business 33
S.p.A. was merged by incorporation into Ferrari S.p.A.
(2)
Shareholding held by Ferrari Financial Services Inc. within
the context of securitization transactions for receivables
generated by the Group’s financial services activities in the
United States.
(3)
Shareholding held by Ferrari North America Inc.
(4)
Effective as of January 12, 2024, the company changed its
name from 410 Park Display, Inc to Ferrari Lifestyle North
America, Inc.
355
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
NON-CONTROLLING INTERESTS
The non-controlling interests at December 31, 2024 and 2023 and the
net profit attributable to non-controlling interests for the years ended
December 31, 2024, 2023 and 2022 relate to Ferrari International Cars
Trading (Shanghai) Co. L.t.d. (“FICTS”), in which the Group holds an 80
percent interest.
At December 31,
2024
2023
(€ thousand)
Equity attributable to non-controlling interests
9,292
9,734
For the years ended December 31,
2024
2023
2022
(€ thousand)
Net profit attributable to non-controlling interests
4,036
5,409
6,680
The non-controlling interests in FICTS are not considered to be significant
to the Group for the periods presented in these Consolidated Financial
Statements.
(4)
NET REVENUES
Net revenues are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Revenues from:
Cars and spare parts
5,727,688
5,119,181
4,321,120
Sponsorship, commercial and brand
669,776
571,759
498,861
Other (1)
279,204
279,206
275,273
Total net revenues
6,676,668
5,970,146
5,095,254
(1)
Starting from 2024, residual net revenues generated from the sale of engines are presented within other net revenues as a result of
the expiration of the supply contract with Maserati in December 2023. As a result, net revenues generated from engines of €126,748
thousand and €155,342 thousand for the years ended December 31, 2023 and 2022 that were previously presented as “Engines” net
revenues have been presented within “Other” net revenues to conform to the current presentation.
Other net revenues primarily relate to financial services activities,
management of the Mugello racetrack and other sports-related activities,
as well as net revenues generated from the sale of engines to other
Formula 1 racing teams and fromthe sale of engines to Maserati, for which
the contract expired in December 2023.
Interest and other financial income from financial services activities
included within net revenues in 2024, 2023 and 2022 amounted to
€130,406 thousand, €99,661 thousand and €69,389 thousand, respectively.
356
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(5)
COST OF SALES
Cost of sales in 2024, 2023 and 2022 amounted to €3,329,483 thousand,
€2,995,877 thousand and €2,648,953 thousand, respectively, consisting
mainly of the cost of materials, components and labor related to the
manufacturing and distribution of cars and spare parts. Cost of sales also
include depreciation and amortization, insurance, transportation costs,
and warranty and product-liability related costs, as well as production
costs for engines sold to Maserati and engines rented to other Formula
1 racing teams.
Interest and other financial expenses from financial services activities
included within cost of sales in 2024, 2023 and 2022 amounted to €88,308
thousand, €60,808 thousand and €27,145 thousand, respectively.
(6)
SELLING, GENERAL AND ADMINISTRATIVE COSTS
Selling, general and administrative costs are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Selling costs
288,538
236,443
226,988
General and administrative costs
272,606
226,137
200,986
Total selling, general and administrative costs
561,144
462,580
427,974
Selling costs consist mainly of costs for sales personnel, marketing
and events, and retail stores. Costs for marketing and events primarily
relate to corporate events, trade shows and media and client events for
the launch of new models, lifestyle events (including the use of digital
solutions), as well as indirect marketing costs incurred mainly through
the Formula 1 racing team, Scuderia Ferrari.
General and administrative costs consist mainly of administration
and other general expenses that are not directly attributable to
manufacturing, sales or research and development activities, including
for personnel and the continuous development of the Group’s digital
infrastructure.
357
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(7)
RESEARCH AND DEVELOPMENT COSTS
Research and development costs are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Research and development costs expensed during the year
563,311
538,903
517,842
Amortization of capitalized development costs
330,781
342,656
257,730
Total research and development costs
894,092
881,559
775,572
Research and development costs expensed during the period primarily
relate to research and development activities for Formula 1 racing as
well as development activities to support the innovation of our product
portfolio and components, in particular, in relation to electric and other
new technologies.
Research and development costs for the year ended December 31, 2022
and, to a lesser extent, for the years December 31, 2024 and 2023 are
recognized net of technology-related government incentives.
(8)
OTHER EXPENSES, NET
Other expenses, net are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Other income
21,818
10,958
12,446
Other expenses
34,261
29,856
33,994
Total other expenses, net
12,443
18,898
21,548
Other expenses mainly related to indirect taxes, provisions, and other
miscellaneous expenses and other income mainly related to rental
income, gains on the disposal of property, plant and equipment and other
miscellaneous income.
358
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(9)
FINANCIAL EXPENSES AND FINANCIAL INCOME
Financial expenses and financial income are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Foreign exchange gains
92,051
91,019
78,674
Interest income
31,486
25,813
4,150
Other financial income
23,563
15,487
1,034
Financial income
147,100
132,319
83,858
Foreign exchange losses
99,087
111,216
104,597
Interest expenses
40,054
29,258
25,489
Other financial expenses
6,754
6,860
3,388
Financial expenses
145,895
147,334
133,474
Financial (income)/expenses, net
(1,205)
15,015
49,616
Financial expenses primarily relate to foreign exchange losses, including
the net costs of hedging, and interest expenses on debt.
Financial income primarily relates to foreign exchange gains, interest
income on cash and cash equivalents and for 2023, also to gains of
€7,940 thousand realized on the partial cash tender executed during the
third quarter of 2023 on a bond due in 2025. For additional information
see Note 24 “Debt”.
Interest and other financial income, and interest expenses and other
financial charges, from financial services activities are recognized
within net revenues and cost of sales, respectively.
(10)
INCOME TAXES
Income tax expense is as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Current tax expense
383,481
347,162
269,924
Deferred tax benefit
(17,483)
(4,541)
(30,178)
Taxes relating to prior years
(2,955)
2,276
(1,274)
Total income tax expense
363,043
344,897
238,472
The Group’s Italian entities participate in a group Italian tax consolidation
under Ferrari N.V.
Income tax expense amounted to €363,043 thousand, €344,897 thousand
and €238,472 thousand for the years ended December 31, 2024, 2023
and 2022, respectively.
359
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Income taxes for the years ended December 31, 2024, 2023 and 2022
benefited from the coexistence of two Patent Box tax regimes. The
Patent Box regime firstly introduced by the Italian Law No. 190/2014 was
implemented by the Group from 2020 to 2024, recognizing the tax benefit
over three annual installments. The new Patent Box regime regulated by
Law Decree No. 146, effective from October 22, 2021, provides for a 110%
supertax deduction for costs relating to eligible intangible assets and allows
for a transitional period where both Patent Box tax regimes coexist.
The table below provides a reconciliation between actual income tax
expense and the theoretical income tax expense, calculated on the basis
of the applicable corporate tax rate in effect in Italy, which was 24.0
percent for each of the years ended December 31, 2024, 2023 and 2022.
For the years ended December 31,
2024
2023
2022
(€ thousand)
Profit before taxes
1,888,956
1,602,354
1,177,766
Theoretical income tax rate
24.0%
24.0%
24.0%
Theoretical income tax expense
453,349
384,565
282,664
Tax effect on:
Permanent and other differences
(145,802)
(95,836)
(85,736)
Italian Regional Income Tax (IRAP)
50,408
48,912
39,446
Effect of changes in tax rates and tax regulations
938
961
553
Differences between foreign tax rates and the theoretical Italian tax rate
and tax holidays
2,681
2,156
1,945
Taxes relating to prior years
(2,955)
2,276
(1,274)
Withholding tax on earnings
4,424
1,863
875
Income tax expense
363,043
344,897
238,472
Effective tax rate
19.2%
21.5%
20.2%
The effective tax rate was 19.2 percent, 21.5 percent and 20.2 percent
for the years ended December 31, 2024, 2023 and 2022, respectively.
The Patent Box benefit relating to 2024, 2023 and 2022 is included within
“permanent and other differences” in the tax rate reconciliation above.
Imposta Regionale sulle Attività Produttive (“IRAP”) (current and deferred)
in 2024, 2023 and 2022 amounted to €50,408 thousand, €48,912
thousand and €39,446 thousand, respectively. IRAP is only applicable
to Italian entities and is calculated on a measure of income defined by
the Italian Civil Code as the difference between operating revenues and
costs, before financial income and expense, and in particular before the
cost of fixed-term employees, credit losses and any interest included in
lease payments. IRAP is calculated using financial information prepared
under Italian accounting standards. IRAP is applied on the tax base at 3.9
percent for each of the years ended December 31, 2024, 2023 and 2022.
360
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The analysis of deferred tax assets and deferred tax liabilities at
December 31, 2024 and 2023, is as follows:
At December 31,
2024
2023
(€ thousand)
Deferred tax assets:
To be recovered after 12 months
93,073
128,110
To be recovered within 12 months
143,718
89,443
236,791
217,553
Deferred tax liabilities:
To be realized after 12 months
(82,429)
(100,865)
To be realized within 12 months
(27,587)
(35,981)
(110,016)
(136,846)
Net deferred tax assets
126,775
80,707
The movements in deferred income tax assets and liabilities during the
year, without taking into consideration the offsetting of balances within
the same tax jurisdiction, are as follows:
At December 31,
2023
Recognized in
consolidated
income statement
Charged
to equity
Translation
differences
and other
changes
At December 31,
2024
(€ thousand)
Deferred tax assets arising on:
Provisions
183,035
10,703
—
892
194,630
Intercompany profit on
inventory and obsolescence
119,920
15,522
—
194
135,636
Allowances for doubtful
accounts
5,060
1,787
—
(11)
6,836
Depreciation
17,782
92
—
(13)
17,861
Trademark step-up
78,678
(1,674)
—
—
77,004
Patent Box regime
94,268
39,224
—
—
133,492
Other
20,873
(10,217)
14,010
3,198
27,864
Deferred tax assets
(prior to offsetting)
519,616
55,437
14,010
4,260
593,323
Offsetting of deferred tax assets
(302,063)
(356,532)
Total deferred tax assets
217,553
236,791
Deferred tax liabilities arising on:
Depreciation
(3,458)
(645)
—
(155)
(4,258)
Capitalization of development
costs
(385,257)
(37,132)
—
—
(422,389)
Tax on undistributed earnings
(18,859)
(1,178)
—
—
(20,037)
Other
(31,335)
1,001
9,768
702
(19,864)
Total deferred tax liabilities
(prior to offsetting)
(438,909)
(37,954)
9,768
547
(466,548)
361
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Offsetting of deferred tax
liabilities
302,063
356,532
Total deferred tax liabilities
(136,846)
(110,016)
Total net deferred tax assets/
(liabilities)
80,707
17,483
23,778
4,807
126,775
At December 31,
2022
Recognized in
consolidated
income statement
Charged
to equity
Translation
differences
and other
changes
At December 31,
2023
(€ thousand)
Deferred tax assets arising on:
Provisions
171,914
11,121
—
—
183,035
Intercompany profit on inventory
and obsolescence
100,835
19,305
—
(220)
119,920
Allowances for doubtful
accounts
5,223
(166)
—
3
5,060
Depreciation
17,533
264
—
(15)
17,782
Trademark step-up
85,374
(6,696)
—
—
78,678
Patent Box regime
78,381
15,887
—
—
94,268
Other
20,948
2,537
(52)
(2,560)
20,873
Deferred tax assets
(prior to offsetting)
480,208
42,252
(52)
(2,792)
519,616
Offsetting of deferred tax assets
(276,826)
(302,063)
Total deferred tax assets
203,382
217,553
Deferred tax liabilities arising on:
Depreciation
(5,057)
1,507
—
92
(3,458)
Capitalization of development
costs
(355,574)
(29,683)
—
—
(385,257)
Tax on undistributed earnings
(10,578)
(8,281)
—
—
(18,859)
Other
(32,124)
(1,254)
6,403
(4,360)
(31,335)
Total deferred tax liabilities
(prior to offsetting)
(403,333)
(37,711)
6,403
(4,268)
(438,909)
Offsetting of deferred tax
liabilities
276,826
302,063
Total deferred tax liabilities
(126,507)
(136,846)
Total net deferred tax assets/
(liabilities)
76,875
4,541
6,351
(7,060)
80,707
The decision to recognize deferred tax assets is made for each company
in the Group by assessing whether the conditions exist for the future
recoverability of such assets by taking into account the basis of the most
recent forecasts from budgets and business plans.
Deferred taxes on the undistributed earnings of subsidiaries have not
been recognized, except in cases where it is probable the distribution
will occur in the foreseeable future. At December 31, 2024, the aggregate
amount of temporary differences related to remaining distributable
earnings of the Group’s subsidiaries where deferred tax liabilities have not
been recognized amounted to €286,653 thousand (€251,029 thousand
at December 31, 2023).
362
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(11)
OTHER INFORMATION BY NATURE
Personnel costs in 2024, 2023 and 2022 amount-
ed to €626,287 thousand, €575,215 thousand and
€527,316 thousand, respectively. These amounts in-
clude costs that were capitalized in connection with
product development activities. In 2024, 2023 and
2022 the Group had an average number of employ-
ees of is 5,327, 4,960 and 4,691, respectively.
Depreciation of property, plant and equipment
amounted to €299,638 thousand, €290,204 thou-
sand and €259,849 thousand for the years ended
December 31, 2024, 2023 and 2022, respectively
Amortization of intangible assets amounted
to €367,139 thousand, €372,101 thousand and
€286,376 thousand for the years ended December
31, 2024, 2023 and 2022, respectively.
(12)
EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable
to equity holders of Ferrari by the weighted average number of common
shares issued and outstanding during the period.
The following table provides the amounts used in the calculation of basic
earnings per share for the years ended December 31, 2024, 2023 and 2022:
For the years ended December 31,
2024
2023
2022
Profit attributable to owners of the Company
€ thousand
1,521,877
1,252,048
932,614
Weighted average number of common shares for basic
earnings per common share
thousand
179,743
181,220
182,836
Basic earnings per common share
€
8.47
6.91
5.11
DILUTED EARNINGS PER SHARE
For the years ended December 31, 2024, 2023 and 2022, the weighted
average number of shares for diluted earnings per share includes the
theoretical effect of the potential common shares that would be issued
for the Group’s equity incentive plans (assuming 100 percent of the
target awards vested). See Note 21 “Share-Based Compensation” for
additional details related to the Group’s equity incentive plans.
The following table provides the amounts used in the calculation of
diluted earnings per share for the years ended December 31, 2024, 2023
and 2022:
For the years ended December 31,
2024
2023
2022
Profit attributable to owners of the Company
€ thousand
1,521,877
1,252,048
932,614
Weighted average number of common shares for diluted earnings
per common share
thousand
179,992
181,511
183,121
Diluted earnings per common share
€
8.46
6.90
5.09
363
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table provides a reconciliation from the weighted average
number of common shares for basic earnings per share to the weighted
average number of common shares for diluted earnings per share.
For the years ended December 31,
Number of shares
2024
2023
2022
Weighted average number of common shares for basic earnings per share
179,743
181,220
182,836
Adjustments for calculation of diluted earnings per share:
Share-based compensation
249
291
285
Weighted average number of common shares for diluted earnings per share
179,992
181,511
183,121
(13)
GOODWILL
At December 31, 2024 and 2023 goodwill amounted
to €785,182 thousand.
In accordance with IAS 36, goodwill is not amor-
tized and is tested for impairment annually, or more
frequently if facts or circumstances indicate that
the asset may be impaired. Impairment testing is
performed by comparing the carrying amount and
the recoverable amount of the cash-generating unit
(CGU), which is represented by the entire Ferrari
Group. The recoverable amount of the CGU is the
higher of its fair value less costs of disposal and its
value in use.
The assumptions used in this process represent
management’s best estimate for the period under
consideration. The estimate of the value in use of the
CGU for purposes of performing the annual impair-
ment test was based on the following assumptions:
The expected future cash flows covering the
period from 2025 through 2028 have been derived
from the Ferrari business plan. In particular the esti-
mate considers expected EBITDA adjusted to reflect
the expected capital expenditure. These cash flows
relate to the CGU in its condition when preparing the
consolidated financial statements and exclude the
estimated cash flows that might arise from restruc-
turing plans or other structural changes. Expected
volumes and sales mix used for estimating the future
cash flows are based on assumptions that are consid-
ered reasonable and sustainable and represent the
best estimate of expected conditions regarding mar-
ket trends for the CGU over the period considered.
The expected future cash flows include a nor-
malized terminal period used to estimate the future
results beyond the time period explicitly consid-
ered, which were calculated by using the specific
medium/long-term growth rate for the sector equal
to 2.0 percent in 2024 (2.0 percent in 2023 and 2022).
The expected future cash flows have been
estimated in Euro, and discounted using a post-tax
discount rate appropriate for that currency, deter-
mined by using a base WACC of 8.45 percent in 2024
(9.21 percent in 2023 and 8.10 percent in 2022). The
WACC used reflects the current market assess-
ment of the time value of money for the period being
considered and the risks specific to the CGU under
consideration. The decrease in the WACC between
2024 and 2023 is primarily the result of a lower risk
free rate driven by central banks decreasing inter-
est rates in several regions where the Group oper-
ates, as well as a decrease in the equity risk premium
driven by market factors and conditions.
The recoverable amount of the CGU was signifi-
cantly higher than its carrying amount. Furthermore,
the exclusivity of the business, its historical profit-
ability and its future earnings prospects indicate
that the carrying amount of the goodwill will con-
tinue to be recoverable, even in the event of difficult
economic and market conditions.
See Note 2 “Material Accounting Policies—Use
of estimates and judgments—Climate-related mat-
ters—Goodwill” for additional details related to cli-
mate-related matters.
364
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(14)
INTANGIBLE ASSETS
Intangible assets are as follows:
Externally acquired
development costs
Development
costs internally
generated
Patents,
concessions
and licenses
Other intangible
assets
Total
(€ thousand)
Gross carrying amount at
December 31, 2022
2,334,817
1,007,704
291,379
58,665
3,692,565
Additions
272,975
175,405
23,849
14,919
487,148
Divestitures
—
—
—
(2,564)
(2,564)
Reclassifications
—
5,558
3,399
(3,399)
5,558
Translation differences and other
movements
—
(296)
(42)
167
(171)
Balance at December 31, 2023
2,607,792
1,188,371
318,585
67,788
4,182,536
Additions
306,559
169,908
26,453
3,954
506,874
Divestitures
(14,632)
(945)
(1,613)
(12)
(17,202)
Reclassifications
—
—
10,267
(9,684)
583
Translation differences and other
movements
2,633
(2,632)
—
(15,000)
(14,999)
Balance at December 31, 2024
2,902,352
1,354,702
353,692
47,046
4,657,792
Accumulated amortization at
December 31, 2022
1,510,124
567,930
258,995
48,128
2,385,177
Amortization
250,033
92,623
27,923
1,522
372,101
Divestitures
—
—
—
—
Reclassification
—
5,558
(4,283)
4,283
5,558
Translation differences and other
movements
—
—
(7)
8
1
Balance at December 31, 2023
1,760,157
666,111
282,628
53,941
2,762,837
Amortization
237,414
93,367
34,695
1,663
367,139
Divestitures
(2,881)
—
—
—
(2,881)
Reclassification
—
—
31
—
31
Translation differences and other
movements
—
3
—
(14,995)
(14,998)
Balance at December 31, 2024
1,994,690
759,475
317,354
40,609
3,112,128
Carrying amount at:
December 31, 2022
824,693
439,774
32,384
10,537
1,307,388
December 31, 2023
847,635
522,260
35,957
13,847
1,419,699
December 31, 2024
907,662
595,227
36,338
6,437
1,545,664
Additions were primarily attributable to externally acquired and internally
generated development costs relating to existing and new models.
365
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(15)
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are as follows:
Land
Industrial
buildings
Plant, machinery
and equipment
Other
assets
Advances and
assets under
construction
Total
(€ thousand)
Gross carrying amount at
December 31, 2022
131,990
498,052
3,070,534
258,673
238,614
4,197,863
Additions
2,014
29,948
113,282
36,416
242,155
423,815
Divestitures
—
(12,935)
(40,270)
(25,030)
(369)
(78,604)
Reclassifications
17,235
9,132
62,236
(2,303)
(88,603)
(2,303)
Translation differences and other
movements
(10)
(1,050)
(49)
(2,511)
(5)
(3,625)
Balance at December 31, 2023
151,229
523,147
3,205,733
265,245
391,792
4,537,146
Additions
1,565
56,504
105,175
60,804
332,908
556,956
Divestitures
—
(2,853)
(75,491)
(7,039)
(78)
(85,461)
Reclassifications
1
80,119
116,426
(6,600)
(224,842)
(34,896)
Translation differences and other
movements
18
509
(1,848)
4,459
(645)
2,493
Balance at December 31, 2024
152,813
657,426
3,349,995
316,869
499,135
4,976,238
Accumulated amortization at
December 31, 2022
—
219,376
2,343,325
177,337
—
2,740,038
Depreciation
—
21,654
243,633
24,917
—
290,204
Divestitures
—
(8,338)
(39,322)
(18,401)
—
(66,061)
Translation differences and other
movements
—
(624)
(15)
(1,596)
—
(2,235)
Balance at December 31, 2023
—
232,068
2,547,621
182,257
—
2,961,946
Depreciation
—
27,042
243,424
29,172
—
299,638
Divestitures
—
(1,516)
(72,308)
(6,540)
—
(80,364)
Reclassifications
—
(8,153)
(12,355)
(12,668)
—
(33,176)
Translation differences and other
movements
—
(56)
(4,226)
3,692
—
(590)
Balance at December 31, 2024
—
249,385
2,702,156
195,913
—
3,147,454
Carrying amount at:
December 31, 2022
131,990
278,676
727,209
81,336
238,614
1,457,825
of which right-of use assets
under IFRS 16
—
18,972
2,756
32,420
—
54,148
December 31, 2023
151,229
291,079
658,112
82,988
391,792
1,575,200
of which right-of use assets
under IFRS 16
—
22,971
3,396
41,888
—
68,255
December 31, 2024
152,813
408,041
647,839
120,956
499,135
1,828,784
of which right-of use assets
under IFRS 16
—
38,918
8,569
68,884
—
116,371
366
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Additions primarily relate to investments for car production and engine
assembly lines (including those for models to be launched in future years),
industrial tools needed for the production of cars and personalization
programs, as well as investments for the new e-building and the ongoing
construction of the new paint shop. The new e-building was inaugurated
in June 2024 and will be used to produce and develop models with internal
combustion, hybrid and full electric powertrains, as well as strategic
electrical components.
The following table summarizes the changes in the carrying amount of
right-of-use assets for the year ended December 31, 2024 and 2023:
Industrial
buildings
Plant, machinery
and equipment
Other assets
Total
(€ thousand)
Balance at December 31, 2022
18,972
2,756
32,420
54,148
Additions
16,746
2,069
23,238
42,053
Disposals
(4,597)
—
(3,008)
(7,605)
Depreciation
(7,933)
(1,402)
(10,254)
(19,589)
Translation differences and other movements
(217)
(27)
(508)
(752)
Balance at December 31, 2023
22,971
3,396
41,888
68,255
Additions
27,474
7,529
39,676
74,679
Disposals
(1,231)
2
(17)
(1,250)
Depreciation
(10,445)
(2,364)
(13,977)
(26,786)
Translation differences and other movements
149
10
1,314
1,473
Balance at December 31, 2024
38,918
8,569
68,884
116,371
Amounts recognized in the consolidated income statement in relation to
leases for the year ended December 31, 2024 and 2023 were as follows:
For the year ended December 31,
2024
2023
2022
(€ thousand)
Depreciation of right-of-use assets
26,786
19,589
16,833
Interest expense on lease liabilities
3,356
1,450
1,219
Variable lease payments not included in the measurement of lease liabilities
1,781
1,213
822
Expenses relating to short-term leases and leases of low-value assets
3,077
2,842
3,227
Total expenses recognized
35,000
25,094
22,101
For the year ended December 31, 2024 depreciation of right-of-use
assets amounted to €26,786 thousand and interest expense on lease
liabilities amounted to €3,356 thousand (€19,589 thousand and €1,450
thousand, respectively, for the year ended December 31, 2023 and
€16,833 thousand and €1,219 thousand respectively, for the year ended
December 31, 2022).
At December 31, 2024, the Group had contractual commitments for
the purchase of property, plant and equipment amounting to €397,473
thousand (€115,330 thousand at December 31, 2023). The increase in
contractual commitments reflects the period of structurally higher
capital spending as we make investments in infrastructure projects,
including the new paint shop, as well as broaden the Group’s architectures,
prioritize innovation and advanced technologies, and enrich the product
portfolio with hybrid and electric powertrains.
368
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(16)
INVESTMENTS AND OTHER FINANCIAL ASSETS
The composition of investments and other financial assets is as follows:
At December 31,
2024
2023
(€ thousand)
Investments accounted for using the equity method
63,438
55,200
Other securities and financial assets
17,384
12,471
Total investments and other financial assets
80,822
67,671
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD.
Changes in the carrying amount of investments accounted for using the
equity method during the period were as follows:
(€ thousand)
Balance at December 31, 2022
49,087
Proportionate share of net profit for the year ended December 31, 2023
6,137
Proportionate share of remeasurement of defined benefit plans and other movements
(24)
Balance at December 31, 2023
55,200
Proportionate share of net profit for the year ended December 31, 2024
8,245
Proportionate share of remeasurement of defined benefit plans and other movements
(7)
Balance at December 31, 2024
63,438
Investments accounted for using the equity method mainly relate to the
Group’s investment in Ferrari Financial Services GmbH (“FFS GmbH”),
a German entity that offers retail client financing in certain markets in
EMEA (primarily the UK, Germany and Switzerland). FFS GmbH is the
Group’s partnership with CA Auto Bank S.p.A. (“CA Auto Bank”, formerly
WFCA Bank S.p.A., “FCA Bank”), which, following the sale by the Stellantis
Group of its 50 percent ownership interest in FCA Bank to Crédit Agricole
Consumer Finance S.A. (“CACF”) in April 2023, is now fully owned by
CACF. Investments accounted for using the equity method also relate
to the Group’s investment in FS China Limited, a joint venture formed in
China in 2021 to manage certain lifestyle activities in the local market.
Summarized financial information relating to FFS GmbH at and for the
years ended December 31, 2024 and 2023 is presented below:
At December 31,
2024
2023
(€ thousand)
Assets
Non-current assets
4,825
3,566
Receivables from financing activities
1,371,071
1,187,535
Other current assets
8,766
29,590
Cash and cash equivalents
28,571
21,275
Total assets
1,413,233
1,241,966
369
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Equity and liabilities
Equity
125,040
108,134
Debt
1,126,177
999,206
Other liabilities
162,016
134,626
Total equity and liabilities
1,413,233
1,241,966
For the year ended December 31,
2024
2023
2022
(€ thousand)
Net revenues
88,597
66,446
52,100
Cost of sales
52,415
37,198
22,943
Selling, general and administrative costs
9,966
9,314
8,923
Other expenses/(income), net
2,826
1,574
1,116
Profit before taxes
23,390
18,360
19,118
Income tax expense
6,472
5,147
5,336
Net profit
16,918
13,213
13,782
OTHER SECURITIES AND FINANCIAL ASSETS
Other securities and financial assets primarily include Series C Formula
One Group Common Stock of Liberty Media Corporation, the group
responsible for the promotion of the Formula 1 World Championship,
which are measured at fair value and amounted to €15,816 thousand
at December 31, 2024 (€10,519 thousand at December 31, 2023) (the
“Liberty Media Shares”).
(17)
INVENTORIES
Inventories are as follows:
At December 31,
2024
2023
(€ thousand)
Raw materials
222,243
203,247
Semi-finished goods
239,388
229,791
Finished goods
626,563
515,476
Total inventories
1,088,194
948,514
The amount of inventory write-downs recognized as an expense within
cost of sales during 2024 was €36,932 thousand (€20,822 thousand in
2023 and €18,021 thousand in 2022).
370
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Changes in the provision for slow moving and obsolete inventories were
as follows:
2024
2023
(€ thousand)
At January 1,
123,428
110,963
Provision
36,932
20,822
Utilizations and other changes
(11,132)
(8,357)
At December 31,
149,228
123,428
(18)
CURRENT RECEIVABLES
AND OTHER CURRENT ASSETS
Current receivables and other current assets are as follows:
At December 31,
2024
2023
(€ thousand)
Trade receivables
349,176
261,380
Receivables from financing activities
1,661,632
1,451,158
Current tax receivables
15,918
11,616
Other current assets
137,763
130,228
Total
2,164,489
1,854,382
TRADE RECEIVABLES
The following table sets forth a breakdown of trade receivables by
nature:
At December 31,
2024
2023
(€ thousand)
Trade receivables due from:
Dealers
153,894
122,177
Sponsorship and commercial activities
81,863
32,357
Brand activities
26,189
30,587
Stellantis Group companies
3,654
20,398
Other
83,576
55,861
Total
349,176
261,380
Trade receivables due from dealers relate to receivables for the sale of
cars across the dealer network and are generally settled within 30 to 40
days from the date of invoice.
371
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Trade receivables due from sponsorship and commercial activities
mainly relate to the Group’s participation in the Formula 1 World
Championship
and
the
World
Endurance
Championship.
Trade
receivables due from brand activities relate to amounts receivable for
licensing and merchandising activities. Trade receivables due from
Stellantis Group companies mainly relate to the sale of engines and car
bodies to Maserati S.p.A., which is controlled by the Stellantis Group.
The contract with Maserati ended in December 2023. For additional
information, see Note 28 “Related Party Transactions”.
The Group is not exposed to significant concentration of third party
credit risk.
The following table sets forth a breakdown of trade receivables by
currency:
At December 31,
2024
2023
(€ thousand)
Trade receivables denominated in:
Euro
166,846
118,104
U.S. Dollar
152,537
118,233
Pound Sterling
12,814
6,096
Chinese Yuan
4,701
5,099
Japanese Yen
6,104
7,230
Other currencies
6,174
6,618
Total
349,176
261,380
Trade receivables are shown net of an allowance for doubtful accounts
determined on the basis of insolvency risk and historical experience,
adjusted for forward-looking factors specific to the receivables and
the economic environment. Additional provisions to the allowance for
doubtful accounts are recorded within selling, general and administrative
costs in the consolidated income statement.
Changes in the allowance for doubtful accounts of trade receivables
during the year were as follows:
2024
2023
(€ thousand)
At January 1
25,418
25,800
Additional provisions
10,884
2,767
Utilizations
(2,104)
(1,845)
Releases
(828)
(1,280)
Other changes
6
(24)
At December 31
33,376
25,418
372
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
RECEIVABLES FROM FINANCING ACTIVITIES
Receivables from financing activities relate to financing provided by the
Group to Ferrari clients to finance their car acquisitions in the United
States. The underlying receivables are denominated in U.S. Dollars and
are generally secured on the title of cars or other guarantees.
During 2024 the average contractual duration at inception of such
contracts was approximately 68 (67 months in 2023) and the weighted
average interest rate was approximately 8.3 percent (approximately 7.8
percent in 2023). Receivables for client financing are generally secured
on the titles of the related cars or other personal guarantees.
Receivables from financing activities are shown net of an allowance for
doubtful accounts and additional provisions are recorded within cost of
sales in the consolidated income statement. Changes in the allowance
for doubtful accounts of receivables from financing activities during the
year are as follows:
2024
2023
(€ thousand)
At January 1
11,165
9,950
Additional provisions
10,038
6,423
Utilizations
(5,293)
(3,509)
Releases
(57)
(1,327)
Other changes
694
(372)
At December 31
16,547
11,165
OTHER CURRENT ASSETS
Other current assets are detailed as follows:
At December 31,
2024
2023
(€ thousand)
Italian and foreign VAT credits
56,837
65,529
Prepayments
63,983
53,846
Other
16,943
10,853
Total other current assets
137,763
130,228
Other includes security deposits, amounts due from personnel and
other receivables.
At December 31, 2024, the Group had provided guarantees through
third parties amounting to €225,438 thousand (€236,910 thousand at
December 31, 2023), principally to (i) banks for a U.S. Dollar denominated
credit facility of FFS Inc., (ii) tax authorities for VAT reimbursements
according to Italian legislation and (iii) customs authorities for duties on
import and export activities.
373
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The analysis of receivables and other current assets (excluding
prepayments) by due date is as follows:
At December 31, 2024
Due within
one year
Due between one
and five years
Due beyond
five years
Overdue
Total
(€ thousand)
Trade receivables
302,025
—
—
47,151
349,176
Receivables from financing activities (1)
237,414
1,226,598
90,417
107,203
1,661,632
Current tax receivables
11,454
4,464
—
—
15,918
Other current assets (excluding prepayments)
73,389
—
—
391
73,780
Total
624,282
1,231,062
90,417
154,745
2,100,506
At December 31, 2023
Due within
one year
Due between one
and five years
Due beyond
five years
Overdue
Total
(€ thousand)
Trade receivables
225,445
—
—
35,935
261,380
Receivables from financing activities (1)
223,841
1,076,552
68,736
82,029
1,451,158
Current tax receivables
11,616
—
—
—
11,616
Other current assets (excluding prepayments)
76,382
—
—
—
76,382
Total
537,284
1,076,552
68,736
117,964
1,800,536
Excluding interest generated on these receivables. If a counterparty
to the receivables has failed to make at least one contractual payment
by the respective due date, the entire amount of the receivable is
considered overdue.
Overdue amounts represent receivables and other current assets
where payments are past their due date.
(19)
CURRENT FINANCIAL ASSETS AND
OTHER FINANCIAL LIABILITIES
Current financial assets are as follows:
At December 31,
2024
2023
(€ thousand)
Financial derivatives
19,350
55,562
Other financial assets
5,656
5,568
Current financial assets
25,006
61,130
Current financial assets and other financial liabilities mainly relate to
foreign exchange derivatives and interest rate caps.
374
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table sets forth a breakdown of derivative assets and
liabilities at December 31, 2024 and 2023.
At December 31,
2024
2023
Positive fair
value
Negative fair
value
Positive fair
value
Negative fair
value
(€ thousand)
Cash flow hedge:
Currency swaps
11,591
(58,911)
34,542
(10,170)
Interest rate caps
5,547
—
17,407
—
Commodities
—
—
—
(174)
Total Cash flow hedges
17,138
(58,911)
51,949
(10,344)
Other foreign exchange derivatives
2,212
(2,983)
3,613
(3,195)
Current financial assets/(liabilities)
19,350
(61,894)
55,562
(13,539)
Foreign currency derivatives that do not meet the requirements to be
recognized as cash flow hedges are presented as other foreign currency
derivatives. Interest rate caps relate to derivative instruments required
as part of certain securitization agreements.
The following tables provide an analysis of outstanding derivative
financial instruments by foreign currency based on their fair value and
notional amounts:
At December 31, 2024
At December 31, 2023
Fair Value
Notional
Amount
Fair Value
Notional
Amount
(€ thousand)
Currencies:
U.S. Dollar
(43,002)
2,818,516
32,069
2,515,057
Pound Sterling
(2,987)
157,264
(678)
145,216
Japanese Yen
5,119
270,514
14,086
392,343
Swiss Franc
(273)
116,872
(3,660)
106,911
Chinese Yuan
(2,880)
188,968
915
141,493
Other(1)
1,479
155,401
(709)
153,207
Total amount
(42,544)
3,707,535
42,023
3,454,227
Other mainly includes the Australian Dollar, the Canadian Dollar and the
Hong Kong Dollar.
At December 31, 2024 and 2023, substantially all derivative financial
instruments had a maturity of twelve months or less.
375
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
CASH FLOW HEDGES
The effects recognized in the consolidated income
statement mainly relate to currency risk management
and in particular the exposure to fluctuations in the
Euro/U.S. Dollar exchange rate for sales in U.S. Dollars.
The policy of the Group for managing foreign
currency risk normally requires hedging of a por-
tion of projected future cash flows from trading
activities and orders acquired (or contracts in prog-
ress) in foreign currencies that will occur within the
following 12 months. Derivatives relating to foreign
currency risk management are treated as cash flow
hedges where the derivative qualifies for hedge
accounting. The amounts recorded in the cash flow
hedge reserve within other comprehensive income
will be recognized in the consolidated income state-
ment according to the timing of the flows of the
underlying transactions. Management believes that
substantially all of the hedging effects arising from
these derivative contracts and recorded in the cash
flow hedge reserve will be recognized in the con-
solidated income statement within the following 12
months from the reporting date.
The Group reclassified gains and losses, net of the related tax effects,
from other comprehensive income/(loss) to the consolidated income
statement as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Net revenues/(costs)
20,827
48,393
(75,749)
Income tax (expense)/benefit
(5,811)
(13,502)
21,134
Total recognized in the consolidated income statement
15,016
34,891
(54,615)
The ineffectiveness of cash flow hedges was not material for the years
2024, 2023 and 2022.
(20)
EQUITY
SHARE CAPITAL
At December 31, 2024 and 2023 the fully paid up share capital of the
Company was €2,573 thousand, consisting of 193,923,499 common
shares and 63,349,112 special voting shares, all with a nominal value of
€0.01. At December 31, 2024, the Company had 14,879,168 common
shares and 16,239 special voting shares held in treasury, while at
December 31, 2023 the Company had 13,505,409 common shares and
16,240 special voting shares held in treasury. Shares in treasury include
shares repurchased under the Group’s share repurchase program,
which are recorded based on the transaction trade date. The increase
in common shares held in treasury primarily reflects the repurchase of
shares by the Company through its share repurchase program, partially
offset by shares assigned under the Group’s equity incentive plans. At
December 31, 2024 and 2023, the Company held in treasury 5.79 percent
and 5.26 percent of the total issued share capital of the Company,
respectively.1
The percentage of shares held in treasury compared to total issued share
capital remains substantially the same if calculated considering only
common shares held in treasury or if calculated considering common
shares and special voting shares held in treasury.
376
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table summarizes the changes in the number of outstanding
common shares and outstanding special voting shares of the Company
for the years ended December 31, 2024 and 2023:
Common Shares
Special Voting
Shares
Total Shares
Outstanding shares at December 31, 2022
181,953,498
63,343,913
245,297,411
Common shares repurchased under share repurchase program (1)
(1,630,171)
—
(1,630,171)
Common shares assigned under equity incentive plans (2)
94,763
—
94,763
Other changes (6)
—
(11,041)
(11,041)
Outstanding shares at December 31, 2023
180,418,090
63,332,872
243,750,962
Common shares repurchased under share repurchase program (4)
(1,440,264)
—
(1,440,264)
Common shares assigned under equity incentive plans (5)
41,790
—
41,790
Other changes (6)
24,715
1
24,716
Outstanding shares at December 31, 2024
179,044,331
63,332,873
242,377,204
(1)
Includes shares repurchased under the share repurchase
program between January 1, 2023 and December 31,
2023 based on the transaction trade date, for a total
consideration of €460,629 thousand, including transaction
costs and Sell to Cover, as described below.
(2)
On March 15, 2023, 80,305 common shares, which were
previously held in treasury, were assigned to participants of
the equity incentive plans as a result of the vesting of certain
performance share unit and retention restricted share
unit awards. On the same day, the Company purchased
34,671 common shares, for a total consideration of
€8,448 thousand, from a group of those employees who
were assigned shares in order to cover the individual’s
taxable income as is standard practice (“Sell to Cover”)
in a cross transaction. On July 17, 2023, the Company
assigned 49,129 common shares related to commercial
agreements with certain suppliers and other shares awards.
See Note 21 “Share-Based Compensation” for additional
details relating to the Group’s equity incentive plans.
(3)
Relates to the deregistration of certain special voting
shares under the Company’s special voting shares terms
and conditions.
(4)
Includes shares repurchased under the share repurchase
program between January 1, 2024 and December 31,
2024 based on the transaction trade date, for a total
consideration of €581,084 thousand, including transaction
costs and Sell to Cover, as described below.
(5)
On March 15, 2024, 76,979 common shares, which were
previously held in treasury, were assigned to participants of
the equity incentive plans as a result of the vesting of certain
performance share unit and retention restricted share unit
awards. On the same day, the Company purchased 35,189
common shares, for a total consideration of €13,548 thousand,
from a group of those employees who were assigned shares
in order to cover the individual’s taxable income as is standard
practice (“Sell to Cover”) in a cross transaction.
(6)
In relation to common shares, refers to share awards vested
under the broad-based employee share ownership plan.
THE LOYALTY VOTING STRUCTURE
The purpose of the loyalty voting structure is to re-
ward ownership of the Company’s common shares
and to promote stability of the Company’s share-
holder base by granting long-term shareholders of
the Company with special voting shares. Following
the separation of Ferrari from the Stellantis Group
(previously referred to as Fiat Chrysler Automobiles
N.V. or FCA prior to the merger between FCA and
Peugeot S.A. completed on January 16, 2021, which
resulted in the creation of Stellantis N.V.) in 2016,
Exor N.V. (“Exor”) and Piero Ferrari participate in the
Company’s loyalty voting program and, therefore,
effectively hold two votes for each of the common
shares they hold. Investors who purchase common
shares may elect to participate in the loyalty voting
program by registering their common shares in the
loyalty share register and holding them for three
years. The loyalty voting program will be affected by
means of the issue of special voting shares to eligi-
ble holders of common shares. Each special voting
share entitles the holder to exercise one vote at the
Company’s shareholder meetings. Only a minimal
dividend accrues to the special voting shares allo-
cated to a separate special dividend reserve, and the
special voting shares do not carry any entitlement to
any other reserve of the Group. The special voting
shares have only immaterial economic entitlements
and, as a result, do not impact the Company’s earn-
ings per share calculation.
RETAINED EARNINGS AND OTHER RESERVES
Retained earnings and other reserves includes:
• a share premium reserve of €5,768,544 thou-
sand at December 31, 2024 (€5,768,544 thou-
sand at December 31, 2023).
• a legal reserve of €110 thousand at December 31,
2024 and €46 thousand at December 31, 2023,
determined in accordance with Dutch law.
• a treasury reserve of €2,285,756 thousand at
December 31, 2024 and €1,704,673 thousand at
December 31, 2023.
• a share-based compensation reserve of €45,793
thousand at December 31, 2024 and €38,106
thousand at December 31, 2023.
377
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Following approval of the annual accounts by the
shareholders at the Annual General Meeting of the
Shareholders on April 17, 2024, a dividend distri-
bution of €2.443 per outstanding common share
was approved, corresponding to a total distribu-
tion of €439,918 thousand, which was fully paid in
2024. The distribution was made from the retained
earnings reserve.
Following approval of the annual accounts by
the shareholders at the Annual General Meeting of
the Shareholders on April 14, 2023, a dividend dis-
tribution of €1.810 per outstanding common share
was approved, corresponding to a total distribution
of €328,631 thousand, which was fully paid in 2023.
The distribution was made from the retained earn-
ings reserve.
Following approval of the annual accounts by the
shareholders at the Annual General Meeting of the
Shareholders on April 13, 2022, a dividend distribu-
tion of €1.362 per outstanding common share was
approved, corresponding to a total distribution of
€249,522 thousand, which was fully paid in 2022. The
distribution was made from the retained earnings
reserve.
OTHER COMPREHENSIVE INCOME/(LOSS)
The following table presents other comprehensive income/(loss):
For the years ended December 31,
2024
2023
2022
(€ thousand)
Items that will not be reclassified to the consolidated income
statement in subsequent periods:
(Losses)/Gains on remeasurement of defined benefit plans (1)
(691)
221
1,605
Total items that will not be reclassified to the consolidated income
statement in subsequent periods
(691)
221
1,605
Items that may be reclassified to the consolidated income
statement in subsequent periods:
(Losses)/Gains on cash flow hedging instruments arising during the period
(65,983)
22,109
17,149
(Gains)/Losses on cash flow hedging instruments reclassified
to the consolidated income statement
(20,827)
(48,393)
75,749
(Losses)/Gains on cash flow hedging instruments
(86,810)
(26,284)
92,898
Exchange differences on translating foreign operations
12,248
(6,323)
9,798
Total items that may be reclassified to the consolidated
income statement in subsequent periods
(74,562)
(32,607)
102,696
Total other comprehensive (loss)/income
(75,253)
(32,386)
104,301
Related tax impact
23,778
6,351
(25,002)
Total other comprehensive (loss)/income, net of tax
(51,475)
(26,035)
79,299
(1)
Includes a loss of €7 thousand, €30 thousand and €15 thousand for the years ended December 31, 2024, 2023 and 2022, respectively,
related to the Group’s proportionate share of the remeasurement of defined benefit plans of FFS GmbH, for which the Group holds
a 49.9% interest.Gains and losses on the remeasurement of defined benefit plans include actuarial gains and losses arising during the
period and are offset against the related net defined benefit liabilities.
378
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The tax effects relating to other comprehensive income/(loss) are
summarized in the following table:
For the years ended December 31,
2024
2023
2022
Pre-tax
balance
Related tax
impact
Net
balance
Pre-tax
balance
Related tax
impact
Net
balance
Pre-tax
balance
Related tax
impact
Net
balance
(€ thousand)
(Losses)/Gains on
remeasurement of defined
benefit plans
(691)
168
(523)
221
(52)
169
1,605
(376)
1,229
(Losses)/Gains on cash flow
hedging instruments
(86,810)
23,610
(63,200)
(26,284)
6,403
(19,881)
92,898
(24,626)
68,272
Exchange gains/(losses)
on translating foreign
operations
12,248
—
12,248
(6,323)
—
(6,323)
9,798
—
9,798
Total other comprehensive
(loss)/income
(75,253)
23,778
(51,475)
(32,386)
6,351
(26,035)
104,301
(25,002)
79,299
TRANSACTIONS WITH NON-CONTROLLING
INTERESTS
With the exception of dividends paid to non-con-
trolling interests, there were no transactions with
non-controlling
interests
for
the
years
ended
December 31, 2024, 2023 or 2022.
POLICIES AND PROCESSES FOR MANAGING
CAPITAL
The Group’s objectives when managing capital are
to create value for shareholders as a whole, safe-
guard business continuity and support the sustain-
able growth of the Group. As a result, the Group en-
deavors to maintain a satisfactory economic return
for its shareholders and guarantee economic ac-
cess to external sources of funds.
(21)
SHARE-BASED COMPENSATION
EQUITY INCENTIVE PLANS
The Group has several equity incentive plans un-
der which a combination of performance share
units (“PSUs”) and retention restricted share units
(“RSUs”), which each represent the right to receive
one Ferrari common share, have been awarded to
the Executive Chairman, the Chief Executive Officer
(“CEO”), members of the Ferrari Leadership Team
(hereinafter also the “FLT”) and other key employees
of the Group.EQUITY INCENTIVE PLAN 2021-2023
In the first quarter of 2024, 41,338 2021-2023 PSU
awards vested (representing 122 percent of the
target PSU awards) as a result of the achievement
of the related performance conditions and 29,550
2021-2023 RSU awards vested upon achievement
of the related service conditions As a result, 70,888
common shares, which were previously held in trea-
sury, were assigned to participants of the plan in the
first quarter of 2024. There are no further awards
outstanding for the Equity Incentive Plan 2021-2023.
EQUITY INCENTIVE PLAN 2022-2024
Under the Equity Incentive Plan 2022-2024 approved
in
2022,
the
Company
awarded
approximate-
ly 72 thousand 2022-2024 PSUs to the Executive
Chairman, the CEO, the remaining members of the
FLT and other employees of the Group, and approx-
imately 26 thousand 2022-2024 RSUs to members
of the FLT and other employees of the Group. These
PSUs and RSUs cover the three-year performance
and service periods from 2022 to 2024.
2022-2024 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators
as follows:
• SR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
379
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Each target is settled independently of the other
targets. In March 2025, 91,414 2022-2024 PSU
awards are expected to vest (representing approx-
imately 149 percent of the target PSU awards that
remained outstanding at the time of vesting) as a re-
sult of the achievement of the related performance
conditions (described above) and an equal number
of common shares held in treasury will be assigned
to participants of the plan, following which there will
be no further 2022-2024 PSU awards outstanding.
2022-2024 RSU AWARDS
In March 2025, 21,437 2022-2024 RSU awards are ex-
pected to vest as a result of the achievement of the
related service condition, which is the recipient’s
continued employment with the Company at the
time of vesting, and an equal number of common
shares held in treasury will be assigned to partici-
pants of the plan, following which there will be no
further 2022-2024 RSU awards outstanding.
EQUITY INCENTIVE PLAN 2023-2025
Under the Equity Incentive Plan 2023-2025 approved
in
2023,
the
Company
awarded
approximate-
ly 58 thousand 2023-2025 PSUs to the Executive
Chairman, the CEO, the remaining members of the
FLT and other employees of the Group, and approx-
imately 22 thousand 2023-2025 RSUs to members
of the FLT and other employees of the Group. These
PSUs and RSUs cover the three-year performance
and service periods from 2023 to 2025.
2023-2025 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators as
follows:
• TSR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
Each target is settled independently of the other tar-
gets. The awards vest in 2026 and the total number
of shares assigned upon vesting depends on the lev-
el of achievement of the targets.
2023-2025 RSU AWARDS
The awards vest in 2026, subject to the recipient’s
continued employment with the Company at the
time of vesting.
EQUITY INCENTIVE PLAN 2024-2026
Under a new Equity Incentive Plan 2024-2026 ap-
proved in 2024, the Company awarded approxi-
mately 41 thousand 2024-2026 PSUs to the Executive
Chairman, CEO, members of the FLT and other em-
ployees of the Group, and approximately 15 thou-
sand 2024-2026 RSUs to members of the FLT and
other employees of the Group. The 2024-2026 PSUs
and 2024-2026 RSUs cover the three-year perfor-
mance and service periods from 2024 to 2026.
2024-2026 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators as
follows:
• TSR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
Each target is settled independently of the other tar-
gets. The awards vest in 2027 and the total number
of shares assigned upon vesting depends on the lev-
el of achievement of the targets.
2024-2026 RSU AWARDS
The awards vest in 2027, subject to the recipient’s
continued employment with the Company at the
time of vesting.
Supplemental information relating to the Equity
Incentive Plan 2024-2026 is summarized below.
380
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
TSR TARGET
The number of 2024-2026 PSUs with a TSR Target that vest under
the Equity Incentive Plan 2024-2026 is based on the Company’s TSR
performance over the relevant performance period compared to an
industry-specific peer group as summarized below.
Ferrari TSR Ranking
% of Target Awards that Vest
1
175%
2
150%
3
125%
4
100%
5
75%
6
50%
>6
0%
The defined peer group (including the Company) for the TSR Target is
presented below.
Ferrari
Aston Martin
Burberry
Estee Lauder
Hermes
Kering
LVMH
Mercedes Benz Group AG
Moncler
Prada
Richemont
EBITDA TARGET
The number of 2024-2026 PSUs with an EBITDA Target that vest under the
Equity Incentive Plan 2024-2026 is determined by comparing Adjusted
EBITDA to the Adjusted EBITDA targets derived from the Group’s
business plan, as summarized below.
Actual Adjusted EBITDA Compared to Business Plan
% of Awards that Vest
+15%
175%
+10%
150%
+5%
125%
Business Plan Target
100%
-5%
75%
<-5%
—%
FAIR VALUES AND KEY ASSUMPTIONS
The fair value of the PSUs and RSUs that were awarded under the
Equity Incentive Plan 2024-2026, which is determined based on actuarial
calculations that apply certain assumptions and take into consideration
the specific characteristics of the awards granted, is summarized in the
following table.
Equity Incentive Plan 2024-2026
PSUs
€386.05
RSUs
€383.40
381
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The fair value of the 2024-2026 PSU awards was measured at the grant
date using a Monte Carlo Simulation model. The fair value of the 2024-
2026 RSU awards was measured using the share price at the grant date
adjusted for the present value of future distributions which the recipients
will not receive during the vesting period.
The key assumptions utilized to calculate the grant-date fair values of the
PSUs that were awarded under the Equity Incentive Plan 2024-2026 are
summarized below:
Equity Incentive Plan 2024-2026
Grant date share price
€390.50
Expected volatility
26.34%
Dividend yield
0.61%
Risk-free rate
3.00%
The expected volatility was based on the observed volatility of the
defined peer group. The risk-free rate was based on the iBoxx sovereign
Eurozone yield.
BROAD-BASED EMPLOYEE SHARE
OWNERSHIP PLAN
In November 2023 the Company announced that it
would launch a broad-based employee share own-
ership plan under which each employee will be given
the option to become a shareholder of the Company,
receiving a one-off grant of shares worth up to a max-
imum of approximately €2 thousand. If the employee
holds the shares for at least 36 months, the Company
will grant them an additional tranche of shares, from a
minimum of one share and up to 15 percent of the val-
ue of the first allocation. For the year ended December
31, 2023, the Company recognized €10,222 thousand
as share-based compensation expense and an in-
crease to other reserves within equity in relation to
the shares awarded under the broad-based employ-
ee share ownership plan. In 2024, 24,715 share awards
vested and the Company granted an additional 2,796
share awards that are expected to vest in 2025.
OTHER SHARE-BASED COMPENSATION
During 2022, the Company awarded 15,271 share
awards, which each represent the right to receive
one Ferrari common share, to certain employees, of
which 6,643 share awards vested immediately at the
grant date. In 2023 6,838 share awards vested, while
1,309 and 279 share awards were forfeited in 2023
and 2024, respectively. The fair value of the awards
was equal to €203 per award, measured using the
share price at the grant date adjusted for the present
value of future distributions which the recipients will
not receive during the vesting period.
The Company also provides share-based pay-
ments for services received as part of commercial
agreements with certain suppliers.
OUTSTANDING SHARE AWARDS
The following table presents the changes to the outstanding share
awards under the Group’s share-based payment arrangements:
PSU Awards
RSU Awards
Other Awards
Total Outstanding
Awards
Balance at December 31, 2022
140,205
87,189
57,405
284,799
Granted
58,381
21,939
63,217
143,537
Vested
(36,090)
(32,339)
(55,614)
(124,043)
Forfeited
(8,117)
(3,544)
(1,309)
(12,970)
Balance at December 31, 2023
154,379
73,245
63,699
291,323
Granted
40,885
15,401
2,796
59,082
Vested
(33,924)
(29,550)
(24,715)
(88,189)
Forfeited and other
(3,961)
(2,241)
(7,102)
(13,304)
Balance at December 31, 2024
157,379
56,855
34,678
248,912
382
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
SHARE-BASED COMPENSATION EXPENSE
The following table presents the share based compensation expense
recognized for the years ended December 31, 2024, 2023 and 2022, as
well as the unrecognized share-based compensation at December 31,
2024, 2023 and 2022.
For the years ended December 31,
2024
2023
2022
(€ thousand)
Equity incentive plans and other share-
based awards
18,280
15,154
16,172
Commercial agreements with
suppliers
4,813
4,563
4,688
Broad-based employee share
ownership plan
875
10,222
—
Total share-based compensation
expense
23,968
29,939
20,860
At December 31,
2024
2023
2022
(€ thousand)
Unrecognized share-based
compensation expense
20,699
12,954
16,069
(22)
EMPLOYEE BENEFITS
The Group’s provisions for employee benefits are as follows:
At December 31,
2024
2023
(€ thousand)
Present value of defined benefit obligations:
Italian employee severance indemnity (TFR)
13,446
13,903
Total present value of defined benefit obligations
13,446
13,903
Other provisions for employees
120,701
109,142
Total Provisions for employee benefits
134,147
123,045
DEFINED CONTRIBUTION PLANS
The Group recognizes the cost for defined contribu-
tion plans over the period in which the employee ren-
ders service and classifies this by function in cost of
sales, selling, general and administrative costs and
research and development costs. The total income
statement expense for defined contributions plans
in the years ended December 31, 2024, 2023 and
2022 was €21,324 thousand, €18,832 thousand and
€16,944 thousand, respectively.
DEFINED BENEFIT OBLIGATIONS
ITALIAN EMPLOYEE SEVERANCE INDEMNITY (TFR)
Trattamento di fine rapporto or “TFR” relates to the
amounts that employees in Italy are entitled to receive
when they leave the company and is calculated based
on the period of employment and the taxable earn-
ings of each employee. Under certain conditions the
entitlement may be partially advanced to an employee
during the employee’s working life.
The Italian legislation regarding this scheme was
amended by Law 296 of 27 December 2006 and subse-
383
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
quent decrees and regulations issued in the first part
of 2007. Under these amendments, companies with
at least 50 employees are obliged to transfer the TFR
to the “Treasury fund” managed by the Italian state-
owned social security body (“INPS”) or to supplemen-
tary pension funds. Prior to the amendments, accru-
ing TFR for employees of all Italian companies could
be managed by the company itself. Consequently,
the Italian companies’ obligation to INPS and the con-
tributions to supplementary pension funds take the
form, under IAS 19 revised, of “Defined contribution
plans” whereas the amounts recorded in the provi-
sion for employee severance pay retain the nature of
“Defined benefit plans”. Accordingly, the provision for
employee severance indemnity in Italy consists of the
residual obligation for TFR until December 31, 2006.
This is an unfunded defined benefit plan as the bene-
fits have already been almost entirely earned, with the
sole exception of future revaluations. Since 2007 the
scheme has been classified as a defined contribution
plan, and the Group recognizes the associated cost,
being the required contributions to the pension funds,
over the period in which the employee renders ser-
vice.
The following table summarizes the changes in the defined benefit
obligations relating to the TFR liability:
Total
Amounts at December 31, 2022
15,142
Included in the consolidated income statement
518
Included in other comprehensive income/loss (*)
(221)
Benefits paid
(1,536)
Amounts at December 31, 2023
13,903
Included in the consolidated income statement
467
Included in other comprehensive income/loss (*)
691
Benefits paid
(1,615)
Amounts at December 31, 2024
13,446
(*) Relates to actuarial losses/(gains) from financial assumptions.
Amounts recognized in the consolidated income statement relating to
the TFR liability are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Current service cost
—
—
—
Interest expense
467
518
22
Total recognized in the consolidated income statement
467
518
22
The discount rates used for the measurement of the Italian TFR obligation
are based on yields of high-quality (AA- rated) fixed income securities for
which the timing and amounts of payments match the timing and amounts
of the projected benefit payments. For this plan, the single weighted
average discount rate that reflects the estimated timing and amount
of the scheme future benefit payments for 2024 is equal to 3.4 percent
(4.1 percent in 2023 and 3.8 percent in 2022). The average duration of
the Italian TFR was approximately 6 years at December 31, 2024 (6 years
and 7 years at December 31, 2023 and 2022, respectively). Retirement
or employee leaving rates are developed to reflect actual and projected
Group experience and legal requirements for retirement in Italy.
Current service cost is recognized by function in cost of sales, selling,
general and administrative costs or research and development costs.
384
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The expected future benefit payments for the defined benefit obligations
(Italian TFR obligation) as of December 31, 2024 are as follows:
(€ thousand)
2025
1,476
2026
1,395
2027
1,752
2028
1,267
2029
1,083
2030 - 2034
5,778
Total
12,751
The sensitivity of the defined benefit obligations to changes in the
weighted principal assumptions is:
At December 31,
2024
2023
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
(736)
819
(778)
868
The above sensitivity analysis is based on an assumed change in the
discount rate while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may
be correlated. When calculating the sensitivity of the defined benefit
obligation to significant actuarial assumptions the same method has
been applied as when calculating the defined benefit liability recognized
in the statement of the financial position.
OTHER PROVISIONS FOR EMPLOYEES
Other provisions for employees consist of the expected future amounts
payable to employees in connection with other remuneration schemes,
which are not subject to actuarial valuation, including long-term bonus plans.
At December 31, 2024, other provisions for employees comprised
short-term bonus benefits amounting to €116,671 thousand (€105,043
thousand at December 31, 2023) and other benefits amounting to €4,030
thousand (€4,099 thousand at December 31, 2023), primarily relating
to jubilee benefits granted to certain employees in recognition of time
served with the Group.
385
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(23)
PROVISIONS
Movements in provisions are as follows:
At December
31, 2023
Additional
provisions
Utilization
Releases
Translation
differences
Reclassification
and other
movements
At December
31, 2024
(€ thousand)
Warranty and recall
campaigns provision
130,498
92,351
(61,133)
(9,892)
354
—
152,178
Legal proceedings
and disputes
7,480
4,995
(291)
(490)
191
14
11,899
Environmental
and other risks
49,298
14,716
(2,204)
(22,004)
473
1,856
42,135
Total provisions
187,276
112,062
(63,628)
(32,386)
1,018
1,870
206,212
WARRANTY AND RECALL CAMPAIGNS
The provision for warranty and recall campaigns rep-
resents the best estimate of commitments given by
the Group for contractual, legal, or constructive ob-
ligations arising from product warranties given for
a specified period of time. Warranty and recall cam-
paigns provisions are recognized upon shipment and
estimated on the basis of the Group’s past experience
and contractual terms. Related costs are recognized
within cost of sales.
LEGAL PROCEEDINGS AND DISPUTES
The provision for legal proceedings and disputes rep-
resents management’s best estimate of the expendi-
tures expected to be required to settle or otherwise
resolve legal proceedings and disputes. This class of
claims relates to allegations by contractual counter-
parties that the Group has violated the terms of the
arrangements, including by terminating the applica-
ble relationships. Judgments in these proceedings
may be issued in 2025 or beyond, although any such
judgments may remain subject to ongoing judicial
review. While the outcome of these proceedings is
uncertain, any losses in excess of the provisions re-
corded are not expected to be material to the Group’s
financial condition or results of operations. Additions
to the provision for legal proceedings and disputes
are recognized within other expenses, net.
ENVIRONMENTAL AND OTHER RISKS
The provision for environmental and other risks pri-
marily relates to environmental risks, including those
relating to emissions regulations, as well as to dis-
putes and matters which are not subject to legal pro-
ceedings, including disputes with suppliers, distribu-
tors, employees and other parties.
The following table presents where the additional provisions to
environmental and other risks recognized for the years ended
December 31, 2024, 2023 and 2022 were recorded within the consolidated
income statement.
For the years ended December 31,
2024
2023
2022
(€ thousand)
Recorded in the consolidated income statement within:
Cost of sales
14,136
25,128
15,616
Selling, general and administrative costs
580
1,398
1,562
Total
14,716
26,526
17,178
Releases of the provision for environmental and other risks primarily
related to Ferrari being recognized in 2024 as a small volume
manufacturer (SVM) in the United States for certain model years, as well
as more favorable market conditions for car emissions credits.
386
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(24)
DEBT
The following table provides a breakdown of debt by nature and split
between current and non-current.
At December 31,
2024
2023
Current
Non-current
Total
Current
Non-current
Total
(€ thousand)
Bonds and notes
459,056
953,917
1,412,973
—
903,673
903,673
Asset-backed financing (Securitizations)
649,173
693,082
1,342,255
514,597
651,876
1,166,473
Borrowings from banks and other financial
institutions
143,800
270,833
414,633
166,763
124,167
290,930
Lease liabilities
26,491
99,779
126,270
16,450
56,597
73,047
Other debt
55,757
—
55,757
43,063
—
43,063
Total debt
1,334,277
2,017,611
3,351,888
740,873
1,736,313
2,477,186
The following tables present the change in debt, indicating separately
financing cash flows and other movements.
Financing cash flows
Other movements
Balance at
December 31,
2023
Proceeds from
borrowings
Repayments of
borrowings
Interest
accrued/(paid)
and other 1
Translation
differences
Balance at
December 31,
2024
(€ thousand)
Bonds and notes
903,673
496,145
—
13,155
—
1,412,973
Asset-backed financing
(Securitizations)
1,166,473
340,499
(243,649)
461
78,471
1,342,255
Borrowings from banks and
other financial institutions
290,930
225,000
(104,690)
(672)
4,065
414,633
Lease liabilities
73,047
—
(22,001)
73,429
1,795
126,270
Other debt
43,063
51,022
(41,297)
—
2,969
55,757
Total debt
2,477,186
1,112,666
(411,637)
86,373
87,300
3,351,888
Financing cash flows
Other movements
Balance at
December
31, 2022
Proceeds from
borrowings
Repayments of
borrowings
Interest
accrued/(paid)
and other 1,2
Translation
differences
Balance at
December
31, 2023
(€ thousand)
Bonds and notes
1,490,319
—
(575,702)
(10,944)
—
903,673
Asset-backed financing
(Securitizations)
1,105,425
151,217
(49,611)
445
(41,003)
1,166,473
Borrowings from banks and
other financial institutions
113,165
250,000
(72,500)
2,891
(2,626)
290,930
Lease liabilities
57,423
—
(17,691)
34,448
(1,133)
73,047
Other debt
45,447
34,596
(35,566)
—
(1,414)
43,063
Total debt
2,811,779
435,813
(751,070)
26,840
(46,176)
2,477,186
(1)
Other changes in lease liabilities relate entirely to non-cash
movements for the recognition of additional lease liabilities
in accordance with IFRS 16.
(2)
Includes gains of €7,940 thousand realized on the partial
cash tender executed during the third quarter of 2023 on a
bond due in 2025.
387
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
CONTRACTUAL UNDISCOUNTED CASH FLOWS
The following tables present the contractual maturities (contractual
undiscounted cash flows, including interest) of the Group’s debt based
on relevant maturity groupings.
Contractual cash flows at December 31, 2024
Less than
1 year
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
As reported at
December 31,
2024 (*)
(€ thousand)
Bonds and notes
480,802
23,075
218,525
812,804
1,535,206
1,412,973
Asset-backed financing (Securitizations)
685,427
435,082
282,283
—
1,402,792
1,342,255
Borrowings from banks and other financial
institutions
152,858
53,683
234,312
—
440,853
414,633
Lease liabilities
29,182
24,390
49,052
36,912
139,536
126,270
Other debt
55,757
—
—
—
55,757
55,757
Total debt
1,404,026
536,230
784,172
849,716
3,574,144
3,351,888
Contractual cash flows at December 31, 2023
Less than
1 year
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
As reported at
December 31,
2023 (*)
(€ thousand)
Bonds and notes
11,714
458,619
14,850
460,106
945,289
903,673
Asset-backed financing (Securitizations)
542,960
390,256
277,783
—
1,210,999
1,166,473
Borrowings from banks and other financial
institutions
172,441
83,047
46,813
—
302,301
290,930
Lease liabilities
17,934
12,571
28,131
22,316
80,952
73,047
Other debt
43,063
—
—
—
43,063
43,063
Total debt
788,112
944,493
367,577
482,422
2,582,604
2,477,186
(*) As reported in the consolidated statement of financial position
BONDS AND NOTES
2025 BOND
On May 27, 2020 the Company issued 1.5 percent
coupon notes due May 2025 (“2025 Bond”), having
a principal of€650 million. The notes were issued at
a discount for an issue price of 98.898 percent, re-
sulting in net proceeds of €640,073 thousand, after
related expenses, and a yield to maturity of 1.732 per-
cent. The bond was admitted to trading on the reg-
ulated market of Euronext Dublin. Following a cash
tender offer, in July 2023, the Group accepted for
purchase valid tenders of the 2025 Bond for an ag-
gregate nominal amount of €199,037 thousand and
at a purchase price of €191,097 thousand, resulting
in gains of €7,940 thousand, which were recognized
within financial income. The repurchases were set-
tled in July 2023. The amount outstanding of the 2025
Bond at December 31, 2024 was €454,449 thou-
sand, including accrued interest of €4,059 thousand
(€453,027 thousand, including accrued interest of
€4,097 thousand at December 31, 2023).
2030 BOND
On May 21, 2024, the Company issued 3.625 percent
senior notes due May 2030 (“2030 Bond”) having a
principal of €500 million. The notes were issued at
a discount for an issue price of 99.677 percent, re-
sulting in net proceeds of €496,145 thousand, after
related expenses, and a yield to maturity of 3.686
percent. The bond was admitted to trading on the
regulated market of Euronext Dublin. The pro-
ceeds from the 2030 Bond are intended to be used
for general corporate purposes. The amount out-
standing of the 2030 Bond December 31, 2024 was
€507,678 thousand, including accrued interest of
€11,173 thousand.
388
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
2029 AND 2031 NOTES
On July 31, 2019, the Company issued 1.12 percent
senior notes due August 2029 (“2029 Notes”) and
1.27 percent senior notes due August 2031 (“2031
Notes”) through a private placement to certain U.S.
institutional investors, each having a principal of
€150 million. The net proceeds from the issuances
amounted to €298,316 thousand and the yields to
maturity on an annual basis equal the nominal cou-
pon rates of the notes. The 2029 Notes and the 2031
Notes are primarily used for general corporate pur-
poses, including the funding of capital expenditures.
The amount outstanding of the 2029 Notes at
December 31, 2024 was €150,302 thousand, including
accrued interest of €700 thousand (€150,218 thou-
sand, including accrued interest of €700 thousand at
December 31, 2023). The amount outstanding of the
2031 Notes at December 31, 2024 was €150,315 thou-
sand, including accrued interest of €794 thousand
(€150,246 thousand including accrued interest of
€794 thousand at December 31, 2023).
2032 NOTES
On July 29, 2021, the Company issued 0.91 per-
cent senior notes due January 2032 (“2032 Notes”)
through a private placement to certain U.S. institu-
tional investors having a principal of €150 million.
The net proceeds from the issuance amounted to
€149,495 thousand and the yield to maturity on an
annual basis equals the nominal coupon rates of the
notes. The 2032 Notes are used for general corpo-
rate purposes. The amount outstanding of the 2032
Notes at December 31, 2024 was €150,229 thou-
sand, including accrued interest of €576 thousand
(€150,182 thousand, including accrued interest of
€587 thousand at December 31, 2023).
The aforementioned bonds and notes impose cove-
nants on Ferrari including: (i) negative pledge claus-
es which require that, in case any security interest
upon assets of Ferrari is granted in connection with
other notes or debt securities with the consent of
Ferrari are, or are intended to be, listed, such securi-
ty should be equally and ratably extended to the out-
standing notes, subject to certain permitted excep-
tions; (ii) pari passu clauses, under which the notes
rank and will rank pari passu with all other present
and future unsubordinated and unsecured obliga-
tions of Ferrari; (iii) events of default for failure to pay
principal or interest or comply with other obligations
under the notes with specified cure periods or in the
event of a payment default or acceleration of indebt-
edness or in the case of certain bankruptcy events;
and (iv) other clauses that are customarily applica-
ble to debt securities of issuers with a similar credit
standing. A breach of these covenants may require
the early repayment of the notes. At December 31,
2024 and 2023, Ferrari was in compliance with the
covenants of the bonds and notes.
ASSET-BACKED FINANCING
(SECURITIZATIONS)
As a means of diversifying its sources of funds, the
Group sells certain of its receivables originated by
its financial services activities in the United States
through asset-backed financing or securitization
programs (the terms asset-backed financing and
securitization programs are used synonymously
throughout this document), without transferring the
risks typically associated with the related receivables.
As a result, the receivables sold through securitiza-
tion programs are still consolidated until collection
from the customer. The securitization agreements
for both programs require the maintenance of hedg-
ing through interest rate cap derivatives.
The following table presents information relating to the revolving
securitization programs.
Funding Limit 2
Amount Outstanding
at December 31, 2024
Amount Outstanding
at December 31, 2023
Maturity Date
Program
($ million)
Syndicated program (retail) (1)
1,050
974
977
December 2026
Program lease/retail (1)
475
420
312
November 2025
Total asset-backed financing
(Securitizations)
1,525
1,394
1,289
(1)
At December 31, 2024 the notes relating to the retail
securitization program bore interest at a rate per annum
equal to the aggregate of a synthetic base rate substantially
replicating the LIBOR plus a margin of 79 basis points
and the notes relating to the leasing/retail securitization
program bore interest at a rate per annum equal to the
aggregate of SOFR plus a margin of 70 basis points.
(2)
Excluding accrued interest.
Cash collected from the settlement of receivables under securitization
389
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
programs is subject to certain restrictions regarding its use and is
primarily applied to repay principal and interest of the related funding.
Such cash amounted to €53,644 thousand at December 31, 2024
(€31,820 thousand at December 31, 2023).
BORROWINGS FROM BANKS
AND OTHER FINANCIAL INSTITUTIONS
The following table presents information relating to borrowings from
banks and other financial institutions.
Amount Outstanding
at December 31,
Currency
2024
2023
Maturity Date
Borrowing Entity
(€ thousand)
Ferrari NV (1)
EUR
150,142
—
December 2028
Ferrari NV (1)
EUR
84,115
130,224
January 2026
Ferrari NV (1)
EUR
75,497
—
January 2027
Ferrari NV (1)
EUR
41,682
75,040
March 2026
Ferrari Financial Services, Inc. (2)
USD
63,181
73,153
April 2025
Ferrari SpA (3)
EUR
16
12,513
Total borrowings from banks and other
financial institutions
414,633
290,930
(1)
Term loans bearing an average interest rate of 3.441
percent as of December 31, 2024.
(2)
Financial liabilities of FFS Inc to support financial services
activities bearing interest at SOFR plus 83 basis points.
(3)
At December 31, 2023 relates to an amortized term loan
repaid in June 2024. At December 31, 2024 relates to
banking fees and interest.
LEASE LIABILITIES
The Group recognizes lease liabilities in relation to right-of-use assets in
accordance with IFRS 16 — Leases. At December 31, 2024 lease liabilities
amounted to €126,270 thousand (€73,047 thousand at December 31, 2023).
OTHER DEBT
Other debt mainly relates to U.S. based finan-
cial service activities with specific reference to
expected cash out for new funding request as per
contractual commitment.
COMMITTED CREDIT LINES
At December 31, 2024, the Group had total com-
mitted credit lines available and undrawn amount-
ing to €550 million and with maturities ranging from
2025 to 2026 (€600 million at December 31, 2023).
390
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(25)
OTHER LIABILITIES
An analysis of other liabilities is as follows:
At December 31,
2024
2023
(€ thousand)
Advances and security deposits
553,771
516,096
Deferred income
335,524
295,683
Accrued expenses
100,314
100,305
Payables to personnel
43,110
44,880
Social security payables
28,532
25,857
Other
44,970
40,146
Total other liabilities
1,106,221
1,022,967
Advances and security deposits mainly include advances received from
customers for the purchase of Ferrari cars, mainly for our Icona, limited
edition and Special Series models, as well as certain Range models in
selected markets. The advances are recognized in net revenues when
the cars are shipped.
Deferred
income
primarily
includes
amounts
received
under
maintenance and power warranty programs of €300,599 thousand at
December 31, 2024 and €262,644 thousand at December 31, 2023, which
are deferred and recognized as net revenues over the length of the
maintenance program. Of the total liability related to maintenance and
power warranty programs at December 31, 2024, the Group expects to
recognize in net revenues approximately €71 million in 2025, €69 million
in 2026, €52 million in 2027 and €109 million in periods subsequent to
2027. Deferred income also includes amounts collected under various
other agreements, which are dependent upon the future performance
of a service or other act of the Group.
Changes in the Group’s contract liabilities for maintenance and power
warranties, and advances from customers, were as follows:
At December
31, 2023
Additional
amounts arising
during the period
Amounts
recognized
within revenue
Other
changes
At December
31, 2024
(€ thousand)
Advances from customers
510,625
981,694
(945,687)
713
547,345
Maintenance and power warranty programs
262,644
136,420
(98,393)
(72)
300,599
At December
31, 2022
Additional
amounts arising
during the period
Amounts
recognized
within revenue
Other
changes
At December
31, 2023
(€ thousand)
Advances from customers
446,394
990,468
(925,406)
(831)
510,625
Maintenance and power warranty programs
239,879
112,362
(89,617)
20
262,644
391
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(26)
TRADE PAYABLES
Trade payables of €945,657 thousand at December 31, 2024 (€930,560
thousands at December 31, 2023) are entirely due within one year. The
carrying amount of trade payables is considered to be equivalent to
their fair value.
(27)
FAIR VALUE MEASUREMENT
IFRS 13 — Fair Value Measurement establishes a
three level hierarchy for the inputs to the valuation
techniques used to measure fair value by giving the
highest priority to quoted prices (unadjusted) in ac-
tive markets for identical assets and liabilities (level
1 inputs) and the lowest priority to unobservable in-
puts (level 3 inputs). In some cases, the inputs used to
measure the fair value of an asset or a liability might
be categorized within different levels of the fair val-
ue hierarchy. In those cases, the fair value measure-
ment is categorized in its entirety in the same level of
the fair value hierarchy at the lowest level input that
is significant to the entire measurement.
Levels used in the hierarchy are as follows:
• Level 1 inputs are quoted prices (unadjusted) in ac-
tive 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.
Assets and liabilities that are measured at fair value
on a recurring basis.
The following table shows the fair value hierarchy for financial assets
and liabilities that are measured at fair value on a recurring basis at
December 31, 2024 and 2023:
At December 31, 2024
Note
Level 1
Level 2
Level 3
Total
(€ thousand)
Investments and other financial assets
16
16,897
—
—
16,897
Current financial assets
19
—
19,350
—
19,350
Total assets
16,897
19,350
—
36,247
Other financial liabilities
19
—
61,894
—
61,894
Total liabilities
—
61,894
—
61,894
At December 31, 2023
Note
Level 1
Level 2
Level 3
Total
(€ thousand)
Investments and other financial assets
16
11,982
—
—
11,982
Current financial assets
19
—
55,562
—
55,562
Total assets
11,982
55,562
—
67,544
Other financial liabilities
19
—
13,539
—
13,539
Total liabilities
—
13,539
—
13,539
392
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
There were no transfers between fair value hierar-
chy levels for the periods presented.
The fair value of current financial assets and
other financial liabilities relates to derivative financial
instruments and is measured by taking into consid-
eration market parameters at the balance sheet date,
using widely accepted valuation techniques. In par-
ticular, the fair value of foreign currency derivatives
(forward contracts, currency swaps and options and
interest rate caps is determined by taking the prevail-
ing foreign currency exchange rates and interest
rates, as applicable, at the reporting date.
The par value of cash and cash equivalents usu-
ally approximates fair value due to the short matu-
rity of these instruments, which consist primarily of
current bank accounts.
Assets and liabilities not measured at fair value on a
recurring basis
For financial instruments represented by short-
term receivables and payables, for which the pres-
ent value of future cash flows does not differ sig-
nificantly from carrying value, the Group assumes
that carrying value is a reasonable approximation
of the fair value. In particular, the carrying amount
of current receivables and other current assets and
of trade payables and other liabilities approximates
their fair value.
The following table presents the carrying amount and the fair value for
the most relevant categories of financial assets and financial liabilities
not measured at fair value on a recurring basis:
At December 31,
2024
2023
Note
Carrying
amount
Fair value
Carrying
amount
Fair value
(€ thousand)
Receivables from financing activities
18
1,661,632
1,661,632
1,451,158
1,451,158
Debt
24
3,351,888
3,348,721
2,477,186
2,462,716
The Group has determined that the carrying amount of the majority of
its debt approximates its fair value since either (i) the interest payable on
the debt is close to current market rates, and/or (ii) the debt is of a short-
term nature. The only exception is the Group’s debt that is publicly listed
for which the fair value is based on quoted market prices.
(28)
RELATED PARTY TRANSACTIONS
Pursuant to IAS 24 — Related Party Disclosures
(“IAS 24”), the related parties of Ferrari include
Exor N.V. and together with its subsidiaries the
Exor Group, as well as all entities and individuals
capable of exercising control, joint control or sig-
nificant influence over the Company and its subsid-
iaries. Related parties also include companies over
which the Exor Group is capable of exercising con-
trol, joint control or significant influence, including
Stellantis N.V., and together with its subsidiaries
the Stellantis Group, and CNH Industrial N.V. and its
subsidiaries, as well as joint ventures and associ-
ates of Ferrari. In addition, members of the Ferrari
Board of Directors and executives with strategic
responsibilities and their families are also consid-
ered related parties.
The Group carries out transactions with related
parties on commercial terms that are normal in the
respective markets, considering the characteristics
of the goods or services involved. Transactions car-
ried out by the Group with these related parties are
primarily of a commercial nature and, in particular,
these transactions relate to:
• Transactions with Stellantis Group companies:
• transactions with Stellantis Group companies
relating to technical cooperation agreements
with the aim to enhance the quality and
competitiveness of the parties’ products
while reducing costs and investments, as
well as for certain services received by
Stellantis Group companies, mainly of an
administrative nature;
• the sale of engines to Maserati S.p.A. (“Maserati”)
and the purchase of engine components for
the use in the production of Maserati engines
from FCA US LLC. The contract with Maserati
expired in December 2023 and residual sales
occurred throughout 2024.
393
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
• Transactions with Stellantis Group companies
for the periods presented include transactions
with FCA Bank until April 1, 2023. Following the
sale by the Stellantis Group of its 50 percent own-
ership interest in FCA Bank to Crédit Agricole
Consumer Finance S.A., FCA Bank (which was
renamed CA Auto Bank) is now fully owned by
Crédit Agricole Consumer Finance S.A. and is no
longer a related party of Ferrari.
• Transactions
with
Exor
Group
companies
(excluding Stellantis Group companies):
• the Group incurs rental costs from Iveco
S.p.A. (a company belonging to Iveco Group)
for the rental of trucks used by the Scuderia
Ferrari racing team;
• the Group earns sponsorship revenue from
Iveco S.p.A.
• Transactions with other related parties:
• the purchase of components for Formula 1
racing cars from COXA S.p.A.;
• consultancy services provided by HPE S.r.l.;
• sponsorship agreement relating to Formula
1 activities with Ferretti S.p.A.;
• sale of cars to certain members of the Board
of Directors of Ferrari N.V. and Exor.
In accordance with IAS 24, transactions with related
parties also include compensation to Directors and
managers with strategic responsibilities.
The amounts of transactions with related parties recognized in the
consolidated income statement are as follows:
For the years ended December 31,
2024
2023
2022
Net
revenues
Costs1
Financial
expenses/
(income),
net
Net
revenues
Costs1
Financial
expenses,
net
Net
revenues
Costs1
Financial
expenses,
net
(€ thousand)
Stellantis Group
companies
Maserati
4,947
1,636
—
50,391
2,091
—
78,946
2,989
—
FCA US LLC
—
—
—
—
6,803
—
14
14,861
—
Other Stellantis
Group companies
12,919
1,353
—
11,489
6,280
1,032
10,953
5,950
2,696
Total Stellantis
Group companies
17,866
2,989
—
61,880
15,174
1,032
89,913
23,800
2,696
Exor Group
companies
(excluding the
Stellantis Group)
485
1,913
22
281
1,615
3
282
1,611
—
Other related
parties
5,487
15,993
13
2,237
15,000
—
3,088
14,121
1
Total transactions
with related
parties
23,838
20,895
35
64,398
31,789
1,035
93,283
39,532
2,697
Total for the
Group
6,676,668
3,903,070
(1,205)
5,970,146
3,477,355
15,015
5,095,254
3,098,475
49,616
(1)
Costs include cost of sales, selling, general and administrative costs and other expenses, net.
394
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Non-financial assets and liabilities originating from related party
transactions are as follows:
At December 31,
2024
2023
Trade
receivables
Trade
payables
Other
current
assets
Other
liabilities
Trade
receivables
Trade
payables
Other
current
assets
Other
liabilities
(€ thousand)
Stellantis Group companies
Maserati
2,838
2,700
—
23
19,681
3,696
—
—
FCA US LLC
11
—
—
—
11
771
—
—
Other Stellantis Group
companies
805
863
10
304
588
1,858
6
704
Total Stellantis Group
companies
3,654
3,563
10
327
20,280
6,325
6
704
Exor Group companies
(excluding the Stellantis
Group)
153
49
1,026
924
—
392
214
218
Other related parties
357
1,691
341
346
118
2,726
—
51
Total transactions with
related parties
4,164
5,303
1,377
1,597
20,398
9,443
220
973
Total for the Group
349,176
945,657
137,763
1,106,221
261,380
930,560
130,228
1,022,967
At December 31, 2024 and at December 31, 2023 there were no financial
assets or financial liabilities with related parties.
EMOLUMENTS TO DIRECTORS AND KEY MANAGEMENT
The fees of the Directors of Ferrari N.V. are as follows:
For the years ended December 31,
2024
2023
2022
(€ thousand)
Directors of Ferrari N.V.
11,331
9,791
7,660
The aggregate compensation to Directors of Ferrari
N.V. for year ended December 31, 2024 was €11,331
thousand (€9,791 thousand in 2023 and €7,660 thou-
sand in 2022), inclusive of the following:
• €6,936 thousand for salary and other short-term
benefits, including short-term incentives (€6,688
thousand in 2023 and €5,650 thousand in 2022);
• €230 thousand for pension benefits (€230 thou-
sand in 2023 and 2022), and
• €4,165 thousand for share-based compensation
awarded under the Company’s equity incentive
plans and other share-based payments (€2,873
thousand in 2023 and €1,780 thousand in 2022).
See Note 21 “Share-based compensation” for addi-
tional information related to the Company’s equity
incentive plans. There was no equity-settled com-
pensation for Non-Executive Directors for the
years ended December 31, 2024, 2023 and 2022.
The aggregate compensation for members of the
FLT (excluding the CEO) in 2024 was €29,292 thou-
sand (€39,131 thousand in 2023 and €33,935 thou-
sand in 2022), inclusive of the following:
• €23,146 thousand for salary and other short-
term benefits, including short-term incentives
(€34,107 thousand in 2023 and €28,084 thou-
sand in 2022);
• €5,464 thousand for share-based compensa-
tion awarded under the Company’s equity incen-
tive plans (€4,479 thousand in 2023 and €5,176
thousand in 2022); and
• €682 thousand for pension contributions (€545
thousand in 2023 and €675 thousand in 2022).
395
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(29)
COMMITMENTS
ARRANGEMENTS WITH KEY SUPPLIERS
From time to time, in the ordinary course of busi-
ness, the Group enters into various arrangements
with key third party suppliers in order to establish
strategic and technological advantages. A limited
number of these arrangements contain uncondi-
tional purchase obligations to purchase a fixed or
minimum quantity of goods and/or services with
fixed and determinable price provisions.
ARRANGEMENTS WITH SPONSORS
Certain of the Group’s sponsorship contracts in-
clude terms whereby the Group is obligated to pur-
chase a minimum quantity of goods and/or services
from its sponsors.
Future minimum purchase obligations under these supplier and
sponsorship arrangements at December 31, 2024 were as follows:
At December 31, 2024
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
112,488
55,811
45,630
—
213,929
LEASE AGREEMENTS
For information relating to future aggregate minimum lease payments under
lease contracts, which primarily relate to the lease of stores and industrial
buildings, see Note 24 “Debt—Contractual undiscounted cash flows”.
(30)
QUALITATIVE AND QUANTITATIVE
INFORMATION ON FINANCIAL RISKS
The Group is exposed to the following financial risks
connected with its operations:
• Financial market risk — Principally relating to
foreign currency exchange rates and to a lesser
extent, interest rates and commodity prices), as
the Group operates internationally in different
currencies;
• Liquidity risk — With particular reference to
the availability of funds and access to the credit
markets, should the Group require them, and to
financial instruments in general;
• Credit risk — Arises from normal commercial re-
lations with dealers, sponsors, licensees and final
clients, as well as the Group’s financing activities.
These risks could significantly affect the Group’s
financial position, results of operations and cash
flows, and for this reason the Group identifies and
monitors these risks, in order to detect potential neg-
ative effects in advance and take the necessary ac-
tion to mitigate them, primarily through the Group’s
operating and financing activities and if required,
through the use of derivative financial instruments.
The following section provides qualitative and quan-
titative disclosures on the effect that these risks may
have upon the Group. The quantitative data reported
in the following section does not have any predictive
value. In particular, the sensitivity analysis on finan-
cial market risks does not reflect the complexity of
the market or the reaction which may result from
any changes that are assumed to take place.
FINANCIAL MARKET RISKS
Due to the nature of the Group’s business, the Group
is exposed to a variety of market risks, including for-
eign currency exchange rate risk and to a lesser ex-
tent, interest rate risk and commodity price risk.
The Group’s exposure to foreign currency
exchange rate risk arises from the geographic dis-
tribution of the Group’s shipments, as the Group
generally sells its models in the currencies of the
various markets in which the Group operates, while
the Group’s industrial activities are all based in Italy,
and primarily denominated in Euro.
The Group’s exposure to interest rate risk
arises from the need to fund certain activities and
396
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the necessity to deploy surplus funds. Changes in
market interest rates may have the effect of either
increasing or decreasing the Group’s net profit/
(loss), thereby indirectly affecting the costs and
returns of financing and investing transactions.
The Group has in place various risk management
policies, which primarily relate to foreign exchange
and commodity price, interest rate and liquidity risks.
The Group’s risk management policies permit deriva-
tives to be used for managing such risk exposures at
risk. Counterparties to these agreements are major
financial institutions. Derivative financial instruments
can only be executed for hedging purposes.
In particular, the Group used derivative financial
instruments as cash flow hedges primarily for the
purpose of limiting the negative impact of foreign
currency exchange rate fluctuations on forecasted
transactions denominated in foreign currencies.
Accordingly, as a result of applying risk management
policies with respect to foreign currency exchange
exposure, the Group’s results of operations have
not been fully exposed to fluctuations in foreign cur-
rency exchange rates. However, despite these risk
management policies and hedging transactions,
sudden adverse movements in foreign currency
exchange rates could have a significant effect on
the Group’s earnings and cash flows.
The Group also enters into interest rate caps as
required by certain of its securitization agreements.
Information on the fair value of derivative finan-
cial instruments held is provided in Note 19.
INFORMATION ON FOREIGN CURRENCY
EXCHANGE RATE RISK
The Group is exposed to risks resulting from chang-
es in foreign currency exchange rates, which can af-
fect its earnings and equity. In particular:
• Where a Group company incurs costs in a cur-
rency different from that of its revenues, any
change in foreign currency exchange rates can
affect the operating results of that company. In
2024, the total trade flows exposed to foreign
currency exchange rate risk amounted to the
equivalent of 59 percent of the Group’s net reve-
nues (60 percent in 2023 and 65 percent in 2022).
• 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
other markets where the U.S. Dollar is the refer-
ence currency. In 2024, the value of commercial
activities exposed to fluctuations in the Euro/U.S.
Dollar exchange rate accounted for approximate-
ly 61 percent (57 percent in 2023 and 52 percent
in 2022) of the total currency risk from commer-
cial activities. In 2024 the commercial activities
exposed to the Euro/Japanese Yen exchange
rate exceeded 10 percent (in 2023 and 2022 the
Euro/Chinese Renmimbi exchange rate and the
Euro/Japanese Yen exchange rate exceeded 10
percent) of the total currency risk from com-
mercial activities. Other significant exposures
included the exchange rate between the Euro
and the following currencies: Chinese Renmimbi,
Pound Sterling, Swiss Franc, Canadian Dollar and
Australian Dollar. None of these exposures, taken
individually, exceeded 10 percent of the Group’s
total foreign currency exchange rate exposure
for commercial activities in 2024, 2023 and 2022
(apart from Chinese Renmimbi in 2023 and 2022).
• Several subsidiaries are located in countries
that are outside the Eurozone, in particular the
United States, Japan, China, and Australia. As the
Group’s reporting currency is the Euro, the in-
come statements of those companies are trans-
lated into Euro using the average exchange rate
for the period and, even if revenues and margins
are unchanged in local currency, changes in ex-
change rates can impact the amount of reve-
nues, costs and profit as translated into Euro.
• The amount of assets and liabilities of consoli-
dated companies that report in a currency oth-
er than the Euro may vary from period to period
as a result of changes in exchange rates. The ef-
fects of these changes are recognized directly in
equity as a component of other comprehensive
income/(loss) under gains/(losses) from curren-
cy translation differences.
Exchange differences arising on the settlement of
monetary items or on reporting monetary items at
rates different from those at which they were initial-
ly recorded during the period or in previous finan-
cial statements, are recognized in the consolidated
income statement within financial income or finan-
cial expenses or as cost of sales for charges arising
from financial services companies.
It is the Group’s policy to use derivative financial
instruments (primarily forward currency contracts
and currency options) to hedge up to 90 percent of
the principal exposures to foreign currency trans-
action exchange risk, typically for a period of up to
twelve months.
The Group monitors its principal exposure to for-
eign currency translation exchange risk, although
the Group did not engage in any specific hedging
activities in relation to translation exchange risk for
the periods presented.
The impact of foreign currency exchange rate
differences recorded within financial income or
financial expenses for the year ended December 31,
2024, including the costs of hedging foreign cur-
rency exchange rate risk, amounted to net losses
of €7,035 thousand (net losses of €20,197 thou-
sand and €25,923 thousand for the years ended
December 31, 2023 and 2022, respectively).
All of the Group’s financial services activities
are conducted in the functional currencies of the
related financial services companies, therefore the
impact of foreign currency exchange rate differ-
ences arising from financial services activities was
zero in all periods presented.
Except as noted above, there have been no substan-
397
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
tial changes in 2024 in the nature or structure of ex-
posure to foreign currency exchange rate risks or in
the Group’s hedging policies.
The potential decrease in fair value of deriv-
ative financial instruments held by the Group at
December 31, 2024 to hedge against foreign cur-
rency exchange rate risks, which would arise in
the case of a hypothetical, immediate and adverse
change of 10 percent in the exchange rates of the
major foreign currencies with the Euro, would be
approximately €171,437 thousand (€191,355 thou-
sand at December 31, 2023). Receivables, payables
and future trade flows for which hedges have been
put in place were not included in the analysis. It is rea-
sonable to assume that changes in foreign currency
exchange rates will produce the opposite effect, of
an equal or greater amount, on the underlying trans-
actions that have been hedged. The sensitivity analy-
sis is based on currency hedging in place at the end
of the period, which can vary during the period and
assumes unchanged market conditions other than
exchange rates, such as volatility and interest rates.
For this reason, it is purely indicative.
INFORMATION ON INTEREST RATE RISK
The Group’s exposure to interest rate risk, though
less significant, arises from the need to fund financial
services activities and the necessity to deploy surplus
funds. Changes in market interest rates may have the
effect of either increasing or decreasing the Group’s
net profit/(loss), thereby indirectly affecting the costs
and returns of financing and investing transactions.
The Group’s most significant floating rate finan-
cial assets at December 31, 2024 were cash and
cash equivalents and certain receivables from client
financing activities, while 48 percent of the Group’s
gross debt bears floating rates of interest (58 per-
cent at December 31, 2023). At December 31, 2024,
a decrease of 25 basis points in interest rates on
floating rate financial assets and debt, with all other
variables held constant, would have resulted in a
decrease in profit before taxes of €648 thousand
on an annual basis (a decrease of €565 thousand at
December 31, 2023 for an increase of 25 basis points
in interest rates). The analysis is based on the assump-
tion that floating rate financial assets and debt which
expire during the projected 12-month period will be
renewed or reinvested in similar instruments, bear-
ing the hypothetical short-term interest rates.
INFORMATION ON COMMODITY PRICE RISK
The Group’s exposure to commodity price risk,
though much less significant than foreign exchange
rate risk and interest rate risk, arises from the need
to use a variety of raw materials in the Group’s op-
erations, including aluminum and precious metals
such as palladium and rhodium. The Group monitors
its exposure to commodity price risk and may hedge
a portion of such exposure through derivative finan-
cial instruments (primarily commodity swaps).
LIQUIDITY RISK
Liquidity risk arises if the Group is unable to obtain
the funds needed to carry out its operations and
meet its obligations. The main determinant of the
Group’s liquidity position is the cash generated by or
used in operating and investing activities.
From an operating point of view, the Group man-
ages liquidity risk by monitoring cash flows and keep-
ing an adequate level of funds readily available. The
main funding operations and investments in cash
and marketable securities of the Group are centrally
managed or supervised by the treasury depart-
ment with the aim of ensuring effective and efficient
management of the Group’s liquidity. The Group has
established various policies which are managed or
supervised centrally by the treasury department
with the purpose of optimizing the management of
funds and reducing liquidity risk which include:
• centralizing liquidity management through the
use of cash pooling arrangements;
• maintaining a conservative level of available
liquidity;
• obtaining adequate credit lines and diversifying
sources of funding;
• maintaining a portfolio of high-quality liquid assets;
• monitoring future liquidity requirements on the
basis of business planning.
Intercompany financing between Group entities is
not restricted other than through the application of
covenants requiring that transactions with related
parties be conducted at arm’s length terms.
Details on the maturity profile of the Group’s
financial assets and liabilities and on the structure
of derivative financial instruments are provided in
Notes 19 and 24. Details of the repayment of deriv-
ative financial instruments are provided in Note 19.
To preventively and prudently manage potential
liquidity or refinancing risks in the foreseeable future,
the Group has secured available undrawn committed
credit lines, which amounted to €550 million and €600
million at December 31, 2024 and 2023 respectively.
The Group believes that its total available liquidity
(defined as cash and cash equivalents plus undrawn
committed credit lines), in addition to funds that will
be generated from operating activities, will enable
Ferrari to appropriately and adequately satisfy the
requirements of its operational activities, including
working capital needs, and its investing activities, as
well as to fulfill its obligations to repay its debts and
ensure an appropriate level of strategic and opera-
tional flexibility. The Group therefore believes there
is no significant risk of a lack of liquidity.
CREDIT RISK
Credit risk is the risk of economic loss arising from the
failure to fully collect receivables. Credit risk encom-
passes the direct risk of default and the risk of a dete-
rioration of the creditworthiness of the counterparty.
398
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The maximum credit risk to which the Group is
theoretically exposed at December 31, 2024 is rep-
resented by the carrying amounts of the financial
assets presented in the consolidated statement of
financial position sheet and the nominal value of the
guarantees provided.
Dealers, clients and, in general, Ferrari’s busi-
ness partners are subject to a specific evaluation
of their creditworthiness. Additionally, it is Group
practice to obtain financial guarantees against risks
associated with credit granted for the purchase of
cars and parts, as well as certain sponsorships and
licensees. These guarantees are further strength-
ened, where possible, by retaining title on cars sub-
ject to financing agreements.
Credit positions of material significance are
evaluated on an individual basis. Where objective
evidence exists that they are uncollectible, in whole
or in part, specific write-downs are recognized. The
amount of the write-down is based on an estimate of
the recoverable cash flows, the timing of those cash
flows, the cost of recovery and the fair value of any
guarantees received.
Receivables from financing activities relate entirely
to the financial services portfolio in the United States
and such receivables are generally secured on the
titles of cars or other guarantees. Receivables from
financing activities amounting to €1,661,632 thou-
sand at December 31, 2024 (€1,451,158 thousand at
December 31, 2023) are shown net of the allowance
for doubtful accounts amounting to €16,547 thousand
(€11,165 thousand at December 31, 2023). After con-
sidering the allowance for doubtful accounts, €107,203
thousand of receivables were overdue (€82,029 thou-
sand at December 31, 2023), where receivables are
considered overdue if a counterparty has failed to make
at least one contractual payment by the respective due
date. Therefore, overdue receivables represent a minor
portion of receivables from financing activities.
Trade receivables amounting to €349,176 thou-
sand at December 31, 2024 (€261,380 thousand
at December 31, 2023) are shown net of the allow-
ance for doubtful accounts amounting to €33,376
thousand (€25,418 thousand at December 31, 2023).
After considering the allowance for doubtful ac-
counts, €47,151 thousand of receivables were over-
due (€35,935 thousand at December 31, 2023).
The Group’s cash and cash equivalents are held
on bank and deposit accounts with primary financial
institutions and highly rated money market funds. It
is the Ferrari Group’s policy to continuously monitor
counterparty risk and limit concentration of bank
and deposit accounts to a maximum of 25% of the
total with a single financial counterpart. With spe-
cific reference to money market funds, the invested
amounts in any specific fund must not exceed 10% of
the par value of such. The Group considers its credit
risk with respect to its cash and cash equivalents to
be low considering that they are held with primary
financial institutions and the maximum exposure
with any one counterparty is limited.
Cash flow forecasting is performed by the Group
on a recurring basis. The Group monitors a rolling
forecast of its liquidity requirements to ensure an
adequate cash balance to meet operational needs
and maintain adequate headroom. Cash held by the
businesses over and above balances required for
working capital management is loaned to the Group’s
centralized treasury department. Cash is invested in
instant-access current accounts, short-term depos-
its and money market funds, choosing instruments
with appropriate maturities to provide adequate
headroom as determined by cash forecasts. In accor-
dance to Group liquidity risk management policy, the
Group controls counterparties’ credit risk and credit
limit utilization. It adopts a conservative approach to
the investment of its cash which is deposited with fi-
nancial institutions with high credit standing.
The following table presents information relating to the short term credit
rating of the Group’s cash and cash equivalents:
At December 31,
2024
2023
P-1 / A-1 / Aaa-mf / AAAm (1)
36%
6%
P-2 / A-2
59%
92%
P-3 / A-3 / Not rated
5%
2%
Aaa-mf (Moody’s) /AAAm (S&P Global Ratings) refer to money market
funds. P-ratings (Moody’s) and A-ratings (S&P Global Ratings) refer to
the short-term rating of the financial institutions with whom the Group
deposits cash in current accounts or other short-term instruments.
399
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(31)
ENTITY-WIDE DISCLOSURES
The following table presents an analysis of net revenues by geographic
location of the Group’s customers for the years ended December
31, 2024 and 2023, including the effects of foreign currency hedge
transactions. Revenues by geography presented for material individual
countries are not necessarily correlated to shipments of cars as certain
countries include revenues from sponsorship and commercial activities
relating to Ferrari’s participation in the Formula 1 World Championship.
For the years ended December 31,
2024
2023
2022
(€ thousand)
Italy
462,832
442,760
379,898
Rest of EMEA
2,690,613
2,428,783
2,045,888
of which UK
652,391
625,930
536,280
of which Germany
549,093
493,930
430,380
Americas (1)
2,183,435
1,762,530
1,407,790
of which United States of America
1,921,459
1,535,772
1,198,834
Mainland China, Hong Kong and Taiwan
539,500
583,760
621,407
of which Mainland China
390,529
479,882
533,724
Rest of APAC (2)
800,288
752,313
640,271
Total net revenues
6,676,668
5,970,146
5,095,254
(1)
Americas includes the United States of America, Canada,
Mexico, the Caribbean and of Central and South America.
(2)
Rest of APAC mainly includes Japan, Australia, Singapore,
Indonesia, South Korea, Thailand, India and Malaysia.
Revenues in the Netherlands, the Company’s country of domicile,
for the years ended December 31, 2024, 2023 and 2022 amounted to
€85,786 thousand, €68,605 thousand and €56,748 thousand, respectively.
The following table presents an analysis of non-current assets other than
financial instruments and deferred tax assets by geographic location:
At December 31,
2024
2023
Property,
plant and
equipment
Goodwill
Intangible
assets
Property,
plant and
equipment
Goodwill
Intangible
assets
(€ thousand)
Italy
1,765,618
785,182
1,545,420
1,532,516
785,182
1,419,447
Rest of EMEA
28,401
—
—
5,388
—
—
Americas (1)
27,573
—
—
29,701
—
—
Mainland China, Hong Kong and Taiwan
2,335
—
—
3,100
—
—
Rest of APAC (2)
4,857
—
244
4,495
—
252
Total
1,828,784
785,182
1,545,664
1,575,200
785,182
1,419,699
(1)
Americas includes the United States of America, Canada,
Mexico, the Caribbean and of Central and South America.
(2)
Rest of APAC mainly includes Japan, Australia, Singapore,
Indonesia, South Korea, Thailand, India and Malaysia.
400
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(32)
CASH AND CASH EQUIVALENTS AND NOTES
TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
CASH AND CASH EQUIVALENTS
The following table presents cash and cash equivalents:
At December 31,
2024
2023
(€ thousand)
Cash and bank balances
1,742,214
1,121,981
Cash and cash equivalents
1,742,214
1,121,981
At December 31, 2024, cash and cash equivalents
included €450,000 thousand relating to time de-
posits held with recognized international finan-
cial institutions, which originated in November and
December 2024 and mature in February and March
2025 and an investment in money market funds
of €365,608 thousand with an AAAm rating. At
December 31, 2023, cash and cash equivalents in-
cluded €50,000 thousand relating to a time deposit
held with a recognized international financial insti-
tution, which originated in November 2023 and ma-
tured in February 2024. At both December 31, 2024
and 2023, the remaining cash and bank balances
were held in bank current accounts
At December 31, 2024, 88 percent of our cash
and cash equivalents were denominated in Euro (at
December 31, 2023, 80 percent). The Group’s cash
and cash equivalents denominated in currencies
other than the Euro are available mostly to Ferrari
S.p.A. and certain subsidiaries which operate in
areas other than the Eurozone.
The following table sets forth an analysis of the currencies in which the
Group’s cash and cash equivalents were denominated at December 31,
2024 and 2023.
At December 31,
2024
2023
(€ thousand)
Euro
1,535,630
894,509
U.S. Dollar
107,871
96,663
Chinese Yuan
62,525
80,716
Swiss Franc
12,067
10,605
Pound Sterling
8,483
19,706
Other currencies
15,638
19,782
Total
1,742,214
1,121,981
Cash held in some countries may be subject to trans-
fer restrictions. In particular, cash held in China (in-
cluding in currencies other than the Chinese Yuan),
which amounted to €63,379 thousand at December
31, 2024 (€81,337 thousand at December 31, 2023),
is subject to certain repatriation restrictions and
may only be repatriated as a repayment of payables
or debt, or as dividends or capital distributions. The
Group does not believe that such transfer restric-
tions have any adverse impacts on its ability to meet
its liquidity requirements.
Cash collected from the settlement of receiv-
ables under securitization programs is subject to
certain restrictions regarding its use and is princi-
pally applied to repay principal and interest of the
related funding. Such cash amounted to €53,644
thousand at December 31, 2024 (€31,820 thousand
at December 31, 2023).
For information relating to the credit risk with
respect to cash and cash equivalents, see note
30 “Qualitative and Quantitative Information on
Financial Risks”.
401
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
Other non-cash expenses, net primarily include equity-settled share-
based compensation, allowances for doubtful accounts of trade
receivables and provisions for slow moving and obsolete inventories.
For information relating to the financing cash flows relating to debt, see
Note 24 “Debt—Contractual undiscounted cash flows”.
(33)
SUBSEQUENT EVENTS
The Group has evaluated subsequent events through February 20, 2025,
which is the date the Consolidated Financial Statements were authorized
for issuance, and identified the following matters:
Under the common share repurchase program, from January 1, 2025 to
February 14, 2025 the Company purchased an additional 188,303 common
shares for total consideration of €78.2 million. At February 14, 2025, the
Company held in treasury an aggregate of 15,067,471 common shares.
On February 20, 2025, the Board of Directors of Ferrari N.V. recommended
to the Company’s shareholders that the Company declare a dividend
of €2.986 per common share, totaling approximately €534 million. The
proposal is subject to the approval of the Company’s shareholders at the
Annual General Meeting to be held on April 16, 2025.
403
COMPANY
FINANCIAL
STATEMENT
Income Statement/Statement
405
of Comprehensive Income
Statement of Financial
406
Position
Statement of Cash Flows
407
Statement of Changes
408
In Equity
Notes to the Company
409
Financial Statements
FINANCIAL STATEMENTS
405
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
INCOME STATEMENT/ STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
For the years ended December 31,
Note
2024
2023
(€ thousand)
Net revenues
3
93
2,144
Other income
3
26,017
18,747
Dividend income
4
950,000
500,000
Cost of sales
5,163
1,781
Selling, general and administrative costs
5
47,698
45,214
Financial income
6
4,132
11,092
Financial expenses
6
145,089
131,040
Financial expenses, net
6
140,957
119,948
Profit before taxes
782,292
353,948
Income tax benefit
7
29,249
28,811
Net profit
811,541
382,759
Other comprehensive income
49
27
Total comprehensive income
811,590
382,786
The accompanying notes are an integral part of the Company Financial
Statements.
406
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
STATEMENT OF FINANCIAL POSITION
AT DECEMBER 31, 2024 AND 2023
At December 31,
Note
2024
2023
(€ thousand)
Assets
Property, plant and equipment
8
23,674
2,734
Investments in subsidiaries
9
8,798,663
8,783,663
Financial receivables
10
36,755
34,762
Deferred tax assets
7
3,545
3,836
Total non-current assets
8,862,637
8,824,995
Trade receivables
10
17,263
23,040
Tax receivables
7
32,463
90,463
Other current assets
10
50,701
61,298
Cash and cash equivalents
12
179,894
97,432
Total current assets
280,321
272,233
Total assets
9,142,958
9,097,228
Equity and liabilities
Share capital
2,573
2,573
Share premium
5,768,544
5,768,544
Other reserves
(2,130,188)
(1,573,121)
Retained earnings
1,109,585
737,962
Total equity
13
4,750,514
4,935,958
Debt (Non-Current)
15
1,249,179
1,029,572
Employee benefits
6,188
5,797
Total non-current liabilities
1,255,367
1,035,369
Debt (Current)
15
3,068,079
3,016,746
Trade payables
16
2,924
1,743
Tax payables
7
31,449
69,597
Other current liabilities
17
26,802
35,051
Ferrari Group cash management pools
11
7,823
2,764
Total current liabilities
3,137,077
3,125,901
Total liabilities
4,392,444
4,161,270
Total equity and liabilities
9,142,958
9,097,228
The accompanying notes are an integral part of the Company Financial
Statements.
407
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
For the years ended December 31,
Note
2024
2023
(€ thousand)
Cash and cash equivalents at the beginning of the year
97,432
110,702
Cash flows from operating activities:
Net profit
811,541
382,759
Income tax benefit
7
(29,249)
(28,811)
Amortization and depreciation
8
3,309
703
Financial income
6
(4,132)
(11,092)
Financial expenses
6
145,089
131,040
Other non-cash expenses/(income), net
19
26,653
(6,721)
Change in trade receivables
10
6,180
1,025
Change in trade payables
16
1,245
(5,782)
Change in other operating assets and liabilities
50,303
37,053
Finance costs paid
7
(139,623)
(77,797)
Total cash flows from operating activities
871,316
422,377
Cash flows used in investing activities:
Investments in property, plant and equipment
8
(109)
(1,585)
Investments in subsidiaries
9
(15,000)
(9,000)
Total cash flows used in investing activities
(15,109)
(10,585)
Cash flows used in financing activities:
Proceeds from financial liabilities with related parties
15
2,900,000
2,900,000
Repayments of financial liabilities with related parties
15
(3,300,000)
(2,159,120)
Proceeds from bonds and notes
496,145
—
Repayments of bonds and notes
—
(575,702)
Proceeds from borrowings from banks and other financial institutions
15
225,000
250,000
Repayments of borrowings from banks and other financial institutions
15
(78,333)
(47,500)
Repayments of lease liabilities
15
(509)
(672)
Change in Ferrari Group cash management pools
11
4,954
(2,808)
Dividends paid to owners
13
(439,918)
(328,631)
Share repurchases
13
(581,084)
(460,629)
Total cash flows used in financing activities
(773,745)
(425,062)
Total change in cash and cash equivalents
82,462
(13,270)
Cash and cash equivalents at the end of the year
19
179,894
97,432
The accompanying notes are an integral part of the Company Financial
Statements.
408
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FERRARI N.V.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Share capital
Share premium
Other reserves
Retained earnings
Total equity
(€ thousand)
At December 31, 2022
2,573
5,768,544
(1,143,382)
683,834
5,311,569
Net profit
—
—
—
382,759
382,759
Other comprehensive income
—
—
27
—
27
Total comprehensive income
—
—
27
382,759
382,786
Dividends to owners
—
—
—
(328,631)
(328,631)
Share repurchases
—
—
(460,629)
—
(460,629)
Share-based compensation
—
—
30,863
—
30,863
At December 31, 2023
2,573
5,768,544
(1,573,121)
737,962
4,935,958
Net profit
—
—
—
811,541
811,541
Other comprehensive income
—
—
49
—
49
Total comprehensive income
—
—
49
811,541
811,590
Dividends to owners
—
—
—
(439,918)
(439,918)
Share repurchases
—
—
(581,084)
—
(581,084)
Share-based compensation
—
—
23,968
—
23,968
At December 31, 2024
2,573
5,768,544
(2,130,188)
1,109,585
4,750,514
The accompanying notes are an integral part of the Company Financial
Statements.
409
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
NOTES TO THE COMPANY FINANCIAL STATEMENTS
(1)
CORPORATE INFORMATION
AND PRINCIPAL ACTIVITIES
Ferrari N.V. (the “Company” or “Ferrari” and togeth-
er with its subsidiaries the “Ferrari Group” or the
“Group”) was incorporated as a public limited com-
pany (naamloze vennootschap) under the laws of the
Netherlands on September 4, 2015. The Company
was formed to ultimately act as a holding company
for Ferrari S.p.A., which, together with its subsidiar-
ies, is focused on the design, engineering, produc-
tion and sale of luxury performance sports cars.
The Company is listed under the ticker symbol
RACE on the New York Stock Exchange and on the
Euronext Milan.
The Company’s official seat (statutaire zetel) is
in Amsterdam, the Netherlands and the Company’s
corporate address is in Maranello, Italy at Via
Abetone Inferiore 4. The Company is registered with
the Dutch trade register under number 64060977.
(2)
BASIS OF PREPARATION AND
MATERIAL ACCOUNTING POLICIES
DATE OF AUTHORIZATION FOR ISSUANCE
The separate financial statements of the Company
(the “Company Financial Statements”) as of and for
the years ended December 31, 2024 and 2023 were
authorized for issuance on February 20, 2024.
BASIS OF PREPARATION
The Company Financial Statements are prepared
on a going concern basis using the historical cost
method, modified as required for the measurement
of certain financial instruments, which are generally
measured at fair value.
STATEMENT OF COMPLIANCE
The Company Financial Statements have been pre-
pared in accordance with the IFRS® Accounting
Standards as adopted by the European Union (“EU
IFRS Accounting Standards”) and with Part 9 of Book
2 of the Dutch Civil Code.
MEASUREMENT BASIS
The Company Financial Statements were prepared
using the same accounting policies as set out in
the notes to the consolidated financial statements
at December 31, 2024 (the “Consolidated Financial
Statements”), except for the measurement of the
investments as presented under “Investments in
subsidiaries” in the Company Financial Statements,
which are measured at cost, less impairment (if any).
Management considers the primary focus of these
Company Financial Statements to be the legal enti-
ty perspective and considers that these Company
Financial Statements should reflect the cost of the
subsidiaries as well as the amounts that are eligi-
ble for distribution to the Company’s shareholders.
Management believes that the measurement of its sub-
sidiaries at cost in the Company Financial Statements,
as permitted under EU IFRS Accounting Standards,
provides the best insight into the Company’s finan-
cial position and results, in addition to the information
provided in the Consolidated Financial Statements.
The
accounting
policies
were
consistently
applied to all periods presented herein with the
exception of the new standards and amendments
effective from January 1, 2024 as noted below.
The
amounts
in
the
Company
Financial
Statements are presented in thousands of Euro (€),
except where otherwise indicated.
FORMAT OF THE COMPANY FINANCIAL
STATEMENTS
The Company presents the income statement by func-
tion and uses a current/non-current classification for
assets and liabilities in the statement of financial position.
STATEMENT OF CASH FLOWS
The statement of cash flows is prepared using the
indirect method with a breakdown of cash flows
from or used in operating, investing and financing
activities. Cash inflows or outflows related to taxes
are reported as changes in other operating assets
and liabilities as they are primarily settled through
transactions with related parties as a result of the
Ferrari Group Italian tax consolidation. Dividends re-
ceived are included as part of operating activities.
NEW STANDARDS AND AMENDMENTS
Information relating to new standards and amend-
ments effective from January 1, 2024 and those is-
sued but not yet effective is provided in Note 2 of the
Consolidated Financial Statements.
MATERIAL ACCOUNTING STANDARDS
INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries, which primarily relate
to the Company’s investment in Ferrari S.p.A., are
measured at cost, less impairment (if any). Dividend
income from the Company’s subsidiaries is recog-
nized in the income statement when the right to re-
ceive payment is established.
410
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
IMPAIRMENT OF INVESTMENTS
IN SUBSIDIARIES
At each reporting date, the Company assesses
whether there is an indication that investments in
subsidiaries may be impaired. If any such indication
exists, the Company makes an estimate of the as-
set’s recoverable amount. The recoverable amount
is defined as the higher of (i) the fair value of the in-
vestment less costs of disposal and (ii) its value in
use. Where the carrying amount of an asset exceeds
its recoverable amount, the asset is considered im-
paired and is written down to its recoverable amount.
Any resulting impairment is recognized in the income
statement. An assessment is made at each reporting
date as to whether there is any indication that previ-
ously recognized impairment losses may no longer
exist or may have decreased. If such an indication
exists, the Company makes an estimate of the recov-
erable amount. A previously recognized impairment
loss is reversed only if there has been a change in the
estimates used to determine the asset’s recoverable
amount since the last impairment loss was recog-
nized. If that is the case, the carrying amount of the
asset is increased to its recoverable amount, up to a
maximum of the carrying amount that would have
been determined if no impairment loss had been rec-
ognized for the asset in prior periods. Such a reversal
is recognized in the income statement. There was no
impairment of investments in subsidiaries or rever-
sals of impairment of investments for the periods
presented in these Company Financial Statements.
FOREIGN CURRENCY TRANSACTIONS
The financial statements are prepared in Euro,
which is the Company’s functional and presentation
currency. Transactions in foreign currencies are
recorded at the exchange rate prevailing at the date
of the transaction.
Monetary assets and liabilities denominated in
foreign currencies at the balance sheet date are
translated at the foreign currency exchange rate
prevailing at that date. Exchange differences arising
on the settlement of monetary items or on report-
ing monetary items at rates different from those at
which they were initially recorded during the period
or in previous financial statements are recognized in
the income statement.
FOREIGN CURRENCY TRANSLATION
The Company has a branch in the United Kingdom
(UK) that operates primarily in Pound Sterling. At
each reporting period, the assets and liabilities with-
in the UK branch are translated to Euro using the ex-
change rate at the balance sheet date and the income
statement is translated using the average exchange
rate for the period. Translation differences resulting
from the application of this method are classified as
translation differences within other comprehensive
income/(loss) and will only be reclassified to the in-
come statement if the branch is disposed of.
The principal foreign currency echange rates used to translate other
currencies into Euro were as follows:
2024
2023
Average
At December 31,
Average
At December 31,
U.S. Dollar
1.0824
1.0389
1.0814
1.1050
Pound Sterling
0.8466
0.8292
0.8699
0.8691
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is recognized at cost net of accumulated
depreciation and, if applicable, impairment. Depreciation is calculated on
a straight line basis over the useful lives of the assets as follows:
Asset Category
Depreciation Rates
Buildings
10%
Office equipment
20% - 22%
Other assets
20% - 25%
411
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
LEASES
The Company recognizes a right-of-use asset and a
corresponding lease liability at the date at which the
leased asset is available for use. Each lease payment
is allocated between the principal liability and finance
costs. Finance costs are charged to the income state-
ment over the lease period using the effective interest
rate method. The right-of-use asset is depreciated on
a straight-line basis over the shorter of the lease term
or the useful life of the asset.
Right-of-use assets are measured at cost compris-
ing the following: (i) the amount of the initial measure-
ment of related lease liability, (ii) any lease payments
made at or before the commencement date less any
lease incentives received, (iii) any initial direct costs
and, if applicable, (iv) restoration costs. Payments
associated with short-term leases and leases of low-
value assets are recognized as an expense in the
income statement on a straight-line basis.
Lease liabilities are measured at the net present
value of the following: (i) fixed lease payments, (ii) vari-
able lease payments that are based on an index or a
rate (if applicable), (iii) amounts expected to be payable
by the lessee under residual value guarantees, and (iv)
the exercise price of a purchase option if the lessee is
reasonably certain to exercise that option. Lease lia-
bilities do not include any non-lease components that
may be included in the related contracts.
Lease payments are discounted using the interest
rate implicit in the lease. If that rate cannot be deter-
mined, the Company’s incremental borrowing rate is
used, being the rate that the Company would have to
pay to borrow the funds necessary to obtain an asset
of similar value in a similar economic environment
with similar terms and conditions.
In determining the lease term, management con-
siders all facts and circumstances that create an eco-
nomic incentive to exercise an extension option or not
exercise a termination option. Extension options (or
periods after termination options) are only included in
the lease term if the lease is reasonably certain to be
extended (or not terminated).
TRADE RECEIVABLES
Trade receivables are amounts due for goods sold or
services provided in the ordinary course of business.
Trade receivables are initially recognized at fair value
and subsequently measured at amortized cost using
the effective interest rate method, less any provision
for allowances.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, de-
posits held at call with banks and other short-term,
highly liquid investments with original maturities of
three months or less. There are no liens, pledges, col-
lateral or restrictions on cash and cash equivalents.
Cash and cash equivalents do not include amounts in
Ferrari Group cash management pools.
DEBT
Debt is measured at amortized cost using the effec-
tive interest rate method.
TRADE PAYABLES
Trade payables primarily include amounts payable for
services, legal and professional fees and other expens-
es incurred. Trade payables are all due within one year.
DEFERRED INCOME
Deferred income relates to amounts received in ad-
vance under certain agreements, primarily relating to
marketing-related events hosted for third party deal-
ers, which are reliant on the future performance of a
service or other act of the Company. Deferred income
is recognized as net revenues or other income when
the Company has fulfilled its obligations under the
terms of the various agreements. Deferred income is
recorded on the statement of financial position within
“other liabilities”.
NET REVENUES
Net revenues are primarily generated from market-
ing-related events, such as new car launches and oth-
er promotional events. Revenue is recognized when
control over a product or service is transferred to the
customer. Revenue is measured at the transaction price
which is based on the amount of consideration that the
Company expects to receive in exchange for transfer-
ring the promised goods or services to the customer
and excludes any sales incentives as well as taxes col-
lected from customers that are remitted to government
authorities. The transaction price includes estimates of
variable consideration to the extent it is probable that a
significant reversal of revenue recognized will not oc-
cur. The Company enters into contracts that may include
both products and services, which are generally capa-
ble of being distinct and accounted for as separate per-
formance obligations where appropriate. The Company
accounts for a contract with a customer when there is a
legally enforceable contract between the Company and
the customer, the rights of the parties are identified, the
contract has commercial substance, and collectability
of the contract consideration is probable.
OTHER INCOME
Other income primarily relates to services performed
by the Company on behalf of its subsidiaries for certain
corporate services rendered and other recharge fees.
INCOME TAXES
Current and deferred taxes are recognized as income
tax benefit or income tax expense and are included in
the income statement for the period, except tax aris-
ing from a transaction or event which is recognized, in
412
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the same or a different period, either in other compre-
hensive income/(loss) or directly in equity. Tax uncer-
tainties are accounted for in accordance with IFRIC 23.
DIVIDENDS
Dividends payable by the Company are reported as
a change in equity in the period in which they are ap-
proved by the shareholders as applicable under local
rules and regulations. Dividend income is recognized
in the income statement when the right to receive
payment is established.
SHARE-BASED COMPENSATION
The Company has implemented equity incentive plans
that provide for the granting of share-based compen-
sation to the Chairman, the Chief Executive Officer,
all other members of the Ferrari Leadership Team
and other key employees of the Group. The Company
also provides share-based compensation as part of
commercial agreements with certain suppliers. The
share-based compensation arrangements are ac-
counted for in accordance with IFRS 2 — Share-based
Payments, which requires the Company to recog-
nize share-based compensation expense based on
fair value of awards granted. Compensation expense
for the equity-settled awards containing market per-
formance conditions is measured at the grant date
fair value of the award using a Monte Carlo simula-
tion model, which requires the input of subjective
assumptions, including the expected volatility of the
Company’s common stock, the dividend yield, interest
rates and a correlation coefficient between the com-
mon stock and the relevant market index. The fair val-
ue of the awards which are conditional only on a recip-
ient’s continued service to the Company is measured
using the share price at the grant date adjusted for the
present value of future distributions which employees
will not receive during the vesting period.
Pursuant to an agreement between the Company
and various subsidiaries of the Group, the Company
recharges subsidiaries for share-based compen-
sation relating to equity instruments awarded to
employees of the subsidiaries under the equity
incentive plans. The Company’s portion of the share-
based compensation expense relating to the equity
incentive plans is recognized over the service period
within selling, general and administrative costs or
cost of sales in the income statement depending
on the function of the employee with an offsetting
increase to equity, whilst share-based compensa-
tion recharged to the subsidiaries of the Group is
recognized as a financial receivable (until payment is
received) with an offsetting amount recorded as an
increase to equity.
Share-based compensation expense relating to
commercial agreements with certain suppliers is rec-
ognized over the period in which the supplier’s services
are received and classified within the consolidated
income statement depending on the function of the
supplier’s services, with an offsetting increase to equity.
SEGMENT REPORTING
As disclosed in the Consolidated Financial Statements,
the Group has determined that it has one operating
and one reportable segment based on the informa-
tion reviewed by its Chief Operating Decision Maker in
making decisions regarding the allocation of resourc-
es and to assess performance.
USE OF ESTIMATES
The Company Financial Statements are prepared in ac-
cordance with EU IFRS Accounting Standards, which
requires the use of estimates, judgments, and assump-
tions that affect the carrying amount of assets and lia-
bilities, the disclosure of contingent assets and liabilities
and the amounts of income and expenses recognized.
The estimates and associated assumptions are based on
elements that are known when the financial statements
are prepared, on historical experience and on any other
factors that are considered to be relevant. The estimates
and underlying assumptions are reviewed periodically
and continuously by the Company. If the items subject to
estimates do not perform as assumed, then the actual
results could differ from the estimates, which would re-
quire adjustment accordingly. The effects of any changes
in estimate are recognized in the income statement in the
period in which the adjustment is made, or prospective-
ly in future periods. The estimates and assumptions that
management considers most critical for the Company
Financial Statements relate to investments in subsidiaries
and in particular, relating to impairment indicators. See
Note 9 “Investments in subsidiaries” for further details.
For disclosures relating to climate-related mat-
ters, see Note 2 “Material Accounting Policies—Use of
estimates and judgments—Climate-related matters” to
the Consolidated Financial Statements.
(3)
NET REVENUES AND OTHER INCOME
Net revenues for the year ended December 31, 2024
amounted to €93 thousand and primarily related to mar-
keting-related and other promotional events (€2,144
thousand for the year ended December 31, 2023).
Other income for the year ended December 31,
2024 amounted to €26,017 thousand (€18,747 thou-
sand for the year ended December 31, 2023) and pri-
marily related to costs recharged to Ferrari S.p.A. for
corporate services rendered and fees charged.
(4)
DIVIDEND INCOME
Dividend income for the year ended December 31,
2024 amounted to €950,000 thousand and related
entirely to a dividend from Ferrari S.p.A., approved in
April 2024 and received in April and May 2024.
Dividend income for the year ended December
31, 2023 amounted to €500,000 thousand and related
entirely to a dividend from Ferrari S.p.A, approved in
April 2023 and received in May 2023.
413
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(5)
SELLING, GENERAL AND ADMINISTRATIVE COSTS
Selling, general and administrative costs consisted of the following:
For the years ended December 31,
2024
2023
(€ thousand)
Personnel expenses
19,476
17,278
Insurance
15,305
14,662
Shared services provided by Ferrari S.p.A.
5,735
5,561
Legal and professional services
5,154
5,487
Other expenses
2,028
2,226
Total selling, general and administrative costs
47,698
45,214
Personnel expenses include costs related to the
Group’s equity incentive plans (see Note 14 “Share-
Based Compensation”) and other compensation for
Directors and employees. Detailed information re-
lating to the compensation of the Board of Directors
and senior management is included in the “Corporate
Governance” and “Remuneration of Directors” sec-
tions to the Annual Report.
At December 31, 2024 the Company had 25 full time
equivalent employees, of which 17 in the UK branch
and 8 in the Italian branch (at December 31, 2023 the
Company had 25 full time equivalent employees, of
which 16 in the UK branch and 9 in the Italian branch).
All employees work outside of the Netherlands.
Shared services provided by Ferrari S.p.A. mainly re-
late to costs for human resources, payroll, tax, legal,
accounting and treasury services.
Legal and professional services mainly relate to
expenses for legal, financial and other consulting ser-
vices, as well as public company listing fees.
(6)
FINANCIAL EXPENSES AND FINANCIAL INCOME
Financial expenses and financial income consisted of the following:
For the years ended December 31,
2024
2023
(€ thousand)
Financial income
(4,132)
(11,092)
Interest expenses
143,835
125,088
of which interest on:
Intercompany borrowings
107,306
98,143
Bonds and notes
24,870
17,889
Borrowings from banks
10,847
8,949
Leases
812
107
Other financial expenses
1,254
5,952
Financial expenses
145,089
131,040
Financial expenses, net
140,957
119,948
Financial income for 2023 primarily relates to gains of €7,940 thousand
realized on the partial cash tender executed during the third quarter
of 2023 on a bond due in 2025, as well as interest income on cash and
cash equivalents
414
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(7)
INCOME TAXES
Income taxes for the years ended December 31, 2024 and 2023 are
summarized below:
For the years ended December 31,
2024
2023
(€ thousand)
Current income tax benefit
29,560
26,951
Deferred income tax (expense)/income
(311)
1,860
Total income tax benefit
29,249
28,811
The table below provides a reconciliation between the theoretical income
tax expense and the actual income tax benefit, calculated on the basis of
the applicable corporate tax rate in effect in Italy, which was 24.0 percent
for each of the years ended December 31, 2024 and 2023:
For the years ended December 31,
2024
2023
(€ thousand)
Profit before tax
782,292
353,948
Theoretical income tax rate
24.0%
24.0%
Theoretical income tax expense
(187,750)
(84,948)
Tax effect on:
Non-taxable dividends
216,600
114,000
Non-deductible costs
116
(117)
Other permanent differences
283
(124)
Total income tax benefit
29,249
28,811
The following table provides a summary of tax receivables and tax
payables for the years ended December 31, 2024 and 2023:
At December 31,
2024
2023
(€ thousand)
Tax receivables
32,463
90,463
Tax payables
31,449
69,597
Net tax payables
1,014
20,866
Tax receivables of €32,463 thousand at December 31, 2024 (€90,463
thousand at December 31, 2023) primarily relate to amounts due from
related parties for the Group tax consolidation in Italy.
Tax payables of €31,449 thousand at December 31, 2024 (€69,597
thousand at December 31, 2023) primarily relate to amounts due to the
tax authorities for the Group tax consolidation in Italy.
415
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table summarizes deferred tax assets at December 31,
2024 and 2023:
At December 31,
2024
2023
(€ thousand)
Deferred tax assets
To be recovered after 12 months
709
767
To be recovered within 12 months
2,836
3,069
Total deferred tax assets
3,545
3,836
(8)
PROPERTY, PLANT AND EQUIPMENT
At December 31,
2024
2023
(€ thousand)
Cost
30,580
6,100
Accumulated depreciation
(6,906)
(3,366)
Total property, plant and equipment
23,674
2,734
of which right-of-use assets
23,367
2,469
Property, plant and equipment primarily includes right-of-use assets
leased, which amounted to €23,367 thousand at December 31, 2024
(€2,469 thousand at December 31, 2023). The increase in 2024 primarily
relates to a new directly operated Ferrari store in London, UK.
For year ended December 31,
2024
2023
(€ thousand)
Depreciation
3,309
703
of which
Cost of sales
11
74
Selling, general and administrative costs
3,298
629
of which right-of-use assets
3,227
562
See Note 15 “Debt” for information related to the corresponding lease
liabilities.
There are no liens, pledges, collateral or restrictions on use over
property, plant and equipment.
416
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(9)
INVESTMENTS IN SUBSIDIARIES
Investment in subsidiaries amounted to €8,798,663
thousand at December 31, 2024 (€8,783,663 thou-
sand at December 31, 2023), and included invest-
ments in Ferrari S.p.A. amounting to €8,778,000 thou-
sand (€8,778,000 thousand at December 31, 2023)
and New Business 33 S.p.A. amounting to €20,663
thousand (€5,663 thousand at December 31, 2023).
The increase in the investment in New Business 33
S.p.A. related to a capital increase by the Company.
IMPAIRMENT TESTING
At December 31, 2024, the market capitalization of
Ferrari N.V. amounted to approximately €73.8 billion
(€55.1 billion at December 31, 2023). Considering the
share price of the Company at December 31, 2024
and at the date of authorization of the Company
Financial Statements, no impairment indicators
were identified.
(10)
TRADE RECEIVABLES, FINANCIAL RECEIVABLES
AND OTHER CURRENT ASSETS
At December 31,
2024
2023
(€ thousand)
Trade receivables
17,263
23,040
Financial receivables
36,755
34,762
Other current assets
50,701
61,298
Total
104,719
119,100
TRADE RECEIVABLES
The following table presents the split of trade receivables due from
related parties and due from third parties:
At December 31,
2024
2023
(€ thousand)
Related parties
12,021
19,896
Third parties
5,242
3,144
Total
17,263
23,040
Trade receivables due from related parties primarily relate to corporate
services rendered and fees recharged to subsidiaries of the Ferrari
Group (mainly Ferrari S.p.A.) and trade receivables due from third parties
primarily relate to marketing-related events and other services provided.
The carrying amount of trade receivables is deemed to approximate their
fair value. There are no significant overdue balances and no allowance
for expected credit losses has been recorded for trade receivables.
417
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
The following table sets forth a breakdown of trade receivables by
currency:
At December 31,
2024
2023
(€ thousand)
Trade receivables denominated in:
Euro
3,271
18,474
Pound Sterling
13,992
4,566
Total
17,263
23,040
FINANCIAL RECEIVABLES
At December 31, 2024, non-current financial re-
ceivables of €36,755 thousand (€34,762 thousand
at December 31, 2023) related to receivables from
subsidiaries, mainly Ferrari S.p.A., and primarily for
recharges of share-based compensation relating
to equity instruments awarded to employees of the
subsidiaries of the Group under the Group’s equity
incentive plans and under the broad-based employee
share ownership plan, pursuant to an intercompany
agreement. The carrying amount of financial receiv-
ables is considered to approximate their fair value.
OTHER CURRENT ASSETS
Other current assets of €50,701 thousand at
December 31, 2024 (€61,298 thousand at December
31, 2023) primarily include VAT credits and to a less-
er extent prepaid expenses.
(11)
FERRARI GROUP CASH MANAGEMENT POOLS
Ferrari Group cash management pools relate to the Company’s
participation in a group-wide cash management system that is managed
centrally by Ferrari S.p.A. and amounted to a net liability of €7,823
thousand at December 31, 2024 (a net liability of €2,764 thousand at
December 31, 2023). Amounts in cash management pools at December
31, 2024 and 2023 were entirely denominated in Pound Sterling.
At December 31,
2023
Proceeds
Repayments
Translation
differences
At December 31,
2024
(€ thousand)
Ferrari Group cash
management pools - Liability
2,764
19,842
(14,888)
105
7,823
(12)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents amounted to €179,894
thousand at December 31, 2024 (€97,432 thou-
sand at December 31, 2023) and were primarily
denominated in Euro.
The carrying amount of cash and cash equivalents
is deemed to be in line with their fair value. There was
no restricted cash at December 31, 2024 and 2023.
The Company’s cash and cash equivalents are
held on bank and deposit accounts with primary
financial institutions and highly rated money market
funds. It is the Ferrari Group’s policy to continuously
monitor counterparty risk and limit concentration
of bank and deposit accounts to a maximum of
25% of the total with a single financial counterpart.
With specific reference to money market funds,
the invested amounts in any specific fund must not
exceed 10% of the par value of such. The Company
considers its credit risk with respect to its cash and
cash equivalents to be low considering that they are
held with primary financial institutions and the maxi-
mum exposure with any one counterparty is limited.
See Note 30 “Qualitative and quantitative informa-
tion on financial risks” to the Consolidated Financial
Statements for additional details.
418
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(13)
EQUITY
SHARE CAPITAL
At December 31, 2024 and 2023 the fully paid up
share capital of the Company was €2,573 thousand,
consisting of 193,923,499 common shares and
63,349,112 special voting shares, all with a nominal
value of €0.01. At December 31, 2024, the Company
had 14,879,168 common shares and 16,239 special
voting shares held in treasury, while at December 31,
2023, the Company had 13,505,409 common shares
and 16,240 special voting shares held in treasury.
Shares in treasury include shares repurchased un-
der the Group’s share repurchase program, which
are recorded based on the transaction trade date.
The increase in common shares held in treasury
primarily reflects the repurchase of shares by the
Company through its share repurchase program,
partially offset by shares assigned under the Group’s
equity incentive plans. At December 31, 2024 and
2023 the Company held in treasury 5.79 percent and
5.26 percent of the total issued share capital of the
Company, respectively.(1)
The percentage of shares held in treasury com-
pared to total issued share capital remains sub-
stantially the same if calculated considering only
common shares held in treasury or if calculated
considering common shares and special voting
shares held in treasury.
The following table summarizes the changes in the number of outstanding
common shares and outstanding special voting shares of the Company
for the years ended December 31, 2024 and 2023:
Common Shares
Special Voting Shares
Total Shares
Outstanding shares at December 31, 2022
181,953,498
63,343,913
245,297,411
Common shares repurchased under share
repurchase program(1)
(1,630,171)
—
(1,630,171)
Common shares assigned under equity incentive
plans(2)
94,763
—
94,763
Other changes(3)
—
(11,041)
(11,041)
Outstanding shares at December 31, 2023
180,418,090
63,332,872
243,750,962
Common shares repurchased under share
repurchase program(4)
(1,440,264)
—
(1,440,264)
Common shares assigned under equity incentive
plans(5)
41,790
—
41,790
Other changes(6)
24,715
1
24,716
Outstanding shares at December 31, 2024
179,044,331
63,332,873
242,377,204
(3)
Includes shares repurchased under the share repurchase
program between January 1, 2023 and December 31,
2023 based on the transaction trade date, for a total
consideration of €460,629 thousand, including transaction
costs and Sell to Cover, as described below.
(4)
On March 15, 2023, 80,305 common shares, which were
previously held in treasury, were assigned to participants of
the equity incentive plans as a result of the vesting of certain
performance share unit and retention restricted share unit
awards. On the same day, the Company purchased 34,671
common shares, for a total consideration of €8,448 thousand,
from a group of those employees who were assigned shares
in order to cover the individual’s taxable income as is standard
practice (“Sell to Cover”) in a cross transaction. On July 17,
2023, the Company assigned 49,129 common shares related
to commercial agreements with certain suppliers and other
shares awards. See Note 21 “Share-Based Compensation” for
additional details relating to the Group’s equity incentive plans.
(5)
Relates to the deregistration of certain special voting
shares under the Company’s special voting shares terms
and conditions.
(6)
Includes shares repurchased under the share repurchase
program between January 1, 2024 and December 31,
2024 based on the transaction trade date, for a total
consideration of €581,084 thousand, including transaction
costs and Sell to Cover, as described below.
(7)
On March 15, 2024, 76,979 common shares, which were
previously held in treasury, were assigned to participants of
the equity incentive plans as a result of the vesting of certain
performance share unit and retention restricted share
unit awards. On the same day, the Company purchased
35,189 common shares, for a total consideration of
€13,548 thousand, from a group of those employees who
were assigned shares in order to cover the individual’s
taxable income as is standard practice (“Sell to Cover”) in a
cross transaction.
(8)
In relation to common shares, refers to share awards vested
under the broad-based employee share ownership plan.
419
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
THE LOYALTY VOTING STRUCTURE
The purpose of the loyalty voting structure is to re-
ward ownership of the Company’s common shares
and to promote stability of the Company’s share-
holder base by granting long-term shareholders of
the Company with special voting shares. Following
the separation of Ferrari from the Stellantis Group
(previously referred to as Fiat Chrysler Automobiles
N.V. or FCA prior to the merger between FCA and
Peugeot S.A. completed on January 16, 2021, which
resulted in the creation of Stellantis N.V.) in 2016,
Exor N.V. (“Exor”) and Piero Ferrari participate in the
Company’s loyalty voting program and, therefore,
effectively hold two votes for each of the common
shares they hold. Investors who purchase common
shares may elect to participate in the loyalty voting
program by registering their common shares in the
loyalty share register and holding them for three
years. The loyalty voting program will be affected by
means of the issue of special voting shares to eligi-
ble holders of common shares. Each special voting
share entitles the holder to exercise one vote at the
Company’s shareholder meetings. Only a minimal
dividend accrues to the special voting shares allo-
cated to a separate special dividend reserve, and the
special voting shares do not carry any entitlement to
any other reserve of the Group. The special voting
shares have only immaterial economic entitlements
and, as a result, do not impact the Company’s earn-
ings per share calculation.
SHARE PREMIUM
The share premium reserve amounted to €5,768,544
thousand at both December 31, 2024 and December
31, 2023.
RETAINED EARNINGS
Following approval of the annual accounts by the
shareholders at the Annual General Meeting of the
Shareholders on April 17, 2024, a dividend distribu-
tion of €2.443 per outstanding common share was
approved, corresponding to a total distribution of
€439,918 thousand, which was fully paid in 2024.
The distribution was made from the retained earn-
ings reserve.
Following approval of the annual accounts by
the shareholders at the Annual General Meeting of
the Shareholders on April 14, 2023, a dividend dis-
tribution of €1.810 per outstanding common share
was approved, corresponding to a total distribution
of €328,631 thousand, which was fully paid in 2023.
The distribution was made from the retained earn-
ings reserve.
OTHER RESERVES
Other reserves include, among others:
• a treasury reserve of €2,285,756 thousand at
December 31, 2024 and €1,704,673 thousand at
December 31, 2023.
• a share-based compensation reserve of €45,793
thousand at December 31, 2024 and €38,106
thousand at December 31, 2023.
• a legal reserve of €110 thousand at December 31,
2024 and €46 thousand at December 31, 2023,
determined in accordance with Dutch law.
Pursuant to Dutch law, limitations exist relating to
the distribution of shareholders’ equity up to at least
the total amount of the legal reserve, as well as oth-
er reserves mandated per the Company Articles
of Association. At December 31, 2024, the legal and
non-distributable reserves of the Company amount-
ed to €110 thousand (€46 thousand at December 31,
2023) and included the following:
The UK branch operates in Pound Sterling. At
each reporting period end, the assets and liabilities
within the UK branch are translated to Euro and
the respective foreign currency translation gain or
loss is recorded in other comprehensive income.
At December 31, 2024, the cumulative translation
reserve amounted to €104 thousand (€40 thousand
at December 31, 2023).
The Company records a statutory non-distribut-
able reserve equal to 1 percent of the nominal value
of the special voting shares. At December 31, 2024
this reserve amounted to €6 thousand (€6 thousand
at December 31, 2023).
420
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
RECONCILIATION OF EQUITY AND NET PROFIT
The reconciliation of equity as per the Consolidated Financial Statements
to equity as per the Company Financial Statements is provided below:
At December 31,
2024
2023
(€ thousand)
Equity attributable to owners of the parent in the
Consolidated Financial Statements of Ferrari N.V.
3,533,946
3,060,888
Intra-group restructuring
5,969,427
5,969,427
Difference in OCI reserves
(13,039)
(64,868)
Cumulative results of prior years of subsidiaries in the Consolidated
Financial Statements
(6,443,480)
(5,074,191)
Results of subsidiaries in the Consolidated Financial Statements
(1,660,336)
(1,369,289)
Cumulative dividends in prior years
2,416,700
1,916,700
Other changes
(2,704)
(2,709)
Dividends
950,000
500,000
Equity in the Company Financial Statements of Ferrari N.V
4,750,514
4,935,958
The reconciliation of net profit as per the Consolidated Financial
Statements to net profit as per the Company Financial Statements is
provided below:
At December 31,
2024
2023
(€ thousand)
Net profit attributable to owners of the parent
in the Consolidated Financial Statements of Ferrari N.V.
1,521,877
1,252,048
Results of subsidiaries in the Consolidated Financial Statements
(1,660,336)
(1,369,289)
Dividends
950,000
500,000
Net profit in the Company Financial Statements of Ferrari N.V.
811,541
382,759
(14)
SHARE-BASED COMPENSATION
EQUITY INCENTIVE PLANS
The Group has several equity incentive plans under
which a combination of performance share units
(“PSUs”) and retention restricted share units (“RSUs”),
which each represent the right to receive one Ferrari
common share, have been awarded to the Executive
Chairman, the Chief Executive Officer (“CEO”), mem-
bers of the Ferrari Leadership Team (hereinafter also
the “FLT”) and other key employees of the Group.
EQUITY INCENTIVE PLAN 2021-2023
In the first quarter of 2024, 41,338 2021-2023 PSU
awards vested (representing 122 percent of the
target PSU awards) as a result of the achievement
of the related performance conditions and 29,550
2021-2023 RSU awards vested upon achievement
of the related service conditions As a result, 70,888
common shares, which were previously held in trea-
sury, were assigned to participants of the plan in the
first quarter of 2024. There are no further awards
outstanding for the Equity Incentive Plan 2021-2023.
EQUITY INCENTIVE PLAN 2022-2024
Under the Equity Incentive Plan 2022-2024 ap-
proved in 2022, the Company awarded approxi-
mately 72 thousand 2022-2024 PSUs to the Executive
421
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Chairman, the CEO, the remaining members of the
FLT and other employees of the Group, and approx-
imately 26 thousand 2022-2024 RSUs to members
of the FLT and other employees of the Group. These
PSUs and RSUs cover the three-year performance
and service periods from 2022 to 2024.
2022-2024 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators as
follows:
• TSR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
Each target is settled independently of the other
targets.
In March 2025, 91,414 2022-2024 PSU awards
are expected to vest (representing approximately
149 percent of the target PSU awards that remained
outstanding at the time of vesting) as a result of the
achievement of the related performance conditions
(described above) and an equal number of common
shares held in treasury will be assigned to partici-
pants of the plan, following which there will be no
further 2022-2024 PSU awards outstanding.
2022-2024 RSU AWARDS
In March 2025, 21,437 2022-2024 RSU awards are ex-
pected to vest as a result of the achievement of the
related service condition, which is the recipient’s
continued employment with the Company at the
time of vesting, and an equal number of common
shares held in treasury will be assigned to partici-
pants of the plan, following which there will be no
further 2022-2024 RSU awards outstanding.
EQUITY INCENTIVE PLAN 2023-2025
Under the Equity Incentive Plan 2023-2025 approved
in
2023,
the
Company
awarded
approximate-
ly 58 thousand 2023-2025 PSUs to the Executive
Chairman, the CEO, the remaining members of the
FLT and other employees of the Group, and approx-
imately 22 thousand 2023-2025 RSUs to members
of the FLT and other employees of the Group. These
PSUs and RSUs cover the three-year performance
and service periods from 2023 to 2025.
2023-2025 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators as
follows:
• TSR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
Each target is settled independently of the other tar-
gets. The awards vest in 2026 and the total number
of shares assigned upon vesting depends on the lev-
el of achievement of the targets.
2023-2025 RSU AWARDS
The awards vest in 2026, subject to the recipient’s
continued employment with the Company at the
time of vesting.
EQUITY INCENTIVE PLAN 2024-2026
Under a new Equity Incentive Plan 2024-2026 ap-
proved in 2024, the Company awarded approxi-
mately 41 thousand 2024-2026 PSUs to the Executive
Chairman, CEO, members of the FLT and other em-
ployees of the Group, and approximately 15 thou-
sand 2024-2026 RSUs to members of the FLT and
other employees of the Group. The 2024-2026 PSUs
and 2024-2026 RSUs cover the three-year perfor-
mance and service periods from 2024 to 2026.
2024-2026 PSU AWARDS
The vesting of the awards is based on the achieve-
ment of defined key performance indicators as
follows:
• TSR Target - 40 percent of the awards vest based
on the achievement of the TSR ranking of Ferrari
compared to an industry specific Peer Group of
eleven companies;
• EBITDA Target - 40 percent of the awards vest
based on the achievement of an EBITDA target
determined by comparing Adjusted EBITDA to
422
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
the Adjusted EBITDA targets derived from the
Group’s business plan;
• ESG Target - 20 percent of the awards vest
based on the achievement of defined objectives
relating to environmental and social factors. In
particular, 50 percent of the ESG Target is based
on the reduction of CO2 carbon emissions and
50 percent is based on the maintenance of the
equal salary certification.
Each target is settled independently of the other tar-
gets. The awards vest in 2027 and the total number
of shares assigned upon vesting depends on the lev-
el of achievement of the targets.
2024-2026 RSU AWARDS
The awards vest in 2027, subject to the recipient’s
continued employment with the Company at the
time of vesting.
Supplemental information relating to the Equity Incentive Plan 2024-2026
is summarized below.
TSR TARGET
The number of 2024-2026 PSUs with a TSR Target that vest under
the Equity Incentive Plan 2024-2026 is based on the Company’s TSR
performance over the relevant performance period compared to an
industry-specific peer group as summarized below.
Ferrari TSR Ranking
% of Target Awards that Vest
1
175%
2
150%
3
125%
4
100%
5
75%
6
50%
>6
0%
The defined peer group (including the Company) for the TSR Target is
presented below.
Ferrari
Aston Martin
Burberry
Estee Lauder
Hermes
Kering
LVMH
Mercedes Benz Group AG
Moncler
Prada
Richemont
EBITDA TARGET
The number of 2024-2026 PSUs with an EBITDA Target that vest under the
Equity Incentive Plan 2024-2026 is determined by comparing Adjusted
EBITDA to the Adjusted EBITDA targets derived from the Group’s
business plan, as summarized below.
Actual Adjusted EBITDA Compared to Business Plan
% of Awards that Vest
+15%
175%
+10%
150%
+5%
125%
Business Plan Target
100%
-5%
75%
<-5%
—%
423
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
FAIR VALUES AND KEY ASSUMPTIONS
The fair value of the PSUs and RSUs that were awarded under the
Equity Incentive Plan 2024-2026, which is determined based on actuarial
calculations that apply certain assumptions and take into consideration
the specific characteristics of the awards granted, is summarized in the
following table.
Equity Incentive Plan 2024-2026
PSUs
€386.05
RSUs
€383.40
The fair value of the 2024-2026 PSU awards was measured at the grant
date using a Monte Carlo Simulation model. The fair value of the 2024-
2026 RSU awards was measured using the share price at the grant date
adjusted for the present value of future distributions which the recipients
will not receive during the vesting period.
The key assumptions utilized to calculate the grant-date fair values of the
PSUs that were awarded under the Equity Incentive Plan 2024-2026 are
summarized below:
Equity Incentive Plan 2024-2026
Grant date share price
€390.50
Expected volatility
26.34%
Dividend yield
0.61%
Risk-free rate
3.00%
The expected volatility was based on the observed volatility of the
defined peer group. The risk-free rate was based on the iBoxx sovereign
Eurozone yield.
BROAD-BASED EMPLOYEE SHARE
OWNERSHIP PLAN
In November 2023 the Company announced that it
would launch a broad-based employee share own-
ership plan under which each employee will be given
the option to become a shareholder of the Company,
receiving a one-off grant of shares worth up to a
maximum of approximately €2 thousand. If the em-
ployee holds the shares for at least 36 months, the
Company will grant them an additional tranche of
shares, from a minimum of one share and up to 15
percent of the value of the first allocation. For the
year ended December 31, 2023, the Company rec-
ognized €10,222 thousand as share-based compen-
sation expense and an increase to other reserves
within equity in relation to the shares awarded un-
der the broad-based employee share ownership
plan. In 2024, 24,715 share awards vested and the
Company granted an additional 2,796 share awards
that are expected to vest in 2025.
OTHER SHARE-BASED COMPENSATION
During 2022, the Company awarded 15,271 share
awards, which each represent the right to receive
one Ferrari common share, to certain employees, of
which 6,643 share awards vested immediately at the
grant date. In 2023 6,838 share awards vested, while
1,309 and 279 share awards were forfeited in 2023
and 2024, respectively. The fair value of the awards
was equal to €203 per award, measured using the
share price at the grant date adjusted for the pres-
ent value of future distributions which the recipients
will not receive during the vesting period.
The Company also provides share-based pay-
ments for services received as part of commercial
agreements with certain suppliers.
424
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OUTSTANDING SHARE AWARDS
The following table presents the changes to the outstanding share
awards under the Group’s share-based payment arrangements:
PSU Awards
RSU Awards
Other Awards
Total
Outstanding
Awards
Balance at December 31, 2022
140,205
87,189
57,405
284,799
Granted
58,381
21,939
63,217
143,537
Vested
(36,090)
(32,339)
(55,614)
(124,043)
Forfeited
(8,117)
(3,544)
(1,309)
(12,970)
Balance at December 31, 2023
154,379
73,245
63,699
291,323
Granted
40,885
15,401
2,796
59,082
Vested
(33,924)
(29,550)
(24,715)
(88,189)
Forfeited and other
(3,961)
(2,241)
(7,102)
(13,304)
Balance at December 31, 2024
157,379
56,855
34,678
248,912
SHARE-BASED COMPENSATION EXPENSE
The following table presents the share based compensation expense
recognized for the years ended December 31, 2024, 2023 and 2022, as
well as the unrecognized share-based compensation at December 31,
2024, 2023 and 2022.
For the years ended December 31,
2024
2023
2022
(€ thousand)
Equity incentive plans and other share-based awards
18,280
15,154
16,172
Commercial agreements with suppliers
4,813
4,563
4,688
Broad-based employee share ownership plan
875
10,222
—
Total share-based compensation expense
23,968
29,939
20,860
At December 31,
2024
2023
2022
(€ thousand)
Unrecognized share-based compensation expense
20,699
12,954
16,069
For the years ended December 31, 2024, 2023 and 2022,
the Group recognized €18,280 thousand, €15,154
thousand and €16,172 thousand, respectively, as
share-based compensation expense and an increase
to other reserves in equity in relation to the PSU awards
and RSU awards of the Group’s equity incentive plans
and other share-based awards to the Group’s em-
ployees. In 2024, 2023 and 2022 the Group recognized
share-based compensation expense of €4,813 thou-
sand, €4,563 thousand and €4,688 thousand, respec-
tively, as part of commercial agreements with certain
suppliers. For the year ended December 31, 2024 and
2023, the Group also recognized €875 thousand and
€10,222 thousand as share-based compensation ex-
pense in relation to the broad-based share ownership
plan announced in November 2023.
Pursuant
to
an
agreement
between
the
Company and various subsidiaries of the Group,
the Company recharges subsidiaries for share-
based compensation relating to equity instruments
awarded to employees or suppliers of the subsidiar-
ies under the equity incentive plans or other share-
based payments. Of the share-based compensation
recognized in 2024, €4,979 thousand was recog-
nized as an expense in cost of sales and selling, gen-
eral and administrative costs, and €18,990 thousand
was recorded as financial receivables in relation to
share-based compensation recharged to subsidiar-
ies (€3,862 thousand and €26,077 thousand respec-
tively for the year ended December 31, 2023).
425
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(15)
DEBT
The following table provides a breakdown of debt by nature and split
between current and non-current.
At December 31,
2024
2023
Current
Non-
current
Total
Current
Non-
current
Total
(€ thousand)
Financial liabilities with related parties
2,526,514
—
2,526,514
2,934,848
—
2,934,848
Bonds and notes
459,056
953,917
1,412,973
—
903,673
903,673
Borrowings from banks and other financial institutions
80,604
270,833
351,437
81,097
124,167
205,264
Lease liabilities
1,905
24,429
26,334
801
1,732
2,533
Total debt
3,068,079
1,249,179
4,317,258
3,016,746
1,029,572
4,046,318
The following tables present the change in debt, indicating separately
financing cash flows and other movements.
Financing cash flows
At December
31, 2023
Proceeds
from
borrowings
Repayments
of
borrowings
Interest
accrued/
(paid) and
other 1
At December
31, 2024
(€ thousand)
Financial liabilities with related parties
2,934,848
2,900,000
(3,300,000)
(8,334)
2,526,514
Bonds and notes
903,673
496,145
—
13,155
1,412,973
Borrowings from banks and other financial institutions
205,264
225,000
(78,333)
(494)
351,437
Lease liabilities
2,533
—
(509)
24,310
26,334
Total
4,046,318
3,621,145
(3,378,842)
28,637
4,317,258
Financing cash flows
At December
31, 2022
Proceeds
from
borrowings
Repayments
of
borrowings
Interest
accrued/
(paid) and
other 1,2
At
December
31, 2023
(€ thousand)
Financial liabilities with related parties
2,159,120
2,900,000
(2,159,120)
34,848
2,934,848
Bonds and notes
1,490,319
—
(575,702)
(10,944)
903,673
Borrowings from banks and other financial institutions
—
250,000
(47,500)
2,764
205,264
Lease liabilities
1,695
—
(672)
1,510
2,533
Total
3,651,134
3,150,000
(2,782,994)
28,178
4,046,318
(1)
Other changes in lease liabilities relate entirely to non-cash
movements for the recognition of additional lease liabilities
in accordance with IFRS 16.
(2)
Includes gains of €7,940 thousand realized on the partial
cash tender executed during the third quarter of 2023 on a
bond due in 2025.
426
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
CONTRACTUAL UNDISCOUNTED CASH FLOWS
The following tables present the contractual maturities (contractual
undiscounted cash flows, including interest) of the Company’s debt
based on relevant maturity groupings.
Contractual cash flows at December 31, 2024
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
Over 5
years
Total
contractual
cash flows
As reported at
December 31,
2024 (*)
(€ thousand)
Financial liabilities with related parties
2,571,947
—
—
—
2,571,947
2,526,514
Bonds and notes
480,802
23,075
218,525
812,804
1,535,206
1,412,973
Borrowings from banks and other financial
institutions
89,414
53,683
234,312
—
377,409
351,437
Lease liabilities
2,364
3,635
10,697
13,709
30,405
26,334
Total debt
3,144,527
80,393
463,534
826,513
4,514,967
4,317,258
Contractual cash flows at December 31, 2023
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
Over 5
years
Total
contractual
cash flows
As reported
at December
31, 2023 (*)
(€ thousand)
Financial liabilities with related parties
3,006,742
—
—
—
3,006,742
2,934,848
Bonds and notes
11,714
458,619
14,850
460,106
945,289
903,673
Borrowings from banks and other financial
institutions
86,780
83,047
46,813
—
216,640
205,264
Lease liabilities
886
804
587
425
2,702
2,533
Total debt
3,106,122
542,470
62,250
460,531
4,171,373
4,046,318
(*) As reported in the consolidated statement of financial position
FINANCIAL LIABILITIES WITH RELATED PARTIES
Financial liabilities with related parties at December 31, 2024 are broken
down as follows:
Counterparty
Currency
Total amount
outstanding at
December 31, 2024
Due date
Interest Rate
(€ thousand)
Ferrari S.p.A.
Euro
509,205
January 2025(*)
EURIBOR + 31bps
Ferrari S.p.A.
Euro
505,313
March 2025
EURIBOR + 31bps
Ferrari S.p.A.
Euro
509,952
July 2025
EURIBOR + 45bps
Ferrari S.p.A.
Euro
501,441
November 2025
EURIBOR + 45bps
Ferrari S.p.A.
Euro
500,603
December 2025
EURIBOR + 45bps
Total
2,526,514
(*) The financial liabilities due in January 2025 were refinanced with Ferrari S.p.A. for € 500 million due in January 2026 at the EURIBOR
plus spread of 45 basis point.
427
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
Financial liabilities with related parties at December 31, 2023 are broken
down as follows:
Counterparty
Currency
Total amount
outstanding at
December 31, 2023
Due date
Interest Rate
(€ thousand)
Ferrari S.p.A.
Euro
510,596
January 2024(*)
EURIBOR + 60bps
Ferrari S.p.A.
Euro
506,915
March 2024
EURIBOR + 60bps
Ferrari S.p.A.
Euro
357,689
July 2024
EURIBOR + 60bps
Ferrari S.p.A.
Euro
70,988
July 2024
EURIBOR + 60bps
Ferrari S.p.A.
Euro
806,079
October 2024
EURIBOR + 31bps
Ferrari S.p.A.
Euro
80,489
July 2024
EURIBOR + 60bps
Ferrari S.p.A.
Euro
501,927
November 2024
EURIBOR + 31bps
Ferrari S.p.A.
Euro
100,165
December 2024
EURIBOR + 31bps
Total
2,934,848
(*)
The financial liabilities due in January 2024 were refinanced with Ferrari S.p.A. for €500 million due in January 2025 at the EURIBOR
plus a spread of 31 basis point.
During 2024, certain debt agreements with Ferrari
S.p.A. were renewed. Proceeds from financial liabil-
ities with related parties amounted to €2,900,000
thousand in 2024 (€2,900,000 thousand in 2023).
Repayments of financial liabilities with related par-
ties amounted to €3,300,000 thousand in 2024
(€2,159,120 thousand in 2023).
At December 31, 2024 a 25 basis point increase
in interest rates on the floating rate financial liabili-
ties, with all other variables held constant, would
have resulted in a decrease in profit before tax of
€6,364 thousand on an annualized basis (a decrease
in profit before tax of €7,843 thousand at December
31, 2023 for an increase of 25 basis points).
The carrying amount of the financial liabili-
ties with related parties approximates fair value.
Information on covenants of the notes, fair value
measurement and qualitative and quantitative infor-
mation on financial risks are provided in Note 24,
Note 27 and Note 30, respectively, to the Consolidated
Financial Statements. Further information on the
Group’s liquidity is provided in the “Liquidity and
Capital Resources” section of this Annual Report.
Based on this information the Company deems the
going concern assumption adequate.
BONDS AND NOTES
2025 BOND
On May 27, 2020 the Company issued 1.5 percent
coupon notes due May 2025 (“2025 Bond”), having
a principal of €650 million. The notes were issued
at a discount for an issue price of 98.898 percent,
resulting in net proceeds of €640,073 thousand,
after related expenses, and a yield to maturity of
1.732 percent. The bond was admitted to trading on
the regulated market of Euronext Dublin. Following a
cash tender offer, in July 2023, the Group accepted
for purchase valid tenders of the 2025 Bond for an
aggregate nominal amount of €199,037 thousand
and at a purchase price of €191,097 thousand, result-
ing in gains of €7,940 thousand, which were recog-
nized within financial income. The repurchases were
settled in July 2023. The amount outstanding of the
2025 Bond at December 31, 2024 was €454,449 thou-
sand, including accrued interest of €4,059 thousand
(€453,027 thousand, including accrued interest of
€4,097 thousand at December 31, 2023).
2030 BOND
On May 21, 2024, the Company issued 3.625 percent
senior notes due May 2030 (“2030 Bond”) having a
principal of €500 million. The notes were issued at
a discount for an issue price of 99.677 percent, re-
sulting in net proceeds of €496,145 thousand, after
related expenses, and a yield to maturity of 3.686
percent. The bond was admitted to trading on the
regulated market of Euronext Dublin. The pro-
ceeds from the 2030 Bond are intended to be used
for general corporate purposes. The amount out-
standing of the 2030 Bond December 31, 2024 was
€507,678 thousand, including accrued interest of
€11,173 thousand.
2029 AND 2031 NOTES
On July 31, 2019, the Company issued 1.12 percent
senior notes due August 2029 (“2029 Notes”) and
1.27 percent senior notes due August 2031 (“2031
Notes”) through a private placement to certain U.S.
institutional investors, each having a principal of
€150 million. The net proceeds from the issuances
amounted to €298,316 thousand and the yields to
maturity on an annual basis equal the nominal cou-
429
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
pon rates of the notes. The 2029 Notes and the 2031
Notes are primarily used for general corporate pur-
poses, including the funding of capital expenditures.
The amount outstanding of the 2029 Notes at
December 31, 2024 was €150,302 thousand, including
accrued interest of €700 thousand (€150,218 thou-
sand, including accrued interest of €700 thousand at
December 31, 2023). The amount outstanding of the
2031 Notes at December 31, 2024 was €150,315 thou-
sand, including accrued interest of €794 thousand
(€150,246 thousand including accrued interest of
€794 thousand at December 31, 2023).
2032 NOTES
On July 29, 2021, the Company issued 0.91 per-
cent senior notes due January 2032 (“2032 Notes”)
through a private placement to certain U.S. institu-
tional investors having a principal of €150 million.
The net proceeds from the issuance amounted to
€149,495 thousand and the yield to maturity on an
annual basis equals the nominal coupon rates of the
notes. The 2032 Notes are used for general corpo-
rate purposes. The amount outstanding of the 2032
Notes at December 31, 2024 was €150,229 thou-
sand, including accrued interest of €576 thousand
(€150,182 thousand, including accrued interest of
€587 thousand at December 31, 2023).
The aforementioned bonds and notes impose
covenants on Ferrari including: (i) negative pledge
clauses which require that, in case any security
interest upon assets of Ferrari is granted in connec-
tion with other notes or debt securities with the con-
sent of Ferrari are, or are intended to be, listed, such
security should be equally and ratably extended to
the outstanding notes, subject to certain permitted
exceptions; (ii) pari passu clauses, under which the
notes rank and will rank pari passu with all other
present and future unsubordinated and unsecured
obligations of Ferrari; (iii) events of default for failure
to pay principal or interest or comply with other obli-
gations under the notes with specified cure periods
or in the event of a payment default or acceleration
of indebtedness or in the case of certain bankruptcy
events; and (iv) other clauses that are customarily
applicable to debt securities of issuers with a sim-
ilar credit standing. A breach of these covenants
may require the early repayment of the notes. At
December 31, 2024 and 2023, Ferrari was in compli-
ance with the covenants of the bonds and notes.
BORROWING FROM BANK AND OTHER FINANCIAL INSTITUTION
Amount Outstanding at December 31,
Borrowing Entity
Currency
2024
2023
Maturity Date
(€ thousand)
Ferrari NV (1)
EUR
84,115
130,224
January 2026
Ferrari NV (1)
EUR
75,497
—
January 2027
Ferrari NV (1)
EUR
41,682
75,040
March 2026
Ferrari NV (1)
EUR
150,143
—
December 2028
Total borrowings from banks
and other financial institutions
351,437
205,264
(3)
Term loans bearing an average interest rate of 3.441 percent as of December 31, 2024.
LEASE LIABILITIES
At December 31, 2024 lease liabilities amounted
to €26,334 thousand (€2,533 thousand at December
31, 2023).
COMMITTED CREDIT LINES
At December 31, 2024, the Group had total commit-
ted credit lines available and undrawn amounting to
€550 million and with maturities ranging from 2025
to 2026 (€600 million at December 31, 2023).
430
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(16)
TRADE PAYABLES
At December 31,
2024
2023
(€ thousand)
Payables due to related parties
641
475
Payables due to third parties
2,283
1,268
Total trade payables
2,924
1,743
Payables due to related parties primarily relate to amounts payable to
Ferrari S.p.A. for corporate services rendered and costs recharged.
Payables due to third parties primarily relate to costs for marketing-
related events and legal and professional services.
The following sets for a breakdown of trade payables by currency:
At December 31,
2024
2023
(€ thousand)
Euro
621
982
Pound Sterling
2,303
761
Total trade payables
2,924
1,743
Trade payables are due within one year and their carrying amount at the
reporting date is deemed to approximate their fair value.
(17)
OTHER CURRENT LIABILITIES
Other
current
liabilities
amounted
to
€26,802
thousand at December 31, 2024 (€35,051 thou-
sand at December 31, 2023) and primarily relate
to indirect tax payables, payables to personnel and
dividends.
(18)
EARNINGS PER SHARE
Earnings per share information is provided in Note
12 “Earnings per share” to the Consolidated Financial
Statements.
(19)
NOTE TO THE STATEMENT
OF CASH FLOWS
OPERATING ACTIVITIES
Other non-cash income and expenses for 2024 and
2023 primarily relate to share-based compensation
expense and for 2023 also to gains of €7,940 thousand
realized on the partial cash tender executed during
the third quarter of 2023 on a bond due in 2025.
431
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(20)
AUDIT FEES
The fees for services provided by the Company’s independent auditors,
Deloitte Accountants B.V., and its member firms and/or affiliates, to the
Company and its subsidiaries are broken down as follows:
At December 31,
2024
2023
(€ thousand)
Audit fees
1,330
1,254
Tax fees
2
9
Audit-related fees
315
265
All other fees
549
60
Total
2,196
1,588
In 2024, audit fees and audit-related fees of Deloitte Accountants B.V.
(excluding its member firms and/or affiliates) amounted to €88 thousand
and €295 thousand, respectively, and are included in the table above.
In 2023, audit fees and audit-related fees of Deloitte Accountants B.V.
(excluding its member firms and/or affiliates) amounted to €88 thousand
and €50 thousand, respectively, and are included in the table above.
(21)
REMUNERATION
Detailed information on the remuneration of the
Board of Directors and senior management is includ-
ed in the “Corporate Governance” and “Remuneration
of Directors” sections to the Annual Report.
(22)
COMMITMENTS AND CONTINGENCIES
At December 31, 2024 and 2023, the Company pro-
vided guarantees over certain debt of its subsidiary
Ferrari Financial Services Inc. The book value of the
related debt at December 31, 2024 and 2023 was
€63,181 thousand and €73,153 thousand, respectively.
For intercompany financial guarantees issued
by the Company there is no significant expected
default and therefore the financial guarantees are
not recognized.
(23)
RELATED PARTY TRANSACTIONS
Pursuant to IAS 24, the related parties with which
the Company has transactions are Ferrari S.p.A.
and other companies within the Ferrari Group. The
Group carries out transactions with related parties
on commercial terms that are normal in their re-
spective markets, considering the characteristics
of the goods or services involved.
Related party transactions include:
• Dividends received from Ferrari S.p.A. (Note 4);
• Corporate services and recharge of expenses
to Ferrari S.p.A. (Note 3);
• Share services received from Ferrari S.p.A.
mainly related to human resources, payroll, tax,
legal, accounting and treasury. (Note 5);
• Participation in a Ferrari Group-wide cash man-
agement system where the operating cash man-
agement, main funding operations and liquidity
investment of the Ferrari Group are centrally
coordinated by Ferrari S.p.A. Amounts recorded
as Ferrari Group cash management pools rep-
resented the Company’s participation in such
pools. (Note 11);
• Financial liabilities and receivables with Ferrari
S.p.A. or other subsidiaries of the Group. (Note
15 and Note 16);
• Key management compensation. (Note 21).
The impact of transactions with related parties on
the Company Financial Statements is disclosed sep-
arately in the relevant notes.
432
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(24)
ORGANIZATIONAL STRUCTURE
The following table sets forth the Company’s subsidiaries and associates
at December 31, 2024.
Name
Country
Nature of business
Shares held by
the Group
Subsidiaries directly held
Ferrari S.p.A.
Italy
Engineering,
manufacturing and sales
100%
New Business 33 S.p.A. (1)
Italy
Engineering,
manufacturing and sales
100%
Subsidiaries 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%
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 Europe GmbH
Germany
Service company
100%
G.S.A. S.A. in liquidation
Switzerland
Service company
100%
Mugello Circuit S.p.A.
Italy
Racetrack management
100%
Ferrari Financial Services, Inc.
USA
Financial services
100%
Subsidiaries indirectly held through other Group entities
Ferrari Auto Securitization Transaction, LLC (2)
USA
Financial services
100%
Ferrari Auto Securitization Transaction - Lease, LLC(2)
USA
Financial services
100%
Ferrari Auto Securitization Transaction - Select, LLC(2)
USA
Financial services
100%
Ferrari Financial Services Titling Trust(2)
USA
Financial services
100%
Ferrari Lifestyle North America, Inc.(3)(4)
USA
Retail
100%
Associates directly held
Fondazione Casa di Enzo Ferrari
Italy
Service company
20%
Branches
UK branch
UK
Sales and after sales
support
(1)
With effectiveness as of January 1, 2025, New Business 33 S.p.A. was merged by incorporation into Ferrari S.p.A.
Shareholding held by Ferrari Financial Services, Inc. within the context
of securitization transactions for receivables generated by the Group’s
financial services activities in the United States.
SHAREHOLDING HELD BY FERRARI NORTH AMERICA, INC.
Effective as of January 12, 2024, the company changed its name from
410 Park Display, Inc to Ferrari Lifestyle North America, Inc.
433
FINANCIAL STATEMENTS
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
(25)
SUBSEQUENT EVENTS
The Company has evaluated subsequent events
through February 20, 2025, which is the date the
Company Financial Statements were authorized for
issuance, and identified the following matters:
Under the common share repurchase pro-
gram, from January 1, 2025 to February 14, 2025 the
Company purchased an additional 188,303 com-
mon shares for total consideration of €78.2 million.
At February 14, 2025, the Company held in treasury
an aggregate of 15,067,471 common shares.
On February 20, 2025, the Board of Directors of
Ferrari N.V. recommended to the Company’s share-
holders that the Company declare a dividend of
€2.986 per common share, totaling approximately
€534 million. The proposal is subject to the approval
of the Company’s shareholders at the Annual
General Meeting to be held on April 16, 2025.
February 20, 2025
[Board of Directors]
John Elkann
Piero Ferrari
Benedetto Vigna
Delphine Arnault
Francesca Bellettini
Eddy Cue
Sergio Duca
John Galantic
Maria Patrizia Grieco
Adam Keswick
Mike Volpi
437
OTHER
INFORMATION
437
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
438
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
439
OTHER INFORMATION
ADDITIONAL INFORMATION FOR NETHERLANDS
CORPORATE GOVERNANCE
INDEPENDENT AUDITOR’S REPORT
The report of the Company’s independent auditor,
Deloitte Accountants B.V., the Netherlands, is set
forth at the end of this Annual Report.
DIVIDENDS
Dividends will be determined in accordance with ar-
ticle 23 of the Articles of Association of Ferrari N.V.
The relevant provisions of the Articles of Association
read as follows:
1.
The Company shall maintain a special capital re-
serve to be credited against the share premium
exclusively for the purpose of facilitating any is-
suance or cancellation of special voting shares.
The special voting shares shall not carry any
entitlement to the balance of the special capi-
tal reserve. The Board of Directors shall be au-
thorized to resolve upon (i) any distribution out
of the special capital reserve to pay up special
voting shares or (ii) re-allocation of amounts to
credit or debit the special capital reserve against
or in favor of the share premium reserve.
2.
The Company shall maintain a separate dividend
reserve for the special voting shares. The special
voting shares shall not carry any entitlement to
any other reserve of the Company. Any distribu-
tion out of the special voting rights dividend re-
serve or the partial or full release of such reserve
will require a prior proposal from the Board of
Directors and a subsequent resolution of the
meeting of holders of special voting shares.
3.
From the profits, shown in the annual accounts,
as adopted, such amounts shall be reserved as
the Board of Directors may determine.
4.
The profits remaining thereafter shall first be
applied to allocate and add to the special voting
shares dividend reserve an amount equal to one
percent (1%) of the aggregate nominal value of
all outstanding special voting shares. The calcu-
lation of the amount to be allocated and added to
the special voting shares dividend reserve shall
occur on a time-proportionate basis. If special
voting shares are issued during the financial
year to which the allocation and addition per-
tains, then the amount to be allocated and add-
ed to the special voting shares dividend reserve
in respect of these newly issued special voting
shares shall be calculated as from the date on
which such special voting shares were issued
until the last day of the financial year concerned.
The special voting shares shall not carry any oth-
er entitlement to the profits.
5.
Any profits remaining thereafter shall be at the
disposal of the general meeting of Shareholders
for distribution of profits on the common shares
only, subject to the provision of paragraph 8 of
this article.
6.
Subject to a prior proposal of the Board of
Directors, the general meeting of Shareholders
may declare and pay distribution of profits and
other distributions in United States Dollars.
Furthermore, subject to the approval of the gen-
eral meeting of Shareholders and the Board of
Directors having been designated as the body
competent to pass a resolution for the issuance of
shares in accordance with Article 6, the Board of
Directors may decide that a distribution shall be
made in the form of shares or that Shareholders
shall be given the option to receive a distribution
either in cash or in the form of shares.
7.
The Company shall only have power to make
distributions to Shareholders and other per-
sons entitled to distributable profits to the ex-
tent the Company’s equity exceeds the sum of
the paid in and called up part of the share capital
and the reserves that must be maintained pur-
suant to Dutch law and the Company’s Articles
of Association. No distribution of profits or oth-
er distributions may be made to the Company
itself for shares that the Company holds in its
own share capital.
8.
The distribution of profits shall be made after
the adoption of the annual accounts, from which
it appears that the same is permitted.
9.
The Board of Directors shall have power to de-
clare one or more interim distributions of prof-
its, provided that the requirements of paragraph
7 hereof are duly observed as evidenced by an
interim statement of assets and liabilities as re-
ferred to in Section 2:105 paragraph 4 of the
Dutch Civil Code and provided further that the
policy of the Company on additions to reserves
and distributions of profits is duly observed. The
provisions of paragraphs 2 and 3 hereof shall
apply mutatis mutandis.
10. The Board of Directors may determine that dis-
tributions are made from the Company’s share
premium reserve or from any other reserve,
provided that payments from reserves may
only be made to the Shareholders that are enti-
tled to the relevant reserve upon the dissolution
of the Company.
11. Distributions of profits and other distributions
shall be made payable in the manner and at such
date(s) - within four (4) weeks after declaration
thereof - and notice thereof shall be given, as the
general meeting of Shareholders, or in the case
of interim distributions of profits, the Board of
Directors shall determine.
12. Distributions of profits and other distribu-
tions, which have not been collected within five
(5) years and one (1) day after the same have
become payable, shall become the property
of the Company.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
440
BRANCH OFFICES
Please refer to Note 24 “Organizational Structure” to
the Company Financial Statements included in this
Annual Report.
ADDITIONAL INFORMATION
OFFER AND LISTING DETAILS
In the United States, our common shares are listed
and traded on the NYSE (trading symbol “RACE”).
Our common shares are also listed and traded on
the Euronext Milan (trading symbol “RACE”).
DIVIDEND POLICY
Subject to the approval by the Shareholders at the
2025 Annual General Meeting, the Company intends
to make a dividend distribution to the holders of
common shares of Euro 2.986 per common share,
corresponding to a total dividend distribution to
shareholders of approximately Euro 534 million.
We intend to return capital to holders of common
shares over time through a sustainable dividend policy
designed to provide adequate returns to sharehold-
ers, while supporting growth and protecting our cred-
itworthiness in order to facilitate access to external
funding. We intend to pay 35 percent of our annual net
profit by way of dividend in the coming years; how-
ever, the actual level of dividends will be subject to
our earnings, cash balances, commitments, strategic
plans and other factors that our Board of Directors
may deem relevant at the time of the dividend, includ-
ing adjustments for income or costs that are signifi-
cant in nature but expected to occur infrequently. For
additional information on distribution of profits, refer
to “Corporate Governance—Memorandum and Articles
of Association”. Our dividend policy is subject to change
in the future based on changes in statutory require-
ments, market trends, strategic developments, capital
requirements and a number of other factors.
All issued and outstanding common shares will
rank equally and will be eligible for any profit or
other payment that may be declared on the com-
mon shares. Pursuant to our Articles of Association,
holders of special voting shares are entitled to a
minimum dividend, which is allocated to the special
dividend reserve. A distribution from the special div-
idend reserve or the (partial) release of the special
dividend reserve will require a prior proposal from
the Board of Directors and a subsequent resolution
of the meeting of holders of special voting shares.
Ferrari does not intend to propose any distribution
from the special dividend reserve.
For additional information on distribution of prof-
its, refer to “Corporate Governance—Memorandum
and Articles of Association”. In addition, we are carry-
ing out a share repurchase program. For additional
information please refer to “Other Information—
Additional
Information—Purchases
of
Equity
Securities by the Issuer and Affiliated Purchasers”.
PRINCIPAL ACCOUNTANT
FEES AND SERVICES
Deloitte & Touche S.p.A., the member firms of
Deloitte and their respective affiliates (collectively,
the “Deloitte Entities”) served as our independent
registered public accounting firm for the years end-
ed December 31, 2024 and 2023. We incurred the
following fees for professional services that for the
years ended December 31, 2024 and 2023 referred
to the Deloitte Entities:
For the years ended December 31,
2024
2023
(€ thousands)
Audit fees
1,330
1,254
Tax fees
2
9
Audit-related fees
315
265
All other fees
549
60
Total
2,196
1,588
“Audit fees” are the aggregate fees earned by the
Principal Accountant Entities for the audit of our
consolidated annual financial statements, reviews
of interim financial statements and attestation ser-
vices that are provided in connection with statuto-
ry and regulatory filings or engagements. “Tax fees”
are the aggregate fees charged by the Principal
Accountant for professional services rendered for
tax compliance activities. “Audit-related fees” are
fees charged by the Deloitte Entities for assurance
and related services that are reasonably related to
the performance of the audit or review of our finan-
cial statements and are not reported under “Audit
fees”. This category comprises fees for agreed-upon
procedures engagements and other attestation ser-
vices subject to regulatory requirements. “All other
fees” are fees earned by the Principal Accountant
for non-audit services rendered in connection with
new CSRD rules and a bond issuance.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
441
AUDIT COMMITTEE’S PRE-APPROVAL
POLICIES AND PROCEDURES
Our Audit Committee nominates and engages our
independent registered public accounting firm to
audit our consolidated financial statements. Our
Audit Committee has a policy requiring manage-
ment to obtain the Audit Committee’s approval be-
fore engaging our independent registered public
accounting firm to provide any other audit or per-
mitted non-audit services to us or our subsidiaries.
Pursuant to this policy, which is designed to ensure
that such engagements do not impair the indepen-
dence of our independent registered public ac-
counting firm, the Audit Committee reviews and
pre-approves (if appropriate) specific audit and
non- audit services in the categories Audit Services,
Audit-Related Services, Tax Services, and any other
services that may be performed by our independent
registered public accounting firm.
CHANGE IN REGISTRANT’S CERTIFYING
ACCOUNTANT
Not applicable.
PURCHASES OF EQUITY SECURITIES BY THE
ISSUER AND AFFILIATED PURCHASERS
A multi-year share repurchase program of up to
Euro 1.5 billion executed between 2019 and 2022
was announced by the Company at the 2018 Capital
Markets Day (the “First Program”). Completing in
May 2022, this program consisted of six tranches
of common shares repurchases, in addition to pur-
chases in relation to the Sell-to-Cover program, and
reached a total amount of Euro 960 million.
A new multi-year share repurchase program of
approximately Euro 2 billion expected to be executed
by 2026 (the “Second Program”) was announced by
the Company at the Capital Markets Day held on June
16, 2022 and replaced the First Program.
Between July 1, 2022 and October 20, 2023
Ferrari executed the first three tranches of the
Second Program for consideration of €550 million,
referred to as the “First Tranche”, “Second Tranche”
and “Third Tranche”, respectively.
Between November 8, 2023 and June 26, 2024
Ferrari executed the fourth tranche of the Second
Program for consideration of €350 million (the
“Fourth Tranche”).
Between July 1, 2024 and November 26, 2024
Ferrari executed the fifth tranche of the Second
Program for consideration of €250 million (the
“Fifth Tranche”).
On December 5th 2024, Ferrari announced the
launch of a sixth tranche of up to Euro 150 million in
common share repurchases (the “Sixth Tranche”). The
Sixth Tranche started on December 6th, 2024 and is
expected to be completed within February 20th, 2025.
The First Tranche and the Second Tranche of
the Second Program implemented the resolutions
adopted by the Shareholders’ Meeting held on April
13, 2022, the Third Tranche and the Fourth Tranche
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
442
of the Second Program implemented the resolutions
adopted by the Shareholders’ Meeting held on April
14, 2023, the Fifth Tranche and the Sixth Tranche
of the Second Program implemented the resolu-
tions adopted by the Shareholders’ Meeting held
on April 17, 2024. Such resolutions authorized the
purchase of up to 10% of the Company’s common
shares during the eighteen-month period following
such Shareholders’ Meeting, with the repurchase
authority granted in the 2024 meeting currently set
to expire on October 16, 2025 unless extended or
renewed before such date.
As of December 31, 2024, Ferrari’s common
shares held in treasury amounted to 14,879,168
and special voting shares held in treasury amounted
to 16,239.
The following table reports purchases of Ferrari equity securities by the
Company during the year ended December 31, 2024, which were made
under the Fourth Tranche, the Fifth Tranche and the Sixth Tranche under
the aforementioned second multi-year share repurchase program
announced on June 16, 2022.
Period
Total Number of
Shares Purchased
Average Price
Paid per Share 1,2
(€)
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
Approximate Value of
Shares that May Yet Be
Purchased under the
Plans or Programs
(€)
Jan 1 to Jan 31, 2024
138,393
313.9669
138,393
1,325,142,822
Feb 1 to Feb 28, 2024
94,150
366.5466
94,150
1,290,632,460
March 1 to March 31, 2024
111,210
392.0377
111,210
1,247,033,947
April 1 to April 30, 2024
93,721
389.0884
93,721
1,210,568,192
May 1 to May 31, 2024
186,676
383.6134
186,676
1,138,956,781
June 1 to June 30, 2024
101,272
384.8915
101,272
1,099,978,049
July 1 to July 31, 2024
159,077
388.1435
159,077
1,038,233,348
Aug 1 to Aug 31, 2024
33,616
437.4443
33,616
1,023,528,220
Sept 1 to Sept 30, 2024
164,052
426.3820
164,052
953,579,394
Oct 1 to Oct 31, 2024
153,578
421.9008
153,578
888,784,715
Nov 1 to Nov 30, 2024
93,759
413.8168
93,759
849,985,665
Dec 1 to Dec 31, 2024
110,760
422.0196
110,760
803,242,778
Total
1,440,264
392.5328
1,440,264
(1)
Repurchases made under the Fourth, Fifth and Sixth
Tranche of the abovementioned second multi-year share
repurchase program announced at the Capital Markets Day
held on June 16, 2022. The Fourth Tranche was completed
on June 26, 2024, the Fifth Tranche was completed on
November 26, 2024. The Sixth Tranche of the Second
Program commenced on December 6, 2024.
(2)
Share repurchases made on the NYSE have been converted
into Euro from U.S. Dollars at the exchange rate reported by the
European Central Bank on the respective transaction dates.
In addition to the above, in the context of the Group’s
employee equity incentive plans:
• on March 15, 2024 the Company assigned a to-
tal of 76,979 common shares, previously held in
treasury, to certain employees of the Group. On
the same day, Ferrari purchased, in a “cross or-
der” transaction executed on the Euronext Milan,
a total of 35,189 common shares from a group
of those employees in order to cover such indi-
viduals’ taxable income in line with market prac-
tice (Sell to Cover) at the average price of Euro
385.0000 per share.
TAXATION
MATERIAL UNITED STATES FEDERAL
INCOME TAX CONSEQUENCES
Ferrari N.V. is a public limited company organized in
the Netherlands that is classified as a foreign corpo-
ration for U.S. federal income tax purposes.
This section describes the material U.S. federal
income tax consequences of owning Ferrari com-
mon shares and special voting shares. It applies
solely to “U.S. holders” (as defined below) that hold
common shares or special voting shares of Ferrari
as capital assets.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
443
For purposes of this discussion, a “U.S. holder” is a
beneficial owner of common shares of Ferrari that is:
• an individual that is a citizen or tax resident of the
United States;
• a corporation, or other entity taxable as a corpo-
ration, created or organized under the laws of
the United States;
• an estate whose income is subject to U.S. federal
income tax, regardless of the income’s source; or
• a trust if (i) a U.S. court can exercise primary su-
pervision 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.
This section does not apply to holders that are U.S.
persons that are generally subject to special income
tax rules, including:
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 spe-
cial voting shares of Ferrari pursuant to the ex-
ercise of employee stock options or otherwise
as compensation, or
• a person whose functional currency is not the
U.S. Dollar.
This section is based on the Internal Revenue Code
of 1986, as amended (the “Code”), its legislative his-
tory, existing and proposed regulations, published
rulings and court decisions, as well as on applicable
tax treaties, all as of the date hereof. These laws are
subject to change, possibly on a retroactive basis.
If an entity or arrangement treated as a part-
nership for U.S. federal income tax purposes holds
shares, the U.S. federal income tax treatment of a
partner will generally depend on the status of the
partner and the tax treatment of the partnership (i.e.,
an aggregate theory of partnership taxation may
apply to look-through the partnership to the ultimate
partner). A partner in an entity treated as a partner-
ship for U.S. federal income tax purposes holding
shares should consult its tax advisors regarding the
U.S. federal income tax treatment of the ownership
of Ferrari common shares.
All holders of Ferrari common shares and spe-
cial voting shares should consult their own tax advi-
sors regarding the U.S. federal, state and local and
foreign and other tax consequences of owning and
disposing of Ferrari common shares in their partic-
ular circumstances.
TAXATION OF DIVIDENDS
Under the U.S. federal income tax laws, and subject
to the discussion of the taxation of a passive foreign
income company (“PFIC”) below, a U.S. holder must
include in its gross income the gross amount of any
dividend paid by Ferrari to the extent of its current
or accumulated earnings and profits (as determined
under U.S. federal income tax principles). Dividends
will be taxed as ordinary income to the extent that
they are paid out of Ferrari’s current or accumulat-
ed earnings and profits. Dividends paid to a non-cor-
porate U.S. holder by certain “qualified foreign cor-
porations” that constitute qualified dividend income
may be taxable to the holder at the preferential rates
applicable to long-term capital gains provided that
the holder holds the shares for more than 60 days
during the 121-day period beginning 60 days before
the ex-dividend date and the U.S. holder meets other
holding period and tax treaty eligibility requirements.
For this purpose, common shares of Ferrari are
treated as stock of a “qualified foreign corporation”
if Ferrari is either eligible for the benefits of an appli-
cable comprehensive income tax treaty with the
United States or if such stock is readily tradable on
an established securities market in the United States.
The common shares of Ferrari are listed on the New
York Stock Exchange and Ferrari expects to be eli-
gible for the benefits of such a treaty. Accordingly,
subject to the discussion of PFIC taxation below, div-
idends Ferrari pays with respect to the shares are
expected to constitute qualified dividend income,
assuming the holding period requirements are
met. However, no assurance can be given that the
common shares of Ferrari will be treated as readily
tradable on an established securities market in the
United States or that Ferrari will qualify for the ben-
efits of a comprehensive income tax treaty with the
United States. Further, no assurance can be given
that the U.S. holder receiving such dividend will be
eligible for the benefits of such a treaty.
If non-U.S. withholding tax is withheld from a div-
idend payment to a U.S. holder, the U.S. holder must
generally include the gross dividend in income even
though the U.S. holder does not in fact receive the
gross amount. The dividend is generally taxable to
a U.S. holder when the U.S. holder receives the div-
idend, actually or constructively.
With respect to U.S. holders that are U.S.
C-corporations, a deduction may generally be
available for dividend income received from a
10% or more owned non-U.S. subsidiary company.
Subject to limitation, certain U.S. holders that are
U.S. C-corporations may be eligible for a dividends
received deduction.
Distributions in excess of current and accumu-
lated earnings and profits, as determined for U.S.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
444
federal income tax purposes, will be treated as a
non-taxable return of capital to the extent of the U.S.
holder’s tax basis in Ferrari common shares, caus-
ing a reduction in the U.S. holder’s adjusted basis in
Ferrari common shares. Any distribution in excess
of tax basis will likely be considered a capital gain.
Subject to certain limitations, any non-U.S. tax
withheld and paid over to a non-U.S. taxing authority
is generally eligible for credit against a U.S. holder’s
U.S. federal income tax liability. The amount allowed
to a U.S. holder as a credit is subject to a general
limitation to the amount of the U.S. holder’s U.S. fed-
eral income tax liability that is attributable to income
from non-U.S. sources and is computed separately
with respect to different types of income that the
U.S. holder receives from non-U.S. sources. Further
limitation may apply to the extent a refund of the tax
withheld is available to the U.S. holder under non-
U.S. tax law or under an applicable tax treaty. Subject
to the discussion below regarding Section 904(h)
of the Code, dividends paid by Ferrari will be for-
eign source income and will generally be “passive”
income for purposes of computing the foreign tax
credit allowable to a U.S. holder.
Under Section 904(h) of the Code, dividends paid
by a foreign corporation that is 50 percent or more
owned, by vote or value, by U.S. persons may be
treated as U.S. source income (rather than foreign
source income) for foreign tax credit purposes, to
the extent the foreign corporation earns U.S. source
income, unless such corporation has less than 10
percent of applicable earnings and profits attrib-
utable to sources within the U.S. In certain circum-
stances, U.S. holders may be able to choose the ben-
efits of Section 904(h)(10) of the Code and elect to
treat dividends that would otherwise be U.S. source
dividends as foreign source dividends, but in such a
case the foreign tax credit limitations would be sepa-
rately determined with respect to such “resourced”
income. In general, therefore, the application of
Section 904(h) of the Code may adversely affect a
U.S. holder’s ability to use foreign tax credits. Ferrari
does not believe that it is 50 percent or more owned
by U.S. persons. In addition, Ferrari believes that its
earnings and profits attributable to sources within
the U.S. will not exceed 10 percent of applicable earn-
ings and profits. However, these conclusions are
factual determinations and are subject to change; no
assurance can therefore be given that Ferrari may
not be treated as 50 percent or more owned by U.S.
persons for purposes of Section 904(h) of the Code
or that less than 10 percent of Ferrari’s earnings
and profits will be attributable to sources within the
U.S. U.S. holders are strongly urged to consult their
own tax advisors regarding the possible impact if
Section 904(h) of the Code should apply.
TAXATION OF CAPITAL GAINS
Subject to the discussion of PFIC taxation and ex-
pected tax consequences of the Separation below,
a U.S. holder that sells or otherwise disposes of its
Ferrari common shares will recognize capital gain
or loss for U.S. federal income tax purposes equal
to the difference between the U.S. Dollar value of
the amount that the U.S. holder realizes and the U.S.
holder’s tax basis in those shares. Capital gain of a
noncorporate U.S. holder may be taxed at preferen-
tial rates where the property is held for more than
one year. For foreign tax credit limitation purpos-
es, the source of such income will generally be U.S.
source. A resourcing provision may apply under ap-
plicable domestic law or tax treaty to recharacterize
the source to non-U.S. source. The deduction of cap-
ital losses is subject to limitations.
Nonresident alien individual(s) present in the
United States for a period or periods aggregating
183 days or more during the taxable year may be
subject to U.S. income taxation upon the disposition
of capital property.
LOYALTY VOTING PROGRAM
NO STATUTORY, JUDICIAL OR ADMINISTRATIVE
AUTHORITY
DIRECTLY
DISCUSSES
HOW
THE
RECEIPT,
OWNERSHIP
OR
DISPOSITION
OF
SPECIAL VOTING SHARES SHOULD BE TREATED
FOR U.S. FEDERAL INCOME TAX PURPOSES AND
AS A RESULT, THE U.S. FEDERAL INCOME TAX
CONSEQUENCES ARE UNCERTAIN. ACCORDINGLY,
WE URGE U.S. HOLDERS TO CONSULT THEIR TAX
ADVISOR AS TO THE TAX CONSEQUENCES OF
THE RECEIPT, OWNERSHIP AND DISPOSITION OF
SPECIAL VOTING SHARES.
Receipt of special voting shares
If a U.S. holder receives special voting shares, the
tax consequences of the receipt of special voting
shares is unclear. While distributions of stock are
tax-free in certain circumstances, it is possible that
the distribution of special voting shares could be
treated as a distribution subject to tax as described
above in “—Taxation of Dividends” if such distribution
were considered to result in a “disproportionate dis-
tribution”. If the distribution of special voting shares
were so treated, the amount of the distribution
should equal the fair market value of the special vot-
ing shares received. Ferrari believes and intends to
take the position that the value of each special voting
share is minimal. However, because the fair market
value of the special voting shares is factual and is not
governed by any guidance that directly addresses
such a situation, the IRS could assert that the value of
the special voting shares (and thus the amount of the
distribution) as determined by Ferrari is incorrect.
Ownership of special voting shares
Ferrari believes that U.S. holders holding special vot-
ing shares should not have to recognize income in
respect of amounts transferred to the special voting
shares dividend reserve that are not paid out as div-
idends. Section 305 of the Code may, in certain cir-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
445
cumstances, require a holder of preferred shares to
recognize income even if no dividends are received
on such shares if the preferred shares are redeem-
able at a premium and the redemption premium
results in a “constructive distribution”. Preferred
shares for this purpose refer to shares that do not
participate in corporate growth to any significant
extent. Ferrari believes that Section 305 of the Code
should not apply to any amounts transferred to the
special voting shares dividend reserve that are not
paid out as dividends so as to require current in-
come inclusion by U.S. holders because, among
other things, (i) the special voting shares are not re-
deemable on a specific date and a U.S. holder is only
entitled to receive amounts in respect of the special
voting shares upon liquidation, (ii) Section 305 of the
Code does not require the recognition of income in
respect of a redemption premium if the redemption
premium does not exceed a de minimis amount and,
even if the amounts transferred to the special vot-
ing shares dividend reserve that are not paid out as
dividends are considered redemption premium, the
amount of the redemption premium is likely to be
“de minimis” as such term is used in the applicable
Treasury Regulations. Ferrari therefore intends to
take the position that the transfer of amounts to the
special voting shares dividend reserve that are not
paid out as dividends does not result in a “construc-
tive distribution”, and this determination is binding
on all U.S. holders of special voting shares other than
a U.S. holder that explicitly discloses its contrary de-
termination in the manner prescribed by the appli-
cable regulations. However, because the tax treat-
ment of the loyalty voting program is unclear and
because Ferrari’s determination is not binding on
the IRS, it is possible that the IRS could disagree with
Ferrari’s determination and require current income
inclusion in respect of such amounts transferred to
the special voting shares dividend reserve that are
not paid out as dividends.
Disposition of special voting shares
The tax treatment of a U.S. holder that has its spe-
cial voting shares redeemed for zero consideration
after removing its common shares from the Loyalty
Register is unclear. It is possible that a U.S. hold-
er would recognize a loss to the extent of the U.S.
holder’s basis in its special voting shares. Such loss
would be a capital loss and would be a long-term
capital loss if a U.S. holder has held its special voting
shares for more than one year. It is also possible that
a U.S. holder would not be allowed to recognize a
loss upon the redemption of its special voting shares
and instead a U.S. holder should increase the basis
in its Ferrari common shares by an amount equal
to the basis in its special voting shares. Such basis
increase in a U.S. holder’s Ferrari common shares
would decrease the gain, or increase the loss, that
a U.S. holder would recognize upon the sale or other
taxable disposition of its Ferrari common shares.
THE U.S. FEDERAL INCOME TAX TREATMENT OF
THE LOYALTY VOTING PROGRAM IS UNCLEAR AND
U.S. HOLDERS ARE URGED TO CONSULT THEIR TAX
ADVISORS IN RESPECT OF THE CONSEQUENCES OF
ACQUIRING, OWNING, AND DISPOSING OF SPECIAL
VOTING SHARES.
PFIC CONSIDERATIONS
Ferrari believes that shares of its stock are not con-
sidered stock of a PFIC for U.S. federal income tax
purposes, but this conclusion must be factually de-
termined annually, and thus is subject to change. The
PFIC regime of taxation is onerous and complex and
can be mitigated through certain through U.S. tax
elections. However, because of the administrative
burdens involved, Ferrari does not intend to provide
information to its holders that would be required to
make such election(s) effective (i.e., a PFIC “Annual
Information Statement”).
Because the determination of whether a foreign
corporation is a PFIC is primarily factual and there is
little administrative or judicial authority on which to
rely to decide, the IRS might not agree that Ferrari
is not a PFIC. Moreover, no assurance can be given
that Ferrari would not become a PFIC for any future
taxable year if there were to be changes in Ferrari’s
assets, income or operations.
Ferrari would be a PFIC with respect to a U.S.
holder if for any taxable year in which the U.S. holder
held shares of Ferrari stock, after the application of
applicable “look-through rules”:
• 75 percent or more of Ferrari’s gross income for
the taxable year consists of “passive income” (in-
cluding 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 (including cash).
As discussed in greater detail below, if shares of
Ferrari stock were to be treated as stock of a PFIC,
gain realized (subject to the discussion below regard-
ing a mark-to-market election) on the sale or other dis-
position of shares of Ferrari stock would generally be
treated as ordinary gain. Further, a U.S. holder would
be treated as if such U.S. holder had realized such gain
and certain “excess distributions” ratably over the U.S.
holder’s holding period for its shares of Ferrari stock,
and such gain would be taxed at the highest tax rate in
effect for each such year to which the gain was allo-
cated along with an interest charge in respect of the
tax attributable to each such year. With certain excep-
tions, a U.S. holder’s shares of Ferrari stock would be
treated as stock in a PFIC if Ferrari were a PFIC at any
time during such U.S. holder’s holding period in the
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
446
shares. Dividends received from Ferrari would not
be eligible for the preferential tax rates applicable to
qualified dividend income if Ferrari were treated as
a PFIC in the taxable years in which the dividends are
paid or in the preceding taxable year (regardless of
whether the U.S. holder held shares of Ferrari stock in
such year). Instead, such dividends would be taxable
at rates applicable to ordinary income.
If Ferrari were to be treated as a PFIC for any tax-
able year included in whole or in part in a U.S. hold-
er’s holding period of Ferrari and such U.S. holder is
treated as owning shares of Ferrari stock for pur-
poses of the PFIC rules (and regardless of whether
Ferrari remains a PFIC for subsequent taxable years),
the U.S. holder would be liable to pay U.S. federal
income tax at the highest applicable income tax rates
on (a) ordinary income upon the receipt of excess dis-
tributions (the portion of any distributions received by
the U.S. holder on shares of Ferrari stock in a taxable
year in excess of 125 percent of the average annual
distributions received by the U.S. holder in the three
preceding taxable years or, if shorter, the U.S. hold-
er’s holding period for the Ferrari common shares)
and (b) on any gain from the disposition of shares of
Ferrari stock, plus interest on such amounts, as if such
excess distributions or gain had been recognized
ratably over the U.S. holder’s holding period of the
shares of Ferrari stock. Further, such U.S. holder may
be required to annually file Form 8621 with the IRS
reporting information concerning such PFIC shares.
If Ferrari were to be treated as a PFIC for any tax-
able year and if Ferrari common shares are treated
as “marketable stock” within the meaning of applica-
ble Treasury Regulations (which Ferrari believes will
be the case), a U.S. holder may make a “mark-to-mar-
ket” election with respect to such U.S. holder’s com-
mon shares. Under a mark-to-market election, any
excess of the fair market value of the Ferrari com-
mon shares at the close of any taxable year over the
U.S. holder’s adjusted tax basis in the Ferrari common
shares (i.e., the tax basis in the shares at the beginning
of the year) is included in the U.S. holder’s income as
ordinary income. These amounts of ordinary income
would not be eligible for the favorable tax rates appli-
cable to qualified dividend income or long-term cap-
ital gains. With respect to losses, the excess, if any,
of the U.S. holder’s adjusted tax basis at the close
of any taxable year over the fair market value of the
Ferrari common shares is deductible in an amount
equal to the lesser of the amount of the excess or the
amount of the net mark-to-market gains that the U.S.
holder included in income in prior years. Such loss
would also be treated as ordinary. A U.S. holder’s tax
basis in Ferrari common shares would be adjusted
to reflect any such income or loss. Finally, any gain
realized on the sale, exchange or other disposition of
Ferrari common shares would be treated as ordinary
income, and any loss realized on the sale, exchange or
other disposition of Ferrari common shares would be
treated as ordinary loss to the extent that such loss
does not exceed the net mark-to-market gains previ-
ously included by the U.S. holder.
The adverse consequences of owning stock in a
PFIC could also be mitigated if a U.S. holder makes
a valid “qualified electing fund” election (“QEF elec-
tion”), which, among other things, would require
a U.S. holder to include currently in income its pro
rata share of the PFIC’s net capital gain and ordinary
earnings, based on earnings and profits as deter-
mined for U.S. federal income tax purposes. Because
of the administrative burdens involved, Ferrari does
not intend to provide information to its holders that
would be required to make such election effective
(i.e., a PFIC “Annual Information Statement”).
A U.S. holder that holds shares of Ferrari stock
during a period when Ferrari is a PFIC will be sub-
ject to the foregoing rules for that taxable year and
all subsequent taxable years with respect to that U.S.
holder’s holding of Ferrari common shares, even if
Ferrari ceases to be a PFIC. U.S. holders are strongly
urged to consult their tax advisors regarding the
PFIC rules, and the potential tax consequences to
them if Ferrari were determined to be a PFIC.
MATERIAL NETHERLANDS
TAX CONSEQUENCES
This section solely addresses the principal Dutch tax
consequences of the acquisition, ownership and dis-
posal of Ferrari common shares and, if applicable,
Ferrari special voting shares by non-resident holders
of such shares (as defined below). It does not purport
to describe every aspect of Dutch taxation that may
be relevant to a particular holder of Ferrari common
shares and, if applicable, Ferrari special voting shares.
Tax matters are complex, and the tax consequences
to a particular holder of Ferrari common shares and,
if applicable, Ferrari special voting shares will depend
in part on such holder’s circumstances. Shareholders
and any potential investor should consult their own
tax advisors regarding the Dutch tax consequences
of acquiring, owning and disposing of Ferrari com-
mon shares and, if applicable, Ferrari special voting
shares in their particular circumstances.
Where in this section English terms and expres-
sions are used to refer to Dutch concepts, the mean-
ing to be attributed to such terms and expressions
shall be the meaning to be attributed to the equiva-
lent Dutch concepts under Dutch tax law. Where in
this section the terms “the Netherlands” and “Dutch”
are used, these refer solely to the European part of
the Kingdom of the Netherlands.
This section assumes that the board shall con-
trol the conduct of the affairs of Ferrari and shall
procure that Ferrari is organized such and that
its business will be conducted such that Ferrari
should be treated as solely resident of Italy for the
application of the tax treaty as concluded between
Italy and the Netherlands. A change in facts and cir-
cumstances based upon which Ferrari is no longer
considered to be solely resident of Italy for the appli-
cation of the mentioned treaty may invalidate the
contents of this section, which will not be updated to
reflect any such change.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
447
This section is based on the tax law of the Netherlands
(unpublished case law not included) as it stands at
the date of this Form. The tax law upon which this
description is based is subject to changes, possibly
with retroactive effect. Any such changes may inval-
idate the contents of this description, which will not
be updated to reflect such changes.
SCOPE OF THE SUMMARY.
The summary of Dutch taxes set out in this section
“Material Dutch tax consequences” only applies to
a holder of Ferrari common shares and, if applica-
ble Ferrari special voting shares who is a non-res-
ident holder of such shares. For the purpose of
this summary a holder of Ferrari common shares
and, if applicable Ferrari special voting shares is a
non-resident holder of such shares if such holder is
neither a resident nor deemed to be resident in The
Netherlands for purposes of Dutch income tax or
corporation tax as the case may be.
This Dutch taxation section does not address
the Dutch tax consequences for a holder of Ferrari
common shares and, if applicable, Ferrari special
voting shares who:
• is a person who may be deemed an owner
of Ferrari common shares and, if applicable,
Ferrari special voting shares for Dutch tax pur-
poses pursuant to specific statutory attribution
rules in Dutch tax law;
• owns Ferrari common shares and, if applicable,
Ferrari special voting shares in connection with
a membership of a management board or a su-
pervisory board, an employment relationship, a
deemed employment relationship or manage-
ment role; or
• is for Dutch tax purposes taxable as a corporate
entity and resident of Aruba, Curaçao or Sint
Maarten.
TAXES ON INCOME
AND CAPITAL GAINS
NON-RESIDENT HOLDERS OF FERRARI
COMMON SHARES AND, IF APPLICABLE,
FERRARI SPECIAL VOTING SHARES
Individuals
If a non-resident holder of Ferrari common shares
and, if applicable, Ferrari special voting shares is
an individual, he will not be subject to Dutch income
tax in respect of any benefits derived or deemed to
be derived from or in connection with Ferrari com-
mon shares and, if applicable, Ferrari special voting
shares, except if:
• he derives profits from an enterprise, whether
as an entrepreneur or pursuant to a co-entitle-
ment to the net value of such enterprise, other
than as a shareholder, and such enterprise is
carried on, in whole or in part, through a perma-
nent establishment or a permanent representa-
tive in the Netherlands, and his Ferrari common
shares and, if applicable, Ferrari special voting
shares are attributable to such permanent es-
tablishment or permanent representative;
• he derives benefits or is deemed to derive bene-
fits from or in connection with Ferrari common
shares and, if applicable, Ferrari special voting
shares that are taxable as benefits from miscella-
neous activities performed in the Netherlands; or
• he derives profits pursuant to the entitlement
to a share in the profits of an enterprise, other
than as a holder of securities, which is effectively
managed in the Netherlands and to which enter-
prise his Ferrari common shares and, if applica-
ble, Ferrari special voting shares are attributable.
Corporate entities
If a non-resident holder of Ferrari common shares
and, if applicable, Ferrari special voting shares is a
corporate entity, or an entity including an associa-
tion, a partnership and a mutual fund, taxable as a
corporate entity, it will not be subject to Dutch cor-
poration tax in respect of any benefits derived or
deemed to be derived from or in connection with
Ferrari common shares and, if applicable, Ferrari
special voting shares, except if:
• it derives profits from an enterprise directly
which is carried on, in whole or in part, through
a permanent establishment or a permanent
representative in the Netherlands, and to which
permanent establishment or permanent repre-
sentative its Ferrari common shares and, if ap-
plicable, Ferrari special voting shares are attrib-
utable; or
• it derives profits pursuant to a co-entitlement to
the net value of an enterprise which is managed
in the Netherlands, other than as a holder of se-
curities, and to which enterprise its Ferrari com-
mon shares and, if applicable, Ferrari special
voting shares are attributable.
General
A non-resident holder of Ferrari common shares
and, if applicable, Ferrari special voting shares will
for Dutch tax purposes not carry on or be deemed
to carry on an enterprise, in whole or in part, through
a permanent establishment or a permanent repre-
sentative in the Netherlands by reason only of the ex-
ecution and/or enforcement of the documents re-
lating to the issue of Ferrari common shares and, if
applicable, Ferrari special voting shares or the per-
formance by Ferrari of its obligations under such
documents or under the Ferrari common shares
and, if applicable, Ferrari special voting shares.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
448
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
449
DIVIDEND WITHHOLDING TAX
Ferrari is generally required to withhold Dutch div-
idend withholding tax at a rate of 15 percent from
dividends distributed by it. As an exception to this
rule, Ferrari may not be required to withhold Dutch
dividend withholding tax from non-Resident holders
of shares (as defined above) if it is considered to be
a tax resident of both the Netherlands and Italy, in
accordance with the domestic tax residency provi-
sions applied by each of these jurisdictions, while the
double tax treaty between the Netherlands and Italy
attributes the tax residency exclusively to Italy.
GIFT AND INHERITANCE TAXES
No Dutch gift tax or Dutch inheritance tax will arise
with respect to an acquisition or deemed acquisi-
tion of Ferrari common shares and, if applicable,
Ferrari special voting shares by way of gift by, or
upon the death of, a holder of Ferrari common
shares and, if applicable, Ferrari special voting
shares who is neither resident nor deemed to be
resident in the Netherlands for purposes of Dutch
gift tax or Dutch inheritance tax except if, in the
event of a gift whilst not being a resident nor be-
ing a deemed resident in the Netherlands for pur-
poses of Dutch gift tax or Dutch inheritance tax, the
holder of Ferrari common shares and, if applicable,
Ferrari special voting shares becomes a resident
or a deemed resident in the Netherlands and dies
within 180 days after the date of the gift.
For purposes of Dutch gift tax and Dutch inher-
itance tax, a gift of Ferrari common shares and,
if applicable, Ferrari special voting shares made
under a condition precedent is deemed to be made
at the time the condition precedent is satisfied.
VALUE ADDED TAX
No Dutch value added tax will arise in respect of any
payment in consideration for the issue of Ferrari
common shares and, if applicable, Ferrari special
voting shares.
REGISTRATION TAXES AND DUTIES
No Dutch registration tax, transfer tax, stamp duty
or any other similar documentary tax or duty, oth-
er than court fees, is payable in the Netherlands
in respect of or in connection with the execution
and/or enforcement (including by legal proceed-
ings and including the enforcement of any foreign
judgment in the courts of the Netherlands) of the
documents relating to the issue of Ferrari com-
mon shares and, if applicable, Ferrari special vot-
ing shares, the performance by Ferrari of its obli-
gations under such documents, or the transfer of
Ferrari common shares and, if applicable, Ferrari
special voting shares.
MATERIAL ITALIAN INCOME
TAX CONSEQUENCES
This section describes solely the material Italian tax
consequences of acquiring, holding, and disposing
of Ferrari common shares and, if applicable, Ferrari
special voting shares. It does not consider every
aspect of Italian taxation that may be relevant to a
particular holder of Ferrari common shares and, if
applicable, Ferrari special voting shares in special
circumstances or who is subject to special treatment
under applicable law, and it is not intended to be ap-
plicable in all respects to all classes of investors.
Shareholders and any potential prospective
investors should consult their own tax advisors
regarding the Italian tax consequences of acquiring,
holding, and disposing of Ferrari common shares
and, if applicable, Ferrari special voting shares in their
particular circumstances and should investigate the
nature and the origin of the amounts received as
distributions in connection with the Ferrari common
shares (dividends or reserves).
Where in this section English terms and expres-
sions are used to refer to Italian concepts, the
meaning to be given to these terms and expressions
shall be the meaning to be given to the equivalent
Italian concepts under Italian tax law. This summary
assumes that Ferrari common shares will be listed
on a regulated market. This summary also assumes
that Ferrari is organized, and that the business will
be conducted, in the manner outlined in this report.
A change to the organizational structure or to the
manner in which Ferrari conducts its business may
invalidate the contents of this section, which will not
be updated to reflect any such change.
Law No. 111 of August 9, 2023 delegated the Italian
Government to enact, within the next twenty-four
months, one or more legislative decrees to reform
the Italian tax system (the “Tax Reform”). According to
this Law, the Tax Reform could significantly change
the taxation of financial income and capital gains and
introduce several amendments in the Italian tax sys-
tem at different levels. The precise nature, extent, and
impact of these amendments cannot be quantified or
foreseen with any certainty at this stage. Therefore,
the information provided in this Prospectus may not
reflect the future tax framework.
This summary is based on the tax laws of the
Republic of Italy and case law / practice (unpublished
case law / practice is not included) as it stands at
the date of this summary. The law upon which this
description is based is subject to change, potentially
with retroactive effect. Any such change may invali-
date the contents of this description, which will not be
updated to reflect this change.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
450
DEFINITIONS
In this section, the following terms have the meaning
defined below:
• “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;
• “Finance Act 2017”: Law No. 232 of December 11,
2016;
• “Finance Act 2021”: Law No. 178 of December 30,
2020;
• “Finance Act 2025”: Law No. 207 of December
30, 2024
• “IRES”: Italian corporate income tax;
• “Italian White List”: the list of countries and terri-
tories allowing a satisfactory exchange of infor-
mation with Italy (i) currently included in the Italian
Ministerial Decree of September 4, 1996, as sub-
sequently amended and supplemented, or (ii) once
effective in any other decree or regulation that will
be issued in the future to provide the list of such
countries and territories (and that will replace the
Ministerial Decree of September 4, 1996), includ-
ing any country or territory that will be deemed
listed therein for the purpose of any interim rule;
• “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 regu-
lated markets, either (i) more than two percent
of the overall voting rights exercisable at ordi-
nary shareholders’ meetings or (ii) an interest
in Ferrari’s issued and outstanding capital in ex-
cess of 5 percent; and
• “Transfer of Qualified Holdings”: transfers of
common shares in Ferrari, including rights or se-
curities 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 com-
mon shares may be acquired, the percentage of
voting rights or interest in Ferrari’s capital po-
tentially attributable to the holding of such rights
and securities is taken into account.
TAXATION OF DIVIDENDS
The tax regime summarized in this subsection “Tax-
ation of Dividends” applies only to classes of holders
of Ferrari common shares and, if applicable, Ferrari
special voting shares that are described here below.
Dividends paid by Ferrari are subject to the tax re-
gime generally applicable to dividends paid by com-
panies that are resident for tax purposes in the
Republic of Italy.
The tax regime may vary as follows.
(A)
ITALIAN RESIDENT PERSONS
(i)
Individuals not engaged in business activity
Under Decree No. 600 of September 29, 1973 (“Decree
600”), dividends paid to Italian resident individuals
who hold the Ferrari common shares neither in con-
nection with a business activity nor in the context of
the discretionary investment portfolio regime (“ris-
parmio gestito”) as defined in subparagraph (A)(ii) be-
low are subject to 26 percent tax withheld at source
in Italy. In this case, the holders are not required to re-
port the dividends in their income tax returns.
Subject to certain conditions (including mini-
mum holding period requirement) and limitations,
dividends paid by Ferrari may be exempt from any
income taxation (including from the 26 percent tax
withheld at source) if the common shares do not
represent a Qualified Holding and are included in
a long-term savings account (piano di risparmio a
lungo termine) that meets all the requirements set
forth under Italian tax law.
(ii)
Individuals not engaged in business activity
and holding the Ferrari common shares under
the “risparmio gestito” regime
Dividends paid to Italian resident individuals who do
not hold the Ferrari common shares in connection
with a business activity are not subject to any tax
withheld at source in Italy if (a) the holder has entrust-
ed the management of the shares to an authorized in-
termediary under a discretionary asset management
contract, and (b) the holder has elected for the dis-
cretionary investment portfolio regime (“risparmio
gestito”) under Article 7 of Legislative Decree No. 461
of November 21, 1997 (“Decree 461”). In this case, the
dividends are included in the annual accrued man-
agement result (risultato maturato annuo di gestio-
ne), which is subjected to a 26 percent substitute tax.
(iii)
Sole Proprietors
Dividends paid to Italian resident individuals who
hold the Ferrari common shares in connection with a
business activity (“Sole Proprietors”) are not subject
to any tax withheld at source in Italy, provided that, in
this case, the holders declare at the time of receipt
that the profits collected are from holdings connect-
ed with their business activity. In this case, dividends
must be reported in the income tax return, but only
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
451
58.14 percent of such dividends are included in the
holder’s overall business income taxable in Italy.
(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 busi-
ness entities referred to in Article 73(1)(a)-(b) CITA
No Italian tax is withheld at source on dividends paid to
Italian business partnerships (such as Italian “società
in nome collettivo”, “società in accomandita semplice”
and similar partnerships as referred to in Article 5
CITA). Only 58.14 percent of such dividends are includ-
ed in the overall business income to be reported by
the partnership if the partnership is a business part-
nership. If the partnership is instead a non-business
partnership (“società semplice” and similar partner-
ships as referred to in Article 5 CITA), based on Article
32-quater of Law Decree No. 124 of October 26, 2019,
as subsequently amended and supplemented, divi-
dends are deemed to be received on a tax transpar-
ency basis by the partners and are subject to tax un-
der the tax regime applicable to the relevant partner
(i.e., as if they were directly paid to each partner).
No Italian tax is withheld at source on dividends
paid to Italian resident companies and other Italian
resident business entities as referred to in Article
73(1)(a)-(b) CITA, including, among others, corpora-
tions (“società per azioni”), partnerships limited by
shares (“società in accomandita per azioni”), limited
liability companies (“società a responsabilità limitata”)
and public and private entities whose sole or pri-
mary purpose is to carry out business activities. Only
5 percent of the dividends are included in the overall
business income subject to IRES, unless the com-
mon shares in Ferrari are financial assets held for
trading by holders that apply IAS / IFRS Accounting
Standards under Regulation No. 1606/2002 of the
European Parliament and Council of July 19, 2002.
In this latter case, the full amount of the dividends is
included in the holder’s overall business income sub-
ject to IRES. IRES is currently levied at 24 percent, but
a higher rate may apply for companies operating in
specific sectors (chief among them is the 27.5 per-
cent IRES rate for banks and other regulated finan-
cial intermediaries) or meeting certain conditions.
For some types of companies and under certain
conditions, dividends are also partially included in
the net value of production, which is subject to the
regional tax on productive activities (“IRAP”).
(v)
Non-business entities referred
to in Article 73(1)(c) CITA
No Italian tax is withheld at source on dividends paid
to Italian resident non-business entities referred
to in Article 73(1)(c) CITA (including Italian resident
trusts that do not carry out a business activity), ex-
cept for Italian undertakings for collective invest-
ment (“OICR”). The dividends are fully included in the
holder’s overall income subject to IRES (only 77.74
percent of the dividend would instead be included in
the holder’s overall income if it were paid out of prof-
its formed until the fiscal year that was current on
December 31, 2016). For social security entities pur-
suant to Legislative Decree No. 509 of June 30, 1994
and Legislative Decree No. 103 of February 10, 1996,
subject to certain conditions (including minimum
holding period requirement) and limitations, divi-
dends and other income from the common shares
that do not represent a Qualified Holding may be ex-
cluded from the taxable base if the social security
entity earmarks the common shares as eligible in-
vestment under Article 1(89) of Finance Act 2017 (as
subsequently amended) to the extent, however, that
investment in the common shares (and other qual-
ifying shares or units in undertakings for collective
investment investing mainly in qualifying shares) rep-
resent no more than 10 percent of the gross asset
value of the social security entity of the previous year.
According to Article 1(44 - 46) of Finance Act
2021, 50 percent of the dividends paid to non-busi-
ness entities referred to in Article 73(1)(c) CITA will
be excluded from their IRES taxable base provided
that they: (i) exclusively or mainly carry out any of the
qualifying non-profit activities listed in Article 1(45)
of Finance Act 2021 and (ii) earmark the related tax
savings to a non-distributable reserve and use these
resources to finance these non-profit activities.
(vi)
Persons exempt from IRES and persons
outside the scope of IRES
Dividends paid to Italian resident persons that are
exempt from IRES are generally subject to 26 per-
cent tax withheld at source.
No Italian tax is instead withheld at source on div-
idends paid to persons that are outside the scope of
IRES (“esclusi”) under Article 74(1) CITA.
(vii)
Pension funds and OICR
(other than Real Estate AIF)
No Italian tax is withheld at source on dividends paid
to (a) Italian pension funds governed by Legislative
Decree No. 252 of December 5, 2005 (“Decree 252”)
and (b) Italian OICR, other than real estate investment
funds and Italian real estate SICAFs (real estate alter-
native investment funds, “Real Estate AIF”).
Dividends received by Italian pension funds are
taken into account to compute the pension fund’s
net annual accrued yield, which is subject to a 20
percent flat tax (imposta sostitutiva). Subject to cer-
tain conditions (including minimum holding period
requirement) and limitations, dividends and other
income from the common shares may be excluded
from the taxable base of the 20 percent flat tax if the
pension fund earmarks the common shares as eli-
gible investment under Article 1(89)-(92) of Finance
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
452
Act 2017 (as subsequently amended) to the extent,
however, that investment in the common shares
(and other qualifying shares or units in undertakings
for collective investment investing mainly in quali-
fying shares) represent no more than 10 percent
of the gross asset value of the pension fund of the
previous year.
Dividends received by OICR that are set up in,
and organized under the laws of, Italy and that are
subject to regulatory supervision (other than Real
Estate AIF) are not subject to taxation at the level of
the OICR.
(viii)
Real Estate AIF
No Italian tax is withheld at source on dividends paid
to Italian Real Estate AIF. Moreover, dividends are
not subject to either IRES or IRAP at the level of the
Real Estate AIF. However, income realized by Italian
Real Estate AIF is attributed pro rata to Italian resi-
dent unitholders / shareholders, irrespective of any
actual distribution, on a tax transparency basis if the
Italian resident unitholders / shareholders are not
institutional investors and hold units / shares in the
Real Estate AIF representing more than 5 percent of
the Real Estate AIF’s net asset value.
(B)
NON-ITALIAN RESIDENT PERSONS
(i)
Non-resident persons holding
the common shares in Ferrari through
a permanent establishment in Italy
No Italian tax is withheld at source on dividends
paid to non-resident persons that hold the common
shares in Ferrari through a permanent establish-
ment in Italy to which the common shares in Ferrari
are effectively connected. Only 5 percent of the div-
idends are included in the overall income subject to
IRES, unless the common shares in Ferrari are finan-
cial assets held for trading by holders that apply IAS
Accounting Standards / IFRS Accounting Standards
under Regulation No. 1606/2002 of the European
Parliament and the Council of July 19, 2002. In this lat-
ter case, the full amount of the dividends is included
in the overall business income subject to IRES. IRES is
currently levied at 24 percent, but a higher rate may
apply for companies operating in specific sectors
(chief among them is the 27.5 percent IRES rate for
banks and other regulated financial intermediaries)
or meeting certain conditions. If the common shares
are held by a non-resident Sole Proprietor through a
permanent establishment in Italy to which the com-
mon shares are effectively connected, only 58.14
percent of the dividends is included in the overall in-
come subject to personal income tax.
For some types of businesses and under certain
conditions, dividends are also partially included in
the net value of production, which is subject to IRAP.
If dividends are paid with respect to common shares
in Ferrari that are not connected with a permanent
establishment in Italy of a non-resident person,
please see subparagraph (B)(ii) below.
(ii)
Non-resident persons that do not hold
the common shares in Ferrari through
a permanent establishment in Italy
A 26 percent tax withheld at source generally applies
on dividends paid to non-resident persons that do not
have a permanent establishment in Italy to which the
common shares in Ferrari are effectively connected.
Subject to a specific application that must be
submitted to the Italian tax authorities under the
terms and conditions provided by law, non-res-
ident holders are entitled to relief (in the form of a
refund), which cannot be greater than 11/26 (eleven
twenty-sixths) of the tax levied in Italy, if they can
demonstrate that they have paid final tax abroad on
the same profits. Holders who may be eligible for the
relief should consult with their own independent tax
advisors to determine whether they are eligible for,
and how to obtain, the tax refund.
As an alternative to the relief described above,
persons resident in countries that have a double
tax treaty in force with Italy may request that the
tax withheld at source on dividends be levied at
the (reduced) rate provided under the applicable
tax treaty, provided that the non-resident person
promptly submits proper documentation (including
tax resident certificates released or stamped by the
foreign tax authority).
The domestic withholding tax rate on dividends
is 1.2 percent (and not 26 percent) if the recipients
and beneficial owners of the dividends on Ferrari
common shares are companies or entities that are
(a) resident for tax purposes in an EU Member State
or in an EEA State that is included in the Italian White
List and (b) subject to corporate income tax in such
State. These companies and entities are not entitled
to the 11/26 relief described above.
The domestic withholding tax rate on dividends
is 11 percent (and not 26 percent) if the recipients
and beneficial owners of the dividends on Ferrari
common shares are pension funds that are set up in
an EU Member States or an EEA State included in the
Italian White List. These pension funds are not enti-
tled to the 11/26 relief described above. Moreover,
Article 1(95) of Finance Act 2017 provides for an
exemption from withholding taxation on dividends
if a pension fund set up in an EU Member State or
an EEA State holds shares in an Italian resident cor-
poration (such as Ferrari) for at least 5 years and
only to the extent of dividends from investments
in qualifying shares (or units in undertakings for
collective investment investing mainly in qualifying
shares) that represent no more than 10 percent of
the gross asset value of the pension fund of the pre-
vious year. To benefit from this exemption, the EU
(or “white listed” EEA) pension fund that is the ben-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
453
eficial owner of the dividends must submit an affida-
vit to the withholding agent whereby it declares that
it meets the conditions for the exemption and that it
undertakes to hold the shares for the required hold-
ing period. Other documentary obligations apply to
such EU (or “white listed” EEA) pension funds to bene-
fit from this exemption.
Under Article 27(3) of Decree 600, no Italian tax
is withheld at source on dividends paid to (i) foreign
undertakings for collective investment that comply
with Directive 2009/65/EC, or (ii) foreign undertak-
ings for collective investment that do not fall within the
scope of Directive 2009/65/EC but whose asset man-
ager is subject to regulatory supervision according
to Directive 2011/61/EU, provided that in both case (i)
and (ii) the foreign undertaking for collective invest-
ment is organized under the laws of an EU Member
State or an EEA State that is included in the White List.
Under
Article
27-bis
of
Decree
600,
which
implemented in Italy the Directive 435/90/EEC of
July 23, 1990, then recast in EU Directive 2011/96 of
November 30, 2011 (the “Parent Subsidiary Directive”),
a company is entitled to a full refund of the tax with-
held at source on the dividends if it (a) has one of the
legal forms provided for in the appendix to the Parent
Subsidiary Directive, (b) is resident for tax purposes
in an EU Member State without being considered to
be resident outside the EU according to a double tax
treaty signed with a non-EU country, (c) is subject in
the country of residence to one of the taxes indicated
in the appendix to the Parent Subsidiary Directive with
no possibility of benefiting from optional or exemption
regimes that have no territorial or time limitations, and
(d) directly holds common shares in Ferrari that rep-
resent an interest in the issued and outstanding capi-
tal of Ferrari of no less than 10 percent for an uninter-
rupted period of at least one year. If these conditions
are met, and as an alternative to submitting a refund
request after the dividend distribution, the non-resi-
dent company may request that no tax be levied at the
time the dividends are paid, provided that (x) the 1-year
holding period under condition (d) above has already
run and (y) the non-resident company promptly sub-
mits proper documentation. The withholding exemp-
tion under Article 27-bis of Decree 600 may be denied
by the Italian tax authorities in abusive situations pur-
suant to the Italian statutory general anti-abuse rule
(Article 10-bis of Law No. 212 of July 27, 2000).
Under the Agreement between the European
Community and the Swiss Confederation providing
for measures equivalent to those laid down in Council
Directive 2003/48/EC on taxation of savings income
in the form of interest payments, the withholding tax
refund / exemption regime described above also
applies to dividends paid to a company that (a) is resi-
dent for tax purposes in Switzerland without being con-
sidered to be resident outside Switzerland according to
a double tax treaty signed with a non-EU country, (b) is
a limited company, (c) is subject to Swiss corporate tax
without being exempted or benefiting from preferen-
tial tax regimes, and (d) directly holds common shares
in Ferrari that represent an interest in Ferrari’s issued
and outstanding capital of no less than 25 percent for
an uninterrupted period of at least two years.
Dividends distributed to international entities or
bodies that benefit from exemption from taxation in
Italy pursuant to international rules or treaties entered
into force in Italy will not be subject to withholding tax.
(iii)
U.S. holders (without permanent establishment in
Italy) of Ferrari common shares and, if applicable,
Ferrari special voting shares
If Ferrari is considered to be a tax resident of both Italy
and the Netherlands, in accordance with the domes-
tic tax residency provisions applied by each of these
jurisdictions, while the double tax treaty between Italy
and the Netherlands attributes the tax residency ex-
clusively to Italy, Ferrari will be required to apply Italian
dividend withholding tax on dividends distributed to
U.S. holders of Ferrari common shares and, if appli-
cable, Ferrari special voting shares. However, certain
U.S. holders of Ferrari common shares and, if applica-
ble, Ferrari special voting shares may qualify for full or
partial relief from the Italian dividend withholding tax
under the Convention between the Government of the
United States of America and the Government of the
Italian Republic for the avoidance of double taxation
with respect to taxes on income and the prevention of
fraud or fiscal evasion signed in Washington, D.C. on
August 25, 1999 (the “Italy-U.S. Treaty”). On the basis
of Article 10 of the Italy-U.S. Treaty, qualifying U.S. indi-
viduals are entitled to a reduced Italian dividend with-
holding tax rate (i.e., 15 percent) and qualifying U.S.
companies are entitled, under certain conditions, to a
reduced Italian dividend withholding tax rate (either 5
percent or 15 percent depending on the circumstanc-
es). On the basis of Article 10(8) of the Italy-U.S. Treaty,
qualified U.S. governmental entities are entitled, under
certain conditions, to a full exemption from Italian div-
idend withholding tax.
TAXATION OF DISTRIBUTIONS
OF EQUITY RESERVES
The tax regime summarized in this subsection
“Taxation of distributions of Equity Reserves” applies
only to classes of holders of Ferrari common shares
and, if applicable, Ferrari special voting shares that
are described here below.
The information provided in this subsection sum-
marizes the Italian tax regime applicable to the distri-
butions by Ferrari - other than in case of reduction of
excess capital, withdrawal, exclusion, redemption or
liquidation - of equity reserves as referred to under
Article 47(5) CITA, such as, for instance, reserves or
other funds formed with share premiums, equaliz-
ing interests (interessi di conguaglio) paid in by the
subscribers, equity (other than share capital) contri-
butions (versamenti a fondo perduto) or share capi-
tal account payments (versamenti in conto capitale)
made by shareholders and tax-exempt revaluation
reserves (the “Equity Reserves”).
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
454
(A)
ITALIAN RESIDENT PERSONS
(i)
Individuals not engaged in business activity
Regardless of what holders have resolved upon in the
shareholders’ meeting, the amounts received as dis-
tribution out of Equity Reserves of Ferrari by Italian
resident individuals who do not hold the Ferrari com-
mon shares in connection with a business activity are
deemed to be, and treated as, profits for the recipi-
ents to the extent that Ferrari has current year prof-
its or retained profits (except for any portion thereof
earmarked to a tax-deferred reserve or non-distrib-
utable reserves). Amounts treated as profits are
subject to the same tax regime described above for
dividends. Amounts received as distributions out of
Equity Reserves, net of any amount already treated
as profits as per the above, reduce the holder’s tax
basis in Ferrari common shares correspondingly.
Distributions out of Equity Reserves that are in excess
of the holders’ tax basis in the Ferrari common shares
are treated as dividends for tax purposes. Special
rules may apply if the individual holders have elected
with regard to the common shares in Ferrari into the
discretionary investment portfolio regime (regime
del risparmio gestito) described in subparagraph (A)
(i) of the subsection “Taxation of Capital Gains” below.
(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
Regardless of what holders have resolved upon in the
shareholders’ meeting, the amounts received as dis-
tribution out of Equity Reserves of Ferrari by Italian
Sole Proprietors, Italian business partnerships (Italian
“società in nome collettivo”, “società in accomandita
semplice” and similar Italian partnerships as referred
to in Article 5 CITA), and Italian resident companies
and other business entities referred to in Article
73(1)(a)-(b) CITA are deemed to be, and are treated
as, profits for the recipients to the extent that Ferrari
has current year profits or retained profits (except
for any portion thereof earmarked to a tax-deferred
reserve or non-distributable reserves). Amounts
treated as profits should be subject to the same tax
regime described above for dividends. Amounts re-
ceived as distributions out of Equity Reserves, net
of any amount already treated as profits as per the
above, reduce the holder’s tax basis in the Ferrari
common shares correspondingly. Distributions out
of Equity Reserves that are in excess of the holders’
tax basis in the common shares in Ferrari are treated
as capital gains for tax purposes and should be sub-
ject to the same regime described in the subsection
“Taxation of Capital Gains” below.
(iii)
Non-business entities referred to in
Article 73(1)(c) CITA and non-business partnerships
referred to in Article 5 CITA
Amounts received by Italian resident non-business
entities referred to in Article 73(1)(c) CITA as distri-
butions out of Equity Reserves, net of any amount al-
ready treated as profits as per the rules described
in subparagraph (A)(i) above that apply here as well,
reduce the holder’s tax basis in the Ferrari common
shares correspondingly. Distributions out of Equity
Reserves that are in excess of the holders’ tax basis in
the common shares in Ferrari not held in connection
with a business activity are treated as dividends for
tax purposes. For a short description of a favorable
regime available to certain social security entities,
see subparagraph (A)(v) of the subsection “Taxation
of Dividends” above.
In case of amounts received by Italian non-busi-
ness partnerships referred to in Article 5 CITA, the
tax regime depends on the specific circumstances of
the case. Shareholders and any potential prospective
investors that are Italian non-business partnerships
should consult their own tax advisors in this respect.
(iv)
Persons exempt from IRES
Amounts received by Italian resident persons exempt
from IRES as distributions out of Equity Reserves, net
of any amount already treated as profits as per the
rules described in subparagraph (A)(i) above that apply
here as well, reduce the holder’s tax basis in the Ferrari
common shares correspondingly. Distributions out
of Equity Reserves that are in excess of the holders’
tax basis in the common shares in Ferrari not held in
connection with a business activity are treated as divi-
dends for tax purposes.
(v)
Pension funds and OICR (
other than Real Estate AIF)
Amounts received by Italian pension funds governed
by Article 17 of Decree 252 as distributions out of
Equity Reserves should be taken into account to com-
pute the pension fund’s net annual accrued yield,
which is subject to a 20 percent flat tax (imposta sos-
titutiva). The value of the common shares in Ferrari at
the end of the same tax year should also be included
in the net annual accrued yield. For a short descrip-
tion of a favorable regime available to pension funds,
see subparagraph (A)(vii) of the subsection “Taxation
of Dividends” above.
Conversely, any amounts received by OICR that
are set up in, and organized under the laws of, Italy and
that are subject to regulatory supervision (other than
Real Estate AIF) as distributions out of Equity Reserves
are not subject to taxation at the level of the OICR.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
455
(vi)
Real Estate AIF
Amounts received by Italian Real Estate AIF as dis-
tributions out of Equity Reserves are not subject
to IRES or IRAP at the level of the Real Estate AIF.
However, income realized by Italian Real Estate AIF
is attributed pro rata to the Italian resident unithold-
ers / shareholders, irrespective of any actual distri-
bution, on a tax transparency basis if the Italian resi-
dent unitholders / shareholders are not institutional
investors and hold units / shares in the Real Estate
AIF representing more than 5 percent of the Real
Estate AIF’s net asset value.
(B)
NON-ITALIAN RESIDENT PERSONS
(i)
Non-resident persons that do not hold
the common shares in Ferrari through
a permanent establishment in Italy
For non-Italian resident persons (whether individu-
als or corporations) without a permanent establish-
ment in Italy to which the common shares in Ferrari
are effectively connected, the amounts received as
distributions out of Equity Reserves are subject to the
same tax regime as applicable to Italian resident indi-
viduals not engaged in business activity described in
paragraph A(i) of this subsection “Taxation of distri-
butions of Equity Reserves”. Therefore, the amounts
received as distributions out of Equity Reserves, net
of any amount that has already been treated as prof-
its as per the rules described in subparagraph (A)
(i) above, reduce the holder’s tax basis in the Ferrari
common shares correspondingly. Distributions out
of Equity Reserves that are in excess of the holders’
tax basis in the common shares in Ferrari are treat-
ed as dividends for tax purposes.
(ii)
Non-resident persons holding
the common shares in Ferrari through
a permanent establishment in Italy
For non-Italian resident persons that hold the com-
mon shares in Ferrari through a permanent estab-
lishment in Italy to which the Ferrari common shares
are effectively connected, the amounts received as
distributions out of Equity Reserves are subject to
the same tax regime as applicable to Italian resident
companies and other business entities referred to
in Article 73(1)(a)-(b) CITA as described in subpara-
graph (A)(ii) above. If the Equity Reserves distribu-
tion relates to common shares in Ferrari that are not
connected to a permanent establishment in Italy of
the non-resident recipient, reference must be made
to subparagraph (B)(i) above.
TAXATION OF CAPITAL GAINS
The tax regime summarized in this subsection
“Taxation of Capital Gains” applies only to classes of
holders of Ferrari common shares and, if applica-
ble, Ferrari special voting shares that are described
here below.
(A)
ITALIAN RESIDENT PERSONS
(i)
Italian resident individuals not
engaged in business activity
Capital gains realized by Italian resident individu-
als upon transfer for consideration of the common
shares (as well as of securities or rights whereby
common shares may be acquired), other than capital
gains realized in connection with a business activity,
are subject to a 26 percent substitute tax (“CGT”).
The taxpayer may opt for any of the following three
tax regimes:
• Tax return regime (regime della dichiarazione).
Under this regime, capital gains and capital loss-
es realized during the tax year must be report-
ed 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 real-
ized in any of the four following tax years. 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.
• Non-discretionary investment portfolio regime
(risparmio amministrato) (optional). Under this re-
gime, 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 cus-
tody with Italian banks, broker-dealers (società di
intermediazione mobiliare) or certain authorized
financial intermediaries; and (y) an express elec-
tion for the non-discretionary investment portfo-
lio regime being made in writing in due time by the
relevant holder. Under this regime, the financial in-
termediary 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 interme-
diary’s mandate), net of any relevant capital loss-
es. Capital losses may be carried forward and off-
set against capital gains realized within the same
relationship of deposit in the same tax year or in
the following tax years up to the fourth. Under this
regime, the holder is not required to report capi-
tal gains in the annual income tax return.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
456
• Discretionary investment portfolio regime (ris-
parmio gestito) (optional). This regime is allowed
for holders who have entrusted the manage-
ment of their financial assets, including the
Ferrari common shares, to an authorized inter-
mediary and have elected in writing into this re-
gime. 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 re-
alized) 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. Under this
regime, the holder is not required to report capi-
tal gains in the annual income tax return.
Subject to certain conditions (including minimum
holding period requirement) and limitations, capital
gains on the common shares in Ferrari may be ex-
empt from any income taxation (including from the
26 percent CGT) if the common shares in Ferrari do
not represent a Qualified Holding and are included
in a long-term savings account (piano di risparmio
a lungo termine) that meets all the requirements set
forth under Italian tax law.
Under Article 5 of Law No. 448 of December 28,
2001 (as amended by Finance Act 2025), for CGT
purposes only, Italian individuals may increase the
tax basis of the shares in Ferrari held on January
1, 2025 up to their fair market value by paying a 18
percent substitute tax on such fair market value
by November 30, 2025 (either in full or the first of
three instalments). For these purposes, the fair mar-
ket value is the simple average trading price of the
Ferrari shares in December 2024.
(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)
Capital gains realized by Italian Sole Proprietors and
Italian business partnerships (Italian “società in nome
collettivo”, “società in accomandita semplice” and
similar Italian partnerships as referred to in Article 5
CITA) upon transfer for consideration of the common
shares in Ferrari must be fully included in the overall
business income and reported in the annual income
tax return. Capital losses (or other negative items of
income) derived by this class of holders upon trans-
fer for consideration of the common shares in Ferrari
would be fully deductible from the holder’s income.
However, if the conditions under a. and b. of sub-
paragraph (A)(iii) below are met, only 49.72 percent
(58.14 percent in case of Sole Proprietors) of the
capital gain should be included in the overall busi-
ness income (based on a different interpretation, a
58.14 percent inclusion of the capital gains that meet
the abovementioned conditions should apply also
to business partnerships). Capital losses realized on
common shares in Ferrari that meet the conditions
under a. and b. of subparagraph (A)(iii) below are only
partially deductible (similarly to what is provided for
the taxation of capital gains).
For the purpose of determining capital gains and
capital losses, the holder’s tax basis in the Ferrari
common shares is reduced by any write-down that
the holder has deducted in previous tax years.
(iii)
Companies and other business entities
referred to in Article 73(1)(a)-(b) CITA
Capital gains realized by Italian resident companies
and other business entities as referred to in Article
73(1)(a)-(b) CITA (including partnerships limited by
shares and public and private entities whose sole
or primary purpose is carrying out business activi-
ty) upon transfer for consideration of the common
shares in Ferrari must be fully included in the over-
all taxable business income subject to IRES in the tax
year in which the capital gains are realized or, upon
election, may be spread in equal installments over
a maximum of five tax years (including the tax year
when the capital gain is realized). The election for the
installment computation is only available if the com-
mon shares in Ferrari have been held for no less
than three years and booked as non-current finan-
cial assets (immobilizzazioni finanziarie) in the last
three financial statements.
However, under Article 87 CITA (participation
exemption), capital gains realized upon transfer of
common shares in Ferrari are 95 percent exempt if
both the following requirements are met:
• The common shares in Ferrari have been unin-
terruptedly 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
• The common shares in Ferrari have been booked
as non-current financial assets in the first finan-
cial statements closed during the holding period.
In case of holders that draft their financial state-
ments according to IAS Accounting Standards /
IFRS Accounting Standards, the common shares
in Ferrari are deemed as non-current financial
assets if they are not accounted as financial as-
sets held for trading.
The Italian law lays down certain additional condi-
tions for the exemption to be available. Based on the
assumption that Ferrari is a holding company, that
its shares are listed on a regulated market, and that
pursuant to Article 87(5) CITA its assets are predom-
inantly composed of shareholdings in companies
which satisfy the additional conditions set forth by
Article 87 CITA in order to enjoy the participation ex-
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
457
emption regime (i.e., the companies are not resident
in a State with a preferential tax system pursuant to
Article 47-bis CITA and carry on a business activity),
these additional conditions should be met.
The transfer of shares booked as fixed finan-
cial assets and shares booked as inventory must be
considered separately with reference to each class.
If the requirements for the participation exemption
are met, any capital loss realized on the common
shares in Ferrari cannot be deducted.
For the purpose of determining capital gains and
capital losses, the holder’s tax basis in the Ferrari
common shares is reduced by any write-down that
the holder has deducted in previous tax years.
Capital losses (as well as negative differences
between revenues and costs) relating to shares that
do not meet the participation exemption require-
ments are not relevant (and cannot be deducted) to
the extent of the non-taxable amount of dividends
(or advance dividend) received by the holder in the
36 (thirty-six) months prior to the transfer (dividend
washing rule). This anti-avoidance rule applies to
shares acquired in the 36-month period preceding
the realization of the capital loss (or the negative dif-
ference), provided that requirements under Article
87(1)(c)-(d) CITA (i.e., the company is not resident in
a State with a preferential tax system pursuant to
Article 47-bis CITA and carries on a business activity)
are met. The anti-avoidance rule does not apply to
holders that draft their financial statements accord-
ing to IAS Accounting Standards / IFRS Accounting
Standards under Regulation (EC) No. 1606/2002 of
the European Parliament and the Council of July 19,
2002. When the amount of the aforesaid capital losses
(and negative differences) deriving from a transac-
tion (or a series of transactions) on shares traded on
regulated markets is greater than €50,000.00, the
taxpayer must, under certain circumstances report
the data and the information regarding the transac-
tion to the Italian tax authorities.
Moreover, in case of capital losses greater than
€5,000,000.00 deriving from the transfer (or a
series of transfers) of shares booked as non-current
financial assets, the holder must report the data and
the information to the Italian tax authorities. Holders
that draft their financial statements according to IAS
Accounting Standards / IFRS Accounting Standards
are under no such obligation.
For some types of companies and under cer-
tain conditions, capital gains on common shares in
Ferrari are also included in the net value of produc-
tion that is subject to IRAP.
(iv)
Non-business entities referred to in Article 73(1)(c)
CITA and non-business partnerships (società
semplici) referred to in Article 5 CITA
Capital gains realized, outside the scope of a busi-
ness activity, by Italian resident non-business en-
tities referred to in Article 73(1)(c) CITA (other than
OICR) and Italian non-business partnerships as re-
ferred to in Article 5 CITA are subject to tax under
the same rules as provided for capital gains realized
by Italian resident individuals who do not hold the
Ferrari common shares in connection with a busi-
ness activity. For a short description of a favorable
regime available to certain social security entities
(see subparagraph (A)(v) of the subsection “Taxation
of Dividends” above).
Italian resident non-business entities referred
to in Article 73(1)(c) CITA (holding the Ferrari shares
outside the scope of a business activity) and Italian
non-business partnerships as referred to in Article
5 CITA may also elect for the temporary tax basis
step-up regime enacted by Article 5 of Law No. 448
of December 28, 2001 (as amended by Finance Act
2025) in relation to Ferrari shares held on January
1, 2025 (see subparagraph (A)(i) of this subsection
“Taxation of Capital Gains” above).
(v)
Pension funds and OICR
(other than Real Estate AIF)
Capital gains on common shares in Ferrari held by
Italian pension funds governed by Decree 252 must
be taken into account to compute the pension fund’s
net annual accrued yield, which is subject to a 20
percent flat tax (imposta sostitutiva). For a short de-
scription of a favorable regime available to pension
funds, see subparagraph (A)(vii) of the subsection
“Taxation of Dividends” above.
Capital gains on common shares in Ferrari held
by OICRs that are set up in, and organized under
the laws of, Italy and that are subject to regulatory
supervision (other than Real Estate AIF) are not sub-
ject to tax at the level of the OICR.
(vi)
Real Estate AIF
Capital gains on common shares in Ferrari held by
Italian Real Estate AIF are not subject to IRES or IRAP
at the level of the Real Estate AIF.
(B)
NON-ITALIAN RESIDENT PERSONS
(i)
Non-resident persons holding
the common shares in Ferrari through
a permanent establishment in Italy
If non-Italian resident persons hold the common
shares in Ferrari through a permanent establish-
ment in Italy to which the common shares in Ferrari
are effectively connected, capital gains realized upon
disposal of the common shares in Ferrari must be in-
cluded in the permanent establishment’s income tax-
able in Italy according to the tax regime as provided
for the capital gains realized by Italian resident com-
panies and other business entities as referred to in
Article 73(1)(a)-(b) CITA, which is summarized under
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
458
subparagraph (A)(iii) above. If the common shares in
Ferrari are not connected to a permanent establish-
ment in Italy of the non-resident person, reference
must be made to subparagraph (B)(ii) below.
If the common shares are held by a non-resident
Sole Proprietor through a permanent establishment
in Italy to which the common shares are effectively
connected, capital gains realized upon disposal of
the common shares must be included in the perma-
nent establishment’s income taxable in Italy accord-
ing to the tax regime as provided for the capital
gains realized by Italian Sole Proprietors, which is
summarized under subparagraph (A)(ii) above.
(ii)
Non-resident persons that do not hold
the common shares in Ferrari through
a permanent establishment in Italy
NON-QUALIFIED HOLDINGS. Based on the fact that
Ferrari common shares are listed on a regulated mar-
ket, no tax applies in Italy on capital gains realized by
non-Italian resident holders without a permanent es-
tablishment in Italy upon transfer for consideration
of common shares in Ferrari that do not qualify as
Transfers of Qualified Holdings, even if the Ferrari
common shares are held in Italy and regardless of the
provisions set forth in any applicable double tax treaty.
In such case, in order to benefit from this exemption,
non-Italian resident holders who hold the Ferrari com-
mon shares with an Italian authorized financial inter-
mediary and either are subject to the nondiscretion-
ary investment portfolio regime or have elected for
the discretionary investment portfolio regime may
be required to timely submit to the Italian authorized
financial intermediary an affidavit whereby they state
that they are not resident in Italy for tax purposes.
QUALIFIED HOLDINGS. Capital gains realized by
non-Italian resident holders without a permanent
establishment in Italy upon Transfers of Qualified
Holdings are subject to tax under the rules as pro-
vided for capital gains realized by Italian resident indi-
viduals who do not hold the Ferrari common shares in
connection with a business activity. However, under
Article 1(633) of Finance Act 2021, no tax applies in
Italy on capital gains realized by (i) foreign under-
takings for collective investment that comply with
Directive 2009/65/EC, or (ii) foreign undertakings for
collective investment that do not fall within the scope
of Directive 2009/65/EC but whose asset manager
is subject to regulatory supervision according to
Directive 2011/61/EU, provided that in both case (i)
and (ii) the foreign undertaking for collective invest-
ment is organized under the laws of an EU Member
State or an EEA State that is included in the White
List. In any case, the provisions of double tax treaties
entered into by Italy may apply if more favorable;
(a) under Article 68(2-bis) CITA, capital gains realized
on the common shares in Ferrari by companies or
entities that are resident for tax purposes in an EU
Member State or in an EEA State that is included in
the Italian White List are 95 percent exempt pro-
vided that the conditions under a. and b. of sub-
paragraph (A)(iii) above are met whereas capital
losses can be used to offset 5 percent of the cap-
ital gains realized in any of the four following tax
years to the extent that the capital loss is reported
in the tax return of the year in which is realized.
(b) Non-resident persons that do not hold the com-
mon shares in Ferrari through a permanent es-
tablishment in Italy and that may be exposed to
Italian source taxation on capital gains may also
consider electing for the temporary tax basis step-
up regime enacted by Article 5 of Law No. 448 of
December 28, 2001 (as amended by Finance Act
2025) in relation to Ferrari shares held on January
1, 2025 (see subparagraph (A)(i) of this subsection
“Taxation of Capital Gains” above. Non-resident
persons that can benefit from Article 68(2-bis)
CITA cannot elect for this step-up regime.
SPECIAL VOTING SHARES
No statutory, judicial or administrative authority
directly discusses how the receipt, ownership or
disposal of special voting shares should be treated
for Italian income tax purposes and as a result, the
Italian tax consequences are uncertain. Accordingly,
we urge Ferrari shareholders to consult their tax
advisors as to the tax consequences of the receipt,
ownership and disposal of special voting shares.
Receipt of special voting shares
A shareholder that receives special voting shares
issued by Ferrari should in principle not recognize
any taxable income upon the receipt of special vot-
ing shares. Under a possible interpretation, the issue
of special voting shares can be treated as the issue
of bonus shares free of charge to the shareholders
out of existing available reserves of Ferrari. Such is-
sue should not have any material effect on the allo-
cation of the tax basis of a shareholder between its
Ferrari common shares and its Ferrari special vot-
ing shares. Because the special voting shares are
not transferable and their limited economic rights
can be enjoyed only at the time of the liquidation of
Ferrari, we believe and intend to take the position
that the fair market value of each special voting
share is minimal. However, because the determi-
nation of the fair market value of the special voting
shares is not governed by any guidance that directly
addresses such a situation and is unclear, the Italian
tax authorities could assert that the value of the spe-
cial voting shares as determined by us is incorrect.
Ownership of special voting shares
Shareholders of special voting shares should not
have to recognize income in respect of any amount
transferred to the special voting shares dividend re-
serve, but not paid out as dividends, in respect of the
special voting shares.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
459
Disposition of special voting shares
The tax treatment of a Ferrari shareholder that has
its special voting shares redeemed for no consid-
eration after removing its shares from the Loyalty
Register is unclear. It is possible that a shareholder
should recognize a loss to the extent of the share-
holder’s tax basis (if any). The deductibility of such
loss depends on individual circumstances and con-
ditions generally required by Italian law. It is also pos-
sible that a Ferrari shareholder would not be allowed
to recognize a loss upon the redemption of its spe-
cial voting shares and instead should increase its ba-
sis in its Ferrari common shares by an amount equal
to the tax basis (if any) in its special voting shares.
Transfer tax
Contracts or other legal instruments relating to the
transfer of securities (including the transfer of the
Ferrari common shares) are subject to registration
tax as follows: (i) notary deeds (atti pubblici) and pri-
vate deeds with notarized signatures (scritture pri-
vate authenticate) executed in Italy must mandato-
rily be registered with the Italian tax authorities and
are subject to €200.00 registration tax; and (ii) pri-
vate deeds (scritture private) are subject to €200.00
registration tax only if they are voluntary filed for
registration with the Italian tax authorities or if the
so-called “caso d’uso” or “enunciazione” occurs.
FINANCIAL TRANSACTION TAX
Transfer of Ownership of the Shares
Article 1(491-500) of Law No. 228 of December 24,
2012 introduced a financial transaction tax (“FTT”)
applicable, among others, to the transfers of the
ownership of (i) shares issued by Italian resident
corporations, (ii) participating financial instruments
(as defined under Article 2346(6) of the Italian Civil
Code) issued by Italian resident corporations, and
(iii) securities representing equity investments in
Italian resident corporations such as American
Depositary Receipts and Global Depositary Receipts,
regardless of the place of residence of the issuer of
such securities and of the place where the contract
has been concluded.
The residence of the issuer for the purposes of
FTT is the place where the issuer has its registered
office (intended as its corporate seat).
Since the corporate seat of Ferrari is not in Italy,
transfers of ownership of the shares in Ferrari will
not be subject to FTT.
High-frequency trading
Transactions carried out on the Italian financial mar-
kets and concerning the Ferrari shares may in lim-
ited circumstances be subject to a tax on high-fre-
quency trading. Potential prospective investors
engaged in high-frequency trading should there-
fore consult their own tax advisors regarding the
Italian tax consequences of high-frequency trading
on the Ferrari shares.
TRANSFER OF THE FERRARI SHARES
UPON DEATH OR BY GIFT
Subject to certain exceptions, Italian inheritance
and gift tax is generally payable on transfers of as-
sets and rights (including the common shares and
the special voting shares in Ferrari) (i) by reason of
death or gift by Italian resident persons (or other
transfers for no consideration and the creation of
liens on such assets for a specific purpose), even
if the transferred assets are held outside Italy, and
(ii) by reason of death or gift by non-Italian resident
persons, but limited to transferred assets held in
Italy. Shares in corporations that are resident in Italy
for tax purposes (because they have their corporate
address or their place of effective management or
their main business purpose in Italy for the greater
part of the tax year) are deemed to be held in Italy.
Subject to certain exceptions, transfers of assets
and rights (including the common shares and the spe-
cial voting shares in Ferrari) on death or by gift are
generally subject to inheritance and gift tax as follows:
• 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.
• At a rate of 6 percent in case of transfers made
to relatives up to the fourth degree or rela-
tives-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, exceed-
ing, for each beneficiary, €100,000.00).
• At a rate of 8 percent in any other case.
If the transfer is made in favor of persons with se-
vere disabilities, the tax applies on the value exceed-
ing €1,500,000.00 at the rates illustrated above, de-
pending on the type of relationship existing between
the deceased or donor and the beneficiary.
Assets and rights (i) segregated in a trust, or (ii)
allocated to special funds by entering into a fiduciary
contract, or (iii) encumbered by special purpose
liens under Article 2645-ter of the Italian Civil Code, in
favor of persons with severe disabilities are exempt
from the Italian inheritance and gift tax, provided that
all the conditions set out in Article 6 of Law No. 112
of June 22, 2016 are met. The exemption from Italian
inheritance and gift tax also applies to the re-trans-
fer of assets and rights if the death of the beneficiary
occurs before the death of the settlor.
No inheritance tax applies if the common shares
in Ferrari are included in a long-term savings account
(piano di risparmio a lungo termine) that meets all the
requirements set forth by the Italian tax law.
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
460
STAMP DUTY
Under Article 13(2bis-2ter) of Decree No. 642 of
October 26, 1972, a 0.20 percent stamp duty general-
ly applies on communications and reports that Italian
financial intermediaries periodically send to their cli-
ents in relation to the financial products that are de-
posited with such intermediaries. Shares are includ-
ed in the definition of financial products for these
purposes. Communications and reports are deemed
to be sent at least once a year even if the Italian finan-
cial intermediary is under no obligation to either draft
or send such communications and reports.
The stamp duty cannot exceed €14,000.00 per
year for investors other than individuals.
Based on the wording of the law and the implement-
ing decree issued by the Italian Ministry of Finance
on May 24, 2012, the 0.20 percent stamp duty does
not apply to communications and reports that the
Italian financial intermediaries send to investors
who do not qualify as “clients” according to the reg-
ulations issued by the Bank of Italy. Communications
and reports sent to this type of investors are subject
to the ordinary €2.00 stamp duty for each copy.
The taxable base of the stamp duty is the market
value or - in the lack thereof - the nominal value or
the redemption amount of any financial product.
WEALTH TAX ON FINANCIAL
PRODUCTS HELD ABROAD
Under Article 19 of Decree No. 201 of December 6,
2011, individuals, non-business entities and non-busi-
ness partnerships resident for tax purposes in Italy,
which hold certain financial products outside of
Italian territory (including shares) are required to
pay a wealth tax at the rate of 0.20 percent (the rate
is 0.40 percent if the financial products are held in
one of the States or territories included in the Italian
Ministerial Decree May 4, 1999).
The wealth tax applies on the market value at the
end of the relevant year or - in the lack thereof - on
the nominal value or the redemption value of such
financial products held outside of Italian territory.
The wealth tax cannot exceed €14,000 per year for
investors other than individuals.
Taxpayers may deduct from the Italian wealth
tax a tax credit equal to any wealth tax paid in the
country where the financial products are held (up to
the amount of the Italian wealth tax due).
CERTAIN REPORTING OBLIGATIONS FOR
ITALIAN RESIDENT HOLDERS
Under Law Decree No. 167 of June 28, 1990,
individuals, non-business entities and non-business
partnerships that are resident in Italy for tax pur-
poses and, during the fiscal year, hold financial assets
abroad (including possibly the common shares and
the special voting shares in Ferrari) must, in certain
circumstances, disclose these financial assets to
the Italian tax authorities in their income tax return
(or if the income tax return is not due, in a proper
form that must be filed within the same term as pre-
scribed for the annual income tax return), regard-
less of the value of such assets (save for deposits
or bank accounts having an aggregate value not
exceeding €15,000.00 throughout the year). The
requirement applies also if the persons above, being
not the direct holder of the financial assets, are the
beneficial owners thereof for the purposes of anti-
money laundering legislation.
No disclosure requirements exist for financial
assets (including the common shares and the spe-
cial voting shares in Ferrari) under management or
administration entrusted to Italian resident interme-
diaries (Italian banks, broker-dealers (SIM), fiduciary
companies or other professional intermediaries as
indicated under Article 1 of Law Decree No. 167 of
June 28, 1990) and for contracts concluded through
their intervention, provided that the cash flows and
the income derived from such assets and contracts
have been subjected to Italian withholding tax or
substitute tax by such intermediaries.
INDEPENDENT AUDITOR’S REPORT
To: The Shareholders and Audit Committee
of Ferrari N.V.
REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS 2024 INCLUDED
IN THE ANNUAL REPORT
OUR OPINION
We have audited the financial statements 2024 of
Ferrari N.V., based in Amsterdam.
In our opinion, the accompanying financial state-
ments give a true and fair view of the financial posi-
tion of Ferrari N.V. as at 31 December 2024, and of
its result and its cash flows for 2024 in accordance
with International Financial Reporting Standards as
adopted by the European Union (EU-IFRS) and with
Part 9 of Book 2 of the Dutch Civil Code.
The financial statements comprise:
The consolidated and company statement of
financial position as at 31 December 2024.
The following statements for 2024: the consoli-
dated and company income statement, the consol-
idated and company statements of comprehensive
income, changes in equity and cash flows.
The notes comprising material accounting pol-
icy information and other explanatory information.
BASIS FOR OUR OPINION
We conducted our audit in accordance with Dutch
law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further
described in the 'Our responsibilities for the audit of
the financial statements' section of our report.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
461
We are independent of Ferrari N.V. in accordance
with the EU Regulation on specific requirements
regarding statutory audit of public-interest enti-
ties, the Wet toezicht accountantsorganisaties
(Wta, Audit firms supervision act), the Verordening
inzake de onafhankelijkheid van accountants bij
assurance-opdrachten (ViO, Code of Ethics for
Professional Accountants, a regulation with respect
to independence) and other relevant independence
regulations in the Netherlands. Furthermore, we
have complied with the Verordening gedrags- en
beroepsregels accountants (VGBA, Dutch Code of
Ethics for Professional Accountants).
We believe the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
INFORMATION IN SUPPORT OF OUR OPINION
We designed our audit procedures in the context of
our audit of the financial statements as a whole and
in forming our opinion thereon. The following infor-
mation in support of our opinion was addressed in
this context, and we do not provide a separate opin-
ion or conclusion on these matters.
MATERIALITY
Based on our professional judgment we deter-
mined the materiality for the financial statements
as a whole at € 94 million. The materiality is based
on Profit Before Tax. We have also taken into ac-
count misstatements and/or possible misstate-
ments that in our opinion are material for the users
of the financial statements for qualitative reasons.
We agreed with the audit committee that mis-
statements in excess of € 4.7 million, which are iden-
tified during the audit, would be reported to them, as
well as smaller misstatements that in our view must
be reported on qualitative grounds.
SCOPE OF THE GROUP AUDIT
Ferrari N.V. is at the head of a group of components.
The financial information of this group is included in
the financial statements of Ferrari N.V..
Based on our risk assessment, we determined
the nature, timing and extent of audit procedures
to be performed, including determining the compo-
nents at which to perform audit procedures.
Our group audit mainly focused on significant
group entities. Our assessment of entities that are
significant to the group was done as part of our
audit planning and was aimed to obtain sufficient
coverage of the risks of a material misstatement for
the significant account balances, classes of trans-
actions and disclosures that we have identified. In
addition, we considered qualitative factors as part
of our assessment.
For
the
selected
component
audit
teams,
the group audit team provided detailed written
instructions, which, in addition to communicat-
ing our requirements of component audit teams.
Furthermore, we developed a plan for overseeing
component audit teams based on its relative signif-
icance and specific risk characteristics. Our over-
sight procedures included a combination of live and
virtual meetings with the component auditor, includ-
ing working paper reviews. We also reviewed com-
ponent audit team deliverables to gain a sufficient
understanding of the work performed based on our
instructions.
By performing the procedures mentioned above
at components, together with additional procedures
at group level, we have been able to obtain sufficient
and appropriate audit evidence about the group's
financial information to provide an opinion on the
financial statements.
AUDIT APPROACH FRAUD RISKS
We identified and assessed the risks of material mis-
statements of the financial statements due to fraud.
During our audit we obtained an understanding of
the entity and its environment and the components
of the system of internal control, including the risk
assessment process and management's process for
responding to the risks of fraud and monitoring the
system of internal control and how the supervisory
board exercise oversight, as well as the outcomes.
We evaluated the design and relevant aspects of
the system of internal control and in particular the
fraud risk assessment. We evaluated the design and
the implementation and, where considered appro-
priate, tested the operating effectiveness, of internal
controls designed to mitigate fraud risks.
As part of our process of identifying fraud
risks, we evaluated fraud risk factors with respect
to financial reporting fraud, misappropriation of
assets and bribery and corruption in close co-op-
eration with our forensic specialists. We evaluated
whether these factors indicate that a risk of material
misstatement due to fraud is present.
Following these procedures, and the presumed
risks under the prevailing auditing standards, we
considered the fraud risks in relation to manage-
ment override of controls, which may represent a
risk of material misstatement due to fraud. Our audit
procedures to respond to these fraud risks include,
amongst others, detailed testing of journal entries
and top-side adjustments based on supporting doc-
umentation. We have used data-analytics to perform
a selection of journal entries based on risk-based
characteristics to address the identified fraud risk.
Additionally, we performed, amongst others the
following procedures:
• We incorporated elements of unpredictability
in our audit. We also considered the outcome
of our other audit procedures and evaluated
whether any findings were indicative of fraud or
non-compliance.
• We considered available information and made
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
462
enquiries of relevant personal, including (non-)
executive directors, lower management, ac-
counting personnel, general counsel, director of
internal audit, compliance and corporate affairs
officer and others.
• We tested the appropriateness of journal entries
recorded in the general ledger and other adjust-
ments made in the preparation of the financial
statements.
• We evaluated whether the selection and applica-
tion of accounting policies by the entity, particu-
larly those related to subjective measurements
and complex transactions, may be indicative of
fraudulent financial reporting.
• We evaluated whether the judgments and de-
cisions made by management in making the ac-
counting estimates included in the financial state-
ments indicate a possible bias that may represent
a risk of material misstatement due to fraud.
Management insights, estimates and assump-
tions that might have a major impact on the finan-
cial statements. We performed a retrospective
review of management judgments and assump-
tions related to significant accounting estimates
reflected in prior year financial statements.
• For significant transactions we evaluated wheth-
er the business rationale of the transactions
suggests that they may have been entered into
to engage in fraudulent financial reporting or to
conceal misappropriation of assets.
• We have involved forensic specialists, who as-
sisted us in the procedures explained above.
This did not lead to indications for fraud potentially
resulting in material misstatements.
AUDIT APPROACH COMPLIANCE WITH
LAWS AND REGULATIONS
We assessed the laws and regulations relevant to
the entity through discussion with amongst others,
management, group legal counsel, internal audit and
those charged with governance, reading minutes
and reports of internal audit.
We involved our forensic specialists in this eval-
uation. Please refer to our audit approach on fraud
risks for more information about this evaluation.
As a result of our risk assessment procedures,
and while realizing that the effects from non-com-
pliance could considerably vary, we considered
the following laws and regulations: (corporate)
tax law, the requirements under the International
Financial Reporting Standards as adopted by the
European Union (EU-IFRS) and Part 9 of Book 2 of
the Dutch Civil Code with a direct effect on the
financial statements as an integrated part of our
audit procedures, to the extent material for the
financial statements.
We obtained sufficient appropriate audit evi-
dence regarding provisions of those laws and reg-
ulations generally recognized to have a direct effect
on the financial statements.
Apart from these, the entity is subject to other laws
and regulations where the consequences of non-
compliance could have a material effect on amounts
and/or disclosures in the financial statements, for in-
stance, through imposing fines or litigation.
Given the nature of the entity's business and
the complexity of these other laws and regulations,
there is a risk of non-compliance with the require-
ments of such laws and regulations.
Our procedures are more limited with respect to
these laws and regulations that do not have a direct
effect on the determination of the amounts and dis-
closures in the financial statements. Compliance
with these laws and regulations may be fundamen-
tal to the operating aspects of the business, to the
entity's ability to continue its business, or to avoid
material penalties (e.g., compliance with the terms of
operating licenses and permits or compliance with
environmental regulations) and therefore non-com-
pliance with such laws and regulations may have
a material effect on the financial statements. Our
responsibility is limited to undertaking specified
audit procedures to help identify non-compliance
with those laws and regulations that may have a
material effect on the financial statements. Our pro-
cedures are limited to (i) inquiry of management,
those charged with governance, the executive
board and others within the entity as to whether
the entity is in compliance with such laws and reg-
ulations and (ii) inspecting correspondence, if any,
with the relevant licensing or regulatory authorities
to help identify non-compliance with those laws and
regulations that may have a material effect on the
financial statements.
Naturally, we remained alert to indications of
(suspected) non-compliance throughout the audit.
Finally, we obtained written representations
that all known instances of (suspected) fraud or
non-compliance with laws and regulations have
been disclosed to us.
AUDIT APPROACH GOING CONCERN
Our responsibilities, as well as the responsibilities
of the board of directors, related to going concern
under the prevailing standards are outlined in the
“Description of responsibilities regarding the fi-
nancial statements” section below. In fulfilling our
responsibilities, we performed procedures includ-
ing evaluating management’s assessment of the
Company’s ability to continue as a going concern
and considering the impact of financial, operational,
and other conditions. Based on these procedures,
we did not identify any reportable findings related
to the entity’s ability to continue as a going concern.
OUR KEY AUDIT MATTERS
Key audit matters are those matters that, in our pro-
fessional judgment, were of most significance in our
audit of the financial statements. We have commu-
nicated the key audit matters to those charged with
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
463
governance. The key audit matters are not a com-
prehensive reflection of all matters discussed.
INTANGIBLE ASSETS – DEVELOPMENT COSTS
— REFER TO NOTES 2 AND 14 TO THE FINANCIAL
STATEMENTS
DESCRIPTION
The financial statements as of December 31, 2024,
include Intangible assets – development costs
(“Development costs”) with a net carrying amount of
Euro 1,502.9 million.
Development costs for car production and
related components, engines and systems, are rec-
ognized as an asset if the conditions under IAS 38 -
Intangible Assets are met, including, among others:
(i) development costs can be measured reliably, (ii)
the technical feasibility of the product, estimated
volumes and expected pricing all support the view
that the development expenditure will generate
future economic benefits, and (iii) the company has
the intention to complete the development and the
ability to use the intangible asset. All other research
and development costs are expensed as incurred.
We identified Development costs as a critical
audit matter because of the significant estimates and
judgements management makes when determining
if a project has met the IAS 38 conditions related
to assessing the technical feasibility of the project,
including the intention to complete the development
and the ability to use the intangible asset, and the
realization of an expected future economic benefit.
This required a high degree of auditor judgment and
an increased extent of effort when performing audit
procedures to evaluate the reasonableness of man-
agement’s assessment of the classification of capi-
talization or expense of Development costs.
HOW THE KEY AUDIT MATTER WAS
ADDRESSED IN THE AUDIT
Our
audit
procedures
related
to
manage-
ment’s judgments regarding the capitalization or
expense of Development costs included the follow-
ing, among others:
• We evaluated management’s policies and pro-
cedures for identifying the Development costs
to be capitalized and the criteria used for capital-
ization including the consistency to those adopt-
ed in previous years.
• We tested the effectiveness of controls over the
capitalized Development costs process, includ-
ing those related to the verification of capitaliza-
tion requirements, product initiatives approval
and spending allocation, and costs monitoring.
• We obtained and analyzed the details of the cap-
italized Development costs by project, on a sam-
ple basis, for the 2024 additions and reclassifi-
cations from costs in progress to additions that
occurred in the year. For additions, we verified
that capitalized projects met IAS 38 criteria for
capitalization and remained commercially via-
ble, through:
• Analysis of project details including evidence
of external costs and internal costs.
• Testing
supporting
evidence
including
invoices and time sheets for the Development
costs capitalized.
• In addition, for the selected new capitalized
projects we performed specific inquiry with
management and inspected supporting docu-
mentation to assess the nature of the project.
• We verified to the supporting evidence that re-
classifications from development costs in prog-
ress to development costs amortized were ap-
propriate.
• We evaluated, on a sample basis, the reason-
ableness of management’s estimates, including
management’s basis and approach for consid-
ering the impacts of changes in the regulatory
environment, by:
• Inquiring
of
the
Company's
executives
to
understand
the
business
initiatives
supporting the assumptions related to tested
development projects.
• Comparing
Group’s
forecast
revenue,
EBITDA, Operating Profit (EBIT) and Industrial
Free Cash flow to actual results to evaluate
management’s ability to accurately forecast
the future values.
• Evaluating historical trends in revenue and
the associated costs of production and
Development costs amortization.
• We verified, on a sample basis, that the costs
recorded
as
research
expensed
through
profit and loss were not eligible for capitaliza-
tion, and therefore not included in capitalized
Development costs.
OBSERVATIONS
The scope and nature of the procedures performed
were appropriate and sufficient to address the key
audit matter. Our procedures did not result in any re-
portable matters.
REPORT ON THE OTHER INFORMATION
INCLUDED IN THE ANNUAL REPORT
The annual report contains other information, in ad-
dition to the financial statements and our auditor's
report thereon.
The other information consists of:
• Board Report.
• The other information as required by Part 9 of
Book 2 of the Dutch Civil Code.
• Other Information Included in the Annual Report
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
464
Based on the following procedures performed, we
conclude that the other information:
• Is consistent with the financial statements and
does not contain material misstatements.
• Contains all the information regarding the man-
agement report and the other information as re-
quired by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our
knowledge and understanding obtained through
our audit of the financial statements or otherwise,
we have considered whether the other information
contains material misstatements.
By performing these procedures, we comply
with the requirements of Part 9 of Book 2 of the
Dutch Civil Code and the Dutch Standard 720. The
scope of the procedures performed is substantially
less than the scope of those performed in our audit
of the financial statements.
Management is responsible for the prepara-
tion of the other information, including the Board of
Directors Report in accordance with Part 9 of Book
2 of the Dutch Civil Code
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS AND ESEF
NO PROHIBITED NON-AUDIT SERVICES
We have not provided prohibited non-audit services
as referred to in Article 5(1) of the EU Regulation on
specific requirements regarding statutory audit of
public-interest entities.
EUROPEAN SINGLE
ELECTRONIC FORMAT(ESEF)
Ferrari N.V. has prepared its annual report in
ESEF. The requirements for this are set out in the
Delegated Regulation (EU) 2019/815 with regard to
regulatory technical standards on the specification
of a single electronic reporting format (hereinafter:
the RTS on ESEF).
In our opinion, the annual report, prepared in
XHTML format, including the (partly) marked-up
consolidated financial statements, as included in
the reporting package by Ferrari N.V. complies in all
material respects with the RTS on ESEF.
Management is responsible for preparing the
annual report including the financial statements in
accordance with the RTS on ESEF, whereby man-
agement combines the various components into
one single reporting package.
Our responsibility is to obtain reasonable assur-
ance for our opinion whether the annual report in this
reporting package complies with the RTS on ESEF.
We performed our examination in accordance
with Dutch law, including Dutch Standard 3950N
'Assurance-opdrachten inzake het voldoen aan de cri-
teria voor het opstellen van een digitaal verantwoor-
dingsdocument' (assurance engagements relating to
compliance with criteria for digital reporting).
Our examination included amongst others:
• Obtaining an understanding of the company's fi-
nancial reporting process, including the prepa-
ration of the reporting package.
• Identifying and assessing the risks that the an-
nual report does not comply in all material re-
spects with the RTS on ESEF and designing and
performing further assurance procedures re-
sponsive to those risks to provide a basis for our
opinion, including:
• • obtaining
the
reporting
package
and
performing validations to determine whether
the reporting package containing the Inline
XBRL instance and the XBRL extension
taxonomy
files
has
been
prepared
in
accordance with the technical specifications
as included in the RTS on ESEF;
• examining the information related to the
consolidated financial statements in the
reporting package to determine whether all
required mark-ups have been applied and
whether these are in accordance with the
RTS on ESEF.
DESCRIPTION OF RESPONSIBILITIES REGARDING
THE FINANCIAL STATEMENTS
RESPONSIBILITIES OF THE BOARD FOR THE
FINANCIAL STATEMENTS
The board is responsible for the preparation and
fair presentation of the financial statements in ac-
cordance with EU-IFRS and Part 9 of Book 2 of the
Dutch Civil Code. Furthermore, the board is respon-
sible for such internal control as the board deter-
mines is necessary to enable the preparation of the
financial statements that are free from material mis-
statement, whether due to fraud or error.
As part of the preparation of the financial state-
ments, the board is responsible for assessing the
company's ability to continue as a going concern.
Based on the financial reporting frameworks men-
tioned, the board should prepare the financial state-
ments using the going concern basis of accounting
unless the board either intends to liquidate the com-
pany or to cease operations, or has no realistic alter-
native but to do so.
The board should disclose events and circum-
stances that may cast significant doubt on the com-
pany's ability to continue as a going concern in the
financial statements.
OUR RESPONSIBILITIES FOR THE AUDIT OF THE
FINANCIAL STATEMENTS
Our objective is to plan and perform the audit as-
signment in a manner that allows us to obtain suffi-
cient and appropriate audit evidence for our opinion.
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
465
Our audit has been performed with a high, but not
absolute, level of assurance, which means we may
not detect all material misstatements, whether due
to fraud or error, during our audit.
Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these financial statements. The material-
ity affects the nature, timing and extent of our audit
procedures and the evaluation of the effect of iden-
tified misstatements on our opinion.
We have exercised professional judgment and
have maintained professional scepticism through-
out the audit, in accordance with Dutch Standards
on Auditing, ethical requirements and independence
requirements. Our audit included among others:
• Identifying and assessing the risks of material
misstatement of the financial statements, wheth-
er due to fraud or error, designing and perform-
ing audit procedures responsive to those risks,
and obtaining audit evidence that is sufficient
and appropriate to provide a basis for our opin-
ion. The risk of not detecting a material misstate-
ment resulting from fraud is higher than for one
resulting from error, as fraud may involve col-
lusion, forgery, intentional omissions, misrepre-
sentations, or the override of internal control.
• Obtaining an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the circum-
stances, but not for the purpose of expressing
an opinion on the effectiveness of the company's
internal control.
• Evaluating the appropriateness of account-
ing policies used and the reasonableness of
accounting estimates and related disclosures
made by the board.
• Concluding
on the
appropriateness
of the
board's use of the going concern basis of ac-
counting, and based on the audit evidence ob-
tained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the company's ability to con-
tinue as a going concern. If we conclude that a
material uncertainty exists, we are required to
draw attention in our auditor's report to the re-
lated disclosures in the financial statements or, if
such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's
report. However, future events or conditions
may cause the company to cease to continue as
a going concern.
• Evaluating the overall presentation, structure
and content of the financial statements, includ-
ing the disclosures.
• Evaluating whether the financial statements rep-
resent the underlying transactions and events in
a manner that achieves fair presentation.
We are responsible for planning and performing
the group audit to obtain sufficient appropriate au-
dit evidence regarding the financial information of
the entities or business units within the group as a
basis for forming an opinion on the financial state-
ments. We are also responsible for the direction, su-
pervision and review of the audit work performed
for purposes of the group audit. We bear the full re-
sponsibility for the auditor’s report.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and signifi-
cant audit findings, including any significant findings
in internal control that we identified during our audit.
In this respect we also submit an additional report to
the audit committee in accordance with Article 11 of
the EU Regulation on specific requirements regard-
ing statutory audit of public-interest entities. The
information included in this additional report is con-
sistent with our audit opinion in this auditor's report.
We provide the audit committee with a statement
that we have complied with relevant ethical require-
ments regarding independence, and to communi-
cate with them all relationships and other matters
that may reasonably be thought to bear on our inde-
pendence, and where applicable, related safeguards.
From the matters communicated with the audit
committee, we determine the key audit matters:
those matters that were of most significance in the
audit of the financial statements. We describe these
matters in our auditor's report unless law or regu-
lation precludes public disclosure about the matter
or when, in extremely rare circumstances, not com-
municating the matter is in the public interest.
Amsterdam, February 21, 2025
Deloitte Accountants B.V.
M.R. van Leeuwen
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
466
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
467
LIMITED ASSURANCE-REPORT
OF THE INDEPENDENT AUDITOR ON THE
SUSTAINABILITY STATEMENT
To: The Shareholders and Audit Committee
of Ferrari N.V.
OUR CONCLUSION
We have performed a limited assurance engage-
ment on the (consolidated) sustainability statement
for 2024 of Ferrari N.V. based in Amsterdam (herein-
after: the company) included in the section “sustain-
ability statements” of the accompanying manage-
ment report, including the information incorporated
in the sustainability statement by reference (herein-
after: the sustainability statement).
Based on our procedures performed and the
assurance evidence obtained, nothing has come to
our attention that causes us to believe that the sus-
tainability statement is not, in all material respects:
• Prepared in accordance with the European
Sustainability Reporting Standards (ESRS) as ad-
opted by the European Commission and in accor-
dance with the double materiality assessment
process carried out by the company to identify
the information reported pursuant to the ESRS.
• Compliant with the reporting requirements pro-
vided for in Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation).
BASIS FOR OUR CONCLUSION
We have performed our limited assurance engage-
ment on the sustainability statement in accordance
with Dutch law, including Dutch Standard 3810N,
'Assurance-opdrachten inzake duurzaamheidsver-
slaggeving' (Assurance engagements relating to
sustainability reporting) which is a specified Dutch
standard that is based on the International Standard
on Assurance Engagements (ISAE) 3000 (Revised)
’Assurance engagements other than audits or re-
views of historical financial information’.
Our responsibilities in this regard are further
described in the section ‘Our responsibilities for the
limited assurance engagement on the sustainability
statement’ of our report.
We are independent of Ferrari N.V in accor-
dance with the ‘Verordening inzake de onafhanke-
lijkheid van accountants bij assurance-opdrachten’
(ViO, Code of Ethics for Professional Accountants,
a regulation with respect to independence) and
other relevant independence regulations in the
Netherlands.
Furthermore,
we
have
complied
with the ‘Verordening gedrags- en beroepsre-
gels accountants’ (VGBA, Dutch Code of Ethics for
Professional Accountants).
The ViO and VGBA are at least as demanding
as the International code of ethics for professional
accountants (including International independence
standards) of the International Ethics Standards
Board for Accountants (the IESBA Code).
We believe that the assurance evidence we have ob-
tained is sufficient and appropriate to provide a ba-
sis for our conclusion.
EMPHASIS OF MATTER
Emphasis on the most significant uncertainties
affecting the quantitative metrics
We draw attention to section ‘Basis for preparation’
of the sustainability statements that identifies the
quantitative metrics that are subject to a high level
of measurement uncertainty refer to the relevant
sections within the disclosure where information
about the sources of measurement uncertainty and
the assumptions, approximations and judgements
the company has made in measuring these in com-
pliance with the ESRS.
The comparability of sustainability information
between entities and over time may be affected by
the lack of historical sustainability information in
accordance with the ESRS and by the absence of a
uniform practice on which to draw, to evaluate and
measure this information. This allows for the appli-
cation of different, but acceptable, measurement
techniques, especially in the initial years.
Emphasis on the double materiality
assessment process
We draw attention to section ‘Statement on due dil-
igence’, ‘Interests and views of stakeholders’ and
‘Double Materiality Assessment Methodology’ of the
sustainability statement. This disclosure explains
future improvements in the ongoing due diligence
process and that Ferrari considers double material-
ity assessment as an ongoing process. Due diligence
is an on-going practice that responds to and may
trigger changes in the company’s strategy, busi-
ness model, activities, business relationships, oper-
ating, sourcing and selling contexts. The double ma-
teriality assessment process may also be impacted
in time by sector-specific standards to be adopted
or developments in stakeholder expectations, regu-
latory developments, changes in risk management
or new business developments. The sustainability
statement may not include every impact, risk and
opportunity or additional entity-specific disclosure
that each individual stakeholder (group) may consid-
er important in its own particular assessment.
Our conclusion is not modified in respect of
these matters.
COMPARATIVE INFORMATION NOT SUBJECT
TO ASSURANCE PROCEDURES
No reasonable or limited assurance procedures
have been performed on the sustainability state-
ment of prior year. Consequently, the comparative
information in the sustainability statement and there
to related disclosures for the year ended December
OTHER INFORMATION
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
468
31, 2024. have not been subject to reasonable or lim-
ited assurance procedures.
Our conclusion is not modified in respect of
this matter.
LIMITATIONS TO THE SCOPE
OF OUR ASSURANCE ENGAGEMENT
In reporting forward-looking information in accor-
dance with the ESRS, the Board of Directors of the
company is required to prepare the forward-look-
ing information on the basis of disclosed assump-
tions about events that may occur in the future
and possible future actions by the company. The
actual outcome is likely to be different since antici-
pated events frequently do not occur as expected.
Forward-looking information relates to events and
actions that have not yet occurred and may never
occur. We do not provide assurance on the achiev-
ability of this forward-looking information.
Our conclusion is not modified in respect of
this matter.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
FOR THE SUSTAINABILITY STATEMENT
The Board of Directors are responsible for the
preparation of the sustainability statement in accor-
dance with the ESRS, including the double materiali-
ty assessment process carried out by the company
as the basis for the sustainability statement and dis-
closure of material impacts, risks and opportunities
in accordance with the ESRS. As part of the prepa-
ration of the sustainability statement, the Board of
Directors are responsible for compliance with the
reporting requirements provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation).
Furthermore, the Board of Directors are respon-
sible for such internal control as it determines is nec-
essary to enable the preparation of the sustainability
statement that is free from material misstatement,
whether due to fraud or error.
The Audit Committee responsible for overseeing
the sustainability reporting process and approves
the double materiality assessment process carried
out by the company.
Our responsibilities for the limited assurance
engagement on the sustainability statement
Our responsibility is to plan and perform the lim-
ited assurance engagement in a manner that allows
us to obtain sufficient appropriate assurance evi-
dence for our conclusion.
Our assurance engagement is aimed to obtain
a limited level of assurance that the sustainability
statement is free from material misstatements. The
procedures vary in nature and timing from, and
are less in extent than for a reasonable assurance
engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is sub-
stantially lower than the assurance that would have
been obtained had a reasonable assurance engage-
ment been performed.
We apply the applicable quality management re-
quirements pursuant to the ‘Nadere voorschriften
kwaliteitsmanagement’ (NV KM, regulations for qual-
ity management) and the International Standard
on Quality Management (ISQM) 1 and accordingly
maintain a comprehensive system of quality man-
agement including documented policies and proce-
dures regarding compliance with ethical require-
ments, professional standards and other relevant
legal and regulatory requirements.
Our limited assurance engagement included
among others:
• Performing inquiries and an analysis of the exter-
nal environment and obtaining an understanding
of relevant sustainability themes and issues, the
characteristics of the company, its activities and
the value chain and its key intangible resourc-
es in order to assess the double materiality as-
sessment process carried out by the company
as the basis for the sustainability statement and
disclosure of all material sustainability-related
impacts, risks and opportunities in accordance
with the ESRS.
• Obtaining through inquiries a general under-
standing of the internal control environment,
the company’s processes for gathering and
reporting entity-related and value chain infor-
mation, the information systems and the com-
pany’s risk assessment process relevant to the
preparation of the sustainability statement and
for identifying the company’s activities, deter-
mining eligible and aligned economic activities
and prepare the disclosures provided for in
Article 8 of Regulation (EU) 2020/852 (Taxonomy
Regulation), without obtaining assurance infor-
mation about the implementation, or testing the
operating effectiveness, of controls.
• Assessing the double materiality assessment
process carried out by the company and iden-
tifying and assessing areas of the sustainabili-
ty statement, including the disclosures provid-
ed for in Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation) where misleading or
unbalanced information or material misstate-
ments, whether due to fraud or error, are like-
ly to arise (‘selected disclosures’). We designed
and performed further assurance procedures
aimed at assessing that the sustainability state-
ment is free from material misstatements re-
sponsive to this risk analysis.
• Considering whether the description of the
double materiality assessment process in the
sustainability statement made by the Board of
Directors appears consistent with the process
carried out by the company.
• Performing analytical review procedures on
quantitative information in the sustainability
statement, including consideration of data and
trends in the information submitted for consol-
idation at corporate level.
• Assessing whether the company’s methods for
developing estimates are appropriate and have
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
OTHER INFORMATION
469
been consistently applied for selected disclo-
sures. We considered data and trends; however,
our procedures did not include testing the data
on which the estimates are based or separately
developing our own estimates against which to
evaluate the Board of Director’s estimates.
• Analysing, on a limited sample basis, relevant in-
ternal and external documentation available to
the company (including publicly available infor-
mation or information from actors throughout
its value chain) for selected disclosures.
• Reading the other information in the annual re-
port to identify material inconsistencies, if any,
with the sustainability statement.
• Considering whether:
• the disclosures provided to address the
reporting requirements provided for in Article
8 of Regulation (EU) 2020/852 (Taxonomy
Regulation) for each of the environmental
objectives, reconcile with the underlying
records of the company, are consistent or
coherent with the sustainability statement
and appear reasonable, in particular whether
the eligible economic activities meet the
cumulative conditions to qualify as aligned
and whether the technical screening criteria
are met; and
• the key performance indicators disclosures
have
been
defined
and
calculated
in
accordance with the Taxonomy reference
framework as defined in Appendix 1 Glossary
of Terms of the CEAOB Guidelines on limited
assurance on sustainability reporting adopted
on 30 September 2024 and in compliance
with the reporting requirements provided
for in Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation), including the format
in which the activities are presented.
• Considering the overall presentation, structure
and the fundamental qualitative characteristics
of information (relevance and faithful represen-
tation: complete, neutral and accurate) reported
in the sustainability statement, including the re-
porting requirements provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation).
• Considering, based on our limited assurance
procedures and evaluation of the assurance
evidence obtained, whether the sustainability
statement as a whole is free from material mis-
statements and prepared in accordance with
the ESRS.
Amsterdam, February 21, 2025
Deloitte Accountants B.V.
M.R. van Leeuwen
473
NOTES
NOTES
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
474
(1)
The Patent Box regime firstly intro-
duced by the Italian Law No. 190/2014
was implemented by the Group from
2020 to 2024, recognizing the tax ben-
efit over three annual installments.
The new Patent Box regime regulated
by Law Decree No. 146, effective from
October 22, 2021, provides for a 110%
super tax deduction for costs relating
to eligible intangible assets and allows
for a transitional period where both
regimes coexist.
(2)
The Diversity Policy is applicable to all
board members of Ferrari N.V., ac-
cording to Dutch law, and it is drafted
taking into account the interests of
the Board of Directors itself.
(3)
We identify our clients as Ferraristi.
(4)
“EFRAG IG 1: Materiality assessment
implementation guidance”.
(5)
For the fiscal year 2023, the Non-fi-
nancial statement was implemented
on the basis of the GRI Standards.
(6)
Maranello production facility is com-
posed of the main offices, production
buildings, and the adjacent Fiorano
track (of approximately 3 thousand
meters).
(7)
At present, our Environmental Prac-
tice does not cover adaptation to
climate change.
(8)
We do not have a net-zero target, but
only a carbon neutrality one.
(9)
Istituto Superiore per la Protezione e
la Ricerca Ambientale - ISPRA.
(10) No stakeholders were involved in the
definition of environmental targets.
(11) The companies reported in the para-
graph “Scope of consolidation”.
(12) The gross Scope 1 and Scope 2
GHG emissions do not include any
removals, or any purchased, sold or
transferred carbon credits or GHG
allowances.
(13) Regulation (EU) 2020/852 of the Euro-
pean Parliament and of the Council of
18 June 2020 on the establishment of
a framework to facilitate sustainable
investment, and amending Regulation
(EU) 2019/2088.
(14) • Commission Delegated Regulation
(EU) 2021/2139 of 4 June 2021 supple-
menting Regulation (EU) 2020/852 of
the European Parliament and of the
Council by establishing the technical
screening criteria for determining the
conditions under which an economic
activity qualifies as contributing sub-
stantially to climate change mitigation
or climate change adaptation and for
determining whether that economic
activity causes no significant harm to
any of the other environmental objec-
tives. In June 2023, the Commission
approved new criteria for economic
activities contributing to the remain-
ing 4 environmental objectives (in
addition to the first two objectives of
climate change mitigation and adapta-
tion to climate change) and amend-
ments to delegated climate acts. With
reference to this reporting exercise,
only the verification of applicability
(c.d. eligibility) is required for these
remaining 4 objectives.
• Commission Delegated Regula-
tion (EU) 2023/2485 of June 27, 2023
amending Delegated Regulation (EU)
2021/2139 establishing addition-
al technical screening criteria for
determining the conditions under
which certain economic activities
qualify as contributing substantially to
climate change mitigation or climate
change adaptation and for determin-
ing whether those activities cause no
significant harm to any of the other
environmental objectives.
• Commission Delegated Regulation
(EU) 2023/2486 of June 27,2023 sup-
plementing Regulation (EU) 2020/852
of the European Parliament and of the
Council by establishing the technical
screening criteria for determining the
conditions under which an econom-
ic activity qualifies as contributing
substantially to the sustainable use
and protection of water and marine
resources, to the transition to a circu-
lar economy, to pollution prevention
and control, or to the protection and
restoration of biodiversity and ecosys-
tems and for determining whether that
economic activity causes no significant
harm to any of the other environmental
objectives and amending Commission
Delegated Regulation (EU) 2021/2178
as regards specific public disclosures
for those economic activities.
NOTES
FERRARI N.V. 2024 ANNUAL REPORT AND FORM 20-F
NOTES
475
(15) Commission Delegated Regulation
(EU) 2021/2178 of 6 July 2021 supple-
menting Regulation (EU) 2020/852 of
the European Parliament and of the
Council by specifying the content and
presentation of information to be dis-
closed by undertakings subject to Ar-
ticles 19a or 29a of Directive 2013/34/
EU concerning environmentally
sustainable economic activities, and
specifying the methodology to comply
with that disclosure obligation.
(16) The financial data included in these
KPIs are a portion of group net rev-
enues included in the Consolidated
Financial Statements, Note 4 and
“Financial Overview—Results of
Operations” sections.
(17) EL – Eligible, Taxonomy-eligible ac-
tivity for the relevant environmental
objective; N/EL – Not eligible, Taxon-
omy-non-eligible activity for the rele-
vant environmental objective.
The “code” constitutes the abbre-
viation of the relevant objective to
which the economic activity is eligible
to make a substantial contribution,
as well as the section number of the
activity in the relevant Annex covering
the objective, i.e.: Climate Change
Mitigation: CCM; Climate Change Ad-
aptation: CCA; Water and Marine Re-
sources: WTR; Circular Economy: CE;
Pollution Prevention and Control: PPC;
Biodiversity and ecosystems: BIO.
(18) The financial data included in these
KPIs are a portion of group Capital
Expenditures included in the Consol-
idated Financial Statements, notes 14
and 15.
(19) EL – Eligible, Taxonomy-eligible ac-
tivity for the relevant environmental
objective; N/EL – Not eligible, Taxon-
omy-non-eligible activity for the rele-
vant environmental objective.
The “code” constitutes the abbre-
viation of the relevant objective to
which the economic activity is eligible
to make a substantial contribution,
as well as the section number of the
activity in the relevant Annex covering
the objective, i.e.: Climate Change
Mitigation: CCM; Climate Change Ad-
aptation: CCA; Water and Marine Re-
sources: WTR; Circular Economy: CE;
Pollution Prevention and Control: PPC;
Biodiversity and ecosystems: BIO.
(20) The financial data included in these
KPIs are a portion of group Operating
Expenditures included in the Consoli-
dated Financial Statements.
(21) EL – Eligible, Taxonomy-eligible ac-
tivity for the relevant environmental
objective; N/EL – Not eligible, Taxon-
omy-non-eligible activity for the rele-
vant environmental objective.
The “code” constitutes the abbre-
viation of the relevant objective to
which the economic activity is eligible
to make a substantial contribution,
as well as the section number of the
activity in the relevant Annex covering
the objective, i.e.: Climate Change
Mitigation: CCM; Climate Change Ad-
aptation: CCA; Water and Marine Re-
sources: WTR; Circular Economy: CE;
Pollution Prevention and Control: PPC;
Biodiversity and ecosystems: BIO.
(22) Delegated Regulation (EU) 2022_1214
of 9 March 2022.
(23) Registration, Evaluation, Authorisation
and Restriction of Chemicals.
(24) It refers to Ferrari S.p.A..
(25) All MDR-P applied for “Approval of
auxiliary and direct materials, storage
management” refers also to “CMR
mixture/substances derogation”.
(26) Categories: respiratory sensitisation
category 1, skin sensitisation cate-
gory 1, specific target organ toxicity,
repeated exposure categories 1 and
2 and specific target organ toxicity,
single exposure categories 1 and 2.
(27) The statistical data is based on in-
formation included in the following
website: https://www.fairfaxcounty.
gov/plan2build/waste-stream-calcu-
lation-worksheet-nonresidential-uses.
(28) Lifespans of passenger cars in
Europe: empirical modelling of fleet
turnover dynamics - Maximilian Held,
Nicolas Rosat, Gil Georges, Hermann
Pengg & Konstantinos Boulouchos –
European Transport Research Review.
(29) The calculation of the recyclability
rates is in accordance with the stan-
dard ISO 22628: 2002.
(30) Supervisor who is in charge of the
employees of a department.
(31) One Ferrari Performance and Feed-
back process refers to our perfor-
mance management process.
(32) For more information, please refer
to “S3—Affected communities—Our
actions”.
(33) Managerial positions refer to “Manag-
ers and Senior Managers” and “Middle
Managers”.
(34) These policies are part of “Quality,
safety and environment” integrated
policy for Ferrari S.p.A. and part of
“Environmental, Safety, Quality and
Sustainability” integrated policy for
Mugello Circuit S.p.A..
(35) Drive Sustainability is a partnership
between leading automotive compa-
nies. The mission of the partnership is
to work together to improve the social,
ethical and environmental perfor-
mance of automotive supply chains.
(36) Suppliers delivering components/ma-
terials used in the production of our
sports cars.
(37) As of the date of the publication of this
Statement, Ferrari has not carried out
any assessment on client’s categories.
(38) Within the risk assessment carried
out by the Compliance function, the
definition of function is a specific area
of activity or responsibility within the
organization based on the type of
work performed or the goals to be
achieved.
(39) The activity refers to all direct
suppliers and Ferrari S.p.A. indirect
suppliers. For the other subsidiaries
it applies if the order is above the
threshold of Euro 150 thousand.
(40) The questionnaire is administered
per plant, so if a supplier has several
plants (or factories), each of them
must complete its own questionnaire.
(41) Suppliers delivering components/ma-
terials used in the production of our
sports cars.
(42) In line with the European Commis-
sion Recommendation 2003/361/CE,
we consider as SMEs the companies
that do not exceed two out of three of
the following thresholds for two con-
secutive years: number of employees
>250, turnover > € 50 million, and total
assets > €43million.
(43) The total annual remuneration of
the CEO includes all remuneration
components (such as fixed remuner-
ation, variable remuneration in cash
(bonus), the share-based portion
of the remuneration (value of the
share-based payment is determined
at the time of allocation in line with
the applicable regulations under IFRS
Accounting Standards), social premi-
ums, pension, expense allowance, et
cetera), as included in the (consolidat-
ed) financial statements on an IFRS
Accounting Standards basis.
(44) () The average annual remuneration
of the employees is determined by
dividing the total wage costs in the
financial year (as included in the (con-
solidated) financial statements on an
IFRS Accounting Standards basis) by
the average number of FTEs during
the financial year. Hiring of external
employees is taken into account on
a pro rata basis, insofar as these are
hired for at least three months during
the financial year.