Ferrari Group PLC

984500Y7F9EB3DRC44062024-01-012024-12-31iso4217:EUR984500Y7F9EB3DRC44062023-01-012023-12-31984500Y7F9EB3DRC44062024-01-012024-12-31ferrarigroupplc:DilutedEarningsLossPerShareMemberiso4217:EURxbrli:shares984500Y7F9EB3DRC44062023-01-012023-12-31ferrarigroupplc:DilutedEarningsLossPerShareMember984500Y7F9EB3DRC44062024-12-31984500Y7F9EB3DRC44062023-12-31984500Y7F9EB3DRC44062022-12-31984500Y7F9EB3DRC44062022-12-31ifrs-full:IssuedCapitalMember984500Y7F9EB3DRC44062022-12-31ifrs-full:RetainedEarningsMember984500Y7F9EB3DRC44062022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember984500Y7F9EB3DRC44062022-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember984500Y7F9EB3DRC44062022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember984500Y7F9EB3DRC44062022-12-31ifrs-full:NoncontrollingInterestsMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:IssuedCapitalMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:RetainedEarningsMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember984500Y7F9EB3DRC44062023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember984500Y7F9EB3DRC44062023-12-31ifrs-full:IssuedCapitalMember984500Y7F9EB3DRC44062023-12-31ifrs-full:RetainedEarningsMember984500Y7F9EB3DRC44062023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember984500Y7F9EB3DRC44062023-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember984500Y7F9EB3DRC44062023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember984500Y7F9EB3DRC44062023-12-31ifrs-full:NoncontrollingInterestsMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:IssuedCapitalMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:RetainedEarningsMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember984500Y7F9EB3DRC44062024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember984500Y7F9EB3DRC44062024-12-31ifrs-full:IssuedCapitalMember984500Y7F9EB3DRC44062024-12-31ifrs-full:RetainedEarningsMember984500Y7F9EB3DRC44062024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember984500Y7F9EB3DRC44062024-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember984500Y7F9EB3DRC44062024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember984500Y7F9EB3DRC44062024-12-31ifrs-full:NoncontrollingInterestsMember Ferrari Group PLC Annual Report 2024 Page 2 of 139 CONTENTS COMPANY INFORMATION .......................................................................................................................................................................................... 3 STRATEGIC REPORT .................................................................................................................................................................................................... 4 CORPORATE GOVERNANCE REPORT ........................................................................................................................................................................ 21 NON-EXECUTIVE DIRECTOR’S REPORT ..................................................................................................................................................................... 34 DIRECTORS’ REPORT ................................................................................................................................................................................................ 36 REMUNERATION REPORT ......................................................................................................................................................................................... 43 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FERRARI GROUP PLC ...................................................................................................... 46 CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2024 ................................................................................................ 61 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2024 ............................................ 62 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2024 ................................................................................................. 63 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024 .................................................................................... 65 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF DECEMBER 31, 2024 ................................................................................................. 66 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................................................................................................................................ 67 REPORTING STANDARDS AND BASIS OF PREPARATION ......................................................................................................................................................................................................... 67 1. REVENUES AND SEGMENTS INFORMATION................................................................................................................................................................................................... 88 2. OTHER INCOME ...................................................................................................................................................................................................................................... 91 3. PURCHASE OF GOODS .............................................................................................................................................................................................................................. 91 4. COST FOR SERVICES ................................................................................................................................................................................................................................. 91 5. PERSONNEL COSTS .................................................................................................................................................................................................................................. 92 6. OTHER OPERATING COSTS ........................................................................................................................................................................................................................ 92 7. FINANCE INCOME ................................................................................................................................................................................................................................... 93 8. FINANCE EXPENSES ................................................................................................................................................................................................................................. 93 9. EXCHANGE GAIN / (LOSSES) ...................................................................................................................................................................................................................... 93 10. RESULT FROM INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ...................................................................................................................................................... 94 11. INCOME TAXES ....................................................................................................................................................................................................................................... 94 12. EARNINGS PER SHARE AND DIVIDENDS ........................................................................................................................................................................................................ 95 13. GOODWILL ............................................................................................................................................................................................................................................ 96 14. INTANGIBLE ASSETS ................................................................................................................................................................................................................................. 97 15. PROPERTY, PLANT AND EQUIPMENT ........................................................................................................................................................................................................... 98 16. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ............................................................................................................................................................................................... 99 17. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ........................................................................................................................................................................ 100 18. NON-CURRENT RECEIVABLES .................................................................................................................................................................................................................. 101 19. OTHER NON-CURRENT ASSETS................................................................................................................................................................................................................. 101 20. TRADE RECEIVABLES .............................................................................................................................................................................................................................. 102 21. CURRENT ASSETS .................................................................................................................................................................................................................................. 102 22. OTHER CURRENT RECEIVABLES ................................................................................................................................................................................................................ 103 23. CASH AND CASH EQUIVALENTS ................................................................................................................................................................................................................ 103 24. SHARE CAPITAL .................................................................................................................................................................................................................................... 104 25. NON-CONTROLLING INTERESTS ............................................................................................................................................................................................................... 105 26. RESERVES ............................................................................................................................................................................................................................................ 105 27. EMPLOYEE BENEFITS ............................................................................................................................................................................................................................. 106 28. PROVISIONS FOR RISK AND CHARGES ........................................................................................................................................................................................................ 107 29. NON-CURRENT BORROWINGS ................................................................................................................................................................................................................. 107 30. CURRENT BORROWINGS AND BANK OVERDRAFTS ........................................................................................................................................................................................ 107 31. TRADE PAYABLES .................................................................................................................................................................................................................................. 108 32. OTHER CURRENT LIABILITIES................................................................................................................................................................................................................... 108 33. CURRENT TAX RECEIVABLES AND PAYABLES ................................................................................................................................................................................................ 109 34. COMMITMENTS AND GUARANTEES .......................................................................................................................................................................................................... 109 35. AUDITOR’S REMUNERATION ................................................................................................................................................................................................................... 109 36. THIRD PARTY ASSETS ............................................................................................................................................................................................................................. 110 37. CONTINGENT LIABILITIES ........................................................................................................................................................................................................................ 110 38. RELATED PARTIES .................................................................................................................................................................................................................................. 112 39. DERIVATIVES FINANCIAL INSTRUMENTS ..................................................................................................................................................................................................... 115 40. FINANCIAL ASSETS AND LIABILITIES ........................................................................................................................................................................................................... 115 41. FINANCIAL RISK MANAGEMENT AND OTHER RISK......................................................................................................................................................................................... 117 42. ALTERNATIVE PERFORMANCE MEASURES ................................................................................................................................................................................................. 120 43. POST BALANCE SHEET EVENTS ................................................................................................................................................................................................................. 122 Page 3 of 139 Company Information Company Ferrari Group PLC Company registration number: 12614552 Directors: - Mr. Corrado Deiana Executive Director - Mr. Marco Deiana, Executive Director - Mrs. Maria Isabella la Forgia Executive Director - Mr. Alessandro Nicolò Ugo Executive Director - Mrs. Monica Belfiore Non-Executive Director – appointed on February 13 th , 2025 - Mrs. Maria Rita Megre de Sousa Coutinho Non-Executive Director – appointed on February 13 th , 2025 - Mr. Nigel Richard Paxman Non-Executive Director – appointed on February 13 th , 2025 - Mrs. Leslie Anais Serrero Non-Executive Director – appointed on February 13 th , 2025 Company Secretary: - Mr. Antonio Giuliano Castagnetti appointed on February 9 th , 2024 Registered office: 1 Wrights Lane, London, W8 5RY, United Kingdom Current auditor: Deloitte LLP 1 New Street Square, London (UK), EC4A 3HQ Page 4 of 139 Strategic Report The board of directors of Ferrari Group PLC (the Board, and each Director a Director) present the strategic report of Ferrari Group PLC (the Company) and its subsidiaries (the Group or Ferrari Group) for the financial year ended at 31 December 2024. The annual financial statements are prepared adopting the going concern principles. See Directors report and Reporting standards and basis of preparation for details. Main Activities Ferrari Group is a global leader in the worldwide shipment of luxury goods. With over 60 years of experience, knowledge of markets and customs procedures and the continuous innovation in security systems, the Ferrari Group is now an extensive group of companies with branches and offices throughout the world. Established in 1959 as a customs broker and forwarding company in Italy, the Ferrari Group is today a global network operator with revenues of €348.8 million for the financial year ended 31 December 2024. The Ferrari Group is now a major player in the logistics network which services luxury goods, products and high- end events. The customers of the Group include global luxury brands, high-end watchmakers, jewellery manufacturers and distributors, diamond dealers, precious stone producers and private clients. The Group services customers throughout the luxury goods value chain and specifically focuses on the following primary activities: - Freight forwarding: the fast and secure delivery of luxury goods through different airfreight carriers for valuable and vulnerable cargo; - Custom solution: the handling of procedures involved in the shipping of high-value products throughout the world including providing country-specific expertise, customs consultancy services and solutions; - Ground transportation, warehousing and logistic services: the transportation of luxury goods on land through a fleet of armoured and non-armoured vehicles and the safe storage of those goods; and - Special services: offering bespoke services across the logistics value chain including security for luxury goods at red-carpet events, the assembly of goods, after sales services and stocktaking and other services which includes packaging items, kitting and wrapping goods and preparing components for production. As a result, the Group provides integrated services to connect hard luxury brands with their customers by working in cooperation with clients to provide bespoke solutions. Page 5 of 139 Market overview The Ferrari Group operates in the personal luxury goods market by way of serving clients in the hard luxury sector (with specific focus on watches and high-end jewellery). As such, growth dynamics of these sectors significantly impact business operations and the Group’s growth, thus representing the main reference market of the Group. It is, however, important to distinguish the luxury market from the luxury logistics market as whilst both are subject to similar secular trends, some of the growth dynamics are different, with luxury logistics market growing at a faster rate than the luxury market. The requirement for secure transportation services in the luxury sector is linked to the need to bridge the gap between the manufacturing sites of the high-end luxury brands, largely located in Europe (European luxury brands represent 74% of the global value of all products in this category), to the demand mostly coming from countries such as the United States of America and China. The future growth of the personal luxury market could be driven by the following factors: - Increasing number and geographical dispersion of high-net-worth individuals (HNWI) and ultrahigh-net-worth individuals (UHNWI); - New luxury generations are spending more than older generations; - Acceleration of E-Commerce; - Luxury goods adopting new business models; - Asia driving the next wave of growth; - Luxury goods becoming financial assets and investments. There are several industry trends which are shaping the luxury logistics market: - Sustainability: Sustainability has become a significant focus for luxury brands and end consumers, who are increasingly conscious of the environmental impact of logistics operations. Luxury logistics providers are implementing eco-friendly practices and adopting sustainable supply chain strategies to respond to this trend. - Flexibility and personalisation: Luxury brands increasingly seek personalised and customised logistics services that respond to the need of modern-day luxury consumers, who require speed, flexibility and a more tailored approach. - Technology and tracking: The integration of technology has transformed luxury logistics operations. Advanced inventory management systems, track and trace solutions, and real-time data analytics enable efficient supply chain management and provide transparency throughout the logistics process. - Strategic partnerships and collaborations: Luxury brands entering into more long-term collaborations and strategic partnerships with their suppliers and services providers, joining forces to develop a source of competitive advantage. - Increasing weight of fulfillment outsourcing: The post-Covid-19 pandemic boom of e-commerce massively increased the complexity of logistics for luxury brands. Thus, brands have strongly increased their share of outsourcing for warehouses and fulfillment centre management. - Rise of value-added services: Luxury players increasingly demand a range of value-added services. These include quality control inspections, repairs and servicing, luxury product authentication and in-home delivery and installation services. Page 6 of 139 Competitive positioning and landscape The Group considers itself as a luxury secure logistics specialist within the broader secure logistics space. In particular, the luxury watches and jewelry sector is a niche with few operators, a limited number of shipments, high goods value and significant complexities in custom procedures. Competitive landscape of the secure logistics industry for high-value luxury. The main groups of competitors of the Group can be summarised as follows: - Luxury Secure Logistics Specialists: recognised by customers as the best option for security and reliability. They are specialised on luxury and operate globally with a mix of own subsidiaries and partner networks. - Non-Luxury Secure Logistics Specialists: Have cash management as core business, but also offer secure shipment for jewels and watches – they guarantee a good level of service but less tailored to the luxury industry. - Local Secure Logistics Specialists: specialised players with a regional focus, they offer an acceptable level of service for same-region shipments, but fall behind in service completeness and flexibility. - Global Logistics Generalists: a residual option for most luxury companies. They do not offer the same level of security, reliability, or insurance coverage, since their operating model is built for volume shipment. Strategy and business model The Group has an ambitious growth strategy which is based on increasing top line opportunities and maximising efficiency savings. This strategy is based on four key value creation drivers: (i) increasing the Share of Wallet, (ii) regional expansion, (iii) growing new customer segments and (iv) improving margins across the Group. It is noted that these four drivers are interconnected, whereby each driver depends on and mutually strengthens the others, forming a cohesive approach to growth of the Group. For instance, the increase of Share of Wallet, growth in new segments related to e-commerce and improvement of margins across the group partly depend on the ability of the Group to realise regional expansion, as regional expansion allows the Group to open a new network to be utilised by existing customers, attract new clients and work more efficiently. With its growth strategy, the Group intends to take its proven and scalable business model, which is based on an “asset light” structure with high margin and high barriers to entry to further develop its top line revenues. In doing so, the Group intends to utilise its existing long-term client relationships, win new clients, and diversify its existing customer base which comprises primarily traditional hard luxury goods brands, to include e-commerce players in the luxury goods sector. The Ferrari Group operates a differentiated business model, which leverages the Group’s distinct value proposition and bespoke services to clients. The Ferrari Group’s business model encompasses sufficient operational flexibility which allows the Group to cater to the complex transportation requirements of its customers which inevitably arise when dealing with the transportation and storage of hard luxury goods globally. The key aspect of the Group’s service offering is to provide integrated services to connect hard luxury brands with their customers. In order to do this, the Group works in close cooperation with its clients to provide bespoke solutions which are based on the Group’s niche expertise in the hard luxury logistics sector. The Group operates a dynamic revenue and pricing model. The Group revenues are driven by three main volume parameters: number of shipments (units), shipments taxable weight (kg), and value of goods shipped per shipments (Euro). As a logistics service provider, the Group has limited fixed costs and these are factored into the overall pricing structure of the Group. Group costs include shipping costs (air freight costs, land transportation costs), packing materials and personnel costs. The “asset light” nature of the Group’s structure ensures that limited capital is needed to support logistics infrastructure. The Group Page 7 of 139 maintains a cash position that allows for flexibility in grasping business opportunities worldwide, such as the opening of new locations or entering into new partnerships in show or events that require short-term investments. In this way the Group’s business model is set up in a manner which ensures a high profit margin whilst maintaining a low capital expenditure model. In particular, the Group is able to optimise route networks across its customer base through key transport routes which allows the Group to offset inflationary pressures with variable cost. As a result, only minimal up-front investments are needed to service new locations and customers. Through linking customer fees to the value of the goods being transported, the Group is able to remain well-insulated from external inflationary pressures. This model, while having its roots in the international transport sector, is highly scalable. This factor has allowed the Ferrari Group to expand its business by offering a number of ancillary services (i.e., ad-hoc special and other services) to the core business. This approach allows the Group to offer complete services across the hard luxury logistics value chain as a “one-stop-shop” provider of luxury deliveries worldwide. The Group sees its strategy as leveraging existing knowhow and expertise and applying it to new and lucrative sectors and new services. It also seeks to increase the Share of Wallet with existing clients, expand the scope of services provided and explore new locations. The approach of identifying efficiencies seeks to ensure that profit margins continue to increase. The Group seeks to integrate the four strategic value creation drivers with the overall ESG development plans of the Group. A successful realisation of the Group’s growth strategy will result in an increase of shipments, which will inevitably result in additional greenhouse gas emission. The challenge for the Group will be to realise its growth in a way that would least affect its carbon footprint. However, some of the key initiatives aimed at improving the Group’s margins, may also contribute to the achievement of the Group’s overall ESG development plans. For example, the digital transformation of the Group and automation of shipment handling should contribute to the implementation of the Group’s paperless policy. Improvements in workforce management could also help reduce energy use in the premises of the Group. Furthermore, the ESG development plans will allow the Group to offer its customers more sustainable transportation options, which aids customers in managing their own Scope 3 emissions. This in turn may help the Group increase its Share of Wallet and attract new customers. Environmental, Social and Governance The Group is aware of the environmental, social and economic impacts that its operations have in the locations in which it operates and seeks to ensure compliance with ESG principles to a high ethical standard. To this end, the Group has adopted a sustainability plan for the years 2022 to 2026 which covers a wide range of ESG items including environmental, human resources, supplier and customer engagement, and ethics and governance matters (the Sustainability Plan). The Sustainability Plan voluntarily contributes to the achievement of nine of the seventeen United Nations’ Sustainable Development Goals (SDGs), namely SDGs 3, 5, 7, 8, 9, 10, 12, 13 and 16. These nine SDGs have been linked to the following three (3) pillars that represent the macro-areas on which the Group has an impact. As the Group works towards the alignment of its corporate reporting package to the Corporate Sustainability Reporting Directive (‘CSRD’), it is reviewing its Sustainability Plan and finalizing quantitative targets. Furthermore, the Board of Directors is committed to upholding its responsibilities under Section 172 of the Companies Act 2006 as outlined in the ‘Section 172 Companies Act 2006 Statement’. The Sustainability Plan is the primary strategy adopted by the Board for the purposes of defining the Group’s ESG commitments and reporting on the development of its ESG framework. The Sustainability Plan incorporates ESG criteria to reduce the Group’s carbon footprint, improve the sustainability of its operations and support green initiatives in the logistics sector. The Sustainability Plan is supplemented by Page 8 of 139 specific ESG related polices adopted by the Board which cover the Group’s Code of Ethics, the Group suppliers code of conduct (Suppliers’ Code of Conduct), anti-harassment, equal opportunities, anti-bribery and environmental and sustainable procurement policies. These specific policies apply to the Group as a whole and in all the jurisdictions in which the Group operates. Currently, in addition to these Group policies covering specific ESG related matters, individual Group Companies have separate environmental and social policies containing more specific rules and procedures with regard to ESG matters. Such local policies are largely dictated by specific ESG considerations and regulations in the jurisdictions in which the relevant Group Companies operate. In the future, the Group intends to transition from its current separate environmental and social policies for individual Group Companies to the adoption of a Group-wide ESG policy. While such Group-wide ESG policy will not be able to cater for specific ESG considerations in each relevant jurisdiction, this strategic shift reflects the Group’s aim to integrate environmental, social and governance considerations into its overall business framework, aligning its practices and processes with sustainable and responsible principles to drive positive impacts across all aspects of the Group’s operations. This also means that for certain jurisdictions the Group-wide ESG policy might set more ambitious targets than strictly required by the laws of such jurisdictions. The Group intends to adopt an ESG model which is embedded across the Group’s value chain. The ESG model would therefore seek to cover each step of the logistics service line from origin, transit, warehousing and final destination deliveries. The Group is in the process of launching the following specific initiatives in relation to reducing its Scope 1, 2 and 3 GHG emissions: ● Electric vehicles: the launch of a procurement programme to increase the share of electric vehicles on the armoured truck fleet of the Group; ● Emission compensation: establishing contractual agreements to purchase compensation emissions at a Group level; ● Sustainable fuel: further expanding the Group’s arrangements under the sustainable air fuel program; ● Solar panels: installation of solar panels at Group Company premises where renovation activities are ongoing; ● Low-carbon energy sourcing: updating contractual arrangements with energy providers to increase the share of clean energy use in all countries where the Group operates with a phase-in approach; and ● Energy efficiency: reducing energy use in all premises through energy efficiency investments including in lighting systems and heating, ventilation and air-conditioning with a phase-in approach. In addition to the initiatives described above, the Group intends to identity and determine specific short- term ESG environmental and social best practices. From an environmental perspective the Group intends to increase energy use through low-carbon energy sources in eligible premises whereas from a social perspective it intends to improve the performance review system in place. By adopting these best practices outlined above, the Group seeks to substantially enhance its existing ESG strategies in a manner that is consistent with the growth strategy of the Group and that meets client demands and expectations, whilst it finalizes it alignment to CSRD and finalizes quantitative targets. Page 9 of 139 Environmental (contributing to SDGs 7, 9, 12 and 13) As part of the Group’s commitment to environmental responsibility and compliance with the Streamlined Energy and Carbon Reporting (‘SECR’) framework, the Group has been collecting information on its energy consumption and carbon emissions. Although the Group qualifies as an unquoted low energy organisation which has consumed less than 40MWh in the UK during the period in respect of which the report is prepared (in 2024 the UK premises of the Group consumed less than 5MWh in total), the total energy consumption and the total Scope 1 and 2 carbon emissions will be disclosed in the Group’s 2024 Annual Sustainability Report, which will be published by the end of June 2025. The Group’s environmental objectives foresee (i) the reduction of negative environmental impacts, in terms of associated GHG emissions and waste generated, through monitoring tools and internal dashboards, as well as increased energy efficiency (contributing to the Group’s ESG goals 2 and 4), (ii) obtaining environmental certifications (contributing to the Group’s ESG goal 3), and (iii) formalising procedures and implementation of digitised systems aimed at reducing paper usage (contributing to the Group’s ESG goal 1). Social (contributing to SDGs 3, 5, 8 and 10) The Group’s social objectives foresee (i) investing in employees’ well-being, health and safety (contributing to the Group’s ESG goals 5 and 6), and (ii) promoting diversity and inclusion with the aim to attract and retain talent (contributing to the Group’s ESG goals 5 and 6). Governance (contributing to SDG 16) The Group’s governance objectives foresee fostering a corporate culture aimed to promote ethical behaviour, with respect of people and shared norms of behaviour, and reduce the risks related to potential corruption episodes (contributing to the Group’s ESG goal 7). Page 10 of 139 Business review and key performance indicators Financial Key performance indicators Euro/000 FY2024 FY2023 Revenues 348,756 333,036 Adjusted EBITDA 92,381 90,025 Adjusted EBITDA Margin % 26.5% 27.0% Profit for the year 57,297 56,900 Net Working Capital 35,101 36,253 Net Financial Position 86,992 72,578 The alternative performance measures have been defined and reconciled in note 42. Business review The table below shows the economic data for the financial year 2024 and comparative data for 2023: Amounts in € thousand FY2024 % of Revenues FY2023 % of Revenues Revenues 348,756 100.0% 333,036 100.0% Other income 6,110 1.8% 4,197 1.3% Purchase of goods (5,772) -1.7% (5,517) -1.7% Costs for services (145,261) -41.7% (142,437) -42.8% Personnel costs (107,388) -30.8% (97,299) -29.2% Impairment of trade receivables (382) -0.1% (813) -0.2% Other operating costs (3,682) -1.1% (4,401) -1.3% EBITDA 92,381 26.5% 86,766 26.1% - Listing costs - 0.0% 3,259 1.0% Adjusted EBITDA 92,381 26.5% 90,025 27.0% Provision for risks (1,837) -0.5% (145) 0.0% Depreciation and Amortisation (17,355) -5.0% (13,632) -4.1% Operating Profit 73,189 21.0% 72,989 21.9% Finance income 1,672 0.5% 1,238 0.4% Finance expenses (1,656) -0.5% (2,314) -0.7% Exchange losses (1,233) -0.4% (802) -0.2% Result from investments accounted for using the equity method 834 0.2% 951 0.3% Profit before taxes 72,806 20.9% 72,062 21.6% Income taxes (15,509) -4.4% (15,162) -4.6% Profit for the year 57,297 16.4% 56,900 17.1% Revenues Revenues increased by €15.7 million, or 4.7%, from €333.0 million for the year ended 31 December 2023 to €348.8 million for the year ended 31 December 2024. The increase was primarily due to the increase in the total value of the goods transported and the total weight of transported goods, as well as the optimisation and expansion of the route network. Page 11 of 139 The following table sets forth the Group’s revenues by service for the year ended 31 December 2024 and the year ended 31 December 2023: Amounts in Euro/000 FY2024 % FY2023 % International Services 230,484 66.1% 221,981 66.7% Domestic Services 57,443 16.5% 50,780 15.2% Warehouse & Logistics Services 22,293 6.4% 18,414 5.5% Special and other services 38,536 11.0% 41,861 12.6% Total Revenues 348,756 100.0% 333,036 100.0% International Services International Services represent the Group’s largest service by revenues. International Services recorded revenues of €230.5 million for the year ended 31 December 2024, or 66.1% of total revenues, compared to €222.0 million, or 66.7% of total revenues, for the year ended 31 December 2023, representing an increase of €8.5 million, or 3.8%. Such increase was mainly due to the increase in the average value of the goods transported and the total weight of transported goods, as well as the optimisation and expansion of the route network. Domestic Services Domestic Services represent the second largest service by revenues. Domestic Services recorded revenues of €57.4 million for the year ended 31 December 2024, or 16.5% of total revenues, compared to €50.8 million, or 15.2% of total revenues, for the year ended 31 December 2023, representing an increase of €6.6 million, or 13.1%. Such increase was mainly due to the increase in volumes of International Services, which positively impacted domestic activity, particularly in Dubai, the United States, Italy, France and Germany, as the Group’s full-service offering allows it to combine and cross-sell its different services to its customers. Warehouse & Logistics Services Warehouse & Logistics Services represent the fourth largest service by revenues. Warehouse & Logistics Services recorded revenues of €22.3 million for the year ended 31 December 2024, or 6.4% of total revenues, compared to €18.4 million, or 5.5% of total revenues, for the year ended 31 December 2023, representing an increase of €3.9 million, or 21.2%. Such increase was mainly due to the Group’s decision to increase its provision of warehouses and security vaults, especially in the Netherlands, in order to meet its customers’ growing demand for secured storage facilities, to streamline its supply chain and to keep inventory closer to its customers. Special and other services Special and other services represent the third largest service by revenues. Special and other services recorded revenues of €38.5 million for the year ended 31 December 2024, or 11.0% of total revenues, compared to €41.9 million, or 12.6% of total revenues, for the period ended 31 December 2023, representing a decrease of €3.3 million, or 7.9%. Such decrease was mainly due to the decrease demand by customers for tailored services, such as hand-carry and white glove services, as well as the decrease in private events, fairs, shows and other special services. Page 12 of 139 Revenue by geography The following table sets forth the Group’s revenues by geography for the year ended 31 December 2024 and the year ended 31 December 2023: Amounts in Euro/000 FY2024 FY2023 Europe 216,310 204,158 Asia 75,012 76,365 NAM & Brazil 56,215 53,651 Rest of the world 47,024 40,453 Intercompany elimination (45,806) (41,591) Total Revenues 348,756 333,036 Europe Europe represents the Group’s largest geographic segment in terms of revenues. Europe recorded revenues of €216.3 million for the year ended 31 December 2024 compared to €204.2 million for the year ended 31 December 2023, representing an increase of €12.1 million, or 6.0%. Such increase was mainly due to the increased volume of goods transported on behalf of the Group’s major customers with production centres and suppliers in Italy, Switzerland and France. In addition, the increase was due to the higher revenues generated by Ferrari Logistics Netherland B.V. and Ferrari Logistics Germany GmbH, which was the result of the operational ramp-up and the investments made in the Netherlands and Germany, respectively, to increase the volume services provided to the customers in these countries. Asia Asia represents the Group’s second largest geographic segment in terms of revenues. Asia recorded revenues of €75.0 million for the year ended 31 December 2024 compared to €76.4 million for the year ended 31 December 2023, representing a decrease of €1.4 million, or 1.8%. Such decrease was mainly due to the decreased volume of services provided by the Company’s subsidiaries, in particular Ferrari Logistic (Asia) Ltd. and Ferrari Logistics China Ltd., to the existing customers. The decrease in the services provided by Ferrari Logistic (Asia) Ltd. and by Ferrari Logistics China Ltd. was partially due to the general contraction of the Chinese market. North America and Brazil North America and Brazil represent the Group’s third largest geographic segment in terms of revenues. North America and Brazil recorded revenues of €56.2 million for the year ended 31 December 2024 compared to €53.7 million for the year ended 31 December 2023, representing an increase of €2.5 million, or 4.8%. The increase was due to the increased volume of services provided to both existing and new customers in the geographical area, particularly in the United States through Ferrari Express Inc and in Brazil through Ferrari Express Logistica e Transporte do Brasil LTDA. Rest of the world The geographic area covering the rest of the world represents the Group’s fourth largest geographic segment in terms of revenues and recorded revenues of €47.0 million for the year ended 31 December 2024 compared to €40.5 million for the year ended 31 December 2023, representing an increase of €6.5 million, or 16.2%. Such increase was mainly due to increased volume of services sold to global costumers and local customers, particularly in Dubai (UAE) through Ferrari Logistics Middle East FZE – UAE and in South Africa through Ferrari Logistics Southern Africa Ltd., which the Group includes in the geographic area covering the rest of the world. Page 13 of 139 Costs of services increased by €2.9 million, or 2.0%, from €142.4 million for the year ended 31 December 2023 to €145.3 million for the year ended 31 December 2024. Such increase was primarily due to an increase in shipping costs of €2.7 million, which was partially offset by a decrease in legal and administrative consultancy fees of €1.6 million. Shipping costs increased due to the increase in value of the goods being shipped and in the number of shipments provided by the Group to meet its customers’ growing demand, while legal and administrative consultancy fees decreased due to listing costs amounting to €3.3 million for the year ended 31 December 2023 not being repeated in the same period in 2024 as they are borne by the parent company (Deiana Holding Limited). Shipping costs as a percentage of revenues decreased from 35.2% for the year ended 31 December 2023 compared to 34.4% for the year ended 31 December 2024 due to the reduction in airfreight occurred in 2024 and the Group’s ability to consolidate more shipments. Personnel costs increased by €10.1 million, or 10.4%, from €97.3 million for the year ended 31 December 2023 to €107.4 million for the year ended 31 December 2024. Such increase was primarily due to the increase in the number of full-time employees hired during the year ended 31 December 2024 to accommodate the growth in the Group’s operations and assist in the digital transformation of the Group. Adjusted EBITDA increased by €2.4 million or 2.6%, from €90.0 million for the year ended 31 December 2023 to €92.4 million for the year ended 31 ended 2024. Such increase was due to the increase in the Group’s revenues. The Adjusted EBITDA Margin decreased from 27.0% for the year ended 31 December 2023 to 26.5% for the year ended 31 December 2024 due to a more than proportionate increase in Personnel Cost, partially compensated by a less than proportionate increase in Cost for Services. Depreciation and amortisation increased by €3.7 million from €13.6 million for the year ended 31 December 2023 to €17.4 million for the year ended 31 December 2024. Such increase resulted primarily from (i) an increase in depreciation of the right-of-use assets as a result of the Group’s procurement of new contracts for offices and warehouses, particularly in Italy, the Netherlands, Switzerland, Germany, the United States and China, and (ii) an increase in depreciation of property, plant and equipment as a result of the improvement made to the new offices and warehouses listed above and new investments in other tangible assets. Finance income increased by €0.5 million, from €1.2 million for the year ended 31 December 2023 to €1.7 million for the year ended 31 December 2024. Such increase was primarily due to an increase in bank deposits and to the fair value adjustment of the Group’s investments in mutual funds. Finance expenses decreased by €0.7 million, from €2.3 million for the year ended 31 December 2023 to €1.7 million for the year ended 31 December 2024. Such decrease of €1.0 million, or 76.9%, Such decrease is primarily due to the increase of the net financial position of the Group. Income tax expense amount to €15.5 million for the year ended 31 December 2024, compared to €15.2 million for the year ended 31 December 2023, representing an increase of €0.3 million. Such increase is mainly due to the increase in profit before taxes and to a different split of the Group profit among countries with a different tax rate. Based on the foregoing, the Group’s profit was €57.3 million for the year ended 31 December 2024 compared to a profit of €56.9 million for the year ended 31 December 2023, representing an increase of €0.4 million. Page 14 of 139 Net Working Capital Net Working Capital is defined as current assets less current liabilities adjusted for current assets, cash and cash equivalents, current borrowings and bank overdraft and current lease liabilities. Euro/000 FY2024 FY2023 Total current assets 216,207 208,074 Less: - Cash & cash equivalents (115,799) (98,777) - Current assets (8,946) (6,654) Total current assets (excluding current financial assets) 91,462 102,643 Total Current Liabilities (68,867) (77,133) Less: - Current borrowings and bank overdraft 772 883 - Current lease liabilities 11,734 9,860 Total current liabilities (excluding current financial liabilities) (56,361) (66,390) Net Working Capital 35,101 36,253 Net Working Capital decreased by €1.2 million, or 3.2%, from €36.3 million for the year ended 31 December 2023 to €35.1million for the year ended 31 December 2024. The decrease was primarily due to the decrease in trade receivables of €15.3 million due to the reduction in days sales outstanding. Page 15 of 139 Net financial position The Group uses Net Financial position as a key performance indicator. The Net Financial position calculated as the sum of total financial liabilities, and non-current trade and other payables, net of cash and cash equivalents and current financial assets. The composition of Net Financial Indebtedness (or funds in case of liquidity surplus) is determined in accordance with ESMA Recommendations contained in Guidelines 32- 382-1138 of 4 March 2021. The Group believes that Net Financial position is useful to monitor the level of net liquidity and financial resources available to the Group. Amount in Euro 000 As at December 31, 2024 As at December 31, 2023 A Cash 115,799 98,777 B Other current financial assets 8,946 6,654 C Liquidity (A+B) 124,745 105,431 D Current financial debt (including debt instruments, but excluding current portion of non-current financial debt) 239 205 E Current portion of non-current financial debt (accrued interest) 12,267 10,538 F Current financial indebtedness (D + E) 12,506 10,743 G Net current funds (C – F) 112,239 94,688 H Non-current financial debt (excluding current portion and debt instruments) 25,247 22,110 I Non-current financial indebtedness (H) 25,247 22,110 J Total funds (G - I) 86,992 72,578 Total funds increased by €14.4 million from €72.6 million of liquidity surplus as of 31 December 2023 to €87.0 million as of 31 December 2024. Such increase was primarily due to the increase in cash and cash equivalents of €17.0 million. Current financial indebtedness increased by €1.8 million, from €10.7 million as of 31 December 2023 to €12.5 million as of 31 December 2024. Such increase was primarily due to new lease liabilities generated by new lease and rental contracts entered into in Italy, the Netherlands, Switzerland, Germany, the United States and China. The increase in lease liabilities was partially offset by lease payments made during the period. Non-current financial indebtedness increased by €3.1 million, from €22.1 million as of 31 December 2023 to €25.2 million as of 31 December 2024. Such increase was primarily due to new lease liabilities generated by new lease and rental contracts entered into in Italy, the Netherlands, Switzerland, Germany, the United States and China. The increase in lease liabilities was partially offset by lease payments made during the period. The Company, as the Group’s parent, has no bank loans. The main outstanding mortgages and bank loans are entered into at a local level by the Company’s subsidiaries are typically denominated in the local currency of their countries of operation and used to cover short-term financing needs. The debt instruments representing such borrowings have customary terms and conditions. None of the Group’s borrowings are subject to financial covenants. Page 16 of 139 Principal risks and uncertainties Risk assessment and principal risks The following is a brief description of the key material risk factors specific to the Company and its Group. In making the selection, the Group has considered circumstances such as the probability of the risk materialising on the basis of the current state of affairs, the potential impact which the materialisation of the risk could have on the Group’s business, financial condition, results of operations and prospects, and the attention that management would, on the basis of current expectations, have to devote to these risks if they were to materialise: Risks relating to legal, regulatory, environmental and taxation matters The physical effects of climate change As at the reporting date, the Group has not yet experienced any physical effects of climate change. However, given the broad and global scope of its operations and its susceptibility to global macroeconomic trends, the Group is vulnerable to the physical effects of climate change, such as shifts in weather patterns and world ecosystems, which could adversely affect the infrastructure and delivery routes used by the Group. Acute physical effects of climate change, such as droughts, floods, extreme precipitation, wildfires and extreme temperature changes could, among others, damage the Group’s infrastructures, cause IT systems to short-circuits, and make airports and motorways inaccessible. The realisation of any of these physical effects of climate change could affect the Group’s supply chain and employee safety, as well as hinder the Group in the performance of its services, which could have a material adverse effect on the Group’s business, financial condition, results of operation or prospects. Please refer to the paragraph “Environmental, Social and Governance” on page 7. Claims, investigations and other legal proceedings in the ordinary course of business In the ordinary course of business, the Group may be subject to claims, private actions, investigations and various other legal proceedings by customers, employees, suppliers, competitors, government agencies or others. The results of any such litigation, investigation or other legal proceedings are inherently unpredictable and expensive. Any claims against the Group, whether meritorious or not, could be time consuming, result in costly litigation or damage to the Group’s reputation, require significant management time, and divert significant resources. If any legal proceedings were to be determined adversely to the Group, or the Group were to enter into a settlement agreement, it could be exposed to limits on its ability to operate its business or significant monetary damages, especially if the Group fails to maintain sufficient insurance coverage for legal claims and considering the high value of the goods handled by the Group in its ordinary course of business. This could materially and adversely affect the Group’s business, financial condition, results of operations or prospects. The Company has also adopted a code of ethics (the Code of Ethics) in respect of the reporting and regulation of anti-bribery and corruption, and further anti-money laundering obligations of Directors and the Company’s employees. The Group has already invested in trainings for its employees by third parties regarding sanctions and ESG/sustainability, but intends to enhance the awareness within the organisation. Page 17 of 139 Risks relating to the industry and to the market in which the Group operates Competitive landscape The Group operates in a narrow section of the market (logistics services relating to luxury goods) in which there are few operators, a limited number of shipments, high value goods and significant complexities in customs procedures (as compared to the wider market of international shipping, where other large international companies are active). It is possible that pricing policies that might be employed by other operators or possible developments and technical innovations (that enable other operators to provide higher value-added services) could result in a loss of customers in favour of the Group’s competitors, with a reduction in demand for the Group’s services and a consequent negative impact on the Group’s business, financial condition, results of operations or prospects. These situations are managed through a price reduction strategy aimed at acquiring market share, regardless of its success. The Group might be unable to match such aggressive price reductions. While its competitors may attempt to gain an advantage through aggressive pricing, the Group focuses on preserving the value and quality of its services while continuously innovating to stay ahead in the market. Adverse changes due to international presence The Group is exposed to risks associated with changes in conditions in the countries in which it operates, with particular reference to the economic, political, fiscal and regulatory conditions of these countries. Due to the highly technical nature of customs regulations, the Group might fail to detect a change in legislation or to provide the required adjustments in its systems of operation in the relevant countries in a timely manner. The same applies to the fiscal component of the customs regulations, such as fiscal representation in countries where this service is provided. Political disruptions may also cause changes in the trade agreements among countries, which may result in changes to customs regulation, which may have an impact on the business of the Group. Geopolitical and macro-economic uncertainties, including trade wars, tariffs, recession, inflation, adverse credit markets and exchange rate fluctuations, could decrease the demand for deliveries to affected jurisdictions, which might adversely impact the profitability of investments made by the Group in its operations, or relationships with local partners, in the relevant locations. The Group also faces the risk of adverse changes in local laws and regulations in which the Group operates, including changes in areas such as trade which has the opportunity to impact the business through the introduction of new barriers and customs requirements. The Group mitigates this risk by having international operations in Europe, Asia, North America, Brazil and Africa. The Group operates in more than 60 countries in three ways: (i) by directly or indirectly owned subsidiaries; (ii) by an associated joint venture with a local partner; and (iii) by way of contractual business relationships with local partners. Consequently, global macroeconomic factors could adversely affect the Group’s results of operations, financial condition or prospects. The Group also stays informed about changes in regulations that may impact its operations with the help of external legal counsels across jurisdictions, and closely monitors its compliance with industry regulations, international trade laws, and security standards. It has set up periodic audits of sanctions and AML policies. The Group has appointed specific compliance officers in Italy, the UK, France, the United Arab Emirates, and the APAC region, who are responsible for monitoring the Group’s compliance with its stated AML policies. Furthermore, the Group, in connections with the changes in legislations and custom regulations, provides regular training to employees and specific training is provided at the time of any new employee is on- boarded into the Group. Page 18 of 139 Risks relating to the Group’s business operations Security and data breaches The Group carries out its activities by using IT systems which, by their nature, are exposed to several operational risks. These operational risks include interruptions of work or connectivity, programming errors, platform instability, equipment failures, interface bugs, telecommunications or electrical network outages, illegal conduct by third parties and exceptional events which, should they occur, may affect the proper functioning of the systems, lead to unauthorised access and/or use of customer data, forcing the Group to slow down, suspend or discontinue its business. The Group’s IT systems are constantly at risk of security breaches and attacks by unauthorised third parties. In the event of an attack, any attempted or actual unauthorised access to IT systems could harm customers' perception of the safety of the Group's infrastructure, IT systems and software and could lead to the loss of customers, including significant customers and/or expose the Group to possible disputes, litigation and claims for compensation. Each of these may have consequent negative effects on the Group's image and reputation as well as on its business, financial condition, results of operations or prospects. Any misappropriation or unlawful use of such information, loss of data or disclosure of confidential and/or proprietary information or tampering with such information, could also result in a violation of the Group's internal guidelines on personal data protection. The occurrence of these events could cause a slowdown or interruption in the Group's activities and services, as well as the loss, unauthorised access or use, and/or destruction of the Group’s data, which may result in disruption for the Group’s customers, possible claims for damages and/or claims for the payment of penalties. The Group ensures the effectiveness of its cybersecurity initiatives, policies and procedures through its information security management system certified to ISO27001 standard. In addition, a third-party security operations centre monitors for cyber anomalies 24 hours a day and seven days a week. Internal risk management and control systems The Group’s risk management policies, procedures and practices are integrated into the structure of the Group. Accordingly, a discussion of the Group’s risk management policies, procedures, and practices begins with an overview of the Group’s organisational structure and the individuals with oversight responsibility with respect to the various divisions within the Group. Responsibility for overseeing compliance and risk management, together with implementation of any compliance programs may sit with the Directors, relevant general manager or sole director of each subsidiary where applicable. These individuals have extensive professional industry experience and sound knowledge of the Group’s processes and risk management framework. The Group is aware that setting up risk management and internal audit functions is crucial for ensuring the security, efficiency, and compliance of the Group’s operations. Currently, the Group is developing risk mitigation strategies and action plans, including periodical reviews of security measures and contingency plans (with the help of an internal security manager) and of insurance coverage (with the help of reputable international brokers such as Willis Towers Watson and AON). Page 19 of 139 The Group also stays informed about changes in regulations that may impact its operations with the help of external legal counsels across jurisdictions, and closely monitors its compliance with industry regulations, international trade laws, and security standards. It has set up periodic audits of sanctions and AML policies. In order to obtain and maintain its insurance coverage and various certifications, the Group undergoes a thorough audit of its risk mitigation strategies both at the time of obtaining the relevant certification. The Group must also set up and maintain a legal register of activities. The periodic audit of the Group’s facilities across jurisdictions is performed by reputable third-party providers. In order to manage supply chain risks, the Group has established a resilient supply chain to minimize disruptions, with alternative transportation routes, emergency response plans, and disaster recovery procedures. The Group has implemented a due diligence process, whereby suppliers are vetted and assessed throughout. The Group is considering several steps for the enhancement of its risk management and the effective establishment of a formal internal audit function, and is currently selecting an external counsel to assist with this process. The Group intends to clearly define the objectives and scope of both the risk management and internal audit functions, and determine the specific areas within the logistics operations that need to be addressed (such as security, compliance, operational efficiency, and financial integrity). The Group is also considering appointing a Chief Internal Audit Manager and enhancing the efficiency of its reporting lines to the Group’s executive management team (the Executive Management Team) or the Board. In addition, the Group wants to develop a periodic audit plan that outlines the areas and processes to be audited, including financial controls, operational processes, compliance, and security measures, prioritising audit activities based on risk assessments and the criticality of high-value goods in the Group’s logistics operations. To this end, the Group intends to conduct a comprehensive formal risk assessment and mapping specific to the Group operations, identifying potential risks related to the transportation, handling, and storage of high-value goods and customs brokerage activities. The Group intends to implement audit procedures, including testing controls, reviews of processes, and verification of compliance with policies and regulations. In accordance with these procedures, the Executive Management Team and the Board will be provided with regular and detailed reports, highlighting findings, recommendations, and areas requiring improvement. Implementation of the audit recommendations shall be monitored and it shall be verified that corrective actions have been taken. The Group is aware that enhancing investment in technology and tools that facilitate risk assessment, data analysis, and audit procedures is paramount to an effective internal audit process. For example, the Group already uses Thomson Reuters for a comprehensive sanction ownership check. The digital transformation of the Group will also allow more consistency of systems in the Group and facilitate controls. Risks relating to the Group’s financial position Foreign exchange rate The Group is exposed to risks related to changes in currency exchange rates due to the international nature of the Group’s business. A significant portion of the Group’s business is conducted by subsidiaries in currencies other than the euro, including CHF, USD, HKD, AED, GBP, INR and CNY. Accordingly, the Group’s results of operations are subject to currency effects, primarily currency translation exposure. The results of operations, assets and liabilities of these subsidiaries must be translated into euro at each balance sheet date. As a result, changes in the relevant exchange rates between the euro and other currencies to which the Group is exposed, particularly the CHF, USD, HKD, AED, GBP, INR and CNY, may significantly affect the Page 20 of 139 Group’s reported results over the period under review and could materially affect its reported results of operations and the value of its assets and liabilities in future periods. The Group further earns revenue and incurs expenses in currencies other than the euro. Net currency exposure from revenue or expenses denominated in foreign currencies arises to the extent that the Group does not incur corresponding expenses or revenue in the same foreign currencies. The Group hedges currency transaction risks by offsetting opposing cash flows (natural hedging), and does not use derivative hedges. These efforts may have a material adverse effect on the Group’s business, financial condition, results of operations or prospects. Inflation The Group could be considered indirect/fixed costs. This includes mainly the costs for labour, insurance expenses, and legal and administrative consultancy fees. Such costs could increase due to inflation. Such increases in indirect/fixed costs can only be reflected in the prices which the Group charges its customers, once the agreements with the customers are being renegotiated. The terms of customer contracts differ per customer. Direct quotations and requests for quotations are used to determine the tariffs, generally for a term of three to five years. While it is possible to negotiate different tariffs with customers during this period, and while customers have not been particularly opposed to account for inflation in the prices, the Group might choose not to do so, in order to maintain a continuous relationship with the customer, especially when the variation in rates is insignificant. While the Group has strong negotiation capabilities concerning increased costs and it ensures that its margins are sufficiently strong to handle temporary increases in costs, the Group cannot guarantee that it would be able to negotiate an appropriate price increase with customers. In some jurisdictions, the Group might be compelled to keep its prices competitive to avoid losing market share to regional or local competitors. Until such time, or depending on the outcome of contract negotiations with the Group’s customers for a longer period, the Group will have to bear the burden of cost increases due to inflation, in the form of higher operating costs and expenses. Such delay in the increase of prices due to rising costs can result in reduced profitability, and, therefore, have a material and adverse effect on the Group’s business, financial condition, results of operations or prospects. The risk described above would be especially relevant for the Group’s operations in jurisdictions with mandatory rules for the annual review of salaries linked to inflation, where inflation compensating measures are typically provided for in employment contracts. In order to attract and maintain workers in countries where regular salary reviews are common practice, competition for skilled workers is high and people are relatively more likely to change jobs and seek new professional opportunities, inflation compensation measures are also adopted, even in the absence of specific legal requirements. ** This report was approved by the board of directors on April 30, 2025 and signed on behalf of the board by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Page 21 of 139 Corporate Governance Report The Company acknowledges the importance of good corporate governance and therefore voluntarily applies the Dutch Corporate Governance Code of 20 December 2022 (Dutch Governance Code), the full text of which can be found on https://www.mccg.nl/. The Company fully endorses the underlying principles of the Dutch Governance Code and complies with relevant best practice provisions of the Dutch Governance Code in a manner consistent with and proportionate to the size, risks and complexity of the Group’s operations. The Dutch Governance Code has applied since Admission in February 2025 and the Group is still fully embedding the principles and developing its responses to the provisions. Deviations from any of the principles and best practice provisions of the Code are explained under the section “Compliance with the Dutch Governance Code” in this Corporate Governance Report, in accordance with the Dutch Governance Code’s “comply or explain” principle. Substantial changes in the Company’s corporate governance structure and in the Company’s compliance with the Dutch Governance Code, if any, will be dealt with at the annual general meeting of the Company (General Meeting) held each year within six (6) months after the end of the Company’s financial year (Annual General Meeting) as a separate item. This Annual Report for the financial year ended on 31 December 2024 also includes the information that the Company is required to disclose pursuant to the Dutch Decree on the content of the Board Report (Besluit inhoud bestuursverslag). Governance overview The Company is a public limited company registered in England and Wales with the legal name Ferrari Group PLC. The Company is the holding company of the Ferrari Group. The Board is responsible for the continuity of the Company and its subsidiaries. The Directors are responsible for the Company’s affairs and have the authority to oversee the day-to-day management, formulate strategies and policies, and set and implement the Company’s objectives. The Directors focus on sustainable long-term value creation for the Company and the Group Companies, thereby considering the interests of all its subsidiaries and how Group- wide strategies and policies contribute to the interest of each subsidiary and the interest of the Group as a whole over the long term. The non-executive Directors (Non-Executive Directors) shall in particular have regard to and supervise the manner in which the executive Directors (Executive Directors) implement the sustainable long-term value creation strategy and regularly discuss the strategy, the implementation of the strategy and the principal risks associated with it. The Board and Executive Management Team The Board is comprised of four Executive Directors and four Non-Executive Directors. The principal duties of the Board are to provide the Company’s strategic leadership, to determine the fundamental management policies of the Company and to oversee the performance of the Company’s business. The Executive Directors are primarily charged with the Company's day-to-day operations and the Non-Executive Directors are primarily charged with the supervision of the performance of the duties of the Directors. In performing their duties, Directors are required to act in the best interests of the Company and shall be guided by the interest of the Company and the business connected with it. The Board is the principal decision-making body for all matters that are significant to the Company, whether in terms of their strategic, financial or reputational implications. The Board has final authority to decide on all issues save for those which are specifically reserved to a General Meeting by law or by the Company’s articles of association (the Articles of Association). Page 22 of 139 The Board has adopted rules governing its principles and best practices, division of tasks and responsibilities between the members of the Board, description of specific responsibilities for the chair of the Board and further details on procedures for holding meetings, decision making and overall functioning of the Board, including maintaining internal governance arrangements, processes and mechanisms that are consistent, well-integrated and conducive to the alignment of the respective business objectives, strategies and risk management framework of the Company and its Group (the Board Rules). Pursuant to the Board Rules, each Executive Director shall retire from office at the annual General Meeting in each calendar year after his or her appointment and may be reappointed for any number of subsequent terms. Each Non-Executive Director shall retire from office at the annual General Meeting in each calendar year after his or her appointment and may be reappointed for a maximum of eleven (11) subsequent one- year terms. Day-to-day operating decisions are made by the Executive Management Team. The Executive Management Team of the Group consists of six members, including the Executive Directors, who each oversee a specific aspect of the business. During the financial year 2024, the Board comprised only of the current Executive Directors. As of the admission to listing and trading of all the ordinary shares in the capital of the Company with a nominal value of €1.00 each (Ordinary Shares) on Euronext Amsterdam on 13 February 2025 (the Admission), four Non- Executive Directors have been appointed to the Board, all of whom are independent within the meaning of the Dutch Governance Code. As at the date of this report, the Board is comprised as follows: Name Age Nationality Position Date of initial appointment Term Marco Deiana 54 Italian Executive Director, Chief Executive Officer 29 April 2021 One year Corrado Deiana 48 Italian Executive Director, Chief Operating Officer Europe 29 April 2021 One year Alessandro Nicolo’ Ugo 44 Italian Executive Director, Group Chief Financial Officer 20 May 2020 One year Maria Isabella La Forgia 44 Italian Executive Director, Group General Counsel 29 April 2021 One year Nigel Richard Paxman 66 United Kingdom Non-Executive Director, chair of the Board 13 February 2025 One year Monica Belfiore 44 Italian Non-Executive Director 13 February 2025 One year Leslie A. Serrero 50 French Non-Executive Director 13 February 2025 One year Maria Rita Megre de Sousa Coutinho 50 Portuguese Non-Executive Director 13 February 2025 One year Antonio Giuliano Castagnetti 64 Italian Company Secretary 9 February 2024 One year Page 23 of 139 Biographical details of the Directors Marco Deiana – Executive Director Marco Deiana is the CEO of the Company. He joined the Group as an employee in the operations department (export/import) of Ferrari S.p.A. in 2000, when he was still a student at the University of Pavia. He served as a customs broker in the customs department of Ferrari S.p.A. from 2004 to 2006, and from 2006 to 2010, Marco Deiana served as the chief financial officer of Ferrari S.p.A., leading its Administration and Accounting department. By 2010, he ascended to the position of CEO of Ferrari S.p.A., where he steered the development and expansion of the Group. In 2016, Marco Deiana was appointed as CEO of Ferrari Group LTD, the former holding company of the Group. He has been registered in the Italian national register of customs brokers (Albo Doganalisti) since 2006 and has been on the Italian national register of freight forwarders (Albo Autotrasportatori) since 2008. He also received a master’s degree in Economics and Business Administration from the University of Pavia, Italy in 2000. Corrado Deiana – Executive Director Corrado Deiana is currently the Chief Operating Officer Europe of the Company. He joined the Group in 2002, immediately before completing his studies. He started his career in Italy as a sales executive and customs broker. He then became more involved in the international dimensions of the business, overseeing commercial relationships with global luxury groups, and splitting his time among Paris, Lugano, and Monaco. In 2010, he was appointed president of the Swiss branch, Ferrari Expéditions S.A. in Lugano. He also assumed the role of president at the French branch, Ferrari Expéditions SA in Paris — a position he continues to hold today. Corrado Deiana received a master’s degree in Political Science from University of Alessandria, Italy in 2003. Alessandro Nicolo’ Ugo – Executive Director Alessandro Nicolo’ Ugo, who is currently the Group Chief Financial Officer of the Company, joined the Group in 2016 as the executive director of Ferrari Group LTD. Alessandro Nicolo’ Ugo began his professional career as a junior auditor at Baker Tilly Consulaudit in Italy. In subsequent years, he worked independently, offering management consulting services. At that time, the Group was one of Alessandro Nicolo’ Ugo’s clients. This collaboration eventually led to him joining the Group on a permanent basis in 2016 as director. Alessandro Nicolo’ Ugo received an Economic and Business administration degree from Università di Genova, Italy in 2003. He further attended the IFAF School of finance in Milan, Italy, from where he graduated in 2004. Maria Isabella La Forgia – Executive Director Maria Isabella La Forgia, who currently serves as Group General Counsel of the Company, joined the Group in 2018 as head of the legal department. On 29 April 2021, she was appointed to her role as Executive Director. Before joining the Group, Maria Isabella La Forgia was senior associate at the law firms Gianni Origoni Grippo and Partners in London, UK, between 2004 and 2007 and at Macchi di Cellere Gangemi, in Rome, Italy, from 2007 to 2018. She received a law degree with the distinction cum laude from Università degli Studi di Bari, Italy in 2003. She also completed an LLM with merit at the London School of Economics and Political Science in London, UK in 2005 and was admitted to the Italian bar in 2007. She was admitted as a solicitor of England and Wales in April 2024. Page 24 of 139 Nigel Richard Paxman – Non-Executive Director Nigel Richard Paxman, who serves as Non-Executive Director and chair of the Board, is an experienced senior executive in the insurance and risk management industry. He began his career as a Specialist Specie Underwriter at Lloyd’s of London in 1986, later becoming Syndicate Head Underwriter from 1997 to 2001. Following the syndicate’s merger in 2001, he transitioned to Malca-Amit Group, where he held senior management roles from 2002 and was appointed CEO in 2008, a position he held until 2020. Since 2020, he has served as Chief Operating Officer at Lloyd’s insurance brokerage. In addition to his executive roles, he was a Non-Executive Director of MALCAN Insurance Ltd (Guernsey) between 2009 and 2025 and was a board member of the World Diamond Council from 2013 to 2020. He completed seven modules at the Chartered Insurance Institute between 1977 and 1982. His educational background includes studies at Wycliffe College. Monica Belfiore – Non-Executive Director Monica Belfiore, who serves as Non-Executive Director, has experience in the financial sector. Prior to joining the Company, she worked for Deloitte & Touche S.p.A. as a senior auditor from 2005 to 2013. From September 2013 until April 2014, she worked at Ferrero UK Ltd as a sales controlling manager. She then joined Mast Jägermeister UK Ltd as commercial finance manager, where she worked for two years. Since 2016, Monica Belfiore has been working at Giorgio Armani Retail Srl, where she was appointed as the head of finance in September 2021. Monica Belfiore received her master’s degree in economics from the University of Turin in 2005. Leslie A. Serrero – Non-Executive Director Leslie Serrero, who serves as Non-Executive Director, is an experienced international senior executive in the high-end luxury sector. She started out as a management trainee at Groupe Louise Dreyfus from 1996 to 1997, followed by a position as strategic planning attaché for Groupe Lagardere in 1998. Between 1998 and 2001, Leslie Serrero was a financial analyst and six sigma consultant at General Electric, GXS. She continued her career as project leader at The Boston Consulting Group from 2003 to 2009. In 2009 Leslie Serrero was appointed executive vice president – strategic marketing at Lacoste S.A. and in 2012 she made the switch into the high-end luxury sector as chief marketing officer of LVMH / Christian Dior Couture, before becoming managing director of LVMH / Fendi France in 2019. Since 2022, Leslie Serrero is active as international managing director of Casa Komos Brands Group. She also held various board seats since 2017. Leslie Serrero graduated with honours in management from the Université Paris IX Dauphine in Paris, France in 1995 and received an MA in business administration from ESSEC Graduate School of Business in Cergy Pontoise, France in 1997, before obtaining her MBA from Harvard Business School in 2003. Maria Rita Megre de Sousa Coutinho – Non-Executive Director Maria Rita Megre de Sousa Coutinho, or Rita Sousa Coutinho, who serves as Non-Executive Director, has more than 25 years of professional work experience. During her corporate experience as an executive, she led several departments (such as marketing, commercial, strategic projects, operations, and business development), and business units (such as e-commerce, food, and non-food retail operations) at retailers such as Jeronimo Martins Group, Casino Groupe, and Walmart. She is Founder and CEO of Categorical World, and she is a non-executive board member at Banco CTT SA, Americanas SA, and Fairtrade International. She is also a member of the International Advisory Board of Catolica Lisbon. Rita Sousa Coutinho graduated in Management and Business Administration at Catolica Lisbon School of Business & Economics, Portugal in 1997, obtained her MBA from INSEAD in 2001 and participated at the Advanced Page 25 of 139 Management Program in 2012 as well as at the Women on Boards – Succeeding as a Corporate Director Program in 2016, both from Harvard Business School. Board committees For the financial year ended 31 December 2024 the Board did not have any committees. In connection with, and as from, the Admission, the Board has established an audit committee, a remuneration committee and a selection and nomination committee, consisting of Non-Executive Directors only. Each committee is subject to its own terms of reference approved and adopted by the Board, copies of which are published on the Corporate Policies page on the Company’s website. Details on the committees are set out below. Audit Committee The audit committee prepares the Board's decision-making on the supervision of the integrity and quality of the Company's financial and sustainability reporting and the effectiveness of the Company's internal risk management and control systems as referred to in best practice provisions 1.2.1 through 1.2.3 (inclusive) of the Dutch Governance Code. The audit committee comprises of three Non-Executive Directors: Monica Belfiore, as chairperson of the audit committee, Nigel Richard Paxman and Leslie A. Serrero. All members, including the chairperson of the audit committee, meet the requirements of members of the committee pursuant to the terms of reference of the audit committee. Remuneration Committee The remuneration committee advises the Board in relation to its responsibilities regarding the determination of the remuneration of Directors. The remuneration committee is tasked with submitting a clear and understandable proposal to the Board concerning the remuneration policy to be adopted. The remuneration report should describe, in a transparent manner, inter alia: (i) how the remuneration policy has been implemented in the previous financial year; (ii) how the implementation of the remuneration policy contributes to sustainable long-term value creation of the Company; and (iii) the pay ratios within the Company and its business and, if applicable, any changes in these ratios in comparison with the previous financial year. The remuneration committee is chaired by Maria Rita Megre de Sousa Coutinho and its members are Monica Belfiore and Nigel Richard Paxman. All members, including the chairperson of the remuneration committee, meet the requirements of members of the committee pursuant to the terms of reference of the remuneration committee. Selection and Nomination Committee The selection and nomination committee assists the Board in reviewing the size and composition of the Board and proposes appointments and reappointments. It periodically assesses the functioning of individual Directors and is also responsible for drawing up plans for the succession of Directors. The selection and nomination committee is chaired by Leslie A. Serrero and its members are Maria Rita Megre de Sousa Coutinho and Monica Belfiore. All members, including the chairperson of the selection and nomination committee, meet the requirements of members of the committee pursuant to the terms of reference of the selection and nomination committee. Page 26 of 139 The General Meeting The Company holds at least one General Meeting each year, within a period of six months following the end of a financial year. The notice of a General Meeting will state the time, date and place of the meeting and the general nature of the business to be dealt with, and whether the meeting will be held as a physical meeting or hybrid meeting. An annual General Meeting shall be called by at least 21 clear days’ notice. Subject to the provisions of the UK Companies Act, all other General Meetings may be called by at least 14 clear days’ notice. The UK Companies Act requires the Board, if it receives a written requisition from shareholder(s) representing at least 5% of the paid up share capital of the Company which carries the right of voting at General Meetings (Requisitioners) to, within 21 days, call a General Meeting of shareholders or a meeting of the holders of that class of shares, as applicable, to be held as soon as practicable and in any event not later than 28 days after the date of the notice convening the meeting. The requisition must state the business to be considered at the meeting, must be signed by or on behalf of the Requisitioners, and must be submitted to the Company’s registered office. Under the Articles of Association, all resolutions at General Meetings must be decided on a poll, unless the chair of the meeting decides otherwise. On a poll, each shareholder presents in person or by proxy is entitled to one vote for each Ordinary Share held in the name of the shareholder on record at the relevant record date of the meeting. An ordinary resolution proposed at a General Meeting requires the approval by a simple majority of the voting rights represented in person or by proxy at the meeting, unless the UK Companies Act or the Articles of Association require otherwise. Internal controls and risk management The Board has overall responsibility for the Group’s system of internal controls and risk management. The Directors believe that the Group has internal control systems in place appropriate to the size and nature of the business. The internal risk management and control systems are further described on page 16 (paragraph “Principal risks and uncertainties”), including a description of the main risks the Company is facing. Conflicts of interest and related party transactions Conflicts of interest Conflicts of interest are governed by both the UK Companies Act and the Dutch Governance Code. The Articles of Association in combination with the Board Rules (available on the Company’s website (www.ferrarigroup.net) provide for rules and measures applicable to the Board to ensure compliance with both sets of rules and to prevent conflicts of interest between the Directors and the Company. Each of the Directors has a duty to avoid conflicts of interest with the Company and to disclose the nature and extent of any such interest to the Board. If a situation (a Relevant Situation) arises in which a Director has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the Company but which does not arise in relation to a transaction or arrangement with the Company, the Director must declare the nature and extent of his or her interest to the other Directors and the Directors Page 27 of 139 (other than the Director, and any other Director with a similar interest, who shall not be counted in the quorum at the meeting and shall not vote on the resolution) or a committee thereof may: (i) if the Relevant Situation arises from the appointment or proposed appointment of a person as a Director of the Company, resolve to authorise the appointment of the Director and the Relevant Situation on such terms as they may determine; and (ii) if the Relevant Situation arises in other circumstances, resolve to authorise the Relevant Situation and the continuing performance by the Director of his or her duties on such terms as they may determine. If a Director is in any way, directly or indirectly, interested in a proposed or an existing transaction or arrangement with the Company, he or she must declare the nature and extent of that interest to the other Directors. Similarly, the Dutch Governance Code requires the Directors to avoid any form of conflict of interest with the Company and the Directors and to immediately report any (potential) conflict of interest to the Chair under provision of all relevant information. In the financial year ended on 31 December 2024, there were no material transactions made in which there was a conflict of interest. Between the end of the financial year and the date of this report, a conflict may have arisen between the interests of (i) each of Marco Deiana and Corrado Deiana as the shareholders of Deiana Holding Limited and as Executive Directors; and (ii) the interests of Alessandro Nicolo’ Ugo and Maria Isabella La Forgia as directors of Deiana Holding Limited and as Executive Directors, when entering into the relationship agreement, as further described under section “Relationship Agreement” on page 28. Best practice provisions 2.7.3 ad 2.7.4 of the Dutch Governance Code have been complied with in relation to the material transaction in which there are conflicts of interest that took place in the financial year ended 31 December 2024 up to the date of this report. Related party transactions Neither the Dutch nor the UK rules on related party transactions mandatorily apply to the Company. The Company has adopted a written related party transaction policy. The related party transaction policy in the governing English language, as well as the Board Rules in the governing English language, are available on the Company’s website (www.ferrarigroup.net). The Company acknowledges the importance of ensuring that related party transactions shall be at arm’s length and shall be dealt with in accordance with the applicable legal framework. As such, the related party transaction policy sets out rules on related party transactions that are the reflection of (a) the Dutch statutory provisions on related party transactions, which section implements the provisions regarding related party transactions of Directive (EU) 2017/828 as regards the encouragement of long-term shareholder engagement and (b) best practice provision 2.7.5 of the Dutch Governance Code as regards transactions of material significance to the Company and/or the related party. The related party transaction policy provides that material transactions between the Company (or a subsidiary of the Company) and a related party require prior approval of the Non-Executive Directors, including a vote in favour of such approval by a majority of the Non-Executive Directors who are independent within the meaning of the Dutch Governance Code participating in the deliberations and decision-making regarding the approval of such transaction. Transactions (i) having as scope the provision of services and (ii) the value of which is less than €50,000 will in any event not require such prior approval. For the purpose hereof, the value shall have to be determined, in the light of the OECD Transfer Pricing Guidelines’ principles, as the sum of (i) direct costs of the employed human resources to render such service, (ii) forfeited indirect costs and G&A Page 28 of 139 expenses in the amount of an additional 10% of the direct costs as above and (iii) an additional net cost plus mark up of 5% applied to the sum of the costs under points (i) and (ii). In the financial year ended 31 December 2024, the Company or its subsidiaries have not entered into any material related party transactions. Between the end of the financial year and the date of this report, the following material related party transaction took place. Relationship Agreement The Company entered into the relationship agreement with Deiana Holding Limited on 6 February 2025 (Relationship Agreement). The Relationship Agreement regulates the ongoing relationship between the Company and Deiana Holding Limited. Under the Relationship Agreement, for so long as Deiana Holding Limited and/or any member of its group holds in aggregate between them (i) more than twenty (20) per cent. of the Ordinary Shares, Deiana Holding Limited shall be entitled to nominate for appointment two Non-Executive Directors; and (ii) twenty (20) per cent. or less, but more than ten (10) per cent., Deiana Holding Limited shall only be entitled to nominate for appointment one Non-Executive Director. Deiana Holding Limited has the right to remove any director that it has appointed at any time. The Relationship Agreement contains undertakings from Deiana Holding Limited, that, among other things, it will and procure that each of its affiliates will: (i) conduct transactions and arrangements with the Company and the Group on an arm’s length basis and on normal commercial terms; (ii) not take any action that would have the effect of preventing the Company or the Group from complying with its obligations under the EU Market Abuse Regulation or the Dutch Governance Code; (iii) not take any actions which are intended to preclude or inhibit the Company or the Group from acting independently from Deiana Holding Limited and its affiliates; and (iv) not propose or procure the proposal of any shareholder resolution which is intended or appears to circumvent the EU Market Abuse Regulation or the Dutch Governance Code. Under the Relationship Agreement, the Company has agreed to cooperate with Deiana Holding Limited in relation to any sale of a block of Ordinary Shares constituting ten (10) per cent or more of the Ordinary Shares held by Deiana Holding Limited from time to time. For so long as Deiana Holding Limited has appointed Directors on the Board or it holds ten (10) per cent. or more of the Ordinary Shares, Deiana Holding Limited shall not be entitled to execute any disposal or transfer of Ordinary Shares except in a manner that is reasonably designed to minimise disruption in the underlying price of the Ordinary Shares. Deiana Holding Limited has also agreed to be subject to a lock-up arrangement pursuant to which it undertakes that it will not directly or indirectly dispose of its Ordinary Shares for a period of 365 days from the Admission. The Relationship Agreement provides that any director appointed to the Board by Deiana Holding Limited shall be entitled to fully participate in proceedings of the Board. In the event that any matter arises which does or could, in the reasonable opinion of the audit committee, give rise to a potential conflict between any member of the Group on the one hand and Deiana Holding Limited or any of its subsidiaries on the other hand, such matter must be approved by the Non-Executive Directors, including a vote in favour of such approval by a majority of the Non-Executive Directors who are independent withing the meaning of the Dutch Governance Code participating in the deliberations and decision-making regarding the approval of such matter. Page 29 of 139 Subject to legal and regulatory requirements, for so long as Deiana Holding Limited holds or controls, directly or indirectly, not less than twenty (20) per cent. of the Ordinary Shares or Deiana Holding Limited has significant influence in relation to the Company, Deiana Holding Limited has the right to be supplied with certain financial information concerning the Company and the Group provided that such information is required by Deiana Holding Limited for the purposes of any reporting requirements (including, without limitation, accounting and tax reporting). Subject to certain exceptions, the Relationship Agreement will terminate on the earlier of (i) the Ordinary Shares ceasing to be admitted to trading on Euronext Amsterdam or (ii) the aggregate issued share capital of the Company owned or controlled (directly or indirectly) by Deiana Holding Limited or any of its subsidiaries falls below ten (10) per cent. Any information provided to Deiana Holding Limited or any of the Directors it appoints to the Board will be subject to customary confidentiality obligations contained in the Relationship Agreement. Any term, covenant, representation, warranty or condition in the Relationship Agreement, including in relation to the lock-up arrangement, may be waived by the party to the Relationship Agreement benefiting of such term, covenant, representation, warranty or condition by a notice signed by such party waiving compliance. The Relationship Agreement is governed by the laws of England and Wales. Best practice provision 2.7.5 of the Dutch Governance Code has been complied with in relation to the material related party transaction that took place in the financial year ended 31 December 2024 up to the date of this report. Diversity and inclusion policy The Company has adopted a diversity and inclusion policy in February 2025, in respect, inter alia, of specific diversity targets to promote diversity within the Board, including striving for a more gender-balanced Board such that at least one-third of the Executive Directors and 40% of the Non-Executive Directors will comprise of the underrepresented gender by the end of 2025. The diversity and inclusion policy is published on the Corporate Policies page on the Company’s website. The Group considers diversity as a key strength for a successful business. The Group seeks to promote diversity and eliminate any type of discrimination and strives to ensure equal opportunities for all employees in all organisational activities, regardless of age, disability, gender, sexual orientation marital or civil partner status, respecting the wide range of race, ethnicities, colour, religion or belief, nationality and cultural backgrounds present in the Group. The Group’s efforts to achieve the set targets are further described in the “Social and governance” section of the Group’s ESG strategy on page 9. Culture, values and code of conduct The Company also adopted a code of conduct in February 2025, which sets out the principles and ethical values to which the Group abides in carrying out its activities, and of which it claims the most rigorous observance of all parties to which this code of conduct applies. The code of conduct can be found on the Corporate Policies page on the Company’s website and extends to the subsidiaries of the Company, and applies to their employees, including temporary staff and people who are working with the Group on a contractual basis, persons who hold managerial positions with the Group, those who cooperate or collaborate with the Group and anyone who has a commercial relationship with the Group. The Board monitors the effectiveness of and compliance with the code of conduct, on the part of both itself and the employees of the Group. The Group sanctions violations of the code of conduct, in compliance with Page 30 of 139 the provisions in force concerning employment relationships. Compliance with the principles of the code of conduct constitutes an essential element of the contractual obligations undertaken by all those who have business relationships with the Group. As a result, the violation of the provisions of this Code of Conduct shall constitute breach of contract, with all the legal consequences with regard to the termination of the contract and the resulting compensation for damage caused. Sustainable long-term value creation A detailed explanation of the Board’s view on sustainable long-term value creation and the strategy for its realization, also describing which contributions were made to sustainable long-term value creation in the past financial year, as well as both the short-term and long-term developments are included in the Strategic Report on pages 6 - 7 - 8 (paragraphs “Strategy” and “Environmental, Social and Governance”). Anti-takeover measures The Company currently has no anti-takeover measures in place. In control statement In accordance with best practice provision 1.4.3 of the Dutch Governance Code, the Board states that: i. the report provides sufficient insights into any failures in the effectiveness of the internal risk management and control systems; ii. the aforementioned systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies; iii. based on the current state of affairs, it is justified that the financial reporting is prepared on a going concern basis; and iv. the report provides information on those material risks and uncertainties that are relevant to the expectation of the Company’s continuity for a period of 12 months after the preparation of this report. With reference to Section 5:25c paragraph 2 sub c of the Dutch Financial Supervision Act, and based on the audit of the financial statements by the external auditor, the Board states that, to the best of their knowledge: i. the financial statements as included in this report provide a true and fair representation of the assets, liabilities and the financial position as at 31 December 2024, as well as the profit for the financial year 2024 of the Company and the companies included in the consolidation; and ii. the Annual Report provides a true representation of the situation on 31 December 2024 and the course of business at the Company and at companies included in the consolidation for the financial year 2024 and the Annual Report includes a description of the material risks the Company faces. Page 31 of 139 Compliance with the Dutch Governance Code The Company acknowledges the importance of good corporate governance. The Company fully endorses the underlying principles of the Dutch Governance Code and applies the Dutch Governance Code as the guiding principles for its corporate governance policy. The Company complies with relevant best practice provisions of the Dutch Governance Code. The current deviations from the Dutch Governance Code are noted below, including an explanation for each deviation: • Best practice provision 1.3 of the Dutch Governance Code: Given the size of the Company and the functioning of its corporate bodies, the Board does not consider it opportune at this stage to appoint an internal auditor or to set up a separate audit department. However, this is remedied by certain financial and operational audit activities carried out by internal and/or external parties (other than the statutory audit by the Independent Auditors) on an ad hoc basis. The Group is considering several steps for the enhancement of its risk management and the effective establishment of a formal internal audit function, and is currently selecting an external counsel to assist with this process. • Best practice provision 2.2.4 of the Dutch Governance Code: The Company does not have a retirement schedule as referred to in best practice provision 2.2.4 of the Dutch Governance Code, because the Articles of Association provide for a term of office of members of the Board for a period of approximately one year after appointment, such period expiring on the day the first annual General Meeting is held in the following calendar year. As the Company is incorporated under the laws of England and Wales, the Company also follows certain common UK governance practices, one of which is the reappointment of its Directors at each annual General Meeting. In light of this term of office, the Company does not have a retirement schedule in place. • Best practice provision 5.1.1 of the Dutch Governance Code: As of 6 February 2025, the Board is comprised of four (4) Executive Directors and four (4) independent Non-Executive Directors, thereby deviating from best practice provision 5.1.1 of the Dutch Governance Code. The Company intends to comply with this best practice provision as soon as practicable, by appointing an additional Non-Executive Director. As at the date of this report, the Company is in active discussions with a candidate for the position of Non-Executive Director who is expected to be independent within the meaning of the Dutch Governance Code. Corporate Governance Statement Pursuant to the Dutch Decree on the Content of the Board Report, the Company is required to publish a statement concerning its approach to corporate governance and compliance with the Dutch Governance Code. The information required to be included in this statement can be found in the following sections of this Annual Report: • The information concerning compliance with the Dutch Governance Code is set out under the section “Compliance with the Dutch Governance Code” in this Corporate Governance Report. • The information concerning the Company’s internal risk management and control systems relating to the financial reporting process is set out under the section “Principal risks and uncertainties” of Page 32 of 139 the Strategic Report and the sections “Audit committee” and “Internal controls and risk management” in this Corporate Governance Report. • The information concerning the functioning of the general meeting and its powers and rights is set out under the section “The General Meeting” in this Corporate Governance Report. • The information concerning the composition and functioning of the Board and its committees is set out under the sections “The Board and Executive Management Team” and “Board committees” in this Corporate Governance Report. • The information concerning the Company’s diversity and inclusion policy is set out under the section “Diversity and inclusion policy” in this Corporate Governance Report. • The information concerning the inclusion of the information required by the Dutch Decree on Article 10 of the Takeover Directive is set out under the section “Anti-takeover measures” in this Corporate Governance Report. S172 Statement within our Annual Report 2024 The Board follows a structured approach to governance, underpinned by formally defined responsibilities for both the Board and its committees. Internally defined strategic thresholds help determine which matters are escalated for Board-level input or approval. Each Director approaches decision-making with integrity and the intention of advancing the long-term success of the Group for the benefit of shareholders, whilst having regard to factors set out below. In doing so, they give due consideration to various key factors, including but not limited to: The likely consequences of any decision in the long term; Considering and embedding anticipated long- term impact and consequences of decisions, particularly focusing on securing and ensuring an efficient handling of luxury goods is key to decision making. The “delivering, solving and evolving” approach is central to the governance of the business and how the Directors view their responsibilities to the Group and all stakeholders. The interests of the Group’s employees; The Board acknowledges the importance of preserving the interests of the Group’s employees by (i) Ensuring the preservation of global interests by periodically reviewing the key Group policies applicable to all 2,082 employees of which 1,514 Men and 568 Women; (ii) ensuring regional interests are considered and preserved through periodical meetings with key representatives of each region (Country Managers). The need to foster the company’s business relationships with suppliers, customers and others; The Board recognizes the importance of building strong relationships with its suppliers, customers and key stakeholders and engages with them throughout events, periodical and recurring meetings. In promoting the success of the Group, Directors consider and have regard to the impact of the company’s operations on the community and the environment; The Board has approved a Group Environmental policy aimed to limit the environmental impact of the business, wherever feasibly possible, and maintain awareness of the aspects of the Group’s operations that can have an impact on the environments- Page 33 of 139 The desirability of the company maintaining a reputation for high standards of business conduct; Reviewing on a periodical basis the Group’s Anti-Bribery Policy, Code of Ethics and Suppliers Code of Conduct supports the Board in ensuring high standards are maintained both within the Group and throughout its business relationships. Directors also acknowledge the need to act fairly with members of the Group, whilst promoting the success of the company. In 2025, the new Board of Directors, is working on refining its strategy in line with these requirements and the factors outlined below. To ensure that S172 considerations are embedded within the operations, the Group has ensured regular Board discussions focused on long-term value creation and transparent reporting through the ESG annual disclosure (forthcoming, Sustainability Annual Report 2024) and operational performance metrics. Page 34 of 139 Non-Executive Director’s report As the Non-Executive Directors were appointed in 2025, conditional upon the Admission, the Company had no non-executive directors or supervisory board during the financial year ended 31 December 2024. Therefore, this Non-Executive Director’s report cannot render account of any supervision by the Non- Executive Directors conducted in the financial year ended 31 December 2024, as referred to in best practice provision 2.3.11 of the Dutch Governance Code. For the avoidance of doubt, the Dutch Governance Code did not apply to the Company during the financial year ended 31 December 2024. With a view to maintaining supervision of the Company, the Non-Executive Directors regularly discuss the Company’s long-term business plans, the implementation of such plans and the risks associated with such plans with the Executive Directors. Details of the current composition of the Board, including the Non-Executive Directors, are set out in the section “The Board and Executive Management Team” on page 21. Supervision by the Non-Executive Directors The responsibilities of the Non-Executive Directors include supervising the manner in which the Board implements the sustainable long-term value creation strategy and discussing on a regular basis the strategy, the implementation of the strategy and the principal risks associated with it, whereby the Board as a whole should be engaged early on in formulating the strategy for realising sustainable long-term value creation. The Board may allocate certain specific responsibilities to one or more individual Directors or to a committee comprised of eligible Directors. In this respect, the Board has allocated certain specific responsibilities to the audit committee, the remuneration committee and the selection and nomination committee. Meetings of the Board and its committees Non-Executive Directors are expected to (remotely or physically) attend Board meetings and the meetings of the committees of which they are members. If a Non-Executive Director is frequently absent at such meetings, he or she shall be held accountable by the Board. The Non-executive Directors did not attend any Board meetings or meetings of any committees of the Board in the financial year ended 31 December 2024, as their appointment and the establishment of the committees took place in 2025. Independence of the Non-Executive Directors The best practice provisions 2.1.7 – 2.1.9 of the Dutch Governance Code provide certain independence requirements for the composition of the Board and individual Non-Executive Directors. The composition of the Board shall be such that the Non-Executive Directors are able to operate independently and critically vis-à-vis one another, the Executive Directors and any particular interests involved. The Dutch Governance Code provides seven criteria for determining the independence of Non-Executive Directors. At most one Non-Executive Director should meet any of the criteria referred to in best practice provision 2.1.8(i)-(v), the total number of Non-Executive Directors to whom the criteria referred to in best practice provision 2.1.8(i)- (vii) apply, should account for less than half of the total number of Non-Executive Directors, and for each shareholder holding more than 10% of the Ordinary Shares, there may be at most one affiliated Non- Page 35 of 139 Executive Director, as referred to in best practice provision 2.1.8(vi) and (vii). In addition, the chairperson of the Board should be independent within the meaning of the Dutch Governance Code. The Board considers all Non-Executive Directors independent within the meaning of the Dutch Governance Code. Therefore, in the opinion of the Non-Executive Directors, the independence requirements referred to in best practice provision 2.1.7 – 2.1.9 have been fulfilled. Evaluation of the Board In accordance with the Dutch Governance Code and the Board Rules, the Board evaluates at least annually – outside the presence of the Executive Directors – the functioning of the Board, its committees and the functioning of the individual Directors. The Non-Executive Directors discuss the conclusions of such evaluations, and identify aspects where the Directors require further training or education. Each Director must be able to express their views confidentially during such evaluation. When performing the annual evaluation, the Non-Executive Directors at least consider: • substantive aspects, conduct and culture, the mutual interaction and collaboration, and the interaction with the Executive Directors; • lessons learned from recent events; and • the desired profile, composition, competency and expertise of the Board. The evaluation takes place periodically under the supervision of an external expert. As the Non-Executive Directors were appointed after the end of the financial year ended on 31 December 2024, the Non-Executive Directors have not yet performed such evaluation. Internal audit function In deviation of principle 1.3 of the Dutch Governance Code, the Company has not appointed an internal auditor or set up a separate audit department for the performance of the internal audit function, given the size of the Company and the functioning of its corporate bodies. Please refer to the section “Compliance with the Dutch Governance Code” for more information about this deviation of the Dutch Governance Code, and to the section “Internal risk management and control systems” of the Strategic Report included in this Annual Report for more information on the Group’s considerations regarding the effective establishment of a formal internal audit function. Page 36 of 139 Directors’ Report The directors present their report together with the Consolidated financial statements for the Ferrari Group for the period ended at December 31, 2024. Results and dividends Pursuant to English law and the Articles of Association, the distribution of profits will take place following the adoption of the Company’s annual accounts by a General Meeting, from which the Company will determine whether such distribution is permitted. A General Meeting may approve distributions to the shareholders, whether from profits or from its freely distributable reserves, only insofar as its shareholders’ equity exceeds the sum of the paid-up and called-up share capital plus the reserves required to be maintained by English law or pursuant to the Articles of Association. Under the Articles of Association, the Board is given the authority to declare dividends subject to the provisions of the UK Companies Act and may, subject to certain restrictions, set a record date for a dividend or other distribution. No dividend shall exceed the amount recommended by the Board. The Consolidated statement of comprehensive income shows a net profit of Euro 57,297 thousand (Euro 56,900 thousand in 2023) and a total comprehensive income for the period of Euro 62,463 thousand (Euro 55,461 thousand in 2023). No interim dividend was declared during the year and the Directors recommend a final dividend for the year ended 31 December 2024 equal to Euro 25,000,000 (Euro 25,000,000 for the year ended 31 December 2023). Environment and sustainability As part of the Group’s commitment to environmental responsibility and compliance with the Streamlined Energy and Carbon Reporting (‘SECR’) framework, the Group has been collecting information on its energy consumption and carbon emissions. Although the Group qualifies as an low energy organisation which has consumed less than 40MWh in the UK during the period in respect of which the report is prepared. Directors The following Directors have held office during the financial year ended 31 December 2024: - Mr. Corrado Deiana - Mr. Marco Deiana - Mrs. Maria Isabella la Forgia - Mr. Alessandro Nicolò Ugo As from the Admission, on 13 February 2025, the Company appointed four Non-Executive Directors. The current composition of the Board is set out in the section “The Board and Executive Management Team” in the Corporate Governance Report of this Annual Report. As at 31 December 2024, other than as disclosed below under section “Major shareholders” of this Director’s Report, none of the Directors nor the Executive Management Team have a direct or indirect Page 37 of 139 interest in the Ordinary Shares (including beneficial interests and interests of persons connected with the Directors or members of the Executive Management Team). Directors indemnities There were no director indemnities provisions in the year. Major shareholders As at 31 December 2024, Deiana Holding Limited was the sole shareholder of the Company and held 100% of the Company’s issued ordinary share capital. Following the offering for sale by Deiana Holding Limited of part of its shareholding in the Company and the start of trading in the Ordinary Shares on Euronext Amsterdam on 13 February 2025, the shareholdings in the Company have changed. The following table sets out (i) the shareholders of the Company as at 31 December 2024 and (ii) the shareholders of the Company which, to the Company’s knowledge, directly or indirectly have a notifiable interest in the Company’s capital and voting rights within the meaning of the Dutch Financial Supervision Act as at April 28, 2025. Amount of share capital owned as at December 31, 2024 Amount of share capital owned as at April 28, 2025 Shareholder Number of Ordinary Shares % holding Number of Ordinary Shares % holding Deiana Holding Limited 77,045,804 100% 65,147,380 71.36% Alecta Tjänstepension Ömsesidigt - - 3,054,615 3.35% Other Shareholders - - 22,798,005 25.29% Total number of Ordinary shares 77,045,804 100% 91,300,000 100% Marco Deiana and Corrado Deiana each hold 50% of the issued share capital of Deiana Holding Limited. They do not serve as directors on the board of Deiana Holding Limited. Marco Deiana and Corrado Deiana are both part of the founding family of the Group and have been involved in the business of the Group in some capacity for over 20 years. In relation to the Group, Marco Deiana serves as the CEO of the Group and Corrado Deiana serves as COO Europe of the Group, and each of them is an Executive Director of the Company. Financial risk management The financial risk management objectives and policies and the exposure to financial risk can be found in note 41 of the consolidated financial statements. Political Donations The Group did not make any political donations in the financial period. Future Developments Particulars of any important events affecting the Company that have occurred since the end of the financial year and an indication of likely future developments in the business of the Company are described on note “42. Post Balance sheet events” and are incorporated into this report by reference. Page 38 of 139 Subsidiaries Outside of the UK Details of the Company’s subsidiaries are set out in the paragraph “Scope of consolidation” on page 70. The Company has no branches outside of the UK. Going concern The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Therefore, the annual financial statements are prepared adopting the going concern principles. The Group has adequate financial resources, which includes cash and cash equivalents and short-term bank deposits totaling €124.7 million at 31 December 2024 (2023: €105.4 million) to cover both the current financial indebtedness amounting to €12.5 million and non-current financial indebtedness amounting to €25.2 million. The Directors have prepared cash flow forecasts that indicate that the Group has sufficient resources to cover the Group’s cash needs for at least a year after the approval date of these financial statements, including all committed capital expenditure. In determining the going concern basis for preparing the financial statements, the Directors consider the Company’s objectives and strategy, its principal risks and uncertainties in achieving its objectives and its review of business performance and financial position. The economic environment reflected in this Going Concern assessment is based on the 2025 forecast and the three-year plan, which anticipates moderate organic volumes growth across each of our regions, recognising the inflationary pressures in the Group’s cost base. In preparing the financial statements, the Group has also modelled down-side cases that reflects the possible effects of the contingent geopolitical situation (tariffs, wars etc.), assuming a reduction of 5% and 10% of the revenues at group level. Based on the information reported above, the Directors are satisfied that the Group has adequate resources, also considering the down-side case, to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting when preparing the financial statements. Post Balance sheet events Following 31 December 2024, a redenomination, consolidation and subdivision of the share capital of the Company was implemented pursuant to a resolution of 29 January 2025, so that the currency denomination of the Ordinary Shares is reflected in euro ahead of the Admission. On 29 January 2025, Ferrari Group PLC and the parent company (Deiana Holding Limited) passed resolutions to implement a redenomination, consolidation and subdivision of the share capital of the Company as follows: • GBP 77,045,804 Ordinary Shares were redenominated at a prevailing exchange rate determined in accordance with the UK Companies Act from GBP 1.00 to Euro 1.1844; • the Company issued a bonus share with a nominal value of €46,949.7424, for the purposes of ensuring that the redenomination resulted in a whole number of Ordinary Shares; Page 39 of 139 • the share capital of the Company (including the bonus share) was consolidated into 1 ordinary share with a nominal value of €91,300,000; and • the share capital of the Company was subdivided from 1 ordinary share with a nominal value of Euro 91,300,000 into 91,300,000 Ordinary Shares with a nominal value of €1.00 each. On 13 February 2025, all Ordinary Shares were admitted to listing and trading on Euronext Amsterdam, and Deiana Holding Limited offered 22,825,000 Ordinary Shares, with an additional 3,327,620 Ordinary Shares after settlement of the over-allotment option granted to the underwriters to the offering. In connection with the Admission, the Company updated its governance structure, by appointing four new Non-Executive Directors, establishing an audit committee, a remuneration committee and a selection and nomination committee, and adopting new Articles of Association, Board rules, committee charters and various policies, which are published in the Company’s website (www.ferrarigroup.net). For additional information please refer to “43. Post Balance sheet events” included in the Notes. Page 40 of 139 Directors’ responsibilities statement The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the group consolidated financial statements in accordance with UK adopted international accounting standards and IFRS as adopted by EU, and the parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 101 “Reduced Disclosure Framework”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the consolidated financial statements, International Accounting Standard 1 requires that directors: • properly select and apply accounting policies; • present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; • provide additional disclosures when compliance with the specific requirements of the financial • reporting framework are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial • performance; and • make an assessment of the company’s ability to continue as a going concern. In preparing the parent company financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgments and accounting estimates that are reasonable and prudent; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Responsibility statement We confirm that to the best of our knowledge: • the financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; Page 41 of 139 • the Strategic Report and the Directors’ Report include a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and • the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s position and performance, business model and strategy. ** This responsibility statement was approved by the board of directors on April 30, 2025 and is signed on its behalf by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Page 42 of 139 Auditors The Company’s independent auditor is Deloitte LLP of 1 New Street Square, London EC4A 3HQ. Deloitte LLP is registered to carry out audit work by the Institute of Chartered Accountants in England and Wales. Deloitte LLP were appointed as external auditors for the year ended 31 December 2024. Statement as to disclosure of information to auditors Each of the persons who is a director at the date of approval of this annual report confirms that: • so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and • the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. Website pubblication The Directors are responsible for ensuring the Annual Report and Financial Statements are made available on a website. Financial statements are published on the Group’s websites, in accordance with legislation in the United Kingdom and the Netherlands governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Group’s websites is the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein. ** This report was approved by the board of directors on April 30, 2025 and signed on behalf of the board by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Page 43 of 139 Remuneration report This remuneration report offers insights into the remuneration provided to the Executive Directors and Non-Executive Directors as required by Dutch Corporate Governance Code 2:135b BW. Prior to the Admission, the Company was not required to adopt a remuneration policy. Consequently, the Company did not have a remuneration policy in the financial year ended 31 December 2024. In compliance with section 439A of the UK Companies Act and the applicable provisions of the Dutch Governance Code, the Company’s new directors’ remuneration policy will be submitted for shareholder approval at the annual General Meeting to be held in 2025. Directors’ remuneration policy The Company has considered the remuneration principles that it should apply to Directors to ensure these principles are appropriate for the listed company environment. The Company’s remuneration policy will be designed to provide a remuneration framework that will: • attract, motivate and retain executives and senior management to deliver the Company’s strategic goals and create sustainable long-term shareholder value; • incentivise strong financial performance and reward the delivery of the Company’s business plan and key strategic goals; and • adhere to principles of good corporate governance and appropriate risk management. Remuneration of Executive Directors Pursuant to the Company’s intended remuneration policy, the remuneration of Executive Directors will comprise of the following fixed and variable components: • a fixed base salary. Base salaries are reviewed annually in the context of both Company and individual performance, and pay and conditions of the broader employee population more generally; • a pension contribution and benefits such as life assurance and private medical insurance; • a short-term variable annual cash bonus. Bonuses are determined by the remuneration committee on the basis of individual performance and the Company’s performance against financial, strategic and risk-related measures; and • a long-term variable incentive plan, in the form of share-based awards. The Company has not yet established a long-term incentive plan, but its intention is to introduce a share-based long-term incentive plan following the Admission. Each Executive Director entered into a service agreement with the Company on 4 February 2025, conditional upon the Admission. Page 44 of 139 Base salary With effect from the Admission, each Executive Director will be entitled to receive a fixed base salary per annum in the following amounts. Name Base salary per annum (€) Marco Deiana 440,000 Corrado Deiana 290,000 Alessandro Nicolo’ Ugo 400,000 Maria Isabella La Forgia 240,000 Employee Bonus Scheme For the financial year 2024 the Group has adopted a discretionary bonus scheme for employees within the Group in certain senior managerial positions, including chief operating officers and senior managers with a global role (the Employee Bonus Scheme). The amount of the bonus under the Employee Bonus Scheme amounts to a percentage of the consolidated profits of the Company for the relevant year after deduction of interest, tax and expenses as shown in the audited consolidated profit and loss account of the Company, provided that a certain threshold has been reached. The relevant percentage is determined by the Board on a discretionary basis per employee who is entitled to participate in the Employee Bonus Scheme. Each Executive Director will continue to be eligible to participate in the Employee Bonus Scheme with the following percentages: Name Percentage under the Employee Bonus Scheme Marco Deiana 0.10% Corrado Deiana 0.10% Alessandro Nicolo’ Ugo 0.10% Maria Isabella La Forgia 0.07% Long-term incentive plan Following the Admission, each Executive Director will be eligible to participate in any long-term incentive plan that the Company may establish for its executives and other key employees, whereby the entitlement of the Executive Directors will in any case not exceed the following percentages of their fixed base salary per annum: Name Maximum entitlement under any long-term incentive plan as % of the fixed base salary per annum Marco Deiana 100% Corrado Deiana 100% Alessandro Nicolo’ Ugo 50% Maria Isabella La Forgia 25% Such percentages are subject to periodic review, as will be further specified in the Company’s remuneration policy and therefore may increase from time to time. Other benefits Each Executive Director receives the benefit of private medical insurance. Each Executive Director is also entitled to participate in the Group’s pension scheme, which includes the receipt of annual employer contributions on behalf of each Executive Director. Furthermore, in case of termination of their employment, the Executive Directors are not entitled to any benefits. However, under their service agreements, the Executive Directors are entitled to twelve months’ Page 45 of 139 prior notice to terminate their employment. The Company may at its sole discretion pay their fixed base salary in lieu of the notice period, either as a lump sum or as monthly payments. Remuneration of Non-Executive Directors As from the Admission, each Non-Executive Director is entitled to a gross annual fee of €40,000, provided that the chair of the Board shall be entitled to a gross annual fee of €50,000. Each Non-Executive Director is also entitled to reimbursement of reasonable and properly documented expenses. The Non-Executive Directors will not receive any variable remuneration such as awards in respect of Ordinary Shares. Furthermore, in the case of termination of office, the Non-Executive Directors shall not be entitled to any benefits. Further details on the remuneration of Executive and Non-Executive Directors, including the technical features of any long-term incentive plan, will be included in the Company’s remuneration policy submitted for shareholder approval at the annual General Meeting to be held in 2025. Board remuneration for the financial year ended 31 December 2024 The remuneration for the Directors paid by the Group for the financial year ended 31 December 2024 is set out below. Name Base salary (€) Cash bonus Pension contributions (£) Fringe benefits Total Marco Deiana 30,000 - - - 30,000 The Group did not pay any of the other Directors any remuneration for the financial year ended 31 December 2024, because those other Directors were not employed by the Group. Instead, Alessandro Nicolo’ Ugo and Maria Isabella La Forgia were employed and remunerated by Deiana Holding Limited, while Corrado Deiana only received financial compensation by means of dividends distributed to him by the Selling Shareholder. As the Non-Executive Directors were appointed with effect from the Admission, the Group did not pay any of the Non-Executive Directors any remuneration for the financial year ended 31 December 2024. ** The remuneration report was approved by the Board on April 30, 2025. Page 46 of 139 Independent Auditor’s report to the members of Ferrari Group PLC Report on the audit of the financial statements 1. Opinion In our opinion: • the financial statements of Ferrari Group PLC (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024 and of the Group’s profit for the year then ended; • the Group financial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards and IFRS Accounting Standards as adopted by the European Union; • the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework” applicable in the UK and Republic of Ireland; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements which comprise: • the consolidated income statement; the consolidated statement of comprehensive income; • the consolidated and parent company statements of financial position; • the consolidated and parent company statements of changes in equity; • the consolidated statement of cash flows; • the consolidated material accounting policy information; • the parent company statement of accounting policies; and • the related consolidated notes 1 to 43 and parent company notes 1 to 16. The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law, United Kingdom adopted international accounting standards and IFRS Accounting Standards as adopted by the European Union. The financial reporting framework that has been applied in the preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice). Page 47 of 139 2. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 3. Summary of our audit approach Key audit matters This was the first year of our appointment as auditor. The key audit matters that we identified were: • Cut-off of revenue recognition; and • Classification of the potential liability in relation to the legal investigation. Materiality The materiality that we used for the Group financial statements was €4.0m, which was determined on the basis of 5.5% of profit before tax (“PBT”). Scoping We identified each legal entity as a component and scoped in components for procedures on one or more classes of transactions, account balances or disclosures. These components contribute 99% of revenue, 99% of profit before tax and 97% of net assets to the group. 4. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern basis of accounting included: • obtaining an understanding of the relevant controls around the budgeting and forecasting process used in the preparation of the going concern analysis and disclosures; • evaluating the Group’s existing access to sources of financing, including existing debt and financing facilities; • testing the accuracy of management’s models, including agreement to the most recent Board approved budgets and forecasts; • assessing the reasonableness of the assumptions used in the Group’s strategic business plan Page 48 of 139 approved by the Board; • challenging the key assumptions underpinning these forecasts by: o reading analyst reports, industry data and other external information and comparing these with management’s estimates; o evaluating the historical accuracy of forecasts prepared by management; o considering potential macro-economic impacts on the forecasts as a consequence of the current geo-political environment; and assessing the sensitivity of the headroom to key assumptions; and • assessing the appropriateness of the Group’s disclosure concerning the going concern basis. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 5. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 5.1 Cut-off of revenue recognition Key audit matter description The Group recognised €348.8 million of revenue in the year ended 31 December 2024 (2023: €333.0 million), relating to international and national forwarding and transport services, and warehousing and storage solutions. Forwarding and transport revenue is recognised at the point that delivery to the customer is completed, with limited judgement or complexity involved as this is when the performance obligation has been met under IFRS 15 ‘Revenue Contracts with Customers’. However, there is a significant volume of revenue recognised during the last 15 days of the financial year, due to seasonal peaks in demands. We therefore identified a key audit matter relating to the risk that, whether due to error or fraud, revenue was not recognised in the same period as the performance obligation was met, or was recognised during the year when no performance obligation existed. The accounting policy for revenue is disclosed on page 76 and segment information is disclosed in note 1 to the financial statements. Page 49 of 139 How the scope of our audit responded to the key audit matter We have performed the following audit procedures in respect of this key audit matter: • Understood the revenue recognition process and obtained an understanding of the relevant review controls; • Performed testing on a sample of sales transactions, focused on the last 15 days of the financial year and first 15 days of the next financial year, inspecting supporting documentation to determine if the transactions were recorded in the correct financial year; • Assessed manual adjustments made to revenue and traced them to appropriate audit evidence in order to evaluate whether revenue was recorded in the appropriate accounting period; • Tested credits notes issued to customers after the financial year end to appropriate evidence in order to determine if they are valid and that revenue was appropriately recorded; and • Challenged the revenue recognition accounting policy and application in accordance with IFRS 15. Key observations Based on the procedures performed, we are satisfied that revenue has been recognised appropriately for the financial year ended 31 December 2024. 5.2 Classification of the potential liability in relation to the legal investigation Key audit matter description On 29 August 2024, an Italian subsidiary of the Group, Ferrari S.p.A., received a preventive seizure order for €8.5 million related to an investigation by Italian authorities into alleged customs duty and VAT evasion. The investigation stems from the alleged smuggling of luxury watches by former employees in 2020 and 2021. The €8.5 million has been seized by the Italian authorities, where the amount will be held until the investigation is complete; management have therefore reclassified this money as other non-current asset on the consolidated balance sheet, see note 19. The authorities have noted that the legal investigation could result in total financial exposure to Ferrari S.p.A. of €14.7 million, for which the seized cash of €8.5 million would be used as partial settlement. There is judgement regarding the classification of the potential liability due to the uncertain outcome of the investigation, with reference to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’. Following legal advice, the directors have determined that an adverse outcome is not probable and therefore does not meet the recognition criteria for a provision. Therefore, the total potential liability has been disclosed as a contingent liability in note 37. This is also disclosed as a critical accounting judgement on page 86. Given the level of judgement involved, we have identified the classification of the potential liability as a key audit matter. How the scope of our audit responded to the key audit matter To respond to this key audit matter, we completed the following procedures: • Obtained an understanding of the relevant controls around managing and assessing the impact of the case; Page 50 of 139 • Assessed and challenged the legal advice obtained in relation to the probability of Ferrari S.p.A.’s ability to defend the case; • Assessed the facts and circumstances of the case with reference to IAS 37; • Involved Italian legal specialists to support our audit considerations with reference to the reasonableness of the legal advice issued by Ferrari's S.p.A. lawyers (referred to in the previous point); • Involved fraud specialists to support our risk assessment and challenge our proposed audit procedures; • Challenged the classification of the liability and associated disclosure in the financial statements. Key observations Based on the procedures performed, we are satisfied that potential liability in relation to the legal investigation has been recognised appropriately as a contingent liability as at 31 December 2024, and that the seized cash has been classified appropriately as a non-current asset on the balance sheet. 6. Our application of materiality 6.1 Materiality We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: Group financial statements Parent Company financial statements Materiality €4.0m €2.0.m Basis for determining materiality 5.5% of profit before tax of €73m Parent Company materiality was based on net assets and capped at 50% of Group materiality (<0.1% of net assets). Rationale for the benchmark applied Profit before tax is a key metric for users of the financial statements and reflects the manner in which business performance is reported and assessed by external users of the financial statement following the recent listing of the Parent Company on Euronext Amsterdam. The Parent Company holds the Group’s investments and is not profit driven. Net assets are of most relevance to the users of the financial statements. Page 51 of 139 6.2 Performance materiality We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole. Group financial statements Parent Company financial statements Performance materiality 70% of Group materiality 70% of Parent Company materiality Basis and rationale for determining performance materiality In determining performance materiality, we considered the following factors: - the current financial year being Deloitte UK LLP’s first year auditing the Group and Parent Company financial statements; - our risk assessment, including our understanding of the entity and its overall control environment; - our assessment of the potential for uncorrected misstatements in the current year; - the disaggregated nature of the Group and the likelihood of an individually material error; and - consideration of the post financial year-end initial public offering. 6.3 Error reporting threshold We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of €0.2m, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements. 7. Our application of materiality 7.1 Identification and scoping of components The Group operates across five continents with the largest footprints being in Europe, Asia, North America and the Middle East. Our audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and assessing the risks of material misstatement at the Group and entity levels. We developed our audit plan by assessing the qualitative and quantitative risk characteristics of each significant classes of transactions, account balances and disclosures. We identified the components of the Group to be the individual legal entities, which are the lowest level at which management prepares financial information that is included in the Financial Statements. We considered the relative contribution of each entity within the group to the consolidated financial statement line items to determine which entities would be subject to audit procedures. The components in our audit scope, where procedures were applied on one or more classes of transactions or account balance, contribute 99% of revenue, 99% of profit before tax and 97% of net assets of the Group. Page 52 of 139 At a Group level, we also applied audit procedures on the consolidation and performed analytical review procedures on entities and other account balances that were not subject to direct audit procedures. 7.2 Our consideration of the control environment The Group uses a number of different IT systems across the components and the control environment is predominantly automated. We involved our IT specialists to obtain an understanding of the general IT controls relating to the financial systems relevant to the audit, as well as the general ledger system migrations in certain entities. We identified a number of control deficiencies and improvements. Management are aware of the requirement to invest in enhancing technology across the Group, as referenced in the Internal risk management and control systems section of the Strategic Report on page 16. We obtained an understanding of relevant controls over revenue business processes, the financial close and the reporting process including reviews of judgements and estimates. We did not place reliance on controls at any entity this year, performing a fully substantive audit approach, as the control environment continues to mature. As reported in the in the Internal risk management and control systems section of the Strategic Report, the Group are considering the required steps to enhance its risk management and internal controls. Where control deficiencies and improvements were identified in our audit work these were reported to management and the Audit Committee as appropriate. 7.3 Our consideration of climate-related risks In planning our audit, we considered the potential impact of climate change on the Group’s business and financial statements. The Group continues to develop its assessment of and response to potential impacts of environmental, social and governance “ESG” related risks including climate change, as outlined in the Strategic Report. We have engaged with both the central finance and sustainability functions to gain an understanding of the Group’s assessment of, and the process undertaken to both identify and quantify, the Group’s ESG risks. Based on the work performed to date, management do not expect any material climate change related financial impact on the business. We have performed an independent climate-based risk assessment to consider the potential impact of climate change on the Group’s financial statements incorporating both business specific knowledge and wider industry awareness. We read the climate-related disclosures included within the Annual Report and considered whether they are materially consistent other information included within the Annual Report and with our knowledge obtained in the audit. 7.4 Working with other auditors The UK audit team within Deloitte LLP led the group audit, working closely with Deloitte Italy. The UK team sent detailed instructions to the Italian team, setting out the collaborative approach both teams would adopt in identifying risks of material misstatement, the scoping of account balances, classes of transactions and disclosures, and the required audit testing approach. The instructions also set out the audit procedures to be performed directly by the UK team and our involvement in the direction, review and supervision of the Italian team’s work. Page 53 of 139 Deloitte LLP was involved in the audit work performed by Deloitte Italy through a combination of the formal audit instructions, directing and supervising the team throughout the audit, reviewing their work, and discussing matters relating to additional procedures to be performed in order to comply with UK standards and methodology. The nature, timing, and extent of our involvement in their work was tailored based on the nature and circumstances of the engagement. Our work with Deloitte Italy included (1) in-person and virtual two-way communications and interactions; (2) discussion and challenge of the risk assessment; (3) reviews of the historical audit working papers and Q3 2024 testing performed; (4) joint-collaboration on the international site visits in the UAE, USA, France, Italy and Switzerland, where we completed work on the design and implementation of controls, held meetings with management, completed walkthroughs of the revenue process, and met with local auditors where applicable; (5) involvement of UK IT and tax specialists; (6) participation in planning and close meetings, and (7) direction, supervision and reviews of the year-end audit testing. 8. Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 9. Responsibilities of directors As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Page 54 of 139 10. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 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. A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 11. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 11.1 Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets; • results of our enquiries of management, lawyers, the directors and the audit committee about their own identification and assessment of the risks of irregularities, including those that are specific to the Group’s sector; • any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to: o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud (refer to Notes 19 and 37 for further detail of the legal investigation); o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; • the matters discussed among the audit engagement team and relevant internal specialists, including IT and forensic specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. Page 55 of 139 As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: cut-off of revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Italian Legislative Decree 231/2001 and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included the Group’s environmental regulations. 11.2 Audit response to risks identified As a result of performing the above, we identified cut-off of revenue recognition and the classification of the potential liability in relation to the legal investigation as key audit matters related to the potential risks of fraud or non-compliance with laws and regulations. The key audit matters section of our report explains these matters in more detail and also describes the specific procedures we performed in response to those key audit matters. In addition to the above, our procedures to respond to risks identified included the following: • reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • enquiring of management, the audit committee and external legal counsel concerning actual and potential litigation and claims; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of meetings of those charged with governance; • in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non- compliance with laws and regulations throughout the audit. Page 56 of 139 Report on the audit of the financial statements 12. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report or the Directors’ Report. 13. Matters on which we are required to report by exception 13.1 Adequacy of explanations received and accounting records Under the Companies Act 2006 we are required to report to you if, in our opinion: • we have not received all the information and explanations we require for our audit; or • adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or • the Parent Company financial statements are not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 13.2 Directors’ remuneration Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have not been made. We have nothing to report in respect of this matter. 14. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Page 57 of 139 As required by the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (“ESEF RTS”) the annual financial report has been prepared in European Single Electronic Format (“ESEF”). This auditor’s report provides no assurance over whether the ESEF prepared annual financial report has been prepared in compliance with the ESEF RTS. We have been engaged to provide assurance on whether the ESEF prepared annual financial report has been prepared in compliance with the ESEF RTS and have reported separately to the members on this. Tim Grogan, BSc FCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom 30 April 2025 Page 58 of 139 Independent auditor’s reasonable assurance report to the members of Ferrari Group PLC on the compliance of Electronic Format Annual Financial Report with the European Single Electronic Format Regulatory Technical Standard (‘ESEF RTS’). Report on compliance with the requirements for iXBRL mark up (‘tagging’) of consolidated financial statements included in the Electronic Format Annual Financial Report. We have undertaken a reasonable assurance engagement on the iXBRL mark up of consolidated financial statements for the year ended 31 December 2024 of Ferrari Group PLC (the “company”) included in the ESEF-prepared Annual Financial Report prepared by the company. Opinion In our opinion, the consolidated financial statements for the year ended 31December 2024 of the Company included in the ESEF-prepared Annual Financial Report, are marked up, in all material respects, in compliance with ESEF RTS. The directors’ responsibility for the Electronic Format Annual Financial Report prepared in compliance with ESEF RTS. The directors are responsible for preparing the Electronic Format Annual Financial Report. This responsibility includes: • the selection and application of appropriate iXBRL tags using judgement where necessary; • ensuring consistency between digitised information and the consolidated financial statements presented in human-readable format; and • the design, implementation and maintenance of internal control relevant to the application of ESEF RTS. Our independence and quality control We have complied with the independence and other ethical requirements of Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We apply International Standard on Quality Monitoring 1 (ISQM) and, accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our responsibility Our responsibility is to express an opinion on whether the iXBRL mark up of consolidated financial statements complies in all material respects with ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements (UK) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information (‘ISAE (UK) 3000’) issued by the FRC. A reasonable assurance engagement in accordance with ISAE (UK) 3000 involves performing procedures to obtain reasonable assurance about the compliance of the mark up of the consolidated financial statements with the ESEF RTS. The nature, timing and extent of procedures selected depend on the practitioner's judgement, including the assessment of the risks of material departures from the requirements set out in ESEF RTS, whether due to fraud or error. Our reasonable assurance engagement consisted primarily of: Page 59 of 139 • obtaining an understanding of the iXBRL mark-up process, including internal control over the mark up process relevant to the engagement; • reconciling the marked up data with the audited consolidated financial statements of the company dated 31 December 2024; • evaluating the appropriateness of the company’s mark up of the consolidated financial statements using the iXBRL mark-up language; • evaluating the appropriateness of the company’s use of iXBRL elements selected from a generally accepted taxonomy and the creation of extension elements where no suitable element in the generally accepted taxonomy has been identified; and • evaluating the use of anchoring in relation to the extension elements. In this report we do not express an audit opinion, review conclusion or any other assurance conclusion on the consolidated financial statements. Our audit opinion relating to the consolidated financial statements of the company for the year ended 31 December 2024 is set out in our Independent Auditor’s Report dated 30 April 2025. Use of our report Our report is made solely to the Company’s members, as a body, in accordance with ISAE (UK) 3000. Our work has been undertaken so that we might state to the company those matters we are required to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our work, this report, or for the conclusions we have formed. Tim Grogan, BSc FCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom 30 April 2025 Page 60 of 139 Ferrari Group PLC Consolidated Financial Statements as of and for the year ended December 31, 2024 Page 61 of 139 Consolidated Income Statement for the year ended December 31, 2024 Amounts in € thousand Notes For the year ended December 31, 2024 2023 Revenues 1 348,756 333,036 Other income 2 6,110 4,197 Purchase of goods 3 (5,772) (5,517) Costs for services 4 (145,261) (142,437) Personnel costs 5 (107,388) (97,299) Depreciation and Amortisation 14-16 (17,355) (13,632) Impairment of trade receivables 20 (382) (813) Provision for risks 28 (1,837) (145) Other operating costs 6 (3,682) (4,401) Operating Profit 73,189 72,989 Finance income 7 1,672 1,238 Finance expenses 8 (1,656) (2,314) Exchange losses 9 (1,233) (802) Result from investments accounted for using the equity method 10 834 951 Profit before taxes 72,806 72,062 Income taxes 11 (15,509) (15,162) Profit for the year 57,297 56,900 Attributable to: - Shareholders of the parent company 55,462 52,888 - Non-controlling interests 1,835 4,012 Earnings per ordinary share: - basic and diluted (in Euro) 12 0.72 0.69 The accompanying notes are an integral part of the Consolidated financial statements. Consolidated Statement of Comprehensive Income as of and for the year ended December 31, 2024 Amounts in € thousand Notes For the year ended December 31, 2024 2023 Profit for the year 57,297 56,900 Other comprehensive income / (loss) - Items that may be subsequently reclassified to the statement of profit and loss Foreign exchange differences on translation of foreign 26 5,155 (1,451) operations - Items that will not be subsequently reclassified to the statement of profit and loss Remeasurement of net defined benefit liability 27 16 16 Tax effect on remeasurement of net defined benefit (5) (4) liability Net actuarial gain from defined benefit plans 11 12 Total other comprehensive income/(loss) for the year net 5,166 (1,439) of tax Total comprehensive income for the year 62,463 55,461 Attributable to: Shareholders of the parent company 60,388 51,695 Non-controlling interests 2,075 3,766 Page 62 of 139 The accompanying notes are an integral part of the Consolidated financial statements. Page 63 of 139 Consolidated Statement of Financial Position as of December 31, 2024 As of As of Amounts in € thousand Notes December December 31, 2024 31, 2023 Assets Non-current assets Goodwill 13 2,417 2,417 Intangible assets 14 7,591 3,483 Property plant and equipment 15 24,615 20,585 Right-of-use assets 16 35,412 30,678 Investments accounted for using the equity method 17 6,120 5,260 Non-current receivables 18 2,087 1,720 Other non-current assets 19 17,403 6,423 Deferred tax assets 11 1,034 976 Total Non-current assets 96,679 71,542 Current assets Inventories 65 211 Trade receivables 20 76,215 91,453 Current assets 21 8,946 6,654 Other current receivables 22 14,696 10,979 Current tax receivables 33 486 - Cash and cash equivalents 23 115,799 98,777 Total Current assets 216,207 208,074 TOTAL ASSETS 312,886 279,616 Consolidated Statement of Financial Position as of December 31, 2024 (continued) As of As of Amounts in € thousand Notes December December 31, 2024 31, 2023 Share capital 24 85,843 85,843 Other reserves 26 5,600 674 Retained Earnings 26 107,966 77,504 Equity attributable to owners of the parent 199,409 164,021 Equity attributable to non-controlling interests 25 11,989 11,033 Total Equity 211,398 175,054 Liabilities Non-current liabilities Employee benefits 27 2,543 2,415 Provisions for risk and charges 28 2,732 1,001 Deferred tax liabilities 11 2,099 1,903 Non-current borrowings 29 641 939 Non-current lease liabilities 16 24,606 21,171 Total Non-current liabilities 32,621 27,429 Current liabilities Current borrowings and bank overdrafts 30 772 883 Current lease liabilities 16 11,734 9,860 Trade payables 31 27,791 30,966 Other current liabilities 32 28,570 26,709 Current tax payables 33 - 8,715 Total Current liabilities 68,867 77,133 TOTAL EQUITY AND LIABILITIES 312,886 279,616 Page 64 of 139 The accompanying notes are an integral part of the Consolidated financial statements. ** This report was approved by the board of directors on April 30, 2025 and signed on behalf of the board by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Ferrari Group PLC Ferrari Group PLC Registered Number 12614552 Registered Number 12614552 Page 65 of 139 Consolidated Statement of Cash Flows for the year ended December 31, 2024 Amounts in € thousand For the year ended December 31, 2024 2023 Operating activities Profit for the year 57,297 56,900 Income taxes 15,509 15,162 Depreciation and Amortisation 17,355 13,632 Impairment of trade receivables net of use of reversal (1,306) 434 Increase in provision for risks 1,837 145 Finance income (1,672) (1,238) Finance expenses 1,656 2,314 Exchange losses 1,233 802 Result from investments accounted for using the equity method (834) (951) (Gain)/Loss from the disposal of assets (293) 205 Difference between employee benefit contributions and the employee benefit charge 193 251 Change in inventories 146 (66) Change in trade receivables 16,500 2,557 Change in trade payables (3,175) 1,672 Change in other current assets (3,717) (1,637) Change in current assets and other current receivables (2,293) 862 Change in other current liabilities (3,594) (5,283) Payment for deposit included in other non-current assets (8,480) - Other non-cash operating items 944 (2,049) Payment of provisions for risks and charges (89) (594) Income taxes paid (24,573) (15,739) Net cash flows from operating activities 62,644 67,379 Investing activities Payment for Investments for property, plant and equipment (8,579) (9,498) Proceeds from disposal of property, plant and equipment 662 248 Payment for Investments for intangible assets (4,104) (2,990) Payment for other non-current assets (4,715) (2,064) Proceeds from disposal of other non-current assets 2,414 2,512 Payment for non-current receivables (351) (2,118) Interest received 1,672 1,055 Net cash flows used in investing activities (13,001) (12,855) Financing activities Proceeds from borrowings 223 209 Repayments for borrowings (737) (10,120) Repayment of principal on lease liabilities (11,545) (9,145) Interest paid (1,708) (2,258) Dividends paid to Group shareholders (19,544) (20,000) Dividends paid to Non-Controlling Interests (1,119) (2,810) Net cash flows used in financing activities (34,430) (44,124) Translation exchange difference on cash and cash equivalents 1,809 (173) Net increase in cash and cash equivalents 17,022 10,227 Cash and cash equivalents at the beginning of the year 98,777 88,550 Cash and cash equivalents at the end of the year 115,799 98,777 The accompanying notes are an integral part of the Consolidated financial statements. Page 66 of 139 Consolidated Statement of Changes in Equity as of December 31, 2024 Reserve for Equity Currency remeasure Equity attributable Amount in € thousand Notes Share Retained translatio ment of attributable Total to Non- Capital earnings n reserve defined Equity to owners of controlling benefit the parent interests plans As of December 31, 2022 24-26 85,843 44,616 1,830 37 140,285 132,326 7,959 Profit for the year - 52,888 - - 56,900 52,888 4,012 Other comprehensive income/(Loss) - - (1,205) 12 (1,439) (1,193) (246) Total Comprehensive income/(loss) - 52,888 (1,205) 12 55,461 51,695 3,766 Dividends - (20,000) - - (20,692) (20,000) (692) As of December 31, 2023 24-26 85,843 77,504 625 49 175,054 164,021 11,033 Profit for the year - 55,462 - - 57,297 55,462 1,835 Other comprehensive income - - 4,915 11 5,166 4,926 240 Total Comprehensive income - 55,462 4,915 11 62,463 60,388 2,075 Dividends - (25,000) - - (26,119) (25,000) (1,119) As of December 31, 2024 24-26 85,843 107,966 5,540 60 211,398 199,409 11,989 The accompanying notes are an integral part of the Consolidated financial statements. ** This report was approved by the board of directors on April 30, 2025 and signed on behalf of the board by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Page 67 of 139 Notes to the Consolidated Financial Statements Reporting standards and basis of preparation General information Established in 1959 as a customs broker and forwarding company in Italy, the Ferrari Group is today a global network operator with revenues of €348.8 million for the financial year ended 31 December 2024. The Ferrari Group is now a major player in the logistics network which services luxury goods, products and high- end events. The customers of the Group include global luxury brands, high-end watchmakers, jewellery manufacturers and distributors, diamond dealers, precious stone producers and private clients. The Group services customers throughout the luxury goods value chain and specifically focuses on the following primary activities: - Freight forwarding: the fast and secure delivery of luxury goods through different airfreight carriers for valuable and vulnerable cargo; - Custom solution: the handling of procedures involved in the shipping of high-value products throughout the world including providing country-specific expertise, customs consultancy services and solutions; - Ground transportation, warehousing and logistic services: the transportation of luxury goods on land through a fleet of armoured and non-armoured vehicles and the safe storage of those goods; and - Special services: offering bespoke services across the logistics value chain including security for luxury goods at red-carpet events, the assembly of goods, after sales services and stocktaking and other services which includes packaging items, kitting and wrapping goods and preparing components for production. As a result, the Group provides integrated services to connect hard luxury brands with their customers by working in cooperation with clients to provide bespoke solutions. Page 68 of 139 Material Accounting Policies New standards and amendments effective from January 1, 2024 The material accounting policies adopted in the preparation of the Group's annual financial statements for the year ended 31 December 2024 are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended 31 December 2023. In the current year, the Group has applied amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements: International Accounting Standards (IFRS/IAS) IASB Effective Date - UK & UE adopted effective periods commencing on Date - periods commencing Amendments to IAS 1 Presentation of Financial Statements or after on or after • Non-current Liabilities with Covenants • Deferral of Effective Date Amendment (published 15 July 2020) 1 January 2024 1 January 2024 • Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) (published 23 January 2020) Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) 1 January 2024 1 January 2024 Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7 1 January 2024 1 January 2024 Ferrari Group currently prepares its financial statements in accordance with UK adopted international accounting standards and IFRS as adopted by EU. Therefore, the relevant effective dates are the EU and UK effective dates. A brief summary of the changes to accounting standards is provided below: Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. Non-current Liabilities with Covenants (Amendments to IAS 1) The amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) The amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) The amendments add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements. Page 69 of 139 Accounting standards, amendments and interpretations not yet applicable and not yet adopted by the Group At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been endorsed). International Accounting Standards (IFRS/IAS) IASB Effective Date - EU adopted effective periods commencing on or Date - periods after commencing on or after Lack of Exchangeability (Amendment to IAS 21) 1 January 2025 1 January 2025 Contracts Referencing Nature Dependent Electricity – Amendments 1 January 2026 Not yet endorsed to IFRS 9 and IFRS 7 (issued on 18 December 2024) Annual Improvements Volume 11 (issued on 18 July 2024) 1 January 2026 Not yet endorsed Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 (issued on 30 May 1 January 2026 Not yet endorsed 2024) IFRS 18 Presentation and Disclosure in Financial Statements (issued 1 January 2027 Not yet endorsed on 9 April 2024) IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued 1 January 2027 Not yet endorsed on 9 May 2024) The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Group in future periods. Basis of preparation The financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Consolidated Financial Statements is determined on such a basis, leasing transactions that are within the scope of IFRS 16 Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 Inventories or value in use in IAS 36 Impairment of Assets. Page 70 of 139 Going concern The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Therefore, the annual financial statements are prepared adopting the going concern principles. The Group has adequate financial resources, which includes cash and cash equivalents and short-term bank deposits totaling €124.7 million at 31 December 2024 (2023: €105.4 million) to cover both the current financial indebtedness amounting to €12.5 million and non-current financial indebtedness amounting to €27.2 million. The Directors have prepared cash flow forecasts that indicate that the Group has sufficient resources to cover the Group’s cash needs for at least a year after the approval date of these financial statements, including all committed capital expenditure. In determining the going concern basis for preparing the financial statements, the Directors consider the Company’s objectives and strategy, its principal risks and uncertainties in achieving its objectives and its review of business performance and financial position. The economic environment reflected in this Going Concern assessment is based on the 2025 forecast and the three-year plan, which anticipates moderate organic volumes growth across each of our regions, recognising the inflationary pressures in the Group’s cost base. In preparing the financial statements, the Group has also modelled down-side cases that reflects the possible effects of the contingent geopolitical situation (tariffs, wars etc.), assuming a reduction of 5% and 10% of the revenues at group level. Based on the information reported above, the Directors are satisfied that the Group has adequate resources, also considering the down-side case, to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting when preparing the financial statements. Basis of consolidation The Consolidated Financial Statements incorporate the assets and liabilities of all subsidiaries as of December 31, 2024 and the result of the entities controlled by the Company (its subsidiaries) for the year then ended. Control is achieved when the Company: – has power over the investee; – is exposed, or has rights, to variable returns from its involvement with the investee; and – has the ability to use its power to affect its returns. When the Company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: – the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; – potential voting rights held by the Company, other vote holders or other parties; – rights arising from other contractual arrangements; and Page 71 of 139 – any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in the income statement from the date the Company gains control until the date when the Company ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation. Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non- controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Income statement and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non- controlling interests having a deficit balance. Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company. When the Group loses control of a subsidiary, the gain or loss on disposal recognised in income statement is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary. Page 72 of 139 Interests in associates and in joint arrangements An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee without having control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Associates and joint ventures are accounted for using the equity method of accounting, from the date significant influence or joint control is obtained, respectively. 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 carrying amount of the investment. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest. 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 associate or joint venture exceeds the carrying amount of the Group’s investment, the Group discontinues recognizing its share of further losses. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the related investee. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or joint venture, or when it is classified as available-for-sale. Page 73 of 139 Scope of consolidation Ferrari Group PLC is the parent company of the Ferrari Group and it holds, directly or indirectly, interests in the Ferrari Group’s subsidiaries. The share capital held comprises ordinary or common shares which are held by Group subsidiaries. The following table presents the Ferrari Group’s scope of consolidation as of December 31, 2024 and the comparative period: Company Country and Full year 2024 Full year 2023 principle place of business Role % of interest Role % of interest Ferrari Group PLC UK Parent Company 100.00% Parent Company 100.00% SUBSIDIARIES Ferrari S.p.A. Italy Subsidiary 100.00% Subsidiary 100.00% Ferrari Expéditions S.A. Switzerland Subsidiary 100.00% Subsidiary 100.00% SW System S.r.l. Italy Subsidiary 100.00% Subsidiary 100.00% Ferrari Expedition France S.a.S. France Subsidiary 99.87% Subsidiary 99.87% Ferrari Global Services S.a.S. France Subsidiary 99.87% Subsidiary 99.87% Ferrari Sécuritè France S.a.S. France Subsidiary 99.87% Subsidiary 99.87% Ferrari Divisione Vigilanza Speciale S.r.l. Italy Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Germany GMBH Germany Subsidiary 100.00% Subsidiary 100.00% Ferrari Belgium BVBA Belgium Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistic (Asia) Ltd. Honk Kong Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Singapore Pte. Ltd. Singapore Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics (Asia) Limitada (Macao) Macau Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Japan K.K. Japan Subsidiary 100.00% Subsidiary 100.00% Ferrari Express S.L. Spain Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Asia (Thailand) Ltd. Thailand Subsidiary 71.54% Subsidiary 71.54% Ferrari Logistics Southern Africa Ltd. South Africa Subsidiary 100.00% Subsidiary 100.00% Ferrari Group Portugal S.A. Portugal Subsidiary 100.00% Subsidiary 100.00% Ferrari Investment Holding PTE Singapore Subsidiary 100.00% Subsidiary 100.00% AF Ferrari Secure Logitech PVT Ltd (India) India Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics (Korea) Co. Ltd Korea Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Middle East FZE – UAE Dubai Subsidiary 100.00% Subsidiary 100.00% Ferrari Clearing and Forwarding LLC Dubai Subsidiary 100.00% Subsidiary 100.00% Ferrari Security and Vaulting DMCC LLC Dubai Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Ireland Ltd Ireland Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Netherland BV Netherlands Subsidiary 100.00% Subsidiary 100.00% Ferrari Express Logistica e Transporte do Brazil Ltda Brazil Subsidiary 50.00% Subsidiary 50.00% Ferrari Express Inc. USA Subsidiary 50.00% Subsidiary 50.00% Ferrari Group Netherlands BV Netherlands Subsidiary 100.00% Subsidiary 100.00% Ferrari Express Canada Inc. Canada Subsidiary 50.00% Subsidiary 50.00% Grupo Ferrari Sociedade Unipessoal Limitada Macau Subsidiary 100.00% Subsidiary 100.00% Modi Corporation Ltd. Thailand Subsidiary 46.00% Subsidiary 46.00% Ferrari Logistics China Ltd. China Subsidiary 100.00% Subsidiary 100.00% Ferrari China Diamond Ltd. China Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics (Malaysia) SDN BHD Malaysia Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics (Hong Kong) Ltd. Honk Kong Subsidiary 100.00% Subsidiary 100.00% Ferrari BPM S.a.r.l. Switzerland Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Hainan Ltd. China Subsidiary 100.00% Subsidiary 100.00% Ferrari Group Trading Ltd. Honk Kong Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics Botswana Proprietary Ltd. Botswana Subsidiary 100.00% Subsidiary 100.00% Ferrari Protéction S.a.S. France Subsidiary 51.00% Subsidiary 51.00% FG Logistics Ltd. UK Subsidiary 100.00% Subsidiary 100.00% Ferrari Logistics (Australia) Pty Ltd. Australia Subsidiary 100.00% Subsidiary 100.00% Ferrari Trading (Shanghai) Ltd. China Subsidiary 100.00% Subsidiary 100.00% F Security LLC USA Subsidiary 50.00% n.a. n.a. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (ASSOCIATES) Ferrari Express Ltd. UK Associate 50.00% Associate 50.00% Bin Yousef Luxury Qatar Associate 49.00% Associate 49.00% Bcube Luxury BV (under liquidation) Netherlands Associate 40.00% Associate 40.00% CDS S.r.l. Italy Associate 25.00% Associate 25.00% Page 74 of 139 The change in the scope of consolidation of the Group occurred during the year ended December 31, 2024 was only the incorporation of the subsidiary F Security LLC. on June 5th, 2024, the US subsidiary (Ferrari Express Inc.), subscribed Euro 2 thousand (USD 2 thousand) representing the 100% of the share capital as of December 31, 2024. All subsidiaries have a financial year end of 31 December in line with the Group. The registered office of the parent company and its subsidiaries and associates is published on our website. The Ultimate parent company is Deiana Holding Limited, a company registered in United Kingdom that is the parent company of Ferrari Group PLC. Business combinations Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in income statement as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: - Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively; and - Assets (or disposal Groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non- controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognized immediately in income statement as a bargain purchase gain. When the consideration transferred by the Group in a business combination includes an asset or liability resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its Page 75 of 139 subsequent settlement is accounted for within equity. Other contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognised in income statement. When a business combination is achieved in stages, the Group’s previously held interests (including joint operations) in the acquired entity are remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in income statement. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to income statement, where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date. Foreign currency translation The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates (its functional currency). For the purpose of the Consolidated Financial Statements, the results and financial position of each Group company are expressed in Euro, which is the functional currency of the Company and the Group, rounded to the nearest thousand. In preparing the individual companies’ financial statements, transactions in other currencies different from the entity’s functional currency (foreign currencies) are recognized at the rates of exchange at the dates of the transaction. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in a foreign exchange translation reserve (attributed to non-controlling interests as appropriate). At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are translated at the date rates. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Page 76 of 139 The table below details the exchange rates used in the preparation of the Consolidated financial statements of the Group: Currency Country Code Spot rate Average Spot rate Average Dec. 31, 2024 2024 Dec. 31, 2023 2023 Swiss Franc Switzerland CHF 0.941 0.953 0.926 0.972 US Dollar United States USD 1.039 1.082 1.105 1.081 Hong Kong Dollar Hong Kong HKD 8.069 8.445 8.631 8.465 Renminbi (Yuan) China CNY 7.583 7.788 7.851 7.660 Won Sud South Korea KRW 1,532.150 1,475.400 1,433.660 1,412.880 Dirham UAE AED 3.815 3.975 4.058 3.971 Yen Japan JPY 163.060 163.852 156.330 151.990 Indian Rupee India INR 88.934 90.556 91.905 89.300 Pounds UK GBP 0.829 0.847 0.869 0.870 Singapore Dollar Singapore SGD 1.416 1.446 1.459 1.452 Rand South Africa ZAR 19.619 19.830 20.348 19.955 Baht Thailand THB 35.676 38.181 37.973 37.631 Ringgit Malaysia MYR 4.645 4.950 5.078 4.932 Real Brazil BRL 6.425 5.828 5.362 5.401 Australian Dollar Australia AUD 1.677 1.640 1.626 1.629 Pula Botswana BWP 14.490 14.657 14.812 14.443 Canadian Dollar Canada CAD 1.495 1.482 1.464 1.460 Taiwan Dollar Taiwan TWD 34.057 34.748 33.874 33.698 Revenue recognition Revenues are recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenues that can be reliably measured, in accordance with IFRS 15. All revenues are reported net of discounts. The Group recognizes revenue as follows: - Revenue from contracts with customers Ferrari Group’s normal business operations consist of the provision of logistics services comprising freight forwarding, custom solution and ground transportation and ancillary services all over the world. All income relating to normal business operations is recognised as revenue in the income statement. The transaction price is fixed (usually it is internally determinate using a cost-plus method) and agreed in advance with the client. There are no variable considerations. Revenue is recognised when control over the services transfers to the customer, i. e. when the customer has the ability to control the use of the transferred services provided and generally derive their remaining benefits. There must be a contract with enforceable rights and obligations and, amongst other things, the receipt of consideration must be likely, taking into account the customer’s credit quality. Revenue corresponds to the transaction price to which the Group is expected to be entitled. Variable consideration is included in the transaction price when it is highly probable that a significant reversal in the amount of revenue recognised will not occur and to the extent that the uncertainty associated with the variable consideration no longer exists. The Group does not expect to have contracts where the period between the transfer of the promised services to the customer and payment by the customer exceeds one year. Accordingly, the promised consideration is not adjusted for the time value of money. For each performance obligation, revenue is either recognised at a point in time or over time. The obligation to perform transport services is fulfilled Page 77 of 139 over time and revenue is recognised over the performance period. The revenue generated by providing other logistics services is recognised at a point in time in the reporting period in which the service was rendered. Whenever third parties are involved in the performance of a service, a distinction must be drawn between the principal and agent. If Ferrari Group serves as the principal, then the gross amount of revenue is recognized. If the Group acts as the agent, the net amount is recognized at a point in time. The transaction price for this specific service is limited to the amount of the commission to be received. Ferrari Group is generally the principal when transport services are provided. Under the typical payment terms of our customer contracts, customers pay at periodic intervals, which are generally 90 days, for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our contracts with customers. Government grants Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. Government grants are recognised in income statement, in “Other income”, on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate. Government grants related to investments are recognised as deferred income that is recognised in the income statement progressively on a systematic basis over the useful life of the related investment. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in income statement in the period in which they become receivable. The Group received different grants according to the various jurisdictions in which the different companies of the Group operate. For 2024 the main government grants are related to tax reimbursement for VAT and taxes on salary. Costs Costs are recognised net of returns and discounts in accordance with the accrual principle. Costs for services are recorded on an accrual basis and over time as the service is performed by from the supplier. The costs for purchases of raw materials are recorded point in time when all risks and benefits have been transferred, which normally coincides with the shipment of the goods. Finance income and expenses Finance income and expenses are recognised on an accrual basis and include: interest earned on related financial assets and incurred on related financial liabilities using the effective interest rate method, foreign exchange and financial instrument gains and losses. I ncome taxes Income taxes include all the taxes calculated on the assessable income of the companies of the Group. Current and deferred tax are recognised in income statement, except when they relate to items that are Page 78 of 139 recognised in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognised in other comprehensive income or directly in equity respectively. - Current tax: the tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. - Deferred tax: Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, a deferred tax liability is not recognised if the temporary difference arises from the initial recognition of goodwill. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Dividends Dividends payable by the Group are reported as a change in equity in the period in which they are approved by shareholders or the Board of Directors as applicable under local rules and regulations. Share (basic and diluted) Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Page 79 of 139 Property, plant and equipment Property, plant and equipment is initially recognised at cost of acquisition or production cost. Cost of acquisition 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 management, and capitalised borrowing costs. Property, plant and equipment is presented net of accumulated depreciation, calculated on the basis of the useful lives of the assets, and any impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Property, plant and equipment Depreciation rate Lands No depreciation Buildings 5% Leasehold improvements Over the life of the lease or the estimated useful life of the assets, Other tangible assets whichever is shorter (including technical installations and machinery, Straight line basis using the percentage rate provided by the local Industrial and commercial equipment and other tangible assets). subsidiary (10%-20%) Freehold land is not depreciated. If the asset being depreciated consists of separately identifiable components whose useful life differs 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.” Goodwill Goodwill is initially recognised and measured as set out in the ‘Business combinations’ paragraph. Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash-generating units) expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the income statement on disposal. Goodwill is stated at cost less accumulated impairment losses. Impairment of goodwill CGUs (or groups of CGUs) to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, in order to verify that the recoverable amount of the CGU (or groups of CGUs) is not less than the carrying amount of the CGU (or groups of CGUs). The recoverable amount of all CGUs and groups of CGUs is based on a value in use calculation which uses Page 80 of 139 cash flow projections based on most recent budget forecast calculations, which are prepared separately for each CGU. These budget and forecast calculations generally cover a period of three years. A long-term growth rate is calculated and applied to project future cash flows after the third year. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Intangible assets Intangible assets acquired separately from a business are capitalized at cost. Intangible assets acquired as part of a business combination are capitalized separately from goodwill if the fair value can be measured reliably on initial recognition. The carrying value of intangible assets are reviewed for impairment on an annual basis for events or changes in circumstances that indicate that the carrying value may not be recoverable. Intangible assets are stated at cost or fair value on recognition less accumulated amortization and any impairment in value. The gains or losses recognised in income statement arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period. Intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in income statement when the asset is derecognised. Amortization is calculated to write-off the cost or valuation of intangible assets over their estimated useful lives, using the straight-line method, on the following bases: Intangible Assets Amortization method Other intangible assets 20% Intellectual property rights 20% Concessions, licenses and similar rights 10%-20% Intangible assets under constructions Not amortized Page 81 of 139 Leases The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the Consolidated Statement of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. The incremental borrowing rate depends on the term, currency and start date of the lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates; a country-specific risk adjustment; a credit risk adjustment based on bond yields; and an entity-specific adjustment when the risk profile of the entity that enters into the lease is different to that of the Group and the lease does not benefit from a guarantee from the Group. Lease payments comprise of (1) fixed payments less any lease incentives receivable, (2) variable lease payments that depend on an index or a rate, (3) amounts expected to be paid under residual value guarantees, (4) exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and (5) any anticipated termination penalties. Lease liabilities are measured at amortized cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to income statement if the carrying amount of the right-of-use asset is fully written down. The lease liability is presented as a separate line in the Consolidated Statement of financial position. Impairment of property, plant and equipment, right-of-use and intangible assets with a finite useful live At each reporting date or in the presence of impairment indicators, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Page 82 of 139 Factors considered important that could trigger an impairment review of property, plant and equipment, right-of-use and intangible assets include, but are not limited to, the following: - significant underperformance relative to the historical or projected future operating results; - significant changes in the manner of the use of the acquired assets or the strategy of the overall business; and - significant negative industry or economic trends. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash- generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in income statement, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease and to the extent that the impairment loss is greater than the related revaluation surplus, the excess impairment loss is recognised in income statement. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in income statement to the extent that it eliminates the impairment loss which has been recognised for the asset in prior years. Any increase in excess of this amount is treated as a revaluation increase. Impairment of investments in Associated and Joint ventures If there is objective evidence that the Group’s net investment in an associate or joint venture is impaired, the requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group’s investment. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. Page 83 of 139 Financial assets Presentation Current financial assets include trade receivables, current assets, other current receivables and cash and cash equivalents. Non-current financial assets include investments accounted for using the equity method as well as other- non-current assets and non-current receivables. Measurement Financial assets are initially recognised at the fair value of the consideration paid. After the initial recording, the financial assets are measured in relation to their use. The classification of financial assets depends on the business model within which the financial instruments are held and their contractual cash flow characteristics, relevant to determining whether they are to be measured at amortised cost or fair value. In particular, the Group measures its financial assets at amortised cost if both the following conditions have been met: - the asset is held within a business model whose objective is the collection of the contractual cash flows; and - the contractual conditions give rise to cash flows that are solely payments of principal and interest. Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVTOCI): - the financial asset is held within a business model whose objective is achieved through the collection of the contractual cash flows and the sale of the financial assets; and - the contractual terms of the financial asset give rise, on specific dates, to cash flows representing solely payments of principal and interest. Financial assets at fair value through other comprehensive income mainly include equity investments which the consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. On a residual basis, all other financial assets are designated at fair value through income statement (FVTPL). Financial assets in currencies other than the functional currency are accounted for in Euro at the spot exchange rate on the transaction date and subsequently translated at the reporting date exchange rate with unrealised exchange differences recorded in income statement. Derecognition The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for any obligations created or retained. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Page 84 of 139 On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit and loss. In addition, on derecognition of an investment in a debt instrument classified as FVOCI, the cumulative gain or loss previously accumulated in the investment revaluation reserve within other comprehensive income/(loss) is reclassified to income statement. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at amortized cost or at FVOCI, trade receivables and other receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime expected credit losses (ECL) for trade receivables and other receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate . Other non-current assets - other deposit Other deposit includes bank deposit related the seized cash in connection with an ongoing investigation of the Public Prosecutor's Office of Busto Arsizio on Ferrari S.p.A.. The tax deposit is considered an asset as it gives a right to obtain future economic benefits, either by receiving a cash refund or by using the payment to settle the potential tax liability. The nature of the tax deposit, whether voluntary or required, does not affect this right and therefore does not affect the conclusion that there is an asset. The right is not a contingent asset as defined by IAS 37 because it is an asset, and not a possible asset, of the Group. Inventories Inventories are recognized at the lower of cost and net realizable value. Costs incurred in bringing each product to its present location and condition are determined on a first in first out basis and comprise purchase cost, but excluding borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business and the estimated costs necessary to make the sale. Inventories are presented net of provisions for slow moving and obsolete inventories. Trade receivables Trade receivables are amounts due from clients for goods sold or services provided in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any loss allowances. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term deposits. Short-term deposits are defined as deposits with an initial maturity of three months or less. Page 85 of 139 Financial liabilities Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. - Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group (such as ordinary shares) are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in income statement on the purchase, sale, issue or cancellation of the Company’s own equity instruments; - Financial liabilities Financial liabilities include borrowings and bank overdrafts, lease liabilities, trade and other payables. Financial liabilities are initially recognized at fair value net of transaction costs. Subsequent to initial recognition, financial liabilities are recognized using the amortized cost, using the effective interest rate. The Group derecognizes financial liabilities when obligations are discharged, cancelled, or expired. The difference between the consideration paid to derecognize the financial liability and its carrying amount is recognized in income statement. Employee benefits Defined benefit plans The Group’s net obligations are determined separately for each plan by estimating the present value 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 defined benefit obligations is measured using actuarial techniques and benefits are attributable to periods in which the obligation to provide post-employment benefits arise by using the Projected Unit Credit Method. Actuarial assumptions are based on management’s best estimates. The components of defined benefit cost are recognized as follows: - the service costs are recognized in the Consolidated Income Statement in the personnel cost line item; - the net interest expense on the defined benefit liability is recognized in the Consolidated Income Statement within financial expenses; - the remeasurement components of the net obligation, which comprise actuarial gain and losses, are recognized immediately in other comprehensive income. These remeasurement components are not reclassified in the Consolidated Income Statement in a subsequent period. Post-employment benefits include the Italian employee severance indemnity (“Trattamento di fine Rapporto” or “TFR”) obligation required under Italian Law. The amount of TFR to which each employee is entitled must be paid when the employee leaves the Group and is calculated based on the period of employment and the taxable earnings of each employee. Under certain conditions, the entitlement may be partially advanced to an employee during their working life. Page 86 of 139 Provisions for risk and charges Provisions are recognized when the Group has a present obligation that arises as a consequence of a past event, it is probable that an outflow of resources will be required to settle that obligation and the obligation can be reliably estimated. The provisions are measured as the estimated expenditure that will be required to settle such obligations as of the statement of financial position date taking into account the risks and uncertainties surrounding the obligation. Actualisation to the present value is used in the estimation process when the effect of the time value of money is material. Critical accounting judgements and key sources of estimation uncertainty In the application of the Group’s accounting policies, which are described in the paragraph “Material accounting policies”, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical judgements in applying the Group’s accounting Policies The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the Directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognized in the Consolidated Financial Statements. Control over Ferrari Express Inc. Ferrari Express Inc. is a subsidiary of the Ferrari Group PLC even though the Group has only a 50% ownership interest and of the voting rights in Ferrari Express Inc (“Ferrari Inc.”). The Directors of the Group assessed whether or not the Group has control over Ferrari Inc. based on whether the Group has the ability to direct the relevant activities of Ferrari Inc. unilaterally. In making their judgement, the Directors considered how the Group is exposed, or has rights, to variable returns from its involvement with Ferrari Inc. and has the ability to affect those returns through its power over Ferrari Inc. In making the assessment, management considered that Ferrari Group PLC has the rights of appointing the majority of the board of directors and key personal and the control over the decision making and operational activities of Ferrari Inc.. After the assessment, the Directors concluded that the Group has control over Ferrari Inc. If the Directors had reached a different conclusion Ferrari Inc. would instead have been classified as a joint venture and the Group would have accounted for it using the equity method. Page 87 of 139 Contingent liability In connection with the ongoing investigation into the alleged smuggling of luxury watches by former employees of Ferrari S.p.A. in 2020 and 2021 there is judgement regarding the classification of the potential liability due to the uncertain outcome of the investigation, with reference to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’. Following legal advice, the directors have determined that an adverse outcome is possible, but not more likely than not and for this reason the potential liability does not meet the recognition criteria for a provision. For further information on the on-going investigation please refer to the paragraph “36. Contingent liabilities”. Key sources of estimation uncertainty There are no key sources of estimation uncertainty at the reporting period, that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Page 88 of 139 Notes to the Consolidated Financial Statements 1. Revenues and segments information The Group operates in different countries with local subsidiaries in order to serve clients all over the world and local clients through local subsidiaries able to cover the provision of services in their local area. Amounts in € thousand For the year ended December 31, 2024 2023 Revenues 348,756 333,036 Total Revenues 348,756 333,036 The table below shows the revenues by type of service: Amounts in € thousand For the year ended December 31, 2024 2023 International services 230,484 221,980 Domestic Services 57,443 50,781 Warehouse & Logistics Services 22,293 18,414 Special and other services 38,536 41,861 Total Revenues 348,756 333,036 No single customer contributes more than 10 per cent to the Group’s revenue. Segment information Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. The Group has determined the operating segments based on the reports reviewed by the Board of Directors, which is considered the Chief Operating Decision Maker (“CODM”) as defined under IFRS 8— Operating Segments (“IFRS 8”), for the purposes of allocating resources and assessing the performance of the Group. The Group is organised into business units based on geographical areas and has four reportable segments: - Europe; - Asia; - North America and Brazil (NAM and Brazil); - Rest of the world. All the segments provide all types of services that the Group offers to clients. Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (“Adjusted EBITDA”) is the key profit measure used by the CODM to assess performance and allocate resources to the Group’s operating segments, as well as to analyse operating trends, perform analytical comparisons and bench performance between periods and among the segments. Adjusted EBITDA is calculated as profit before taxes excluding finance income, finance expenses, depreciation and amortisation, provision for risks, exchange losses, results from investments accounted for Page 89 of 139 using the equity method adjusted for gains and expenses, that are significant in nature and management considers not reflective of underlying operating activities (listing costs). Transactions between segments are executed on commercial terms that are normal in the respective markets and primarily relate to intersegment sales. The accounting policies of the reportable segments are the same as the Group’s accounting policies described above. No measures of assets or liabilities by segment are reported to the CODM. Therefore, the related information is not provided. The following tables summarize selected financial information by segment for year ended December 31, 2024 and 2023: Europe Asia NAM Rest of Intercompany Consolidated Amount in € thousand & Brazil the world elimination 2024 2024 2024 2024 2024 2024 Revenues 216,310 75,012 56,215 47,024 (45,806) 348,756 Adjusted EBITDA 59,417 12,256 6,852 13,535 321 92,381 Depreciation & Amortisation (17,355) Provision for risks (1,837) Finance income 1,672 Finance expenses (1,656) Exchange losses (1,233) Result from investments accounted for using the equity method 834 Profit before taxes 72,806 Europe Asia NAM Rest of Intercompany Consolidated Amount in € thousand & Brazil the world elimination 2023 2023 2023 2023 2023 2023 Revenues 204,158 76,365 53,651 40,453 (41,591) 333,036 Adjusted EBITDA 50,272 18,153 10,069 11,602 (70) 90,025 Listing costs (3,259) Depreciation & Amortisation (13,632) Provision for risks (145) Finance income 1,238 Finance expenses (2,314) Exchange losses (802) Result from investments accounted for using the equity method 951 Profit before taxes 72,062 Page 90 of 139 The following tables provide a breakdown of revenues by geographic area for the year ended December 31, 2024 and 2023: Amounts in €/000 For the year ended December 31, 2024 2023 Europe 203,386 191,748 of which UK - - of which Italy 63,682 63,737 of which Switzerland 61,158 61,289 of which France 31,401 29,503 Asia 58,347 61,182 of which Hong Kong 19,609 20,959 of which China 15,761 17,613 of which Singapore 6,793 8,185 NAM & Brazil 47,516 45,269 of which USA 43,124 41,344 of which Brazil 3,611 2,793 Rest of world 39,507 34,837 of which UAE 26,056 23,819 of which India 7,376 7,605 Total Revenues 348,756 333,036 The following tables summarize non-current assets (other than financial instruments and deferred tax assets) by geography as of December 31, 2024 and 2023: Amounts in €/000 As of As of December 31, 2024 December 31, 2023 Europe 45,032 33,604 of which UK 11,562 2,919 of which Italy 10,210 9,712 of which France 5,899 4,763 of which Switzerland 5,256 4,655 of which Germany 5,229 4,763 Asia 12,168 12,890 of which Hong Kong 4,134 4,665 of which Mainland China 3,687 3,650 of which Singapore 1,926 1,865 of which South Korea 1,145 1,324 NAM & Brazil 12,448 10,733 of which USA 11,528 9,877 Rest of world 2,030 1,497 of which UAE 841 814 of which Australia 584 33 of which India 274 294 of which Botswana 199 251 Total non-current assets (other than financial instruments and deferred tax assets) 71,678 58,724 Page 91 of 139 2. Other income The table below provides a breakdown for “Other income”: Amounts in € thousand For the year ended December 31, 2024 2023 Public grant 1,457 2,121 Reversal of trade receivable impairment 1,725 379 Insurance refunds 771 407 Capital Gain 293 205 Other 1,864 1,085 Total Other Income 6,110 4,197 Public grants are operating subsidies received by the group's various subsidiaries around the world. The main part (Euro 1,275 thousand) are grants obtained in China under which the Group can seek partial reimbursement of the VAT import taxes paid on certain goods in previous year. 3. Purchase of goods The table below provides a breakdown for “Purchase of goods”: Amounts in € thousand For the year ended December 31, 2024 2023 Fuel 2,588 2,296 Packaging 1,350 1,189 Goods 794 987 Consumables 702 747 Stationery 338 298 Total Purchase of goods 5,772 5,517 4. Cost for services The following table provides a breakdown for costs for services: Amounts in € thousand For the year ended December 31, 2024 2023 Shipping costs 119,907 117,164 Insurance expenses 9,582 7,932 Legal and administrative consultancy fees 5,649 7,275 Utilities and other office expenses 4,204 5,526 Other motor vehicle expenses 5,919 4,540 Total Costs for services 145,261 142,437 Page 92 of 139 5. Personnel costs The table below provides a breakdown for “Personnel costs”: Amounts in € thousand For the year ended December 31, 2024 2023 Salaries and wages 86,575 78,346 Social contributions and pension plans 17,142 15,303 Other personnel costs 3,671 3,650 Total Personnel costs 107,388 97,299 The average number of employees (directly employed by the subsidiaries of the Group) for the FY2024 is 2,021 (1,859 in FY2023). Below is reported the split of the Group’s employees as of December 31, 2024: Unit As of December 31, 2024 2023 Europe 981 930 Asia 761 730 NAM 199 176 Rest of the world 143 124 Total employees 2,084 1,960 Average FTE for the year 2,022 1,859 The Group did not pay any of the Directors any remuneration for the financial year ended 31 December 2024, because those other Directors were not employed by the Group. Instead, Alessandro Nicolo’ Ugo and Maria Isabella La Forgia were employed and remunerated by Deiana Holding Limited, the ultimate parent of the group, and not recharged while Corrado Deiana only received financial compensation by means of dividends distributed to him by the Selling Shareholder. As the Non-Executive Directors were appointed with effect from the Admission, the Group did not pay any of the Non-Executive Directors any remuneration for the financial year ended 31 December 2024. Please refer to the “Remuneration Report” for more information about Directors’s remuneration. 6. Other operating costs The table below provides a breakdown for “Other operating costs”: Amounts in € thousand For the year ended December 31, 2024 2023 Sundries Expenses 1,073 2,109 Office Supplies and other office expenses 1,114 1,154 Other taxes and penalties 505 821 Losses on trade receivables 761 40 Gifts, hospitality and donations 229 277 Total Other Operating expenses 3,682 4,401 Page 93 of 139 7. Finance income The table below shows the “Finance income” for the years 2024 and 2023: Amounts in € thousand For the year ended December 31, 2024 2023 Interest from bank deposit 1,662 1,055 Investments in mutual funds - Fair values adjustments 10 183 Total Finance income 1,672 1,238 8. Finance expenses The table below shows the “Finance expenses” for the years 2024 and 2023: Amounts in € thousand For the year ended December 31, 2024 2023 Expense of repurchase of usufruct of shares - 1,032 Bank interest expenses 34 362 Interest expense related to lease liabilities 1,131 734 Bank accounts interests 174 161 Other interest and other financial expenses 317 25 Total Finance expenses 1,656 2,314 The Finance expenses for both the 2024 and 2023 refer to interest on borrowing, interest for lease liabilities, interest costs for employee benefits. Interest expenses is calculated on the value of the related financial liabilities at the effective interest rate. In 2023 the “Expense of repurchase of usufruct of shares” refers to the amount paid to Mrs. Miranda Ferrari to acquire her right of usufruct on 390,000 shares of Ferrari S.p.A (corresponding to 19.5% of the total outstanding shares). 9. Exchange gain / (losses) The table below shows “Exchange gain / (losses)” for the years 2024 and 2023: Amounts in € thousand For the year ended December 31, 2024 2023 Exchange gain 1,211 452 Exchange (losses) (2,444) (1,254) Total Exchange (losses) (1,233) (802) The Group is most exposed to the following currencies: US Dollar, Hong Kong Dollar, Renminbi, Swiss Franc and United Arab Emirates Dirham. Page 94 of 139 10. Result from investments accounted for using the equity method The table below provides a breakdown for “Result from investments accounted for using the equity method”: Amounts in € thousand % % For the year ended December 31, in 2024 in 2023 2024 2023 Ferrari Express Ltd. 50% 50% 621 718 Bcube Luxury B.V. 40% 40% - - CDS S.r.l. 25% 25% (44) 17 Bin Yousef Luxury Cargo 49% 49% 257 216 Result from investments accounted for using the equity method 834 951 11. Income taxes The following table provides a breakdown for income taxes: Amounts in € thousand For the year ended December 31, 2024 2023 Current Tax expense 15,377 14,927 Deferred Tax expense 132 235 Total Income taxes 15,509 15,162 The table below provides a reconciliation between actual income taxes and the tax based on the Company’s UK domestic tax rate. The standard rate of corporation tax applied to reported profit is 25.0 per cent (2023: 25.0 per cent). Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The charge for the year can be reconciled to the profit before tax as follows: Amounts in € thousand For the year ended December 31, 2024 2023 Profit before tax 72,806 72,062 Tax using the Company’s domestic tax rate of 25.0% (25.0% in FY2023) 18,202 18,016 Differences in overseas tax rates (2,825) (3,089) Total current tax expense 15,377 14,927 Origination and reversal of temporary differences 132 235 Total Deferred tax expense 132 235 Total Income taxes 15,509 15,162 Deferred taxes reflect the net tax effect of temporary differences between the book value and the taxable amount of assets and liabilities . Page 95 of 139 The following tables provide a breakdown for deferred tax assets and deferred tax liabilities: Amounts in € thousand As of Effects on Effects on As of December December 31, 2023 P&L OCI 31, 2024 Deferred Tax assets on provision and funds 429 34 - 463 Other 547 13 12 571 Total Deferred tax assets 976 47 12 1,034 Investments accounted for using equity method (1,719) (207) - (1,926) Employee benefits (41) 12 (4) (33) Temporary differences on Capital gains (26) 8 - (18) Other Deferred tax liabilities (117) 9 (14) (122) Total Deferred tax liabilities (1,903) (179) (18) (2,099) 12. Earnings per share and dividends Basic and Diluted earnings per share are calculated by dividing the profit for the year attributable to the shareholders of the Company by the weighted average number of ordinary shares (basic and diluted) outstanding of the Company. Diluted earnings per share is equal to basic earnings per share as there were no potentially dilutive instruments for the periods presented. The following table summarizes the amounts used to calculate basic and diluted earnings per share: Amounts in Euro For the year ended December 31, Profit attributable to shareholders of the Parent Company for basic 2024 2023 55,461,699 52,888,003 and diluted No of shares as of 31 December 2024 - £ 1 each 77,045,804 77,045,804 Earnings per Share basic and diluted as of reporting date 0.72 0.69 Diluted earnings per share is equal to basic earnings per share as there were no potentially dilutive instruments for the periods presented. Shares are in GB pounds as at 31 December 2024 and were renominated in Euro after the reporting period. The dividends paid in the year relates to the 2023 year-end dividend. Euro 19,544 thousand was paid to Group shareholders. The remaining 2023 dividend remains unpaid and is held as a dividend payable of Euro 5,456 thousand to Deiana Holding Limited (see note 32). The Directors declared a final dividend for 31 December 2023 of EUR 25,000,000, which equated to a dividend per share of Euro 0.32 based on the number of shares as of December 31, 2024 which will equate to a dividend per share of €0.27 based on the number of shares post Admission of 91,300,000 (see note 43). Page 96 of 139 13. Goodwill The carrying amount of goodwill has been allocated to CGUs as follows: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Ferrari Logistics Germany 117 117 Ferrari DVS 144 144 Ferrari S.p.A. 823 823 AF Secure Ferrari India 161 161 Ferrari Logistics China 271 271 Ferrari Logistics Malaysia 389 389 Ferrari Logistics Hong Kong 512 512 Goodwill 2,417 2,417 There were no changes in goodwill during the financial year 2024. Each subsidiary represents an independent CGU to which the financial plans refer. The data contained in the financial plans, approved by the Board of Directors autonomously and in advance of the approval of the Consolidated Financial Statements, was used as the basis for calculation. The economic and financial plan of each CGU highlights the results expected from each entity. The recoverable value is represented by the present value of future cash flows that are estimated will derive from the continuous use of the related assets to the CGU, both for the period of explicit flows and .at the end of the forecast time horizon explicit (based on the determination of the “terminal value”) using a rate of growth (g-rate) equal to 1%. The cash flows as determined above had been discounted at a pre-tax nominal WACC rate. The WACC was estimated using the risk-free rate adjusted to neutralize the monetary policies implemented in recent years by the European Central Bank. The main assumptions to calculate the recoverable amount are the following: - Terminal value: determined using the perpetuity method at a long-term growth rate which represents the present value, at the last year of projection, of all expected future cash flows; - Discount rate: the rate used to discount cash flows was calculated using the weighted average cost of capital (WACC) pre-tax. For the 2024 impairment test, the WACC used for discounting purposes ranged between 8.74% and 12.69% (between 9.06% and 14.26% in 2023). The WACC was calculated for each CGU and group of CGUs subject to impairment, considering the parameters specific to the geographical area: market risk premium and sovereign bond yield. - EBITDA CAGR: see table below for the EBITDA compound annual growth rate (CAGR) assumptions utilized to calculate the expected future cash flows. The calculation of value in use for all CGUs and groups of CGUs is most sensitive to the following assumptions: - Discount rate; - Growth rates used to extrapolate cash flows beyond the forecast period; - EBITDA CAGR Page 97 of 139 With regard to the CGUs a sensitivity analysis of the results was also carried out by varying the discounting rates and g-rate applied between +1%/-1%: this analysis did not reveal any impairment with reference to the amount of goodwill recognized. Based on the analysis performed, no impairment of goodwill was recognized for the year ended December 31, 2024. All the investments were made for strategic reasons in the view of expanding the services provided in the relevant countries. 14. Intangible assets The following table provides a breakdown for intangible assets: Intellectual Concessions, Other Total Amounts in € thousand property licenses and intangible Intangible rights similar rights assets assets Historical cost Balance as of December 31, 2022 225 169 968 1,362 Additions - - 2,990 2,990 +/- reclassification - - 145 145 Exchange difference and other changes - - 4 4 Balance as of December 31, 2023 225 169 4,107 4,501 Additions 6 1 4,097 4,104 Exchange difference and other changes - - 134 134 Balance as of December 31, 2024 231 170 8,338 8,739 Accumulated amortization Balance as of December 31, 2022 (91) (145) (655) (891) Amortization (42) (9) (76) (127) Balance as of December 31, 2023 (133) (154) (731) (1,018) Amortization (37) (9) (84) (130) Balance as of December 31, 2024 (170) (163) (815) (1,148) Carrying amount at: December 31, 2023 92 15 3,376 3,483 December 31, 2024 61 7 7,523 7,591 The “Intellectual property rights” includes only the costs for the licensing of software programs used by the Group companies. The “Other intangible assets” mainly refers to the investments made in the digital transformation project that is an asset under construction and therefore not amortised. Page 98 of 139 15. Property, plant and equipment The following table provides a breakdown for property, plant and equipment: Technical Industrial Total Lands and installations and Leasehold Other Property Amounts in € thousand buildings and commercial improvements tangible Plant machinery equipment assets and Equipment Historical cost Balance as of January 1, 2023 6,208 2,704 3,601 3,587 21,374 37,474 Additions - 369 547 1,772 6,811 9,499 Disposals - (7) - (7) (881) (895) +/- reclassification - 48 - (314) (140) (406) +/- Other exchange rate (198) 16 (43) (86) (319) (630) Balance as of December 31, 2023 6,010 3,130 4,105 4,952 26,845 45,042 Additions - 364 508 2,719 4,988 8,579 Disposals - (8) (15) (35) (486) (544) +/- reclassification - 974 - 700 (1,674) - +/- Other exchange rate 352 87 108 92 833 1,472 Balance as of December 31, 2024 6,362 4,547 4,706 8,428 30,506 54,549 Accumulated depreciation Balance as of January 1, 2023 (2,402) (2,047) (2,091) (1,388) (13,867) (21,795) +Yearly Depreciation (181) (308) (187) (447) (2,965) (4,088) - Disposal - 7 - 5 840 852 +/- reclassification - 95 - 129 37 261 +/- Other exchange rate 83 (8) 5 25 208 313 Balance as of December 31, 2023 (2,500) (2,261) (2,273) (1,676) (15,747) (24,457) +Yearly Depreciation (185) (381) (195) (766) (3,578) (5,105) - Disposal - - 15 - 161 176 +/- reclassification - - - (54) 54 - +/- Other exchange rate (160) 8 21 (87) (330) (548) Balance as of December 31, 2024 (2,845) (2,634) (2,432) (2,583) (19,441) (29,934) Carrying amount at: December 31, 2023 3,510 869 1,832 3,276 11,098 20,585 December 31, 2024 3,517 1,913 2,274 5,845 11,065 24,615 - “Lands and buildings” includes warehouses and offices; - “Technical Installations and Machinery” includes mainly alarm systems and vault installations; - “Industrial and Commercial equipment” includes warehouses equipment; - “Leasehold improvements” includes mainly the improvements made by the Group on the building in rent; - “Other tangible assets” includes furniture and furnishings for offices and warehouse, warehouse equipment, shelving, electronic office machines, vehicles, cars and assets under constructions, therefore not depreciated, for Euro 200 thousand as at December 31, 2024. Page 99 of 139 16. Right-of-use assets and lease liabilities The following table provides a breakdown for right-of-use assets: Land and Plant and Commercial and Other Amounts in €/000 Building machinery industrial tangible Total equipment assets Historical cost Balance as of December 31, 2023 54,712 11 163 7,665 62,551 Additions 14,610 - - 1,914 16,524 Disposals (86) - - - (86) Exchange difference and other changes 586 - - 1 589 Balance as of December 31, 2024 69,822 11 163 9,580 79,576 Accumulated depreciation Balance as of December 31, 2023 (26,298) (4) (124) (5,447) (31,873) Depreciation (11,062) (2) (26) (1,030) (12,120) Exchange difference and other changes (167) - - (4) (171) Balance as of December 31, 2024 (37,527) (6) (150) (6,481) (44,164) Carrying amount at: December 31, 2023 28,414 7 39 2,218 30,678 December 31, 2024 32,295 5 13 3,099 35,412 The following table provides a breakdown for lease liabilities: Amounts in € thousand December December 31, 2024 31, 2023 Non-current lease liabilities 24,606 21,171 Current lease liabilities 11,734 9,860 Total lease liabilities 36,340 31,031 The following table provides the detail of the expense relating to leases of low-value assets accounted during the years ended December 31, 2024 and 2023: Amounts in € thousand For the year ended December 31, 2024 2023 Lease and rental 2,013 2,116 Total lease and rental 2,013 2,116 The table below shows the changes occurred in “Lease liabilities”: Amounts in € thousand December December 31, 2024 31, 2023 Opening balance 31,031 23,014 Additions due to new leases and renewals 16,524 17,757 Principal repayment of lease liabilities (11,545) (9,145) Lease cancellations (86) (473) Other movements (exchange difference) 416 (122) Closing Balance 36,340 31,031 Page 100 of 139 The following tables summarize the Group’s lease liabilities into relevant maturity groupings based on their contractual maturities: As of As of Amounts in € thousand December December 31, 2024 31, 2023 within 1 year 11,734 9,860 1 y < x < 5 y 23,720 20,491 over 5 y 886 680 Total lease liabilities 36,340 31,031 17. Investments accounted for using the equity method Set out below are the associates of the Group as of December 31, 2024 and 2023 which, in the opinion of the Directors, are material to the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. These associates are accounted in the Consolidated Financial Statements using the equity method. Country & % % Name Principle place December December Principal activity of business 2024 2023 Ferrari Express Ltd. UK 50% 50% Freight transport Bcube Luxury B.V. Netherland 40% 40% Freight transport CDS S.r.l. Italy 25% 25% Freight transport Bin Yousef Luxury Cargo Qatar 49% 49% Freight transport The summarised financial information below represents amounts in associates’ financial statements prepared in accordance with IFRS adjusted by the Group for accounting purposes. As of December 31, 2024 Amounts in € thousand Ferrari Bcube CDS Bin Youssef Express Ltd. Luxury B.V. S.r.l. Luxury Non-current assets 1,124 - 631 3 Current assets 7,228 10 4,231 486 Non-current financial liabilities - - (221) - Current financial liabilities - - (682) - Current liabilities (3,639) (5) (2,745) (1,084) Amounts in € thousand Ferrari Bcube CDS Bin Youssef Express Ltd. Luxury B.V. S.r.l. Luxury Revenue 18,876 - 9,583 1,738 Profit / (loss) for the year and total 1,242 (26) 152 524 comprehensive income Page 101 of 139 Changes during the period to investments in businesses accounted for by the "equity method" were as follows: As of December 31, 2024 Adjustment to "shareholders' equity" Carrying amount Exchange Carrying amount Amounts in € thousand as of Profit/(loss) Dividends difference as of December 31, 2023 December 31, 2024 Ferrari Express Ltd. 4,259 621 - 218 5,098 Bcube Luxury B.V. 306 - - - 306 CDS S.r.l. 346 (44) - 3 305 Bin Youssef Luxury 349 257 (225) 30 411 Total 5,260 834 (225) 251 6,120 18. Non-current receivables The following table provides a breakdown for other non-current assets: Amounts in € thousand As of As of December December 31, 2024 31, 2023 Non-current tax receivables 1,643 1,561 Non-current receivables from personnel 371 70 Non-current receivables from others 73 89 Non-current receivables 2,087 1,720 19. Other non-current assets The following table shows the changes occurred in other non-current assets: Amounts in € thousand Bank deposit Rental Investments Other Carnet Investments Other (maturity Deposit in mutual Deposits IATA in Other non-current date over funds deposit Companies assets 1 year) January 1, 2023 1,729 1,989 1,698 903 547 46 6,912 Increase (+) 1,356 578 - 70 59 10 2,073 Decrease (-) (1,224) (537) - (336) (415) - (2,512) Fair value adjustment (+/-) - - 183 - - - 183 Other (+/-) (69) (240) (68) 191 (47) - (233) December 31, 2023 1,792 1,790 1,813 828 144 56 6,423 Increase (+) 1,367 353 1,863 9,598 14 13,195 Decrease (-) (902) (95) - (1,268) (149) - (2,414) Fair value adjustment (+/-) - - 8 - - - 8 Other (+/-) 2,618 1 (2,465) 32 5 - 191 December 31, 2024 4,875 2,049 1,219 9,190 - 70 17,403 “Other (+/-)” includes both reclassification and translation exchange effects. “Other deposits” includes bank deposit for Euro 8.480 thousand related the seized cash held in the restricted current account, in connection with an ongoing investigation of the Public Prosecutor's Office of Busto Arsizio on Ferrari S.p.A.. This amount was transferred from Ferrari S.p.A.’s bank account to a bank account in the name of Fondo Unico di Giustizia (the Italian Ministry of Justice), where it will be held until Page 102 of 139 the investigation is completed, at which time it will be transferred to the relevant party. For further information please refer to the paragraph “37. Contingent liabilities”. 20. Trade receivables Trade receivables comprise the following: Amounts in € thousand As of December As of December 31, 2024 31, 2023 Trade receivables 82,255 99,511 Loss allowance (6,040) (8,058) Trade receivables 76,215 91,453 Included within trade receivables is €3,474 thousand (€16,540 thousand in 2023) from related parties. See note 38 for further details. These are reported net of the provision for doubtful debt that reflects the estimated losses in connection with the Group’s credit portfolio. Changes in the Loss allowance during the years 2024 and 2023 are shown below: Amounts in € thousand Loss Allowance Balance as of January 1, 2023 8,088 Provisions (+) 813 Utilizations (-) (608) Release (-) (379) Translation effects (+/-) 144 Balance as of December 31, 2023 8,058 Provisions (+) 382 Utilizations (-) (757) Release (-) (1,688) Translation effects (+/-) 45 Balance as of December 31, 2024 6,040 The following table shows trade receivables by geographic area: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Europe 47,264 62,448 Asia 11,406 10,952 NAM & Brazil 9,074 10,640 Rest of word 8,471 7,413 Trade receivables 76,215 91,453 21. Current assets The following table provides a detail for current assets: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Bank deposit 8,946 6,654 Current assets 8,946 6,654 Page 103 of 139 22. Other current receivables The following table provides a breakdown for other current receivables: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Accrued income and deferred expenses 4,184 3,802 Other receivables (advances or other) 5,760 2,382 Receivables towards tax authorities for VAT 1,953 1,605 Customs advances for VAT and duties 1,464 1,305 Guarantee deposits towards Dubai Court - 973 Other receivables towards tax authorities 110 804 Receivables towards personnel and directors 1,225 108 Other current receivables 14,696 10,979 23. Cash and cash equivalents Cash and cash equivalents refer to current account deposits held at banks: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Bank and postal accounts 115,567 98,465 Cash and cash equivalents 232 312 Cash and cash equivalents 115,799 98,777 The item comprises cash and cash equivalents recognised in the financial statements of the consolidated companies. There are no restrictions to the use of cash and cash equivalents. Page 104 of 139 24. Share Capital On December 31, 2024, share capital is authorised, wholly subscribed and paid and amounts to Euro 85,843 thousand and it is divided into 77,045,804 shares with a nominal value of GBP 1.00 each (equal to Euro 85,843 thousand). Table below, shows a reconciliation between the number of ordinary shares as of December 31, 2024 and 2023: No. of As of No. of As of December December Shares 31, 2024 Shares 31, 2023 Amounts in € thousand Amounts in € thousand Issued and fully paid At 1st January 77,046 85,843 77,046 85,843 New issues of share capital - - - - At December 31 77,046 85,843 77,046 85,843 Issued and Unpaid At 1st January - - - - New issues of share capital - - - - At December 31 - - - - Total Issued share capital 77,046 85,843 77,046 85,843 All issued share capital is classified as equity. Following 31 December 2024, a redenomination, consolidation and subdivision of the share capital of the Company was implemented pursuant to a resolution of 29 January 2025, so that the currency denomination of the Ordinary Shares is reflected in euro ahead of the Admission. On 13 February 2025, all Ordinary Shares were admitted to listing and trading on Euronext Amsterdam, and Deiana Holding Limited offered 22,825,000 Ordinary Shares, with an additional 3,327,620 Ordinary Shares after settlement of the over-allotment option granted to the underwriters to the offering. (see note 43). Page 105 of 139 25. Non-controlling interests Non-controlling interest on December 31, 2024 amounts to Euro 11,988 thousand (Euro 11,032 as of December 31, 2023). In particular, this account is composed of non-controlling interest of: - Ferrari Expeditions France S.A. equal to 0.13% of third parties (dividends paid to non-controlling interests in 2024 equal to Euro 2 thousand, Euro 1 thousand in 2023); - Ferrari Global Services equal to 0.13% of third parties; - Ferrari Securitè France equal to 0.13% of third parties; - Ferrari Protection equal to 49% of third parties (dividends paid to non-controlling interests in 2024 equal to Euro 155 thousand); - Ferrari Logistics Asia (Thailand) Ltd. equal to 28.46% of third parties; - Modi Corporation Ltd. equal to 51% of third parties; - Ferrari Express Inc. equal to 50% of third parties (dividends paid to non-controlling interests in 2024 equal to Euro 963 thousand, Euro 690 thousand in 2023); - Ferrari Express Logistica e Transporte do Brasil LTDA equal to 50% of third parties; - Ferrari Canada equal to 50% of third parties. Shareholders' Equity attributable to Profit attributable to the non-controlling interests non-controlling interests as of December as of December For the year ended Entity 31, 2024 31,2023 December 31, December 31, 2024 2023 Ferrari Express Inc. 9,530 9,014 1,063 3,440 Ferrari Express Logistica e Transporte do Brasil LTDA 1,040 668 603 408 Ferrari Canada Inc. 338 313 25 (0) Ferrari Logistics Asia (Thailand) Ltd. 1,057 827 165 71 Modi Corporations Ltd. 2 2 (1) (3) Ferrari Expeditions France S.A. 13 14 1 3 Ferrari Global Services 1 1 0 0 Ferrari Securitè France 1 0 0 0 Ferrari Protection 7 194 (21) 93 Total 11,989 11,033 1,835 4,012 26. Reserves Other reserves and are represented by the followings: - Retained earnings includes the net result of the year and the net results of past years, net of dividends paid to the parent company. - Foreign currency translation reserve represents the accumulated effects on shareholders' equity and on the result for the period arising from the conversion into the functional currency (Euro) of the financial statements prepared in foreign currencies of the different Ferrari Group entities. - Reserve for discounting Employee Severance indemnity includes the actuarial profit and loss relating to employee benefits. All the reserves changes are reported in the above reported consolidated statement of changes in equity. Page 106 of 139 27. Employee benefits Employee Benefits includes the payable for severance pay and the payable for severance indemnity of the Group accrued to the directors and employees of the Italian companies. The other companies do not recognize benefits to employees or other components attributable to long- term benefits. The table below shows the Employee benefits as of December 31, 2024 and 2023: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Employee benefits 2,543 2,415 Total Employee benefits 2,543 2,415 The table below shows changes in Employee benefits occurred in the TFR defined benefit obligations: Amounts in € thousand Employee benefits Balance as of December 31, 2023 2,415 + Current service costs 486 + Interests costs 54 (-) Benefits paid (396) +/(-) Actuarial gain and losses (16) +/(-) Exchange rate differences 0 Balance as of December 31, 2024 2,543 The following table summarizes the main financial assumptions used in determining the present value of the TFR: As of As of December December 31, 2024 31, 2023 Discount rate 2.93% 3.60% Mortality table ISTAT tables ISTAT tables Inflation rate 2.00% 2.30% Turnover rate 5.00% 5.00% The table below shows a sensitivity analysis of employee benefits valuation: Amounts in € thousand Annual discount Annual inflation Annual turnover rate rate rate +0.25% -0.25% +0.25% -0.25% +1.00% -1.00% Employee benefits - December 31, 2024 2,514 2,571 2,563 2,522 2,544 2,540 Employee benefits - December 31, 2023 2,324 2,379 2,372 2,332 2,355 2,347 Page 107 of 139 28. Provisions for risk and charges The table below shows changes in provisions for risk and charges: Amounts in € thousand Provision Provision Provision Provision Provision Non-Current related to related to for legal related to for storage Provisions personnel risk with expenses onerous - Germany Other risks for risk and bonus and Customers for claims contracts Law charges claims & Vendors December 31, 2023 159 35 107 40 36 624 1,001 Increase (+) 1,829 8 - - - - 1,837 Utilizations (-) - (45) - (40) (4) - (89) Releases (-) - - - - - (37) (37) Translation effects (+/-) 40 2 (2) - - (20) 20 December 31, 2024 2,028 - 105 - 32 567 2,732 The provisions include provisions for various litigated matters that have occurred in the ordinary course of business. 29. Non-current borrowings The following table shows the detail of “Non-current borrowings”: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Non-current portion of bank Loans 641 939 Total Non-Current borrowings 641 939 30. Current borrowings and bank overdrafts The following table shows the detail of “Current borrowings and bank overdrafts”: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Current portion of Bank Loans 533 678 Bank overdrafts 239 205 Total Current borrowings and bank overdrafts 772 883 The following table shows the detail of the changes in bank loans: As of As of Amounts in € thousand December December 31 2024 31 2023 Opening balance as of January 1 1,617 9,122 + Proceeds 223 209 - Repayments (737) (7,479) +/- Foreign currency exchange 71 (235) Balance at reporting date 1,174 1,617 Debt covenants None of Ferrari Group’s borrowings are subject to financial covenants. Page 108 of 139 31. Trade Payables The caption includes the amounts due for supplies for production and services received. The Group does not have any reverse factoring and/or supplier financing transactions with its suppliers. As of As of Amounts in € thousand December December 31, 2024 31, 2023 Trade payables 27,791 30,966 Total Trade payables 27,791 30,966 Included within trade payables is €4,749 thousand (€4,340 thousand in 2023) from related parties. See note 38 for further details. The following table shows trade payables by geographic area: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Europe 18,656 21,480 Asia 2,764 2,814 NAM & Brazil 3,962 4,935 Rest of word 2,409 1,737 Trade payables 27,791 30,966 32. Other Current Liabilities The following table provides a breakdown for other current liabilities: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Payables towards Customs for duties and VAT 8,973 10,438 Payables towards personnel (salary, holiday, bonus etc.) 5,006 7,627 Other payables and advances from customers 1,998 2,490 Due to Tax authorities for other taxes 2,485 2,006 Accrued expenses and deferred income 2,208 2,095 Payables towards Social institution 1,834 1,844 Dividend payables towards non-controlling interests 187 171 Damage to repay 423 38 Dividend payables towards Deiana Holding Limited 5,456 - Other current liabilities 28,570 26,709 Page 109 of 139 33. Current tax receivables and payables The following table shows the balance of current tax payables as of December 31, 2024: Amounts in € thousand As of As of December December 31, 2024 31, 2023 Current tax receivables 486 - Current tax payables - (8,715) Net current tax receivable/(debt) 486 (8,715) The current tax payables refer to the payables for income taxes on profits netted by the advances paid during the period. 34. Commitments and guarantees The parent company Ferrari Group PLC on October 28, 2024, signed a patronage letter valid from October 31, 2024 to October 31, 2025 for the mandatory insurance cover required by the Italian customs for the import/export operations up to a maximum of Euro 56,000 thousand. During 2021 the subsidiary Ferrari S.p.A. transferred to the related party (Deiana Group Immobiliare S.r.l.) both lands and the buildings owned and the related loan agreements. It should be noted that with reference to this loan Ferrari S.p.A. and the beneficiary company Deiana Group Immobiliare S.r.l. are jointly and severally liable. The aforementioned loan agreements have been early repaid during the months of July and August 2024 (Euro 2,478 thousand as of December 31, 2023). As at 31 December 2024, there is no outstanding commitment in relation to the loans. “Other non-current financial assets” includes bank deposit for Euro 8.480 thousand related to a restricted current account, in connection with an ongoing investigation of the Public Prosecutor's Office of Busto Arsizio on Ferrari S.p.A.. 35. Auditor’s remuneration The fees of the Group’s auditor for services provided are analysed below: Auditor Fee FY2024 Euro/000 Fees for audit of the Group's annual financial statement 860 Fees for audit of the Parent Company's annual financial statement 25 Total Audit Fees 885 Fees to the Group’s Auditor and their associates for other services: - Audit related services 600 - Other assurance services 75 Total Non-Audit Fees 675 Total Audit Remuneration 1,560 Non-audit fees relate to other sustainability and ISAE 3000 assurance, and audit related services in relation to the listing and the review of interim results. The 2023 audit fee payable to the predecessor auditor was Euro 20 thousand for the audit of the statutory Page 110 of 139 group financial statements. The company also paid a fee of Euro 215 thousand to Deloitte Italy for the non- statutory audit of the consolidated financial statements of Ferrari Group PLC. 36. Third party assets The Group holds goods owned by third parties at its operating locations in connection with transit operations. It should be noted that all goods in the warehouses are fully covered by an all-risk insurance policy. Based on the fact that the goods are owned by third parties, they are not included in the assets within the financial statement of the Group. 37. Contingent liabilities On 29 August 2024, Ferrari S.p.A. was notified of a preventive seizure order that was issued and executed at the request of the Public Prosecutor's Office of Busto Arsizio for an amount of approximately Euro 8.5 million (see note 19). This amount was transferred from Ferrari S.p.A.’s bank account to a bank account in the name of Fondo Unico di Giustizia (the Italian Ministry of Justice), where it will be held until the investigation is completed, at which time it will be transferred to the relevant party. The order relates to a preliminary investigation into the alleged smuggling of luxury watches by former employees of Ferrari S.p.A. in 2020 and 2021, which also resulted in alleged evasion of customs duties and VAT payable on those luxury watches by Ferrari S.p.A.. The investigation specifically concerns an alleged failure by Ferrari S.p.A. to adopt proper compliance monitoring procedures as required under Legislative Decree 231/2001. As of the date of this Annual Report, the outcome of this preliminary investigation is still pending. Upon its completion the Public Prosecutor is expected to issue a notice of completion of investigation to Ferrari S.p.A. in respect of its administrative liability according to Legislative Decree 231/2001. In such an event, Ferrari S.p.A. intends to defend its position before the Public Prosecutor. Following such defense, the Public Prosecutor may decide to proceed with the case or to dismiss it. On 10 December 2024 Ferrari S.p.A. received a report from the Italian Financial Police in which it informed Ferrari S.p.A. that it had completed the first phase of a customs duties and VAT audit. According to the report, the Italian Financial Police was notified of the investigation by the Public Prosecutor mentioned above, which identified Ferrari S.p.A. as the party liable for the payment of customs duties and VAT allegedly evaded such payments as the result of the alleged smuggling of luxury watches for a total amount of Euro 14.8 million. Furthermore, in relation to the criminal proceedings, in case of conviction of the Italian company a financial penalty of a maximum of approximately Euro 0.6 million, the related banning sanctions, that for their nature are deemed not affecting the normal course of business of the Italian subsidiary, as well as the confiscation of the profit of the crime for an amount of Euro 14.8 million may be applied in accordance with Legislative Decree 231/2001. Ferrari S.p.A. has engaged external legal counsel in Italy in respect of both of the above matters. Ferrari S.p.A. remains convinced that it has acted in compliance with applicable laws and regulations. The Italian subsidiary, with the support of its advisors, will defend itself in front of the competent authorities. Based on the stage of this matter, at this point of time the company, also based on the opinion of its external legal counsel, assessed the risk associated with the investigation as possible that Ferrari S.p.A. will be found liable, therefore in accordance with IAS 34 ‘Provisions, Contingent Liabilities and Contingent Assets’, a Page 111 of 139 contingent liability has been disclosed. Nevertheless, the Group will constantly monitor the subsequent events in order to assess any further impacts on its assessment. Page 112 of 139 38. Related parties Pursuant to IAS 24—Related Party Disclosures, the related parties of the Group are all entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries. In addition, members of the Board of Directors and executives with strategic responsibilities and their families are also considered related parties. Ferrari Group’s related parties are listed below: Related Parties Relationship Country Main business/activity Bcube Luxury BV Associate company Netherland Freight shipping CDS S.r.l. Associate company Italy Freight shipping Ferrari Express Ltd Associate company UK Freight shipping Bin Yousef Luxury Cargo Associate company Qatar Freight shipping Ferrari Logistics SAM Shareholders in common Monaco Freight shipping Regency Ltd Shareholders in common UK Freight shipping All Marks S.r.l. Shareholders in common Italy Hallmarking DMC S.p.A. Shareholders in common Italy Real estate Deiana Holding Limited Parent company of Ferrari Group UK Holding PLC Pelican Real Estate Co. Subsidiary of Deiana Holding Ltd USA Real estate Deiana Group Immobiliare S.r.l. Subsidiary of Deiana Holding Ltd Italy Real estate Ferrari Immogroup S.A. Subsidiary of Deiana Holding Ltd Switzerland Real estate Deiana Group Immobilier France S.a.s. Subsidiary of Deiana Holding Ltd France Real estate Deiana Real Estate España SLU. Subsidiary of Deiana Holding Ltd Spain Real estate Deiana Group RE (Hong Kong) Ltd Subsidiary of Deiana Holding Ltd Hong Kong Real estate Grosvenor Underwriting Ltd Subsidiary of Deiana Holding Ltd Guernsey Insurance Deiana Group Finance Ltd Subsidiary of Deiana Holding Ltd Ireland Financing Deiana Group Management System S.r.l. Subsidiary of Deiana Holding Ltd Italy Accounting & Finance Corrado Deiana Shareholders of Deiana Holding Ltd Marco Deiana Shareholders of Deiana Holding Ltd Dario Dino Ferrari Shareholders of Ferrari Express Inc. Stephen Grief Shareholders of Ferrari Express Ltd. Miranda Ferrari Other relationship Elena Tartara Close Family member 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 carried out by the Group with these related parties are of commercial and financial nature and, in particular, these transactions relate to: Chargeback of Headquarter expenses from the parent company / Deiana Holding Limited: - Expenses from the Parent Company (Deiana Holding Limited) related to some costs in common paid directly by the Parent company for the remuneration of personnel acting as Head quarter (directors, IT, finance and accounting etc), partially charged back to Ferrari Group PLC. Page 113 of 139 Commercial operations with Related parties/companies operating in Freight forwarding and other related services: - Both Revenues and expenses towards related parties referring to the normal course of operations with reference to the shipping of goods and other related services towards countries in which the Group operates through Joint ventures or associated Companies Transactions with Related parties operating in real estate business - lease agreements with the related parties operating in Real Estate business (subsidiaries of the parent company Deiana Holding Limited) for the use of buildings, including both warehouses and offices, accounted for in accordance with the IFRS 16 Lease. Transactions with Related parties operating in Insurance business - Expenses referring to the annual premium paid for the insurance in order to cover the first layer of the insurance policy useful to cover Ferrari Group and its subsidiaries by all the risks arising from its business. As of December 31, 2024 Related Parties Other financial Trade Other assets Other financial Trade Other liabilities assets liabilities Amount in € thousand Current and Receivables Current Current and Payables Current non-current non-current CDS S.r.l. - 0 - - (670) - Ferrari Logistics SAM - 616 - - (874) - Ferrari Express Ltd - 2,164 - - (2,187) - Bcube Luxury BV - 19 - - - - Bin Youssef Luxury (Qatar) - 151 - - (264) - All Marks - 1 - - - - Deiana Holding Limited - 516 - - (333) (5,456) Deiana Group Immobiliare S.r.l. - 2 - - (411) - Deiana Group Immobilier France - - 150 - - - Ferrari Immogroup S.A. - 5 - - (10) - Pelican Real Estate - - 47 - - - Grosvenor Underwriting Ltd - - 362 - - - Total Receivables/(Payables) - 3,474 559 - (4,749) (5,456) Related Parties Income Costs Amount in € thousand Revenues Other Income Financial For services Other operating Financial CDS S.r.l. - - - (1,358) - - Ferrari Logistics SAM 1,148 6 - (1,839) - - Ferrari Express Ltd 2,784 2 - (3,389) - - Bin Youssef Luxury (Qatar) 314 68 - (707) - - All Marks 1 4 - - - - Deiana Holding Limited - 511 - (39) - - Deiana Group Immobiliare S.r.l. - 4 - (497) (3) (71) Deiana Group Immobilier France - - - - - (32) Deiana Group Management System - 2 - - - - S.r.l. Ferrari Immogroup S.A. - - - (83) (17) (30) Pelican Real Estate - - - - (7) (44) Grosvenor Underwriting Ltd - 288 - (2,964) - - Total Income/(Expenses) 4,247 885 - (10,876) (27) (177) Page 114 of 139 As of December 31, 2023 Related Parties Other financial Trade Other assets Other financial Trade Other liabilities assets liabilities Amount in € thousand Current and Receivables Current Current and Payables Current non-current non-current CDS S.r.l. - 1 - - (627) - Ferrari Logistics SAM - 380 - - (319) - Ferrari Express Ltd - 2,020 - - (2,372) - Bcube Luxury BV - 18 - - - - Bin Yousef Luxury Cargo - 388 - - (51) - All Marks - 52 - - - - Deiana Holding Limited - 13,578 - - (452) (84) Deiana Group Management System S.r.l. - 3 - - - - Deiana Group Immobiliare S.r.l. - 2 - - (504) - Deiana Group Immobilier France - 91 - - - - Deiana Group RE (Hong Kong) Ltd - 2 - - - - Ferrari Immogroup S.A. - 5 - - (15) - Grosvenor Underwriting Ltd - - 300 - - - Total Receivables/(Payables) - 16,540 300 - (4,340) (84) Related Parties Income Costs Amount in € thousand Revenues Other Financial For services Other operating Financial Income CDS S.r.l. - - - (1,347) - - Ferrari Logistics SAM 814 10 - (1,341) - - Ferrari Express Ltd 2,631 646 - (3,988) (3) - Bin Yousef Luxury Cargo 216 49 - (784) - - All Marks 3 4 - (8) (43) - Deiana Holding Limited - - - (4) (1) (4) Deiana Group Immobiliare S.r.l. - - - - - (56) Deiana Group Immobilier France - - - - - (37) Deiana Group Management System S.r.l. - 3 - - - - Ferrari Immogroup S.A. - - - - - (37) Pelican Real Estate - - - - - (47) DMC S.p.A. - - - - - (1) Grosvenor Underwriting Ltd - - - (2,829) - - Miranda Ferrari - - - - - (1,032) Total Income/(Expenses) 3,664 712 - (10,301) (47) (1,214) In addition to the amounts reported above, in the Consolidated financial statement are included in Non- current Lease liabilities for Euro 8,086 thousand and Current Lease liabilities for Euro 2,891 thousand towards related parties. These liabilities were generated by the lease agreements signed with the subsidiaries (real estate entities) of the parent company (Deiana Holding Limited). The amount of the lease liabilities as at December 31, 2024 above mentioned is detailed below: Amounts in € thousand Non-current Current Total Lease Liabilities Lease Liabilities Lease Liabilities Deiana Group Immobiliare S.r.l. 2,317 1,603 3,920 Ferrari Immogroup S.A. 1,942 669 2,611 Deiana Group Immobilier France 2,288 386 2,674 Pelican Real Estate 1,539 233 1,772 Total 8,086 2,891 10,977 Page 115 of 139 Transactions carried out by the Group with Key Management Personnel are listed in the table below: As of As of Amounts in € thousand December December 31, 2024 31, 2023 Marco Deiana 30 30 Total 30 30 All related party transactions are concluded at normal market conditions, or with similar condition to those normally applied to unrelated parties for transactions of a similar nature, size and risk, or based upon regulated rates or set prices, or applied to entities with which the Company is obligated by law to contract at a certain price. 39. Derivatives financial instruments The Group has not entered any derivative contracts. 40. Financial assets and liabilities The Group funds its operations from the following sources of capital: operating cash flow, borrowings, shareholders’ equity and, where appropriate, divestments of non-core businesses. The Group’s objective is to achieve a capital structure that results in an appropriate cost of capital whilst providing flexibility in short and medium-term funding so as to accommodate significant investments or acquisitions. The Group’s overall treasury objectives are to ensure sufficient funds are available for the Group to carry out its strategy and to manage certain financial risks to which the Group is exposed. The Group’s treasury strategy is controlled by the Board of Directors which meets periodically during the year and includes the Group Chief Finance Officer, the Group General Counsel and Company Secretary. The function arranges funding for the Group, provides a service to operations and implements strategies for financial risk management. The following table combines information about: - Classes of financial instruments based on their nature and characteristics; - The carrying amounts of financial instruments; - Fair values of financial instruments (except financial instruments when carrying amount approximates their fair value); - Fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed. Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable: - Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 2 fair value measurement is based on net asset value (NAV) provided periodically by the fund administrator but not traded on an active exchange; - Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Page 116 of 139 The table below shows the financial assets and liabilities for applied evaluation methodology: December 31, 2024 Note Financial assets and liabilities Amortized Fair value level Amounts in € thousand FVPL FVOCI cost Total 1 2 3 Non-current receivables 18 - - 2,087 2,087 - - - Other non-current assets 19 1,219 - 16,184 17,403 - 1,219 - Trade receivables 20 - - 76,215 76,215 - - - Current assets 21 - - 8,946 8,946 - - - Other current receivables 22 - - 11,014 11,014 - - - Cash and cash equivalents 23 - - 115,799 115,799 - - - Total Financial Assets 1,219 - 230,245 231,464 - 1,219 - Non-current borrowings 29 - - 641 641 - - - Non-current lease liabilities 16 - - 24,606 24,606 - - - Current borrowings and bank overdrafts 30 - - 772 772 - - - Current lease liabilities 16 - - 11,734 11,734 - - - Trade payables 31 - - 27,791 27,791 - - - Other current liabilities 32 - - 28,006 28,006 - - - Total Financial Liabilities - - 93,550 93,550 - - - December 31, 2023 Note Financial assets and liabilities Amortised Fair value level Amount in € thousand FVPL FVOCI Total 1 2 3 cost Non-current receivables 18 - - 1,720 1,720 - - - Other non-current assets 19 1,813 - 4,610 6,423 - 1,813 - Trade receivables 20 - - 91,453 91,453 - - - Current assets 21 - - 6,654 6,654 - - - Other current receivables 22 - - 7,599 7,599 - - - Cash and cash equivalents 23 - - 98,777 98,777 - - - Total Financial Assets 1,813 - 210,813 212,626 - 1,813 - Non-current borrowings 29 - - 939 939 - - - Non-current lease liabilities 16 - - 21,171 21,171 - - - Current borrowings and bank overdrafts 30 - - 883 883 - - - Current lease liabilities 16 - - 9,860 9,860 - - - Trade payables 31 - - 30,966 30,966 - - - Current tax payables 33 - - 8,715 8,715 - - - Other current liabilities 3 - - 26,233 26,233 - - - Total Financial liabilities - - 98,767 98,767 - - - Page 117 of 139 41. Financial risk management and other risk The Group is exposed to the following financial risks connected with our operations: - market risk (primarily exchange rates and interest rates). We attempt to actively manage these risks; - credit risk related to our financing activities; - liquidity risk, with particular reference to the availability of funds and access to the credit market and to financial instruments in general. The quantitative data reported in the following paragraphs does not have any predictive value. In particular, the sensitivity analysis on 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. Market risk Interest rate risk management The Group’s activities make use of external funds obtained in the form of financing and invest in monetary and financial market instruments. Changes in market interest rates can affect the cost of financing or the return on investments of funds, causing an impact on the level of net financial expenses incurred by us. In addition, Where the characteristics of the variability of the interest rate applied to loans granted differ from those of the variability of the cost of the financing/funding obtained, changes in the current level of interest rates can affect our income statement. The Group's main exposure to risk is through interest rates for bank loans with variable interest rate and change in fair value relating investments in mutual found. The Group, considering the timing of repayment and the index used for the interest rate variable part, did not enter the derivative transactions. Sensitivity analysis In assessing the potential impact of changes in interest rates, we focus the analysis on floating rate financial instruments, for which the impact is assessed in terms of cash flows. A hypothetical change of 10% in interest rates at December 31, 2024, applied to floating rate financial assets and liabilities would have caused increased financial expenses before taxes, on an annual basis, of Euro 26 thousand (Euro 421 thousand at December 31, 2023). Foreign currency risk The Group is exposed to risk resulting from changes in exchange rates, which can affect our profit and invested equity. Where one of the subsidiaries incurs costs in a currency different from that of its revenues, any change in exchange rates can affect the income statement of that Group. The Group's main exposure to the following foreign currency exchange rates: US Dollar, Hong Kong Dollar, Renminbi, Swiss Franc and United Arab Emirates Dirham. The Group did not enter the derivative transactions, but the risk on exchange rates is mitigated by the fact Page 118 of 139 that the business of the Group is mainly carried out in countries using very strong and stable currencies. Sensitivity analysis As the Group did not enter in derivative transactions, the potential loss at December 31, 2024 resulting from a hypothetical change of 10% in the exchange rates amounts Euro 5,879 thousand (Euro 3,615 thousand at December 31, 2023). Credit risk The Group’s credit risk differs in relation to the activities carried out by the segments and sales markets in which we operate; in all cases, however, the risk is mitigated by the large number of counterparties and customers. Financial assets are recognized in the statement of financial position net of write-downs for the risk that counterparties may be unable to fulfil their contractual obligations, determined on the basis of the available information as to the creditworthiness of the customer and historical data. The maximum credit risk to which we were theoretically exposed at the reporting date is represented by the carrying amounts stated for financial assets in the statement of financial position and the nominal value of the guarantees provided on debt or commitments of third parties. Final global customers are generally subject to specific assessments of their creditworthiness. Where this assessment is not possible, usually the Group requests advance payment. A financial asset has experienced a significant increase in credit risk when the customer shows signs of operational or financial weakness including past dues, which requires significant collection effort and monitoring and generally occurs when the customer becomes past due greater than 90 days. The assessment considers available information regarding the financial stability of the customer and other market/industry data. Based on the past default experiences of the debtors, an account is typically considered in default when they are 120 days past due. Moreover, the Group, due to the high amount of cash and cash equivalents, is exposed to potential losses arising from the failure of the counterparty to meet its obligations. This risk can derive both from factors of a strictly technical-commercial or administrative-legal nature and from factors of a typically financial nature, i.e. the “credit standing” of the counterparty. The Company manages credit risk using financial institution with high credit standing and does not have significant concentrations of credit risk. Liquidity risk Liquidity risk represents the risk that the Group cannot meet its financial obligations due to problems in obtaining funds at current market price conditions (funding liquidity risk) or in liquidating assets on the market to find the necessary financial resources (asset liquidity risk), which could negatively impact the Group’s results if the Group is forced to incur additional costs to obtain liquidity or meet its commitments, Page 119 of 139 The following tables summarize the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities: As of As of Amounts in € thousand December December 31, 2024 31, 2023 within 1 year 68,303 76,657 1 y < x < 5 y 24,327 21,430 over 5 y 920 680 Financial Liabilities 93,550 98,767 Amounts in € thousand As of As of December December 31, 2024 31, 2023 Current borrowings and bank overdrafts 772 883 Current lease liabilities 11,734 9,860 Trade payables 27,791 30,966 Current tax payables - 8,715 Other current liabilities 28,006 26,233 Financial Liabilities within 1 year 68,303 76,657 Amounts in € thousand As of As of December December 31, 2024 31, 2023 Non-current borrowings 641 939 Non-current lease liabilities 23,720 20,491 Financial Liabilities within 1 y < x < 5 y 24,327 21,430 Amounts in € thousand As of As of December December 31, 2024 31, 2023 Non-current lease liabilities 920 680 Financial Liabilities within over 5 y 920 680 Page 120 of 139 42. Alternative Performance Measures Adjusted EBITDA and Adjusted EBITDA Margin The Group uses Adjusted EBITDA and Adjusted EBITDA Margin to understand and assess the Group’s underlying operating performance. Management believes that these non-IFRS measures are useful because they exclude items that management believes are not indicative of the Group’s underlying operating performance, and allow management to view operating trends, perform analytical comparisons and benchmark performance between periods. Adjusted EBITDA is calculated as profit before taxes excluding finance income, finance expenses, depreciation and amortisation, provision for risks, exchange losses, results from investments accounted for using the equity method adjusted for gains and expenses, that are significant in nature and management considers not reflective of underlying operating activities (listing costs).. Adjusted EBITDA Margin is calculated as the ratio of Adjusted EBITDA to revenues of the applicable period. . Below are reported the reconciliation table for the year ended 31 December 2024 and 2023: Amounts in € thousand FY2024 % of FY2023 % of Revenues Revenues Profit before taxes 72,806 20.9% 72,062 21.6% Financial income (1,672) -2.3% (1,238) -1.7% Financial expenses 1,656 2.3% 2,314 3.2% Exchange losses 1,233 1.7% 802 1.1% Result from investments accounted for using the equity method (834) -1.1% (951) -1.3% Depreciation and Amortization 17,355 5.0% 13,632 4.1% Provision for risks 1,837 0.5% 145 0.0% Listing costs - 0.0% 3,259 1.0% Adjusted EBITDA 92,381 26.5% 90,025 27.0% Net working capital Net Working Capital is defined as current assets less current liabilities adjusted for current assets, cash and cash equivalents, current borrowings and bank overdraft and current lease liabilities. The Directors consider the Net Working Capital a helpful measure of performance, in order to measure the Group's liquidity, its cash flow trends and its overall financial health. Below are reported the reconciliation table for the year ended 31 December 2024 and 2023: Euro/000 FY2024 FY2023 Total current assets 216,207 208,074 Less: - Cash & cash equivalents (115,799) (98,777) - Current assets (8,946) (6,654) Total current assets (excluding current financial assets) 91,462 102,643 Total Current Liabilities (68,867) (77,133) Less: - Current borrowings and bank overdraft 772 883 - Current lease liabilities 11,734 9,860 Total current liabilities (excluding current financial liabilities) (56,361) (66,390) Net Working Capital 35,101 36,253 Page 121 of 139 Net Financial position The Group uses Net Financial position as a key performance indicator. The Net Financial position calculated as the sum of total financial liabilities, and non-current trade and other payables, net of cash and cash equivalents and current financial assets. The Directors consider the Net Financial indebtedness (or funds in case of liquidity surplus) is useful to assess liquidity, solvency, and the group's ability to invest or meet financial obligations, which is essential for making informed strategic and operational decisions. The composition of Net Financial Indebtedness is determined in accordance with ESMA Recommendations contained in Guidelines 32-382-1138 of 4 March 2021. Below are reported the table for the year ended 31 December2024 and 2023: As at As at Amount in Euro 000 December December 31, 2024 31, 2023 A Cash 115,799 98,777 B Other current financial assets 8,946 6,654 C Liquidity (A+B) 124,745 105,431 D (including debt instruments, but excluding current portion Current financial debt 239 205 of non-current financial debt) E Current portion of non-current 12,267 10,538 financial debt (accrued interest) F Current financial indebtedness (D + E) 12,506 10,743 G Net current funds (C – F) 112,239 94,688 H Non-current financial debt 25,247 22,110 (excluding current portion and debt instruments) I Non-current financial indebtedness (H) 25,247 22,110 J Total funds (G - I) 86,992 72,578 Page 122 of 139 43. Post Balance sheet events Following 31 December 2024, a redenomination, consolidation and subdivision of the share capital of the Company was implemented pursuant to a resolution of 29 January 2025, so that the currency denomination of the Ordinary Shares is reflected in euro ahead of the Admission. On 29 January 2025, Ferrari Group PLC and the parent company (Deiana Holding Limited) passed resolutions to implement a redenomination, consolidation and subdivision of the share capital of the Company as follows: • GBP 77,045,804 Ordinary Shares were redenominated at a prevailing exchange rate determined in accordance with the UK Companies Act from GBP 1.00 to Euro 1.1844; • the Company issued a bonus share with a nominal value of €46,949.7424, for the purposes of ensuring that the redenomination resulted in a whole number of Ordinary Shares; • the share capital of the Company (including the bonus share) was consolidated into 1 ordinary share with a nominal value of €91,300,000; and • the share capital of the Company was subdivided from 1 ordinary share with a nominal value of Euro 91,300,000 into 91,300,000 Ordinary Shares with a nominal value of €1.00 each. On 13 February 2025, all Ordinary Shares were admitted to listing and trading on Euronext Amsterdam, and Deiana Holding Limited offered 22,825,000 Ordinary Shares, with an additional 3,327,620 Ordinary Shares after settlement of the over-allotment option granted to the underwriters to the offering. In connection with the Admission, the Company updated its governance structure, by appointing four new Non-Executive Directors, establishing an audit committee, a remuneration committee and a selection and nomination committee, and adopting new Articles of Association, Board rules, committee charters and various policies, which are published in the Company’s website (www.ferrarigroup.net). For additional information please refer to “Post Balance sheet events” included in the Directors’ Report on page 38. Page 123 of 139 Separate Financial Statement (Parent Only) Ferrari Group PLC Separate Financial Statement as of and for the year ended December 31, 2024 Page 124 of 139 Contents - Statement of Financial Position (Parent Only) 125 - Statement of Changes in Equity (Parent Only) 127 - Notes to the Separate Financial Statements 128 Page 125 of 139 Statement of Financial Position (Parent Only) Amounts in € thousand Notes As of As of December 31, 2024 December 31, 2023 Assets Non-current assets Intangible assets 1 8,624 4,791 Property, plant and equipment 462 - Right-of-use assets 1,380 - Investments in subsidiaries & associated companies 2 86,449 86,449 Non-current receivables 3 12,178 14,309 Total Non-current assets 109,093 105,549 Current assets Receivables 4 37,126 36,392 Current tax receivables 11 698 359 Other current receivables 2,994 1,772 Cash and cash equivalents 5 38,919 18,980 Total Current assets 79,737 57,503 TOTAL ASSETS 188,830 163,052 Share capital 6 85,843 85,843 Other reserves 7 8,544 5,128 Retained earnings 7 71,823 52,762 Total Shareholders' Equity 166,210 143,733 Liabilities Non-current liabilities Non-current lease liabilities 1,233 - Non-current payables 8 3,997 3,822 Total Non-current liabilities 5,230 3,822 Current liabilities Current lease liabilities 208 - Trade and other payables 9 8,415 9,128 Other current liabilities 10 8,767 190 Current tax payables 11 - 6,179 Total Current liabilities 17,390 15,497 TOTAL EQUITY AND LIABILITIES 188,830 163,052 The accompanying notes are an integral part of the Separate financial statements. Page 126 of 139 The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not prepared its own Income statement of comprehensive income in these financial statements. The profit after tax of the Parent Company for the year was Euro 44,061 thousand (Euro 50,289 thousand in 2023). **** This report was approved by the board of directors on April 30, 2025 and signed on behalf of the board by: Mr. Marco Deiana Mr. Alessandro Nicolò Ugo Executive Director (CEO) Executive Director (CFO) Ferrari Group PLC Ferrari Group PLC Registered Number 12614552 Registered Number 12614552 Page 127 of 139 Statement of Changes in Equity (Parent Only) Amounts in € thousand Share Capital Retained earnings Currency Translation Reserve Total Equity As of December 31, 2022 85,843 22,473 4,840 113,156 Profit for the year - 50,289 - 50,289 Foreign currency exchange differences - - 288 288 Dividends - (20,000) - (20,000) As of December 31, 2023 85,843 52,762 5,128 143,733 Profit for the year - 44,061 - 44,061 Foreign currency exchange differences - - 3,416 3,416 Dividends - (25,000) - (25,000) As of December 31, 2024 85,843 71,823 8,544 166,210 The accompanying notes are an integral part of the Separate financial statements. Page 128 of 139 Notes to the Separate Financial Statement Basis of preparation of financial statements Ferrari Group PLC is a public limited company, limited by shares. The Parent Company financial statements of Ferrari Group Plc (the Company) have been prepared in accordance with Financial Reporting Standard 100 Application of Financial Reporting Requirements and Financial Reporting Standard 101 Reduced Disclosure Framework, and as required by the UK Companies Act 2006. The financial statements are prepared under the historical cost convention as modified for financial instruments that are measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Financial Statements is determined on such a basis. Disclosure exemptions adopted In preparing these financial statements, the Company has taken advantage of all disclosure exemptions conferred by FRS 101. Therefore, these financial statements do not include: • certain comparative information as otherwise required by UK-adopted international accounting standards; • certain disclosures regarding the Company’s capital; • a statement of cash flows; • the effect of future accounting standards not yet adopted; • the disclosure of the remuneration of key management personnel; and • disclosure of related party transactions with other wholly owned members of the Group headed by Ferrari Group Plc. In addition, and in accordance with FRS 101, further disclosure exemptions have been adopted as equivalent disclosures are included in the consolidated financial statements of Ferrari Group Plc. These financial statements do not include certain disclosures in respect of: • business combinations; • financial instruments (other than certain disclosures required as a result of recording financial instruments at fair value); • fair value measurement (other than certain disclosures required as a result of recording financial instruments at fair value); and • impairment of assets. Page 129 of 139 Material accounting policies New standards and amendments effective from January 1, 2024 The material accounting policies adopted in the preparation of the Parent company's annual financial statements for the year ended 31 December 2024 are consistent with those followed in the preparation of the Parent company’s annual financial statements for the year ended 31 December 2023. In the current year, the Group has applied amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements International Accounting Standards (IFRS/IAS) IASB Effective Date - periods commencing on or after EU & UK adopted effective Date - periods commencing on or after Amendments to IAS 1 Presentation of Financial Statements • Non-current Liabilities with Covenants • Deferral of Effective Date Amendment (published 15 July 2020) • Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) (published 23 January 2020) 1 January 2024 1 January 2024 Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) 1 January 2024 1 January 2024 Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7 1 January 2024 1 January 2024 The Parent company currently prepares its financial statements in accordance with UK adopted international accounting standards and IFRS as adopted by the EU. Therefore, the relevant effective dates are the EU and UK effective dates. A brief summary of the changes to accounting standards is provided below. Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. Non-current Liabilities with Covenants (Amendments to IAS 1) The amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) The amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. Page 130 of 139 Going concern The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company has adequate financial resources. As at 31 December 2024, it has cash and cash equivalents of €38.9m (2023: €19.0 million), net assets of €188.8m (2023: €163.1) and net current assets of €62.3m (2023: €42.0). Based on the information reported above, the Directors are satisfied that the Company has adequate resources, to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting when preparing the financial statements. Income taxes Income taxes include all the taxes calculated on the income of the company. Current and deferred tax are recognised in income statement, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognised in other comprehensive income or directly in equity respectively. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period; Intangible assets Intangible assets acquired separately from a business are capitalized at cost. Intangible assets acquired as part of a business combination are capitalized separately from goodwill if the fair value can be measured reliably on initial recognition. The carrying value of intangible assets are reviewed for impairment on an annual basis for events or changes in circumstances that indicate that the carrying value may not be recoverable. Intangible assets are stated at cost or fair value on recognition less accumulated amortization and any impairment in value. The gains or losses recognised in income statement arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period. Intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in income statement when the asset is derecognised. Intangible Assets Amortization method Trademark 10% Intangible assets under constructions Not amortized Page 131 of 139 Impairment of property, plant and equipment, right-of-use and intangible assets with a finite useful live At each reporting date or in the presence of impairment indicators, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Factors considered important that could trigger an impairment review of property, plant and equipment, right-of-use and intangible assets include, but are not limited to, the following: - significant underperformance relative to the historical or projected future operating results; - significant changes in the manner of the use of the acquired assets or the strategy of the overall business; and - significant negative industry or economic trends. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in income statement, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease and to the extent that the impairment loss is greater than the related revaluation surplus, the excess impairment loss is recognised in income statement. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in income statement to the extent that it eliminates the impairment loss which has been recognised for the asset in prior years. Any increase in excess of this amount is treated as a revaluation increase. Investments in subsidiaries and associated companies Investments in subsidiary and associated companies are recorded at purchase cost, in accordance with IAS 27. The value is adjusted, if needed, for impairment losses in accordance with IAS 36. Any impairment loss is determined on the basis of the recoverable value determined by the cash flows that the investment will prospectively produce. Page 132 of 139 Financial assets Presentation Current financial assets include trade receivables, other current assets and cash and cash equivalents. Non-current financial assets include investments in subsidiaries and associated companies as well as long-term receivables. Measurement Financial assets are initially recognised at the fair value of the consideration paid. After the initial recording, the financial assets are measured in relation to their use. The classification of financial assets depends on the business model within which the financial instruments are held and their contractual cash flow characteristics, relevant to determining whether they are to be measured at amortised cost or fair value. In particular, the Company measures its financial assets at amortised cost if both the following conditions have been met: - the asset is held within a business model whose objective is the collection of the contractual cash flows; and - the contractual conditions give rise to cash flows that are solely payments of principal and interest. Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVTOCI): - the financial asset is held within a business model whose objective is achieved through the collection of the contractual cash flows and the sale of the financial assets; and - the contractual terms of the financial asset give rise, on specific dates, to cash flows representing solely payments of principal and interest. Financial assets at fair value through other comprehensive income mainly include equity investments which the entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. On a residual basis, all other financial assets are designated at fair value through income statement (FVTPL). Financial assets in currencies other than the functional currency are accounted for in Euro at the spot exchange rate on the transaction date and subsequently translated at the reporting date exchange rate with unrealised exchange differences recorded in income statement. Derecognition The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for any obligations created or retained. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Page 133 of 139 On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit and loss. In addition, on derecognition of an investment in a debt instrument classified as FVOCI, the cumulative gain or loss previously accumulated in the investment revaluation reserve within other comprehensive income/(loss) is reclassified to income statement. Impairment of financial assets The Company recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at amortized cost or at FVOCI, trade receivables and other receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognizes lifetime expected credit losses (ECL) for trade receivables and other receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Receivables Receivables are amounts due from subsidiaries and associated companies for services provided in the ordinary course of business. Receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any loss allowances. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term deposits. Short-term deposits are defined as deposits with an initial maturity of three months or less. Financial liabilities Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. - Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group (such as ordinary shares) are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in income statement on the purchase, sale, issue or cancellation of the Company’s own equity instruments. - Financial liabilities Financial liabilities include borrowings, lease liabilities, trade and other payables. Financial liabilities are initially recognized at fair value net of transaction costs. Subsequent to initial recognition, financial liabilities are recognized using the amortized cost, using the effective interest rate. The Page 134 of 139 Company derecognizes financial liabilities when obligations are discharged, cancelled, or expired. The difference between the consideration paid to derecognize the financial liability and its carrying amount is recognized in income statement. Critical accounting judgements and key sources of estimation uncertainty There are no critical accounting judgements and key sources of estimation uncertainty that have relevant impacts on the Separate Financial Statements as at 31 December 2024. Page 135 of 139 1. Intangible assets The following table show the changes for intangible assets during the year: Amounts in € thousand Trademark Intangible assets under construction Total Intangible assets Historical cost Balance as of December 31, 2023 2,356 2,919 5,275 Additions - 3,891 3,891 Exchange difference and other changes (17) 187 170 Balance as of December 31, 2024 2,339 6,997 9,336 Accumulated amortization Balance as of December 31, 2023 (484) - (484) Amortization (248) - (248) Exchange difference and other changes 20 - 20 Balance as of December 31, 2024 (712) - (712) Carrying amount at: December 31, 2023 1,872 2,919 4,791 December 31, 2024 1,627 6,997 8,624 The “Intangible assets” refers to the investments in: • Group Trademark for Euro 1,627 thousand (Euro 1,872 as at December 31, 2023) and; • Intangible assets related to the Digital transformation project for Euro 6,997 thousand (Euro 2,919 as at December 31, 2023). The asset arising from the digital transformation project is an asset under construction and therefore not amortised. Page 136 of 139 2. Investments in subsidiaries and associated companies The following table shows the detail of investments in subsidiaries and associated companies: Subsidiary Total Value Country of incorporation Principal activities % Ordinary shares % Voting power Ferrari S.p.A. 28,767 Italy Freight transport 100% 100% Ferrari Expeditions S.A. 18,693 Switzerland Freight transport 100% 100% Ferrari Expeditions France S.A. 13,130 France Freight transport 99.87% 99.87% Ferrari Logistics (Asia) Ltd. 10,127 Hong Kong Freight transport 100% 100% Ferrari Logistics Middle East – UAE 4,491 UAE Freight transport 100% 100% Ferrari Logistics Germany GMBH 2,014 Germany Freight transport 100% 100% Ferrari Express S.L. 2,013 Spain Freight transport 100% 100% Ferrari Logistics Hong Kong 1,707 Hong Kong Freight transport 100% 100% Ferrari Logistics Japan K.K. 1,231 Japan Freight transport 100% 100% Ferrari Express Inc. 869 USA Freight transport 50% 50% Ferrari Logistics Asia (Thailand) Ltd. 590 Thailand Freight transport 100% 100% Ferrari Logistics Malaysia 540 Malaysia Freight transport 100% 100% AF Ferrari Secura Logitec Pvt India 522 India Freight transport 100% 100% Ferrari Belgium BVBA 414 Belgium Freight transport 100% 100% Ferrari Logistics (Korea) Co. Ltd 250 South Korea Freight transport 100% 100% Grupo Ferrari Macao 110 China Freight transport 100% 100% Ferrari Group Portugal SA 50 Portugal Freight transport 100% 100% SW System S.r.l. 26 Italy IT Services 100% 100% Ferrari BPM S.a.r.l. 19 Switzerland Freight transport 100% 100% Ferrari Logistics Ireland 11 Ireland Freight transport 100% 100% Ferrari Logistics Netherland 10 Netherland Freight transport 100% 100% Ferrari Group Netherland 9 Netherland Freight transport 100% 100% Ferrari Group Trading 9 Hong Kong Procurement 100% 100% FG Logistics Ltd 1 UK Freight transport 100% 100% Ferrari Macao 0 China Freight transport 100% 100% Ferrari Logistics Southern Africa (PTY) Ltd 0 South Africa Freight transport 100% 100% Ferrari Investment Holding Pte Ltd 0 Singapore Sub-holding 100% 100% Total Investments in subsidiaries 85,602 Ferrari Express Limited (UK) 509 UK Freight transport 50% 50% Bcube Luxury BV 306 Netherland Freight transport 40% 40% Bin Yousef Luxury Cargo 31 Qatar Freight transport 49% 49% Total Investments in associated companies 846 Total Investments in subsidiaries and associated companies 86,449 3. Non-current receivables The following table shows the changes on Long-term receivables during 2024: Amounts in € thousand December Increase Repayments Other December 31, 2023 (+) (-) +/(-) 31, 2024 Other Receivables towards Subsidiaries 12,680 1,926 (3,345) 584 11,845 Other Receivables towards Parent Company 1,598 877 (2,545) 70 - Other Receivables towards others - 300 - 10 310 Deposit 31 - (8) - 23 Non-current receivables 14,309 3,103 (5,898) 664 12,178 Page 137 of 139 4. Trade and other receivables The following table shows the trade receivables balance at the reporting date: Amounts in € thousand As at December 31, 2024 As at December 31, 2023 Trade and other receivables towards subsidiaries and associated companies 37,126 36,392 5. Cash and cash equivalents Cash and cash equivalents refer to current account deposits held at banks: Amounts in € thousand As at December As at December 31, 2024 31, 2023 Bank and postal accounts 38,919 18,980 Cash and cash equivalents 38,919 18,980 There are no restrictions to the use of cash and cash equivalents. 6. Share capital On December 31, 2024, share capital is wholly subscribed and paid and amounts to Euro 85,843 thousand and it is divided into 77,045,804 shares (Euro 85,843 thousand, consisting of 77,045,804 shares as of December 31, 2023). Table below, shows a reconciliation between the number of ordinary shares as of December 31, 2024 and 2023: No. of As of December No. of As of December Shares 31, 2024 Shares 31, 2023 Amounts in € thousand Amounts in € thousand Issued and fully paid At 1st January 77,046 85,843 77,046 85,843 New issues of share capital - - - - At December 31 77,046 85,843 77,046 85,843 All issued share capital is classified as equity. On 29 January 2025, Ferrari Group PLC and the parent company (Deiana Holding Limited) passed resolutions to implement a redenomination, consolidation and subdivision of the share capital of the Company as follows: • GBP 77,045,804 Ordinary Shares were redenominated at a prevailing exchange rate determined in accordance with the UK Companies Act from GBP 1.00 to Euro 1.1844; • the Company issued a bonus share with a nominal value of €46,949.7424, for the purposes of ensuring that the redenomination resulted in a whole number of Ordinary Shares; • the share capital of the Company (including the bonus share) was consolidated into 1 ordinary share with a nominal value of €91,300,000; and Page 138 of 139 the share capital of the Company was subdivided from 1 ordinary share with a nominal value of Euro 91,300,000 into 91,300,000 Ordinary Shares with a nominal value of €1.00 each. 7. Reserves Reserves amount to Euro 80,367 thousand as of December 31, 2024 (Euro 57,890 thousand as of December 31, 2023) are detailed as the following table: Amounts in € thousand As at December As at December 31, 2024 31, 2023 Retained earnings 71,823 52,762 Foreign currency translation reserve 8,544 5,128 Total reserves 80,367 57,890 Retained earnings includes the net result of the year and the net results of past years, net of dividends paid to the parent company. Foreign currency translation reserve represents the accumulated effects on shareholders' equity and on the result for the period arising from the conversion into the functional currency (Euro) of the foreign currencies. All the reserves changes are reported in the above reported Statement of changes in equity. 8. Non-current payables The following table shows the changes for non-current payables during the year: Amounts in € thousand December Increase Reimbursements Other December 31, 2023 (+) (-) (+/-) 31, 2024 Amounts due to subsidiaries 3,822 - (9) 184 3,997 9. Trade and other payables The caption includes the amounts due for supplies for production and services received. The Company does not have any reverse factoring and/or supplier financing transactions with its suppliers. Amounts in € thousand December 31, 2024 December 31, 2023 Trade and other payables towards subsidiaries and associated companies 4,492 5,742 Trade and other payables towards third parties 3,923 3,386 Total trade and other payables 8,415 9,128 Page 139 of 139 10. Other current liabilities The following table provides a breakdown for other current liabilities: Amounts in € thousand As at December As at December 31, 2024 31, 2023 Dividend payables towards Parent Company 5,456 - Deferred income 2,876 - Payables towards Subsidiaries for damage to repay 423 - Accrued expenses - 101 Other payables 12 89 Other current liabilities 8,767 190 11. Current tax receivables and payables The following table shows the balance of current tax receivables and payables as of December 31, 2024: Amounts in € thousand As at December As at December 31, 2024 31, 2023 Current tax payables - (6,179) Current tax receivables 698 359 Net current tax debt 698 (5,820) 12. Personnel The average number of employees employed by the Company during the year was of 6 units (5 units in 2023). All employees are general and administration employees. Amounts in € thousand For the year ended December 31, 2024 2023 Salaries and wages 478 252 Social contributions and pension plans 64 40 Total Personnel costs 542 292 13. Audit remuneration The Fees for audit of the Parent Company's annual financial statement amount to Euro 25 thousand (Euro 10 thousand in 2023 - paid and payable to the predecessor auditor). 14. Commitments and guarantees The parent company Ferrari Group PLC on October 28, 2024, signed a patronage letter valid from October 31, 2024 to October 31, 2025 for the mandatory insurance cover required by the Italian customs for the import/export operations up to a maximum of Euro 56,000 thousand. 15. Contingent liabilities The Company had no contingent liabilities as of December 31, 2024 and 2023. 16. Derivatives financial instruments The Company has not entered any derivative contracts.

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