Sanlorenzo — Investor Presentation 2021

Jul 23, 2021

COMPANY PRESENTATION MID & SMALL 2021 | SUMMER

26-30 JULY 2021

AGENDA

INTRODUCTION TO SANLORENZO

Q1 FINANCIAL RESULTS AND 2021 GUIDANCE

RESPONSIBLE DEVELOPMENT

SOLID LEADERSHIP IN LUXURY YACHTING

Source: Company information and Management assessment.

1. Official retail price Sanlorenzo vs. competitors based on official 2019 retail price as of August 2019.

2 . Source: Superyacht Times – August 2019.

SUPERIOR BUSINESS MODEL

~60 YACHTS PER YEAR

SOPHISTICATED CUSTOMERS, «CONNOISSEURS», «SANLORENZO CLUB», ~900 OWNERS BELONGING TO THE WORLD'S WEALTHIEST FAMILIES

RIGOROUSLY «MADE TO MEASURE»

TIMELESS DESIGN WITH THE UTMOST CARE FOR DETAILS

FLEXIBLE COST STRUCTURE, ~2,550-UNIT WORK FORCE, ~550 DIRECT1 VS. ~2,000 INDEPENDENT SPECIALIZED ARTISANS

UNIQUE DIRECT DISTRIBUTION, BRAND REPRESENTATIVE NETWORK, MOSTLY MONOBRAND2

INDUSTRY LEADER FOR INNOVATION WITH TRADITION (40ALLOY, 52STEEL, EXPLORER, SX LINE, SL102 ASYMMETRIC)

STRONG BOND WITH ART AND DESIGN (MILAN DESIGN WEEK, ART BASEL, ARCHISTARS: DORDONI, URQUIOLA, LISSONI, PAWSON, LIAIGRE)

EXPERIENCED AND PASSIONATE MANAGEMENT TEAM (MORE THAN 25 MANAGERS WITH TOTAL COMBINED ~600 YEARS OF EXPERIENCE)

YACHTS DELIVERED IN 2020

2021 GLOBAL ORDER BOOK SANLORENZO THE WORLD'S LEADING SINGLE-BRAND SHIPYARD

TOP 20 SHIPYARDS BY LENGTH

"SANLORENZO SITS IN SECOND PLACE, BOTH IN NUMBER OF PROJECTS AND COMBINED LENGTH. THIS ITALIAN YARD'S PROJECTS ARE BIGGER ON AVERAGE THAN LAST YEAR, THANKS TO THE 23 PROJECTS IN ITS SUPERYACHT DIVISION."

– GLOBAL ORDER BOOK 2021

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
COMPANY	TOTAL LENGTH (M)	NUMBER OF PROJECTS	AVERAGE LENGTH (M)	NUMBER OF PROJECTS 2020	2020 RANK
Azimut-Benetti	3,521	100	35.2	101
Sanlorenzo	3,089	86	35.9	87
Feadship	1,162	17	68.4	16	$\Delta$
Ocean Alexander	1,119	35	32.0	31
Lürssen	1,049	9	116.6	9	5
Damen Yachting	1,028	15	68.5	14	6
Horizon	721	25	28.8	24	$\circ$
Overmarine	692	16	43.3	12	10 °
The Italian Sea Group	688	12	57.3	5	NEW ENTRY
Heesen Yachts	626	11	56.9	13	8
Oceanco	566	5	113.2		15
Bilgin Yachts	499		71.3	5	13

ITALY IS NUMBER #1 IN YACHTS >24M WITH ITS YACHT MANUFACTURERS HOLDING HALF OF THE GLOBAL ORDERS

FINANCIAL HIGHLIGHTS FY 2016-2020

GROUP NET PROFIT

NET DEBT/(NET CASH) 41.4

(€M)

Q1 2021 FINANCIAL RESULTS AND 2021 GUIDANCE

STRONG GROWTH

STRONG Q1 RESULTS, PROVING ONCE AGAIN THE EFFICACY OF SANLORENZO'S BUSINESS MODEL 2021 GUIDANCE TARGETING HIGH DOUBLE-DIGIT GROWTH OF ALL METRICS

• NET REVENUES NEW YACHTS STANDING AT €118.0M, +20.5% YOY, DRIVEN BY APAC AND THE AMERICAS
• ADJUSTED EBITDA STANDING AT €17.3M, +28.4% YOY, 14.7% MARGIN ON NET REVENUES NEW YACHTS VERSUS 13.8% IN Q1 2020
• GROUP NET PROFIT STANDING AT €8.3M, +39.3% YOY, 7.0% ON NET REVENUES NEW YACHTS VERSUS 6.1% IN Q1 2020
• INVESTMENTS FOR €5.6M (4.8% ON NET REVENUES NEW YACHTS VERSUS 6.6% IN Q1 2020), OF WHICH €3.4M DEDICATED TO R&D, PRODUCT DEVELOPMENT AND SUSTAINABILITY
• SOUND FINANCIAL POSITION, WITH €25.9M NET DEBT, A SIGNIFICANT IMPROVEMENT COMPARED TO €60.7M AS OF 31 MARCH 2020, TAKING INTO ACCOUNT BUSINESS SEASONALITY
• BACKLOG AS OF 30 APRIL 2021 AT €632.1M, COMPARED TO €408.8M AS OF 31 DECEMBER 2020, WITH AN ORDER INTAKE OF €223.3M IN FOUR MONTHS
• SUPPORTED BY A BACKLOG PROVIDING HIGH VISIBILITY ON FUTURE REVENUES AND BY A STRONG PRODUCT PIPELINE, SANLORENZO'S MANAGEMENT EXPECTS A HIGH DOUBLE-DIGIT GROWTH OF ALL METRICS IN 2021

FINANCIAL HIGHLIGHTS Q1 2021

NET REVENUES NEW YACHTS

(€M)

EBIT

ADJUSTED EBITDA

NET REVENUES NEW YACHTS

OPERATING AND NET MARGINS

	COMMENTARY	EBITDA1 ADJUSTED			EBIT
	EBITDA1 ADJUSTED €17.3M: +28.4% YOY AT	(€M)		+28.4%	(€M) 25		+36.1%
	NET REVENUES NEW YACHTS EBITDA MARGIN ON INCREASING 13.8% IN Q1 2020 TO 14.7% Q1 2021 (+0.9% FROM IN YOY), AS OF: A RESULT	25 20 15	13.8% 13.5	14.7% 17.3	20 15	9.0%	10.2% 12.0
	INCREASED RAMP-UP EFFICIENCY THANKS TO PROGRESSIVE  OF NEW PRODUCTION CAPACITY AND HIGHER ABSORPTION OF FIXED COSTS	10 5			10 5	8.8
	SHIFT (YACHT IN PRODUCT MIX TOWARDS LARGER YACHTS  BLUEGAME DIVISIONS) AND	0	Q1 2020	Q1 2021	0 0	Q1 2020	Q1 2021	0
	+36.1% YOY EBIT AT €12.0M:		PRE-TAX	PROFIT		GROUP	NET PROFIT
	EBIT MARGIN NET REVENUES NEW YACHTS ON INCREASING 9.0% IN Q1 2020 TO 10.2% IN Q1 2021, DESPITE FROM A 11.6% INCREASE D&A DUE CAPEX IN TO RELEVANT	(€M) 15	+42.5% 8.5%	10.0%	(€M) 15		+39.3%
	€11.8M: +42.5% YOY, ALSO PRE-TAX PROFIT AT THANKS TO 63.3% REDUCTION EXPENSES, PARTIALLY IN NET FINANCIAL FX GAINS DRIVEN BY	10	8.3	11.8	10	6.1% 5.9	7.0% 8.3
	GROUP NET PROFIT €8.3M: +39.3% YOY AT	5			5
	NET REVENUES NEW YACHTS NET PROFIT MARGIN ON 6.1% IN Q1 2020 TO 7.0% IN Q1 2021 INCREASING FROM	0			0 0			0
			Q1 2020	Q1 2021		Q1 2020 MARGIN	Q1 2021 (AS % OF NET REVENUES NEW	YACHTS)
1.	Defined as EBIT + D&A, excluding non recurring items, linked to COVID-19 related expenses and non-monetary costs of the stock incentive plans.							13

CAPEX

NET WORKING CAPITAL

COMMENTARY			NET WORKING CAPITAL EVOLUTION
	NET WORKING CAPITAL €55.5M AS AT €66.7M 31 MARCH COMPARED TO AS OF	31 MARCH 2021, OF 2020	(€M) 300	14.3%		20%
	INCIDENCE LTM NET REVENUES NEW ON 14.3% IN Q1 2020, CONFIRMING COMPARED TO	YACHTS 11.6% AT EFFICIENCY	250		4.2%	11.6% 10%
	EVOLUTION NET WORKING CAPITAL OF BUSINESS SEASONALITY AND INCREASE IN	CONSISTENT WITH VOLUMES	200	66.7 10.0	19.3	55.5 0%
	INVENTORIES €83.6M, COMPARED TO AT DECEMBER 2020 AND €79.5M AS OF	€82.2M 31 AS OF 31 MARCH 2020	150 100	75.7	66.8	70.9 -10%
€29.6M, COMPARED €31.0M 31 FINISHED AT TO AT PRODUCTS  DECEMBER 2020, INCLUDING €18.8M TRADE-IN YACHTS ALREADY SOLD AT THE CLOSE OF THE PERIOD FOR DELIVERY IN THE		50	79.5	82.2	83.6 -20%
	FOLLOWING MONTHS BREAKDOWN INVENTORIES OF AS OF	31 MARCH 2021	0 -50	23.5 -122.1	17.2 -137.2	19.1 -30% -108.1 -40%
	€6.8M 8.1%	RAW MATERIALS AND CONSUMABLES	-100 -150	31-MAR-20	-9.7 31-DEC-20	-10.0 -50% 31-MAR-21
	€29.6M 35.4% €47.2M 56.4%	WORK IN PROGRESS AND SEMI-FINISHED PRODUCTS FINISHED PRODUCTS	OTHERS INVENTORIES TRADE	RECEIVABLES	NET TRADE NWC AS	ASSETS/(LIABILITIES) CONTRACT PAYABLES % OF LTM NET REVENUES NEW YACHTS

NET FINANCIAL POSITION AND LIQUIDITY

ORDER BACKLOG AS OF 31 MARCH 2021

ORDER BACKLOG EVOLUTION AS OF 30 APRIL 2021

COMMENTARY

NEW SX112 PRESENTED AT GENOA BOAT SHOW IN OCTOBER 2020

ORDER BACKLOG EVOLUTION

MARKET UPDATE STRONG REBOUND OF THE LUXURY SECTOR IN Q1, EXPECTED TO CONTINUE IN Q2

MARKET UPDATE THE YACHTING INDUSTRY IS EXPERIENCING A STRONG MOMENTUM LIKEWISE THE LUXURY SECTOR

FOCUS ON NEW MODELS – 2021 MULTIPLE LEVERS FOR PROFITABLE GROWTH

FIVE NEW MODELS TO BE LAUNCHED AT CANNES YACHTING FESTIVAL IN SEPTEMBER 2021, AN UNPRECEDENTED EFFORT MADE POSSIBLE THANKS TO THE DEVELOPMENT AND PRODUCTION WORK CARRIED OUT DURING THE MOST DIFFICULT MOMENTS OF THE PANDEMIC

SL90 ASYMMETRIC AND RESTYLING OF SL106A (YACHT DIVISION) BG72 (BLUEGAME DIVISION)

SD118 (YACHT DIVISION) SL120 ASYMMETRIC (YACHT DIVISION)

FOCUS ON NEW RANGES – 2022 MULTIPLE LEVERS FOR PROFITABLE GROWTH

THREE NEW PRODUCT RANGES TO BE LAUNCHED IN 2022, ENTERING NEW MARKET SECTORS, ALL OFFERING NOVEL AND CROSS-SEGMENT FEATURES, HIGHLY INSPIRED BY SUSTAINABILITY PRINCIPLES

SP ("SMART PERFORMANCE") – YACHT DIVISION

X-SPACE – SUPERYACHT DIVISION

BGM (BLUEGAME MULTI-HULL) – BLUEGAME

A STUNNING MOTORYACHT WHICH INCIDENTALLY HAS TWO HULLS.

PLEASE BE PATIENT…

FOCUS ON NEW RANGES – SP110 MULTIPLE LEVERS FOR PROFITABLE GROWTH

• A STUNNING DESIGN COMBINING THE LISSONI INDOOR STYLE TOGETHER WITH THE ZUCCON OUTDOOR LINES MARKS THE ENTRY OF SANLORENZO IN THE SEGMENT OF SPORT COUPÉS
• CARBON SANDWICH LAMINATION BY INFUSION TO MAXIMIZE THE STRENGTH AND REDUCE THE TOTAL WEIGHT OF THE CONSTRUCTION
• FRACTIONED ENGINES POWER PACK TO REACH THE BEST PERFORMANCES AT THE LOWEST FUEL RATE
• SCR EXHAUST SYSTEM TO REDUCE NOX EMISSIONS
• HULL DESIGN & WATER JET PROPULSION FOR BEST SEA KEEPING, TOP EFFICIENCY AND MANOEUVRABILITY AT ALL RANGE OF SPEED
• SOLAR PANELS POWER SUPPLY FOR THE LITHIUM BATTERY PACK TO RUN THE HOTEL LOADS

LESS WEIGHT. LESS POWER. LESS CONSUMPTION. SMART PERFORMANCE

FOCUS ON NEW RANGES – X-SPACE MULTIPLE LEVERS FOR PROFITABLE GROWTH

• A LENGTH OF 44 METRES, FIVE DECKS AND A TONNAGE OF 495GT, EXTRAORDINARY VOLUMES FOR A YACHT OF THIS SIZE
• POSITIONED BETWEEN CLASSIC NAVETTAS (SD LINE YACHT DIVISION) AND EXPLORERS (SUPERYACHT DIVISION), X-SPACE IS DESIGNED FOR EXPERT OWNERS WHO LOVE TO EXPLORE FARAWAY DESTINATIONS, WITHOUT RELINQUISHING THE ELEGANCE OF SANLORENZO'S LINES
• ENTRY LEVEL OF THE SUPERYACHT DIVISION, TARGETED AT NEW SEGMENT OF POTENTIAL OWNERS

FOCUS ON NEW RANGES – BGM MULTIPLE LEVERS FOR PROFITABLE GROWTH

• ULTIMATE INNOVATION AND SUSTAINABILITY PLATFORM, MARKING THE ENTRY IN THE MULTI-HULL SEGMENT
• SEA TRIALS WITH THE 1:1 PROTOTYPE TESTING UNIT RECENTLY COMPLETED:
• SUPERIOR PERFORMANCE AND SEAKEEPING RESULTS FAR BEYOND EXISTING MULTI-HULLS AND MOST MONO-HULLS
• EXTREME REDUCTION IN POWER REQUIREMENTS RESULTING IN FUEL SAVING FOR A TYPICAL SEASON (300 HOURS @ 18 KNOTS) EQUIVALENT TO 66,000 LITRES/€100,000/175 TONS OF CO2 EQUIVALENT
• LAUNCH IN SPRING 2022

2021 GUIDANCE (AS DISCLOSED ON 4 MAY 2021) HIGH DOUBLE-DIGIT GROWTH OF ALL METRICS

	IN MARKET, SANLORENZO THIS GROWING IS EXPECTED TO CAPITALISE ON THE STRENGTHS OF ITS BUSINESS MODEL:	(€M AND % OF NET REVENUES NEW YACHTS) MARGIN AS	2019 ACTUAL	2020 ACTUAL	2021 GUIDANCE
	SOLID YACHTING, WITH LEADERSHIP IN LUXURY A  POWERFUL BRAND EQUITY YACHTS QUANTITIES, STRICTLY BUILT IN LIMITED  MEASURE, ADDRESSED MADE TO TO A	NET REVENUES NEW YACHTS	455.9	457.7	530 – 540 ~+17% YoY ~85% COVERED BY CURRENT BACKLOG
	SOPHISTICATED AND LOYAL CLIENTELE UNIQUE DISTRIBUTION THROUGH HIGHLY SELECTIVE 	ADJUSTED EBITDA	66.0	70.6	86 – 88 ~+23% YoY
	BRAND REPRESENTATIVES FOCUS VALUE-ADDED ON PHASES ALLOWING FOR A 	ADJUSTED EBITDA MARGIN	14.5%	15.4%	16.2% – 16.3% ~+85bps YoY
	FLEXIBLE COST STRUCTURE SANLORENZO'S MANAGEMENT EXPECTS A HIGH DOUBLE-DIGIT 2021, GROWTH OF ALL METRICS IN	GROUP NET PROFIT	27.0	34.5	43 – 44 ~+26% YoY
	BY: SUPPORTED BACKLOG PROVIDING HIGH VISIBILITY ON FUTURE 	INVESTMENTS	51.4	30.8	42 – 44 ~+40% YoY
	REVENUES: ~85% OF NET REVENUES EXPECTED NEW YACHTS, ~90% COVERED BY FINAL CLIENTS	NET CASH	(9.1)	3.8	14 – 16

• ROBUST PIPELINE OF NEW PRODUCT RANGES, ALSO IN NEW SEGMENTS, EXPECTED TO BOOST GROWTH
• PROGRESSIVE IMPLEMENTATION OF NEW PRODUCTION CAPACITY AND GRADUAL INCREASE IN PRICES OF NEW ORDERS DRIVING GROWTH IN PROFITABILITY

NOTES:

• ASSUMING NO MATERIAL IMPACTS FROM ADDITIONAL RESTRICTIONS ASSOCIATED WITH THE COVID-19 PANDEMIC
• EXCLUDING THE CONTRIBUTION FROM BUSINESS COMBINATIONS, SUCH AS THE POTENTIAL ACQUISITION OF PERINI NAVI
• REFER TO NOTES IN THE APPENDIX REGARDING FORWARD-LOOKING STATEMENTS

~+11

FOCUS ON SUPERYACHT DIVISION TRADING UPDATE

THREE NEW LAUNCHES SUPERYACHT DIVISION WHICH, IN THE FIRST HALF OF JULY, LAUNCHED THE FOURTH AND FIFTH UNITS OF THE ALLOY AND THE SIXTH UNIT OF THE 52STEEL AT THE LA SPEZIA SHIPYARD

Source: "Superyacht market surges as wealthy seek luxury and seclusion", Financial Times, 29 May 2021.

SECOND UNIT OF 57STEEL JUST SOLD IN ADDITION TO TWO CURRENTLY UNDER CONSTRUCTION

UPDATE ON PERINI NAVI

• PERINI NAVI DECLARED BANKRUPT ON 29 JANUARY 2021, EFFECTIVELY SHUT-DOWN WITH REDUNDANCY MEASURES FOR EMPLOYEES ("CASSA INTEGRAZIONE") IN PLACE SINCE APRIL 2020
• FENIX S.R.L. (PREVIOUS OWNER OF PERINI NAVI) FILED AN APPEAL AGAINST THE BANKRUPTCY, REJECTED BY THE COURT ON 30 APRIL 2021
• SALE OF SHIPYARD IN TURKEY AWARDED AT THE END OF APRIL FOR €30.6M
• SANLORENZO AND FERRETTI GROUP ESTABLISHED A 50-50 JOINT VENTURE RESTART S.P.A. IN ORDER TO JOIN FORCES FOR THE POTENTIAL ACQUISITION OF PERINI NAVI'S BRAND AND ITALIAN ASSETS
• AUCTION SCHEDULED ON 30 JULY 2021 FOR A TOTAL STARTING PRICE OF €62.5M, INCLUDING VIAREGGIO SHIPYARD (~€23.5M), LA SPEZIA SHIPYARD (~€21M), BRAND (~€13M), ONE YACHT UNDER CONSTRUCTION (~€2.1M), MACHINERY AND EQUIPMENT (~€1.8M)
• ON 7 JULY 2021 SANLORENZO AND FERRETTI GROUP ANNOUNCED THE DECISION NOT TO PARTICIPATE IN THE AUCTION, WHILE CONFIRMING THE INTEREST IN THE POTENTIAL ACQUISITION AT A REASONABLE PRICE, ESPECIALLY CONSIDERING THE SIGNIFICANT RESOURCES REQUIRED TO IMPLEMENT A LONG-TERM RECOVERY PLAN
• RESULTS OF THE AUCTION EXPECTED IN THE COMING DAYS. SHOULD THE ASSETS NOT BE AWARDED, A NEW ROUND IS EXPECTED TO BE CALLED IN THE COMING MONTHS, WITH 25% REDUCTION IN STARTING PRICE

"MALTESE FALCON", 88 METRES YACHT, FIRST OWNER: TOM PERKINS

RESPONSIBLE DEVELOPMENT

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY KEY PILLARS

«SUSTAINABILITY FOR US IMPLIES A RESPONSIBLE DEVELOPMENT, CONSTANTLY SEEKING A BALANCE BETWEEN THE NEED TO BE ECONOMICALLY EFFICIENT AND THE SENSE OF SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN PURSUING CORPORATE OBJECTIVES. ALWAYS NAVIGATING TOWARDS NEW GOALS, WE NOT ONLY COMMIT OURSELVES TO REACH THEM, BUT WE ALSO LOOK AT THE WAY WE DO IT»

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY PRODUCT RESPONSIBILITY

500EXPLORER – THE SCR (SELECTIVE CATALYTIC REDUCTION) IS COMBINED WITH AN ACTIVE REGENERATION PARTICULATE FILTER (DPF – DIESEL PARTICLE FILTER) CAPABLE OF ELIMINATING APPROX. 97% OF THE PARTICULAR MASS AND 99.99% OF THE NUMBER OF PARTICLES

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY PRODUCT RESPONSIBILITY

COMMITMENTS TAKEN AND RESULTS ACHIEVED DEFINED GOALS AND CURRENT APPROACH

• USE OF ENVIRONMENT FRIENDLY MATERIALS:
• FORMALDEHYDE-FREE FURNITURE
• RECYCLED TEAK AND FABRICS FOR INTERIORS AND EXTERIORS (E.G. FABRICS PRODUCED FROM RECYCLED PET BOTTLES) – PILOT PROJECT
• LEATHER WITH NATURAL TANNING PROCESS ON BGX70 PILOT PROJECT
• COMPLETION OF THE FIRST PRODUCT «LIFE CYCLE ASSESSMENT» (LCA) CONCERNING THE USE OF DIFFERENT TYPES OF RESINS IN THE PRODUCTION PROCESS
• FIRST RESULTS OF THE «REAL DUTY CYCLE» PROJECT, WHICH PROVIDED EMISSIONS DATA OF 30 SANLORENZO UNITS
• FINALIZED PROJECT FOR THE REDUCTION OF GHG & CO2 EMISSIONS:
• FIRST SUPERYACHT (UNDER 500 GT) WITH COMBO SCR FILTERS AND ANTI-PARTICULATE FILTERS (500EXPLORER, 2020)
• SYSTEM FOR AFTER-TREATMENT OF EXHAUST GAS FROM ENGINES AND GENSETS (500EXPLORER, 2020)
• USE OF THERMO-ACOUSTIC GLASS TO REDUCE POWER NEEDS FOR AIR CONDITIONING (500 EXPLORER, 2020)
• USE OF «ZERO EMISSION» SYSTEMS AT ANCHOR (SX112, 2020)

• REFITTING DIVISION AND SANLORENZO TIMELESS SERVICE TO BRING BACK USED YACHTS TO BRAND NEW CONDITIONS (SL55)

• FIRST SUPERYACHT WITH DIESEL ELECTRIC PROPULSION (57/61STEEL DE, EXPECTED DELIVERY IN 2024)

• PROJECT FOR THE REDUCTION OF «UNDERWATER NOISE» (500EXPLORER, EXPECTED DELIVERY IN 2021)
• FUEL CELLS FOR RANGE EXTENSION AND HOTELLERIE ONBOARD (500EXPLORER, DELIVERY EXPECTED IN 2025)
• DEVELOPMENT OF NEW HULL SHAPES WITH IMPROVED EFFICIENCY IN THE REAL CRUISING CONDITIONS (BGM75, EXPECTED DELIVERY IN 2022)
• IMPLEMENTATION OF FURTHER LCAS WITH EXPANSION OF THE PERIMETER ("FROM CRADLE TO GRAVE")

SL55 SPORT REFITTING PROJECT

AMEGLIA D2 SHIPYARD – PHOTOVOLTAIC PANELS ENABLING THE PLANT TO BE POWERED WITH SELF-PRODUCED RENEWABLE ENERGY

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY PROCESS AND SHIPYARDS RESPONSIBILITY

COMMITMENTS TAKEN AND RESULTS ACHIEVED DEFINED GOALS AND CURRENT APPROACH

• CERTIFICATIONS ENSURING COMPLIANCE WITH CURRENT REGULATIONS, ENVIRONMENTAL PROTECTION AND THE BEST WORKING CONDITIONS FOR INTERNAL WORKERS AND SUB-CONTRACTORS
• «ENVIRONMENTAL MANAGEMENT SYSTEM» (EMS) CERTIFIED ACCORDING TO THE UNI EN ISO 14001:2015 STANDARD
• «OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM» (OHSMS) CERTIFIED ACCORDING TO THE ISO 45001:2018 STANDARD
• USE OF GREEN ENERGY AT THE NEW SHIPYARD IN AMEGLIA (D2 SITE), WHERE THE PHOTOVOLTAIC PANELS INSTALLED IN 2019 ENABLE THE PLANT TO BE POWERED WITH SELF-PRODUCED RENEWABLE ENERGY (600,000 KW/H PER YEAR PRODUCED WITH 1,400 SOLAR PANELS)
• USE OF SUSTAINABLE PRODUCTION PROCESSES/SOLUTIONS:
• «INFUSION TECHNIQUE» FOR THE PRODUCTION (MONOLITHIC LAMINATION) OF SEMI-FINISHED PRODUCTS IN COMPOSITE, REDUCING AIR EMISSIONS
• USE OF PVC IN THE LAMINATION PROCESS FOR THE PRODUCTION OF SEMI-FINISHED PRODUCTS IN COMPOSITE
• USE OF PAINTS AND «ANTI-FOULING TREATMENTS» NOT DAMAGING MARINE BIOLOGICAL HABITAT (NEW SP LINE, SP110)

• FURTHER EXTENSION OF THE USE OF VACUUM INFUSION PROCESS FOR THE PRODUCTION OF COMPOSITE YACHTS (NEW SP LINE, SP110 – COMPLETE HULL OBTAINED THROUGH INFUSION)

• OBTAINMENT OF ISO 50001:2018 CORPORATE CERTIFICATION AND CREATION OF AN «ENERGY MANAGEMENT SYSTEM» (ENMS) COMPLEMENTARY TO THE OTHER SYSTEMS IN PLACE WITHIN 2023

• 5-YEAR INVESTMENT PLAN FOR THE INSTALLATION OF SOLAR PANELS IN ALL OTHER SHIPYARDS
• GOAL IS TO ACHIEVE A PROGRESSIVE REDUCTION OF THE SHARE OF FOSSIL FUELS ENERGY OF OUR FACILITIES AND AT THE SAME TIME TO INCREASE THEIR ENERGY EFFICIENCY
• FIRST STEP IS THE INVESTMENT IN HEAT PUMPS POWERED BY SOLAR PANELS AT LA SPEZIA SHIPYARD BY THE END OF 2023, EXPECTED TO REDUCE CO2 EMISSIONS BY 1,500 TONS EQUIVALENT PER YEAR
• RELEASE OF THE FIRST «SUSTAINABLE DESIGN MANUAL» IN THE YACHTING INDUSTRY, BASED ON THE «DESIGN FOR DISASSEMBLY» APPROACH
• GOAL IS TO DEFINE AN EASILY REVERSIBLE ASSEMBLY METHOD TO FACILITATE THE DISMANTLING AND RENEWAL OF THE YACHT
• COMPLETION OF THE PRELIMINARY STUDIES EXPECTED BY THE END OF 2021 AND RELEASE OF THE MANUAL BY THE END OF 2022

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY SUPPLY CHAIN & LOCAL CLUSTER DEVELOPMENT

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY SUPPLY CHAIN & LOCAL CLUSTER DEVELOPMENT

COMMITMENTS TAKEN AND RESULTS ACHIEVED DEFINED GOALS AND CURRENT APPROACH

• PARTICIPATION TO THE «TABLE FOR THE PREVENTION AND FIGHT AGAINST ILLEGAL HIRING» PROMOTED BY CONFINDUSTRIA NAUTICA
• APPROVAL OF A NEW PROTOCOL PROVIDING ADDITIONAL CONTROLS ON CONTRACTORS AND SUBCONTRACTORS APPLICABLE TO COMPANIES LOCATED IN THE LA SPEZIA PROVINCE AND COMPANIES ASSOCIATED WITH CONFINDUSTRIA
• TRAINING ON SPECIFIC SUBJECTS RELATED TO SUSTAINABILITY IN THE YACHTING INDUSTRY THROUGH THE SANLORENZO ACADEMY

• INNOVATIVE FINANCING SOLUTIONS AIMED AT SUPPORTING SMES IN THE SUPPLY CHAIN THROUGH THE POSSIBILITY OF ADVANCING TRADE RECEIVABLES WITH SANLORENZO TOTALLING €80M WITH PRIMARY FINANCIAL INSTITUTIONS

• APPROVAL OF SA 8000 CERTIFICATION EXPECTED BY THE END OF 2021

• SELECTION AND PERIODIC CONTROLS OVER SUPPLIERS AND CONTRACTORS BASED ON SUSTAINABILITY SCORES THROUGH THE DRAFTING OF SPECIFIC QUESTIONNAIRES
• SUPPORT IN THE RE-LOCATION OF SUPPLIERS AND CONTRACTORS NEAR SANLORENZO'S SHIPYARDS, MAKING AVAILABLE LARGE AREAS TO PERFORM WORKS ON SITE IN COLLABORATION WITH CONFINDUSTRIA LA SPEZIA, REDUCING TRANSPORT CHARGES AND COMPLEXITY
• TRAINING ON SPECIFIC SUBJECTS TO SUPPLIERS & CONTRACTORS BASED ON THEIR REQUESTS (E.G. 2021 COURSE FOR PLUMBERS) THROUGH THE SANLORENZO ACADEMY

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY SOCIAL RESPONSIBILITY & HUMAN RESOURCES

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY SOCIAL RESPONSIBILITY & HUMAN RESOURCES

COMMITMENTS TAKEN AND RESULTS ACHIEVED DEFINED GOALS AND CURRENT APPROACH

• CORPORATE «WELFARE MODEL»
• IMPLEMENTATION OF «CONSTRUCTIVE LISTENING» PROJECT WITH PRAXI AIMED AT SHAPING THE SANLORENZO OF THE FUTURE
• SANLORENZO VACCINATION HUB WITH MORE THAN 250 DIRECT EMPLOYEES AND 150 INDIRECT WORKS VACCINATED IN TWO WEEKS
• OTHER HR INITIATIVES:
• EMPLOYEE GROWTH AND DEVELOPMENT PLANS
• HR HELP DESK
• ENHANCED RELATIONS WITH TRADE UNIONS

• NEW SECOND LEVEL EMPLOYMENT AGREEMENT WITH IMPROVED CONDITIONS

• PROGRAM FOR SOCIAL ASSISTANCE AND PSYCHOLOGICAL SUPPORT FOR EMPLOYEES AND THEIR FAMILIES (E.G. PEOPLE WHO HAVE CHILDREN WITH DISABILITIES), IN COLLABORATION WITH CONFINDUSTRIA AND OTHER LOCAL COMPANIES

• TRAINING PROGRAM ON SUSTAINABILITY TO THE WHOLE POPULATION
• INTRODUCTION OF ESG OBJECTIVES IN THE MBO SYSTEM

SANLORENZO'S STRATEGIC APPROACH TO SUSTAINABILITY GOVERNANCE, TRANSPARENCY AND COLLABORATION

• NEW ORGANISATIONAL STRUCTURE WITH MANAGEMENT FIGURES DEDICATED TO SUSTAINABILITY REPORTING TO THE SUSTAINABILITY OFFICER
• CONTROL, RISK AND SUSTAINABILITY COMMITTEE WITHIN THE BOARD OF DIRECTORS
• INTRODUCTION OF SUSTAINABILITY OBJECTIVES IN THE MBO SYSTEM AND IN THE VARIABLE REMUNERATION OF TOP MANAGEMENT

GOVERNANCE TRANSPARENCY

• INVOLVEMENT IN THE «YACHT ENVIRONMENTAL TRANSPARENCY INDEX (YETI)» PROJECT FOR NEW CONSTRUCTIONS AHEAD OF THE INTRODUCTION OF IMO REQUIREMENTS, IN COLLABORATION WITH THE WATER REVOLUTION FOUNDATION
• NON-FINANCIAL STATEMENT AND EXTENSIVE REPORTING ON ESG MATTERS

COLLABORATION

• PARTNERSHIP AND ACTIVE SUPPORT TO NO-PROFIT ASSOCIATIONS ACTIVE IN THE PRESERVATION OF SEAS AND OCEANS – WATER REVOLUTION FOUNDATION AND BLUE MARINE FOUNDATION
• SANLORENZO FOUNDATION
• CONTINUOUS DIALOGUE WITH ENVIRONMENTAL AGENCIES (EU, IMO, EPA)
• ACTIVE PARTICIPATION TO WORKING GROUPS OF ICOMIA, SYBASS, NMMA, EUROMOT, WHERE NEW PROPOSALS FOR ENVIRONMENTAL REGULATIONS ARE DEVELOPED

STRONG HERITAGE IN LINE WITH ITS LOYAL CUSTOMERS

APPENDIX

PROVEN RESILIENCE OVER THE CYCLE

Source: Company information, management assessment, consolidated annual reports and Deloitte.

1 Source: Deloitte Boating Market Monitor. The new boating market does not include the personal watercrafts and other small boats less than 2.5 meters. The figures consider the revised estimates of National Marine Manufacturers Association (NMMA) and adjustment in the historical exchange rate.

• 2 Based on consolidated accounts as per Italian GAAP until 2015, then according to IFRS . Fiscal year ending December 31.
• 3 Based on consolidated accounts as per Italian GAAP. Fiscal year ending August 31.
• 4 Based on consolidated accounts as per IFRS. Fiscal year ending August 31 until 2012, then ending December 31.
• 5 2006-2008 figures including Pinmar and Apremare (~€65m revenues), then disposed in 2010.

ITALIAN YACHTING SECTOR HISTORICAL PERFORMANCE

ITALIAN YACHTING SECTOR: 2000-2019 TURNOVER

FINANCIAL HIGHLIGHTS FY 2020

NET REVENUES NEW YACHTS

EBIT

34.5

7.5%

FY 2020

RECLASSIFIED CONSOLIDATED INCOME STATEMENT

(€'000)		Three months ended 31 March	Change
	2021	% Net Revenues New Yachts	2020	% Net Revenues New Yachts	2021 vs. 2020	2021 vs. 2020%
Net Revenues New Yachts	118,011	100,0%	97,945	100.0%	20,066	+20.5%
Net revenues from pre-owned boats, maintenance and other services	22,074	18.7%	208	0.2%	21,866	+10,512.5%
Other income	895	0.8%	1,133	1.2%	(238)	-21.0%
Operating costs	(123,671)	(104.8)%	(85,807)	(87.6)%	(37,864)	+44.1%
Adjusted EBITDA	17,309	14.7%	13,479	13.8%	3,830	+28.4%
Non-recurring costs	(252)	(0.2)%	(135)	(0.1)%	(117)	+86.7%
EBITDA	17,057	14.5%	13,344	13.6%	3,713	+27.8%
Depreciation and amortisation	(5,024)	(4.3)%	(4,500)	(4.6)%	(524)	+11.6%
EBIT	12,033	10.2%	8,844	9.0%	3,189	+36.1%
Net financial expense	(209)	(0.2)%	(570)	(0.6)%	361	-63.3%
Adjustments to financial assets	4	0.0%	29	0.0%	(25)	-86.2%
Pre-tax profit	11,828	10.0%	8,303	8.5%	3,525	+42.5%
Income taxes	(3,586)	(3.0)%	(2,526)	(2.6)%	(1,060)	+42.0%
Net profit	8,242	7.0%	5,777	5.9%	2,465	+42.7%
Net (profit)/loss attributable to non-controlling interests	18	0.0%	154	0.2%	(136)	-88.3%
Group net profit	8,260	7.0%	5,931	6.1%	2,329	+39.3%

RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(€'000)	31 March	31 December	31 March	Change
	2021	2020	2020	31 March 2021 vs 31 December 2020	31 March 2021 vs 31 March 2020
USES
Goodwill	8,667	8,667	8,667	-	-
Intangible assets with a finite useful life	41,227	36,434	35,683	4,793	5,544
Property, plant and equipment	111,801	112,491	104,214	(690)	7,587
Other equity investments and other non-current assets	416	412	408	4	8
Net deferred tax assets	6,193	6,538	3,102	(345)	3,091
Non-current employee benefits	(899)	(845)	(818)	(54)	(81)
Non-current provisions for risks and charges	(1,256)	(1,389)	(898)	133	(358)
Net fixed capital	166,149	162,308	150,358	3,841	15,791
Inventories	83,627	82,214	79,541	1,413	4,086
Trade receivables	19,113	17,233	23,465	1,880	(4,352)
Contract assets	122,033	112,938	98,790	9,095	23,243
Trade payables	(108,108)	(137,238)	(122,070)	29,130	13,962
Contract liabilities	(51,156)	(46,156)	(23,115)	(5,000)	(28,041)
Other current assets	34,196	30,434	44,182	3,762	(9,986)
Current provisions for risks and charges	(12,421)	(12,679)	(10,271)	258	(2,150)
Other current liabilities	(31,813)	(27,492)	(23,872)	(4,321)	(7,941)
Net working capital	55,471	19,254	66,650	36,217	(11,179)
NET INVESTED CAPITAL	221,620	181,562	217,008	40,058	4,612

SOURCES
Net financial position	25,878	(3,829)	60,712	29,707	(34,834)
Equity	195,742	185,391	156,296	10,351	39,446
TOTAL SOURCES	221,620	181,562	217,008	40,058	4,612

CONSOLIDATED CASH FLOW STATEMENT AND NET FINANCIAL POSITION

RECLASSIFIED CASH FLOW STATEMENT NET FINANCIAL POSITION

(€'000)	31 March 2021	31 March 2020
EBITDA	17,057	13,344
Taxes paid	-	(79)
Changes in inventories	(1,413)	(17,230)
Change in net contract assets and liabilities	(4,095)	(7,228)
Change in trade receivables and payments on account to suppliers	(101)	(4,476)
Change in trade payables	(29,131)	(30,119)
Change in provisions and other assets and liabilities	(4,801)	1,432
Operating cash flow	(22,484)	(44.356)
Change in non-current assets (Capex)	(5,641)	(6,430)
Business acquisitions and other changes	656	-
Free cash flow	(27,469)	(50,786)
Net financial expense	(272)	(541)
Other changes in Shareholders' Equity	(1,966)	(322)
Change in net financial position	(29,707)	(51,649)
Beginning net financial position	(3,829)	9,063
Ending net financial position	25,878	60,712

(€'000)	31 March 2021	31 December 2020	31 March 2020
Cash and cash equivalents	(65,665)	(94,359)	(63,341)
Other liquid assets	-	-	-
Securities held for trading	-	-	-
Cash	(65,665)	(94,359)	(63,341)
Current financial receivables	(1)	(647)	(160)
Current bank payables	6,616	218	55,046
Current portion of debt	26,225	25,572	17,428
Other current financial payables	2,628	2,642	1,777
Current financial debt	35,469	28,432	74,251
Net current financial debt	(30,197)	(66,574)	10,750
Non-current bank payables	53,869	57,932	48,243
Bonds issued	-	-	-
Other non-current payables	2,206	4,813	1,719
Non-current financial debt	56,075	62,745	49,962
Net financial position	25,878	(3,829)	60,712

NOTICE TO RECIPIENT

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The information contained in this presentation, which has been prepared by Sanlorenzo S.p.A. (the "Company") and its consolidated subsidiaries (together, the "Group") and it is under the responsibility of the Company, does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. The information and opinions contained in this document are provided as at the date of the presentation and are subject to change. Neither the Company nor the Group are under any obligation to update or keep current the information contained in this presentation.

The director in charge of preparing the corporate accounting documents, Attilio Bruzzese, declares that pursuant to and for the purposes of article 154-bis, paragraph 2 of Italian Legislative Decree no. 58 of 1998, the accounting information contained in this document corresponds to company documents, ledgers and accounting records.

Forward-Looking Statements: this document may include projections and other "forward-looking" statements within the meaning of applicable securities laws. In particular, all statements that address expectations or projections about the future, including statements about operating performance, market position, industry trends, general economic conditions, expected expenditures, cost-savings, synergies and financial results, are forward-looking statements. Consequently, any statements contained herein that are not statements of historical fact are forward-looking statements.

Forward-looking statements are based on assumptions and current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Accordingly, actual events or results or actual performance of the Company or the Group may differ significantly, positively or negatively, from those reflected or contemplated in such forward-looking statements made herein. The Group expressly disclaims any duty, undertaking or obligation to update publicly or release any revisions to any of the information, opinions or forward looking statements contained in this document to reflect any events or circumstances occurring after the date of the presentation of this document. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements.

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This presentation contains alternative performance indicators that are not recognized by IFRS. Different companies and analysts may calculate these non-IFRS measures differently, so making comparisons among companies on this basis should be done very carefully. These non-IFRS measures have limitations as analytical tools, are not measures of performance or financial condition under IFRS and should not be considered in isolation or construed as substitutes for operating profit or net profit as an indicator of our operations in accordance with IFRS.