Sanlorenzo — Management Reports 2024

Mar 15, 2024

Informazione Regolamentata n. 2211-46-2024	Data/Ora Inizio Diffusione 15 Marzo 2024 13:22:12		Euronext Star Milan
Societa'	:	SANLORENZO
Identificativo Informazione Regolamentata	:	187446
Utenza - Referente	:	SANLORENZON03 - -
Tipologia	:	1.1; 3.1
Data/Ora Ricezione	:	15 Marzo 2024 13:22:12
Data/Ora Inizio Diffusione	:	15 Marzo 2024 13:22:12
Oggetto	:	FY 2023 Results and 2024 Guidance
Testo del comunicato

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SANLORENZO S.P.A.: THE BOARD OF DIRECTORS APPROVED THE CONSOLIDATED FINANCIAL STATEMENTS AND THE DRAFT SEPARATE FINANCIAL STATEMENTS AS OF 31 DECEMBER 2023 AND 2024 GUIDANCE

Net Revenues New Yachts +13.4% YoY at €840.2 million,

EBITDA at €157.5 million (18.7% on revenues) and EBIT at €125.9 million (15.0% on revenues).

Group net profit at €92.8 million (11.1% on revenues), +25.2% YoY,

also exceeding the top of the range of 2023 Guidance (€86-89 million).

Net cash position +€40.2 million YoY at €140.5 million.

Proposed a dividend of €1.0 per share (pay-out approx. 38%), increasing by 52% compared to 2022.

2024 Guidance envisages a continued growth in revenues at a sustainable rate paired with expected profitability in further expansion, in line with strategic targets.

Consolidated results for the year ended 31 December 2023:

• Net revenues from the sale of new yachts ("Net Revenues New Yachts") confirmed at €840.2 million, +13.4% compared to 2022
• EBITDA confirmed at €157.5 million, +21.5% compared to 2022, margin on Net Revenues New Yachts equal to 18.7%, +120 basis points, marginality expansion reflects the unique market positioning of the brand and the persistent product desirability, paired with supply scarcity, peculiar of the Maison Sanlorenzo business model
• EBIT at €125.9 million, +22.5% compared to 2022, margin on Net Revenues New Yachts equal to 15.0%, +110 basis points, exceeding 16% in both Q3 and Q4 and reflecting an optimised fixed asset base in relation to the generated operating profit, notwithstanding the continuous expansionary capex carried out to sustain future growth
• Group net profit at €92.8 million, +25.2% compared to 2022, also exceeding the top of the range of 2023 Guidance (€86-89 million), thanks to an increasingly optimised treasury management. Margin on Net Revenues New Yachts equal to 11.1%, +110 basis points
• Organic net investments confirmed for €44.5 million, a 5.3% incidence on Net Revenues New Yachts, of which 90% expansionary, dedicated to production capacity increase and to develop new models and lines
• Net cash position confirmed at €140.5 million as of 31 December 2023. Strong cash generation equal to €40.2 million, net of €22.9 million dividends distribution, €3.3 million share buy-back, €44.5 million organic net investments, as well as €11.3 million impact on NFP from the consolidation of Duerre and Sea Energy. Therefore, NFP, on a like-for-like basis, would amount to €151.8 million

• Net backlog equal to €1,041.7 million as of 31 December 2023, 90% sold to final clients, of which €587.1 million referring to 2024 and €454.6 million to following years, providing a high level of visibility over a wide timeframe

The Board of Directors has also:

• Proposed a dividend of €1.0 per share, equal to about 38% of Group net profit, +52% of 2022 dividend per share
• Presented 2024 Guidance, envisaging a sustainable growth rate of the main metrics
• Approved the 2023 Consolidated Non-Financial Statement, fourth year of comprehensive reporting on environmental, social and governance matters

La Spezia, 15 March 2024 – The Board of Directors of Sanlorenzo S.p.A. ("Sanlorenzo" or the "Company"), which met today under the chairmanship of Mr. Massimo Perotti, examined and approved the consolidated financial statements and the draft separate financial statements as of 31 December 2023 and the 2024 Guidance.

Massimo Perotti, Chairman and Chief Executive Officer of the Company, commented:

«The year 2023 confirms the substance of our reality, an icon of Made in Italy that embodies the highest range of "madeto-measure beauty", combining it with the most advanced engineering and technological expertise. A rare gem, which reflects its uniqueness in the quality of the numbers that I am proud to present once again.

Today we release the Guidance for 2024, in continuity with the path of harmonious and profitable organic growth we foresee for the long-term. At the same time, we are best positioned to seize M&A opportunities, as demonstrated by the recent closing of Simpson Marine. This acquisition has proven our ability to execute a complex cross-border transaction, which accelerates our international strategy in key markets, as outlined in the last Business Plan.

With Simpson Marine we are adding a further piece to our direct distribution network, which spans from the Americas to the Far East, which will be the backbone of a global offering of a wide range of strategic and lucrative services such as charter, refit, superyacht brokerage and yacht concierge. The potential of this stream of business, as of today still broadly untapped, is crystal clear.

The strength of our balance sheet, paired with a cashflow generation on a consistent basis, allow us to take advantage of acquisition opportunities that arise in the market, while remunerating our Shareholders with a solid dividend growth and keeping a robust and balanced financial profile.»

CONSOLIDATED NET REVENUES NEW YACHTS

Net Revenues New Yachts¹ for the year ended 31 December 2023 amounted to €840.2 million, up by 13.4% compared to €740.7 million in 2022. In the fourth quarter, Net Revenues New Yachts are equal to €214.2 million, up by 8.9% compared to €196.6 million in the same period of 2022.

These important results continue to benefit from the progressive and reasoned increase in average selling prices and the change in the product mix in favour of larger yachts in each business unit.

The performance of Net Revenues New Yachts by division and geographical area is detailed in the tables below.

(€'000) Year ended 31 December Change 2023 % of total 2022 % of total 2023 vs. 2022 2023 vs. 2022% Yacht Division 510,603 60.8% 464,520 62.7% 46,083 +9.9% Superyacht Division 238,256 28.3% 200,199 27.0% 38,057 +19.0% Bluegame Division 91,305 10.9% 75,960 10.3% 15,345 +20.2% Net Revenues New Yachts 840,164 100.0% 740,679 100.0% 99,485 +13.4%

NET REVENUES NEW YACHTS BY DIVISION

The performance of all divisions benefits from the success of the new products, both those recently launched, in particular the SX100 of the Yacht Division, the X-Space of the Superyacht Division and the multi-hull BGM75 of Bluegame, as well as the models that will be presented during 2024, such as the SD132, the first composite 40 meter yacht of the Group, and the awaited 50Steel, the first superyacht in the world with the integration of fuel cell systems running on green hydrogen, continuously reformed on-board from green methanol, to generate the electricity to power the yacht hotellerie services.

NET REVENUES NEW YACHTS BY GEOGRAPHICAL AREA
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(€'000)	Year ended 31 December					Change
	2023	% of total	2022	% of total		2023 vs. 2022 2023 vs. 2022%
Europe	577,238	68.7%	417,268	56.3%	159,970	+38.3%
Americas	92,594	11.0%	171,497	23.2%	(78,903)	-46.0%
APAC	91,999	11.0%	109,273	14.8%	(17,274)	-15.8%
MEA	78,333	9.3%	42,641	5.7%	35,692	+83.7%
Net Revenues New Yachts	840,164	100.0%	740,679	100.0%	99,485	+13.4%

In particular, 2023 results have been achieved despite a contribution from the Americas area significantly lower than the historical average; it is reasonable to expect a return to normalised values in terms of turnover mix and relative potential upside in the medium term.

CONSOLIDATED OPERATING AND NET RESULTS

EBITDA² amounted to €157.5 million, up by 21.5% compared to €129.6 million in 2022. The margin on Net Revenues New Yachts is equal to 18.7%, up by around 120 basis points compared to 2022, as proof of the solidity of the business model and the ability to practice sustainable pricing policies, consistent with the brand positioning.

¹Net Revenues New Yachts are calculated as the algebraic sum of revenues from contracts with customers relating to the sale of new yachts (recognised over time with the "cost-to-cost" method) and pre-owned yachts, net of commissions and trade-in costs of pre-owned boats.

² EBITDA is calculated by adding amortisation/depreciation expenses to operating profit/loss.

EBIT amounted to €125.9 million, up by 22.5% compared to €102.7 million in 2022. The margin on Net Revenues New Yachts is equal to 15.0%, up by around 110 basis points compared to 2022, in spite of a 17.4% increase in depreciation and amortisation that stood at €31.6 million, following the implementation of the investments aimed at increasing production capacity and new products and ranges development.

Net financial income for 2023 amounted to €3.6 million, consisting of €6.1 million in income mainly from available cash investment and €2.5 million in charges mostly from outstanding loans. The best result of the financial area stems, on the one hand, from the proactive liquidity management in a more favourable market dynamic compared to 2022 and, on the other hand, from the virtuous management of the cost of debt, including through the early repayment of variable-rate loans, allowing the Group to benefit from significant spreads between the cost of debt and the efficient use of liquidity.

Pre-tax profit amounted to €129.7 million, up by 26.8% compared to €102.3 million in 2022.

Group net profit reached €92.8 million, up by 25.2% compared to €74.2 million in 2022. The margin on Net Revenues New Yachts is equal to 11.1%, up by around 110 basis points compared to 2022.

CONSOLIDATED BALANCE SHEET AND FINANCIAL RESULTS

Net working capital was steady and negative for €34.9 million as of 31 December 2023, compared to a negative figure of €37.0 million as of 31 December 2022, a stable result in the area of -5% of year-end revenues.

Inventories were equal to €85.4 million, up by €32.0 million compared to 31 December 2022. Work in progress and semi-finished products amounted to €49.7 million, up by €15.4 million compared to 31 December 2022, reflecting the progressive increase in backlog.

Finished products referred to pre-owned yachts were equal to €22.1 million. These inventories, which are mainly in the American market, included €5.4 million referred to yachts already sold at year-end for delivery in the following months.

Organic net investments amounted to €44.5 million, of which approximately 90% dedicated to expand production capacity and to develop new models and ranges. The incidence on Net Revenues New Yachts showed a reduction, amounting to 5.3%, mainly as a result of an ever-expanding revenue base, given a substantially stable average amount of investment needed for a new model development. Including the effect of the inclusion of Duerre S.r.l. and Sea Energy S.r.l. in the scope of consolidation, total investments amounted to €64.7 million, up by 9.6% compared to €59.0 million in 2022.

Net cash position as of 31 December 2023 was equal to €140.5 million, up by €40.2 million compared to €100.3 million as of 31 December 2022, net of the payment of dividends for €22.9 million, the share buy-back for €3.3 million, organic net investments for €44.5 million and impact on NFP from changes of the consolidation perimeter of €11.3 million, as a result of the acquisition of the majority and relative consolidation of Duerre S.r.l. and Sea Energy S.r.l.

Liquidity amounted to €216.6 million, of which €192.5 million referred to cash, up by €14.8 million compared to 31 December 2022. Ready to seize new investment opportunities, the Company continues the flexible and diversified liquidity management strategy, with financial investments totalling €24.0 million as of 31 December 2023 included in other current financial assets.

Financial indebtedness was equal to €76.1 million, of which €47.3 million current and €28.8 million non-current. Lease liabilities, included pursuant to IFRS 16, amounted to €9.0 million.

BACKLOG

The order intake of the fourth quarter 2023, amounting to €207.8 million, speeds up to 30% compared to the fourth quarter 2022 (equal to €159.1 million), and added to €604.5 million of the first nine months of the year, totalling €812.2 million of new orders collected during 2023. This result represents a physiological normalization compared to the figure of €894.7 million in 2022, partially due to longer waiting times for yachts delivery, given the planned deliveries up to 2028.

Backlog³ as of 31 December 2023, cleared from Net Revenues New Yachts recorded during the year, amounted to €1,041.7 million, compared to €1,069.6 million as of 31 December 2022, 90% sold to final clients.

The amount of backlog referred to 2024, equal to €587.1 million, allows a consistent coverage of the expected revenues in the current year.

The visibility on revenues related to subsequent years, with orders for €454.6 million beyond 2024, remains particularly high, with sold deliveries up to 2026 for the Yacht Division and up to 2028 for the Superyacht Division. Bluegame enjoys sold deliveries up to 2025, a distinctively long timeframe for its reference market segment below 24 metres in length.

(€'000)	Year ended 31 December		Change
	2023 2022		2023 vs. 2022	2023 vs. 2022%
Gross backlog	1,881,859	1,810,298	71,561	+4.0%
Net Revenues New Yachts for the period	840,164	740,679	99,485	+13.4%
Net backlog	1,041,695	1,069,619	(27,924)	(2.6%)
Of which subsequent year	587,112	617,394	(30,282)	(4.9%)
Of which following years	454,583	452,225	2,358	+0.5%

(€'000)	Change (order intake)
	Q1	Q2	Q3	Q4	Total 12M
Order intake 2023	170,112	181,350	253,016	207,762	812,240
Of which current year	79,084	49,500	73,207	20,979	222,770
Of which subsequent years	91,028	131,850	179,809	186,783	589,470
Order intake 2022	262,397	224,745	248,450	159,074	894,666
Of which current year	84,050	43,162	52,915	16,492	196,619
Of which subsequent years	178,347	181,583	195,535	142,582	698,047

³ Backlog is calculated as the sum of the value of all orders and sales contracts signed with customers or brand representatives relating to yachts for delivery or delivered in the current financial year or for delivery in subsequent financial years. For each year, the value of the orders and contracts included in backlog refers to the relative share of the residual value from 1 January of the financial year in question until the delivery date. Backlog relating to yachts delivered during the financial year is conventionally cleared on 31 December.

BUSINESS OUTLOOK

Sanlorenzo continues the track-record of solid performance in its core markets, particularly in Europe and in the MEA region, which more than compensate a slowdown in the Americas, which remained well below historical incidence throughout 2023.

Net backlog substantially remains in line with 2022 year-end, that was at record levels, envisaging again high quality (90% of it is sold to final clients), with high level of visibility on top line and marginality trend in the next quarters, as well as wide benefits in terms of future planning even in a context of overall macroeconomic and geopolitical uncertainty.

The global luxury yachting sector, even more so for the top-end positioned brands in the segment equal or above 30 metres in length, continues to benefit from the growth of Ultra High Net Worth Individuals (UHNWIs). The penetration rate of yachting into this target addressable market is below 3%, indicating wide room for expected growth in the future. In a market where the growth in the number of yachts in-build is on average lower than the growth in number of the UHNWIs, the upper segments of the sector keep benefiting from a potential demand higher than supply.

The Covid-19 pandemic has accelerated a structural shift in mentality among the UHNWIs and the way they balance their life, and yachting well responds to the new post-pandemic lifestyles. The recent technologic evolution with Starlink, which enables fast satellite connectivity on-board, even in the middle of the ocean or by the most remote islands, has created the "Work-from-Yacht" phenomenon. The average time spent on-board is consequently significantly extended, effectively increasing the appeal of yachting among the younger ultra-wealthy individuals, who are still working managing their business and their assets. As a proof of this new trend, the analysis of Sanlorenzo's yacht owners shows an increase in the average time spent on board per season from 60 to 120 days. The management believes that this new type of yachtsmen structurally adds to the historical clientele of traditional yachting.

Moreover, the significant decrease in average age of Sanlorenzo Superyacht buyers, from 56 years-old (2016-2020 average) to 49 years-old (2021-2023 average), if confirmed, will be the enabling factor behind the rising of a new generation and typology of yachtsmen to welcome to the Sanlorenzo Club of highly loyal customers.

These new ways of living the yacht have already been integrated in the new product lines and models presented at the European boat shows in September, as well as in those in pipeline until 2025, always loyal to the tradition that distinguishes the Group.

Also in terms of distribution, the closing of the acquisition of Simpson Marine at the beginning of March 2024 further strengthens the relationship and the ability to capillary intercept the needs of the final customer, current and potential, while offering a 360-degree service in one-stop-shop logic. Today Sanlorenzo boasts direct plugand-play distribution in several key countries, namely Hong Kong, Singapore, Mainland China (Shenzhen and Sanya), Thailand, Indonesia, Malaysia and Taiwan. Such a capillary network is deemed highly strategic for the long-term growth of Sanlorenzo in the APAC region, which is expected to witness the highest UHNWIs growth worldwide for the coming years, as well as a higher yachting penetration rate among the ultra-wealthy population, given the significantly lower starting basis compared to more historical yachting markets such as the Med and the Americas.

Ongoing public and private initiatives in the region, such as yachting marinas' development projects in Indonesia, Vietnam, and the Philippines, as well as along Chinese Southern coastline and the rise of Hainan as a new global luxury hub, reinforce optimism around the tremendous potential for a long-term wave of market expansion.

Overall, Sanlorenzo continues to benefit from a robust trend in its core markets and from the competitive advantages resulting from its peculiar business model: high-end brand positioning, with a limited number of units exclusively in the 24-75 metres segment, rigorously made-to-measure, distributed directly or through a highly selected number of brand representatives, always at the forefront of innovation and sustainable R&D.

All these are essential pillars to guarantee the long-term preservation of the virtuous tailwinds experienced until today.

A RESPONSIBLE PATH

GREEN-TECH SOLUTIONS FOR A SHIFT IN YACHTING PARADIGM

According to the new "SYBAss Economic Report 2023" release, up to 75% of potential buyers is interested in making its yacht more environmentally friendly. The combined pressure from customers, increasingly attentive to sustainability, and from an increasingly restrictive regulatory framework, in terms of maritime emissions, led Sanlorenzo to firmly believe that the implementation of a long-term, serious strategy on luxury yachting sustainability is no longer an option.

In light of the exclusive collaboration started already in 2021 with Siemens Energy, Superyachts above 40 metres in length will face the integration of fuel cell systems running on green hydrogen, continuously reformed on-board from green methanol, to generate the electricity to power the yacht hotellerie services. The first installation is expected on a Superyacht 50Steel, whose delivery is planned for 2024, with the fuel cell system just being certified by Lloyd's Register in late September 2023.

The chosen fuel of the future for vessels above 40 metres is green methanol, produced by combining green hydrogen that stores energy from renewable sources with CO2 captured from the atmosphere with carbon capture systems. The quantity of CO2 released in the atmosphere in the combustion process is therefore equal to the quantity of CO2 captured from the environment to produce methanol, allowing a circular system and full carbon neutrality.

By analysing the propulsion technologies on-board the cargo ships currently on order, it is evident that methanol is rapidly emerging as the main alternative fuel for shipping. In fact, although its weight on the total cargo ships order book is 3.4%, against 83.8% of conventional fossil fuels and 10.4% of LNG (Liquified Natural Gas), when looking at the orders signed during 2023, the weight of methanol rises to 11.0%, against 78.0% of conventional fuels and 8.0% of LNG⁴ . Thus, based on the sole orders of this year, methanol can already be considered as the main alternative shipping fuel, as well as the fastest growing one.

The segment of the yachts below 24 metres in length sees Bluegame engaged in the design and construction of the first chase boat with propulsion fed exclusively with hydrogen fuel cells and using foils, to reach 50 knots of speed up to 180 miles with zero emissions. This BGH-HSV model will debut alongside American Magic, challenger in the 37th edition of the prestigious America's Cup in 2024 co-sponsored by the New York Yacht Club, as well as alongside the French team Orient Express Racing Team, with which an agreement was reached right before the Cannes Yachting Festival.

Capitalising on the experience in this extremely complex project, today the highest possible expression of sustainable technology on board a boat, Bluegame is developing the multi-hull model BGM65HH (hydrogenhybrid), which will enable 80 miles of zero-emission cruising.

SUSTAINABLE AND PROFITABLE GROWTH

After an above-average growth for the two years post-Covid, with rates over 25%, Sanlorenzo consolidates the turnover, returning to an organic low double-digit growth rate in 2023, and settling on a high single-digit organic growth as a sustainable level over time.

Focused on the constant increase in margins, the Company can rely on a unique business model closer to luxury than to boating, and a savvy investment policy that ultimately translates into a high return on investment and a consistent cash generation capacity.

As a result, Sanlorenzo today boasts an extremely solid balance sheet, with more than €140 million of net cash financial position as of 31 December 2023, allowing the Company to seize acquisition opportunities that will come to the market, while keeping a robust and balanced financial profile.

⁴ Norwegian Hydrogen.

Possible additional development guidelines to the core business of new boat sales are:

• i) vertical integration: upstream, to keep securing the growth of key parts of the supply chain along with the Group's growth strategy; downstream, to manage directly final clients and to internalise the retail margin in highly strategic geographic areas in the long-term (i.e. Simpson Marine in the APAC region);
• ii) development of services, a huge potential to date only minimally exploited; refit, a highly profitable business, a-cyclical, and synergic with Sanlorenzo's customer base, which requires the acquisition of suitable infrastructures; charter, a flywheel to further spread the Sanlorenzo customer experience that exploits a direct distribution network from East to West, already in place; acquisition of infrastructures for refit services, only marginal as of today, a;
• iii) acquisition of niche brands with top-end positioning on market segments not overlapping with those covered today by Sanlorenzo, with synergies in terms of technologies and geographic distribution; in the area of sailboats, the Memorandum of Understanding signed at the end of December 2023 to explore a partnership with the Finnish Nautor Swan shipyard represents indeed a real example.

2024 GUIDANCE

In light of the consolidated results as of 31 December 2023 and taking into account the subsequent evolution of the order collection, the Company disclosed the Guidance for the year 2024⁵ , envisaging a sustainable growth of the main metrics over time.

(€ million and margin in % of Net Revenues New Yachts)	2022	2023	2024	2024 vs. 20236
	Actual	Actual	Guidance	Change
Net Revenues New Yachts	740,7	840,2	880-910	+7%
EBITDA7	130,2	157,5	168-176	+9%
EBITDA margin6	17,6%	18,7%	19,1%-19,3%	+50 bps
EBIT	102,7	125,9	135-141	+10%
EBIT margin	13,9%	15,0%	15,3%-15,5%	+40 bps
Group net profit	74,2	92,8	99-101	+8%
Investments	50,0	44,5	48-50	-
Incidence % on Net Revenues New Yachts	6,8%	5,3%	5,5%	+20 bps
Net financial position	100,3	140,5	160-170	+25m

⁵ On a like-for-like basis and excluding extraordinary transactions.

⁶ Calculated on the average of the Guidance interval.

⁷ 2022 figures referred to Adjusted EBITDA, which differed from reported EBITDA by less than 0.5%.

FINANCIAL STATEMENTS OF THE PARENT COMPANY SANLORENZO S.P.A.

The Board of Directors has also approved the draft separate financial statements of the Parent Company Sanlorenzo S.p.A., which recorded Net Revenues New Yachts of €742.5 million, up by 14.2% compared to 2022.

EBITDA amounted to €142.5 million, up by 26.0% compared to 2022, with a margin on Net Revenues New Yachts equal to 19.2%, up by around 180 basis points compared to 2022.

EBIT amounted to €116.1 million, up by 30.2% compared to 2022, with a margin on Net Revenues New Yachts equal to 15.6%, up by around 190 basis points compared to 2022, in spite of a 10.3% increase in depreciation and amortisation that stood at €26.4million, for the implementation of the investments made in the previous years.

Pre-tax profit amounted to €122.0 million, up by 37.1% compared to 2022. Income taxes amounted to €35.0 million, up by €9.4 million compared to €25.6 million in 2022.

Net profit reached €87.0 million, up by 37.3% compared to €63.4 million in 2022, with a margin on Net Revenues New Yachts equal to 11.7%, up by around 190 basis points compared to 2022.

Shareholders' equity at 31 December 2023 was equal to €338.5 million compared to €274.6 million at the end of the previous year and the net financial position was positive for €173.3 million compared to €110.1 million at 31 December 2022.

2023 CONSOLIDATED NON-FINANCIAL STATEMENT

The Board of Directors examined and approved the 2023 Consolidated Non-Financial Statement, prepared for the fourth year as a report separate from the financial statements in accordance with the requirements of Italian Legislative Decree no. 254/2016. The 2023 Consolidated Non-Financial Statement, prepared in accordance with the GRI Universal Standards, contains information relating to the Sanlorenzo Group's activity in connection with environmental, social, personnel, human rights, and anti-corruption issues.

The Group pursues a balance between financial, environmental and social objectives and monitors and reports its commitment within this document, through a 360-degree responsible approach that looks at product and process sustainability, human resources, supply chain and the entire territory.

PROPOSAL FOR THE ALLOCATION OF PROFIT

In accordance with the dividend policy approved on 9 November 2019, the Board of Directors resolved to propose to Shareholders' Meeting the payment of a dividend of €1.0 per share for the year 2023, equal to a payout of about 38% of Group net profit and up by 52% compared to 2022 dividend.

If approved by the Shareholders' Meeting, the dividend will be paid on 24 May 2024 (ex-dividend date on 22 May 2024 and record date on 23 May 2024).

OTHER RESOLUTIONS

The Board of Directors approved the Report on corporate governance and ownership structures pursuant to Article 123-bis of Italian Legislative Decree no. 58 of 24 February 1998 and the Report on the policy regarding remuneration and fees paid pursuant to Article 123-ter of Italian Legislative Decree no. 58 of 24 February 1998.

The Board of Directors also positively acknowledged the report of the Lead Independent Director and confirmed the independence status of the directors Licia Mattioli, Francesca Culasso, Leonardo Luca Etro and Marco Francesco Mazzù, both according to Italian Legislative Decree no. 58 of 24 February 1998 and to Recommendation 7 of the Corporate Governance Code, also in the light of the quantitative and qualitative guidelines to assess the

significance as confirmed and resolved by the Board of Directors of 14 March 2023⁸ . Similar positive verification was also carried out with respect to the members of the Board of Statutory Auditors.

NOTICE OF CALL OF THE ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

The Board of Directors has conferred powers on the Chairman and Chief Executive Officer to convene the Ordinary and Extraordinary Shareholders' Meeting for 26 April 2024, on first call, to approve the financial statements for the year ended 31 December 2023 and relating resolutions.

The notice convening the Ordinary Shareholders' Meeting and all the relative documents will be made available to the public, in accordance with current provisions, at the Company's offices in via Armezzone 3, Ameglia (SP), in the "Corporate Governance" sections of the Company's website (www.sanlorenzoyacht.com) and on the eMarket Storage mechanism ().

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Today at 2:30PM CET, the management of Sanlorenzo will hold a conference call to present FY 2023 consolidated results, 2024 guidance and the latest Company's updates to the financial community and the press.

Please click the following link to join the conference call: https://us02web.zoom.us/j/83946188960?pwd=RkdHQkY3c29vTlNVaE14ajZsM3Zudz09

The supporting documentation will be published in the "Investors" section of the Company's website (www.sanlorenzoyacht.com) before the conference call.

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The manager responsible for preparing the corporate accounts, Attilio Bruzzese, pursuant to Article 154-bis, paragraph 2, of Italian Legislative Decree no. 58 of 1998 ("Consolidated Finance Law - TUF") states that the information in this communication correspond to the records, ledgers and accounting entries.

This document includes forward-looking statements relating to future events and operational, economic and financial results of Sanlorenzo Group. These forecasts, by their nature, contain an element of risk and uncertainty, as they depend on the occurrence of future events and developments.

This document makes use of some alternative performance indicators. The represented indicators are not identified as accounting measurements in the context of IFRS standards and, therefore, must not be viewed as alternative measurements to those included in the financial statements. The management team believes that these indicators are a significant parameter for the assessment of the Group's economic and financial performance.

The consolidated financial statements and the draft separate financial statements as of 31 December 2023 are subject to audit procedures which are in the course of being completed at today's date. The 2023 Consolidated Non-Financial Statement is in turn subject to a limited assurance engagement by the auditors in accordance with Article 3, paragraph 10 of Italian Legislative Decree no. 254/2016.

The reclassified statement of profit or loss, statement of financial position and statement of cash flows in this document have not been audited by the independent auditors.

⁸These are the guidelines that were set out by the Board of Directors on 16 March 2021 and confirmed by the Board of Directors on 14 March 2023, as illustrated in the Report on corporate governance and ownership structures for the year 2022.

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Sanlorenzo S.p.A.

Sanlorenzo is a leading global brand in the luxury yachting which builds "made-to-measure" yachts and superyachts customized for each client, characterized by a distinctive and timeless design.

Founded in 1958 in Limite Sull'Arno (FI), the cradle of Italian shipbuilding, Sanlorenzo has excelled in carving out a clear identity and a high-end brand positioning over time. In 1974, Giovanni Jannetti acquired the company and created Sanlorenzo legend, producing every year a limited number of yachts characterized by a unique, highly recognizable style, comfort, safety and focusing on a sophisticated customer base. In 2005, Massimo Perotti, Executive Chairman, acquired the majority of Sanlorenzo, guiding its growth and development on international markets, while preserving the heritage of the brand.

Today, manufacturing activities are carried out in four shipyards in La Spezia, Ameglia (SP), Viareggio (LU) and Massa, synergistically and strategically located within a 50 kilometres radius, in the heart of the nautical district.

The production is articulated into three business units: Yacht Division (composite 24-40 metres yachts); Superyacht Division (44-73 metres aluminium and steel superyachts); Bluegame Division (13-23 metres sports utility yachts in composite). Sanlorenzo also offers an exclusive range of services dedicated to its clients, such as a monobrand charter program (Sanlorenzo Charter Fleet), maintenance, refit and restyling services (Sanlorenzo Timeless) and crew training (Sanlorenzo Academy).

The Group employs over 970 people and cooperates with a network of thousands of qualified artisan companies. In addition, the Group leverages on an international distribution network, a widespread service network for customers worldwide, close collaborations with world-renowned architects and designers and a strong liaison with art and culture.

In 2022, the Group generated net revenues from the sale of new yachts of €740.7 million, Adjusted EBITDA of €130.2 million (EBITDA of €129.6 million) and a Group net profit of €74.2 million.

www.sanlorenzoyacht.com

Investor Relations

Attilio Bruzzese Ivan Cutrufello Mob. +393356560754 investor.relations@sanlorenzoyacht.com

MSL – Press Office Sanlorenzo

Claudia Bolognese, Mob. +393482509892 Federico Unnia, Mob. +393357032646 Marco Capetti, Ph. +390277336020 sanlorenzo@mslgroup.com

SANLORENZO GROUP

RECLASSIFIED INCOME STATEMENT AS OF 31 DECEMBER 2023

(€'000)		Year ended 31 December
		2023 % Net Revenues New Yachts		2022 % Net Revenues		New Yachts 2023 vs. 2022 2023 vs. 2022%
Net Revenues New Yachts	840,164	100.0%	740,679	100.0%	99,485	+13.4%
Revenues from maintenance and other services	14,137	1.7%	10,453	1.4%	3,684	+35.2%
Other income	11,367	1.4%	7,412	1.0%	3,955	+53.4%
Operating costs	(707,830)	(84.2)%	(628,323)	(84.8)%	(79,507)	+12.7%
Adjusted EBITDA	157,838	18.8%	130,221	17.6%	27,617	+21.2%
Non-recurring costs	(352)	(0.0)%	(583)	(0.1)%	231	-39.6%
EBITDA	157,486	18.7%	129,638	17.5%	27,848	+21.5%
Amortisation/depreciation	(31,604)	(3.8)%	(26,909)	(3.6)%	(4,695)	+17.4%
EBIT	125,882	15.0%	102,729	13.9%	23,153	+22.5%
Net financial expense	3,613	0.4%	(545)	(0.1)%	4,158	(762.9%)
)Adjustments to financial assets	177	-	95	-	82	+86.3%
Pre-tax profit	129,672	15.4%	102,279	13.8%	27,393	+26.8%
Income taxes	(36,385)	(4.3)%	(27,540)	(3.7)%	(8,845)	+32.1%
Net profit	93,287	11.1%	74,739	10.1%	18,548	+24.8%
Net (profit)/loss attributable to non-controlling interests	(448)	(0.1)%	(585)	(0.1)%	137	(23.4%)
Group net profit	92,839	11.1%	74,154	10.0%	18,685	+25.2%

SANLORENZO GROUP

RECLASSIFIED STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2023

(€'000)	31 December		Change
	2023	2022	2023 vs. 2022	2023 vs. 2022%
USES
Goodwill	17,486	10,756	6,730	+62.6%
Other intangible assets	55,162	51,374	3,788	+7.4%
Property, plant and equipment	179,820	158,710	21,110	+13.3%
Equity investments and other non-current assets	6,564	11,426	(4,862)	(42.6%)
Net deferred tax assets	12,255	5,495	6,760	+123.0%
Non-current employee benefits	(2,491)	(1,109)	(1,382)	+124.6%
Non-current provisions for risks and charges	(14,404)	(9,944)	(4,460)	+44.9%
Net fixed capital	254,392	226,708	27,684	+12.2%
Inventories	85,421	53,444	31,977	+59.8%
Trade receivables	22,522	21,784	738	+3.4%
Contract assets	185,572	168,635	16,937	+10.0%
Trade payables	(203,812)	(155,979)	(47,833)	+30.7%
Contract liabilities	(125,441)	(132,369)	6,928	(5.2%)
Other current assets	59,725	60,388	(663)	(1.1%)
Current provisions for risks and charges	(8,571)	(8,039)	(532)	+6.6%
Other current liabilities	(50,333)	(44,828)	(5,505)	+12.3%
Net working capital	(34,917)	(36,964)	2,047	(5.5%)
Net invested capital	219,475	189,744	29,731	+15.7%
SOURCES
Equity	359,961	290,081	69,880	+24.1%
(Net financial position)	(140,486)	(100,337)	(40,149)	+40.0%
Total sources	219,475	189,744	29,731	+15.7%

SANLORENZO GROUP

NET FINANCIAL POSITION AS OF 31 DECEMBER 2023

(€'000)		31 December 2023	31 December 2022	Change
A	Cash	192,506	146,317	46,189
B	Cash equivalents	-	-	-
C	Other current financial assets	24,045	55,459	(31,414)
D	Liquidity (A + B + C)	216,551	201,776	14,775
E	Current financial debt	(28,285)	(28,307)	22
F	Current portion of non-current financial debt	(18,985)	(23,873)	4,888
G	Current financial indebtedness (E + F)	(47,270)	(52,180)	4,910
H	Net current financial indebtedness (G + D)	169,281	149,596	19,685
I	Non-current financial debt	(28,795)	(49,259)	20,464
J	Debt instruments	-	-	-
K	Non-current trade and other payables	-	-	-
L	Non-current financial indebtedness (I + J + K)	(28,795)	(49,259)	20,464
M	Total financial indebtedness (H+L)	140,486	100,337	40,149

SANLORENZO GROUP

RECLASSIFIED CONSOLIDATED STATEMENT OF CASH FLOWS AS OF 31 DECEMBER 2023

(€'000)	31 December 2023	31 December 2022	Change
EBITDA	157,486	129,638	27,848
Taxes paid	(39,398)	(19,853)	(19,545)
Changes in inventories	(31,977)	14,825	(46,802)
Change in net contract assets and liabilities	(23,865)	(22,020)	(1,845)
Change in trade receivables and advances to suppliers	(5,589)	(10,417)	4,828
Change in trade payables	47,833	35,854	11,979
Change in provisions and other assets and liabilities	12,658	17,084	(4,426)
Operating cash flow	117,148	145,111	(27,963)
Change in non-current assets (investments)	(44,501)	(49,952)	5,451
Business acquisitions and other changes	(6,574)	(15,052)	8,478
Free cash flow	66,073	80,107	(14,034)
Interest and financial charges	(2,518)	(826)	(1,692)
Other cash flows and changes in equity	(23,406)	(17,950)	(5,456)
Change in net financial position	40,149	61,331	(21,182)
Net financial position at the beginning of the period	100,337	39,006	61,331
Net financial position at the end of the period	140,486	100,337	40,149

SANLORENZO S.P.A.

RECLASSIFIED INCOME STATEMENT AS OF 31 DECEMBER 2023

(€'000)		Year ended 31 December			Change
		2023 % Net Revenues New Yachts		2022 % Net Revenues		New Yachts 2023 vs. 2022 2023 vs. 2022%
Net Revenues New Yachts	742,543	100.0%	650,130	100.0%	92,413	+14.2%
Revenues from maintenance and other services	9,588	1.3%	9,553	1.5%	35	+0.4%
Other income	8,851	1.2%	6,797	1.0%	2,054	+30.2%
Operating costs	(618,131)	(83.2)%	(552,793)	(85.0)%	(65,338)	+11.8%
Adjusted EBITDA	142,851	19.2%	113,687	17.5%	29,164	+25.7%
Non-recurring costs	(352)	(0.0)%	(583)	(0.1)%	231	(39.6%)
EBITDA	142,499	19.2%	113,104	17.4%	29,395	+26.0%
Amortisation/depreciation	(26,428)	(3.6)%	(23,970)	(3.7)%	(2,458)	+10.3%
EBIT	116,071	15.6%	89,134	13.7%	26,937	+30.2%
Net financial expense	5,262	0.7%	(261)	-	5,523	n.m.
Adjustments to financial assets	618	0.1%	72	-	546	+758.3%
Pre-tax profit	121,951	16.4%	88,945	13.7%	33,006	+37.1%
Income taxes	(34,991)	(4.7)%	(25,590)	(3.9)%	(9,401)	+36.7%
Net profit	86,960	11.7%	63,355	9.8%	23,605	+37.3%

SANLORENZO S.P.A.

RECLASSIFIED STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2023

(€'000)	31 December		Change
	2023	2022	2023 vs. 2022	2023 vs. 2022%
USES
Net fixed capital	229,958	217,601	12,357	+5.7%
Net working capital	(64,718)	(53,132)	(11,586)	+21.8%
Net invested capital	165,240	164,469	771	+0.5%
SOURCES

Total sources	165,240	164,469	771	+0.5%
(Net financial position)	(173,303)	(110,087)	(63,216)	+57.4%
Equity	338,543	274,556	63,987	+23.3%

SANLORENZO S.P.A.

NET FINANCIAL POSITION AS OF 31 DECEMBER 2023

(€'000)	31 December
	2023	of which intra-group	2022	of which intra-group
A Cash	183,138	-	139,351	-
B Cash equivalents	-	-	-	-
C Other current financial assets	24,557	621	55,254	131
D Liquidity (A + B + C)	207,695	621	194,605	131
E Current financial debt	(60)	-	(18,657)	-
F Current portion of non-current financial debt	(12,673)	-	(21,669)	-
G Current financial indebtedness (E + F)	(12,733)	-	(40,326)	-
H Net current financial indebtedness (G + D)	194,962	621	154,279	131
I Non-current financial debt	(21,659)	-	(44,192)	-
J Debt instruments	-	-	-	-
K Non-current trade and other payables	-	-	-	-
L Non-current financial indebtedness (I + J + K)	(21,659)	-	(44,192)	-
M Total financial indebtedness (H+L)	173,303	621	110,087	131

SANLORENZO S.P.A.

RECLASSIFIED CONSOLIDATED STATEMENT OF CASH FLOWS AS OF 31 DECEMBER 2023

(€'000)	31 December 2023 31 December 2022		Change
EBITDA	142,499	113,104	29,395
Taxes paid	(36,021)	(17,910)	(18,111)
Changes in inventories	(16,779)	21,551	(38,330)
Change in net contract assets and liabilities	(21,351)	(4,952)	(16,399)
Change in trade receivables and advances to suppliers	(3,365)	(13,685)	10,320
Change in trade payables	46,104	28,384	17,720
Change in provisions and other assets and liabilities	8,028	14,091	(6,063)
Operating cash flow	119,115	140,583	(21,468)
Change in non-current assets (investments)	(31,616)	(40,088)	8,472
Business acquisitions and other changes	1,107	(13,470)	14,577
Free cash flow	88,606	87,025	1,581
Interest and financial charges	(1,458)	(594)	(864)
Other cash flows and changes in equity	(23,932)	(21,345)	(2,587)
Change in net financial position	63,216	65,086	(1,870)
Net financial position at the beginning of the period	110,087	45,001	65,086
Net financial position at the end of the period	173,303	110,087	63,216

Fine Comunicato n.2211-46-2024	Numero di Pagine: 18