The Italian Sea Group

Earnings Release • Nov 10, 2022

THE ITALIAN SEA GROUP

O PERINI NAVI

The Italian Sea Group at a glance

THE ITALIAN SEA GROUP

Note: 1) Ranking based on 2021 Order Book (source: Boat
International, Global Order Book 2021)

$\rightarrow$ ADMIRAL A PERINI NAVI NCA REFIT Tecnomar

FINANCIALS

9M 2022 - Highlights

Total Revenues to 210.3 million Euros, growing by +64.6% vs 9M 2021

Significant EBITDA increase to 33 million Euros, growing by +89.7% vs 9M 2021, with an EBITDA Margin equal to $15.7%$

Order Book (Shipbuilding and Refit) to 983 million Euros and Net Backlog (Shipbuilding and Refit) to 566 million Euros

Investments to 11 million Euros in the first nine months of 2022, of which 4 million Euros invested in the third quarter of 2022

9M 2022 in numbers (1/2)

Comments

• +64.6% increase in Total Revenues vs 9M 2021, due to the progress of Shipbuilding projects and the increase in Refit activities due to the expansion in production capacity.
• Increase in EBITDA Margin:
• An optimal mix between Shipbuilding and Refit activities
• Strict management of fixed costs and control over the respect of budgets for projects in progress
• Increase in product sale prices, due to renown quality standards and high-end market positioning.

9M 2022 in numbers (2/2)

Comments

• Increase in Order Book as at 30 September 2022, with 35 yachts under construction, including 16 Tecnomar for Lamborghini 63
• Net Financial Debt reflecting:
• • Eu 75 million for the Perini Navi acquisition
• • Eu 11 million of investments in the first nine months of 2022
• . Eu 1 million Net Working Capital.
• Investments for Eu 11 million related to the completion of "TISG 4.0" and "TISG 4.1" investment plans and progress of works on the Viareggio and La Spezia shipyards, as well as the modernisation and energy efficiency of all facilities.

:: 1) According to IAS/IFRS accounting principles, Net Financial Debt
des the current value of fees due to the Port Authorities for the state concessions of the shipyards in Marina di Carrara, Viareggio and La
Spezia, equal to 6.8 million Euros at 30 September 2022, amount which
will be paid throughout the duration of the related concessions.

THE ITALIAN SEA GROUP

A PERINI NAVI PICCHIOTTI $\div$ ADMIRAL Tecnomar NCA REFIT Total Revenues Evolution

EBITDA Evolution

Order Book Evolution

THE ITALIAN SEA GROUP

E-MARKET

9M 2022 - Shipbuilding

• Growth in Shipbuilding Revenues driven by:
• Progress of motor yacht and sailing yacht projects under construction
• Increase in product sale prices due to recognised quality
  and high-end market positioning.

Revenue Breakdown by geography - Shipbuilding

9M 2022 - Refit

• Growth in Refit revenues driven by:
• Increase in production capacity through investment plans;
• Availability of production spaces in the La Spezia and
  Viareggio Shipyards.

9M 2022 CAPEX

FY 2022 Guidance

• Total Revenues 2022 expected to grow by 55% vs FY2021, driven by the progress of already existing contracts and from an expected increase in demand for yachts in the higher dimensional range
• EBITDA Margin is expected to reach 15.5% in 2022, driven by:
• Increase in production capacity due to the advancement of investment plans "TISG 4.0" and "TISG 4.1", as well as the speedy start-up of the Viareggio and La Spezia shipyards with a limited amount of investments;
• Increase of sale prices, improving marginality and offsetting the rise in raw material costs

STRATEGY

Strategy Evolution

Focus on larger dimensions for vessels, up to over 100 mt LOA, granting better backlog coverage and higher visibility.

Maximisation of production capacity through serial production projects Gentleman Picchiotti and Admiral Panorama, always in a perspective of production on sold yachts and no risk of inventory.

Engineering and restyling of the Perini Navi fleet with a dedicated technical team and collaboration with industry"archistars".

Strengthening of the Company's high-end positioning, also through the development of partnership agreements with leading luxury brands such as Automobili Lamborghini and Giorgio Armani.

ESG - Energy efficiency of production sites in Marina di Carrara, Viareggio, and La Spezia through the installation of photovoltaic plants on all sheds.

ESG - Focus on the growth of young employees, with the start-up of "The Italian Sea Group Young Award" and the reprise of training courses in the TISG Academy.

Serial Production Projects

The Italian Sea Group approaches serial yacht production, maintaining its high-end positioning through the usage of noble materials such as steel and aluminium.

Entrance in this segment has been favoured by:

• increase in production capacity through the investment plan and the acquisition of the two new production sites;
• Integration of new employees, allowing the company to increase its product offering without involving the engineering capacity dedicated to custom made large yachts.

In line with the Company's commercial strategy, production will be started only after the signing of a sale contract with clients

TISG produces only after the product is sold, and without trade-ins.

• "TISG 4.0" Investment plan approved in early 2020 for Eu 38 mn to expand production capacity by 40%, with Eu 9 mn to be invested in 2022
• . "TISG 4.1" Investment plan approved on November 4th, 2021 for Eu 14 mn inside the Marina di Carrara shipyard, with Eu 10 mn to be invested in 2022

"TISG 4.0"

• New shed with the capacity to accommodate up to two 80 mt yachts [completed]
• New dry dock with a maximum capacity of 5 yachts between 60 and 70 mt and vessels up to 140 mt [completed]

$\overline{\mathbf{1}}$

2

New shed on the old dry dock, with capacity up to two 90 mt yachts [completed]

"TISG $4.1$ "

• Expansion on the Chiesa Dock to expand spaces dedicated to refit activities and moorings of yachts [completed]
• New shed next to the old dock, with capacity of 4 yachts from $75 - 80$ mt

$\overline{6}$

$5¹$

New spaces dedicated to (i) warehouse, (ii) painting and (iii) upholstery

The project, in collaboration with EDP Energia Italia, consists in the installation of a photovoltaic plans on 4 sheds and is developed in two sections, with all works being completed within the end of 2022.

Number of panels	5,375
Surface covered	22,000 mq
Yearly production capacity	2,571 MWh 25% of the shipyard's energetic consumption
Yearly CO2 Reduction (in tons)	1,208

The first section of the project is already operational since June 15^th, 2022.

THE ITALIAN SEA GROUP

E-MARKET
SDIR

CERTIFIED

• ••

Perini Navi Acquisition - Viareggio Production Facilities

VIAREGGIO

Viareggio is where the Perini Navi headquarters are located and where nearly all of the Perini Navi sailing yachts are built.

• Production facilities dedicated to sailing yacht production and Gentleman Picchiotti
• Three deliveries of sailing yachts scheduled between 2023 and 2024.

The Italian Sea Group completed the acquisition of 100% of
TISG Turkey Yat Tersanecilik Anonim Sirketi ("TISG
Turkey") shares from GC Holding S.p.A. for a price of Eu 150,000.

This operation will allow the Company to:

• consolidate the entire production process, granting a
  more integrated and quality-oriented management of the operations;
• favour the investment strategy directly from TISG to TISG Turkey with a view to further business growth.

E-MARKET CERTIFIED

"I grandi sogni non devono mai finire"

Founder & CEO - The Italian Sea Group

Disclaimer

This document has been prepared by The Italian Sea Group S.p.A. ("TISG" or the "Company") for use during meetings with investors and financial analysts and is solely for information purposes. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by TISG.

This presentation may contain forward looking statements which reflect Management's current views with respect to future events and financial and operational performance of the Company and estimates. These forward-looking statements are based on TISG's current expectations and projections about future events.

Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of TISG to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price, and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. TISG does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company.

The Manager in Charge of preparing the Corporate accounting documents, Marco Carniani, declares pursuant to and to the effects of article 154-bis, paragraph 2 of Legislative Decree no. 58 of 1998, as amended, that the disclosures included in this document correspond to document results, books and accounting records.