The Italian Sea Group

Earnings Release • Sep 13, 2022

E-MARKET
SDIR

CERTIFIE

The Italian Sea Group at a glance

The Italian Sea Group

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

PERINI NAVI TECHO -- ADMIRAL PICCHIOTTI NCA REFIT

SHIPBUILDING

Design, production, and sale of super-yachts and mega-yachts up to over 100 mt LOA.

• · Admiral focus on yachts over 50 mt
• · Tecnomar speed motor-yachts from 37 to 50 mt
• · Tecnomar for Lamborghini 63 motor yacht in partnership with Automobili Lamborghini (c. 20 mt)
• · Perini Navi sailing yacgts over 55 mt
• · Picchiotti "gentleman yachts" in aluminium, from 24 to 55 mt

REFIT

Started in 2015, NCA Refit is the business unit dedicated to the refit and ordinary and extraordinary maintenance of sailing and motor yachts, with particular focus on yachts over 60 mt.

NET REVENUES BREAKDOWN 1H 2022

Net Revenues 1H 2022 Ευ 133,6 mn

▪ Shipbuilding

FINANCIALS

1H 2022 – Highlights

Total Revenues to 133.6 million Euros, growing by +65.1% vs H1 2021

Significant increase in EBITDA to 19.9 million Euros, growing by +94.2% vs H1 2021, with an EBITDA Margin equal to 14.9%

Order Book (Shipbuilding and Refit) to 922 million Euros and Net Backlog (Shipbuilding and Refit) to 537 million Euros

Net Result equal to 7.6 million Euros, growing by +65% vs 1H 2021

Investments equal to 7 million Euros for the progress of investments on the shipyards' production capacity and energy efficiency

1H 2022 in numbers (1/2)

Comments

• · 65.1% increase in Total Revenues vs 1H 2021, due to the positive progress of Shipbuilding projects and the increase in Refit activities due to the expansion in production capacity.
• · Growth in EBITDA Margin reflects:
  • · An optimal mix between Shipbuilding and Refit activities, granting strong marginality;
  • · Strict cost management and budget control;
  • · Increase in the sale prices of products, due to renown quality standards and high-end market positioning.

1H 2022 in numbers (2/2)

Order Book 1H 2022 Eu 922 mn X the First of the 922 · Increase in Order Book at 30 giugno 2022, with 36 yachts in 629 · - Eu 75 million for the Perini Navi acquisition; 1H 2021 1H 2022 · - Eu 7 million of investments in 1H 2022; PFN' 1H 2022 CAPEX 1H 2022 · - Eu 6.5 million Net Working Capital. Eu -46.2 mn Eu 7 mn Investiments for Eu 7 million related to the progress of investment plans "TISG 4.0″ and "TISG 4.1″, works on the 10.5 two Viareggio and La Spezia shipyards, as well as modernisation and energy efficiency of structures. FY 2021 1H 2022 1H 2021 1H 2022

Note: 1) According to IAS/IFRS accounting principles, Net Financial Debt
includes 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 6.9 million Euros at June 30th 2022, amount which will be paid throughout the duration of the related concessions

costruzione

· Net Financial Debt reflecting:

Comments

The Italian Sea Group

() PERINI NAVI - ADMIRAL NCA REFIT 7

Revenue Evolution

EBITDA Evolution

(Eu mn)

The Italian Sea Group

E-Market
SDIR

Order Book Evolution

1H 2022 Order Book - Breakdown by brand

The Italian Sea Group

Admiral 75.20%

1H 2022 – Shipbuilding

• Growth in Shipbuilding revenues driven by:
  • · Sound progress of orders for motor-yachts in the higher dimensional range (over 60 mt);
  • · Progress of projects under construction;
  • · Increase in sale prices due to recognised quality and highend market positioning.

Revenue Breakdown by geography - Shipbuilding

1H 2022 – Refit

• Growth in Refit revenues driven by:
  • Increase in production capacity from investment plans;
  • · Beginning of activities in the Viareggio and La Spezia shipyards.

1H 2022 CAPEX

During the first half of the year, the Company allocated the value of the Perini Navi acquisition, for a botal of 80 million Euros, as follows:

90

	(Eu mn)
ASSET	VALUE
Perini Navi Brand	30.351
Picchiotti Brand	0.825
Viareggio Concession	12.439
La Spezia Concession	26.436
Liabilities related to concessions	-1.358
La Spezia Offices	4.150
Specific plants	2.728
Fixed assets	1.660
Perini Navi USA	0.294
Patents and softwares	0.132
Net Working Capital	2.268
land in Pisa	0.075
TOTAL AMOUNT PAID	80

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 (Eu 1.8 mn in the 2022-2023 period);
  • · Increase of sale prices, improving marginality and oftsetting 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 two serial production projects (Gentleman Picchiotti and Admiral Panorama), always in a perspective of production on sold yachts and no risk of inventory.

Restyling of the Perini Navi fleet to present within the end of the year, with three sailing yacht deliveries already scheduled between 2023 and 2024.

Launch of the "Gentleman Picchiotti" fleet, a line of yachts in aluminium with a classic style, in a dimensional range from 24 to 55 mt.

+

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

Expansion of the Group's commercial presence in strategic locations (Porto Cervo, East Hampton) and strengthening of brand awareness also through partnerships with international brokers.

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 tradeins.

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 compelted 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 15th, 2022.

The Italian Sea Group

E-MARKET
SDIR

E-MARKET
SDIR CERTIFIED

"I grandi sogni non devono mai finire"

Giovanni Costantino

Founder & CEO - The Italian Sea Group

Disclaimer

This counter has been prepred by The Mailing See during meetings with investings with investors and inancial and is sole/ of information purposes. This presentation regarding he seurties of the Conpany Inis presentation doss not contain an ofer lo sell a a colutition of any offer o buy any securities issued by TISG.

This presentation may contain for alled Nanagement's current views with respect of financial ond operational performance of he Compon and estimates. These forwardlooking statements are based on TISG's current expectations about future events.

Because hese forwards on estigation iss and uncertaintes, coto a formance may differ mainbly fon three experience in or implial by these stateners due to ony wires of different from of writch ac beyond the doiling of TSG to control or estimal of the national of the natred developments, fluctuations in the price, and one contre reliance on the forward contained hean, which are note only as of the dre of his presentation. TSG des not unerole any policiy release any updates or revisions to revisions to relect events or circumstrances offer he date of this presentation.

Figures or doselve and in percentages are calcul data. Sone of the differences found in his presentation and use to coming of the vales expessed 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 Monage of reparing the Corporals cocounting deciments, Marco Caritari, declares pursual to one holder 154 by , prograph 2 of legishire Decree no. 58 of 1998, as amended, that the disclosures included in this document results, books and accounting records.