The Italian Sea Group

Investor Presentation • Mar 24, 2022

The Italian Sea Group at a glance

THE ITALIAN SEA GROUP

Notes: 1) Ranking based on 2021 sales (source: Boat
| International, Global Order Book 2021)

$\rightarrow$ ADMIRAL A PERINI NAVI NCA REFIT Tecnomar

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 speedy motoryachts from 37 to 50 mt
• · Tecnomar for Lamborghini 63 motor yachts in collaboration with Automobili Lamborghini (c. 20 mt)
• Perini Navi sailing yachts over 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 from 60 mt to 150 mt.

The Company internalises the most value-adding activities of the supply chain in order to improve cost efficiency and have a higher control on quality.

THE ITALIAN SEA GROUP

E-MARKET
SDIR

CERTIFIED

2021 Highlights

Market Outlook

9.3%

Increase by 9.3% of the global number of Ultra High Net Worth Individuals (UHNWI) in 2021, led by the US, where the number of UHNWIs has increased by 13%¹

Increase by 10.5% in the demand for yachts over 45 mt, which represent the Company's focus segment²

10.5%

18.6%

The sailing yacht market has recorded its record numbers since 2018, with an increase of 18.6% with respect to the previous year²

THE ITALIAN SEA GROUP

Sources: 1) The Wealth Report 2022, Knight Frank; 2) Global Order Book 2021, Boat International

$\rightarrow$ ADMIRAL

A PERINI NAVI

NCA REFIT

FINANCIALS

Key Figures 2021 Exceeding the Guidance

Drivers

• Net Sales of Eu 186 mn (+60.3% vs FY2020) driven by: (i) an increase in new contracts, especially for the higher dimensional range; (ii) the advancement of orders in progress; (iii) the positive increase in sales related to Tecnomar for Lamborghini 63
• EBITDA of Eu 28 mn (+100% vs FY2020) driven by: (i) an increase in sale prices, partially reducing the price gap with Northern European competitors; (ii) cost efficiency due to in-house investments in facilities and expansion of production capacity; (iii) low impact of raw materials price increase, offset by an increase in the sale price of vessels

Order Book Evolution

Notes: 1) Order Book is equal to the sum of all contract values related to orders in progress;

Order Book Evolution

THE ITALIAN SEA GROUP

Notes: 1) Order Book is equal to the sum of all contract values related to orders in progress;

$\overline{\left(\overline{C}\right)}$ ADMIRAL A PERINI NAVI NCA REFIT TECNOMAR

$10$

The Company exclusively produces once the customer places the order, with advance payments of the work progress not refundable to defaulting customers. In addition, the Company does not accept trade-ins, further minimising warehouse risk.

ORDER TYPE	ADVANCE PAYMENTS (% OF PURCHASE PRICE)
Over 50 mt LOA	Payment of 11/12 milestones, each worth c.10% of purchase price
	Sale contract Keel laying signature	90% hull completion	Hull and superstructure assembled and completed at 90%	Engine on board	90% fairing	Partitioning of crew area	Partitioning of guest area (Owner)	50% interior completion	Launch	Delivery
Up to 50 mt LOA	Downpayment 15%	Mid Payment 35%			Mid Payment 35%				Deilvery 15%
Tecnomar for Lamborghini 63	Downpayment 25%	Mid Payment 25%			Mid Payment 25%				Delivery 25%

No performance guarantees $\bullet$

Only up to 40% of the advance payments are covered by bank and insurance guarantees granted by The Italian Sea Group $\bullet$

• ••
• • ••

Net Result and Dividend Proposal

• Net Result 2021 has increased by 163% vs FY2020, going from Eu $6.2$ mn to Eu $16.3$ mn
• . The dividend proposal that the Company will submit to the Shareholders' Meeting on April 29th will be of a dividend for Eu 0.185 per share, amounting to a total Eu 9.8 mn

2022 Guidance

• Net Sales 2022 rising by c. 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 offsetting the rise in raw material costs

Net Sales 2022 Guidance

E-MARKET CERTIFIED

E-MARKET

STRATEGY

Our Strategy in Action

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

Expansion of production capacity in the Headquarters through investment plans "TISG 4.0" and "TISG 4.1"

Start up of Perini Navi production sites in Viareggio and La Spezia, with Eu 1.8 mn of investments in the 2022-2023 time period.

Relaunch of heritage brands Perini Navi and Picchiotti through dedicated advertising campaigns and exclusive events.

Enhancement of the Company's positioning in the luxury industry, also through the development of new partnership agreements with leading luxury brands.

Externalisation of less strategic phases of the supply chain in specialised European shipyards.

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2

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$5¹$

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

"TISG $4.1$ "

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

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

• ••

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
• Set up of a historical Museum dedicated to the Perini Navi brand heritage

"ESG" (Environmental, Social & Governance) - 360° Approach Sustainability

The Italian Sea Group's sustainabl approach is broad and transversal, embracing all areas of the Company.

"I grandi sogni non devono mai finire"

Founder & CEO - The Italian Sea Group

APPENDIX

"ESG" (Environmental, Social & Governance) - 360° Approach Sustainability

The Italian Sea Group's sustainable approach is broad and transversal, embracing all areas of the Company.

PRODUCTON SITES

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• Energy efficiency project of the facilities, through the installation of photovoltaic systems on all sheds on a surface of 22,000 sqmt, for 5,375 panels and a total production capacity of 2.571 MWh/year, equivalent to 25% of the total energy consumption of the construction site
• Conversion of the company fleet with electric hybrid drive cars and installation of 22kw electric columns
• Reduction of plastic consumption and use of recycled paper in offices
• Advanced recycling and waste management systems with a dedicated ecological oasis, with individual disposal islands catalogued by material and tight internal controls in the storage phase carried out by the Company's quality department
• Organization of a Committee dedicated to the management and integration of sustainable issues within the company's projects, with incentives for Management linked to sustainable KPIs

PRODUCTS

SUSTAINABILITY

SUSTAINABILITY

• Use of sustainable materials for ship construction, from steel and aluminium hulls (100% recyclable) to synthetic teak
• The Company is working strongly on sustainable innovation for the reduction of the emissions of own products: majority of the vessels under construction are equipped with dieselelectric propulsion systems, and TISG's R&D department, in collaboration with specialised entities, is carrying out studies related to alternative propulsions (e.g. hydrogen)
• Partnership opportunities with major companies in the field of electric propulsion
• The consolidation in the sailing yacht segment represents an ulterior opportunity of sustainable increase for the Company in terms of reduction of emissions, through the implementation of battery packages that allow the ship to operate for approximately 8 hours in «total green»

"ESG" (Environmental, Social & Governance) - 360° Approach Sustainability

The Italian Sea Group's sustainable approach is broad and transversal, embracing all areas of the Company.

3 SUSTAINABILITY TRAINING • Investment in continuing training of employees for the development of internal know-how through the TISG Academy, a project in collaboration with the best Italian Universities for the Faculties of Naval Engineering and Yacht Design • Periodic motivational coaching courses, to stimulate the well-being of employees in working and private life, ensuring a training to 360 PLACE OF WORK AND SAFETY SUSTAINABILITY 4 ★ State-of-the-art facilities for the maximum comfort of employees during working hours, with spaces dedicated to the wellbeing of the workforce such as the Village, a location inside the shipyard that provides services such as Gourmet Restaurant, Gym and SPA, which transform the shipyard into a real « nautical boutique » Investments in sanitization and air purification systems, bringing the impact of COVID-19 infections on employees close zero Employee insurance: the Company has opened, for each employee of order and grade, a life insurance and accident insurance of serious importance, both at work and in everyday life. In the event of death, an employee receives 5 times their RAL and in the case of a serious accident, 6 times their RAL 5 $\mathbb{Z}$ DEVELOPMENT AND GROWTH SUSTAINABILITY Strong female representation within the Company (c. 20% of internal resources), both within the Top and Middle Management and in Corporate Governance (2/3 of the Independent Directors of the Board of Directors and 1/3 of the members of the Board of Statutory Auditors are women), with a strong emphasis on equal pay Large investment in the training of a young workforce (25 - 40 years) with great growth opportunities for young people $\bullet$

Ó

"ESG" (Environmental, Social & Governance) - 360° Approach Sustainability

The Italian Sea Group's sustainable approach is broad and transversal, embracing all areas of the Company.

SUPPORT TO SUPPLIERS

П.

• Agreement with Unicredit Factoring for the support and financing of small local companies that are part of the production chain. The agreement provides a ceiling of Eu 5 mn, thus giving them the possibility to finance their working capital thanks to a simple and immediate access to liquidity
• the CEO of the Company is President of the Nautical Commission of Confindustria Tuscany this allows to TISG to be present in the decisions of development of the territory and to facilitate all the parties involved in the section of the local nautical
• Organization of periodic meetings of technical discussion and updating between suppliers and Top Management, held at the TISG Academy

ACTIVITIES FOR THE LOCAL COMMUNITY

• Job creation for small local businesses, such as suppliers and subcontractors
• Training, through the TISG Academy, of the graduates of the Universities of La Spezia and Genoa
• Strong presence on the territory through the sponsorship of infrastructure and services to support the community
• In May 2020, The Italian Sea Group donated Eu 25,000 to the municipality of Carrara as a contribution to the emergency COVID-19 $\bullet$

THE ITALIAN SEA GROUP

SUSTAINABILITY

SUSTAINABILITY

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.

The Italian Sea Group