The Italian Sea Group

Investor Presentation • Nov 7, 2023

9 M 2 0 2 3 F I N A N C I A L R E S U L T S A S O F S E P T E M B E R 3 0 T H , 2 0 2 3

AGENDA

EXECUTIVE SUMMARY

9M 2023 RESULTS

• Order Book of Eu 1.3bn, +33% vs 9M 2022
• Revenues of Eu 262.2mn, +25% vs 9M 2022
• EBITDA of Eu 43.2mn, +31% vs 9M 2022, with a margin of 16.5%
• Investments of Eu 8.8 mn
• Net Financial Debt of Eu 31mn vs Eu 11.3mn at FY 2022

RELEVANT EVENTS AND BUSINESS OUTLOOK

• Obtainment of ISO 14001:2015 certification for Environmental Management Systems
• Participation at the 2023 Monaco Yacht Show with the worldwide preview of three new yachts, new product lines, and strategic partnerships
• Deliveries of three large yachts scheduled within the end of the year

STRATEGIC OUTLOOK

• 2023 Guidance confirmed in the high end of the value range: Revenues for Eu ~365mn and EBITDA Margin of ~16.5%
• 2024 Strategic Outlook confirmed: Revenues between Eu 400 – 420mn and EBITDA Margin between 17 – 17.5%

2023 MONACO YACHT SHOW HIGHLIGHTS

M/Y Admiral Kenshō (75mt)

M/Y Admiral | Armani Silver Star (55mt)

S/Y Perini Navi Art Explorer (47mt)

M/Y Tecnomar This Is It (43mt)

M/Y Tecnomar for Lamborghini 63 (20mt)

NEW MODELS AND ICONIC PARTNERSHIPS

In occasion of the Monaco Yacht Show opening, TISG announced a new partnership with Massimiliano and Doriana Fuksas and Luca Dini for the design of Admiral Sea Flower, an 80-metre motor-yacht with unique characteristics.

During the press conference, the Company presented three new product lines:

• M/Y Admiral Project Adventure, a 50mt Explorer super-yacht;
• M/Y Tecnomar Project Cat 133, a motor catamaran inspired by the lines of the acclaimed M/Y Tecnomar This Is It;
• M/Y Tecnomar Project EVO 155, 46mt speedy motor-yacht, the newest evolution of the successful Tecnomar EVO 120 model.

2023 GUIDANCE CONFIRMED IN THE HIGH END OF THE VALUE RANGE

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SUMMARY OF KEY 9M 2023 RESULTS

KEY HIGHLIGHTS

• 25% increase in Revenues due to the positive development of the Shipbuilding division, as well as an increase in Refit activities due to the seasonality of the business
• The increase in marginality over time is due to a careful management of operating costs, a better efficiency of production processes, and the internalisation of the most value-added phases of the supply chain;
• Investments for the first nine months of 2023 are related to the closing of the «TISG 4.0» and «TISG 4.1» investments related to «TISG 4.2», the expansion of commercial offices in Marina di Carrara and the development on production capacity for subsidiary Celi.
• Net Financial Debt for Eu 31mn vs Eu 11.3mn on FY 2022.

QUALITY AND VISIBILITY OF BACKLOG

• Industry leading levels of backlog, with visibility until 2028 and balanced breakdown between geographic areas;
• Gross Backlog at 30 September 2023 represents 3.8x LTM Revenues;
• Resilient client base (UHNWI), cash-buyers who do not require any financing to purchase the products;
• Strict commercial policy with no trade-ins or sale of used boats, eliminating inventory risk.

	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	LTM Revenues
Gross Backlog x LTM Revenues	3.6	3.6	5.2	4.5	3.5	3.8
Net Backlog x LTM Revenues	2.3	2.5	3.7	2.9	2.1	1.9

Notes: 1) Net Backlog refers to the total value of contracts in progress related to yachts not yet delivered to the clients, net of the revenues already recorded in the income statement.

GROSS BACKLOG BREAKDOWN

SHIPBUILDING REVENUES

KEY HIGHLIGHTS

• Shipbuilding Revenues amount to Eu 226.7mn (+22% vs 9M 2022).
• This result is attributable to:
• i) The regular progress of existing orders;
• ii) The signing of new sale contracts.

BREAKDOWN BY LOA, BRAND, AND GEOGRAPHY

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REFIT REVENUES

KEY HIGHLIGHTS

BREAKDOWN BY LOA AND GEOGRAPHY

• Refit Revenues amount to Eu 32.9mn (+23.5% vs 9M 2022).
• This result is attributable to the use of the new spaces in Marina di Carrara and La Spezia, as well as the strategic scheduling of refit activities, which are more intense in the second part of the year.

NET DEBT 9M 2023 (Eu mn) IFRS Net Debt FY 2022 Dividends Sale of office building in VG Investments 9M 2023 9M 2023 Cash Outflows IFRS Net Debt 9M 2023

KEY HIGHLIGHTS

• Net Debt is equal to Eu 31mn in 9M 2023, vs Eu 11.3mn at FY 2022.
• Cash outflows for:
• (i) Dividends for Eu 14.4mn;
• (ii) Investments for the period for Eu 8.8mn;
• (iii) Net Working Capital dynamics, generating a cash outflow of c. Eu 7mn
• Cash inflows for:
• (i) Disposal of the office building in Viareggio, for Eu 10.6mn.

EBITDA & CAPEX

EBITDA

• Significant increase in marginality over time is attributable to:
• (i) Strong attention to operating cost management.
• (ii) Growing efficiency of production processes.
• (iii) Benefits coming from investments in production capacity, with advantageous synergies between Shipbuilding and Refit.
• (iv) Increase in product prices, due to strengthening brand awareness.
• (v) Economies of scale.

CapEx

• Throughout the first nine months of 2023, TISG made Investments for:
• (i) Completion of «TISG 4.0» and «TISG 4.1» investment plans;
• (ii) Improvements on the La Spezia Shipyard («TISG 4.2»);
• (iii) Expansion of commercial offices in Marina di Carrara;
• (iv) Investments related to the increase in the production capacity of Celi S.r.l.

STRATEGIC OUTLOOK

THE ITALIAN SEA GROUP AT A GLANCE

The Italian Sea Group S.p.A. is a global operator in luxury yachting, the first builder in Italy and fourth in the world for yachts over 50 metres¹ . TISG went public on the Milan Stock Exchange on 8th June 2021.

	Customised motor-yachts above 50mt.
	Speedy motor-yachts from 37mt to 50mt.
	Large sailing yachts from 47mt.
	Gentleman Yachts from 24mt to 55mt.
	Refit and maintenance of motor and sailing yachts, with a focus on yachts over 60mt.
	Historical woodworking and furniture company, with expertise in yachting and real estate.

PARTNERSHIPS

Limited edition speedy motor-yachts inspired by the Lamborghini Siàn FKP 37.

Motor-yachts designed in collaboration with designer Giorgio Armani.

Notes: 1) Ranking based on 2022 yacht sales (source: Boat International, Global Order Book 2022);

2) Last updated on 03/11/2023.

SUCCESS STORY SINCE 2009

TISG'S success story has been characterised by a strong focus on growth, leveraging on product quality, strategic investments on production capacity, and revamping of heritage Italian brands.

INTERNALISATION OF KEY SUPPLY CHAIN ACTIVITIES

TISG internalises specific phases of the production cycle which require impeccable craftmanship, in order to maintain control on the quality, the timing, and the costs of these activities in support of marginality and customer satisfaction.

COMMERCIAL APPROACH & CONTRACT STRUCTURE

TISG's commercial approach and contract structure aim at limiting risks with respect to inventory, achieve favourable working capital, and lock in expected margins.

GROWING AND UNPENETRATED CUSTOMER BASE

Strong opportunity due to an unpenetrated customer base, deriving from an exponential increase in the global number of UHNWIs in the past three years.

MAIN DRIVERS

• Superyachts above 30mt grew +3% from 2010 to 2021, whereas UHNWIs with net worth above \$50mn grew at 11% CAGR, leading to a decline in the penetration rate (c. 2%).
• UHNWIs are expected to increase at a CAGR of 8% from 2021 to 2026E (+118k).
• The growth is largely driven by North America (6% CAGR, +45k) and APAC (12% CAGR, +48k).

QUALITY & VISIBILITY OF THE ORDER BOOK

The Italian Sea Group boasts an Order Book in excess of one billion Euros, evenly distributed across different geographies.

ORDER BOOK COMPOSITION

• Growth in demand from Americas and APAC region (from a total of 37% in FY 2020 to over 60% in 9M 2023).
• Growth in the Order Book with deliveries scheduled up to 2028.

ESG ACHIEVEMENTS SO FAR

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.