The Italian Sea Group

Investor Presentation • May 23, 2023

UNICREDIT ITALIAN INVESTMENT CONFERENCE 2023 23 MAY 2023

The Italian Sea Group

PIE ÇENIŞTTI

The Italian Sea Group S.p.A. is a global operator in luxury yachting, the first builder in the world for yachts over 50 metres1. TISG was listed in the Milan Stock Exchange in June 2021.

The Italian Sea Group

STOCK PERFORMANCE FROM IPO (8 JUNE 2021)

Note: 1) Ranking base on 2022 yacht sales (source: Boat International, Global Order Book 2022).

295

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

EMARKET SDIR

CERTIFIED

Complete and differentiated product offering, with focus on custom-made yachts over 50mt, positioned on the highest segment of the market also in virtue of its distinctive and renowned partnerships.

The Italian Sea Group

The Italian Sea Group boasts an impressive tinancial track record in terms of growth, prohitability and cash flow generation.

The Company has a "Make-to-Order" commercial strategy and does not allow trade-ins, minimising risk of inventory and risks deriving from sale of used boats.

Perini Navi is the iconic sailing yacht brand, known tor its luxurious and innovative characteristics. The Perini Navi acquisition has allowed for an increase of production capacity and the iconic brands to TISC's product offering.

GROWTH POTENTIAL FROM BRANDS

Perini Navi and Picchiotti are internationally renowned brands which are expected to boost The Italian Sea Group's growth prospects in the medium term by entering into adjacent and attractive market segments.

PRODUCTION CAPACITY & SYNERGIES

Perini's acquisition also contributed outstanding shipyards in La Spezia and Viareggio which provide much needed manufacturing and refit capacity and skills, in fact c. 50% of the Eu 80mn price reflects real estate assets.

lconic luxury sailing yacht brand, characterized by high performance, innovation and elegance. The acquisition has allowed TISG to consolidate its positioning in the sailing yacht market with a best-known brand.

Perini Navi currently represents c. 14% of TISG's Order Book 2022.

Founded in Limite sull'Arno in 1575, Picchiotti is a heritage brand for the yachting industry.

Through the brand, TISG produces semi-custom yachts with a classical and timeless style, true Gentleman's Yachts reminiscent of the iconic American fleet in the 60s.

The La Spezia shipyard is equipped with impressive infrastructures, and is ideal for refit activities, c. 50% of the Perini fleet has already undergone refit works with NCA Refit.

The shipyard will also host the production of the Tecnomar for Lamborghini 63.

Perini Navi production is located in the Viareggio shipyard.

The recruitment of former Perini employees will toster the creation of an internal culture in the construction and refit of sailing yacht projects.

The Italian Sea Group invested Eu 68mn in its shipyards since 2018, reaching a high-quality production capacity.

MARINA DI CARRARA

The Marina di Carrara shipyard is the home of the Admiral and Tecnomar brands, and covers a total surface of 120.000 sqm.

The shipyard can contemporarily manage up to 12 production projects: 6 between 75-80mt, 4 between 40-70mt, and 2 of approx. 90mt (or one yacht > 100mt).

Additionally, the shipyard can also manage 25 refit projects up to 140mt.

LA SPEZIA

TISG TURKEY

The shipyard can contemporarily manage 3 production projects up to 60mt, and approx. 12 annual deliveries of the Tecnomar for Lamborghini 63.

Additionally, the shipyard can also manage 14 refit projects up to 60mt.

TISG operates with a network of partners in Turkey, tocused on the production of the frame and structure of yachts, which are subsequently towed to Italy for outfitting.

The Hercelik and Naveks shipyards, cover a total surface of 21.000 and 13.000 sqm, respectively, and can contemporarily manage 6 production projects. TISG operates on 5 shipyards in the Yalova and Antalya areas, which in their totality cover 70.000 sqm.

VIAREGGIO

The Viareggio shipyard is the home of Perini Navi, and covers a total surface of 18.000 sqm.

The shipyard can contemporarily manage up to 3 projects for sailing yachts up to 60mt in length.

First Quarter Highlights

ADMIRAL / ARMANI 72 UNVEIL

February 1 1th, 2023

An event involving owners, brokers, authorities, celebrities, and press, where Mr. Giovanni Costantino, Founder & CEO of The Italian Sea Group, mapped out the course for the future of Italian yachting, explaining the crucial moments of TISG's success story, its excellences and the objectives for its brands.

A laser mapping show unveiled the mega yacht and lett the stage to Giorgio Armani's Spring/Summer 2023 collection, ending with a traditional greeting from the designer.

LAUNCH OF THE NEW PERINI NAVI FLEET: "GENESIS"

March 15th, 2023

In March 2023, TISG presented the new Perini Navi fleet, having the objective to create a line of vessels with the characteristic and iconic Perini Navi elements revised in a modern fashion, aiming for large spaces, brightness, and comfort during sailing. There three lines of vessels of 48, 56, and 77 metres.

The fleet, called «Genesis», attests Perini Navi's ultra-high-level positioning as global player for large sailing yachts.

WSA Motor Yacht of the Year - M/Y Admiral Kensho

M/Y Admiral Kensho (75mt) has been named "Motor-yacht of the year" and has won in the "Displacement Motor-Yachts 1'500GT and Above" category at the renown 2023 World Superyacht Awards by Boat International.

The project's technical challenges have been taced with tunctional and, at the same time, elegant solutions, which have redetined the boundaries of space, distribution, and luxury, projecting the Owner's personal vision towards a new concept of the sailing experience.

Coherent with The Italian Sea Group's values, always mindful of sustainability, Admiral Kensho is equipped with an innovative diesel-electric propulsion system, with permanent magnet electrical engines which grant high efficiency and power. The propulsion system has five variable speed generators, all with diesel particulate filters (DPF) to optimise consumption at all speeds and reduce emissions.

The design has been developed paying particular attention to the environment, in compliance with the voluntary "ECO" notation of the Class Entity.

M/Y KENSHO - AWARDS

WINNER

Displacement Motor Yachts 1'500GT an

WINNER

BOA

Motor-Yacht of the Year

STRATEGY HIGHLIGHTS

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

ORDER-BASED APPROACH & BESTIN-CLASS CONTROL SYSTEMS				No risk of
트	No speculative production	No penalties for delays or quality remarks		unsold
	Irade-ins are not accepted	No litigations with clients		inventory nor write-offs
FAVOURABLE ADVANCEPAYMENTS CONTRACT STRUCTURE
ORDER TYPE	ADVANCE PAYMENTS (% OF PURCHASE PRICE)
	Payment of 1 / 12 milestones, each worth c. 10% of purchase price
From 30 to over 50 mt LOA	Sale contract Instalment #2 Instalment #1 signature	Instalment #4 Instalment #5 Instalment #6	Instalment #7 Delivery	Favourable working capital
Tecnomar for Lamborghini 63	Downpayment Mid Payment 20% 30%	Mid Payment 30%	Delivery 20%	management
CAREFUL COST MANAGEMENT
Approx. 75-80% of direct costs (raw materials, engine, etc.) are contractualised at contract signature. · The remaining 20-25% are kept as Variations to Contract, and may lead to a revision of the pricing.				Lock-in of profitability from order to completion

Growing and Unpenetrated Customer Base

EMARKET SDIR

CERTIFIEI

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

MAIN DRIVERS

• Superyachts above 30mt grew +3% from 2010 to 2021, where 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).

Sources: Credit Suisse, Global Wealth Report 2022; SuperYacht Times, The State of Yachting THE ITALIAN SEA GROUP 2022.

The Italian Sea Group boasts an Order Book in excess of one billion Euros, with a surge in orders from North America, the Middle East and Asia.

ORDER BOOK COMPOSITION

• · Growth in demand from Americas and APAC region (from a total of 37% in FY 2020 to 64% in 1Q 2023).
• · Growth in the Order Book with visibility up to 2027 .

Strategy and Strategic Outlook

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 satistaction.

ESG Roadmap

TISG has a clear roadmap to drive Sustainability with the objectives of creating long-term value for all Stakeholders and establishing itself as a benchmark for the shipbuilding sector.

SUMMARY OF RESULTS

Executive Summary

1Q 2023 Results

• Revenues for Eu 85mn, +23% vs 1Q 2022
• EBITDA for Eu 13.8mn, +35% vs 1Q 2022, with an EBITDA Margin of 16.2%
• Order Book (Shipbuilding and Refit) for Eu 1 097mn, with 33 yachts under construction

Resolutions of the Annual General Meeting - 27 April 2023

• Renewal of the Board of Directors and Board of Statutory Auditors
• Approval of the Stock Option Plan and Buyback Plan
• Approval of the distribution of a dividend of Eu 0.272 per share

Strategic Outlook 2023 - 2024

• Revenues for Eu 350 365mn in 2023 / Eu 400 420mn in 2024
• EBITDA Margin between 16 16.5% in 2023 / 17 17.5% in 2024

Snapshot of Key Results

1Q 2023

13.8

1Q 2023

1Q 2023

-8.3

-11.3

1Q 2023

1Q 2023

1Q 2022

· +23% increase in Revenues due to the regular progress of the Shipbuilding and Refit activities, with an increase in order intake.

· Increase in marginality over time is mainly attributable to ever-improving cost management and budget control, internalisation of key supply chain activities, and an optimal mix between the Shipbuilding and Refit divisions.

Comments

• · Investments for the period are mainly related to the completion of the «TISG 4.0» and «TISG 4.1» investment plans, and the progress of the works in La Spezia («TISG 4.2»).
• · Eu -11.3mn recorded on 31 December 2022.

Shipbuilding & Refit - Revenues

SHIPBUILDING KEVENUE EVOLUTION / 1Q 2021 - 1Q 2023

SHIPBUILDING REVENUES BY LOA, BRAND, AND GEOGRAPHY

REFIT REVENUE EVOLUTION / 1Q 2021 - 1Q 2023

REFIT REVENUES BY LOA AND GEOGRAPHY

Disclaimer

This document has been presced by The Malling of the "Compan") for use duing meetings with investors and financial one is soley for infornation purposes. The presentation does not contine a recomment the Compony, Inis presentation doss not contain on offer to sell a ca solicition of any offer to buy any securities issued by TISG.

This presentation nor contain which relect Maragenen's current iews with respect of firencial and operational peformance of he Compon and estimates. These forwardlooking statements are based on TISG's current expectations about future events.

Because hese forwardly of subject on is and urcertainles, octual future results or performance may aller maindly from three staments 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 coutoned not oplace under related ing stotained herein, which are made only as of the de 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.