The Italian Sea Group

Investor Presentation • Sep 10, 2024

The Italian Sea Group

1H 2024 RESULTS PRESENTATION 10 SEPTEMBER 2024

BRANDS

The Italian Sea Group

EXECUTIVE SUMMARY

BUSINESS REVIEW

FINANCIAL REVIEW

| EMARKET

EXECUTIVE SUMMARY

SC SHARES RECEIVED FURONEXT STAR QUALIFICATION

EFFECTIVE 6 AUGUST 2024

BORSA

The Italian Sea Group

ITALI BORSA ITALIANA

1 giorno di
Caustazion quotazione 8 GIUGNO 2021

• Revenues amounting to Eu 189.4 Mn, +14.2% vs 1H 2023
• EBITDA amounting to Eu 32.4 Mn, +19.0% vs 1H 2023, with a Margin
  -
  -
  -

on Revenues of 17.1% Order Book amounting to Eu 1.32 bn at June 30, 2024 Investments for the period amounting to Eu 5 Mn Net Financial Debt equal to Eu 33.6 Mn

EBITDA Margin between 17.0 – 17.5%

• 2024 Guidance Confirmed: Revenues between Eu 400 – 420 Mn and
• 2025 Strategic Outlook: Revenues between Eu 430 – 450 Mn and EBITDA

Margin between 18.0 – 18.5%

• Confirmed the appointment of Ms. Simona Del Re as member and
  -
• Authorised the purchase and disposal of treasury shares
• Approved the review of the remuneration of the members of the
• Approved the report on remuneration policy and compensation paid

Approved the "Long term incentive plan 2027-2029" Chairwoman of the Board of Directors Board of Directors

• Approved the proposal of share capital increase through the issue of maximum 1,590,000 new ordinary shares to service the stock option plan

• Approved the amendment of the bylaws in order to introduce:

• The increased voting rights (article 6)

• The institution of the designated representative (article 10)

Adhesion to UN Global Compact

Appointment of a Sustainability Committee

Publication of Non Financial Reports compliant with GRI

Reverse factoring agreements to support suppliers' liquidity

Majority of female presence in the Board of Directors (57%)

Solid Governance

Suppliers' Code of Conduct

POSITIONED AT THE TOP OF THE LUXURY PYRAMID

Luxury pyramid

Life's better at the top

Source: GAM as of March 2024.

The views are the manager and are sulject b chancial instuments are provided for illustrative purposes only and stall not be considered as a direct offening, investment recommendation or investments of heir respective owners and are used for illustrative pupposes and should not be construel or sponsorship of GM.

The Italian Sea Group

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A N C Investments

From 1 January 2023 to 9 September 2024: TISG shares outperformed leading luxury brands 2/1/23 2/3/23 2/5/23 2/7/23 2/9/23 2/11/23 2/1/24 2/3/24 2/5/24 2/7/24 2/9/24

Source: Factset. Updated on 09/09/2024

STOCK PERFORMANCE VS INDEX AND PEERS

From 1 January 2023 to 9 September 2024: impressive share price performance, well above the reference FTSE ITALIA STAR Index and other leading industry players

Source: Factset. Updated on 09/09/2024.

The Italian Sea Group

TISG +39.4%

FTSE MIB +39.0%

FTSE MIDCAP+21.5%

PEER #1 +2.7% FTSE ITALIA STAR -2.4% PEER #2 -7.1%

THE BIGGEST SUPERYACHT BUILDERS WORLDWIDE

Admiral - 78m. Unique in the elegance and sinuosity of

its design

Admiral - 67m. Classic yet original and strongly designoriented line

Admiral - 55m with interiors by Giorgio Armani

Two iconic models of the Tecnomar for Lamborghini

63 project

MONACOYACHTSHOW S

MONACO YACHT SHOW

CONDICIO SO

NIT

THE ITALIAN SEA GROUP --

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MONACO YACHT SHOW

THE ITALIAN SEA GROUP

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BUSINESS REVIEW

SUMMARY OF KEY 1H 2024 RESULTS

The Italian Sea Group

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CONSISTENT GROWTH IN QUARTERLY REVENUES AND EBITDA 2022-2024

The Italian Sea Group

84%

iii) introduction of the semi-custom lines.

REFIT REVENUES

The Italian Sea Group

SDIR certified

BREAKDOWN BY LOA & GEOGRAPHY

The increase in marginality over time is attributable to:

• (i) strong attention to operating cost management;
• (ii) perfect management of the Shipbuilding/Refit production mix;
• (iii) internalisation of key supply chain activities, also following the recent launch of the Interior Steelworks business unit.

During the second quarter of 2024, the Company carried out Investments

related to:

(i) the extension of commercial offices in the Marina di Carrara

- Headquarters;

(ii) launch of the Interior Steelworks Business Units.

1H 2022 1H 2023 1H 2024 (Eu mn) (Eu mn)

– –

QUALITY AND VISIBILITY OF THE ORDER BOOK

BACKLOG EVOLUTION (GROSS & NET)

yachts not yet delivered to the clients, net of the revenues already recorded in the income statement

The Italian Sea Group

| BACKLOG BREAKDOWN BY BRAND & GEOGRAPHY

Americas 37%

SEASONALITY OF ORDERS

The Italian Sea Group

–

Eu 400 – 420mn in 2024

Eu 430 – 450mn in 2025

17.0 – 17.5% in 2024 18.0 – 18.5% in 2025

Distribution of 40-60% of Net Profit as yearly dividend

*Subject to temporary impacts from M&A and Capex strategy

Neutral level of leverage subject to a cap of 1.5x LTM EBITDA

FINANCIAL SUMMARY

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SUMMARY PROFIT & LOSS

SUMMARY P&L (IN EU THOUSAND)	30/06/2023	30/06/2024
REVENUES	165,903	189,449
% GROWTH	24.2%	14.2%
COSTS FROM OUTSOURCED WORK	-67,851	-68,532
RAW MATERIAL	-32,134	-45,336
PERSONNEL COSTS	-18,691	-21,358
OTHER COSTS	-19,969	-21,776
EBITIDA	27,258	32,446
% GROWTH	37%	19%
% OF REVENUES	16.4%	17.1%
AMORTISATION, DEPRECIATION, WRITE-DOWNS AND CAPITAL LOSSES	-5,537	-5,611
EBIT	21,721	26,835
% OF REVENUES	13.09%	14.16%
NET INTEREST EXPENSES	-2,179	-3,127
INCOME FROM EXTRAORDINARY CHARGES	-404	17,089
TAXATION	-5,544	-11,783
NET INCOME	13,593	29,013
% OF REVENUES	8.2%	15.3%

The Italian Sea Group

EMARKET SDIR
CERTIFIED

KEY HIGHLIGHTS

• The trend of the Net Working Capital is aligned with the development of the current projects and the planning of the related invoices and proceeds;
• The growth in Inventories and Payments on Account grew mainly due to the on spec construction of a Picchiotti 24mt yacht, for an amount of Eu 4.4mn, to facilitate the marketing of the Picchiotti line;
• Inventories and Payments on Account does not include 1 trade-ins or used yachts, due to the Group's strict commercial strategy, which effectively eliminates inventory risk.

NET WORKING CAPI

INVENTORIES AND PAY

CONTRACT WORK IN P CUSTOMERS

TRADE RECEIVABLES

TRADE PAYABLES

OTHER CURRENT ASSE

NET WORKING CAPITA

INVENTORIES AND PAY

CONTRACT WORK IN P CUSTOMERS

TRADE RECEIVABLES

TRADE PAYABLES

OTHER CURRENT ASSE

NWC % Revenues

TAL (IN EÙ THOUSANDS		31/12/2023 30/06/2024
'MENTS ON ACCOUNT	10,897	12,362
ROGRESS AND ADVANCES FROM	50,508	86,195
	24,007	35,585
	-90,568	-93,402
TS AND LIABILITIES	-26,867	-22,987
AL	-32,024	17,753
MENTS ON ACCOUNT	3.0%	3.2%
PROGRESS AND ADVANCES FROM	13.9%	22.2%
	6.6%	9.2%
	-24.9%	-24.1%
TS AND LIABILITIES	-7.2%	-5.9%
	-8.6%	4.6%

NET CASH POSITION (IN EU THOUSANDS)		31/12/2023 30/06/2024
A. CASH	29.897	14,140
B. CASH EQUIVALENTS	46.516	26,164
C. OTHER CURRENT FINANCIAL ASSETS	O
D. LIQUIDITY (A)+(B)+(C)	76.413	40,303
E. CURRENT FINANCIAL DEBT (INCLUDING DEBT INSTRUMENTS, BUT EXCLUDING THE CURRENT PORTION OF NON-CURRENT FINANCIAL DEBT)	-2
F. CURRENT PORTION OF NON-CURRENT FINANCIAL DEBT	-11.661	-11,593
F. 1 OTHER CURRENT FINANCIAL PAYABLES	-1.111	-1,448
G. CURRENT FINANCIAL DEBT (E+F)	-12-774	-13,043
H. NET FINANCIAL DEBT (G+D)	63.638	27,260
I. NON-CURRENT BANK DEBT (EXCLUDING THE CURRENT PORTION OF DEBT INSTRUMENTS)	-54.591	-48,790
J. DEBT INSTRUMENTS	O
K. TRADE AND NON-CURRENT PAYABLES	-7.460	-12,166
K. 1 PAYABLES TO OTHER LENDERS	O
L. NON-CURRENT FINANCIAL DEBT (1+)+K)	-62.051	-60,956
M. TOTAL FINANCIAL POSITION (H+L)	1.587	-33,695

▪ Net Financial Position of Eu -33.6 Mn at 30 June 2024 includes:

• i) Dividends paid for Eu 19.6 Mn
• ii) Capex of Eu 5 Mn during the year
• iii) Cash inflows for Eu 21 Mn for the disposal of the Viareggio shipyard;

▪ The discounted value of the fees due to the Port Authorities for the state-owned concessions of the Marina di Carrara and La Spezia shipyards and the Viareggio woodworking hub as of 30 June 2024 was equal to € 8.3 million, an amount that will be paid based on the duration of the relevant concessions.

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.