The Italian Sea Group

Investor Presentation • Mar 26, 2024

FY 2023 FINANCIAL RESULTS

MARCH 2024

FLOATING MASTERPIECES

Executive summary

SUCCESS STORY SINCE 2009

Unrivalled success story founded on the revamping of heritage Italian brands, focus on design and product quality, investments on production capacity, and commitment to financial growth and solidity.

The Group's ambition is to exceed Eu 500mn in Revenues.

TOP MANAGEMENT

FILIPPO MENCHELLI CHAIRMAN

MARCO CARNIANI

VP & CFO ANDREA BIGAGLI STRATEGY director

MARCO FIGARA COO GIULIO PENNACCHIO NCA REFIT GENERAL DIRECTOR

MASSIMILIANO PIETRINI TISG TURKEY CO-DIRECTOR

SALVATORE GRECO DANIELE PASCUTTI ENGINEERING DIRECTOR

VITTORIO BLENGINI

QUALITY DIRECTOR

SALES DIRECTOR MARIANNA FERRANTE MARKETING DIRECTOR

ALBERTO FERRI HR DIRECTOR

PAOLO MISITANO

TRACK RECORD & OVERPERFORMANCE SINCE IPO VS CONSENSUS

TOP RANKING PERFORMANCE AMONG LISTED PEERS

2023 STOCK PERFORMANCE vs index and peers

Impressive share price performance on the Milan Stock Exchange since January 2023, well above the reference FTSE MIB Index and other leading sector players.

Source: Factset. Last updated on 25/03/2024 (data is rebased)

2023 STOCK PERFORMANCE VS LUXURY INDUSTRY PEERS

TISG shares performance was in line with leading luxury brands in 2023.

INDUSTRY-WIDE RECOGNITION WITH PRESTIGIOUS AWARDS IN 2023

M/Y KENSHō

Motor-yacht of the year 2023

KEY PLAYER IN LUXURY YACHTING

Third shipyard globally and first in Italy in terms of total project length for yachts >50mt. This segment has demonstrated the highest level of growth and resilience over the last 20 years,

EXECUTIVE SUMMARY

FY 2023 RESULTS

Revenues amounting EU 364 mn, +24% vs FY2022

EBITDA amounting to Eu 62 mn, +32% vs FY2022, with a Margin of 17%

Order Book amounting to Eu 1,265 mn

Net Income amounting to Eu 37 mn, +54% vs FY2022

Net Financial Position amounting to Eu 2 mn from a Net Financial Debt of Eu 11.3 mn at FY2022

CMD AND STRATEGIC OUTLOOK 2024 - 2025 TISG hosted its second Capital Markets Day on February 7TH, 2024 at the Armani/Silos in Milan, providing the market with an in-depth view of the next steps of the company and the pipeline of projects

AGM 29 APRIL 2024

Proposal of an Ordinary dividend of Eu 0.37 per share, for a total of Eu 19.6 mn

SUMMARY OF key FY2023 RESULTS

(Eu mn)

Net INCOME 2023 VS 2022 NET CASH 2023 VS 2022

(Eu mn)

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COMMERCIAL APPROACH & CONTRACT STRUCTURE

TISG's commercial approach and contract structure aim at eliminating risks with respect to inventory, achieving favourable working capital dynamics, and locking in contractual margins.

ORDER TYPE	ADVANCE PAYMENTS contract structure (% OF PURCHASE PRICE)
Over 30 mt LOA	CONTRACT SIGNING 10%	FROM 8 TO 10 INSTALMENTS REPRESENTING 80% IN TOTAL	DELIVERY 10%
TECNOMAR FOR LAMBORGHINI 63	Contract signing 10%	mid-payment 30%	Mid-payment 30%	delivery 30%

Quality & Visibility of order book

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.

Deliveries scheduled WITH LONG VISIBILITY

2024 deliveries on track with client expectations, benefitting from completion of capex plan and internalisation of key supply chain activities. No remarks policy coupled with track record of zero penalties at delivery.

				2024		2025
					1x1
					1x
		50–70mt 2x			2x
		70–90mt	3x		2x
		>90mt
			1x		1x
Notes: 1) Build «on spec»

SUMMARY PROFIT & LOSS

				SUMMARY PROFIT & LOSS
Summary P&L (in Eu thousand)	2020	2021	2022	2023
Revenues % Growth	116,441	185,556 59.4%	294,684 58.8%	364,458 23.7%
Costs from Outsourced Work	-44,703	-71,278	-117,942	-147,906
Raw Material	-26,423	-46,684	-68,133	-79,342
Personnel Costs	-16,881	-22,117	-29,562	-38,649
Other Costs	-13,914	-17,523	-31,964	-36,582
EBITDA	14,520	27,954	47,083	61,979
% Growth		92.5%	68.4%	31.6%
% of Revenues		15.1%	16.0%	17.0%
Amortisation, depreciation, write downs and capital losses	-5,090	-6,233	-9,985	-11,518
EBIT	9,430	21,721	37,098	50,461
% of Revenues	8.1%	11.7%	12.6%	13.8%
Net Interest Expenses	-1,963	-3.087	-3,817	-5,527
Income from extraordinary charges	343	481	-3,867	308
Taxation	-1,575	1.831	-5,368	-8,331
Net Income	6,235	20.946	24,046	36,911
% of Revenues	5.4%	11.3%	8.2%	10.1%

KEY HIGHLIGHTS

• Growth in Revenues +24% vs FY 2022, driven by the
• expansion in Shipbuilding and Refit activities, Significant increase in profitability with +32% increase in EBITDA to Eu 61.9 mn and a Margin of 17%, mainly due to: i) Strict cost management and efficiency of production processes; ii) Benefits from completion of investments in production facilities, with synergies between
  -

  - Shipbuilding & Refit; iii) Internalisation of key supply chain activities, powered by the acquisition of Celi S.r.l. iv) Increase in brand awareness and sale prices; v) Economies of scale.

  -

NET WORKING CAPITAL

• The trend in Total Net Working Capital reflects a reduction to -9% of Revenues in 2023, mainly due to a decline in Other Current Assets and Liabilities, and an increase in Contract Work in Progress
• Contract Work in Progress and Trade Receivables increase due the expected delivery of 6 new yachts in 2024, and conversely Trade Payables expand reflecting the growth of the business
• 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 3mn, to facilitate the marketing of the Picchiotti line Other Current Assets and Liabilities declines largely due to
• lower advance payments for Tecnomar for Lamborghini 63 yachts, pursuant to a normalisation of orders following the peak in 2022
• It is important to note that Inventories and payments on account does not include trade-ins or used yachts, due to the Group's strict commercial strategy, which effectively eliminates inventory risk.

	NET WORKING CAPITAL
KEY HIGHLIGHTS	NET WORKING CAPITAL (in eu thousands)	2020	2021	2022	2023
	Inventories and payments on account	2,759	1,250	3,573	10,897
	Contract work in progress and advances from customers	13,704	24,992	32,667	50,508
	Trade receivables	14,616	10,236	21,469	24,007
	Trade payables	-34,240	-57,146	-78,770	-90,568
	Other current assets and liabilities	-3,526	-6,746	-31,061	-26,184
	Net Working Capital	-6,687	-27,414	-52,122	-31,341
	Inventories and payments on account	2%	1%	1%	3%
	Contract work in progress and advances customers from	12%	13%	11%	14%
	Trade receivables	13%	6%	7%	7%
	Trade payables	-29%	-31%	-27%	-25%
	Other current assets and liabilities	-3%	-4%	-11%	-7%
	NWC % Revenues	-6%	-15%	-18%	-9%

NET FINANCIAL POSITION

Net Cash Position (in Eu thousands)	2020	2021	2022	2023
A. Cash	17,943	85,615	80,725	29,897
B. Cash Equivalents	0	0	592	46,516
C. Other current financial assets	0	0	0	0
D. Liquidity (A)+(B)+(C)	17,943	85,615	81,317	76,413
E. Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt)	-259	-34	-34	-2
F. Current portion of non-current financial debt	-2,237	-7,574	-14,163	-11,661
F.1 Other current financial payables	-3,891	-2,009	-2,292	-1,111
G. Current Financial Debt (E+F)	-6,387		-9,617 -16,490 -12,774
H. Net Financial Debt (G+D)	11,556	75,998	64,827	63,639
I. Non-current bank debt (excluding the current portion of debt instruments)	-7,757	-23,863	-66,287	-54,591
J. Debt instruments	0	0	0	0
K. Trade and non-current payables	-8,967	-7,951	-9,912	-7,460
K.1 Payables to other lenders	-3,095	-3,161	0	0
L. Non-current financial debt (I+J+K)	-19,819	-34,975	-76,198	-62,051
M. Total Financial position (H+L)	-8,263	41,023	-11,371	1,587

KEY HIGHLIGHTS

• Net Financial Position of Eu 1.6 mn at 31 December 2023 includes: i) Dividends paid for Eu 14.4 mn ii) Capex of Eu 10.9 mn during the year
  -
  -
  • iii) Cash inflows for Eu 10.6 mn for the disposal of
• an office building in Viareggio Long term financial facilities amount to Eu 66 mn
• and have a final maturity date on 31/12/2028. Net Financial Position includes the indebtedness for the right of use of the shipyards, in application of IFRS 16, to be reviewed for the extension of the Marina di Carrara concession from 2043 to 2072.

Strategy & strategic outlook

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120,000 SqM in total MARINA DI CARRARA STATE CONCESSION RENEWED UNTIL 2072

HEADQUARTERS "new era"

CONTEMPORARY ART GALLERY

OWNER PRIVATE LOUNGE BAR

VIRTUAL ROOM & NEW OFFICES

TISG MUSEUM

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LA SPEZIA FORMER PERINI NAVI FACILITES

LA SPEZIA

VIAREGGIO FORMER PERINI NAVI FACILITIES

| EMARKET

COMMERCIAL FLAGSHIP IN VIAREGGIO- EXTERIOR

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| EMARKET

COMMERCIAL FLAGSHIP IN VIAREGGIO - INTERIOR

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WOODWORKING HUB IN VIAREGGIO

CELI 1920 WOODWORKS

CELI NEW FACILITIES

CELI NEW facilities

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TISG TURKEY

HERÇELIK - YALOVA

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HICRI ERCILI- YALOVA

ADMIRAL M/Y 78MT -

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EXTERIOR DESIGN BY G SINOT

The Italian Sea Group

+ ADMIRAL | GIORGIO ARMANI | | M/Y 72MT ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

EXTERIOR DESIGN BY GIORGIO ARMANI

The Italian Sea Group

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- ADMIRAL M/Y 66MT

The Italian Sea Group

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ADMIRAL -: M/Y 55MT

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TERIOR DES

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M/X 4:6MT

The Italian-Sea Group

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SOON-TO-BE UNVEILED: NEW SAILING CATAMARAN 499GT

COMMITMENT SUSTAINABILITY

2023 ESG STRATEGY DELIVERED

ENVIRONMENTAL

Focus on fighting climate change through an effective environmental management system and making concrete moves towards decarbonisation Sustainable management of the supply chain

SOCIAL

and conscious commitment to increase employee well-being and development

GOVERNANCE

Build on solid governance and promote internally and externally business ethics and sustainable values

Best-in-class COMPLIANCE AND CERTIFICATIONS

POLICIES

Quality Occupational Health & Safety

Environmental Risk assessment and control

Operator (WIP)

PRODUCT SUSTAINABILITY

Pioneer in hybrid propulsion

• M/Y Quinta Essentia 55mt (2016) was the biggest
• hybrid yacht in the world at her delivery Today, offering the best alternative propulsion options upon clients' requests

key sustainable product features

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• Voluntary "green class" notation DPF and catalytic filters Solar panels installed on the deck-house Battery pack allowing for 6h full-load at anchor and 4h sailing at zero emissions • Manoeuvres in port and protected areas in full electric mode

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.