The Italian Sea Group

Investor Presentation • Mar 21, 2024

FY 2023 FINANCIAL RESULTS

MARCH 21ST, 2024

EXECUTIVE SUMMARY FY 2023 Business review AGENDA FY 2023 Financial review CMD HIGHLIGHTS

| EMARKET

FLOATING MASTERPIECES

PICCHIRTTI

Techomar

NCA REFIT

The Italian Sea Group

EXECUTIVE SUMMARY

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

AGM – 29 APRIL 2024 Approval of FY 2023 Annual Report and Dividend

AGENDA

Approval of Remuneration Policy and Corporate Governance Reports Presentation of the 2023 Non-Financial Report

ORDINARY DIVIDEND

Ordinary dividend of Eu 0.37 per share, for a total of Eu 19.6 mn, proposed by the Board of Directors to the AGM In line with Strategic Outlook, representing 53% of Net Income

CMD HIGHLIGHTS

SUCCESS STORY SINCE 2009

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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.

2023 STOCK PERFORMANCE vs index and peers

Source: Factset. Last updated on 20/03/2024 (data is rebased)

Source: Factset. Last updated on 20/03/2024 (data is rebased)

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

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LA SPEZIA FORMER PERINI NAVI FACILITES

VIAREGGIO FORMER PERINI NAVI FACILITIES

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COMMERCIAL FLAGSHIP IN VIAREGGIO- EXTERIOR

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COMMERCIAL FLAGSHIP IN VIAREGGIO - INTERIOR

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WOODWORKING HUB IN VIAREGGIO

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CELI 1920 WOODWORKS

WOODWORKING MASTERS SINCE 1920 ACQUIRED IN APRIL 2023

IMPROVED CONTROL ON QUALITY AND TIMING, ENHANCING MARGINS

EU 5.6MN INVESTED IN CAPACITY EXPANSION WITH APPROX. EU14MN OF REVENUES PROJECTED FOR 2024

PROJECTED EXPANSION INTO THE LUXURY FURNITURE SECTOR FOR REAL ESTATE AND HOSPITALITY

CELI NEW facilities

CELI NEW facilities

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TISG TURKEY

HERÇELIK - YALOVA

EMARKET
SDIR

HICRI ERCILI- YALOVA

FY 2023 business REVIEW

SUMMARY OF key FY2023 RESULTS

(Eu mn)

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Eu 350 – 365mn 16 – 16.5% 40 – 60% of Net Income Neutral Level of leverage Eu 364mn (+24% vs FY22) 17% (EBITDA Eu 62mn, +32% vs FY22) Eu 14.4mn (60% of FY22 Net Income) Net Cash for Eu 2mn (from a Net Debt of Eu 11.3mn at FY22) STRATEGIC OUTLOOK 2023 PRELIMINARY RESULTS 2023 REVENUES EBITDA MARGIN DIVIDEND POLICY FINANCIAL LEVERAGE ALL 2023 FINANCIAL TARGETS ACHIEVED

TOP RANKING PERFORMANCE AMONG LISTED PEERS

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»

Shipbuilding revenues

KEY HIGHLIGHTS

• Shipbuilding Revenues amount to Eu 318 mn at 31 December 2023, +25% vs FY 2022;
• This result is due to the regular progress of yachts in build and the signing of thew contracts in the big dimensional range;
• The breakdown by geography highlights the expansion in the Americas, which grew by +136% vs the previous year

2023P Shipbuilding Revenues

BY GEOGRAPHY

BY LOA AND GEOGRAPHY

REFIT revenues

KEY HIGHLIGHTS

• Refit Revenues amount to Eu 42 mn at 31 December 2023, +17% vs FY2022;
• This increase is due to the utilisation of the additional production capacity, thanks to the investments completed at the beginning of the year, in particular regarding facilities in the La Spezia shipyard and the expansion on the Chiesa Dock in Marina di Carrara.

FY 2023 FINANCIAL REVIEW

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%

SUMMARY PROFIT & LOSS

					SUMMARY PROFIT & LOSS
Summary P&L (in Eu thousand)	2020	2021	2022	2023
Revenues	116,441	185,556	294,684	364,458
% Growth		59.4%	58.8%	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.

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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
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  -
  • 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.

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.