The Italian Sea Group

Investor Presentation • Feb 7, 2024

THE ITALIAN SEA GROUP

CAPITAL MARKETS DAY

FEBRUARY 7TH, 2024

SPEAKERS

GIOVANNI COSTANTINO

FOUNDER & CEO

MARCO CARNIANI

VICE CHAIRMAN & CFO

ESG & CORPORATE AFFAIRS MANAGER

The Italian Sea Group

SIMONA DEL RE

BENEDETTA DE MAIO

INVESTOR RELATIONS SPECIALIST

156

GIOVANNI COSTANTINO FOUNDER & CEO

The Italian Sea Group

WELCOME TO THE ITALIAN FACTORY OF EMOTIONS

THE ITALIAN SEA GROUP

FACILITIES & PRODUCTION CAPACITY

2024 YACHT DELIVERIES

NEW SHIPBUILDING PROJECTS

COMMITMENT TO SUSTAINABILITY

FLOATING MASTERPIECES

PICCHIOTTI

• ADMIRAL

rechomar

NCA REFIT

The Italian Sea Group

Teleborsa: distribution and co

EXECUTIVE SUMMARY

z

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

SALVATORE GRECO COO - TISG TURKEY

MASSIMII.IANO PIETRINI TISG TURKEY CO-DIRECTOR

DANIELE PASCUTTI ENGINEERING DIRECTOR

VITTORIO BI.ENGINI SALES DIRECTOR

PAOLO MISITANO QUALITY DIRECTOR

MARIANNA FERRANTE MARKETING DIRECTOR

The Italian Sea Group

MARCO FIGARA COO

GIUI.IO PENNACCHIO NCA REFIT GENERAL DIRECTOR

MATTIA PIRO YACHT DESIGN DIRECTOR

ALBERTO FERRI IIR DIRECTOR

ALL 2023 FINANCIAL TARGETS ACHIEVED

The Italian Sea Group

PRELIMINARY RESULTS 2023

EU 363MN (+23.3% VS FY22)

16.8% (EBITDA EU 61MN, +26.9% 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)

TRACK RECORD & OVERPERFORMANCE SINCE IPO VS CONSENSUS

REVENUES

THE ITALIAN SEA GROUP

MARKET

EBITDA

TOP RANKING PERFORMANCE AMONG LISTED PEERS

Notes: (1) Revenue and EBITDA growth are LTM 31/12/2023 vs 31/12/2022 for TISG, and LTM 30/09/2023 vs 30/09/2022 for Peer 1 and Peer 2. Backlog data refers to Revenues and Backlog as of 31/12/2023 for TISG, and LTM Revenues and Backlog as of 31/12/2022 for Peer 1 and Peer 2; (2) Backlog over Revenues for TISG in 2022 was 2,1x; (3) For Peer 1, Backlog relating to yachts delivered during the year is conventionally cleared on 31 December.

THE ITALIAN SEA GROUP

commercial use strictly prohibit

BACKLOG OVER REVENUES

2023 STOCK PERFORMANCE VS INDEX AND PEERS

Impressive share price performance on the Milan Stock Exchange since January 2023, well above the reference FISE MB Index and other leading sector players. 190,00

THE ITALIAN SEA GROUP

Source: Factset. Last updated on 05/02/2024 (data is rebased)

TISG +73.6%

ERTIFIED

D

ITSE MIB +27.2% REER #1 +15.7%

PER #2 -5.5%

Source: Factset. Last updated on 05/02/2024 (data is rebased)

MARKET VALUATION VS LUXURY PEERS Despite boasting significantly higher Revenues and EBITDA growth, TISGs shares are trading at significantly lower multiples.

Source: Factset (last updated 05/02/2024); Luxury peers as indicated on prior page, average data.

The Italian Sea Group

LTM EBITDA GROWTH

45%

14%

TISG

LUXURY PEERS AVERAGE

EV/EBITDA 2024

14.8X

7.4X

TISG

LUXURY PEERS AVERAGE

INDUSTRY-WIDE RECOGNITION WITH PRESTIGIOUS AWARDS IN 2023

+ ADMIRAL M/Y KENSHO

The Italian Sea Group

1.388 mt

Source: Global Order Book 2024, Boat International.

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,

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

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.

			1x1
			1x
	–	2x	2x
	–	3x	2x
		1x	1x

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.

2023 CMD INVESTMENT HIGHLIGHTS FULLY CONFIRMED

STRONG FINANCIAL PERFORMANCE

CELI

KEY PLAYER IN-CUSTOMISED LUXURY Firm SUPER ACHTS AND MEGAYACHTS

GROWTH GROWING AND TED POTENTIAL FROM UNDERPENETRAT EPERINI NAVI CUSTOMER BASE ACQUISITION

PRODUCTION W TOCUS ON ESG CAPACITY AND BHHOUS STATE OF THE ARE IT ARGETS FACILITIES E

THE ITALIAN SEA GROUP

QUALITY &

ATSHBHELL OF

ORDER BOOK ==

RATEGILE STOREE SOCK

–

Eu 400 – 420mn in 2024 Eu 430 – 450mn in 2025

17 – 17.5% in 2024 18 – 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

FACILITIES & PRODUCTION CAPACITY

MARINA DI CARRARA STATE CONCESSION RENEWED TO 2072

The Italian Sea Group

HEADQUARTERS "NEW ERA"

+3,500 SQM EXPANSION

IN MARINA DI CARRARA

The Italian Sea Group

CONTEMPORARY ART GALLERY

OWNER PRIVATE LOUNGE BAR

VIRTUAL ROOM & NEW OFFICES

TISG MUSEUM

LA SPEZIA FORMER PERINI NAVI FACILITES

THE ITALIAN SEA GROUP

THE ITALIAN SEA GROUP

LA SPEZIA

VIAREGGIO FORMER PERINI NAVI FACILITIES

THE ITALIAN SEA GROUP

PERINI NAVI HUB

Tecnomar

THE ITALIAN SEA GROUP

+2,400 SQM

OF

NEW WOODWORKING

HUB IN VIAREGGIO

The Italian Sea Group

FLAGSHIP LOCATION IN VIAREGGIO

CELI 1920 WOODWORKS

AMMINIMI

IMPROVED CONTROL ON QUALITY AND TIMING, ENHANCING MARGINS

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

PROJECTED TO COVER UP TO 70%
OF GROUP WOODWORKING NEEDS

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

The Italian Sea Group

CELI NEW FACILITIES

CELI NEW FACILITIES

CELI 1920 TERNI FACILITIES EXPANSION

TOTAL CAPACITY

AFTER INVESTMENTS APPROX. 30,000 SQM

0

2

4

6

8

10

12

14

16

TISG FURKEY

Portunium minuture in

TISG TURKEY TEAM ENFORCING STRICT
SUPERVISION AND CONTROL ON SITE

CONSTRUCTION OF HULLS AND
SUPERSTRUCTURE

TOTAL OF 7 SHIPYARDS
COVERING APPROX. 30,000 SQM

EXCLUSIVE PARTNERSHIPS WITH

TURKISH MANUFACTURERS

PRODUCTION CAPACITY FOR A MAXIMUM OF 13 VESSELS UP TO 100MT

The Italian Sea Group

NAVEKS- YALOVA

1259

HERÇELIK - YALOVA

HICRI ERCILI- YALOVA

2024 YACHT DELIVERIES

EXTERIOR DESIGN BY LOBANOV Car Arg

ADMIRAL M/Y 78MT =

THE ITALIAN SEA GROUP

EXTERIOR DESIGN BY G SINOT

The Italian Sea Group

M/Y 72MT - 12

THE CHE E FE LE FEATURE

The Italian Sea Group

EXTERIOR DESIGN BY GIORGIO ARMANI

EXTERIOR DESIGN BY

STER I THE

ADMIRAL M/Y 66MT ==

Pr

E

The Italian Sea Group

CTT THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE THE TH

ADMIRAL -MALL M/Y 55MT -

THE THE

C

THE ITALIAN SEA GROUP SA

TERIOR DESIGN

-ST NEW

I

PERINI NAVI S/ GOMT

FIFT TALIAN SEA GROUP

NEW SHIPBUILDING PROJECTS

• ADMIRAL M/Y 50MT

× 11 × 11 × 11 × 11 × 11 × 11 × 11 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × 12 × × 12 × × 12 × × × × × × × × × ×

-

The Fracian Sea Group and Sea Group Comments

ADMIRAL M/Y 43MT

1

raj

The Italian Sea Group Trans

mande

• ADMIRAL M/Y 40MT

The Italian Sea Group

ELEGANCE OF THE LINES

The Italian Sea Group

'' 'H H TRI TER

Techomar - M/Y 40MT

АПРИШИНИЦИИ ИНТИНИНИИ

THE ITALIAN SEA GROUP

M/Y 60MT

PICCHIBTT SINCE 1575

• 0 0 0 0 0 2

8 8 9

家 安 要

The Italian Sea Group

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

THE ITALIAN SEA GROUP

COMMITMENT SUSTAINABILITY

Focus on fighting climate change through an effective environmental management system and making concrete moves towards decarbonisation

Sustainable management of the supply chain and conscious commitment to increase employee well-being and development

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

Adhesion to UN Global Compact

Appointment of a Sustainability Committee

Publication of first Non Financial Report compliant with GRI

Reverse factoring agreements to support suppliers' liquidity

Neutralisation of FY 2022 Scope 1 and Scope 2 emissions

Best Practice Policies and Certifications

Appointment of a new Board of Directors with strong female presence

100% residual energy deriving from renewable sources

Employee training and development

Solid Governance

ISO 14001 Certification for Environmental Management Systems

Supply chain ESG mapping

Suppliers' Code of Conduct

Gender equality

Employee satisfaction survey

Photovoltaic systems installed on production facilities

Quality Occupational Health & Safety

Environmental Risk assessment and control

Authorised Economic Operator (WIP)

'

• 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

• 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

Teleborsa: distribution

FINANCIAL SUMMARY

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 CON (% OF PURCHAS
OVER 30 MT LOA	CONTRACT SIGNING 10%	FROM 8 TO 10 INS REPRESENT 80% IN TO
ITECNOMAR FOR LAMBORGHINI 63	CONTRACT SIGNING 10%	MID-PAYMENT 30%

The Italian Sea Group

TRACT STRUCTURE SE PRICE)

TALMENTS ING TAL

DELIVERY 10%

AID-PAYMENT 30%

DELIVERY 30%

SUMMARY OF KEY PRELIMINARY 2023 RESULTS

THE ITALIAN SEA GROUP

EMARKET

DI

ertified

Revenues grew at a 46% CAGR from 2020 to 2023P with strong contribution from both the Shipbuilding division (46% CAGR) and the Refit division (49% CAGR).

• Shipbuilding Revenues grew +23% in 2023P, mainly driven by the Admiral brand, which accounted for 66% of Revenues in 2023. The Perini brand generated 21% of Revenues, driven by 5 projects in progress

• Refit Revenues in 2023P grew +17% vs 2022A, benefiting from higher refit capacity pursuant to the expansion and refurbishment of the group's shipyards

• Within the Strategic Outlook for 2024-25, both divisions are expected to grow at a similar pace.

• Shipbuilding Revenue growth is largely driven by the delivery schedule and the underlying backlog,
• Refit Revenues reflect the high competitiveness of TISG's services, coupled with the increase in refit spaces.

The EBITDA margin expanded from 15.9% in 2022 to 16.8% in 2023P and is expected to further expand as per Strategic Outlook to 2025.

• The group's EBITDA margin further improved from 15.9% in 2022A to 16.8% in 2023P, despite impact of inflation on the underlying cost base, demonstrating TISG's capability of locking in costs at the time of the order.
• The EBITDA Margin breakdown between Shipbuilding and Refit is not relevant due to the high level of shared costs between divisions.

Further margin expansion to up 18.0%-18.5% in 2025 as per the Strategic Outlook attributable to:

• Continuing attention to cost management, efficiency gains, benefits from capex, and economies of scale;
• Continuing benefits from internalisation of key value-added phases of the production cycle, for instance Celi with respect to woodworking activities.

2023P	2022A	2021A	2020A
-302	-248	-1581	- 1021
83%	84%	85%	87%
61	47	28	14
30%	68%	92%	50%
16,8%	15,9%	15,1%	12,5%

7	2020A	2021A	2022A	2023P
) WORK &	-71	-118	-186	- 230
	-17	-22	-30	-35
	- 14	- 17	-32	-37
	- 102	-168	-248	-302
D WORK &	61%	64%	63%	63%
	14%	12%	10%	10%
	12%	વેતી જેવી સ	11%	10%
	87%	85%	84%	83%

Net Working Capital in 2023 returned to approx. -7% of Revenues, in line with industry standards.

• The trend in Total Net Working Capital reflects a reduction to -7% of Revenues in 2023P, 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.

IN)	2020A	2021A	2022A	2023P
ENTS ON ACCOUNT	3		4	8
GRESS AND ADVANCES	14	25	33	47
	15	10	21	32
	-34	-57	-79	-97
AND LIABILITIES	-4	-7	-31	- 15
	-7	-27	-52	-25
ENTS ON ACCOUNT	2%	1%	1%	2%
GRESS AND ADVANCES	12%	13%	11%	13%
	13%	6%	7%	9%
	-29%	-31%	-27%	-27%
AND LIABILITIES	-3%	-4%	-11%	-4%
	-6%	-15%	-18%	-7%

Operating Cash Flows expected to significantly increase in 2024 and 2025 thanks to growth in EBITDA and the projected stabilisation of Net Working Capital and reduction of Capex.

IFRS16 Net Financial Position Breakdown

• Despite the normalisation of Working Capital in 2023, the group reached a Net Cash position of Eu 2mn at FY2023P, improving from Net Debt of Eu 11.3mn at FY2022A
• Long term financial facilities amount to Eu 66mn 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.
• Capex of Eu 10mn in 2023 includes Eu 5.6mn for Celi.

Strong increase in Operating Cash Flow thanks to:

• EBITDA growth as per Strategic Outlook to 2025;
• A decline in Capex;
• Net Working Capital as a percentage of Revenues close to 2023 levels.

TISG has significantly upgraded its appeal to investors and analysts since January 1 target (+20%) and daily trading volumes (+204%).

st (+66%), analyst price

Stock price performance since January 1 st

, 2023

• 4 brokers currently cover TISG: Intermonte, Berenberg, MidCap, Kepler Cheuvreux
• All have a "Buy" recommendation with an average Target Price of Eu 11.6 (upside of c. 20%), compared to Eu 9.5 at the time of the 2023 CMD.
• Average daily trading volume (3M) of 82k shares, compared to 27k shares at the time of the 2023 CMD.

BROKER	ANALYST	TARGET PRICE	RECOMMENDATION
BORGEN STERE	ANNA FRONTANI	€ 12.50	BUY
INTERMONTE	FRANCES CO BRILLE	€ 11.00	BUY
KEPTER CHEUVREUX	NICCOLÒ STORER	€ 11.00	BUY
TP ICAP MIDCAP	FILIPPO MIGHORISI	€ 12.00	BUY

–

Eu 400 – 420mn in 2024 Eu 430 – 450mn in 2025

17 – 17.5% in 2024 18 – 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

THE ITALIAN SEA GROUP

CAPITAL MARKETS DAY

FEBRUARY 7TH, 2024

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.