The Board of Directors (the “Board”) of Ferretti SpA today reviewed and approved the Group’s Full Year 2022 consolidated financial results.

• Order Intake reached Euro 1,162 million, +19.6% compared to 2021
• Net revenue of Euro 1,030.1 million, +14.6% compared to 2021.
• Adjusted EBITDA of Euro 140 million, +36.5% compared to 2021, with a marginality of 14.1%, up approx. 200 basis points.
• Net Profit of Euro 60.5 million.
• Net cash position of Euro 365 million.

Mr. Alberto Galassi, the Group’s Chief Executive Officer, stated:
“These exciting results describe Ferretti Group’s glorious present and tell the story of its future. The luxury yachting market continues to expand, and we have good reason to believe that our results in the coming years will be increasingly positive. Ferretti Group has a portfolio of brands that are unique in the world for their breadth, prestige and beauty, and an industrial vision focused on investments in innovation and sustainability: two closely related factors that will increasingly make the difference,” said Ferretti Group CEO Alberto Galassi. “There are no magic formulas, but with these numbers and the success factors I have just mentioned, I can assure our shareholders and our customers that theirs is and will continue to be a winning choice”.

Order intake: Euro 1,162 million in 2022, up 19.6% compared to 2021 (Euro 971.5 million), thanks to strong global market demand. Order backlog of Euro 1,296 million at December 31, 2022, up 27.6% compared to December 31, 2021 (Euro 1,015.8 million), thanks to the winning of a significant number of orders in the period.

Order backlog by segment:
• Composite yachts reached Euro 386.6 million at December 31, 2022, equal to 29.8% of the total order book (from Euro 366.0 million, equal to 36% of the total order book at December 31, 2021).
• Made-to-measure yachts reached Euro 469.6 million at December 31, 2022, equal to 36.2% of the total order book (from Euro 299.0 million, equal to 29.4% of the total order book at December 31, 2021).
• The Super yachts segment: Euro 384.6 million at December 31, 2022, equal to 29.7% of the total order book (from Euro 293.1 million, equal to 28.8% of the total order book at December 31, 2021).
• Other businesses remained stable at Euro 54.8 million, equal to 4.2% of the total order book at December 31, 2022, while at December 31, 2021 they were equal to Euro 57.8 million. Net revenue of Euro 1,030.1 million in 2022, up 14.6% compared to 2021 (Euro 898.4 million), thanks to the significant number of orders won in 2022.

Revenue by segment:
• Composite yachts report revenue of Euro 439.3 million, accounting for approx. 42.6% of total revenues in 2022 (from Euro 464.3 million, accounting for approx. 51.7% of total revenues in 2021).
• Made-to-measure yachts report revenue of Euro 405.8 million, accounting for approx. 39.4% of total revenues in 2022 (from Euro 249.7 million, equal to approx. 27.8% of total revenues in 2021).
• The Super yachts segment reached Euro 95.4 million, accounting for approx. 9.3% of total revenues in 2022 (from Euro 84.6 million, equal to approx. 9.4% of total revenues in 2021).
• Other businesses, including ancillaries , totalled Euro 89.5 million, accounting for approx. 8.7% of total revenues in 2022 (from Euro 99.8 million, equal to approx. 11.1% of total revenues in 2021).

Including ancillary activities, FSD, Wally sail and pre-owned
• The AMAS region reached Euro 372.5 million, accounting for approx. 36.2% of total revenues in 2022 (from Euro 288.7 million, equal to approx. 32.1% of total revenues in 2021).
• The EMEA region reached Euro 376.7 million, accounting for approx. 36.6% of total revenues in 2022 (from Euro 376.0 million, equal to approx. 41.8% of total revenues in 2021).
• The APAC area reached Euro 95.9 million, accounting for approx. 9.3% of total revenues in 2022 (from Euro 49.3 million, equal to approx. 5.5% of total revenues in 2021).
• Other regions and the Super yachts segment3 reached Euro 185.0 million, accounting for approx. 18% of total revenues in 2022 (from Euro 184.4 million, equal to approx. 20.5% of total revenues in 2021). Adjusted EBITDA of Euro 140.0 million in 2022, up 36.5% compared to 2021 (Euro 102.6 million), with a margin of 14.1% in 2022, up approx. 200 basis points compared to 2021 (12.0%).

This strong performance is due to three main factors:
• Commercial: the continuous launch of new models and a longer waiting list due to the extensive order book, which means greater pricing power.
• Strategic positioning: a favourable product mix, more exposed to the most profitable segment, such as Made to measure
• Industrial: economy of scale in procurement and more efficient absorption of fixed costs. Net Profit of Euro 60.5 million in 2022, increasing compared to 2021 (Euro 37.4 million), with a margin of 6.1% in 2022, increasing 170 basis points compared to 2021 (4.4%). Capex of Euro 97 million, increasing Euro 23 million compared to 2021.

Net financial position improved from Euro 93 million of net cash at December 31, 2021 to Euro 365 million of net cash at December 31, 2022, including about Euro 233 million of IPO proceeds.

Outlook
The global boating market, with a size of approximately EUR 24 billion in 2022, is a sector that is growing significantly and is expected to reach a value of more than EUR 29 billion by 2025.

Including ancillary activities, FSD, Wally sail and pre-owned Therefore, given the constantly changing context mentioned above, between 2022 and 2025 the number of potential end customers (i.e. VHNWI and UHNWI) will greatly increase with, in particular, a compound annual growth rate of 7.7% and 7.8% respectively; moreover, the penetration of luxury boating among potential final customers is still less than 1%, a figure that reveals a huge potential for growth. In the future, leveraging its unique business model, the strong heritage of iconic brands, the unparalleled attention to product excellence and innovation, the tailored approach and its sales model, the Group will focus on:
• the adaptation and improvement of the offer and the mix of products based on the evolution of market trends and customer expectations, with the aim of consolidating the market leadership in both large Composite and Made-to measure segments, focusing on those with the greatest potential for growth and margins.
• the expansion of the Made-to-measure portfolio in larger alloy yachts, thanks to our iconic brands such as Riva, Wally, Pershing and Custom Line, with the aim of satisfying as many potential customers as possible, maintaining the distinctive exclusivity and satisfying the need of greater customization. So doing, we will be able to meet the market demand for yachts with greater dimensions leveraging on the know-how and the acquired experience with CRN and the recent successes of Pershing 140 and Riva 50 Meters.
• the vertical integration of strategic and high value-added activities, to ensure excellence in the luxury design, performance, quality and reliability of our yachts and to support our future growth and the expansion of the product portfolio.
• the improvement of the overall offer, with the aim of strengthening the resilience and profitability of the business, by, also, the consolidation of some vertical activities like the yacht brokerage service, the refitting service, the brand extension activities and the Ferretti Security Division operations.

Proposal for Dividends
On March 8, 2023, the board of directors of the Company proposed dividend of €19,903 thousand (equal to €5.88 cents per share), which is subject to the approval of the Company’s shareholders at the forthcoming annual general meeting.