The Board of Directors of The Italian Sea Group S.p.A. (“TISG” or the “Company”), global operator in the luxury yachting industry, announces the approval of the FY 2021 Consolidated Financial Statements as of December 31, 2021, prepared in accordance with IFRS International Accounting Standard.

“The year 2021 has been particularly important for The Italian Sea Group, with the further strenghtening of our business in the mega yacht segment and in strategic markets like the US” – Giovanni Costantino, Founder & CEO of The Italian Sea Group commented.

“Soon afterwards the Perini Navi acquisition, finalised at the end of January, the production sites of Viareggio and La Spezia are already operational, the majority of employees have been reinstated and we have lunched important projects with great commitment and energy, with the goal of further strenghtening such a prestigious brand in the global yachting world.

The results announced today confirm the success of our business strategy, that focuses on the continuous research of excellence, innovation and quality. Based on these results, that allow us to look at the many future opportunities with great optimism and commitment, we confirm the 2022 Guidance.”

 Key results

 In 2021 The Italian Sea Group recorded remarkable growth compared to 2020. In details, the Company significantly improved sales and margins, leveraging on a more intense demand for yachts in the higher dimensional range.

 The year 2021 was an outstanding one for The Italian Sea Group, both from a production standpoint as well as in terms of partnerships signed with top luxury brands such as Automobili Lamborghini and Giorgio Armani, which contributed to enhace the high positioning of the Company. Since June 8, 2021 the Company is listed on Euronext Milan from Borsa Italiana.

The resources collected during the IPO – equal to 44.5 million Euros – proved to be key in finalising the acquisition of Perini Navi, one of the most prestigious brands in the sailing superyacht industry. The acquisition took place on December 22, 2021 through New Sail S.r.l. a subsidiary fully owned by TISG, for a total value of 80 million Euros. The operation was financed by cash availability and long-term bank credit lines.

 Net sales

During 2021 The Italian Sea Group achieved Net Sales for 186 million Euros, an increase of 60.3% versus 116 million Euros recorded in 2020.

 • During the year the Shipbuilding Division recorded sales for 164 million Euros, singificantly increased from 98 million Euros in 2020. This achievement is mainly due to the increase in contracts for high dimension yachts, the production progress of sailing and motor yachts under construction and the positive trend of Tecnomar for Lamborghini 63 sales. At the end of 2021, the Company has 14 superyachts e megayachts under construction, as well as 13 Tecnomar for Lamborghini 63 yachts, for a total of 27 projects.

• The Refit Division recorded sales for 22 million Euros, up from 14 million Euros in 2020. The Refit performance did not slow down and progressed smoothly, notwithstanding the works planned in “TISG 4.0” and “TISG 4.1” investment plans.  

The total value of the Order Book of Shipbuilding e Refit as of December 31, 2021 is equal to 827 million Euros, with wide visibility until 2026 of the projects under construction, about 80% of which is presented by yachts in the +50m range.

At the end of 2021, the Net Backlog of Shipbuilding and Refit is equal to 536 million Euros. The revenue breakdown by geographical area shows a higher relevance of the American market. In particular, this increase is driven by the stronger brand awareness in the Region, stimulated by the collaboration with renowed US brokers, that allowed to Company to enter the American market for big dimension yachts as confirmed by the sale of an Admiral 82m mega yacht at the end of 2021.

Ebitda is equal to 28 million Euros, increasing by 93% with respect to 14.5 million Euros at December 31st, 2020, with an Ebitda Margin of 15% versus 12.5% in Financial Year 2020. The constant increase in marginality can be attributed to (i) an increase in sale prices determined by a consolidated brand positioning in the higher part of the market, the high quality standard of the yachts and the excellent Made In Italy design, partially reducing the price gap with Northern European competitors; (ii) cost efficiency driven by the expansion of production capacity; (iii) limited impact of the increase in raw material prices, thanks to efficient synergies with suppliers.

 Ebit has reached 21.7 million Euros, more than doubled with respect to the previous year, when it was equal to 9.4 million Euros, with a margin on sales of 11.7% versus 8.1% in 2020, due to depreciation, write-downs, provisions and losses amounting to Euro 6.2 million in the year 2021. Net Result is equal to 16.3 million Euros, a significant increase with respect to 6.2 million Euros in 2020. Net Financial Position, positive for 41 million Euros with respect to a net financial debt up to 8.3 million Euros in 2020, reflecting a strong cash generation related to the progress of existing contracts and the capital increase achieved during the listing process.

Guidance 2022

In light of 2021 Financial Year results, the Company confirms the 2022 Guidance, forecasting an increase in Net Sales up to 280 and 295 million Euros, a growth of around 55% and an EBITDA Margin of 15.5%. This Guidance reflects the contribution of the Perini Navi acquisition in terms of increase in Sales; the additional increase in marginality expresses the expectation to achieve healthy returns, due to the speedy start-up of the new production sites with limited Investments.  

In 2022 there are Investments expected for 9 million Euros dedicated to the completion of the “TISG 4.0” investment plan, and 10 million Euros for “TISG 4.1”. Additionally, 1.8 million Euros will be invested in the 2022-2023 period for the finetuning of the two production sites in Viareggio and La Spezia, acquired in the auction and already in operation. On the basis of the strong conviction to be able to exploit the entire production capacity of the two shipyards, on February 17th 2022 the Board of Directors of “The Italian Sea Group” has approved the merger plan for the subsidiary New Sail S.r.l.. Having clearly defined the integration projects of the acquisition and the set-up of the production sites, the Company’s Management is therefore fully focused on their execution.

 Comment on the current geopolitical crisis

For what concerns the current geopolitical crisis and the conflict between Russia and Ukraine, TISG confirms the low exposure of its Net Backlog towards the Russian market, relating to one contract for a single yacht to be delivered in the first months of 2023. The Management confirms that the advancement of all orders currently in backlog and the refit activities are being carried out without delays, and there have not been any order cancellations or delays in contractual payments.

 Business outlook

Increase in dimensions of the vessels TISG will continue to concentrate its efforts in the construction of mega and giga yachts, leveraging on the consolidated brand reputation and on the renown skills, recognised by the clients and the major brokers in the international yachting industry. Consolidation in the sailing yacht segment An additional element which is significant to the Company’s strategy is the consolidation in the sailing yacht segment, which is experiencing a strong increase in demand also thanks to the increasing interest from Owners towards sustainability and the environment.

As a confirmation of this, the Company has undertaken the completion of a 60-metre sailing yacht for a US client (order originally acquired from the previous Perini Navi property). Starting Up Perini Navi TISG has already integrated the majority of the employees coming from the Perini Navi acquisition and intends to fine-tune the production sites of La Spezia and Viareggio.

New partnerships with luxury brands Collaborations with brands of the caliber of Giorgio Armani and Automobili Lamborghini have contributed to further strenghten the Company positioning in the luxury segment and, as a conformation of what was announced during IPO, TISG intends to finalise another important partnership. ESG Strategy The Company continues to implement its ESG Strategy: the TISG 4.1 investment plan is far-reaching and includes the ecologic transformation of its facilities through 9 the installing of photovoltaic plants on all Sheds inside the Marina di Carrara, Viareggio and La Spezia shipyards.

These implants are another piece of TISG’s ESG strategic plan, which already includes a strong commitment in the realisation of “green” yachts through the continuous development in hybrid propulsion systems and the use of paint and raw materials with a low environmental impact, including synthetic teak, valorising sustainability in all supply chain phases.

Proposed allocation of profits

The Board of Director has deliberated to submit to the Shareholder’s Meeting the payment of a dividend, relating to Financial Year 2021, equal to 0.185 Euros per share. The total dividends, equal to 9.8 million Euros, represents a pay-out of around 60% of the Group’s Net Result (+58% versus the dividends distributed in 2020). If approved by the Shareholders’ Meeting, the ex-dividend date will be on May 9, 2022 with record date on May 10, 2022 and the dividend will be paid on May 11, 2022.

 Share buy-back program

The Board of Directors has deliberated to submit the request of authorisation from its Shareholders, pursuant to the combined provisions of Articles 2357 and 2357-ter of the Civil Code, as well as Article 132 of D. Lgs. No. 58 of 24 February 1998, as amended ("TUF"), to carry out purchase and disposal transaction of own shares of the Company. The authorisation will be requested for the purchase, even in several transactions, of ordinary share up to a maximum amount of 3.710.000 shares, corresponding to 7% of TISG’s share capital at December 31, 2021, for a time period of 18 months starting from the date of authorisation from the Ordinary Shareholders’ Meeting. The authorisation for the disposal of own shares is requested without time limit.

 Renewal of the supervisory board

 The Board has provided for the renewal of the Supervisory Board, nominating Ms Annalisa De Vivo, Mr Carlo De Luca and Mr Felice Simbolo as members of the aforementioned board, with a 3-year mandate.