The board of directors has approved the periodic financial information

Ameglia (SP), 9 November 2020 – The Board of Directors of Sanlorenzo S.p.A. (“Sanlorenzo” or the “Company”) which met today under the chairmanship of Mr. Massimo Perotti, examined and approved the periodic financial information as at 30 September 2020.

Massimo Perotti, the Company's Executive Chairperson, noted:
«In a general economic context that is still highly uncertain, the company’s solidity and resilience are reflected in the third quarter results, which enable us to reconfirm the positive forecasts for the closing of the current year with regard to stability in revenues and profitability compared to the results achieved last year.
Furthermore, we are very satisfied with the constant and additional growth in the order portfolio, which reached €670 million, an achievement that is even more significant when considering the cancellation of boat shows that are traditionally scheduled in September and made possible by the decisive commercial initiatives undertaken by the company from the beginning of the summer and continuing through September and October with the “Sanlorenzo Elite Weekends”.
Moreover, well received by the market was the presentation of the new models during the Genoa Boat Show held in October, the only international event of 2020 in the European panorama».
 
ANALYSIS OF CONSOLIDATED NET REVENUES NEW YACHTS
Net Revenues New Yachts  for the nine months ended as at 30 September 2020 amounted to €322.6 million, representing a decrease of 3.3% compared to €333.5 million as at 30 September 2019, due to the restrictive measures imposed by governments to limit the spread of COVID-19. With the same scope of consolidation  and excluding the provision of services , the decline in Net Revenues New Yachts came to 0.2%.

ANALYSIS OF CONSOLIDATED OPERATING RESULTS AND NET PROFIT
Adjusted EBITDA  for the first nine months of 2020 was €48.5 million, essentially stable compared to the figure for the same period in 2019, posting an increase as a percentage of Net Revenues New Yachts to 15.0%, compared to 14.6% for the comparable period of 2019. The increase in operating margin is linked to the progressive increase in prices of new orders thanks to the improved commercial positioning of the Company and the efficiencies generated by the implementation of new production capacity.
EBITDA , including non-recurring components linked to the portion of non-monetary costs for the 2020 Stock Option Plan attributable to the period and expenses incurred for COVID-19, amounts to €47.4 million, with an incidence of 14.7% on Net Revenues New Yachts, in line with the same period of the prior year.
EBIT amounted to €33.1 million, down by 12.1% compared to €37.7 million in the first nine months of 2019, with an incidence of 10.3% on Net Revenues New Yachts, mainly due to the increase in depreciation/amortisation following the full implementation of the investments in new production capacity made in previous years. 
Group net profit for the first nine months of 2020 was €22.3 million, a decline of 8.2% compared to €24.3 million as at 30 September 2019. Expressed as a percentage of Net Revenues New Yachts, the figure passed from 7.3% as at 30 September 2019 to 6.9% as at 30 September 2020.

ANALYSIS OF CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT
Net working capital as at 30 September 2020 was positive for €27.6 million compared to €11.5 million as at 31 December 2019 and €31.3 million at 30 June 2020.
Net financial position as at 30 September 2020 amounted to €5.1 million, compared to €9.1 million as at 31 December 2019 and €23.5 million at 30 June 2020. The reduction in net financial position compared to the figure at 30 June 2020 amounted to €18.4 million. 
Cash and cash equivalents as at 30 September 2020 were €100.9 million, up €40.7 million compared to 31 December 2019 and €20.2 million compared to 30 June 2020.
The performance of net working capital and net financial position in the third quarter was affected by the trends relating to sector seasonality, entailing the concentration of yacht deliveries in the summer months and the subsequent increase in production activities on orders for the following seasons. 
In addition, as at 30 September 2020, the Group had bank credit facilities to cover its liquidity requirements equal to €121.8 million , of which €117.5 million available.
Investments during the first nine months of 2020 amounted to €17.3 million compared to €27.6 million for the same period in 2019 with the same scope of consolidation , of which €9.3 million were linked to product development and €4.6 million to the programme to increase production capacity.

BACKLOG
The backlog  as 30 September 2020 amounted to €670.2 million (€347.6 million net of production increases recorded as revenue during the period), up €104.6 million compared to the figure as at 30 June 2020, equal to €565.6 million, in the absence of boat shows traditionally scheduled in September and thanks to the marketing and commercial initiatives undertaken by the Company through the “Sanlorenzo Elite Weekends” held beginning in the second half of September.

BUSINESS OUTLOOK
The actions that were swiftly implemented beginning in March to manage the effects of the COVID-19 pandemic have enabled the Company to limit the impact on results for the current year, also due to the operations of the sites in August and the commercial initiatives in September and October. This, along with the current order portfolio, makes it possible to confirm once again the estimates of stability in Net Revenues New Yachts and EBITDA for 2020 compared to the figure for 2019 .
Moreover, investments referring to the development of new products, innovation and sustainability are confirmed, while additional initiatives not deemed priorities or necessary at this time have been postponed.