TISG: the board of directors approves the selected information for the first quarter of 2024

The Board of Directors of The Italian Sea Group S.p.A. (“TISG” or the “Company”), global operator in luxury yachting, has approved today the selected information related to the business performance of the first quarter of 2024 (Revenues, EBITDA, Net Financial Position, Investments).

Information not subject to audit, not even limited.

Giovanni Costantino, Founder & CEO of The Italian Sea Group, commented:
“I am very proud of the results we approve today, which confirm the moment of development and consolidation that our Group is experiencing. The increasing appreciation of our superyachts from Owners all over the world and the success of semicustom lines, which let us optimise our production capacity, allow us to enhance the quality and visibility
of our order book. We continue our expansion in the most dynamic areas of the world for luxury yachting, attracting an everincreasing and more resilient clientele also due to the important partnerships with leading sector brokers.”

REVENUES
In the first three months of 2024, TISG recorded Revenues for EUR 95.6 million, growing by 12.2% versus EUR 85.2 million during the same period of 2023. Operating Revenues – before Other revenues and income and Commissions – are equal to EUR 95.8 million, growing by 18.6% versus the same period of 2023.
• Shipbuilding Revenues amount to EUR 86.7 million (+26.2% versus the first quarter of 2023). This result is attributable to the regular progress of projects under construction and the signing of new sale contracts.
• Refit Revenues amount to EUR 9.1 million, slightly declining versus the first quarter of 2023. This result is attributable to an increased use of production capacity by Shipbuilding activities, which have experienced a strong acceleration in the first part of the year.

EBITDA
EBITDA is equal to EUR 16.1 million, growing by 16.6% versus EUR 13.8 million in the same period of 2023, with an EBITDA Margin of 16.8%. The increase in marginality over time is attributable to: (i) a strong attention to operating cost management; (ii) an improved efficiency of production processes; (iii) benefits coming from the expansion in production capacity with an optimal mix between Shipbuilding and Refit activities; (iv) internalisation of key supply chain activities, also following the acquisition of woodworking company Celi 1920; (v) an increase in sale prices, due to a constant improvement in the recognition of the Company’s brands from owners and brokers worldwide; and (vi) economies of scale.

BACKLOG
The total value of the Order Book, relating to the gross value of existing contracts for yachts not yet delivered to clients, as of March 31st, 2024 is equal to EUR 1,344.4 million. The total value of existing contracts for yachts not yet delivered to clients, net of the revenues already recorded in the income statement (Net Backlog) as of March 31st, 2024 is equal to EUR 667.4 million.

As of March 31st, 2024, there are 35 projects under construction: 25 yachts and megayachts and 10 Tecnomar for Lamborghini 63, with deliveries scheduled until 2027.

INVESTMENTS
During the first three months of 2024, TISG carried out Investments for EUR 2 million, mainly related to the completion of the works for the enhancement of the production capacity of Celi 1920, to the “TISG NEW ERA” project for the extension of the commercial offices, and the expansion of the Upholstery and Steelworks Business Units in the Marina di Carrara Headquarters.

NET FINANCIAL POSITION
Net Financial Position at March 31st, 2024 is negative for EUR 25 million versus a Net Financial Position positive for EUR 2 million at December 31st, 2023. In accordance with IAS/IFRS accounting principles, the extension of 29 years of the state concession on the Marina di Carrara shipyard obtained at the end of 2023 – from December 31st, 2043 to December 31st, 2072 – had an impact on Net Financial Debt for EUR 8 million for the current values of the future fees due.

Also of note are Investments for EUR 2 million for the enhancement of Celi 1920 production capacity, and the expansion of commercial offices as well as the Upholstery and Steelworks Business Units in the Marina di Carrara Headquarters.

The remaining part is attributable to the regular Net Working Capital dynamics driven by the planning of contractual instalments of the projects in progress.

2024 GUIDANCE
In light of first quarter results, the regular progress of existing projects, and the expected increase of the order intake for the second half of the year, The Italian Sea Group confirms the 2024 Guidance already announced during the Capital Markets Day, with Revenues at December 31st, 2024 between EUR 400 – 420 million and EBITDA Margin between 17 – 17.5%.

Furthermore, during the Capital Markets Day held last February 7th, the Company presented its 2025 Strategic Outlook with Revenues between EUR 430 – 450 million and EBITDA Margin between 18 – 18.5%.

BUSINESS OUTLOOK
Strategic partnerships and commercial development TISG continues its international development path through commercial partnerships with leading brokers.
In April 2024, the Company signed an agreement with the renowned Yachting Family Office Kitson Yachts to act as an “Authorised Sales Agency” in America, a geographic area of particular interest to TISG and with great potential of demand development. Located in Miami, Kitson Yachts will start-up an important capillary expansion plan in the US and beyond. At The Italian Sea Group, they already follow the construction of two Admiral mega-yachts of 73 and 88 metres. The great success of the semi-custom lines continues with the sale of the fifth unit of the Admiral 50 model to an owner from the UAE, further showing the Company’s commercial strength in the region. The Company also sold the first unit of the Admiral 40 line, presented to the market just at the beginning of the year.

The development of the semi-custom segment will allow TISG to decrease delivery times compared to full-custom mega-yachts – which will remain the Company’s core business – thus attracting a broader range of clients and, at the same time, will allow for the utilisation of the expanded production capacity without impacting the Company’s engineering department, which will remain focused on the core business.