Core Insights - The company reported a net income of approximately €638 million for the first half of 2025, reflecting a year-on-year decline of about 1.3% [2] - Adjusted EBITDA for the same period was approximately €99.1 million, showing a year-on-year increase of about 2.5% [2] - Shareholder profit attributable to the company was €43.45 million, a decrease of 0.92% year-on-year, with earnings per share at €0.13 [2] Financial Performance - Cumulative order amount as of June 30, 2025, was €1.446 billion, a slight decrease of 3.3% compared to the same period last year [2] - The company delivered a total of 133 yachts in the first half of the year, including 102 yachts delivered in the second quarter, with two of them being superyachts [2] Sales Dynamics - The decline in net income was primarily attributed to a decrease in the sales of second-hand yachts, which is related to available inventory [2] - The second-hand yacht sales refer to the trade-in offers provided to customers to promote yacht sales [2]

Core Insights - The company reported a net income of approximately €638 million for the six months ending June 30, 2025, representing a decrease of about 1.3% compared to the same period in 2024 [1] - The group's profit for the same period was approximately €43.6 million, reflecting a year-on-year decline of about 1.1% [1] - Earnings per share attributable to shareholders were €0.13 [1] Business Developments - On June 27, 2025, the company launched "Riva Volare" in collaboration with Flexjet Limited, a leading player in the global private aviation industry, which is an exclusive interior design project for Flexjet's aircraft cabins inspired by the style of Riva motorboats [1]

[Company Information](index=3&type=section&id=Company%20Information) The report details core company information including executive and non-executive directors, committee members, legal advisors, auditors, and principal places of business, noting changes in the board of directors during the period - The report provides detailed core company information, including executive and non-executive directors, committee members, legal advisors, auditors, and principal places of business, with changes in board members during the reporting period, as Mr. Xu Xinyu and Mr. Zhang Quan resigned, and Mr. Tan Ning and Mr. Hao Qinggui were appointed[6](index=6&type=chunk)[7](index=7&type=chunk)[9](index=9&type=chunk) [Financial Summary](index=5&type=section&id=Financial%20Summary) This section provides an overview of the company's financial performance and key ratios, highlighting net revenue, profit, assets, liabilities, and equity changes [Performance Overview](index=5&type=section&id=Performance%20Overview) For the six months ended June 30, 2025, the company reported a slight decrease in net revenue and profit, with minor declines in total assets and liabilities Financial Performance (Thousand Euro) | Metric | Six Months Ended June 30, 2025 (Thousand Euro) | Six Months Ended June 30, 2024 (Thousand Euro) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | 638,269 | 646,416 | (1.3)% | | Profit Before Tax | 63,350 | 63,835 | (0.8)% | | Profit for the Period | 43,569 | 44,047 | (1.1)% | Financial Position (Thousand Euro) | Metric | As of June 30, 2025 (Thousand Euro) | As of December 31, 2024 (Thousand Euro) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,643,284 | 1,661,444 | (1.1)% | | Total Liabilities | (739,400) | (763,208) | (3.1)% | | Equity Attributable to Company Shareholders | 902,717 | 897,155 | 0.6% | [Key Financial Ratios](index=5&type=section&id=Key%20Financial%20Ratios) The company's profitability ratios, including return on equity and total asset return, slightly decreased, while the quick ratio declined and the debt-to-capital ratio marginally increased Key Financial Ratios | Ratio Category | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | :--- | | Profitability Ratios | Return on Equity | 9.7% | 10.2% | | | Return on Total Assets | 5.3% | 5.4% | | Liquidity Ratios | Current Ratio | 1.3 | 1.3 | | | Quick Ratio | 0.6 | 0.7 | | Capital Adequacy Ratios | Debt-to-Capital Ratio | 4.0% | 3.7% | [Chairman's Report](index=6&type=section&id=Chairman's%20Report) The Chairman's report reviews the group's operational performance, strategic initiatives, and future outlook, emphasizing growth drivers and ESG commitments [Operational Review](index=6&type=section&id=Operational%20Review) In H1 2025, the group achieved growth in new yacht net revenue and adjusted EBITDA, driven by custom-made and superyachts, alongside strong ESG commitments - New yacht net revenue increased by **1.5%** year-on-year to approximately **€620.4 million**; adjusted EBITDA grew by **2.5%** year-on-year to **€99.1 million**, with the margin improving from **15.8%** to **16.0%**[15](index=15&type=chunk) H1 2025 New Yacht Net Revenue by Type (Million Euro) | Yacht Type | H1 2025 New Yacht Net Revenue (Million Euro) | Y-o-Y Change | | :--- | :--- | :--- | | Composite Yachts | 234.4 | -11.6% | | Custom-Made Yachts | 253.1 | +8.6% | | Superyachts | 104.4 | +26.6% | - The group emphasizes its ESG commitments, including collaboration with Rolls-Royce on hybrid solutions, launching the first full-electric Riva El-Iseo speedboat, and exploring hydrogen energy applications in yachts with Weichai Group[20](index=20&type=chunk)[21](index=21&type=chunk) [Outlook and Prospects](index=8&type=section&id=Outlook%20and%20Prospects) The group remains optimistic about the luxury yacht industry's resilience and plans to strengthen its market position through five strategic pillars, focusing on product expansion, sustainable innovation, and service growth - The group's future plans are based on five strategic pillars: - **Product Expansion**: Consolidating leadership in composite and custom-made yachts - **Sustainable Innovation**: Investing in eco-friendly materials and processes - **Superyacht Development**: Developing new alloy-bodied superyachts under brands like Riva and Pershing - **Service Expansion**: Expanding yacht brokerage, charter, management, and after-sales services - **Vertical Integration**: Investing in the internalization of high-value-added activities to support growth[22](index=22&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the group's business operations, significant events, and financial performance, including order trends, revenue drivers, cost management, and financial position [Principal Activities and Business Review](index=9&type=section&id=Principal%20Activities%20and%20Business%20Review) Ferretti Group, a global leader in luxury yachts with seven iconic brands, achieved strong H1 2025 results with increased net revenue and adjusted EBITDA, driven by successful commercial strategies and pricing power - The group is a recognized global leader in the luxury yacht industry, owning seven major brands including Riva, Wally, Ferretti Yachts, Pershing, Itama, CRN, and Custom Line, designing, producing, and selling luxury yachts from **8 to 95 meters**[23](index=23&type=chunk) - In H1 2025, new yacht net revenue increased by **1.5%** year-on-year to **€620.4 million**, adjusted EBITDA grew by **2.5%** year-on-year to **€99.1 million**, and the adjusted EBITDA margin improved by **20 basis points** to **16.0%**[24](index=24&type=chunk) [Significant Events in H1 2025](index=10&type=section&id=Significant%20Events%20in%20H1%202025) In H1 2025, the group actively participated in major international boat shows, launched a new interior design project, and distributed a dividend of €0.10 per share - From January to May 2025, the group actively participated in several major international boat shows held in Düsseldorf, Miami, Dubai, Palm Beach, Singapore, and Venice[27](index=27&type=chunk)[28](index=28&type=chunk) - On June 18, 2025, the company distributed a dividend of **€0.10 per share**, totaling **€33,848,265.40**[26](index=26&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) Despite macroeconomic uncertainties, the group maintained robust financial performance with stable order backlog, increased new yacht net revenue, improved adjusted EBITDA margin, and a strong net cash position [New Orders](index=11&type=section&id=New%20Orders) New orders for the six months ended June 30, 2025, decreased by 9.2% to €467.3 million, primarily due to fewer custom-made and superyacht orders, despite strong growth in the Asia Pacific region New Orders by Product Type (Million Euro) | Product Type | H1 2025 New Orders (Million Euro) | Y-o-Y Change | | :--- | :--- | :--- | | Composite Yachts | 160.9 | -0.4% | | Custom-Made Yachts | 237.8 | -7.2% | | Superyachts | 64.9 | -32.7% | | **Total** | **467.3** | **-9.2%** | New Orders by Region (Million Euro) | Region | H1 2025 New Orders (Million Euro) | Y-o-Y Change | | :--- | :--- | :--- | | Europe | 181.1 | -0.5% | | Middle East & Africa | 130.6 | -21.9% | | Asia Pacific | 12.8 | +82.9% | | Americas | 142.8 | -9.7% | | **Total** | **467.3** | **-9.2%** | [Order Backlog](index=13&type=section&id=Order%20Backlog) As of June 30, 2025, the group's order backlog slightly decreased by 3.3% to €1,446 million, with superyachts becoming the most significant segment due to a 32.0% increase Order Backlog by Product Type (Million Euro) | Product Type | Order Backlog (Million Euro) | Share | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Composite Yachts | 225.2 | 15.6% | -31.5% | | Custom-Made Yachts | 490.8 | 33.9% | -16.7% | | Superyachts | 689.0 | 47.7% | +32.0% | | Other Businesses | 41.0 | 2.8% | -26.5% | | **Total** | **1,446.0** | **100.0%** | **-3.3%** | [Net Revenue](index=15&type=section&id=Net%20Revenue) Total net revenue for H1 2025 slightly decreased by 1.3% to €638.3 million, mainly due to lower pre-owned yacht sales, while new yacht net revenue grew, driven by custom-made and superyachts H1 2025 New Yacht Net Revenue by Product Type (Thousand Euro) | Product Type | H1 2025 New Yacht Net Revenue (Thousand Euro) | Y-o-Y Change | | :--- | :--- | :--- | | Composite Yachts | 234,403 | -11.6% | | Custom-Made Yachts | 253,134 | +8.6% | | Superyachts | 104,444 | +26.6% | | **Total New Yacht Net Revenue** | **620,439** | **+1.5%** | H1 2025 New Yacht Net Revenue by Region (Million Euro) | Region | H1 2025 New Yacht Net Revenue (Million Euro) | Y-o-Y Change | | :--- | :--- | :--- | | Europe | 250.7 | -19.9% | | Middle East & Africa | 219.9 | +94.9% | | Asia Pacific | 9.7 | -59.4% | | Americas | 140.1 | -13.1% | [Cost and Expense Analysis](index=17&type=section&id=Cost%20and%20Expense%20Analysis) During the reporting period, the group effectively managed costs, with decreases in raw material consumption and significant reductions in provisions and impairments, while contractor and personnel costs saw moderate increases - Raw materials and consumables used decreased by **13.3%** year-on-year to **€288.8 million**, primarily due to adjustments in procurement volumes for production needs[58](index=58&type=chunk) - Contractor costs increased by **8.1%** year-on-year to **€142.4 million**, mainly due to a different mix of raw material purchases[59](index=59&type=chunk) - Personnel costs increased by **4.1%** year-on-year to **€77.5 million**, primarily due to an increase in average employee headcount to support business growth[63](index=63&type=chunk) [Non-IFRS Measures](index=19&type=section&id=Non-IFRS%20Measures) The group's adjusted EBITDA increased by 2.5% to €99.1 million, with the adjusted EBITDA margin improving by 20 basis points to 16.0%, indicating enhanced profitability Non-IFRS Measures (Thousand Euro) | Metric (Thousand Euro) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit After Tax | 43,569 | 44,047 | | EBITDA | 99,458 | 96,997 | | **Adjusted EBITDA** | **99,073** | **96,716** | | **Adjusted EBITDA Margin** | **16.0%** | **15.8%** | [Selected Balance Sheet Items](index=22&type=section&id=Selected%20Balance%20Sheet%20Items) As of June 30, 2025, the group's balance sheet remained robust, with a slight increase in inventories to support deliveries and reductions in trade and other receivables and payables - Inventories slightly increased from **€443.6 million** to **€453.9 million** to build sufficient stock for deliveries[74](index=74&type=chunk) - Trade and other receivables decreased by **20.5%** from **€74.6 million** to **€59.3 million**[75](index=75&type=chunk) - Trade and other payables decreased by **8.6%** from **€479.1 million** to **€438.2 million**[78](index=78&type=chunk) [Other Financial Information](index=24&type=section&id=Other%20Financial%20Information) The group maintains a healthy financial position with €76.7 million in cash flow from operations and a net cash position of €101.6 million as of June 30, 2025, despite dividend payouts and capital investments - Cash flow generated from operating activities was **€76.7 million**, an increase year-on-year (compared to **€58.6 million** in H1 2024)[80](index=80&type=chunk) - Capital expenditure amounted to **€42.3 million**, with **€25.4 million** allocated to business expansion[81](index=81&type=chunk) - The net financial position was a net cash of **€101.6 million**, remaining robust despite **€33.8 million** in dividends paid and **€51.4 million** in investments[82](index=82&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) The group's capital structure is robust with extremely low debt levels, evidenced by total bank and other borrowings of approximately €36 million and a debt-to-capital ratio of only 4.0% as of June 30, 2025 - Total bank and other borrowings amounted to approximately **€36 million**[84](index=84&type=chunk) - The debt-to-capital ratio was **4.0%** (3.7% at year-end 2024), indicating extremely low debt levels and a robust financial position[85](index=85&type=chunk) [Risk Factors](index=26&type=section&id=Risk%20Factors) The group continuously monitors various risks, including competition, regulatory changes, and market developments, while managing Euro-USD exchange rate exposure through hedging strategies - The group identifies and assesses risks arising from competition, regulatory changes, personnel changes, and market developments[89](index=89&type=chunk)[90](index=90&type=chunk) - The group primarily faces Euro-USD exchange rate fluctuation risk and uses foreign currency forward contracts for hedging, though no such contracts were held at the end of the reporting period[92](index=92&type=chunk) [Human Resources](index=26&type=section&id=Human%20Resources) As of June 30, 2025, the group had 2,127 employees, a slight increase from year-end 2024, with total staff costs rising by 4.1% due to increased average headcount supporting business growth Employee Statistics and Costs (Million Euro) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 2,127 | 2,118 | | H1 Staff Costs (Million Euro) | 77.5 | 74.4 (H1 2024) | [Events After Reporting Period](index=26&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the group increased its stake in Sea Lion S.r.l. to 100% in July 2025, achieving full control of the "Wally" brand, and also divested its entire equity in Ferretti Tech S.r.l. - In July 2025, the group increased its equity interest in Sea Lion S.r.l. (the "Wally" brand) to **100%**[95](index=95&type=chunk) - In July 2025, the group disposed of its entire equity interest in Ferretti Tech S.r.l[96](index=96&type=chunk) [Outlook](index=27&type=section&id=Outlook) The group believes the global yachting industry remains resilient despite uncertainties and will continue executing its strategic pillars to enhance its market leadership, value proposition, and overall resilience - The group reiterates its five strategic pillars for future development, aiming to consolidate market leadership, enhance value proposition, and strengthen overall resilience[98](index=98&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's adherence to corporate governance codes in Hong Kong and Italy, including compliance with listing rules and the audit committee's review of interim financial statements [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company is committed to complying with corporate governance codes in Hong Kong and Italy, having adhered to relevant HKEX Listing Rules provisions during the reporting period, with the audit committee reviewing interim financial statements - The company has been listed on the Hong Kong Stock Exchange since **March 31, 2022**, and dual-listed on Euronext Milan since **June 27, 2023**[99](index=99&type=chunk) - During the reporting period, the company complied with the Corporate Governance Code provisions set out in Appendix C1 to the Hong Kong Listing Rules[101](index=101&type=chunk) [Disclosure of Interests](index=29&type=section&id=Disclosure%20of%20Interests) As of June 30, 2025, Director Piero Ferrari held approximately 4.63% of the company's shares, while Shandong Heavy Industry Group held 37.54% and Azúr a.s. and its associates held 14.07% Shareholder Interests | Shareholder Name | Capacity | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Piero Ferrari | Controlled Corporations and Beneficial Owner | 15,680,983 | 4.63% | | Shandong Heavy Industry Group | Interest in Controlled Corporations | 127,070,120 | 37.54% | | Azúr a.s. | Beneficial Owner | 47,625,748 | 14.07% | [Use of Net Proceeds from HK Listing](index=32&type=section&id=Use%20of%20Net%20Proceeds%20from%20HK%20Listing) As of June 30, 2025, the group fully utilized the HK$1.863 billion net proceeds from its Hong Kong global offering, primarily for product portfolio expansion, operational efficiency, enhanced ancillary services, and brand promotion Use of Net Proceeds (Million HKD) | Purpose | Net Proceeds Available (Million HKD) | Net Proceeds Utilized (Million HKD) | Net Proceeds Unutilized (Million HKD) | | :--- | :--- | :--- | :--- | | Expanding Product Portfolio and Enhancing Operational Excellence | 1,266.7 | 1,853.0 | (586.2) | | Strengthening Ancillary Services Portfolio | 447.1 | 0 | 447.1 | | Brand Promotion and General Corporate Purposes | 149.0 | 9.9 | 139.1 | | **Total** | **1,862.9** | **1,862.9** | **0** | - The group has fully utilized the net proceeds from the Hong Kong global offering for the purposes stated in the prospectus[113](index=113&type=chunk) [Independent Auditor's Review Report](index=32&type=section&id=Independent%20Auditor's%20Review%20Report) This section presents the independent auditor's review report on the interim condensed consolidated financial statements, confirming no material issues were found in their preparation [Review Conclusion](index=33&type=section&id=Review%20Conclusion) Independent auditor EY S.p.A. reviewed the group's interim condensed consolidated financial statements for the six months ended June 30, 2025, concluding that no matters indicated non-compliance with IAS 34 - Auditor EY S.p.A. issued a review conclusion on the interim condensed consolidated financial statements, finding no material issues[114](index=114&type=chunk)[116](index=116&type=chunk) [Interim Condensed Consolidated Financial Statements](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's interim condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows [Interim Condensed Consolidated Statement of Profit or Loss](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the group reported net revenue of €638 million, profit before tax of €63.35 million, and profit for the period of €43.57 million, with basic and diluted earnings per share at €0.13 Interim Condensed Consolidated Statement of Profit or Loss (Thousand Euro) | Metric (Thousand Euro) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Revenue | 638,269 | 646,416 | | Profit Before Tax | 63,350 | 63,835 | | Profit for the Year | 43,569 | 44,047 | | Profit Attributable to Company Shareholders | 43,454 | 43,859 | | Earnings Per Share (Euro) | 0.13 | 0.13 | [Interim Condensed Consolidated Statement of Financial Position](index=36&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets were €1.643 billion, total liabilities €739 million, and total equity €904 million, indicating a sound financial position with good liquidity Interim Condensed Consolidated Statement of Financial Position (Thousand Euro) | Metric (Thousand Euro) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 1,643,284 | 1,661,444 | | Total Liabilities | 739,400 | 763,208 | | Total Equity | 903,884 | 898,236 | [Interim Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2025, net cash inflow from operating activities significantly improved to €76.67 million, with net cash outflows from investing and financing activities, resulting in €134 million cash and cash equivalents at period-end Interim Condensed Consolidated Statement of Cash Flows (Thousand Euro) | Cash Flow Activities (Thousand Euro) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash Flow from Operating Activities | 76,667 | 58,615 | | Cash Flow Used in Investing Activities | (52,645) | (58,651) | | Cash Flow (Used in)/from Financing Activities | (41,258) | (40,499) | | **Net Decrease in Cash and Cash Equivalents** | **(17,236)** | **(40,535)** | | **Cash and Cash Equivalents at End of Period** | **133,982** | **273,657** | [Notes to the Interim Condensed Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering financial risk management, net revenue breakdown, intangible assets, and related party transactions [Note 4. Financial Risk Management](index=44&type=section&id=Note%204.%20Financial%20Risk%20Management) The group manages liquidity, market (currency and interest rate), and credit risks through cash flow planning, fair sales policies, and monitoring, with credit risk deemed immaterial due to customer types and commercial policies - The group primarily faces exchange rate risk related to the US Dollar and conducted a sensitivity analysis on Euro/USD exchange rate changes, where a **-5%** change would increase profit before tax by **€0.812 million** and equity by **€14.07 million**[167](index=167&type=chunk)[168](index=168&type=chunk) - Credit risk is considered immaterial as commercial policy requires payment of the balance before or upon vessel delivery; as of June 30, 2025, approximately **€10.72 million** of the **€35.33 million** in trade receivables were overdue by more than **90 days**[172](index=172&type=chunk)[173](index=173&type=chunk) - The group manages liquidity risk by weekly planning of expected cash flows, with most transactions requiring full payment upon delivery and advance payments collected based on production progress[161](index=161&type=chunk) [Note 5. Net Revenue](index=56&type=section&id=Note%205.%20Net%20Revenue) This note details the composition of net revenue, with H1 2025 total net revenue at €638 million, primarily from new yacht sales, with custom-made yachts contributing the most by product and Europe by region Net Revenue by Product Type (Thousand Euro) | Product Type (Thousand Euro) | H1 2025 Net Revenue | H1 2024 Net Revenue | | :--- | :--- | :--- | | Composite Yachts | 234,403 | 265,048 | | Custom-Made Yachts | 253,134 | 233,144 | | Superyachts | 104,444 | 82,496 | | Other Businesses | 28,458 | 30,352 | | Pre-owned Yachts | 17,829 | 35,376 | | **Total Net Revenue** | **638,269** | **646,416** | - As of June 30, 2025, the transaction price allocated to unsatisfied performance obligations (i.e., net order backlog) was **€761 million**, of which **€469 million** is expected to be recognized as revenue within one year[196](index=196&type=chunk) [Note 29. Intangible Assets](index=75&type=section&id=Note%2029.%20Intangible%20Assets) As of June 30, 2025, the group's intangible assets had a net book value of €282 million, with trademarks, including core brands like Ferretti Yachts and Riva, being the largest component at €245 million Key Intangible Assets (Thousand Euro) | Key Intangible Assets (Thousand Euro) | Net Book Value as of June 30, 2025 | | :--- | :--- | | Trademarks | 245,045 | | Concessions | 14,350 | | Intellectual Property Rights | 15,257 | | Goodwill | 7,097 | | **Total Intangible Assets** | **282,406** | [Note 45. Related Party Transactions](index=93&type=section&id=Note%2045.%20Related%20Party%20Transactions) The group engages in related party transactions on fair terms with entities like Weichai Power (sponsoring Ferrari F1 team helmets) and Shandong Weichai Import & Export (yacht sales), as well as other affiliates for design services and brand sponsorship - The balance of payables to fellow subsidiary Weichai Power Co., Ltd. was **€0.645 million**, related to sponsoring the "Riva" brand helmet for the Ferrari F1 team[307](index=307&type=chunk)[308](index=308&type=chunk) - Receivables from Shandong Weichai Import & Export Co., Ltd. amounted to **€1.4 million**, related to the sale of a yacht[309](index=309&type=chunk) [Declaration on Interim Condensed Consolidated Financial Statements as per Article 154-BIS, Paragraph 5 of Legislative Decree 58/98 (as amended and supplemented) concerning the Interim Condensed Consolidated Financial Statements as of June 30, 2025](index=97&type=section&id=Declaration%20on%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20as%20per%20Article%20154-BIS%2C%20Paragraph%205%20of%20Legislative%20Decree%2058%2F98%20(as%20amended%20and%20supplemented)%20concerning%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20as%20of%20June%2030%2C%202025) This section contains the management's declaration affirming that the interim condensed consolidated financial statements were prepared in accordance with IFRS and accurately reflect the company's financial position and operating results [Management Declaration](index=97&type=section&id=Management%20Declaration) CEO Alberto Galassi and Financial Reporting Officer Marco Zammarchi jointly declared that the interim condensed consolidated financial statements were prepared following appropriate administrative and accounting procedures, comply with IFRS, and fairly represent the company's financial position and operating results - The Chief Executive Officer and the Financial Reporting Officer certified that the interim condensed consolidated financial statements comply with International Financial Reporting Standards, correspond to the accounting records, and truly and fairly represent the company's financial position[320](index=320&type=chunk) [Definitions](index=98&type=section&id=Definitions) This section provides clear definitions for key terms and abbreviations used throughout the report, ensuring consistent understanding for readers [Key Term Definitions](index=98&type=section&id=Key%20Term%20Definitions) This section provides detailed definitions for key terms and abbreviations used in the report, such as "the Company," "the Group," "Controlling Shareholder" (Shandong Heavy Industry Group), "Dual Listing" (HKEX and Euronext Milan), and various geographical regions, ensuring consistent reader understanding - Clear definitions are provided for professional terms, company entities, regulatory rules, and currency units used in the report[322](index=322&type=chunk)[324](index=324&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk)

[Performance Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Net revenue slightly decreased to €638.3 million, while Adjusted EBITDA grew 2.5% to €99.1 million Key Financial Indicators for H1 2025 | Indicator | Six Months Ended June 30, 2025 | Change vs. H1 2024 | | :--- | :--- | :--- | | Net Revenue | €638.3 million | -1.3% | | Profit for the Period | €43.6 million | -1.1% | | Profit Attributable to Shareholders | - | -0.9% | | Adjusted EBITDA | €99.1 million | +2.5% | [Business Summary](index=1&type=section&id=%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) The Group expanded business through a Flexjet collaboration, a dividend distribution, and global boat show participation - On June 27, 2025, the company partnered with Flexjet Limited to launch the exclusive "Riva Volare" interior design project, integrating Riva yacht style into Flexjet aircraft cabins[5](index=5&type=chunk) - On June 18, 2025, the company completed a dividend distribution totaling **€33,848,265.40**, with a dividend of **€0.10 per share**[6](index=6&type=chunk) - In H1 2025, the Group actively participated in major international boat shows in Düsseldorf, Miami, Dubai, Palm Beach, Singapore, and Venice[7](index=7&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) Net revenue slightly decreased to €638.3 million, while profit for the period remained stable at €43.6 million Summary of Interim Condensed Consolidated Statement of Profit or Loss (in thousands of EUR) | Item | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 676,999 | 678,471 | | Net Revenue | 638,269 | 646,416 | | Profit before tax | 63,350 | 63,835 | | Profit for the period | 43,569 | 44,047 | | Profit attributable to shareholders of the Company | 43,454 | 43,859 | | Basic and diluted earnings per share (EUR) | 0.13 | 0.13 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income decreased to €38.6 million, mainly due to losses from foreign operation translation Summary of Interim Condensed Consolidated Statement of Comprehensive Income (in thousands of EUR) | Item | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the period | 43,569 | 44,047 | | Other comprehensive income/(loss) for the period | (4,978) | 700 | | Total comprehensive income for the period | 38,591 | 44,747 | [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets stood at €1.64 billion and total equity increased to €904 million, reflecting a stable financial structure Summary of Interim Condensed Consolidated Statement of Financial Position (in thousands of EUR) | Item | As of June 30, 2025 (Unaudited) | As of December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Assets | 1,643,284 | 1,661,444 | | Total Liabilities | 739,400 | 763,208 | | Total Equity | 903,884 | 898,236 | [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Cash flow from operations improved to €76.7 million, with period-end cash decreasing to €134.0 million Summary of Interim Condensed Consolidated Statement of Cash Flows (in thousands of EUR) | Item | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Cash flows from operating activities | 76,667 | 58,615 | | Cash flows used in investing activities | (52,645) | (58,651) | | Cash flows (used in)/from financing activities | (41,258) | (40,499) | | Net increase/(decrease) in cash and cash equivalents | 17,236 | (40,535) | | Cash and cash equivalents at end of period | 133,982 | 273,657 | [Notes to the Interim Condensed Consolidated Financial Statements](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Corporate Information and Basis of Preparation](index=9&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%E8%88%87%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Financials are prepared under IAS 34, with management assessing no material ESG impact and initiating ESRS alignment - The company is primarily engaged in the design, construction, and marketing of yachts and pleasure boats, headquartered in Italy[15](index=15&type=chunk)[16](index=16&type=chunk) - The financial statements are prepared in accordance with **International Accounting Standard 34 (IAS 34)**, with accounting policies consistent with the 2024 annual report, and no early adoption of new effective standards[18](index=18&type=chunk)[19](index=19&type=chunk) - Management assesses that **Environmental, Social, and Governance (ESG) related risks do not have a material impact** on the Group's financial position and has initiated alignment with the European Sustainability Reporting Standards (ESRS)[23](index=23&type=chunk)[25](index=25&type=chunk) [Notes to Selected Financial Statement Items](index=12&type=section&id=%E9%81%B8%E5%AE%9A%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%A0%85%E7%9B%AE%E9%99%84%E8%A8%BB) This section details key items like income, costs, receivables, and payables, with EPS stable at €0.13 [Other Income (Note 3)](index=12&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%20(%E9%99%84%E8%A8%BB3)) Other income rose 13% YoY to €11.3 million, driven by increased income from supplier relationships Details of Other Income (in thousands of EUR) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Income from relationships with suppliers | 5,212 | 3,039 | | Reversal of excess provisions for costs | 2,932 | 2,848 | | Total Other Income | 11,257 | 9,968 | [Costs and Expenses (Notes 4-8)](index=12&type=section&id=%E6%88%90%E6%9C%AC%E8%88%87%E9%96%8B%E6%94%AF%20(%E9%99%84%E8%A8%BB4-8)) Raw material costs decreased, while subcontractor and staff costs rose due to business growth - Cost of raw materials and consumables used decreased from **€333 million to €289 million**[27](index=27&type=chunk) - Costs for subcontractors increased from **€132 million to €142 million**[28](index=28&type=chunk) - Staff costs increased from **€74.4 million to €77.5 million**[31](index=31&type=chunk) [Trade and Other Receivables (Note 11)](index=15&type=section&id=%E8%B2%A1%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%20(%E9%99%84%E8%A8%BB11)) Total trade and other receivables decreased to €59.3 million, with no significant credit risk concentration Trade and Other Receivables (in thousands of EUR) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 35,333 | 36,437 | | Other receivables | 23,948 | 38,137 | | Total | 59,281 | 74,574 | [Trade and Other Payables (Note 12)](index=18&type=section&id=%E8%B2%A1%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%20(%E9%99%84%E8%A8%BB12)) Total trade and other payables decreased to €438 million, mainly comprising amounts due to suppliers Trade and Other Payables (in thousands of EUR) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 384,531 | 427,026 | | Other payables | 53,648 | 52,121 | | Total | 438,179 | 479,147 | [Earnings Per Share (Note 13)](index=20&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%20(%E9%99%84%E8%A8%BB13)) Basic and diluted earnings per share remained unchanged YoY at €0.13 Calculation of Earnings Per Share | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to shareholders of the Company (in thousands of EUR) | 43,454 | 43,859 | | Weighted average number of shares | 338,482,654 | 338,482,654 | | Basic and diluted earnings per share (EUR) | 0.13 | 0.13 | [Management Discussion and Analysis](index=21&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Principal Activities and Business Review](index=21&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E5%8F%8A%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group leveraged its seven iconic brands to drive performance through pricing power and custom yacht sales - The Group is a global leader in the luxury yacht industry, owning seven iconic brands including **Riva, Wally, and Ferretti Yachts**, and is regarded as an ambassador of Italian nautical excellence[52](index=52&type=chunk) - Strong performance confirmed the advantages of the company's industrial strategy, including **strong pricing power**, integration of the high-margin made-to-measure yacht segment, and effective cost absorption[53](index=53&type=chunk) [Outlook](index=23&type=section&id=%E5%B1%95%E6%9C%9B) Future strategy focuses on market leadership, sustainable innovation, and expansion into superyachts and services - Future strategic pillars include: - Consolidating market leadership in composite and made-to-measure yachts - Investing in sustainable materials and process innovation - Developing new alloy-hull superyachts under brands like Riva and Pershing - Expanding brokerage, charter, after-sales, and brand extension activities - Investing in the internalization of high-value-added activities[58](index=58&type=chunk) [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The order backlog stood at €1.45 billion, with Adjusted EBITDA margin improving to 16.0% and net cash at €102 million [Order Backlog](index=24&type=section&id=%E7%B4%AF%E7%A9%8D%E8%A8%82%E5%96%AE) The order backlog was €1.45 billion, with a significant mix shift as superyacht orders grew 32.0% Order Backlog by Product Type (in millions of EUR) | Product Type | H1 2025 | Share | H1 2024 | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Composite yachts | 225.2 | 15.6% | 328.7 | 22.0% | -31.5% | | Made-to-measure yachts | 490.8 | 33.9% | 589.4 | 39.4% | -16.7% | | Super yachts | 689.0 | 47.7% | 521.9 | 34.9% | +32.0% | | Other businesses | 41.0 | 2.8% | 55.8 | 3.7% | -26.5% | | Total | 1,446.0 | 100.0% | 1,495.8 | 100.0% | -3.3% | [Net Revenue](index=25&type=section&id=%E6%B7%A8%E6%94%B6%E7%9B%8A) New yacht net revenue grew 1.5% to €620 million, driven by strong performance in the MEA region Net Revenue from New Yachts by Product Type (in thousands of EUR) | Product Type | H1 2025 | Share | H1 2024 | Share | | :--- | :--- | :--- | :--- | :--- | | Composite yachts | 234,403 | 37.8% | 265,048 | 43.4% | | Made-to-measure yachts | 253,134 | 40.8% | 233,144 | 38.2% | | Super yachts | 104,444 | 16.8% | 82,496 | 13.5% | | Total Net Revenue from New Yachts | 620,439 | 100.0% | 611,041 | 100.0% | - By geography, the **MEA region's share of net revenue from new yachts grew significantly to 35.4%** from 18.5% YoY, while Europe's share decreased from 51.2% to 40.4%[74](index=74&type=chunk) [Non-IFRS Measures](index=30&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) Adjusted EBITDA increased 2.5% to €99.1 million, with the margin improving to 16.0% Adjusted EBITDA Reconciliation (in thousands of EUR) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period | 43,569 | 44,047 | | Add: Income tax | 19,780 | 19,788 | | Add: Net financial expenses, depreciation & amortization, etc. | 36,118 | 32,862 | | EBITDA | 99,458 | 96,997 | | Adjusted EBITDA | 99,073 | 96,716 | | Adjusted EBITDA Margin | 16.0% | 15.8% | [Liquidity and Financial Resources](index=33&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintained a robust net cash position of €101.6 million and a low gearing ratio of 4.0% - As of June 30, 2025, the Group's net financial position was **net cash of €101.6 million**[94](index=94&type=chunk) - Capital expenditure for H1 was **€42.3 million**, with approximately €25.4 million allocated to business expansion[93](index=93&type=chunk) - The **gearing ratio (total debt/total equity) was approximately 4.0%**, a slight increase from 3.7% at the end of 2024, indicating a very low debt level[97](index=97&type=chunk) [Risk Factors and Human Resources](index=35&type=section&id=%E9%A2%A8%E9%9A%AA%E5%9B%A0%E7%B4%A0%E8%88%87%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group manages currency risk via hedging and increased its headcount to 2,127 to support growth - The Group's main foreign exchange risk arises from **EUR/USD exchange rate fluctuations**, which it hedges using foreign currency forward contracts[103](index=103&type=chunk) Human Resources Overview | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 2,127 | 2,118 | | H1 Staff Costs | €77.5 million | €74.4 million (H1 2024) | [Other Disclosures](index=35&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) [Dividend and Share Repurchase](index=35&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B3%BC) The Board does not recommend an interim dividend, and no share repurchases occurred during the period - The Board of Directors **does not recommend the payment of an interim dividend**[105](index=105&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[107](index=107&type=chunk) [Corporate Governance and Compliance](index=36&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E5%90%88%E8%A6%8F) The company maintained full corporate governance compliance, with its interim results reviewed by the Audit Committee - The net proceeds from the Hong Kong listing, approximately **HK$1.863 billion**, were fully utilized as of June 30, 2025, in accordance with the purposes stated in the prospectus[108](index=108&type=chunk) - The company has complied with the code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the Hong Kong Listing Rules during the reporting period[110](index=110&type=chunk) - The **Audit Committee has reviewed the unaudited interim financial statements** and concurs that they were prepared in compliance with applicable accounting standards and regulatory requirements[112](index=112&type=chunk) [Events After the Reporting Period](index=37&type=section&id=%E6%9C%89%E9%97%9C%E6%9C%9F%E9%96%93%E5%BE%8C%E4%BA%8B%E9%A0%85) Post-period, the Group acquired full ownership of the 'Wally' brand and divested Ferretti Tech S.r.l - In July 2025, the Group increased its shareholding in **Sea Lion S.r.l. (owner of the "Wally" brand) to 100%**[113](index=113&type=chunk) - In July 2025, the Group **disposed of its entire equity interest in Ferretti Tech S.r.l.**[114](index=114&type=chunk)

Financial Data and Key Metrics Changes - Revenues increased by 1.5% to €620,000,000 compared to the previous year [5] - Adjusted EBITDA grew by 2.5% to €99,000,000, with an EBITDA margin increase from 15.8% to 16% [5][29] - Net backlog decreased by 3.2% from €786,000,000 to €761,000,000 [5] Business Line Data and Key Metrics Changes - Made to measure segment increased by 8.6%, while superyacht segment grew by 26.5% [28] - Composite yachts above 80 feet accounted for more than half of the orders in Q2 [21] Market Data and Key Metrics Changes - The U.S. market showed a significant increase in negotiations, rising from €270,000,000 to €420,000,000 [34] - The Middle East market is recovering, with negotiations resuming after previous disruptions [68] Company Strategy and Development Direction - The company focuses on high-end markets, specifically above 24 meters, and aims to maintain a strong position despite market pressures [32][33] - A cost containment program has been implemented to enhance competitiveness and support profitability [60][78] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving the guidance for 2025, despite market uncertainties and pressures from competitors [41] - The upcoming boat shows are expected to provide significant opportunities for sales and brand exposure [6][40] Other Important Information - The company has no debt and maintains over €100,000,000 in cash after paying dividends [42] - The Ravenna Shipyard is expected to be fully operational by October, enhancing production capabilities [40] Q&A Session Summary Question: How do you feel about the news on tariffs in the U.S. market? - Management indicated that tariffs are manageable and do not significantly impact the company, as most products do not have an American flag [47][49] Question: What gives you confidence to reach the 16.5% adjusted EBITDA margin guidance? - Confidence stems from a favorable product mix and a cost containment program that has been implemented [60] Question: Is the increase in order intake driven by a specific region? - The increase is widespread, with notable recovery in the Middle East and the U.S. market returning to normal [68] Question: Can you elaborate on the ongoing cost-cutting initiatives? - The company is reducing fixed costs by adjusting production rates and postponing non-essential expenses, with a goal to cut approximately 5% of fixed costs [78]

Financial Performance - Revenue increased by 1.5% YoY, reaching €620 million in H1'25 compared to €611 million in H1'24 [8, 39] - Adjusted EBITDA grew by 2.5% YoY, reaching €99 million in H1'25 compared to €97 million in H1'24 [8, 41] - Adjusted EBITDA margin increased by 20 bps to 16.0% in H1'25 from 15.8% in H1'24 [8, 41] - Net backlog decreased by 3.2% YoY, from €786 million in H1'24 to €761 million in H1'25 [8, 25] Order Intake - Overall order intake decreased by 9.2% YoY, from €514 million in H1'24 to €467 million in H1'25 [28] - Composite Yachts order intake decreased by 32.7% YoY [32] - Made-to-measure Yachts order intake decreased by 0.4% YoY [32] - Super Yachts order intake decreased by 7.2% YoY [32] Geographical Performance - Order intake in Europe increased by 3.8 million YoY [32] - Order intake in AMAS decreased by 21.9% YoY [35] - Order intake in APAC increased by 82.9% YoY [35] Revenue Breakdown - Revenue from Made-to-measure Yachts increased by 8.6% YoY, from €233.1 million in H1'24 to €253.1 million in H1'25 [39] - Revenue from Super Yachts increased by 26.5% YoY, from €82.5 million in H1'24 to €104.4 million in H1'25 [39]

Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Group 1 - The core viewpoint of the report indicates a downward adjustment of the revenue forecast for Ferretti Group due to macroeconomic headwinds affecting yacht demand, with 2025 revenue projected at €1.29 billion, a 3% decrease, and adjusted EBITDA forecasted at €203 million, a 4% decrease [1] - The report introduces a new revenue forecast for 2026 at €1.37 billion and adjusted EBITDA at €221 million, reflecting the company's high-end positioning and market leadership supporting profitability improvement and business resilience [1] - The company showcased seven significant yachts at the 2025 Venice Boat Show, including two global premieres, highlighting its leadership in innovation and luxury yacht craftsmanship [2] Group 2 - Ferretti Group reported a strong performance in Q1 2025, with a record order backlog of €1.77 billion, a 7.6% year-on-year increase, and net revenue (excluding second-hand sales) of €330 million, a 5.0% increase [2] - The company previously provided guidance for 2025, expecting net revenue (excluding second-hand sales) between €1.22 billion and €1.24 billion, with an EBITDA margin improvement of 30 to 50 basis points [3] - The company maintains confidence in achieving its annual and mid-term targets due to a robust order backlog and the resilience of its high-end customer base [3]

Financial Data and Key Metrics Changes - The company reported a record high order intake backlog of €1,800,000,000, an increase of 7.6% compared to €1,769,000,000 in the first quarter of the previous year [4] - Order intake grew by 1.5% to €271,000,000 from €267,000,000 in the previous year [4] - Marginality increased from 15.4% in Q1 2024 to 16% in Q1 2025 [5] - Revenues grew by 5% from €313,000,000 to €329,000,000, exceeding market growth expectations of approximately 4.2% [5][29] - EBITDA reached €53,000,000 with a margin of 16% compared to 15.4% in the previous year [24] Business Line Data and Key Metrics Changes - The made-to-measure yacht segment saw significant growth, now representing 49% of order intake, up from 37% last year [16] - The composite yacht segment remained flat, reflecting a softer U.S. season due to economic uncertainties [15] - The superyacht segment is performing well, with new orders filling slots until 2029 [17] Market Data and Key Metrics Changes - The U.S. market showed strong demand for made-to-measure yachts, while the composite yacht segment faced challenges [35][39] - The Middle East market experienced tough comparisons due to a strong performance in Q1 2024 [18] - The Americas reported a 150% increase in the made-to-measure segment [20] Company Strategy and Development Direction - The company is focusing on expanding its made-to-measure segment and investing in new models, including revamping the Itama brand [11] - The strategy includes maintaining a balanced presence across 71 countries to mitigate risks associated with market fluctuations [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the U.S. market, indicating a return to normalcy after a period of uncertainty [40][59] - The company expects sustainable mid-range single-digit growth for 2025, with net revenues projected between €1,220,000,000 and €1,240,000,000 [29] Other Important Information - The company plans to complete its CapEx plan with investments expected to be below €90,000,000 for 2025 [26] - The net financial position remains positive with €55,000,000 in net cash [27] Q&A Session Summary Question: Current U.S. Market Environment - Management discussed the strong demand for made-to-measure yachts and the challenges faced by the composite yacht segment due to economic uncertainties [35][39] Question: Guidance on Order Intake for 2025 - Management expects order inflow to be slightly better than the previous year, with a conservative outlook for the superyacht segment due to production capacity constraints [45] Question: Net Working Capital Expectations - Management anticipates normalization of working capital in the second quarter, expecting to end the year with a high single-digit ratio [46] Question: Current Trading in April and Early May - Management noted a significant recovery in market conditions globally, with increased inquiries and negotiations [65] Question: Progress on Ravenna Facility - The CapEx plan for the Ravenna facility is nearly complete, with a utilization rate over 90% [67] Question: M&A Pipeline - Management confirmed they are entering a due diligence process for a potential acquisition [69]

Financial Data and Key Metrics Changes - The company reported a record high order backlog of €1,800,000,000, an increase of 7.6% compared to €1,769,000,000 in the first quarter of the previous year [3] - Order intake grew by 1.5% to €271,000,000 from €267,000,000 in the previous year [3] - Revenues increased by 5% from €313,000,000 to €329,000,000, surpassing market growth expectations of approximately 4.2% [4][27] - EBITDA margin improved to 16% from 15.4% in the first quarter of the previous year [4][22] - Net profit grew by 7.7% [22] Business Line Data and Key Metrics Changes - The made-to-measure yacht segment saw a significant increase, now representing 49% of order intake, up from 37% last year [15] - The composite yacht segment remained flat, reflecting a softer U.S. season due to economic uncertainties [15] - The superyacht segment is performing well, with new orders filling slots until 2029 [16] Market Data and Key Metrics Changes - The U.S. market showed strong demand for made-to-measure yachts, while the composite yacht segment experienced weaker performance [15][36] - Europe performed negatively due to a one-off order in the previous year, but would have shown a 33% increase without that [17] - The Middle East faced tough comparisons due to a strong previous year, while APAC showed an increase of nearly €10,000,000 [18] Company Strategy and Development Direction - The company is focusing on expanding its made-to-measure segment and investing in new models, including revamping the Itama brand [11][20] - The business model emphasizes a balanced presence across 71 countries, mitigating risks from market fluctuations [20] - The company expects sustainable mid-range single-digit growth for 2025, with net revenues projected between €1,220,000,000 and €1,240,000,000 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. market recovering after a period of uncertainty due to elections and tariffs [39][66] - The overall market is showing signs of normalization, with increased inquiries and negotiations across all regions [66] - The company is adjusting its production approach to manage working capital more effectively [76] Other Important Information - The company plans to complete its CapEx plan with investments expected to be below €90,000,000 for 2025 [24][28] - The net financial position remains positive, with net cash of €50,000,000 at the end of the first quarter [25] Q&A Session Summary Question: Current U.S. Market Environment - Management discussed the strong demand for made-to-measure yachts and the weaker performance of composite yachts, attributing it to economic uncertainties and election-related market freezes [36][39] Question: Guidance on Order Intake Target for 2025 - Management expects order inflow to be slightly better than the previous year, with a focus on made-to-measure yachts [44] Question: Net Working Capital Expectations - Management anticipates normalization of working capital in the second quarter, aiming for a high single-digit ratio by year-end [45][76] Question: Current Trading in April and Early May - Management noted that April was affected by tariff news, but May showed a return to normal trading conditions across all regions [66] Question: Progress on Ravenna Facility - The CapEx plan for the Ravenna facility is nearly complete, with a utilization rate over 90% [68] Question: M&A Pipeline - Management confirmed they are entering a due diligence process for a potential acquisition [70]