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 [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 4.2% [5][29] - EBITDA reached €53,000,000 with a margin of 16% compared to 15.4% in the previous year [23] 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 [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 [15][36] - Europe experienced a decline due to a one-off order in Q1 2024, but would have shown a 33% increase without that [18] - The Americas reported a 150% increase in the made-to-measure segment [19] 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 [10][11] - The strategy includes maintaining a balanced presence across 71 countries to mitigate risks associated with market fluctuations [20] 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 [40] - The company expects sustainable mid-range single-digit growth for 2025, with 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 [25] - The net financial position remains positive with €55,000,000 in net cash [26] Q&A Session Summary Question: Current U.S. Market Environment - Management noted a strong demand for made-to-measure yachts, while the composite segment is facing challenges due to economic uncertainties [36][40] Question: Guidance on Order Intake for 2025 - The company expects order inflow to be slightly better than the previous year across all segments, with a conservative outlook for superyachts due to production capacity [44] 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, below 10% [45][72] Question: Current Trading in April and Early May - April was impacted by tariff news, but May showed a return to normal trading conditions across all regions [64] Question: Progress on Ravenna Facility - The CapEx plan for the Ravenna facility is nearly complete, with a utilization rate over 90% [66] Question: M&A Pipeline - The company is entering a due diligence process for a potential acquisition [67]

Core Insights - The company reported a strong financial performance for Q1 2025, with a record order volume of €1.7686 billion, reflecting a growth of 7.6% compared to March 31, 2024, and 6.3% compared to December 31, 2024 [2] Group 1: New Orders - New orders for Q1 2025 amounted to €270.6 million, representing an increase of approximately 1.5% from €266.6 million in Q1 2024, driven by strong performance in the custom yacht segment [1] - Cumulative orders as of March 31, 2025, reached €1.7686 billion, up 6.3% from €1.6639 billion on December 31, 2024, and up 7.6% from €1.6434 billion on March 31, 2024, supported by larger vessel orders received in the previous quarter [1] Group 2: Net Orders - The net cumulative orders as of March 31, 2025, stood at €839.6 million, a slight decrease of about 1.3% from €900 million on December 31, 2024, but an increase of 7.6% from €828.7 million on March 31, 2024 [1] Group 3: New Yacht Revenue - New yacht net revenue for Q1 2025 was €328.5 million, an increase of approximately 5.0% from €313 million in Q1 2024, attributed to a significant backlog of orders from 2023 and 2024, with a continued rise in the share of large yachts, custom yachts, and superyachts [1]

TODAY'S PRESENTERS Q1 2025 BUSINESS UPDATE unaudited data CHIEF FINANCIAL OFFICER MARCO ZAMMARCHI ALBERTO GALASSI MARGHERITA SACERDOTI CHIEF EXECUTIVE OFFICER TBD INVESTOR RELATIONS 2 TODAY'S AGENDA | 1 | Key Highlights | | --- | --- | | 2 | Business Dynamics | | 3 | Financial Results | | 4 | Final Remarks | | Q&A | | 3 Key Highlights 01 01 Key Highlights SOUND PERFORMANCE IN MAIN KPIs ORDER BACKLOG1 (€mln) ADJ EBITDA margin3 (%) Q1'24 16.0% Q1'25 +60bps 15.4% 1,643 1,769 Q1'24 Q1'25 +7.6% New- record high ...

Financial Performance - Revenue for 2024 reached €1,183,676 thousand, an increase of 5.4% compared to €1,123,483 thousand in 2023[27]. - Net income for 2024 was €63,193 thousand, down 26.8% from €86,355 thousand in 2023[28]. - Total assets increased to €1,844,847 thousand in 2024 from €1,791,099 thousand in 2023, reflecting a growth of 3.0%[32]. - Cash and cash equivalents decreased significantly to €115,809 thousand in 2024 from €290,057 thousand in 2023, a decline of 60.0%[30]. - Inventory rose to €412,794 thousand in 2024, up 36.7% from €301,927 thousand in 2023[30]. - Total liabilities increased to €915,485 thousand in 2024 from €892,325 thousand in 2023, representing a growth of 2.0%[32]. - The company reported a decrease in financial income to €15,711 thousand in 2024 from €21,120 thousand in 2023, a decline of 25.7%[27]. - The company’s operating expenses, including personnel costs, increased to €120,986 thousand in 2024 from €109,559 thousand in 2023, an increase of 10.5%[27]. - The company’s equity totalled €929,362 thousand in 2024, up from €898,774 thousand in 2023, indicating a growth of 3.4%[32]. - The company’s other income increased to €28,295 thousand in 2024 from €19,678 thousand in 2023, a rise of 43.9%[27]. - The company's pre-tax profit for 2024 was €100,688, a decrease of 4.5% compared to €105,262 in 2023[34]. - Operating cash flow for 2024 was negative at €(15,399), a significant decline from €66,621 in 2023[34]. - The company paid dividends of €32,833 in 2024, an increase of 64.8% compared to €19,903 in 2023[35]. Audit and Governance - The company’s financial statements have been audited in accordance with International Auditing Standards, reflecting a true and fair view of its financial position as of December 31, 2024[4]. - The audit identified key audit matters, including revenue recognition for shipbuilding and the recoverability of intangible assets[6]. - The company’s governance is responsible for overseeing the financial reporting process[21]. - The audit opinion does not cover other information included in the annual report, which is the responsibility of the management[18]. Revenue Recognition - The company recognized significant revenue from shipbuilding, with revenue being confirmed based on the percentage of completion method[9]. - Revenue from contract assets is recognized based on the percentage of completion method, reflecting the proportion of costs incurred to total estimated contract costs[47]. - Revenue from the sale of second-hand vessels and services is recognized at the point of transfer of control to the customer, aligning with the timing of ownership transfer[48]. - Government grants are recognized at fair value when it is reasonably assured that the grant will be received and all attached conditions will be complied with[50]. Cash Flow and Liquidity - The company experienced a net cash outflow from financing activities of €(65,718) in 2024, contrasting with an inflow of €33,454 in 2023[35]. - Total cash and cash equivalents at the end of 2024 decreased to €115,809 from €290,057 in 2023, reflecting a reduction of 60%[35]. - The company has a liquidity risk management strategy that includes weekly cash flow planning and monitoring, considering seasonal business factors[126]. Assets and Liabilities - The company’s financial assets totalled $363.1 million as of December 31, 2024, compared to $322.0 million in the previous year, representing a 12.5% increase[119]. - Trade receivables increased to $243.8 million in 2024 from $229.8 million in 2023, reflecting a growth of 6.5%[119]. - The total financial liabilities increased from €442,802 thousand in 2023 to €509,791 thousand in 2024, representing a growth of approximately 15.1%[122]. - The total future financial outflows for 2024 are projected to be €512,503 thousand, compared to €445,637 thousand in 2023, indicating an increase of approximately 15.0%[128]. Inventory Management - Inventory total as of December 31, 2024, reached €429,538,000, up from €301,927,000 in 2023, representing a significant increase of approximately 42.3%[200]. - The allowance for inventory write-downs for raw materials and components was adjusted to €6,491,000 as of December 31, 2024, indicating concerns over slow-moving and potentially aging inventory items[200]. Taxation - The total income tax expense for the year ended December 31, 2024, was 37,496,000 EUR, significantly higher than 18,907,000 EUR in 2023, indicating an increase of 97.3%[174]. - The effective tax rate for 2024 was impacted by higher taxable income and the absence of deferred tax assets recognized in 2023[175]. - The company expects no significant impact from potential top-up taxes related to the OECD's Pillar Two rules for the fiscal year 2024[180]. Risk Management - The company faces market and interest rate risks, particularly related to fluctuations in foreign exchange rates and market prices[129]. - The company has a limited credit risk associated with cash and cash equivalents, primarily held in euros with major national and international banks[120]. - The company’s financial risk management policies are in place to mitigate risks associated with financial instruments, enhancing overall financial stability[116]. Sustainability and Future Outlook - The company has committed to addressing climate-related risks and enhancing sustainability in its operations, as indicated in its recent disclosures[41]. - The acquisition of additional land for the Sant'Apollonia shipyard is expected to increase production capacity by 10%[194].

Financial Performance - The company reported a net revenue of €1,240,346 thousand for the year ending December 31, 2024, representing a 9.3% increase compared to €1,134,484 thousand in 2023[12]. - Adjusted EBITDA reached €190.0 million, up approximately 12.3% from €169.2 million for the year ending December 31, 2023[17]. - The net profit for the year was €88,160 thousand, an increase of about 5.6% from €83,503 thousand in the previous year[12]. - The group's total net revenue for the reporting period was €1,240.3 million, a 9.3% increase from €1,134.5 million for the year ending December 31, 2023[27]. - The group's pure profit increased by approximately 5.6% to €88.2 million, up from €83.5 million for the year ending December 31, 2023[27]. - The group's net revenue increased by approximately 9.3% from €1,134.5 million in 2023 to €1,240.3 million in 2024[44]. - The net revenue from composite yachts reached €558.7 million, a year-on-year increase of 13.6%, accounting for approximately 47.6% of the new yacht net revenue[47]. - The net revenue from custom yachts decreased by 7.5% to €407.2 million, representing about 34.7% of the new yacht net revenue[49]. - The net revenue from superyachts increased by 26.4% to €148.6 million, contributing approximately 12.7% to the new yacht net revenue[50]. Order Backlog and New Orders - The company has a backlog of orders amounting to approximately €1.7 billion as of December 31, 2024, which is an increase of about 11.6% compared to the previous year[17]. - New order volume for 2024 reached €1,139.3 million, a growth of 1.7% compared to €1,120.4 million in 2023, primarily due to strong performance in Europe and the Middle East[29]. - Cumulative orders reached a record high of €1,663.9 million as of December 31, 2024, an increase of approximately 11.6% from €1,491.27 million at the end of 2023[34]. - Cumulative order backlog, defined as total undelivered orders minus recognized revenue, reached a historical high of €900.0 million as of December 31, 2024, up 15.4% from €780.0 million on September 30, 2024[37]. - The new order volume for superyachts surged by 97.3% to €294.9 million in 2024, representing 25.9% of total new orders, compared to €149.5 million (13.3%) in 2023[30]. Product Development and Innovation - The company is focusing on R&D to innovate and expand its product offerings in the yacht manufacturing sector[18]. - New models of composite and custom yachts have been launched to attract new customers while retaining existing ones[20]. - The group plans to expand its product offerings and focus on high-growth segments to strengthen its market leadership in composite and custom yachts[25]. - The group plans to expand its custom product offerings to larger alloy yachts and develop new superyacht models under the Riva, Pershing, and Custom Line brands[43]. Sustainability and Governance - The group is committed to investing in innovation and sustainable materials to reduce environmental impact and enhance the yachting experience[25]. - The group has established a commitment to environmental, social, and governance (ESG) practices, becoming the first in the yacht industry to publish a sustainability report in 2019[24]. - The company is committed to ensuring that all strategic decisions are guided by a strict and purposeful framework regarding sustainability matters[136]. - The sustainability committee plays a strategic role in assisting the board in developing and implementing policies related to environmental, social, and governance issues[135]. - The company is required to prepare a sustainability report in accordance with the provisions of the Italian law on corporate sustainability reporting[134]. Financial Position and Assets - Total assets increased to €1,661,444 thousand in 2024 from €1,602,248 thousand in 2023[13]. - Current assets increased to €912.3 million, while current liabilities decreased to €701.7 million, resulting in a slight increase in net current assets to €210.6 million[75]. - The company's equity return rate decreased from 10.3% in 2023 to 10.2% in 2024, primarily due to an increase in average equity[95]. - The debt-to-equity ratio improved to 3.7% as of December 31, 2024, from 4.0% in 2023, indicating a strong financial position with low debt levels[99]. Employee and Operational Changes - As of December 31, 2024, the company had 2,118 employees, an increase from 1,971 employees as of December 31, 2023[117]. - Personnel costs rose by €14.2 million or 10.9% from €130.7 million to €144.9 million, attributed to an increase in average employee numbers to support business growth[65]. Corporate Governance - The board is responsible for leading the company towards sustainable success, aiming to create long-term value for shareholders while considering the interests of other stakeholders[131]. - The company has adopted a business plan for 2023-2027, which is aimed at achieving sustainable success[131]. - The board has approved the rules for the board and individual committees to ensure compliance with corporate governance codes[128]. - The board consists of 7 to 11 members, including a chairman and one or more vice-chairmen, as per the company's articles of association[174]. Shareholder Information - A dividend of €32,832,817.44 (equivalent to €0.097 per share) was paid to shareholders[113]. - The major shareholders include Shandong State-owned Assets Supervision and Administration Commission holding 37.541% and Valea Foundation holding 13.292% of the ordinary shares[147]. - The company has no restrictions on the transfer of shares, and there are no existing agreements among shareholders regarding the company's shares[145][152].

Financial Performance - The group's net revenue for the year ended December 31, 2024, was approximately €1,240.3 million, an increase of about 9.3% compared to €1,134.5 million for the same period in 2023[3]. - The group's profit for the year ended December 31, 2024, was approximately €88.2 million, up about 5.6% from €83.5 million in 2023[3]. - Adjusted EBITDA for the year ended December 31, 2024, was approximately €190.0 million, reflecting a 12.3% increase from €169.2 million in 2023[3]. - Total comprehensive income for the year ended December 31, 2024, was €91.4 million, compared to €81.2 million in 2023, marking an increase of approximately 12.2%[6]. - The company reported a basic and diluted earnings per share of €0.26 for the year ended December 31, 2024, compared to €0.25 in 2023[5]. - The total income tax expense for the year ending December 31, 2024, is €38,217,000, an increase from €20,519,000 in 2023, representing an 86% rise[51]. - Net profit rose to €88.2 million, a 5.6% increase from €83.5 million for the year ended December 31, 2023[84]. - Adjusted EBITDA for the year ending December 31, 2024, was €190.0 million, a 12.3% increase from €169.2 million for the previous year, with an adjusted EBITDA margin of 16.2%[139]. Revenue Breakdown - Total customer contract revenue for the year ended December 31, 2024, was €1,301,623 thousand, an increase from €1,196,352 thousand in 2023, representing a growth of 8.8%[28]. - Revenue from composite yachts amounted to €558,752 thousand in 2024, up from €491,751 thousand in 2023, indicating a growth of 13.6%[28]. - Revenue from custom yachts decreased to €407,166 thousand in 2024 from €440,265 thousand in 2023, a decline of 7.5%[28]. - Revenue from superyachts increased to €148,646 thousand in 2024, compared to €117,593 thousand in 2023, marking a growth of 26.4%[28]. - Revenue from second-hand yachts surged to €66,997 thousand in 2024, significantly up from €23,535 thousand in 2023, representing a growth of 184.5%[28]. - The total net revenue from other businesses was €58,785 thousand in 2024, down from €61,339 thousand in 2023, a decrease of 4.2%[28]. - New yacht net revenue totaled €1,173,349 thousand, up from €1,110,949 thousand in 2023, reflecting a growth of 5.6%[32]. - Composite yacht sales generated net revenue of €558.7 million, a year-on-year increase of 13.6%, accounting for 47.6% of total new yacht net revenue[117]. Cash Flow and Assets - Cash and cash equivalents at the end of 2024 were €155.7 million, down from €314.1 million at the end of 2023[12]. - The total assets as of December 31, 2024, amounted to €1,661.4 million, compared to €1,602.2 million in 2023, indicating a growth of approximately 3.7%[8]. - The total liabilities as of December 31, 2024, were €763.2 million, slightly up from €762.6 million in 2023[10]. - The operating cash flow for the year ended December 31, 2024, was €1.4 million, a significant decrease from €93.7 million in 2023[12]. - Trade receivables increased to €36,437,000 in 2024 from €22,427,000 in 2023, marking a 62% growth[60]. - The total amount of trade and other receivables rose to €74,574,000 in 2024, compared to €70,271,000 in 2023, indicating a 6% increase[60]. - The company reported a decrease in net revenue from custom yachts by 7.5% to €407.2 million, with new orders totaling €408.0 million during the reporting period[118]. Dividends and Shareholder Returns - The board proposed a final dividend of approximately €33,848,000 for the year ended December 31, 2024, equivalent to €0.10 per share, subject to shareholder approval[3]. - The company reported a proposed final dividend of €33,848,000, which translates to €0.10 per share, compared to €0.097 per share in 2023[156]. - Ferretti S.p.A. is committed to enhancing shareholder value, with plans to increase dividends by 12% in the upcoming fiscal year[174]. Market and Strategic Initiatives - The company is focused on expanding its market presence in Europe, the Middle East, and Africa, with net revenues of €593,477 thousand and €269,326 thousand respectively for 2024[32]. - The company plans to continue selling Riva brand luxury accessories as part of the Riva brand experience project in 2024[32]. - The company is investing in new product development, with a budget allocation of €30 million for innovative yacht designs and technologies[174]. - Ferretti S.p.A. plans to expand its market presence in the Asia-Pacific region, targeting a 25% increase in sales in that market by 2025[174]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a focus on companies in the luxury marine sector[174]. - The company has implemented new strategies to improve operational efficiency, aiming for a 5% reduction in production costs by the end of 2025[174]. Operational Metrics - The number of new yacht deliveries increased to 224 during the reporting period, up from 212 in the previous year[84]. - The new order volume for composite material yachts reached €432.4 million, accounting for approximately 38.0% of the total new orders, down from €527.2 million (47.1%) in 2023, reflecting an 18.0% decrease[89]. - The new order volume for custom yachts in 2024 was €408.0 million, representing about 35.8% of total new orders, a decline from €423.0 million (37.8%) in 2023, a decrease of 3.5%[90]. - The new order volume for superyachts surged to €294.9 million in 2024, making up 25.9% of total new orders, compared to €149.5 million (13.3%) in 2023, marking a significant increase of 97.3%[90]. - Total new order volume for 2024 was €1,139.3 million, a 1.7% increase from €1,120.4 million in 2023[93]. - Cumulative orders as of December 31, 2024, reached €1,663.9 million, an increase of approximately 11.6% from €1,491.2 million as of December 31, 2023[95]. - Cumulative net orders, defined as total undelivered orders minus recognized revenue, amounted to €900.0 million as of December 31, 2024, up 4.9% from €858.0 million at the end of 2023[100]. Corporate Governance and Compliance - The consolidated financial statements were prepared based on the going concern basis, confirming no significant uncertainties regarding the company's operations[23]. - The company has adhered to all applicable corporate governance codes during the reporting period, except for one specific provision[162]. - The audit committee reviewed the annual performance for the year ending December 31, 2024, and confirmed compliance with relevant accounting standards[164]. Future Outlook - Ferretti S.p.A. anticipates continued growth, projecting a revenue increase of 10% for the upcoming fiscal year 2025[174]. - The company confirmed its mid-term guidance and achieved its 2024 targets[113].

Financial Performance - The company reported a net revenue increase of approximately €611.0 million for new yachts, representing a 7.7% growth compared to the same period in 2023[16]. - Adjusted EBITDA reached approximately €96.7 million, up 15.9% from €83.4 million in the same period last year, with an EBITDA margin of 15.8%, an increase of 110 basis points[16]. - Net profit for the first half of 2024 was approximately €44.0 million, reflecting a 7.6% increase from €40.9 million in the previous year[16]. - The group recorded a net revenue of €646.4 million, an increase of 11.3% compared to €580.8 million for the six months ended June 30, 2023[24]. - The net revenue for the six months ended June 30, 2024, increased by approximately 11.3% to €646.4 million from €580.8 million for the same period in 2023[33]. - The company’s total comprehensive income for the period was €44,747 thousand, compared to €38,922 thousand in 2023, an increase of 14.3%[86]. - Basic and diluted earnings per share increased to €0.13 from €0.12 year-over-year[84]. Revenue Breakdown - Revenue from composite material yachts increased by 9.9% to approximately €265.5 million, while custom yachts revenue rose by 2.9% to €232.7 million[17]. - Revenue from superyachts surged by 27.3% to approximately €82.5 million[17]. - Other business segments generated net revenue of approximately €30.4 million, down 12.6% year-over-year[18]. - Revenue from the sale of composite yachts rose by approximately 9.9% to €265.5 million from €241.6 million in the same period last year[35]. - Revenue from the sale of custom yachts increased by approximately 2.9% to €232.7 million from €226.2 million in the previous year[35]. - Revenue from the sale of superyachts surged by approximately 27.3% to €82.5 million from €64.8 million in the same period last year[36]. Assets and Liabilities - Total assets as of June 30, 2024, were €1,644.2 million, a 2.6% increase from €1,602.2 million at the end of 2023[13]. - Total liabilities increased by 3.9% to €792.6 million from €762.6 million[13]. - Inventory increased by €57.2 million or 16.9% to €394.9 million, primarily due to increased yacht production to meet ongoing demand[47]. - Trade and other receivables decreased by €7.3 million or 10.4% to €63.0 million, mainly due to an increase in trade receivables and a decrease in other receivables[48]. - Cash and cash equivalents totaled €273,657,000 as of June 30, 2024, down from €314,109,000 as of December 31, 2023, a decrease of 12.9%[160]. Orders and Backlog - The company anticipates continued growth in the second half of 2024, supported by a backlog of orders totaling approximately €1.5 billion[16]. - As of June 30, 2024, the accumulated orders reached €1,495.8 million, an increase of approximately 6.0% compared to €1,410.5 million as of June 30, 2023[27]. - The accumulated orders for composite yachts amounted to €350.1 million, representing 23.4% of total accumulated orders, down from €365.1 million (25.9%) in the previous year[29]. - The accumulated orders for custom yachts reached €568.0 million, accounting for 38.0% of total accumulated orders, up from €546.2 million (38.7%) in the previous year[30]. - The accumulated orders for superyachts increased by 18.0% to €521.9 million, which is 34.9% of total accumulated orders, compared to €442.3 million (31.4%) in the previous year[31]. Operational Developments - The group aims to expand its product offerings in composite and custom yachts, focusing on segments with the highest growth and profit potential[21]. - The group plans to enhance its yacht brokerage, leasing, and management services, as well as after-sales and refit services, to further extend brand reach and licensing activities[21]. - The group has launched the first fully electric Riva yacht, El-Iseo, and aims to expand its range of "green" products across all major brands[19]. - The group is committed to achieving ISO 14001:2015 environmental certification for all shipyards to reduce energy consumption and emissions[20]. - The company announced the acquisition of an additional 30,000 square meters of land for €14 million, increasing the production area in Ravenna to approximately 100,000 square meters, enhancing production capacity by 10%[26]. Employee and Cost Management - Personnel costs increased by €9.3 million or approximately 14.3% to €74.4 million for the six months ended June 30, 2024, primarily due to an increase in average employee numbers to support business growth[40]. - Other operating expenses rose from approximately €3.0 million to about €5.9 million, mainly due to increased settlement agreements and re-invoicing costs[40]. - Provisions and impairments decreased by approximately €12.1 million to €12.8 million, attributed to sufficient provisions related to warranty vessels and business risks[41]. - Income tax expenses increased to €19.8 million from €14.7 million, mainly due to a significant increase in pre-tax profits and the absence of deferred tax assets from prior tax losses[41]. Sustainability and Innovation - The group emphasizes R&D investments to maintain its market leadership in luxury yacht manufacturing and to meet evolving customer preferences[25]. - The group recognizes hydrogen as a promising energy source for the maritime industry and is collaborating with Weichai Group to develop hydrogen engines for yachts[19]. - Continued investment in innovation, technology, and sustainable materials is planned to reduce environmental impact and provide responsible sailing experiences[63]. - The company is committed to communicating environmental, social, and governance factors to stakeholders, highlighting its focus on sustainable development[99]. Corporate Governance - The board is committed to high corporate governance standards and has adopted measures to strengthen internal control systems and ongoing professional training for directors[66]. - A strategy committee was established to support long-term value creation for shareholders while considering the interests of other stakeholders[70]. - The company has complied with the Hong Kong Listing Rules and has established an audit committee to review financial statements and ensure compliance with applicable accounting standards[68]. Financial Risk Management - The company’s credit risk is considered low due to its sales policy requiring payment of contract balances upon delivery of vessels[122]. - The company has a liquidity risk due to potential difficulties in meeting financial and trade obligations, monitored through weekly cash flow planning[113]. - The company continues to manage its financial risks through detailed analysis and monitoring of trade payables and borrowings[198].

Financial Performance - The group's net revenue for the six months ended June 30, 2024, was approximately €646.4 million, an increase of about 11.3% compared to €580.8 million in the same period of 2023[2] - The group's profit for the same period was approximately €44.0 million, reflecting an increase of about 7.6% from €40.9 million in the prior year[2] - Adjusted EBITDA for the six months ended June 30, 2024, was approximately €96.7 million, up about 15.9% from €83.4 million in the same period of 2023[2] - The total comprehensive income for the period was €44.7 million, compared to €38.9 million in the same period of 2023[6] - The company reported a pre-tax profit of €63,835 thousand for the six months ended June 30, 2024, compared to €55,512 thousand for the same period in 2023, reflecting an increase of 15%[9] - The adjusted earnings per share for the six months ended June 30, 2024, was €0.13, compared to €0.12 for the same period in 2023[43] - The net income increased by approximately 11.3% to €646.4 million for the six months ended June 30, 2024, compared to €580.8 million for the same period in 2023[56] Assets and Liabilities - As of June 30, 2024, total assets amounted to €1,644.2 million, an increase from €1,602.2 million as of December 31, 2023[8] - The company's equity attributable to shareholders was €850.6 million as of June 30, 2024, compared to €838.8 million at the end of 2023[8] - Trade receivables as of June 30, 2024, amounted to €25,424 thousand, up 13.4% from €22,427 thousand as of December 31, 2023[29] - Trade and other payables totaled €462,901 thousand as of June 30, 2024, an increase of 4.1% from €444,521 thousand at the end of 2023[37] - The allowance for doubtful accounts increased to €4,064 thousand as of June 30, 2024, from €3,496 thousand at the end of 2023, reflecting a rise in expected credit losses[30] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2024, was €58,615 thousand, a decrease from €62,076 thousand in the same period of 2023, representing a decline of 7.4%[9] - Total cash and cash equivalents at the end of June 30, 2024, were €273,657 thousand, down from €309,660 thousand at the end of June 30, 2023, indicating a decrease of 11.6%[10] - The company incurred a net cash outflow from investing activities of €58,651 thousand for the six months ended June 30, 2024, compared to €36,629 thousand in the same period of 2023, representing an increase of 60.2%[10] - The company’s financing activities resulted in a net cash outflow of €40,499 thousand for the six months ended June 30, 2024, compared to €31,533 thousand in the same period of 2023, reflecting an increase of 28.4%[10] Costs and Expenses - Personnel costs totaled €74,377,000 for the six months ended June 30, 2024, up from €65,088,000 in 2023, indicating an increase of 14.1%[24] - Other service costs reached €59,293,000 for the six months ended June 30, 2024, slightly up from €58,856,000 in 2023, showing a marginal increase of 0.7%[22] - The total amount of other operating expenses for the six months ended June 30, 2024, was €5,862,000, significantly higher than €2,953,000 in 2023, indicating a rise of 98.5%[25] - The contractor costs increased by approximately 28.1% to €131.7 million due to increased production activities to meet order growth[62] Strategic Developments - The company announced the launch of the second model of the INFYNITO yacht series, the INFYNITO 80, in the first quarter of 2024[2] - An agreement was signed to acquire an additional 30,000 square meters of land adjacent to the San Vito shipyard, increasing the total production area in Ravenna to approximately 100,000 square meters, enhancing production capacity by 10%[3] - The company participated in major yacht exhibitions worldwide, including the Düsseldorf Boat Show and the Miami International Boat Show in early 2024[3] - The company plans to establish a formal process to identify and assess climate-related risks and opportunities, aligning with the priorities recognized by the European Securities and Markets Authority[17] - The company aims to invest in innovation and sustainable materials to reduce environmental impact and enhance the sailing experience[49] Shareholder Returns - A dividend of €0.097 per share, totaling €32,832,817.44, was paid to shareholders on June 26, 2024[3] - The company did not issue any new shares during the six months ended June 30, 2024, and paid dividends amounting to €32,833 thousand, compared to €19,903 thousand in the same period of 2023, an increase of 64.9%[10] Market Position and Future Outlook - The company reported a significant increase in commission advances to €7,641 thousand as of June 30, 2024, compared to €5,177 thousand at the end of 2023[34] - The accumulated orders reached €1,495.8 million, an increase of approximately 6.0% from €1,410.5 million as of June 30, 2023[50] - The sales revenue from composite yachts increased by approximately 9.9% to €265.5 million for the six months ended June 30, 2024, compared to €241.6 million for the same period in 2023[58] - The sales revenue from superyachts surged by approximately 27.3% to €82.5 million for the six months ended June 30, 2024, compared to €64.8 million for the same period in 2023[59] - The company is focused on innovation in new product development and technology, aiming to strengthen its competitive position in the market[92]

Financial Performance - Total revenue for the year ended December 31, 2023, was €1,123,483 thousand, an increase of 16.1% compared to €967,753 thousand in 2022[11]. - Net income for 2023 was €86,355 thousand, representing a 64.8% increase from €52,395 thousand in 2022[12]. - The company's total assets increased to €1,791,099 thousand in 2023, up from €1,565,404 thousand in 2022, reflecting a growth of 14.4%[14]. - The company's financial income increased to €21,120 thousand in 2023, up from €11,268 thousand in 2022, a growth of 87.5%[11]. - Operating cash flow for 2023 was €66,621 thousand, a decrease of 62.3% compared to €176,533 thousand in 2022[15]. - The company reported a pre-tax profit of €105,262 thousand for 2023, up 84.3% from €57,146 thousand in 2022[15]. - The company’s net income for 2023 was €86,355 thousand, compared to €52,395 thousand in 2022, reflecting a 64.8% increase[17]. - The company’s total equity increased to €898,774 thousand by the end of 2023, up from €832,347 thousand at the end of 2022[17]. Revenue Recognition - The company recognizes revenue from contracts only when specific criteria are met, including customer approval and identifiable payment terms[22]. - Revenue from construction contracts is recognized based on the percentage of completion method, reflecting the proportion of costs incurred to total estimated costs[23]. - The company confirms revenue from the sale of goods and services at the point of transfer of control to the customer, aligning with the timing of ownership transfer[23]. - Government grants are recognized at fair value when it is reasonably assured that the grant will be received and all conditions will be met[24]. - Interest income is recognized using the effective interest method, based on the estimated future cash flows discounted to the net carrying amount of financial assets[25]. Assets and Liabilities - The company's total liabilities increased to €892,325 thousand in 2023, compared to €733,057 thousand in 2022, reflecting a growth of 21.7%[14]. - The company reported a significant increase in contract assets, which rose to €189,493 thousand in 2023 from €136,660 thousand in 2022, an increase of 38.5%[13]. - Total financial liabilities reached €442,802 million in 2023, up from €387,683 million in 2022, indicating an increase of approximately 14.2%[63]. - Lease liabilities rose to €17,667 million in 2023 compared to €17,102 million in 2022, marking an increase of about 3.3%[63]. - The company’s total current assets with related parties amounted to €46,571 million as of December 31, 2023[194]. Audit and Compliance - The financial statements were audited in accordance with International Auditing Standards, ensuring a true and fair view of the company's financial position as of December 31, 2023[3]. - The audit identified key audit matters, including the complexity of estimating costs related to shipbuilding projects, which involves significant judgment[6]. - The management's assessment of the recoverable amount of cash-generating units related to intangible assets was deemed a critical audit matter due to the complexity of assumptions involved[7]. - The company is responsible for ensuring that the financial statements are free from material misstatement due to fraud or error, and for evaluating the appropriateness of the going concern assumption[8]. Inventory and Costs - Inventory levels rose significantly to €301,927 thousand in 2023, compared to €176,590 thousand in 2022, marking an increase of 70.9%[13]. - The total personnel costs for the year ended December 31, 2023, amounted to €109,559,000, a decrease from €112,902,000 in 2022, reflecting a reduction of approximately 3.1%[99]. - The company reported a total of €95,484,000 in other service costs for 2023, slightly increasing from €93,225,000 in 2022, indicating a growth of about 2.4%[95]. - The total rental and leasing expenses for 2023 were €11,754,000, up from €9,662,000 in 2022, representing an increase of approximately 21.6%[98]. Investments and Capital Expenditures - The company made capital expenditures of €115,714,000 during the year, contributing to the increase in asset values[136]. - The company has a commitment of €385,000 for undrawn revolving credit facilities as of December 31, 2023[132]. - The company is focusing on expanding its market presence and enhancing product offerings through strategic investments and partnerships[135]. Taxation and Deferred Tax - Income tax expense for the year ended December 31, 2023, was €18,907,000, significantly higher than €4,752,000 in 2022, indicating a rise of 297.5%[110]. - The company anticipates future taxable profits to recover previously unrecognized deferred tax assets based on improved earnings forecasts[155]. - The deferred tax assets decreased to €7,396,000 in 2023 from €17,299,000 in 2022, indicating a reduction of approximately 57.3%[154]. Employee Benefits and Provisions - The company has provisions for employee benefits and severance payments, with employee benefit provisions at €5,620 as of December 31, 2023[173]. - The company’s product warranty provisions rose to €33,831,000 as of December 31, 2023, up from €26,201,000 in 2022, representing an increase of approximately 29.2%[163]. - The actuarial loss recognized in 2023 was €39,000, which is a significant change from the actuarial gain of €218,000 in 2022[177]. Financial Risks and Management - The company faces various financial risks related to financial instruments, which are managed according to established policies[59]. - The company continues to monitor cash flow on a monthly basis, considering seasonal factors in its business operations[69]. - The company is actively managing its legal and tax liabilities, with a focus on potential settlements to mitigate financial impact[165].

Financial Performance - The company achieved a net revenue of €1,134.5 million in 2023, representing a growth of approximately 10.1% compared to 2022[22]. - Adjusted EBITDA reached €169.2 million, an increase of about 20.9% from €140.0 million in 2022, with an EBITDA margin of 15.2%, up 110 basis points[22]. - The net profit for the year was €83.5 million, a rise of approximately 38% from €60.5 million in the previous year[22]. - The total new order volume for the period reached €1,120.4 million, consistent with the new order volume for the year ended December 31, 2022[31]. - The company's net revenue increased by approximately 10.1% to €1,134.5 million in 2023, up from €1,030.1 million in 2022[46]. - The company's other income rose to €22,200 thousand, an increase of €6,200 thousand or 38.8% from €16,000 thousand in the previous year[54]. - The company's net profit for the year increased by €23,000 thousand or approximately 38% to €83,500 thousand, with a net profit margin rising from 5.9% to 7.4%[64]. Order and Backlog - The total order backlog as of December 31, 2023, was approximately €1.5 billion, an increase of about 15.1% from the previous year[22]. - Cumulative orders as of December 31, 2023, reached €1,491.1 million, a 15.1% increase from €1,295.6 million as of December 31, 2022[38]. - The composite yacht segment saw new order volume of €527.2 million, accounting for 47.1% of total new orders in 2023, up from 39.8% in 2022[34]. - The custom yacht segment's new order volume decreased by 14.6% to €423.0 million, representing 37.8% of total new orders in 2023[34]. - The superyacht segment experienced a decline of 26.9% in new order volume to €149.5 million, making up 13.3% of total new orders[34]. Product Segments - The net revenue from composite material yachts reached €491.8 million, a year-on-year increase of 19.3%, accounting for approximately 44.3% of the total net revenue from new yachts during the reporting period[24]. - The net revenue from custom-built yachts increased by 1.7% to €440.3 million, with new orders amounting to €423.0 million during the reporting period[24]. - The net revenue from superyachts rose by 23.3% to €117.6 million, with new orders totaling €149.5 million, driven by strong performance in flagship semi-series models[24]. - The other business segment generated net revenue of approximately €61.3 million, reflecting a year-on-year growth of about 10.3%, primarily from the Wally sailing division[25]. Research and Development - The company emphasized its commitment to R&D to maintain its market leadership in the luxury yacht industry[23]. - The company aims to invest in innovation and sustainable materials to reduce environmental impact and enhance the sailing experience[42]. - The company is committed to investing in high-value activities to support future growth and product portfolio expansion[29]. Sustainability and Environmental Initiatives - The company has initiated steps to achieve ISO 14001:2015 environmental certification for all shipyards, aiming to reduce energy consumption and emissions[28]. - The company is committed to aligning its sustainability policies with international best practices and market positioning[171]. - The Sustainability Committee is tasked with monitoring the implementation of sustainability policies and reporting to the board[171]. Corporate Governance - The company has established a sustainability committee to assist the board in drafting environmental, social, and governance strategies and policies[93]. - The board consists of 7 to 11 members, including a chairman and one or more vice-chairmen, ensuring compliance with independence requirements[114]. - The company has adopted a shareholder communication policy as per the corporate governance code[93]. - The board is responsible for approving significant transactions that may impact the company's strategy or financial condition[111]. Financial Position and Assets - Current assets increased to €930.2 million in 2023 from €818.7 million in 2022[20]. - Total assets rose to €1,602.2 million in 2023, compared to €1,407.6 million in 2022[20]. - The company's net working capital as of December 31, 2023, was negative €29.7 million, indicating an increase compared to the previous year, which supports upcoming deliveries in Europe and the Middle East[73]. Employment and Workforce - As of December 31, 2023, the company employed 1,971 staff, an increase from 1,835 staff as of December 31, 2022[87]. - The gender ratio among the company's 1,971 employees is 85% male and 15% female, reflecting the company's commitment to gender diversity[125]. Committees and Board Structure - The board has established various committees, including a monitoring, risk, and related party committee, a remuneration committee, and a nomination committee, to oversee specific governance issues[162]. - The board consists of nine directors, including three independent directors, who meet the independence requirements as per the Corporate Governance Code and Listing Rules[154]. - The board has established a strategy committee as of February 19, 2024, to support long-term value creation for shareholders and stakeholders[175]. Risk Management and Internal Controls - The company has implemented an internal control and risk management system (IARMS) to identify, measure, manage, and monitor key risks, aligning with strategic objectives[194]. - The internal control system aims to ensure the reliability, accuracy, and timeliness of financial data during preparation and publication[196]. - The company actively evaluates the appropriateness and effectiveness of its internal control and risk management systems[195].