Sanlorenzo Spa

Good morning. Good day to everybody. Good afternoon to everybody. Thank you for being here with us. I think I will pass the floor to Attilio Bruzzese, our CFO, who will introduce the semester, the H125 numbers. Thank you, Attilio.

Perfect. Thank you, Massimo. And welcome to everyone. As usual, we can start from the highlights where we can analyze. So the first half that shows San Lorenzo Group is continuing the path of expansion with a growth in line with our guidance 2025, thanks to the unique business model moving behind and expanding worldwide economy situation and the global uncertainty and monitoring constantly the evolution, of course. So we can analyze figures starting from net revenue in New York. grown 9.4% year-on-year at €454.1 million, again led by the strong performance of Superior Division and the contribution from Nautos One. Great result of Americas and Europe regions. EBITDA increased 8.5% year-on-year at €80.5 million and EBITDA margin is 17.7% with not relevant dilution from the consolidation of NATO's one. EBIT at €59.9 million increased 3.2% year-on-year, considering also the incidence of Nautus One consolidation and related investments. And the Group Net Profit grew up 7% year-on-year, with a total amount of €36.6 million, with a double-digit margin of 10.3% on net revenue in New York. Then organic investment at €16.2 million, especially related to new industrial capacity and new product development, with a reduced incidence on net revenue in New York at 3.6% compared to 4.9 percent to the previous year. And then the net financial position at 8.3 million euro net debt end of June 2025 with a cash generation of 19.8 million euro from last March after dividends paid for 34.7 million euro and Q2 buyback program of 7.4 million euro. and taking advantage of the delivery season provided in Q2, especially in Europe. Now, we can analyze figures more in detail, starting from the top line, which continues with a sustainable growth at 9.4% year-on-year at the net revenue New York's level, And this evolution is consistent with the 2025 guidance. Superior divisions performance remains strong, plus 10.2%, driven by the steel and inkspace lines. also considering the innovative contents and represent approximately 30% of the total revenues. And then, yachts division generated about 15% of the total revenue, Dumb compared the previous H1 2024, minus 6.6%, mainly related to the market segment below 100 feet and with good resilience in the larger models above 13 meters. Blue Game generated 43.6 million euro revenues, minus 10.9% year on year, confirming strong resilience in the particularly challenging segment of the market of yachts below 24 meters. Thanks to the distinctive features Brand and well-recognized positioning has been able to limit the slowdown and preserve profitability, despite aggressive pricing policy in the market segment. Then now to Swan, the Vision reported net revenue in lots of 47.5 million euro in line with the expectation and with the planned integration and business development process. In terms of breakdown by geography, you can see America's region growth of plus 38.6% year on year. The increase is mainly related to the previous year order intake and benefit from a particularly favorable comparison effect compared to the first half 2024. Americas is 21% of total revenue, which is less than 6% linked to US customers, and below 4% related to yachts up to 30 meters, the segment of products more affected by tariff. Europe shows a solid performance and grew up 15.4% year on year, considering the wide, loyal, and resilient customer club. And the APAC region recorded a slight increase, plus 5.8%, showing a first positive signal of dynamism, while Middle East decreased particularly minus 41.3% in reason of solid delivery concentrated in Q4 2024. Then in terms of profitability, the ABDA grew up 8.5% year on year and reached the 17.7% on net revenue in New York. Considering the marginality continued expansion X1 and the not relevant margin dilution about 20 basis points, after consolidation impact for the full H1 2025 of Nautilus 1. We can remember that the consolidation started in August 2024. Including this effect remain a steady increase in operating profitability. Demonstrating the group ability to continue to increase in average sales price, especially for a more favorable mix with the larger yachts and executing successful projects. The EBIT increased 3.2% year on year and the EBIT margin decreased at 13.2% considering the higher DNA incidence of Nautilus One due to smaller scale and legacy investments. The group net profit grew up 7% at 10.3% on net revenue in New York with a positive effect of tax benefits provided by Italian tax authority and despite higher financial costs from acquisition financing. Now about the backlog, the evolution of the top line we know is driven by this solid backlog that reached the level of over 1.4 million euro last June 2025. That confirms a dynamic market for the group especially in the segment above 30 meters. and very significant is order intake of H1 2025 at 420 million euro plus 30% compared with the first half of 2024 and Q2 2025 order intake was 242 million euro with a strong increase of order collection plus 56% year on year compared with the order intake of 155 million euro of H1 2024. Furthermore, backlog is very consistent and high quality in consideration that it is sold 93% to final customer was 89 the previous q1 2025 thanks to the unique san lorenzo business model the solid backlog gives to the group estrogen visibility for the future in terms of the result with a portion of 771 million euro related to 2025 representing around 78 percent coverage of net revenue in new yachts of the midpoint guidance 2025, consistent with the coverage of 83% in the first half of 2024. And in addition, 668 million Euro related to 2025, 2026 and behind. So analyzing more in detail, the backlog by division waiting list are well filled in all business units and with sole delivery up to 2026 for Blue Game and 2028 and 2029 respectively for yacht and superyacht division. And also for Nautilus I division, the sold delivery are now up to 2028. All division have high percentage of yacht sold to final customer, 100% for superyacht and for superyacht. Swan Division, 85% for Yacht Division and 62% for Blue Game Division, remarkable indicator considering the market segment below 24 meters. Again, about the backlog, The net backlog, almost 1 billion euro, end of June 2025, after the normalization phase of the order intake, divisibility level remain high and is not particularly affected by current cyclicality in the market segment below 24 meters. In fact, after the sessional post-pandemic phase, the historical net backlog quarterly evolution shows for June 2025 a coverage of one time the expected full year 2025 revenues. This level is in line with June 2024 coverage, one time as well, and above the normal pre-COVID coverage level in the range between 0.8 and 0.9 times. About CAPEX, continue the organic investment program Debt-rich amount of 16.2 million euro end of June 2025, 89% related to the expansion of the group in new industrial capacity, 7 million, and product development, 7.4 million, dedicated to all divisions. The incidence of organic capex on net revenue in New York is decreased to 3.6%, was 4.9% in H1 2024. Overall net investment are 17 million euro, considering change of perimeter of 0.8 million euro referred to Arturo Foresti acquisition to support the production in electrical systems industry. Now, about the net financial position, the evolution of the net working capital and net financial position we know are strictly linked. In particular, the net working capital end of June 2025 was 86.6 million euro positive, especially considering the inventory buildup due to the recent implementation of direct distribution in APAC region. and to the expansion of the direct distribution in Europe with San Lorenzo Med and Americas. In any case, the net working capital shows a partial reabsorption after Q1 2025 of 33 million euro despite the slow market dynamics for products below 24 meters and for a lower impact for products below 30 meters. Therefore, the net debt end of June 2025 of 8.3 million euro reflects a direct distribution expansion affecting the networking capital as indicated before. And in addition, extraordinary cash out of 11.1 million euro related to the buyback story program of which 7.4 million euro in Q2, and to the acquisition of 60% Arturo Foresti, a strategic supplier for electrical systems for €0.8 million then. So the net financial position before the extraordinary cash out for Buyback and Fururo Foresti acquisition was 3.6 million euro net cash. The reported net debt end of June 2025 includes also IFRS 16 liability for 26.5 million euro. Then considering the solid H1 2025 result we have just seen and given the high visibility for the backlog, the 2025 guidance is confirmed without change. So it's confirmed once again the resiliency of San Lorenzo business model and the strength of the brand, even in a global environmental characterized by trade tariff uncertainty and different macroeconomic pressure that, of course, and in any case, we will monitor constantly. So that's all for the financial result. And I leave the floor to Massimo to continue with the business update.

Well, I think we have shortly some message related to the next week. Next week, there will be the Cannes Boat Show. It's the starting of the season of the boat show. For 26, we have three fantastic new models, the SL110 with the asymmetric design, the S6120, and the biggest boat build in the yacht division, which is the SD132. Sorry. On top of the San Lorenzo new product we will introduce the blue game f which is foil 45 this is a totally new line from blue game it will be in the future three model 35 45 and 55 there are characterized by the multi-hull design with foil from the experience we had in 2024 for the construction of the tender for the American Scout. Joan is introducing to the market the 51 Performance Cruising. As you can see in the picture, it's a beauty. And later on in end of September in Monaco, we will introduce the 40 meter, the Maxxis 128 in carbon fiber. The first unit has been delivered in July. and will be at the Monaco show. So we think it's a very exciting new product introduction with a lot of innovation, design, style, beauty, which is really exciting. a strong point from the group in order to gain sales in september in europe and in october in america with the four-loaded boat show next here we have the last image of of the new division that we are starting, which is this one, Alloy 44, will be a new line of Maxi in aluminum. The boat will be built in Holland for the metal, Haldecken superstructure to the top quality Dutch supplier. And then will be the kit of alloy or aluminum will be moved down to viareggio italy in order to do the fitting out so this is a completely new world is a completely new business in relation to now to juan which we think will had an extra 50 60 percent of business for the next three year plan uh the first unit is sold we do consider the market of the large maxi growing and we do expect a lot of a lot of business and a lot of help in the turning the the nautos one company to a higher profitability as we already declared and promised to you uh as you know probably from the press uh the third of june we have been launching casa san lorenzo in venice which is a hub for culture and hearts related to san lorenzo group You see some pictures. The house is exactly in front of the Basilica of Health, Casa della Salute, Basilica Chiesa della Salute in Venice. And Monday the 1st, we... had the christening of the first event which is breathtaking is a picture taken by Fabrizio Ferri using actors and actress it was The launching was on the same week of the Festival del Cinema, the film festival in Venice. So Fabrizio Ferri, with a collaboration of very important and known actors and artists, is taking pictures of them, covered by the plastic that has been taken from the ocean and as a testimony of the risk for the ocean to die. It is quite an interesting cultural heart event, which is connected, strongly connected to sustainability, is connected to the sea, to the ocean, which is of course the fluid where our product goes with our customer. We very much like the project because it is in a totally black room and the pictures, as you can see here, are very emotional and you really got the feeling that we have to do something important for the future of your share. We like that starting on the 1st of September, because on the same days, as you all know, there was the 27 countries, let's call them not Western countries, representing five billions of people in one third of the product of the world and so we think that to testimony in a cultural event in the Casa San Lorenzo our care and attention to the plastic in the sea it was a kind of a nice sign, a nice showing that the Western country still has a lot to do and a lot to say in this world. We like that and we got quite important help from the journalists that were attending the launching of this event. The event will be on until the 23 of November for 2.5 months. The 23 of November will be the last day of the Biennale of Architecture, and then we will end this first event. So anybody moving or passing through Venice, we will be kindly invited to see. Last message is, as you know, I bought the company in 2005, so 2025 was the 20th anniversary, 20 years anniversary, and considering the acquisition of Nautos One. Simpson Marine during 2024, we thought that was nice to make a party dedicated to our employee. We had more than 1000 employees coming from all over the world. in present to Florence for this event. It was a kind of attempt to integrate the people from Finland, the people from Hong Kong, Singapore, Malaysia, Vietnam, the people that has joined our group one year ago. It was quite a big success and we're pretty happy, much happy of the event and the result and the comment of our employees. Two words about the sustainability commitment. As you remember, our road to 2030. We just summarize quickly. In 2021, we started the strategic collaboration with Siemens, with MTU, MIN, et cetera. Then we launched the first 50 meter equipped with the methanol hydrogen fuel cell system. Probably most of you have been on board and saw the functioning of that equipment. The same here in 2024, there was the tender of the American Magic American Cup on hydrogen foil up to 50 knots of speed. So we did all that as promised. And then the next example, the next step was the B fuel engine yachts is the 50 meter X space. On this matter, we are moving the project forward from 2027-28 to 2029-30 because we do think that recently, in the last six months, the Western world has been reducing the effort and the push towards sustainability. So the boat and the technology is there, is already on paper. We have the agreement with MAN engine. They produced already the B fuel engine. The problem, in our opinion, will be in delaying the logistic and the distribution of the green methanol. And therefore, we think that is wise to postpone 18-24 months the project to the 29-30 years which is a moment where probably we will have a better distribution of methanol and our customer will enjoy the possibility to use these new very sustainable yachts. Top Employee Italy 2025. We got the certification. It's the first company in our sector to become certified top employer. We think that this will attract and retain the best talent from the yachting industry and beyond. We have been investing 15,000 hours for reskilling and upskilling our people. Remember that two-thirds of the San Lorenzo people are on the Gen Z and Millennials section, so pretty much young. I think it's... is the end product just summarizing that we extend and diversify the product range there is a lot of innovation a lot of technology just to remember the 50 meter with the hidden engine room we move the engine room to the under lower back opening a lot of more space to the use of the customers The network, we completed the direct distribution with San Lorenzo Med and the new office opening. And by the 30th of October, we will do the christening of the new office in Pier 66 in Fort Lauderdale for San Lorenzo of America and from the side of Asia Pacific. As you saw from the presentation of Attilio, the market in Asia-Pacific is growing again after a six-month stop in 2024. For the top employees, the people we already said, and from the brand situation, The brand work towards San Lorenzo is one blue game and never stop. And I would say that we like the idea to have invested in the marketing opportunity for the 20 years anniversary dedicated to our employee in order to try to have all the new people joining the group to meet each other in Italy. And of course, the day after that party, they came in the shipyard, so they had the opportunity to see San Lorenzo and Blue Game very close. They came physically on board of our yacht, on board of our shipyard. That's it, I think we give you the floor for Q&A, and we are all available for reply.