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.

Yes, good afternoon. Oriana Cardani, Intesa San Paolo. Thank you for taking my questions. The first one regards the very good order intake in the second quarter. Can you give us the split between Swan and San Lorenzo and tell us the weight of APAC and America in this order intake? My second question is on the European boat shows. Can you give us a feeling for these events, considering the new models, considering the contest, the trading environment? Do you think is it possible to exceed last year's results in terms of order intake. And the full question is on the evolution on net debt. Do you believe that in the third quarter, that the third quarter could close with net debt slightly positive, sorry, net cash slightly positive? Thank you.

Thank you very much. I reply to your second question, and then I leave the first and the third question to Attilio even, so that they can also search the perfect number, the right number to tell you. Well, regarding the boat show, this, I think, is... Very important. It is, of course, unknown what will be the boat show result in the next three weeks. What I can say that the last week of August and the first week of September has been pretty much good. There is a lot of contacts with our customer. There is a lot of appointments already organized for the boat show next week. I spoke with some of the competitors and they have the same feeling. The feeling is that probably this is... It's not sure, of course, but probably the feeling of uncertainty, which we have been unfortunately living and feeling for the first and second quarter of 2025 due to the new geopolitical situation. Probably, as always, the human being is getting used to. to good things and to bad things. So it is the feeling we have from the last week of August and the first week of September in preparation of the boat show is that people is not considering the uncertainty coming from the geopolitics as much as they used to do before summer. It seems that... we are adapting to the new world situation. If that is true, and I don't know yet, I can tell you in three weeks' time, but if that is true, we do expect quite a positive boat show. I cannot say better than last year because last year was particularly good. But as you can see, we have almost a 30% increase in order intake in respect of the H124. That means that H124 was pretty down. So probably the third quarter, so the September boat show of 24 was extremely good because probably the... the first semester was not that good remember always when you evaluate our company we built 70 san lorenzo 70 san lorenzo splitted by four quarters means 18 boats So you can understand that out of 18 boats, if two or three boats will move from one quarter to the other, it's really changing a lot. But it doesn't mean anything. I mean, for us to get the order on the 30 of September or the 5th of October doesn't change anything. But from your point of view, it seems that it's giving you a lot of messages. It's not like that. When a company is building 70 yachts for 800 million, which is approximately 12 million on the average price, two, three yachts more or less is really expensive. Not a question. I remember you to take that in consideration because that will help you to have a better and more precise feeling and perception of the company. I hope that I managed to reply to you. Then I give the floor to the CFO regarding the order intake numbers.

Yeah. Oriana considered that the order intake H1 2025 of 420 million is composed for 373 million for the San Lorenzo perimeter and for around 47 million for Aswan. So the increase we have just seen in order intake at group level of around 30% is more than 15% if we consider the perimeter San Lorenzo before Schwan acquisition. Then about the depth of the evolution, Oriana, no, we do not consider to have a reabsorption of the networking capital in Q3 2025 as anticipated also last year. video conference, we indicated that considering the uncertainty for both geopolitical and tariff issues, it will be necessary to have H2 2025 and also probably H1 2026. We are monitoring the situation, considering the issue just mentioned. We are considering also the feedback that we can receive from the boat shows of September in Europe and in October from the U.S. And then we consider this kind of evolution for the next two H1N1 to 2025, H1 at 2026. And in any case, we have to consider that we expanded the direct distribution. And then we have to consider to have the good volumes to have a good distribution, especially in APAC region. in a part of Europe and in US.

OK. Thank you. Thank you very much.

You're welcome. You're welcome.

I see there is a raised hand from Michael. Michael, please go ahead with the question.

Michael, you are still there. We don't hear anything. Can you? Sorry, can you hear me? Yes, now we can hear you.

Yeah, yeah. Sorry about that. I was muted. It's Michael Nijelski from Merchant Capital. Congrats on a very good quarter. Two questions for me. The first one, which is linked to the net debt question that was just asked, is on working capital. Can you give us a sense of where working capital is going to end up? at the end of 2025? Will it go back into negative territory as it does most of the years? And the second question is on the buybacks. Can you give us an update here? I mean, the share price is starting to come back a bit, but it's still trading on on what I think is very low valuation, hence the appeal of buying back shares. Can you give us an update on your thoughts here? Thank you.

I will say that we cannot say if the net working capital will go back to negative because it is part of many components of numbers. But please kindly ask you to remember that buying... San Lorenzo, sorry, Simpson Marine in Asia Pacific and going direct, we enjoy the profit of the company in the habitat, but the total amount of boat purchased by the ex-dealer Today, part of the consolidation is not helping regarding the net working capital and net financial position because the boat can be considered sold only when they are sold to the final customer at the end of the process. When Simpson Marine was a dealer owned by Mr. Mike Simpson, we were selling the boat in stock to them and we could book that as a sales. We could get the deposit and so forth. So what I'm saying, when you evaluate the net working capital, the net financial position, After the two acquisitions of Juan and Simpson Marine, please always consider that there is a different perimeter. There is a different way of doing business. The same is happening to the San Lorenzo Med. We have been canceling a dealer in France. And we decided to go direct, opening the new office in Cannes. We go direct with a new office in Palma for Spain and in Monaco. So every time we do that step, we improve and increase the EBITDA, the profitability, but then we make a step back in respect of the cash, in respect of the networking capital and so forth. So this is something that... We ask you to make an effort to compare Apple with Apple. Otherwise, it is difficult to compare today's picture, which is showing in our screen, with the picture of 2023 before the two acquisitions. This is always quite important to take into consideration. Remember it. Okay, thank you. Ivan is asking about the buyback program.

Of course, we're monitoring the situation, also considering the fundamental numbers, the results that we have seen today, and we can... after the monitoring, checking and defining if necessary to have more interventions on the market and buying new shares. But we are thinking that in this situation, with this result we have just seen, we can have a good evolution of the share.

Ivan, do you have anything to add?

Yes, just a reminder that we have authorized up to 10% of the share capital in the buyback. And we agree with you, Michael, that the current price is still an opportunity, definitely. So we are going to continue, meaning that on top of the dividend policy, and you've seen in May, in the last quarter, we have distributed around 35 million, which is one euro per share. Any excess cash, we keep thinking that the best way to allocate it is definitely share buyback.

If I may add something regarding the evaluation you see from the guidance. Matteo, I need this. Okay, excellent possibility. You see from the guidance, when we did the IPO, there was 27 million of net profit. And the value of the company at the IPO was December 19. Everybody knows it was not the best period for the IPO. We had 14 times the net profit. Then after five important years through COVID, through the war, you can see that we double, more than double the net revenue, but we make four times the net profit. And today, the value of the stock is approximately 10.5 to 11 times that. the net profit. So we do really think that the company is underestimated in this moment because we have been very solid in in delivering the numbers we have been promising. We did it for five and next probably six years, for 2025, through any possible problems like COVID in 2020, the war in Ukraine and in Gaza in 2023 and 2024, the geopolitic problem for the first semester of 25. So please consider that. This is something that in our view, it's something that we should expect in the future, some better multiple related to the net profit or whatever related to the EBITDA margin or the EBITDA as well.

Yeah, I would agree with you. Thank you for the answers.

Thank you very much.

It appears we have no more questions. So I leave it to you, Mr. Perotti, for closing remarks.

I think we wait 30 seconds if there is anybody thinking to any question. then what I have to say that I'm very happy that there are not many questions, because that means that we gave you the number you were expecting or hoping, that the summary of Atelier was very complete, and thank you very much i know from our people here that there are 94 people in connection which i think is the highest number since i remember our meetings so thank you very much for the presence for the attendance and see you very soon for the next for the next quarter whoever is coming to the boat shows can genova monaco please come and we take a coffee and we may explain you something more in more detail ciao to everybody thank you thank you