Sanlorenzo Spa

Welcome to everybody. Thank you to be here. It is proud for us to have you in Casa San Lorenzo. We meet during the year to the various capital days and we We tell you about Casa San Lorenzo, but something is to show you a picture, something else is to show you the place. And I hope that you enjoy it. Now, let's start. I... Okay, okay. I'd like to stop for one minute to the team. I started, as you know, working in the yacht industry when I was 23, 43 years ago, and I learned that this industry is a delicate, difficult industry because we work without 6000 engineers like Mercedes to a product that has to be technically very sophisticated from the artisan point of view perfect and our customers are the best men in the world because they became very rich therefore the team working on this business has to be special. And I think that the team we put together in these years is special. Most of them you know. I would concentrate on Gian Guido Girotti, which is in the middle, because he's the last one coming to join us. He will present himself. I have to thank a lot Tommaso, which is with us since 18 years. And I believe that doing such a difficult job, it is important to be in the business for many years and be expert of this business. Tommaso is with us since 18 years. but Gian Guido will be with us in a few weeks but he's in the business for more than 20 years. Pierre is the chief corporate official, he's a very young guy with a lot of energy and I would say ideas being young is bringing a lot of energy and new ideas in the company. The CFO is a guarantee because he's working with me since 20 years and he's a guy of the number, but he knows very well the number of the yachting, which is very important as well. I missed one picture here, which is Carla, which is there. In a few months she will step out of the CEO position of Blue Game but she will remain with us, she will remain in the board of directors, she will remain as advisor to the chairman. We have been working together for more than 40 years and I'm very pleased that you will still support me. It will be a long meeting so please relax because we want to tell you exactly what will be the future and the world of San Lorenzo, Swan and Blue Game. I will start with the track records and highlights and then the people you saw in the picture will present the plan. I promise I won't make any more mistakes. A story of innovation rooted in tradition. 20 years of shared vision, shaped by many hands. From a corner of Italy,

To the world's attention Where craftsmanship became culture and yachts became legends This is San Lorenzo Like the sea itself. Never changing yet ever changing. The present will soon be past. But tomorrow's icons are timeless.

Don't be shy, eh? Today you have to applause a lot. So, let's start. Consistently achieved all targets across market conditions. Two very important messages. As you see, in the last six years since the IPO, we've been very conservative, we've been very prudent in giving our numbers. And we achieved every year all the promise we gave you. And this is the base of the planning of the next three years as well. We like to remember and we think that the San Lorenzo of today is a much stronger company than six years ago with better management, with better range of product, with a wider market, with more experience and also for you a company which is keeping the promise. As you see, the financial performance has been remarkable. We have a revenue which grew 9% in the last three years. The EBITDA grew 11.7% and the net profit 13.1%. The EBITDA margin for 2025 is 18.8%, which is a little It's lower than last year, but the organic growth is 19.5. We have, unfortunately, the consolidation of Swan. Swan is a company with great potential, but it's not that easy to get to the San Lorenzo margin in a quick time. What is very important for us is that the first consolidation is a company that has a net profit and is producing cash, which he never did in the last 20 years. The EBIT is 14.6% and we have a net cash position. The last, but I think very important, we like to remark that the ROIC is more than 20%. and this is a very important number as all of you know. We did 164 million of dividend and we will keep the same policy between 30 and 40% of the net profit for the next three years as well. The cap is around 50 million and we will keep that cap for the next three year plan as well. So we think we have a leadership in profitability, We have asset light business model and I would say we will show you there is some strong barriers to the entry in our business which is again a good important point. Quickly through what we did, the direct distribution has been boosted a lot with the new San Lorenzo Med Americas, San Lorenzo of Americas, we have a new office in Pier 66 and we have new sales organization, we have new dealer in Mexico and in Brazil and Hapac is now very consistent. We saw the numbers of our direct competitors and today San Lorenzo, thanks to the investment Simpson Marine is in the first position in sales for Asia Pacific. Now considering the situation of Russia and Middle East, we really think that we will enjoy our leadership in Asia Pacific. In the middle you have the competence of the companies being increased thanks to the acquisition of some of our suppliers. and then, last but not least, we are pioneering the technology for the emission and for the sustainability. I just remember the tender for the Americans Cup, which is 11 meters with foil and hydrogen propulsion, more than 50 knots for 180 miles. It was a success for American Magic and the French Syndicate. The first 50 meters with the methanol reformer fuel cell. You see the equipment produced and supplied by Siemens. And I would consider Naoto Zhuang as the last point of a film rouge which is closing the sustainable investment of the company. Juan is building sailboat, is the top brand in the world and our goal for the future will be building maxi going 16 knots with the wind and when there is no wind to have a propulsion which will not be a thermic engine but a new sustainable power. that will be the ideal product for the next 5 to 10 years. The new model. This model has been launched in 2025 and I hope you already saw our numbers and you see that we have quite a strong order intake, approximately 25% more than the first quarter of 25. Consider that we had a very strong general in February, probably some of you remember our meetings, we said Düsseldorf was very good, Miami was very good, but then the third month was almost stopped due to the Iran war. We have strong order intakes and the reason why is here. The new model has been a success, has been supporting very much our order intake. So nothing is coming from the sky, everything comes back. When you do a right investment, you do a right design, you do innovation, you have the right team to do it, at the end the result is coming back. This is, I think, the most important picture of the day because it's showing you that we are increasing the order intake consistently in the last seven quarters. Now, seven quarters is not one or two or three. We sell an 80-meter or 70-meter and we adjust the number. No. Seven quarters is from, as you see, age 24 through 25, which is not being announced here, as always known, until the first quarter of 26. One of our business models plus is the segment. Remember, I started when I was 23. I worked for more than 20 years in a very important company in the business and I learned that yachting, boating is not always very good in terms of profitability. Che è successo? So we like to show you these slides because the sweet spot in this business is between 30 and 40 meters. It's the segment of the business of the market which is more profitable, less competition and San Lorenzo is leading as you can see. We are monobrand, so you see that 141 yachts are built under the same name, San Lorenzo. Meanwhile, our competitors, sometimes they use more brand, but still do not have more boats in construction than San Lorenzo. This is very important, and this probably is one of the main reasons of our EBITDA margin, which is the highest EBITDA margin of the market. So we are price leader here. We have a model which is changing the product every 10 or plus years. If you see, let's compare with the car industry, which is easier for everybody. With a car like Renault, Peugeot, Ford, Fiat, they change the cars every... 3, 4, 5 years because they need to make the evolution of the cars in order to have more orders, in order to get the order intake. If you take as example Mercedes or even more, Bentley or Rolls-Royce, the changing of the product is every 20 years because the market is more solid, there is a leadership Well, San Lorenzo has an average of 10 years for each model, which is a sign of top brand positioning, the connoisseur of the club of customers of San Lorenzo. This is one of our special business model points. Then, of course, the scarcity, the desirability, and many other points that we already discussed together. Now, let's... I would like to go to this one and then I come back. The new number. This is the last six years, the guidance for 2026 is expecting a 4% increase between 980 and 1 billion and 20. We have an EBITDA which goes from 180 to 192. with an average increase of 3%. The EBITDA margin is between 18.5% and 18.8%. Here we have to consider the slow growing of SWAN. EBIT 140, 147, the EBIT margin between 14.2 and 14.4, the group net profit between 108 and 114, and the CAPEX around 5.3% of the revenue. It is not a fantastic guidance, but you have to consider the geopolitical situation of today. And you have to consider mainly our prudent, conservative approach. We like to maintain our promise. So in today's environment, these numbers we consider very solid, very resilient, Considering that we cannot sell boat in Russia, we cannot sell boat in the Middle East. In Dubai, people are leaving. Fortunately, they are using the boat in the Med, but they are leaving. and so they are not thinking to change the yacht in this month. So in this difficult environment we think that the guidance for 2028 will be a growth of 6% or more, the EBITDA margin will be 19% or more and the EBITDA margin will be 14.5% or more. and we keep 5 to 5.5% of the CAPEX. Please consider this a strong, resilient plan, conservative, because if things go better, we have the possibility to have quite an interesting upside. The day that there will be no war, There will be more business. Now it's five years of war between Ukraine and Russia. We have many, many customers calling us saying, as soon as the boat will finish, we will knock your door. Remember, we used to sell 3-4% of our revenue to Russia, and after five years that means 15%. And the people still have the money, they just need to be free to buy it. The same is for the Middle East. Our Middle East market is 7.5%. So if that war will stop, we will add to the three-year plan 7.5% of market to be back. So the geopolitics stabilization will be a key point of the upside. Refit, we are working for the acquisition of a new plant. We like to have the right plant to the right money. You know, we are very conservative, we don't want to spend too much money if it's not needed. The moment we will have a new plant, and there are some good alternatives existing, there will be a boost in our numbers that are not inside of the plant. and the Untaped Geography. This is also an important point. As you remember, in the last quarter of 25 we had Brazil and Mexico, two big countries. We have Australia and Japan on the other side. And there are still, we will see later, there are still good important markets to cover. So we have still quite a nice space to grow. Now, the program of the day are the pillar of the San Lorenzo group medium term strategy. We will have Tommaso and Ivan and Attilio and Gian Guido to talk and to explain to you. In the summary, we will speak about pioneering technology, innovation, Grazie.

Good evening, ladies and gentlemen. I'm Ivan Cutrufello, head of IR, Finance and M&A, and it will be my pleasure to walk you through some of the main market trends that are underlying our sector, of course, with the specific lens of the San Lorenzo reference market. Starting from this last point, before seeing the broader market trends, we described some of the key stats regarding what we call our San Lorenzo Customer Club of Connoisseurs, so you see then the market with the right lens. As you know, the Customer Club, our Customer Club is one of the most valuable intangible assets. We've been building it for decades. And in the past five years, it's very interesting to notice that the frequency between repeat purchases from our loyal customers has improved going to 3.5 years compared to five years before 2020. Then when we go analyze what kind of purchase they do in this repeat process, we see that 75% of our repeat buyers, they upsize when they change their yacht, on average by 6 meters. Always remember that the relationship between length and value is not linear by its cubic. 57 meters is double than a 50 meter. So the six meters increase over time effectively translates into an average upselling in monetary value that is above 70% when we compare the price of the last purchase with the price of the previous purchase. We flag at the bottom of the slide this double utilization time. And this is also key when we analyze the yachting trends, and specifically the cellular ransom ones. If our customers use the yacht on average four months a year rather than two months a year, they're more willing to invest in it, to spend more in it, because they're dedicating a big chunk of their life onboard the yacht. Switching to the market, now we see some of the main trends underlying the broader reference market which is quite solid and within this market San Lorenzo is an upper former. One of these trends is wellness and longevity. The purchase driver behind The yachting purchase from our clients is not just related to making most of their scarce free time, but is also related to their wellness. It's quite proven that living by the sea, on the yacht, the sea life, has important benefits on the health of a human person. So, for the lucky ones that can afford a yacht, for sure, that's a great way to invest in your own well-being. When we look at the wellness economy overall, we see that the trend is accelerating. So there is more consciousness and more willingness to spend in wellness and longevity. Between 2019 and 2024, the wellness economy grew around 6% average growth rate, and now the projections indicate a growth that is about 7%, so an acceleration. When we break down the clusters of the wellness economy, here you have 11 clusters, we also see that the ones that are most adjacent to yachting are the ones that experience the fastest growth. Wellness real estate, for example, rather than wellness tourism. The reference market, our reference market between 30 and 75 meters is expected to grow 5.7% according to superior times up to 2028. Of which, if we break it down into the components, the price and mix, so the average selling price effect is the main component of this growth. When we look at further underlying trends, certainly is important to flag demographics. the billionaires, in general the ultra high net worth individuals, they are ever more and ever richer regardless of the phase of the economic cycle. We see this de-correlation between our customer base and the economic cycle. If you look at the top cluster, the top cohort of wealth, we see that both the self-made ones and the ones that inherit the wealth we see that in 2025 in both the segments we had the fastest wealth creation since in one case since 2021 in the other case since many more years in the case of inheritance we see plus 36% year on year which is a very strong percentage and this is just the beginning according to demographic trends because on the right hand side of the slide we see there are about 6 trillion US dollars ready to be transferred in wealth for the next 15 years. When we consider that the ultra-rich in the world have on average 3.5 children, this is both a multiplication effect of the target addressable market and also a big wave of new money ready to be spent according to the other trends last but not least we flag the development of marina projects which are particularly significant for the development of ecosystem in emerging markets for example in APAC where we have great opportunities also thanks to the simpson marine acquisition On the supply side we see a clear dominance of Italy as a proper broader ecosystem. The market share of Italian builders has been constantly increasing for the past eight years and here we see a progression that goes from around 45% in 2018 to more than half of the global production as of today. is a clear sign that yachting needs a precise ecosystem and Italy is the country best position to compete because of its craftsmanship availability, because of the industrial efficiency of a big manufacturing country, because of design and lifestyle embedded in our culture. When we look into the Italian players we see that there are three top players there are three champions if we get the top three of course San Lorenzo is one of those three we see a constant increase both in top line and in marginality so it's a healthy growth the ability to reinvest those margins those profits into the business is creating a gap between the top players that can afford the scale and the capital and to put the capital at work with the smaller players that are more fragmented at the bottom of the industry. Within the three top players, as Mr. Perotti was outlining, San Lorenzo is the one best positioned in the sweet spot of the market where we combine On one side the highest profitability because of the semi-custom business model, because of the repetition in models. On the other side a local relation to the economic cycle because in this sweet spot our clientele is so rich already that the correlation and the cyclicality fades away. Two more things to flag. The exposure overall of the San Lorenzo Group in the cohort below 24 meters is quite limited, about 10% of the revenues. That's the most cyclical part, but that's where we use the limited amount in order to catch the customer earlier, so as in the customer acquisition tool. On the other side, We don't have exposure above 2000 GT so we limit the execution risk in building those mega projects where usually marginality is not as under control as in our reference market. I conclude here just to comment one of the upsides just presented by Mr. Perotti, the refit. The refit is particularly interesting because it evolves naturally with the growth of the installed base, so of the global fleet, which each year keeps increasing, and then when we go break down by the age of this fleet we see there are about 4 000 yachts about 30 meters in the world about 70 percent of the global fleet that is older than 10 years so there is a clear opportunity to enter a business that is anti-cyclical as an attractive marginality and it well complements our business model that is more and more customer-centric also in the after sales I leave back the floor to Mr. Perotti. Thank you for your attention.

Consider that... You know, this is the hub for hearts. and as you know the Harz people are not very well organized and so sorry but sooner or later they will but it's okay it's okay because this is not a problem sorry just a simple point Italy is building 52 percent of the yachts in the world but there are There is small business in refit because the problem is... The point is that we build the new boats and then the customer, 10 years, 4,000 people, 10 years old boats, goes to Spain, in Barcelona, to France, in Marseille to do the refit. because it's a problem of space in Italy. So we are working very hard in order to get a new plant to do the refit. The refit is also very nice because in one way it's anti-cycle and you do not have to invest money. After you do the investment with the beginning, with a new plant, then you don't have to do more and more investment for the future. So it is a very important growing point for the company and is not included in the plant, in the three years plan. Now, we will speak about pioneering technology and your development. and then Tommaso will explain you about the operational excellence and distribution network and Renato the brand and owner-centric approach. Let's go quickly. The first page is design and innovation lab. I sincerely think that our The main reason of success of the last six years has been innovation and design. We have now three important brands, which are San Lorenzo, Blue Game and Swan. And for one reason or the other, these three brands have been working alone. The team of designers, the team of technical people, the research and development has not been really in connection with the other companies. So the idea is to build a design and innovation lab. in order to have a team of people with the leadership on all the three brands and exchanging ideas and having one organization concentrated with the relationship with outsider designers. The new innovation will be moved from one brand to the other. So we think this will be one of the future This is a very important idea to develop our business. Research and development will concentrate on sustainable propulsion. You know that we have been the first company to build a 50 meter with fuel cell. We have a B-fuel engine, yachts, is a 50 meter, we have been designing the boat and we have the engine from the MAN builder which is working not only burning fuel but methanol. The problem here will be to see the future of logistics and distribution of methanol. Therefore, the technology is there, we are pioneering the technology, but we must wait to see the development of the distribution. And then there are many other points. Innovative material, the alternative to ticks, eco-composites. We have digital system integration. Of course, the... AI new world is coming to yachting as well. It is something to explore deeply. We will do it. There are also new work for research and development in the process of innovation, automatization, robotics, patent, data managers and governance. This is a nice picture. You see the SCI, the San Lorenzo Heritage. It is a clear example of innovation where we are leader. This boat has been designed as a heritage approach, taking the design of the 50s and the 60s, but inside we have the most sophisticated technology from the IPS Volvo hybrid engine. In short, in the cars you have the hybrid car, you accelerate and you use either electricity or thermic engine, This boat will be the same. We go up to 1200 rpm electrically, then when we push for more speed and longer distance, the electric engine will stop and the thermic engine will start automatically from the Volvo system. When you arrive to an island and you want to reduce the speed to drop the anchor, you go back to less than 1200 rpm and the thermal engine stop and the electrical engine start. So it is a really high technology approach and that will be the most sophisticated system in the CHI. San Lorenzo Heritage will be launched in June and will be introduced in the Cannes Boat Show. That system is... is pioneering the Volvo IPS hybrid solution and will be used in the next technical platform for the S6, 76, 88 and 100, which will be an extension up to the 2028. This is a picture showing you a bit more what I already told you, the B fuel engine, that we will apply to our production. The B-fuel engine means that 70-80% of the consumption will be with methanol and not fuel, but still you can work, you can produce energy by using the fuel. So if you don't have the availability of methanol, you can still have the fuel. We are in pole position in this project as well. And here you can see the design of the methanol tankage which has a pattern. We registered a pattern in order to enjoy this technological advantage in respect of the competitors. Yacht development. As I said, the design innovation has been the real point where we built our leadership. The development of the new boat is very important. And here we have the new model mix, which is upscaling in size and in innovation context. You see here we talk about flagship of the SD line, the 132, and then we have a flagship on the blue game line, which is the BGX83, and then we have another flagship, which is the Maxis 128. What that means? Le ammiraglie, of three different line of products are launched in 2025-2026. So our new model is upscaling in innovation but mainly in size. So that is giving us the possibility to grow the revenue without changing too much the number of boats produced. Remember, scarcity is our goal, is our logic, is our business model. robust pipeline to introduce the market in 2026, confirming what I just said, in 2026 we have a new SL80, a new SX136, a new Explorer which is more than 60 meters, 1150 gross tonnage, the new SD98. In the blue game we just introduced the and BGX83, which is the flagship of the line, and then we will have a new BG64 model for the Cannes Bolshoi. In Swan we will have the last German Flair design, which is a Swan 73, which will be in the market for 2027. We will launch and present, introduce in the market, the Swan 80, still German Flair and it is under design and development a total new line which is they call it Blue Water and the name will be Swanscape. It is a kind of escape boat to go around the world with more comfort. This one is designed by Vrolik, which is one of the best designers of today. Again, it's showing the kind of effort in new models with innovation in design the company is doing. Here I think is a page that is showing you our strategy. When we bought the company in 2024, there was only the San Lorenzo SL line, the flying bridge, planning how. You see that in 20 years we have been entering San Lorenzo in many more, many different segments of the market with the monobrand approach. When we started Blue Game in 2018, was a very small company and was just the BG line and you see that for Blue Game we did exactly the same, BGX, BGM, BGF and so the company grow to 90 plus million euro revenue. The same concept we are going to do with Nautos One. With Nautos One we bought the company with the KLAVS ONE line, the classic Cruiser and the Maxi, built all in Finland. There was a motor line called Shadow, but was very little. and we are going to expand a lot the motor swan range of product and then there will be two new completely new models which is the aluminum maxi above 44 meter which will be built in Viareggio bringing back the maxi production in Viareggio and then, as I say, the Blue Water, which is one scape line, which is, just to explain again the idea with the automotive, which is easier for everybody. The Porsche car industry is building 300,000 cars. 150,000 cars are SUV. If you look Porsche 20 years ago, it was the 911 classic Porsche style. So the SUV new line has been now taking 50% of the business. So the idea of the blue water line is not a flash deck boat, but is a boat with a superstructure which is protecting much more. and more comfort to the customers. So that means that with this one brand we will take a new line, a new segment of the market and expand the business. This is the project of growing our product from 2022 to 2025. The last three years we increased from 26 to 35 models. and the expectation for 28 will be to increase to 39 model. This is San Lorenzo and Blue Game together. You remember we explained you about our 10 years average time for changing. This is quite important for the business model of San Lorenzo. Why? Because if you spend millions of euros to buy a boat and you know that after two years you have a new boat, you will lose a lot of value, you will lose the value of your asset, which is something that is not really nice for the customer. You remember San Lorenzo as a club of connoisseurs, 1,000 people. Joan is a club of connoisseurs, 2,300 people, smaller but they are more, but still very small number in respect of the and bigger competitors. And the fact that our range stays in the market longer means that the second-hand market has more value, means that our customer knows that buying San Lorenzo they don't lose the value of the asset. So it's a key point in the value of the brand. Now, you remember we said we enjoy very much with San Lorenzo the increasing of product covering different segments. We did it with Blue Game. So this is exactly the example of what we are going to do with Zhuan. We bought a company with three line of product and the service business, which is a global service, which is covering 18% of the revenue. and then we will add the swan alloy, aluminum boat above 44 meters, the swanscape, which is the blue water sail line, this is the new one in the project, and then we will boost and renew the power swan. When we tell you that the TRIO Plan 2628 has been conservative, very careful in the numbers because of the geopolitical situation. We consider a grow of swan less than what we could. So one of the upside, and I would say that if we do the upside, thanks to Gian Guido, which is here, I think this one can really produce much more than what we have been forecasted in the plan. Why? Well, because the situation of the market is such that we have to be conservative, we have to be prudent, but the three new line of product can double the revenue of the company. It will be in three years, it will be in five years, today is difficult to consider that, so that reason we have been very This is an example of the new Swan Alloy 40 meter plus designed by Markon McKeon. The interior is Christian Liege, two top designers in the world. The boat is magnificent. Consider that in this field there are only two competitors today. It's Royal Huisman and Vitus, which are two Dutch very strong quality competitors. They sell their boat with more than 120,000 euro for tonnage. The idea to use a North European brand, which is the top line, like an AutoZone, with our design, built in the famous Via Reggio at the Italian coast, having only two Dutch competitors, believe me, will help a lot to increase the EBITDA margin of Swan. So it is a key element of the growth of the business of Swan. This is just a little sketch, we cannot Disclose today too much, we will introduce the new model in the market soon. This is a typical superstructure of the blue water line for the Swan Escape, which as you see is protecting the owner and the guest much more than the flat deck. This is same as San Lorenzo and Blue Game. We have the increase of the model. We will project between the 2026 and 2028. Now I like to call to the place, Gian Guido, Gigi G, Gian Guido Girotti. We have been speaking together for eight years, so it was a long plan to get you, but as you know, I never stop my ideas until I don't get the result and I like to pass the floor to Gian Guido.

Thank you very much. Indeed, we are A long business love story, let's put it this way, since we knew each other since quite some time, but I'm a boat guy, let's be clear. I've been doing this for all my life, as Max said at the very beginning, and I think it's part of the core Values of the incredible organization that I found entering for the first few hours and days into San Lorenzo still as a guest because I will start to serve as CEO of Swan and Blue Game from mid of June. I will spend just two minutes because there are so many and much more information, more important information than myself about who am I. I said I come from a sailing passion business family, let's say, not business but family passion business. family and then I decided to transform this passion into a discipline when I started naval engineering and then in Southampton and then I ended up doing a master in fluid dynamics that luckily allowed me to enter at the time at the pinnacle of the yacht design in 2000 at German Fares so this the former or actual designer of an outer swan I had the incredible opportunity to master what we call the best of what it's your design so technology blending it to the most and most beautiful boats in the world because I've been doing not just the America's Cup but the Wallis that were designed by the first office at the time as well as this one. After four and a half years, my curiosity, I mean, you will know me in the years, drove me to really stress myself and understand what's the business side of it. So after mastering, let's say, the technological and the design side, which is the key and the powertrain of the business, I started working at Grand Soleil and then Dufour, where I served a different position and understanding more the distribution strategy as well as industrial and production one. From there, in 2015, someone who is here today took me into Beneteau. We had Carla Demaria. She took me to Beneteau. I started serving with her the product strategy of Beneteau. We turned around the brand, then she left, as you know, because she has an incredible history here, and I served after her, a bit like taking over today, the Beneteau brand first, and then I took the role of deputy CEO of the group Beneteau at the time, relaunching what was then named the plan of the House of Brands, so restructuring all the branding side, re-putting some orders or discipline. Today my mission is very clear. I mean, I'm honored because we've been speaking quite a lot about all this. The two incredible brands that I will look after, Swan, it's the reference of highest quality sailing and performance sailing in the world, and Blue Game, which is more of a bold brand that started just a few years ago but managed to create a strong brand name into the business. So I have this incredible responsibility to hold and to structure these two brains over the time bringing some of the discipline that I learned even in the past but mostly to benefit of this incredible San Lorenzo discipline of overall performance and agility to serve customers quality to the highest standard. So I'm really thrilled to start from the 15th of June and I thank you again for these two minutes to present myself. Thank you very much.

Grazie Gian Guido. And now is the time of Tommaso, the big guy.

Sorry, I need my glasses.

Good evening.

I am proud to step on the next strategic priority, which is the operational excellence, where I build my career in the last 18 years here in San Lorenzo. Our path towards operational excellence. We'll start with two strategic projects. The first is technology and infrastructure. We aim to establish a new cross-functional entity that will oversee our infrastructure and to develop continuous optimization. It will ensure harmonization of the Infrastructure in terms of aesthetics, that means the brand identity, technological support to better improve the efficiency and the flexibility that allows us to move along the different plans, our range products and brands. It will ensure as well technological solution like software implementation to let our operational team be focused on what they do best in terms of artisanal and complex customization process. Looking beyond the second special project What we target is what we call in Italian Progetto Horizonte Uomo, Human Horizon Project. It's a strategic project for us that places people at the center of the value creation model. The aim is to create an environment where our employees are centered. We would like to achieve that kind of environment, developing internal protocols to increase our safety and well-being, introducing best practices to enhance operational performance and strengthening the sense of belonging. Because for us every San Lorenzo is the result of the hands, of the experience and the culture of our people. This is an example of technology implementation. Netspace is a 3D design process interface that allow you to ensure time and cost reduction in dealing with the unforeseen client modification request. Even San Lorenzo is for sure a handcrafted business. We think that it is time to welcome AI in our company. We would like to hire a dedicated manager that will be focused on training and developing internal awarenesses, technical feasibility studies, and AI first adoption to get quick wins. On top of what we have just seen, these are the main investment in production capacity that are already planned. Our operational excellence is is based, is built on footprint optimization and it is targeted on capacity addition in already owned land property. In Amelia, the new ham shed of about 4,000 square meters will be added to the actual production capacity In Arbatax we would like to strengthen our composite plant with over 3,000 additional square meters for a total of 15,000. And in Northern Italy, near Brescia, we plan to build a new plant in already owned land property that was purchased for this purpose a few years ago, in which we will build 11,000 square meter plant that will be dedicated to serve Notre-Swan and Blue Game business. Our CAPEX execution will be in line with our business plan. At the end of 2025, our production capacity exceeds 140,000 square meters compared to the 100,000 square meters in 2022. which in this moment we are using plus or minus 78% with the 100 million cumulative capex we plan to develop in the three years plan we would like to increase our production capacity plus 15% and with the the project we discussed so far to improve our efficiency we will rise up the percentage of utilization up to 80 percent on top of that we have we still have 10 percent of capacity that we can we can gain with the new plant in Brescia for Bull Game and so on. Next is distribution. It's a key pillar for us. In fact, San Lorenzo has a unique competitive advantage having built a global direct sales distribution in the three main markets that no one has and that allow us to be leader not only in made to measure but also in made to service being direct on the market we we aim to catch more opportunities around the world to be able to better balance the market trends in this way we are sure to fulfill the order intake that is targeted in coherence with the scarcity model in the picture you can see in green the countries we think we would like to where we see opportunities for Sao Lorenzo in this moment in brown you see what we have recently established with local presence as I said our direct sales distribution is already present in Europe with San Lorenzo Med that is based in Monaco, south of France and Balearic Island. We are still in the ramp-up phase for San Lorenzo Med, even last year they did a significant result for the group. We see opportunities in the Scandinavian areas, so in the Northern Europe, as well as in the Baltic Republic and in Polonia. We would like to be stronger in Thank you very much. Americas are lead by our direct company that is Zlota San Lorenzo of the Americas. As Massimo said, we are based in Fort Lauderdale. We just had the inauguration of the new showroom in Pier 66, which is an iconic place for the yachting in the US. and we have just renovated the sales organization. We just hired two top sales managers. They will take care of San Lorenzo Blue Game and Nautos One. We recently established a local presence in Brazil and in Mexico with an exclusive brand representative. On the U.S. soil, we target the West Coast and the Great Lakes area, and we don't have to forget that the U.S. was for decades the top market for swan business. We also are interested as well to develop in South America, Argentina, Venezuela and Colombia and of course Canada in the Northern America. On the other side of the world we are present, we are direct with our organization Simpson Marine. Simpson Marine has just completed its consolidation developing Australia and Japan. and in the next future we would like to target New Zealand, South Korea and India. I would like to conclude talking about the super yacht sales development strategy. where we see significant room for price increase to support our margin expansion. Till today the super yacht business, let me say the sales activity on super yacht were driven mainly by our headquarters. We would like to benefit of the commercial development we have seen so far to to be more present all over the world and to use the central role of our direct distribution hubs where we plan to appoint dedicated, highly trained specialists that can support the prospect management in the early stage of negotiation. Superyacht is a business where you have to be skilled and prepared, so we need to help the direct hubs to be in the business, in the superyacht business, with the top specialization. I thank you for your attention and I leave the floor to Renato Bisignani, which is our CFO.

Good evening. Good evening, everybody. For the next 10 minutes or so in this section, I will frame the role of brand within our broader strategic priorities and our continued approach to enhance our customer experience. At San Lorenzo we increasingly see brand as a strategic layer that connects product, client experience and long-term value creation. And it is through this lens that I will walk you through the next few slides. At the highest end of the market where we operate, differentiation is certainly driven by product offering and scale, but it is also, I believe, first and foremost driven by brand perception, relevance and the quality of the relationship clients build with the brand over time. Our growth model is built on a deliberate balance between portfolio expansion and controlled scarcity. On one side, we are expanding the product offering, addressing multiple segments and usage profiles across the range. But critically, we are not pursuing volume expansion as a primary goal. Instead, we are strengthening brand pull, increasing the number of clients who want to enter the brand without proportionally increasing supply. This is enabled already through the strong foundations that our brand possesses and our continued focus on building its iconicity to support our pull model. and the implications of brand on our business strategy are very much aligned as they enable us to maintain tight control over availability, support pricing discipline which also protects resale value, sustain margin quality over time and ultimately increase customer lifetime value. At the same time, Network expansion and direct distribution allow us to increase penetration without fragmenting the brand experience. So growth is enabled not by scale alone, but by controlled access to an increasingly desirable brand. To consolidate this model effectively, we worked on a clear and ownable point of view centered around the idea of tomorrow's timeless. Tomorrow's timeless is not a tagline, it is the very articulation of how we operate as a brand and also the name we chose for our three-year business plan it captures a very potent duality timelessness which underpins long-term value and design integrity and a forward-looking pioneering mindset which drives innovation and relevance Why is this important commercially? Because strong brands reduce volatility and maintain desirability across market cycles, and relevance over time is what sustains pricing power. A brand that is only contemporary risks becoming obsolete. A brand that is only heritage risks becoming irrelevant. Our positioning allows us to operate in both dimensions. in a category which is often driven by product features, this gives us a structural advantage. Of course, we are selling amazing products, but we are not just selling yachts. We are building a cultural and aesthetic reference point. This already enables our brand to transcend beyond the yachting category and generate the fame-like status of a brand that customers would want and love to own. At the core of this model and one of our most important assets is our client base. You've heard about our customer club of connoisseurs, which we refer to. This is not simply a customer list, it is a curated community of highly engaged, highly valuable individuals with a very strong appreciation for design, craftsmanship and innovation. What really matters from a commercial standpoint and from your point of view are two things. First, loyalty and repeat purchase, which remains structurally high, as you've heard from Ivan before. Second, predictability of demand, which reduces volatility in the business. This is a strategic asset. It allows us to grow in a measured and resilient way, even across cycles. Because demand is not only driven by the many new clients that we are able to attract, but by existing clients evolving within the brand. This is something we actively cultivate through experiences, engagement, and long-term relationships. our marketing efforts are concentrated on creating one-to-one platforms for relationship enforcements and upsell pathways while also following wealth patterns to allow us to capture new to brand customers so ultimately this approach is what allows us to grow in a measured and predictable way Now, translating this into execution, this is where our owner-centric infrastructure comes into play. We are building a fully integrated ecosystem across sales, service, marketing, events, and data insights. At its core is a very simple principle, one global view of every client and every yacht. This allows us to have seamless customer journeys, a consistent brand experience globally, and real-time data visibility across the lifecycle. This is really where brand and technology converge and allow us to deliver a high touch experience which is expected in our segment with the precision and scalability of a high tech platform. From a business standpoint, this is about increasing lifetime value per client, not just initial transaction value. And importantly, it connects our headquarters and brand representatives across our markets into a single system, which is critical for both governance and scalability. Moreover, our owner-centric approach is executed through a set of highly curated experiential platforms that directly enhance desirability and brand saliency, most importantly. These are not isolated initiatives but coordinated sets of levers. The Connoisseurs Atelier, for example, redefines the purchase journey into a bespoke and immersive experience within our shipyards. Our proprietary and affinity events participation allow us to engage with ultra high net worth individuals in environments that are relevant to their lifestyles and their interests. Through arts and culture, particularly Casa San Lorenzo, this marvelous space, we extend the brand into a broader cultural space, increasing its relevance beyond yachting. And through the evolution of our showrooms in our markets, we ensure the consistency of the brand experience and the proximity in each of these markets. Ultimately, these levers allow us to engage clients in a variety of meaningful ways and expand into adjacent cultural territories by largening our addressable audience and reaching new generations of wealth. This approach overall is a strategic driver of demand generation while also targeting the right quality of demand. Finally, beyond product and brand, a further frontier of differentiation will increasingly be defined by the quality of the ownership experience and the long-term relationship we build with our clients. This is why we see high-end services not as a support function but as a strategic commercial lever. This is where our product made-to-measure approach converges with our made-to-measure client service approach. What you see here are four of the key capabilities we are progressively implementing. Remote monitoring, predictive maintenance, AI, virtual assistants and importantly a structured integration of customer care with marketing and CRM to give us a single and unified perspective of our customers and their journeys with us. So, to conclude, if I summarize, our approach is very clear. We are scaling desirability and experience. Together with our other core strategic priorities, our focus on brand elevation and customer experience is how we intend to continue delivering disciplined growth over time. Thank you for your attention. I now invite Attilio, our CFO.

Thank you Renato and welcome to everyone. now considering the tomorrow's timeless action plan that we share today with an holistic approach across all processes and people and considering the high-end positioning of the brands and ultimately the San Lorenzo unique business model with robust Q1 2026 result San Lorenzo present today a solid guidance 2026 continuing to take a measured approach and constantly monitoring the geopolitical scenario and the global context that we have especially in this period in particular the net revenue in yachts grew 4% at midpoint of the range 980-1020 million euro EBITDA in the range 180-192 million euro and EBIT margin between 18.4-18.8% EBIT in the range 140-140 7 million euro and even margin between 14.2 and 14.4 percent and then capex 2026 in the range of 50-55 million euro and then around 5.2 percent on net revenue New York Consider that the Guidance 2026 is covered 72% in terms of net revenue new yachts expected for the year thanks to the remarkable backlog we have. Therefore, guidance provides the solidity of the business model which allows to continue profitable growth even in a complex geopolitical environment as we have in this period. about the outlook 2028 the group has a clear path of growth in this case for the top line is expected a tactful and sustainable growth equal or above six percent CAGR based on the scarcity philosophy and the exclusivity of the brands as we have seen today remain a strong focus on the profitability for the group, with EBITDA margin equal or greater than 19% by 2028 and EBIT margin equal or above 14.5%. then CAPEX with a composition of 5 to 5.5 percent on net revenue yachts and about 90 percent dedicated to develop the group in terms of new industrial capacity and new products and services It is important to underline that the figures do not consider upsides of which the main ones are you can see the stabilization of the geopolitical issue where remember there are a very relevant market that could restart in the next years. They are fit to expand high-end services in an anti-cyclical business and full potential of distribution in new, untapped geography. About revenues, the employment, you can see that we have a good evolution in the three years business plan, improving the balancing. In fact, in terms of geography, Americas and APAC are expected to grow faster than the other region, especially the composition is expected for America 20% and for APAC above 10%. Europe remains the main market, but with a share below 60% and MIA below 10%, also considering the recent event. In terms of division, Nautor 1 is expected to go more than other divisions, with a composition of above 10%. Then, the yacht and superyacht divisions are flat at approximately 50% and 30%, and Blue Game remains below 10%. so with this kind of evolution in terms of breakdown by geography and divisions at the end of the plan we can have a better balancing preserving the overall mix of the group with a benefit for the business About the Nautos One division we can have a further upside in the subsequent three years business plan after 2028 as mentioned before by the President. In terms of capital allocation, the group maintains a disciplined capital allocation. The priorities remain the business development and the shareholder remuneration. In particular, the capital is allocated to new industrial capacity and product development, where it is expected to dedicate around 5% of revenues then working capital to support the penetration into new geographies and to support the direct distribution in the three main sites, dedicating a ceiling of about 12% on net revenue in yachts. and then we maintain a strong balance sheet to catch a dawn such as refit as we have seen before and then also other opportunities on the market. The shareholder remuneration shows a dividend policy in the range of 30-40% payout and share buyback with an approved plan up to 10% of the share capital. So, to summarize, we consider the net ROIC that is a very important KPI, as mentioned before by the President, above 20% also for the future, for the business plan, and this is strongly above the average indicator of the sector, and also in line with the best practice of the market overall. Then the San Lorenzo tomorrow's timeless business plan is supported by a Q1 2026 with solid performances considering the San Lorenzo absolute luxury positioning and in particular analyzing the indicators net revenue yachts grow 4% year-on-year at 222.1 million euro driven by the performance of superyacht and outer swan divisions and the good results of the Americas region. EBDA reached the amount of 38.5 million euro plus 4% year-on-year with a margin of 17.3% on net revenue yachts and then EBIT at 27.9 million euro at 12.6% of net revenue in New York, consistent with the previous year. And Group Net Profit, important because grew up 5.1% year on year with a remarkable total amount of 22.2 million euro and with a double digit margin of 10.1% net revenue in New York. Organic investment for €8.7 million mainly related to new product development with an incidence at 3.9% on net revenue in yachts and then the net financial position at €22.9 million net cash end of March 2026 with €51 million cash generation in the period from March 2025 and more than 80 million if we consider dividend paid in the period. The gross backlog reached the level of above 1.2 billion euro and benefit of a robust Q1 2026 order collection of 223 million euro plus 25.4% year-on-year also considering the not favorable seasonality in Q1. Net backlog end of March 2026 is more than 1 billion with a remarkable book to build of one time and this gives to the group a long visibility on the future result considering the composition of 725 million euro for 2026 covering around 72% of net revenue New York as midpoint of guidance 2026 and 501 million euro for 2027 and beyond. Furthermore, is very consistent in this backlog and high quality in consideration that it is sold 90% to final customer. The percentage increased in the last three months, you remember, in December was 88%. This is thanks to the San Lorenzo unique business model. Then, after the good evolution of sales in the last month, we reached the seventh consecutive quarter of growth after Q1 2026 with 223 million euro new orders, as remembered before by the President, and especially we can see an acceleration in Q1 2026, compared with the first quarter of the previous year 2025 and 2024 and the book to build remained very high at one time. Therefore this we can consider is a new trend for the evolution of the business showing again the strength of San Lorenzo Group in our market. So that's all for the financial result and I leave the floor to the president to continue.

We have the most brilliant CFO in the industry.

Bravo. Thank you.

Two more minutes. Sorry it was long but there was a lot of things to say. It's only one page. Don't worry. It is just the summary of what we said, just go through it very quickly. Strong brand equity, owner centric approach, the high super rich owner base, the connoisseur, unique global direct distribution, leadership in the sweet spot 30 to 50 meter, High quality backlog, 90% sold to final client, best in class profitability. We had something that we care a lot. How San Lorenzo has been outperforming against luxury since the IPO. The average of these luxury companies are the best and you see that From 2019, December, our IPO will be always better. I think it is not wrong to say that San Lorenzo is better than luxury. I'd like to give you just an example, talking about wellness, longevity, We have been showing you slides, but I want to tell you an experience I had a few weeks ago. We have a customer which is taking delivery of a 50-meter, and he is my age, 65. He's been working very hard in life. And he told me, Max, I do this. Summer holiday, but then I want to buy 75 meters. Why? I have a dream. Stop working in my office and I want to move myself on the big yachts. I want one floor, one deck, only dedicated to my family. Large, beautiful cabin. Toilet, walking wardrobe, jacuzzi outside, but then half of the deck I want to dedicate to the office. So my desk, big screen, a table for eight people meeting, because I really want to run the company from the boat. I want, with the 75 meter, I want to go to the Caribbean, I want to go to the Philippines, Thailand, around the world. I don't know if he will do it. It's a dream and we are selling dreams. But for sure, I've been working very hard in my life and you know that cortisol is killing people and I had a lot of cortisol in my blood. So if a guy thinks to move working on a yacht Going around the world with the family, with the friends, I think that is a good way of showing wellness and longevity. So it's a fact, it's not just a slide. Last, you've been admiring Casa San Lorenzo. I just want to remember you that Casa San Lorenzo has been an investment of my holding company. The family, Perotti, is not the cost of San Lorenzo. Thank you to all of you. Thank you for your attention. It's finished. Do we have a drink now? Sorry. I tried to escape.

We will now move into the Q&A session. For participants connected online, please feel free to submit your questions through the chat function, and we will address them right after the questions from the audience here in Venice.

Three quick questions, just to start. The first one is about something that doesn't exist yet, and you mentioned before the refit business. and if you have understood that they require, in brackets, only upfront investment, so you find the location, you buy and fire, and then it's just personnel and raw material cost. So what kind of margin do you think you can achieve if this business will start to operate?

It's a good business because there is not A lot of space to develop the business. And as you see, there is a very large demand. 4,000 yachts, super yachts, above 30 meters, over 10 years, is a huge market. The margin on refit is approximately around 20%. It can be even higher than lower. And I have to say, our customer is asking to do the refit in San Lorenzo because we have a very personal relationship with our customer. The captain, the crew, they build the boat, they go around the world if they want to do and Important Refit, they love the idea to go back to the shipyard. First of all, because we know the yacht, we design it, we build it. And second, because there is a personal relationship. So this is a business that we really count a lot. We are now really committed to do it. Remember, there was something I promised since years, but then we had COVID and then we have the and then we dedicate ourselves to the core business in order to perform the guidance. But now I think that the TRIO plan will be an important upside. We did not put the numbers in the plan because until we don't have the place to work, it's not correct to do it.

The other two questions are related to the brands. You stress your colleagues in charge of the brands. I would like to ask a question from two different angles. The first one you told me, but told me as well as the other financial community, not to me in special, that San Lorenzo will never produce a huge number of boats to preserve the exclusivity, etc. So the first question is, is there a magic number that is a threshold or is a percentage of the existing fleet navigating in the world or whatever so if this number exists or not I can put the second question so you can answer the other one is making a car example until now San Lorenzo's work as new Mercedes model old Mercedes model is better but I can buy the old one because but now we are in a moment of Such a fast technological change. Your colleague mentioned IT and all the stuff that will come into it. Don't you think that this element will become essential for the new owners? And so the value for the first time, the value of the old ones will be perceived completely differently than has been perceived right now, until now. Because suddenly it becomes a no-boater, no longer with the same perception of value that is maintained right now.

This is very much the problem of the automotive, you know. I start from the second and go to the first. Well, we think that when you buy a yacht, you spend a lot of money, you live on board, you have your family, you go around the world. And so the innovation, design, the name, the service, If you take a boat, you go to the Caribbean, you have a problem on the boat in the Caribbean, you have St. Lawrence of America, which is bathed in Fort Lauderdale. to take care. When Ivan shows you the three major builders in the world, which are Italians, they all, if you put all together, they all grow in volume and marginality. That means that there is a logic to buy a boat from this company because they can service the boat around the world There is enough money there to do the research and development. The best managers are in the company. So we think that the problem of the automotive, which probably in the future, not so far, you will rent the car or buy a car regardless to the brand, I think that this problem will probably be in yachting in 30 years, 40 years, which is the reason why we do not have Chinese building yachts. fortunately. But why Italy's 52%? I mean Italy today is like Germany of 10 years ago in cars. You know BMW, Mercedes, Audi, three big builders, the top builders in the world in Germany because there was certain reasons. Some special reason are in Italy to have the three larger Shipyard leading the market.

One is Chinese property.

No, no, please. There is no one Chinese working in the company. The fact that the control is Chinese doesn't mean that the company is not Italian. I would say, fortunately, it is really Italian. There is no one shipyard out of Italy in that group. So I think that... Why? Because there is a reason. Because Italians in this business, the manufacturing, the design, the flexibility, working Saturday and Sunday, Christmas and Easter, is a plus. And customer knows that. Going to the other... which is very important. We are not meaning the scarcity altogether. We cannot build more than 100 or 120. The point is that in the three brands we built 70 San Lorenzo, 25 Swan and 30 Blue Game. They are not in competition. So in one way they are monobrand, each of them with a kind of scarcity. If you take the competition on the blue game, they normally build 200, 300 booths. If you take a competition, we have a man here that has been working with Beneteau. How many sales Beneteau used to build? 1,000? More than 1,000. We're building 25 as one. That means a niche market, premium price, only cream of the cream customer. It's the same logic of San Lorenzo of 10 years ago. So if we say scarcity, we build only 70 San Lorenzo. It is very... If you have a downturn, a change of cycle, you have to sell 70 San Lorenzo above 24 meters with a ticket of 13 million. It's better than building 200 or 300 boats below 24 meters. A couple of questions.

You showed a slide before where basically the mix of revenues by your type 2035-2038 is not going to change much. So two questions from this slide. The first one is Why are you projecting such a slow profitability improvement over time? And also in 2026, it seems that margins are not expected to expand. And second question, on Swan, does that slide mean that you are kind of downsizing or rightsizing your ambitions on Swan?

No, the ambition of SWAN is very strong. As I said before, if the geopolitical was not such as it is today, we could expect doubling the volume. Why? Because mainly the alloy Maxi-SWAN division itself can produce 50 million. consider that the 44-meter has a price in the market of 40 million. So building 1.5 or 1.2 boats per year is 50, 60 million. With Swan we do 100 million today because the service is around 20 million. So if only with one new line of product where we have only two Dutch very high-priced competitors, You can make 50-60% more. You can imagine that the idea to double the volume is something absolutely affordable, is absolutely a goal that we can reach. The problem of not building this number in the plan is just a matter of being conservative. Because really, we have a world today with a leader which is doing something in Venezuela and in Iran and is already expecting to do something in Cuba. If after two months somebody with a different eyes design and a more yellow skin will decide to do something in Taiwan, the rest of the world what will do? You cannot do it. So, the geopolitics is such that it can go worst and therefore we have to consider that. And if we show you in the last six years to be really loyal to our numbers, let's say the typical under promise over the lever, we like to keep that because we consider that very solid, Very good for an investor. And so we have been very prudent in our number. But also we told you there are upside. And the upside is very solid because to have back the Russian market and the Middle East market and not to have a third or fourth World around the world will be a big plus. Like if we manage to have a new plant, we can start the refit in six months' time. Within 2028, we will have So, the profit we expect is minor or equal to 19%, that Henyao is more than today. 2026, consider that we sold already 72% of the volume, so we do not have a lot of margin to make a better number for 26, but the idea is the 28 to be more than 19. More than 19 is... cannot be 25 for sure, but more than 19 is a statement already. So we guarantee you 19, but with a kind of improvement. Storer, it is very difficult to make a projection of three years with, you know, whatever you read every morning on the paper. We have to be very careful. We don't want to come back to you and say, sorry, we made a mistake. It's minor leaks. I cross fingers, but I hope not to do it in the future, like I didn't do it in the past.

I have another couple of questions. The first one is on the new countries you show you plan to target. Are you going direct or indirect in those?

The direct or indirect distribution is depending from the market. In Japan we found two strong dealers. They bought four stock boats. In Australia we opened a direct office, which is a beautiful office. Why? Because in Japan we found a good dealer, in Australia we didn't and we opened our office. We had a good broker based in Singapore and he was pleased to move to Australia. So the decision to go direct or not is depending from the opportunity. What is important is that we are unique in that distribution. So we have St. Lawrence of America, we have, we bought Simpson Marine for Asia Pacific, we opened with Ferruccio Rossi, which used to work with us 10 years in the company. He moved to Monaco and we opened San Lorenzo Med. It was an opportunity. So if we have an opportunity, we are on it. If we have a good dealer, strong dealer, we go. For instance, in Italy, we have been distributing San Lorenzo for many years. Now we have a dealer. because it's a strong dealer. It's the biggest dealer of Italy. So it is nice to have the flexibility to do it or not. If you do not have San Lorenzo Med, San Lorenzo of America, and San Lorenzo Asia Pacific, which is swimmering, you cannot do it. We have to choose a dealer. That is the only solution.

thank you and the last one on your guidance revenues guidance six percent plus how much is price mix volumes last time we met in Milano you were thinking about potential price increases where we are on that we have a good

price increase and increase of marginality in the super yacht because you probably remember since the beginning I said in Italy, we are top of the market but we sell our super yacht at 30% less price than the Dutch and the Germans. Now that window is reducing every year. So we do expect that our marginality will increase mainly in super yacht. This one alloy which will be probably 50% of the revenue. It is another opportunity. to increase the marginality. Of course, the marginality increased today is for the bigger boat, because that market is still very strong. I cannot expect to increase the marginality of Blue Game, because below 24 meters, the market is struggling. But if the world stops, also that market could be back. The opportunity of the business is very much related to the outside decisions by geopolitics which are not under our control. But for sure the price element is one of the driving elements of the increasing of the marginality. Saying equal to or more than 19, is a message to you. That means the company is very solid, is strong, is resilient to everything, so we guarantee 19%. But 19% plus can be 20, but can be 22, 23, cannot be 25. I need more time for that. But to move from 19 to 21 to 22 will totally change the result of the company. We have that opportunity.

Can I ask you, as a follow-up of Nicolo's question, in your targets for ABDA for 2028, 19% plus, does it include, I mean, implies Swan Steel at 15% or is it different as your expectation in terms of net revenues are a little more cautious?

No, the plan is not considering... the double of the volume was won. That is an opportunity, but we don't know if that opportunity will be in three years or in five years. I think that with what we say GGG, which is Gian Guido Girotti, we have quite a good chance, also because it's been working. It used to work very hard for many, many years with 24 plants, How many brands? Nine brands. So we have a guy which is 48 years old with a lot of experience, with a past of a very hard life in working, and so I do expect that we can do better. But he's not in the company yet. is coming in June. So it is difficult for us to plan a three-year plan without... I think that we will have a new meeting in November. After two, three months, Gian Guido will be in the company with a new program of his job. Today would not be professional to promise something without the guy inside.

A question regarding the service. Can you quantify the revenues generated by services incorporated in your 2028 guidance?

I think this is for Attilio.

in the three years business plan we have we have considered just a little increase in terminal services we start from around the four percent last year and we consider to reach a percentage between five and six percent so this is another opportunity that we indicated especially for refit for further upside on the business plan.

Potete mettere la slide della guidelines dei tre anni?

Good afternoon. Thank you for the presentation and for taking the questions. My name is Robo de Laat. I'm from Team Altine. I'm representing Belgian and Dutch investors. I have two questions, if I may ask. The first one is regarding industry dynamics and the luxury sector in particular. We've seen in the beginning of the presentation that the number of billionaires and high networked individuals has been increasing a lot over the past years. On the contrary, we see the graph at the end that the whole luxury sector is actually not performing very well over the past years. We see even the best luxury companies in the world having troubles financially while having slowing growth. and I'm wondering if you believe that the last four to five years has been maybe the worst industry dynamics that you have experienced in your career or not and if there is like maybe a structural shift going on where there is less appetite, let's say, for luxury products and how you see this evolving in the future and in the coming years if this could stabilize or improve.

Look, when we say San Lorenzo is better than luxury, we mean that our product is very different. Of course, we are luxury because to buy a boat you have to spend 10, 20 million and it's not needed, it is really something that is a reward of what you do. It's like a toy for the big guy. If you ask me what will be the future, If the ladies will buy six, seven, or eight, or nine Kelly from Hermès, well, I think that the future will change. The new generation is not really keen to spend that kind of money for goods, let's call luxury, that probably they don't need. With the boat, we are talking about 70 yachts. 300,000 super rich people that can buy the 70 yachts. We do not expect a company or a family to buy 3, 4 or 5 yachts, but we do expect that more people will buy one yacht, because a yacht is very nice to have. I have an experience in life when we went through the very big crisis in 2007, 2012. There was a lot of customers selling the boat because they could not allow them to spend so much money for a yacht. So they went to the beaches, they went to the five star hotel for the summer As soon as they could have the money back to buy a yacht, they did it. Because when you go yachting, it is very hard to change your life. The beaches are beautiful, but they are very boring. So we think that our business is much more solid than the normal, let's say, luxury. and we do expect that the concept of wellness longevity I just explained people are really looking to enjoy life with the family with the friends and thanks to the new technology with Starlink with the also with the habit after covid to do meetings with the Video conference and not flying everywhere in the world to meet people, that will be a big advantage of yachting. For instance, we saw after COVID the reduction of 10 years of the average age of our customer. Why? Because there is young people with more money, but also because the young people can work in the boat with the video conference. Starlings is giving you the possibility to cover the small island in Greece. And when you have a yacht, you go to the small island in Greece because it's beautiful. But ten years ago, you could not cover and Connection. So the technology and the well-being approach, the scarcity of our business in respect of the amount of rich people that can afford it is such that I do expect that our business will grow. will not be only San Lorenzo, probably will be also our competitors, the Italian builder. We have an opportunity. And you can see the graph of growing of the three major builder in Italy has been growing in volume and marginality through COVID, war, everything. We never stop. We're always there performing, probably because the market is such a small market in respect of the big billionaires and ultra high net worth individuals that we really have an opportunity.

So you have a very strong long-term, very long-term track record already. So you believe that in the very long term, over the coming years, maybe even decades if we may say that, there is no fundamental change in believing that you can achieve those long-term gaggers that you've achieved in the past as well.

There will be probably a small change. I think that the guy that today is 30 years old when we'll be 40 and 45 will be more careful in sustainability and they will probably move a bit from the motor yacht to the maxi sail. And that's why we bought Swan. Because we consider Swan the top and we want to have Swan in our group in order to be ready for the time of this change. I will tell you a little story. We had a customer buying a 500 Explorer 50 meter. The guy signed a letter of intent, sent one million to fix the letter of intent. After two weeks, he called me back and said, Max, I cannot buy the boat. I said, why? I had a meeting with my family. I have two daughters. I have a boy and a daughter. And normally, the problem is coming from the daughter. and my two daughters don't want to go with the engine boat. And so, okay, we sent back the money and when we did the due diligence of Swan, I found the guy being the customer for the Seco 128, the 40-meter Swan. and then I ask to the Swan people say that was a customer say well you know something it's very special guy because the boat is designed by the daughter which is 33 and when he comes to the very north of Finland, Pietersari, 700 kilometers north of Helsinki, she comes with the train. She doesn't fly. Because if she flies, she loses the number in the telephone which is giving for the sustainability things. The daughter pushed the father to cancel the motor yacht to buy a sailboat. I think that in the next 10 years that will happen more and more. We do not expect to have today's 95% motor yacht and 5% maxi. Probably will be 90, 110 or 85 or 15. But San Lorenzo will be ready. to take that opportunity with this one. And we are now starting a new line of product.

And then a second question, if I may ask, regarding the buyback and the free cash flow conversion of the company, so more a financial question. You have stated multiple times in the past that you believe your company is undervalued, and I completely agree with it. And my answer to that would be why not starting a share repurchase program, which you now have done a couple of weeks ago, a couple of days ago if I remember correctly. So I will change my question and that is why did you start a new buyback program right now? Is it also... related to the improvement in the free cash flow conversion of the business? Because we've seen there has been a lot of investment in working capital, for example, the last years. Do you expect this to improve and for the free cash flow to be more in line with the net income in the coming years, so you have more cash available to do these buybacks?

We do expect an improvement. It will be a continuous small improvement. Remember, when we buy SimSum Marine, we change from a dealer to a direct distribution. That involves less order intake, because we do not have a dealer that is buying five boats in stock that we can book and sell both order intake. We sell the boat to ourselves in Hong Kong, and until they don't sell the boat to the final market, we cannot considered order intake, as well as the cash. When they pay the deposit, it is the same money because we do the consolidation. So we have been changing the company in the last two years. The market was worsening because of the geopolitics situation. So the composition of the changing of our philosophy of distribution and the worsening of the market has been causing some, you know, The worst situation of the cash. We think that that will improve, but little by little. The second point about the buyback. We have a 10% buyback possibility approved by the board of directors. Consider that We are very careful in our cash situation, so we like to be in comfort related to the cash of the company. So if you see that you have an opportunity to spend lots of money to improve the plant, because we have to do refit, we have to do more, and then you reduce the choice of buying back from the market. So the buying back approach is of course related to the value of the share, Thank you very much. So it's something that we have to balance. We know it's an opportunity but also we have to be very careful if there is other opportunities.

So we have two questions from the chat. The first one is on the planned capacity expansion for large sailing yachts. Are you considering the acquisition of existing local assets or infrastructure to accelerate this growth?

We are considering Acquisition of existing platform as well as we are working with the territory of La Spezia regarding possibility with Arsenale. Probably somebody of you read the newspaper and I've been dropping the matter on the table saying in La Spezia there are two huge industries which is yachting, the Blue Miles, Miglio Blu and the defense industry which is very strong. So we need more space and we are asking to have this space related to the existing space is 120 acres in the old military navy of La Spezia. There are also other opportunities. So we are working on different tables. I cannot say too much more, I'm sorry. But there are opportunities.

And the second question we have from the chat from Natasha Brilliant, UBS. Could you give a bit more detail on the first quarter order intake, maybe trends by geography or size of the yachts? What about between San Lorenzo and Swan? Has the customer behavior changed in the first quarter?

The good order intake of plus 25% in respect of the 25 quarter is mainly related to the Düsseldorf and the Miami Bocho. So it is Europe and United States. And it is mainly to San Lorenzo more than Blue Game and Swan. I hope that I have a play.

Hi, good afternoon, Michele Baldelli from BNP Paribas. I have a question on the renewal, because there was a slide about the new models to be launched in 2027, 2028, so I'm referring to that one. And I don't know how much of these models contribute to your sales, but just to have a picture of how much of your revenues can be renewed Per year, let's say, is there a single year that probably you will renew 50% of your sales into new models? So, how shall I think about it?

Well, when I show the picture of the new model of 25, I told you that that was the main driving factor of a good order intake. Remember, we had seven quarters of increasing order intake. I think that one of the main reasons are the new model, because of the design, of the innovation that has been really taking the market. I think that with this moment we took one piece of the market of our competitors. It was not only the growing of the market. Probably out of all the words we say today in two hours, the major element of success of San Lorenzo has been innovation and design. That's why we are also opening the lab of innovation and design because we want to concentrate more energy and power in that matter related to the three brands. So I think that the success of these five boats has been quite an important boost to the order intake.

I was referring also to the slide with the timeline, basically when we could see, let's say, 10 years of duration of the order, let's say, models. So it seemed to me like in 2027 there was, let's say, there were several models between 2027 and 2028.

Yes, if we can see the slides I show you. Somebody can... I don't remember the... What page is it?

32.

So if you see this slide, basically you see that...

Yes, but I think that... We were speaking about the plan 26-28, so we have been updating only the model that has been included in the three-year plan. There are other models that come to 29-30, but we cannot... Consider, gentlemen, that this presentation will be in our site, so everybody can read it ten times. There are limits on the amount of things I can tell you today. Consider a guy that is buying this boat and knows that there is a new one coming next year, and we stop to buy. So also in our presentation you have to consider that there are competitors and there is a market.

It was just to understand your thoughts about when you renewed it.

You see what is important that the new 88 will come in 2028 and we put on the market on 2018. So that means that the Essex 88 has been a fantastic success. We sold more than 80 boats and it is still selling after 11 years. 11 years is a long time. Our competitors, averagely, keep the boats for five, six years. So if we manage to keep in the market the model for 11 years, that means more profitability because out of the original investment, you know, you can make more boats with the same molds, in very small words, but also that means that who bought the yacht two years ago, three years ago, after eight, nine years, still has the feeling that the value of the asset is there. So it's a very good, strong point of selling. If you go to the second-hand market and you see the price of the car Volkswagen Golf, and you compare with Peugeot, Renault, Peugeot, Fiat and Ford, you see that the Volkswagen is 2,000 or 3,000 euro more. Why? Because there is a mix of quality. The thickness of the metal, The quality of the paint, the inside, you remember probably an advertisement that was very important for me, I learned a lot from that. There was a Volkswagen going at 150 km and there was a little rumour At the end, the rumor was the hearing of the girl aside, because Volkswagen do not have any vibration, any noise. Now, if you can do that kind of advertisement, it's because the quality of Volkswagen is really superior to the competitors. That is an example of what is San Lorenzo. Solid, quality, and then on top of it you put design, innovation, so at the end the customer is buying San Lorenzo regardless to what is happening. because if you see, the growth of the Triumph plant is not incredible, but we have not to forget that in 2024 there was a downturn of the world economy and in 2025 we have been experiencing a changing of the geopolitics in our world, the NATO and the Western world, and in 2026 we have quite a heavy war. So in the last, let's say 30 months, the environment is not really positive and San Lorenzo is there with increasing of volume in keeping quite strong the best in class profitability, cash conversion, At the end, in five years, six years, from 27 to 107 million, we made four times the increase of the net profit. So that means that the company is performing. And it's performing because there are reasons. The quality, the kind of customers, the ticket, price ticket, selling mainly 70 yachts above 24 meter. There are business decisions that are correct because of the experience of the team. Thank you. You're welcome.

Hi, just a quick follow-up on order intake. If you can give us some idea on what progression are you seeing in terms of order intake in the month of April, mainly after this strong performance in Q1. Thank you.

In this moment we see a reduction of activity because of the war. Consider that the performance of the first quarter is mainly related to January and February, which has been very good because it's been better than 24 and 25. March, of course, with the war coming, was a kind of, you know, more relaxed month. April, there was some movement, so people is starting to talk about yacht again. We have to see what happened. This is one of the reasons why the 2026 guidance has been pretty much, you know, careful, you see. can be 980, which will be not a fantastic result, can be 1 billion 20 or maybe a little more, which will be, in my opinion, a very good result. Here we try to keep a fork, which is considering what happened for the war. Is the war going until September or December? The oil will go to 150? that will mean inflation in America means increase of interest. America is very much has a very huge debt so if the interest rate goes up there are problems so all these variables are not in our hands so when we sit down with the team of these people and decide this number you have to consider that first we want to be solid we want to be you know good in giving you numbers we want to show you that San Lorenzo is a very honest and good company then if we can do better we'll be more than happy in six months time come and say look we will outperform the number we will do better but we will not we we do not like the idea to come and say would be less The situation today can really change.

Thank you.

We have no more questions. So now we can go to drink something.