The Italian Sea Group: Board of Directors approval of First Half of 2021 Results

PRESS RELEASE

THE ITALIAN SEA GROUP:

• THE BOARD OF DIRECTORS APPROVES FIRST- HALF 2021 RESULTS
• VARIATION OF THE FINANCIAL CALENDAR

Doubling of net sales and strong EBITDA increase (+110%)

FY 2021 guidance confirmed, with placement on the higher side of the

indicated value range

Main results of the first half of 2021 compared to first half of 2020:

• Net sales: 80.9 million Euros compared to 40.6 million Euros (+99.5%).
• EBITDA: 10.3 million Euros compared to 4.9 million euros (+110%) with a margin on sales equal to 12.7% (vs 12% in 1H20).
• EBIT: 7.9 million Euros compared to 2.9 million Euros (+175%), with a margin on sales equal to 9.7% (vs 7% in 1H20).
• Net Profit: 4.6 million Euros compared to 1 million Euros.
• Investments: 10.4 million Euros as of June 30th 2021.
• Net Financial Position: positive for 22.3 million Euros as of June 30th, 2021 compared to a negative net financial debt of 8.3 million Euros at the end of 2020.
• The total value of active contracts related to yachts that are yet to be delivered to clients net of the sales already recorded in the income statement (Net Backlog) as of June 30th, 2021 (Shipbuilding and Refit) is equal to 452.5 million Euros.
• As of June 30th 2021, there are +10 new contracts compared to June 30th 2020.
• Currently, there are 19 yachts and mega yachts under construction.

The Board of Directors has deliberated to release - on a voluntary basis - additional quarterly periodic information reflective of the development of the business.

Marina di Carrara, September 15th 2021. The Italian Sea Group S.p.A. ("TISG" or the "Company"), global operator in the luxury yachting industry, listed on Mercato Telematico Azionario organized and managed by Borsa Italiana S.p.A., announces that the Board of Directors, during today's meeting, has approved the Half Year Financial Report as of June 30th 2021, prepared in accordance with the IFRS international accounting principles.

Giovanni Costantino, The Italian Sea Group Founder & CEO: "We close the first six months of 2021 with healthy financial results, with a doubling of net sales and a 110% increase in EBITDA, delivering what we have indicated to the financial community during the IPO phase and demonstrating our ability to grow in a steady and sustainable way even during the most challenging times. All of this has been possible thanks to a high-end market position, as shown by the focus on yachts up to 100 meters in length, at the same time leveraging on collaboration agreements with prestigious luxury brands, such as Automobili Lamborghini and Giorgio Armani. In the light of the half-year results, we believe we will be able to not only fully reach the economic and financial objectives we have set for the entire 2021 Financial Year, with net sales amounting to 160-170 million Euros and an Adjusted EBITDA of 25-26 million of Euros, but also to place ourselves in the higher part of this value range".

ANALYSIS OF THE COMPANY'S ECONOMIC AND FINANCIAL MANAGEMENT

During the first half of 2021 TISG has posted Net Sales equal to 80.9 million Euros, a 99.5% increase compared to the approximately 40.6 million Euros registered in the same time period during 2020.

The increase in Sales, compared to June 30th 2020, is mainly due to the signing of new contracts, in particular 4 construction and sale contracts of yachts with a length between 40 and 100 meters and 5 contracts for 20-metermotor-yachts under the Tecnomar for Lamborghini brand.

In detail, the Operating Revenues as of June 30th 2021 are equal to 79.0 million Euros, of which 69.4 Euros are attributable to the Shipbuilding division and 9.7 million Euros to the NCA Refit division.

The total value of active contracts related to yachts that are yet to be delivered to clients, net of the sales already registered in the income statement (Net Backlog), as of June 30th, 2021 (Shipbuilding and Refit) is equal to 452.5 million Euros. In particular, during the first six months of 2021 the Company has signed 4 new contracts related to one sailing catamaran, among the biggest in the world, and a 66 mt with the Admiral brand, and two Tecnomar for Lamborghini 63 motor yachts. Furthermore, during the first half of 2021 the Company completed the construction of two yachts: one Tecnomar EVO 120 and an Admiral mega-yacht with 46 meters LOA.

The total value of the order book - that is the gross value of the contracts related to new yachts not yet delivered to clients - (Order Book) as of June 30th 2021 is equal to approximately 629 million Euros.

EBITDA is equal to 10.3 million Euros, increasing by +110% compared to 4.9 million Euros as of June 30th 2020, with a margin on sales of 12.7% compared to the 12% in the first half of 2020. The improvement in operating margins reflects several strategic interventions which have been implemented in the reference time period:

• Increase in product marginality through a luxury positioning in the market, in particular through the signing of commercial partnerships with other brands operating in the luxury industry;
• Increase in operating costs efficiency, with strategic investments to improve the shipyard's production capacity;

On February 15th, 2021 the Company inaugurated the production spaces entirely dedicated to the Tecnomar for Lamborghini 63 line. These spaces have been outfitted to recreate the exclusive and personalized atmosphere where clients will be able to finalize the outfittings of the motor-yachts.The first

• Investments in human capital aimed at developing internal know-how specialized in the more valuable phases of the supply chain.

EBIT has been equal to 7.9 million Euros, more than doubled compared with the first half of 2020, when it amounted to 2.9 million Euros, with a margin on sales increasing by 2.7 percentage points (9.7% compared to 7% as of June 30th 2020). Net profit reaches 4.6 million Euros, a significant increase compared to 1 million Euros in the first half of 2020.

During the first semester of 2021 TISG has carried out Investments amounting to

10.4 million Euros, mainly dedicated to the improvement of production capacity as planned in the TISG 4.0 project.

Net Financial Position ("NFP") is positive for 22.3 million Euros as of June 30th 20201, compared to negative net financial debt of 8.3 million Euros at the end of 2020, thanks to the contribution provided by operational management (for 6.5 million Euros), counter-balanced by significant investments (for 13.8 million Euros) and from payment of dividends (for 6.2 million Euros); NFP also benefits from the proceeds generated by the capital increase related to the IPO process for 44.5 million Euros.

Significant events as of June 30th, 2021

Hereinafter are provided the main events that occurred during the first semester of 2021:

-

delivery of a Tecnomar for Lamborghini 63 yacht has occurred at the end of July 2021.

• June 8th, 2021 marked the beginning of trading of TISG ordinary shares on Mercato Telematico Azionario, organized and managed by Borsa Italiana S.p.A.
• On June 14th, 2021 the company has announced the beginning of the executive planning phase of a sailing catamaran among the biggest in the world. The new Admiral yacht will have a length of 46.5 mt, the exceptional width of 17.3 mt and an impressive mast of 50 mt; this avant-garde project will reach the highest innovative standards, confirming its exceptional nature.
• During the month of June 2021, the homologation procedure, by the Court of Massa, of the debt restructuring agreement proposed by CELI S.r.l. pursuant to art. 182-bis of Italian Bankruptcy Law has been positively concluded. Therefore, the settlement agreements described in the Prospectus will not be subject to modification and no further sums will be due, either from TISG or from CELI S.r.l., with respect to those agreed in such agreements.

Outlook

The yachting sector, especially regarding the segment of yachts over 50 meters, has demonstrated even in the first semester of 2021 to be extremely positive, despite the fact that the global economy is still influenced by uncertainties related to the evolution of the COVID-19 pandemic and by the overall increase in raw material costs.

For what concerns the Shipbuilding division, the sale negotiations for new yachts are experiencing an acceleration throughout 2021, both for new Admiral vessels and Tecnomar motor yachts. In particular, 2021 highlights a sensible increase in order of the new Tecnomar for Lamborghini 63 line.