Boating market monitorMarket insight of the international recreational boating industry

Cannes , 12th September 2018

2

Disclaimer

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33

Document objectives

• Global recreational boating market trend analysis bygeographical area and boat segment

• Global superyacht market insights

• Italian recreational boating industry evolution

Global boating market

55

Global boating market: retail value trend

Note: The new boating market does not include the PWC and other small boats less than 2.5 meters. The figures consider the revised estimates of NMMA and adjustment in the historical exchange rateSource: Deloitte analysis on data from boating industry associations, specialized media providers and interviews with global operators

~25.0

2008

18.9

2015

CAGR-8.4%

20.6

2017

16.9

2014

14.8

YoY+9.0%

CAGR+13.0%

CAGR+4.9%

2016

CAGR+6.1%

~15.0

1999

~23.0

2006

Evolution of global new recreational boats market value(Billions of €; percentage)

New Build

66

Global boating market: retail value by boat type

Inboard Outboard & Inflatables Sailboats

8.3

10.3

9.2

10.9

CAGR9.5%

2014 16 1715

CAGR17.8%

5.4

2014 15 16

6.5

17

4.5

7.4

CAGR 3.9%

15 17162014

2.32.12.22.0

YoY - 11.3% 12.2% - 19.9% 18.9%

Evolution of global recreational boats market value (Billions of €; percentage)

5.3% 14.7% - 9.4% -4.5% 7.4%

Note: The new boating market does not include the PWC and other small boats less than 2.5 meters. The figures consider the revised estimates of NMMA and adjustment in the historical exchange rateSource: Deloitte analysis on data from boating industry associations, specialized media providers and interviews with global operators

New Build

77

Global boating market: retail value by region

Inboard Outboard & Inflatables Sailboats

New boats market breakdown by geographical area(Percentage)

47%

Europe

RoW

NorthAmerica

2017

100%

24%

29%

Trend Trend Trend

23%

Europe

RoW

NorthAmerica

2017

100%

10%

67%

44%

Europe

RoW

NorthAmerica

2017

100%

45%

11%

FlatGrowth Decrease

Note: The new boating market does not include the PWC and other small boats less than 2.5 meters. The figures consider the revised estimates of NMMA and adjustment in the historical exchange rate. The geographical market breakdown considers the sell-out country of destination and not the owners nationality Source: Deloitte analysis on data from boating industry associations, specialized media providers and interviews with global operators

New Build

88

Superyachts market: deliveries evolution

Source: Deloitte analysis on data from The Superyacht Group and interviews with industry operators

Snapshot 2015-2017 evolution

132

17

134 131

1310

-2.1%

2015

Motor

149

Sailing

2016

147141

2017

81.4

+11.1%

2015

Sailing

2016

75.0

85.5

14.9

77.771.0

Motor

2017

4.0

100.4

3.7

GRT delivered by type(thousands GRT; percentage)

Units delivered by type(# of boats; percentage)

- -5.0%+6.0% -8.0% +34.0%YoY -YoY

99

Superyachts market: global build-up 2017

Source: Deloitte analysis on data from The Superyacht Group and interviews with industry operators

69

32

10 11

12

134

Total

141

30-39mt 40-49mt 50-59mt

71

80+mt60-79mt

35

Sailing

Motor

7

2

1

1

3

13

12

Superyacht market build-up 2017(# of boats; percentage)

Change in unit vs 2016

-18 0+3 +1 +6 -8

GRT (thousands)

17.0 6.814.4 14.7 47.5 100.4

Italian boating sector

1111

Italian shipyards: value of production (new build)

New build Value of Production (Billions of €; percentage)

YoY +14.0%

CAGR +13.1%

CAGR+6.2%

2017

CAGR-21.7%

2008

3.6

3.2

3.6

20092007

2.7

2006 2010 20122011 2015

1.7

2.3

1.4

1.8

2014

2.0

1.5

20162013

1.4

2.0

YoY - 11.4% -25.7%1.2% -24.8% -11.0% 1.5%-24.4% 7.9% 15.3%16.4% 14.0%

Source: Deloitte elaboration based on players financial statments and data collection from industry players

1212

Italian shipyards: 2017 production analysis (new build)

Note: Inflatable boats include RIBs and Maxi-RIBs The analysis by lenght is made on a panel of player for which data were availableSource: Deloitte elaboration based on players financial statments and data collection from industry players

8.6%

2.3

86.2%

5.2%

2017

Outboard

Inboard

Sailing

Inboard

Sailboat

Outboard &

Inflatable

Breakdown VoP new build 2017(Percentage)

+6.2%

<12mt 12-30mt

+29.7%

Performance by length class (2017 vs 2016 YoY)

<12mt >30mt12-30mt

+1.6%

+42.7%

0.0%

+13.6%

12-30mt

+12.6%

<12mt >30mt

+10.9%+13.2%

Segment performance

+23.5%

+14.3%

Total

>30mt

+12.8%

<12mt 12-30mt

+15.6%

+7.2%

+14.0%

1313

Italian shipyards: expected performance 2018

~2.511.9%

2017

2.3

2018E

VoP expected evolution(Billions of €; percentage)

Note: Inflatable boats include RIBs and Maxi-RibsSource: Deloitte elaboration based on players financial statments and data collection from industry players

Total

~0.1

~2.2 ~0.2

Sailboats

~2.5

Outboard & Inflatable

Inboard

Break 86.7% 8.5% 100%4.8%

Breakdown VoP new build 2018(Percentage)

1414

Italian shipyards: boat segments performance

VoP trend by boat segment(Billions of €; percentage)

Note: Inflatable boats include RIBs and Maxi-RIBsSource: Deloitte elaboration based on players financial statments and data collection from industry players

Inflatable & Outboard

2.0

0.2

1.8

SailboatsInboard

0.1 0.10.1

2.2

0.10.2

2016

2017

2018

YoY16-17

+13.2% +23.5% +14.3%

YoY17-18

~+10.7%~+10.9% ~+17.6%

1515

Italian shipyards: export vs domestic market

2013

1.4

93.0%

7.0%

1.5

6.5%

93.5%

Domestic

2017

2.3

88.2%

11.8%

1.7

91.3%

2.0

8.7%

Export

20162014 2015

85.9%

14.1%

Exported production share(Billions of €; percentage) YoY

16-17

+35.9%

+11.1%

Deloitte elaboration based on players financial statments and data collection from industry players

~87.0%-88.0%

2018E

~2.5

~12.0%-13.0%

Export

Domestic

Expected 2018(€ billion; percentage) YoY

17-18

+2.6%

+13.2%

1616

Italian shipyards: 2017 export analysis and 2018 trend

Export

Domestic

VoP 2017

0.3(14.1%)

2.0(85.9%)

2.3Breakdown export 2017

(Percentage)

APACNorth America

Western Europe

ROWCentral & South America

Total Export

Eastern Europe

4.6% 100.0%1.5%15.4%

22.3%

38.3%

18.0%

Note:The geographical breakdown considers the sell-out country of destination and not the owners nationality Deloitte elaboration based on players financial statments and data collection from industry players

Trend 2018

Growth Moderate growth Stable

1717

Superyacht market deliveries: Italian shipyard positioning

Source: Deloitte analysis on data from The Superyacht Group and interviews with industry operators

-4.7

-3.7+2.5

+3.0

-3.7

40%

13%

1%

Italy

+0.5

+3.6

39%

Nethelands

15%+2.2

10%

USA

1%

5%

China

1%

Taiwan

-1.3

3%

+1.5

RoW

6%

Turkey

5% 6%10%

6%3%

10%

UKUAE

7%

Germany

9% 9%

2017

2016

Superyacht deliveries market share by country(Percentage; delta p.p)

8%

33%

Nethelands

9%

USA

6%

20%

5%

Italy

22%

+23.9

0%

25%

China

0% 1%

-20.1

RoW

2%

+5.6

3%

8%

UK

2%2%

Taiwan

5%

+0.1-3.0+0.7

+1.8

UAE

-4.8-4.9

+0.7

43%

2%

TurkeyGermany

1%

2017

2016

Units

delivered

Gross

tonnage

1818

Superyacht market order book: Italian shipyard positioning

Note: (1) Latest available dataSource: Deloitte analysis and estimations based on countries boating associations. specialized media providers and company data and interviews with global operators

RoW

8.9%

1.6%

UAETaiwanGermany

3.6% 4.8%5.2%

Turkey

13.4%

UKNethelands

14.8%

Italy China

40.9%

USA

3.9%3.0%

Superyacht order book market share by country(Percentage)

0.6%1.2%1.3%

USA UAETaiwanUK RoW

12.3%

21.8%

Nethelands Turkey China

11.1%

1.6%

Italy

24.8%

1.8%

Germany

23.5%

Units

delivered

Gross

tonnage

1919

Key takeaways

Source: Deloitte Analysis

Boating Market Monitor 2018

• In 2017, the global boating market value is €20.6 billion registering a positive trend

compared to its historical values (+9.0% YoY 2016-17)

• The inboard market value is €10.9 billion and is the main boat segment, representing a

48% share of the entire retail global market. The outboard and inflatable segment shows

the best growth performance +14.7% YoY 2016-17 with a value of € 7.4 billion

• The Superyacht Market shows a positive trend in terms of gross tonnage delivered

(+11.1% CAGR 2015-17) with a shift of deliveries toward larger size yachts

• In 2017 the Italian production value is equal to €2.3 billion, growing YoY at 14.0%

• Focusing on length classes, the segment with the highest growth is the one between 12 and 30

meter (15.6%) followed by the superyacht (+30mt) segment (+12.8%)

• In 2018 the Italian production value is expected to reach ~€2.5 billion, growing at an

expected YoY of 11.9% confirming the positive trend of the past years

• The inboard segment is the main segment of focus for Italian shipyards and is expected to

have a share of 86.7% on total VoP in 2018

• In 2018 the segment with the highest growth in terms of production is expected to be the one

of Sailing Boats (~17% ) followed by the inboard segment (~10% )

• Italy confirms its position as market leader in the superyacht market in 2017 ranking #1

in terms of units delivered in 2017 #1 in terms of units under construction

Global Market

Italian Market

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