Targeting Owners · Investors · Bankers · Brokers · Lawyers · Advisors · Suppliers · Senior Shipyard Management

The most powerful and candid report on the true state of the superyacht market’s new build sector.

New format

New analysis

New data

SUPPORTED BY

Targeting Owners · Investors · Bankers · Brokers · Lawyers · Advisors · Suppliers · Senior Shipyard Management

ANNUAL REPORT2015

If you need to know who is building, who is financially stable or who is struggling to stay afloat, then this exclusive report is a vital piece of business research and analysis for anyone in the market, including owners, investors, bankers, brokers, lawyers, advisors, suppliers and all senior shipyard management.

The Superyacht Intelligence Annual Report 2015

Detailed analysis Real facts

Comprehensive insight Accurate figures

Unrivalled data Honest reports

Incredible information Powerful statistics

Intelligent accuracy Candid opinions

We have recorded, verified, analysed, scrutinised and reviewed what is really happening in the new build sector in order to create a candid picture of the state of the superyacht sector. From what we have found, we are entering an interesting phase.

We have also created some new market segmentation to allow our readers to see more clearly how the market is built. It is not just one big market, but comprises several specific markets.

From now on all data and analysis from The Superyacht Intelligence Agency will follow these core new segments – using geographical splits, more logical size segments and some intuitive age segments, in order to highlight more accurately strengths and weaknesses of the market over the past two decades.

If you want to know what the real situation is in the superyacht market, then you need to order your personal copy of The Superyacht Intelligence Annual Report 2015, brought to you by the editors of The Superyacht Group and the analysts of Superyacht Intelligence.

Exclusively available to current paying subscribers of The Superyacht Report and all subscribers of Superyacht Intelligence (who subscribed prior to December 2014).

If you order The Superyacht Intelligence Annual Report 2015 before the end of February:You can purchase your copy for the discounted price of £95.00 (plus p&p).

Use offer code: SIAR2015

Note: post publication the retail price will be £125.00 per copy, (plus p&p).

We will send out copies to all eligible subscribers before the end of February. If you would like to order more copies, please contact: charles@thesuperyachtgroup.com.

If your subscription has expired or you would like to subscribe: Subscribe today to make sure you get your personal copy of The Superyacht Intelligence Annual Report 2015.

The Superyacht Intelligence Annual Report 2015

Order before the end of February for the discounted rate of £95.00 (+p&p.)

Superyacht Intelligence.com12 months access to Superyacht Intelligence.com, offering you live data of the 5,000+ superyachts that make up the global order book and the global fleet.

Rate £250.00 per annum

the superyacht report

16

the superyacht report

17 the aNNuaL report / The State of the Industry – World Wealth the aNNuaL report / The State of the Industry – World Wealth

as the rest of the world trundles towards a recovery of sorts the good

news is that for uhNWIs there has been little impact on their cumulative wealth. In fact, the number of billionaires has continued to grow this year, according to a report by Wealth-X and credit suisse. the report identifies 2,325 us-dollar billionaires, with a combined wealth of $us7.3 trillion, an increase of seven per cent on 2013. Factor in that the average personal fortune of each billionaire has risen to $us3.1 billion and it appears that the client pool is looking bountiful heading into 2015.

this is especially encouraging when compared with the superyacht Intelligence agency’s analysis of superyacht owners’ net worth: 46.7 per cent of existing owners have a yacht between 30m and 60m, with an average net worth of around $us2 billion. this is comfortably within Wealth-X’s own uhNW average, and indicates to those who don’t already have a superyacht that ownership at the lower- to medium-size range is easily within their grasp.

entering 2015 the industry’s traditional target markets abound, with the us in particular providing an abundance of both existing and potential owners. Indeed, according to credit suisse’s Global Wealth Databook 2014, america’s uhNWI population accounts for 49 per cent of the global total. With the creation of 9,500 us uhNWIs since 2013 – more than the total chinese uhNW population (7,600)

– it will remain the superyacht industry’s marketplace of choice for some time.

With its relatively business-friendly fiscal regime, the uK (with 4,700 uhNWIs) has risen to fourth in credit suisse’s ultra-rich table, ahead of top-band-targeter France (4,100) and closing in on Germany (5,500); the ever-lucrative russian market is ranked eighth, with 2,800 ‘one per cent-ers’.

While these markets represent well-trodden paths for the superyacht industry, expanding the size of the fleet is reliant on forging bonds with new markets. of these emergent markets the Wealth-X/uBs report identifies asia as the one growing most vociferously. the figures show an 18.7 per cent increase in asian billionaires, contributing 30 per cent to the global billionaires’ pot. Furthermore, the report predicts that china will usurp america as the leading billionaire hub by 2027, a sure sign that the industry must continue its work to crack this, as yet, elusive market.

the appetite of chinese buyers appears to be on the rise, indirectly evidenced by the purchase of sunseeker by Dalian Wanda Group’s purchase of sunseeker, its founder Wang Jialin’s reputed purchase of pyc-compliant Equanimity, and the appetite of chinese yard pride Mega yachts to begin work on 108.8m tomorrow. however, this remains a market in its infancy, and attracting the chinese to custom yacht building continues to challenge the shipyards’

leading marketeers. If one looks at the owners of the 20 largest superyachts on the water, according to data provided by the superyacht Intelligence agency, 75 per cent come from the Middle east, america or russia, with Greek owners taking up the remaining places.

russian owners continue to prove very attractive to brokers, as the average Loa of russian-owned superyachts is 73.8m, almost 10m longer than the roW average. the age of owners building in this top bracket is also encouraging – 30 to 50 years old, comprising 13 per cent of the ownership pool – because it is this group that, with time on their side, is likely to commission further new build projects in the future. that is, however, why there has been such a piqued response among the sales fraternity to the continuing us and eu sanctions being placed on

russians and their assets, which some have blamed for 2014’s relatively disappointing new build market performance, when evaluated in the context of a rebounding global economy.

It seems then that established groups continue to represent the industry’s primary source of revenue, but the pool of potential clients is growing at an encouraging rate and this has the potential to open new doors for the superyacht market. superyacht Intelligence data indicates that, by 2022, there will be 1,191 asian billionaires to sell to, alongside 301 [projected] billionaires in Latin america and 120 in africa and oceania combined.

at this point, these are relatively modest markets for the superyacht fraternity, but there has been a visible effort to make an impact in these territories, and the assurance of their

future prosperity should be seen as a positive. however, the old bastions of industry collateral – North america, europe and the Middle east – will continue to contribute a vast proportion of the world’s billionaires (60.45 per cent) in 2022. as these regions are responsible for such a disproportionately large number of superyacht owners, the industry should welcome these encouraging figures.

It is clear that, in 2014, uhNWIs were not only thriving, but also rapidly growing in both number and individual wealth. however, just because the longevity of the source is assured, it does not mean the industry can rest on its laurels. Last year showed modest returns for the new build market and it remains down to the yards, brokers and industry as a whole to compete effectively in an increasingly crowded luxury sector market. g

To commenT on This arTicle,

email: TAR@supeRyAchTRepoRT.com

wiTh subjecT: money makes The world

go round

MoNey MaKes the WorLD Go rouND ...

e

$

e

$

£

£

e$

£

e

e$

£

the age of owners building in the top bracket is encouraging – 30 to 50 years old, comprising 13 per cent of the ownership

pool – because it is this group that, with time on their side, is likely to commission further

new build projects in the future.

Despite continued uncertainty surrounding the broader global economy, the wealth of the ultra-rich continues to grow, as traditional client hotbeds bolster their uhNWI numbers, offering encouragement to the industry. Will Mathieson reports.

Credit SuiSSe’S ultra-riCh table: number of unhwiS

1. usa 62,8002. china 7,6003. germany 5,5004. uK 4,7005. france 4,100

24 25 THE ANNUAL REPORT / The State of the Industry – Marinas and Cruising THE ANNUAL REPORT / The State of the Industry – Marinas and Cruising

opposition and reduced liquidity in the investment market. Analysing the number of marinas that have emerged over the past decade and considering the number of berths needed going forward, all of these limiting factors clearly need to be overcome.

So where might you go if you had a 100m+ yacht? Developments last year aiming to satisfy the growing need for marinas with capacity for the larger end of our market include Rivergate Marina and Shipyard in Queensland, Australia, which announced in November

2014 it is able to offer berthing for vessels up to 234m in length. Port Denia, Spain, certainly seems to have benefited from the change in matriculation tax regulations, upgrading the 130m berth alongside the port for their use. Port Tarraco can accommodate yachts up to 130-160m, and Qatari Diar, the investors behind them, have two further similar marinas under negotiation. Limassol Marina, Cyprus’ largest infrastructure project at a cost of €350 million, was officially opened in July 2014 and has 115m berths.

You can’t consider the marina landscape in 2014 without mentioning the growing trend of establishing partnerships and strategic alliance: OneOcean launched with great pomp at the 2014 Monaco Yacht Show – creating a network between industry heavyweights Rybovich in the USA, MB92 in Barcelona and Marina Port Vell. Karpaz Gate became the 18th member of the ART ‘Destinations’ Network, which gives customers discounts and benefits. Camper and Nicholsons Marinas extended its ‘1782 Club’ network with the addition of Dukley Marina in Budva, Montenegro, Marina and Yacht Service Trogir, Croatia.

Although it seems capacity is close to being breached, marina infrastructure continues to find ways to accommodate the fleet. The numerous partnerships made over the year present an attractive option for marinas, globally, as they try to acclimatise to both the growing length of yachts and their increasing number going into 2015. g

To commenT on This arTicle, email: TAR@supeRyAchTRepoRT.com wiTh subjecT: berThing pains

www.cnmarinas.comPort Louis Marina

GRENADAGrand Harbour Marina

MALTACala Ponte Marina

ITALYPorto San Rocco

ITALYMarina Trogir

CROATIADukley MarinaMONTENEGRO

CAN146 SYR ad 35x210_DPS_V3.indd 1 17/12/2014 18:15

Athens MarinaGREECE

Sani MarinaGREECE

Çeşme MarinaTURKEY

Palmarina BodrumTURKEY

Limassol MarinaCYPRUS

Yas MarinaABU DHABI

www.cnmarinas.com

CAN146 SYR ad 35x210_DPS_V3.indd 2 17/12/2014 18:15

total fleet & yachts delivered 2005-2014

0

1000

2000

3000

4000

5000

3,356

3,099

3,604

3,881

5,000

4,000

3,000

2,000

1,000

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

4,108

4,317

4,491

4,690

4,8364,994

100

150

200

250

300

188258 247 275

227 206 174 182 146 150

average size of yacht iN BUild & delivered

yachts delivered over 45m+

0

10

20

30

40

50

2010 2011 2012 2013 2014

50

40

30

20

10

0

46.6m

40m

45.1m 45.3m 45.9m 45.4m43.57m43.57m

47.8m

44.5m

2015

???? ????

in build

delivered

0

10

20

30

40

50

0

10

20

30

40

50

0

10

20

30

40

50

60

70

8080

70

60

50

40

30

20

10

01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

10 9

1816

2118

2123

29

3936

46 45

69

50

64

59

53

44

53

yachts delivered over 90m

0

1

2

3

4

5

66

5

4

3

2

1

0

2006 2007 2008 2010 2011 2012 2013 2014

1

0

6

0

5

1

3

2

6

total fleet

delivered

0

10

20

30

40

50

2009

the superyacht report

50

the superyacht report

51the annual report / Gross tonnage analysis the annual report / Gross tonnage analysis

Gross tonnage is a unitless figure of volume accounting

for all enclosed spaces up to the hull framing. this is commonly confused with displacement, a totally different gauge measuring the vessel’s mass. not only does the gross tonnage clarify the actual size of the vessel but also enables far more detailed analysis of areas such as the interior volume, handling, berthing, operating expenses and pricing, something that the consideration of loa alone cannot provide.

since the International convention on tonnage Measurement of ships 1969 entered into force in 1982, vessels have been categorised under the three gross tonnage thresholds

for classification and regulation in place of loa. these categories are: under 500gt, 500gt to 3,000gt and over 3,000gt. Within these categories superyachts are subjected to very different regulations from one another, including safety requirements (solas, lsa and IsM), regulation fees, berthing fees, marina limitations and security certifications.

the reason superyacht Intelligence is placing more emphasis on the use of gt is because we consider it a more accurate representation of actual size and we believe there is more value in comparing vessels based on this as opposed to using length alone.’

the top 100throughout the industry, lists of the top 100 superyachts are generally compiled by their loa alone and disregard gross tonnage. however, by creating a list of the top 100 vessels by gt (full list on superyachtintelligence.com and thesuperyachtreport.com/extras) and comparing the differences, the top 100 superyachts in the fleet are very different. the new gt list replaces 18 per cent of the superyachts that feature on the original list, some of which are quite surprising, such as the 99.15m motoryacht Christina O, the 36th largest yacht in the fleet by loa, with a gt of 1,802 drops to 124th. there is also plenty of movement among those that have made it onto both lists. For example, Prince Abdulaziz, the sixth largest superyacht in the fleet by loa, has dropped to number 25 on the gt list, coming in just behind 103.82m Loaloat Al Behar, which was 34th on the loa list.

When creating a list of the top 100 vessels by gt and comparing the

differences, the top 100 superyachts in the fleet are very different.

180m

155m

139.3m

147.25m

136.33m

126.18m

116.41m

134m

200m

150m

100m

500m

0

5%

27%

68%

top 10

the rest

azzam

0

50

100

150

200

azzam18,000gt

162.5m

eclipse 13,564gt

162m

dubai12,488gt

al said15,580gt

topaz11,589

fulk al-salamah10,864gt

octopus8,343gt

turama8,343gt

al salamah12,234gt

serene8,231gt

0

5000

10000

15000

2000020,000gt

15,000gt

10,000gt

5,000gt

0

18,000gt

azzam180m

13,564gt

eclipse 162.5m

12,488gt

dubai162m

15,850gt

al said155m

11,589gt

topaz147.2m

4,620gt

princeabdulaziz

147m

4,561gt

mahroussa145.7m

12,234gt

al salamah139.3m

7,600gt

rising sun138.37m

figure 1: gT comparison of The Top 10 by Loa (m) figure 2: Top 10 yachTs by gT Loa (m)

figure 3: disTribuTion of gT of The Top 100 by Loa

10,864gt

fulk al-salamah136.33m

Rates* 1 x copy The Superyacht Intelligence Annual Report 2015.

UK – £125.00 per annum

EU – £130.00 per annum

USA & ROW – £140.00 per annum

* from 1 March 2015

Charles Finney, Account ManagerE. charles@thesuperyachtgroup.com

To order your copy today: T. +44 (0) 207 801 1019W. thesuperyachtgroup.com/subscribe

ANNUAL REPORT2015