Welcome to Ferretti Group's update call. To present this updates, today we will have with us our Group CEO, Mr. Alberto Galassi, CFO, Mr. Marco Zammarchi, and CCO, Mr. Stefano de Vivo. Once we reach Q&A, we will remind the audience the process to ask questions. Mr. Galassi, the floor is yours. Buonasera. Good evening. Buonasera, good evening, good afternoon. Alberto Galassi speaking. Thank you for being with us tonight, this afternoon in Italia. I'm pleased to share with you the results of this company of the third quarter of the year, which are confirming that we are performing extremely well in a very complicated context globally and in macro, also for luxury. I would say that we are a luxury- we're an example of a luxury which is growing and growing quite well. So if you want to share the key data of the first nine months takeaway, so the first nine months of the year confirms the growth path of the group, and EUR 875 million of order intake, with the net revenues of the company of EUR 834 million, 10.4% growth year-on-year. A very important EBITDA result of EUR 125 million, with a 17.7% growth year-on-year. A stunning order backlog of EUR 1.5 billion, net cash in hands of EUR 288 million, and stable, continuous, and confirmed growth on EBITDA margin, which reached 15% with a growth of 100 basis points year-on-year. So if we move forwards to the midterm guidance of the company that we gave, well, you can see that the trend is absolutely confirmed, and it confirms that the execution of the plan that we presented to the investors in 2022 is absolutely happening, and it is happening very, very well. So revenues, as I said, in the first eight months, are 10.4% higher than the previous year, with EUR 8 billion. Adjusted EBITDA, you can see that in nine months of operation, we nearly reached last year's successful number of EUR 125 million this year, with a 15%, as I said, EBITDA margin. And our guidance was to get to a greater than 18.5, so we're perfectly in line, confirming that we will get there absolutely. Cash conversion is very important ratio. The first nine months confirmed 87.3%, which is in line with the guidance of greater than 95%. I forgot to say at the beginning that the revenues are showing an organic growth of more than 10%, which is definitely in line with the guidance that we gave. So a bit of business highlights. What happened in this very busy three months of the company, we had a lot of commercial activities. As you know, for us, it's very important because the season of the most important boat shows and our private preview, which makes us completely different than our competitors, because we have an event which is a private boat show, where we host all the best clients we have from all over the world. We greet them with something which is more than showing and presenting a boat. We're offering them lifestyle. It took place, and it took place very successfully. So we would say that, showing a bit of what is the season of the shows, you can see after that the outcome and the harvesting out of that season. So I think we have a, if I'm not mistaken, a video. Buonasera, Monaco. Good night. Amazing and a huge honor for me to be part of the family of the Ferretti Group. Enjoy this evening. So, what you've seen is what, Mick Jagger described as the most important, the best rock band in the world, the Måneskin. They performed for us, not because we paid a crazy budget, but because they love the idea of performing in Monaco, in front, on the water, the stage on the water, with a changing room. There was a beautiful, brand-new Wally. It was a super premiere of the Wally 150, and in front of an incredible crowd with more than 26 boats, not for sale, that our owners brought directly to see the preview and to gather in this event, which makes us different than anybody else. So the boat show season has been very, very good. I personally attended all the boat shows in Europe. Stefano de Vivo, the Chief Commercial Officer, went to the United States, one, the most important one in the U.S., in Fort Lauderdale. I can give you one digit. If you can see that, that this company, in the month of October, only in the month of October, and we all know the macro situation in the world in the month of October, we had nearly EUR 200 million of orders that the company was able to secure after the seasonal of the boat show. One flavor from United States and an important sale that took place a few weeks ago, actually, maybe last week, if I'm not mistaken. Last. Stefano de Vivo will give you a highlight and a flash on the American market. So we attended Fort Lauderdale International Boat Show, which is outside the scope of three months, but it's to give you a flavor of how our order intake is going. After a very strong order intake in September, we kept on with the tendency and actually increased and went on to sell over EUR 200 million of order intake for the month of October, which is a very strong result, even stronger than the previous year. So to focus on our brands, we, as CRN, can announce that we have sold a 67-meter that was signed at the Fort Lauderdale International Boat Show, and was part of this EUR 200 million order intake. Then we have Riva. Well, it- We had a beautiful unveiling. Riva, there's been a beautiful unveiling of a ship that Riva never built before, with this moving platforms in the stern, the Riva 82 Diva. The name says it by itself, and we presented it in Monaco. Only five units are already sold. Interestingly locations, U.A.E., Italy, Turkey, Spain, so the boat has never... It's not been presented in United States yet, and, it's been, there's been an incredible welcoming for this one. Same thing is happening for what we developed for another important brand, as important in terms of allure and fame and positioning as Riva, which is Wally. Stefano is the managing director of the brand, and will introduce you the latest news on the Wally planet. So we introduced in Cannes the wallypower50 as a project. The first one will be exposed at the Düsseldorf International Boat Show in January, and already three units of this yacht has been sold without having even seen the first one. The other great news is that we have presented the wallyrocket51 for the sailors and the sailing crowd of Wally. This keeps on showing how much we're pushing on the brand, and especially on the sailing and the greenest aspect that we can use when going, and most sustainable when going sailing. And this is gonna be a class of its own. It's gonna be the Ferrari Challenge. It's gonna be the- Corse Clienti. ... cup, the Corse Clienti. It's basically gonna be where our clients will be able to really fight it out, which is something that, for the Wally clients, has always been very important. But then we have also Ferretti Yachts, which presented something very sustainable. Ferretti never had a long-range vessel, never had a super sustainable fleet. This is a new range of models of Ferretti Yacht s that has never been built before. That's why we bought Ravenna. That's why we're speeding up the investments in Ravenna. That's why we are anticipating the CapEx expenses for Ravenna, in order to fulfill the market request. The demand for this yacht has been incredible. I think more than eight, nine units has been sold from the presentation. Globally, the first one in the Far East, in Asia Pacific, and we were able to produce, to manufacture, to design and manufacture an incredible yacht, which with as this new Ferretti, is a trademark, Ferretti Sustainable Enhanced Architecture technology. So we have a combined mix between solar panels and an energy bank, and to give you an example, this ship, the prototype, sailed from Cattolica in Adriatic Coast, in the middle of the Adriatic Coast, mid-Italy, to Cannes for the preview, in four days, and four days without using the generators. This is something that never happened in our industry. Never happened, at least, in Ferretti Group. All the materials, we have full focus on 100% durable, natural, and recycled solutions. So we're the first one using the lamellar teak from production offcuts, who has an international certification by FSC. Lower, total lower energy consumption with a weight reduction, a lot of carbon fiber, a lot of new material, and a fantastic but low... High efficiency hull, which provides an incredible comfort, without mentioning the solar solution, as you can see, of the bow, where you can have an opening, a retractable roof, and at the end of the day, you end up using some part of the boat that you never used before. So to cut long story short, for people who are not expert about yachting and boating, there is a new range of models that is entering into the market, that's gonna be manufactured in the new shipyard of Ravenna, and it's completely sold out. So thank God we were able to hit the target, and the acceleration on Ravenna construction, in order to produce the hull number 1, sorry, the hull number 2, at the end of this year. It's happening as we speak. Of course, on sustainability, this you're talking about the INFYNITO, a 90-footer, but you can see what's happening in the large ships. So we are concentrating on every size of our range. We've talked a lot in the past about the Riva El-Iseo electric. It's a 28-foot, 8-9-meter yacht. We've just told you about the INFYNITO 90, a 27-meter yacht. But we've also been working extensively with RINA, which is the Italian certification body, and we've been working with a fuel cell technology company called Ballard in Canada, and we can say that we have the first platforms between 60 and 90 meters- Mm-hmm. ... that are fully certified to be able to have a fuel cell technology on board. This means that today, we are now able to go talk to clients about projects in these sizes with fuel cell technology, which are actually buildable, because what you see around and other shipyards are talking about are still not certified. So the reality is that we have a projects, and we're ready to move along. And as we speak, the sales team is actually looking and talking to clients that are looking for this kind of solutions. If we move on to the financial results, I will start introducing the order backlog and the order intake before passing the word to Marco Zammarchi. If we look at the order backlog, you can see that, if we take the first nine months of 2022 versus the first nine months of 2023, we had an increase of 6.6%. From the beginning of the year, we've increased 13.6%. The order intake, you can see that the first nine months of 2023 have covered EUR 875 million. This order backlog and order intake today covers over 60% of 2024 revenues and 19% of 2025 revenues. Also, if we add on top of this, what we told you at the beginning of this call, where we have sold over EUR 200 million of order intake in October, this gives us a very good number to go and reach our targets and beat 2022 by far. If we do the order backlog by segment, here you can see that the composite yachts are basically in line with the previous year, where we had had a huge increase. So we are keeping with our strategy. We're not increasing our production of composite yachts at the moment. As you can see, the order backlog for the Made -to -measure has increased 17.7%, while the one for Super yachts has stayed constant at 2% increase. As a matter of fact, if we take the announcement of a 67-meter, you will see that in the last quarter, this will have a good increase of order backlog. I think, over to you, Marco, for the net revenue. Yeah. Mm-hmm. So, the revenues reflect the good order intake and together with the good condition of the marketplace for us. And so we present an increase of 10.4% in terms of net revenues without pre-owned, bringing the result to EUR 834 million, versus the prior year of EUR 755 million. And if we move to the analysis by segment, we can see that the major contribution to this growth is coming from the super yacht. Because in this segment, we are perceiving the contribution generated by the semi-serial. That is the extension of the super yacht to the next levels. In fact, we increased by 33.4% the revenue generated by this segment. On top of that, also, the other segment others is contributing. Because now we are taking benefit of the growth ramp in the revenue from the Wally sailing segment. Because now, Wally is also present there, and we are generating revenue there. In term of percentage, the biggest contribution is continuing to provide by composite yacht. That is 44% of the total, and Made-to-measure that continue to provide 37% out of the total. In term of distribution by geography, we can say that in the Americas, we have to record a decrease of -20.9%. And we have to say that after two years, like 2021 and 2022, that was over our expectation, now we have a certain normalization. On the other hand, thanks to the increase of the region EMEA, in particular in countries like Turkey or the Arab Arabic countries, we are more than offsetting this growth. And also APAC is contributing with a growth of 77%. In total, APAC is 12%, and it also a big contribution is coming from super yacht. Just to provide another value about the revenues, we continue to have a utilization rate of our plant of over 95%. So we cannot continue to grow to this space. That's the reason why, later on, we'll see a- Marco, if I may add- The CapEx. If I may add, for Americas, what we've seen in October and we're seeing in November, that gap is gonna be closed quite a bit, compared to what we're seeing today. And this is going back to a normal market, where, the summer season is, in Europe, is actually a moment where not many boats are sold in the Americas. Yeah. And in term, instead of profitability, as illustrated before by Mr. Galassi, we are registering a growth of 17.7% in term of EBITDA, with a total of EUR 125 million, and a percentage of 15%. That is 100 basis points versus prior year. So we are confirming the guidance of growing in the midterm to 18.5%. And, as a reflection, also, the net profit is continuing to grow, and in this case, the growth is 13.6%. And the total net profit of the first nine months is EUR 62 million. That is the same amount generated by the full year in 2022. And this growth, again, is supported by the- the industrial scalability, the strategic positioning of our company in the most profitable segment, and thanks also taking advantage of the pricing power generated by the solid backlog. In terms of CapEx, we have the total investment of the first nine months is EUR 17 million, of which 9.1 is expansion. Because we announced that in March, the acquisition of Ravenna. On top of that, we also increased the size of Ravenna because we have an agreement to increase additional 30,000 square meters. Just so, just for a reference, Marco, sorry. 70,000 square meters is what we acquired in Ravenna, that will become fully operational, starting operation at the end of this year, plus additional 30,000. So we are talking about 100,000 square meters- Yes. of potential of growth that we have in our facilities. Yes. They will enable us to give great one. Yes, that's bringing total an additional 30% of industrial capacity. So we have anticipated that as much as we can, the CapEx cycle in order to answer quite promptly to the market demand. There's a small, short video that shows what it was, what it will be, what we have done, and it's quite impressive to see that what we have done so quickly, because we acquired Ravenna in the month of April. Yeah. You can see how fast we are building up the area, how fast we are becoming operational. And the The dry dock. The dry dock, which is gonna be... Look at on the right side, how it is, how it was. The dry dock is gonna be ready. Again, we're very proud of this investment because the, the trend, and I want to highlight this again, and again, and again: despite the macro market condition, despite the luxury in general being hit by the macro, this company is continuously growing and continuously receiving confirmation of its stability, of its solidity, of how good it's the strategy to grow. What we were missing, it's basically its, sites, sheds, space to grow in the most important segment for us, which is the Made-to-measure. In the new generation of yachts, which are represented by the low emission or sustainable yachts of the INFYNITO range, Ravenna is answering exactly to these two points, driven by one thing only, the market demand. Scusi, Marco. No, no problem. So if we move to the net financial position, our net financial position is still positive, EUR 280 million. And, the... We consume, we invest the, the cash in order to increase, and increase the capacity of Ravenna, and also to be ready to produce our yacht as soon as possible. So we try to accelerate as much as we can, our CapEx cycle. Another note about the net financial position, the net working capital, that is decreased to -2.2%, is just a temporary decrease, because in order to be ready for the next year deliveries, we start delivering, producing as much as we can. As we said, our utilization rate of our plant is over 95%, and so is a temporary decrease, contraction of the net working capital. In fact, we expect by the end, to be, again, in the range of -5% and -10%. That is, that we consider quite normal for our company. So confirming that mid-term guidance of the company, we are confirmed by facts. Basically, we're just confirming that we are executing our plan, executing it by the plan, executing by the expectation of our, our shareholders, our investors. So, as I said, the first nine months of 2023 gave us EUR 834 million of revenues, so more than EUR 800 million- EUR 0.8 billion, with a 10.4% growth year-over-year. Technically, as you can see, confirming the execution in line with what we have promised. EUR 125 million of euro on EBITDA, with a 100 basis point growth, so 15% EBITDA margin, confirming the guidance. Cash conversion with 87.3%, greater than 85%. At the end, it's a solid company that is growing despite the general market weakness. It's a solid company in a luxury segment that continues to grow and makes it different than others, and there is no weakness. We confirmed what we told about the order intake of the month of October, even in the United States, with a pickup and a return in the positive trend of the Americas. So I would say the only thing that I can add is the full commitment of this management to continue achieving the results that we promised. We are just trying to show you in a nutshell, as quick as possible, as effective as possible, the execution of what we promised in a difficult market, sorry, macro scenario, which is definitely not hurting our positioning in the high end of the top luxury segment. So the presentation is finished. We are here for to answer any question that you may have, any doubt, any deep dive, myself and the team, and I want to be honestly want to remember and to thank nearly 1,800 people working in the companies, continuous growing and giving to the world, what the world is saying and the market is saying, are, today, the best range of products in the industry. Thank you, Mr. Galassi. We've reached the Q&A portion of the presentation. Questions will be allowed in the order in which they are received, and priority will be granted to audio questions. For those connected to audio, kindly dial star five to signal that you have a question, after which we'll call upon your name and audio access will be granted. We kindly ask to limit questions by two per institutions. Our first question would be from Niccolò Storer from Kepler. Niccolò, the floor is yours. Good afternoon. Thanks for taking my question. The first one is on cash flow dynamics, in particular on CapEx. You are already at EUR 107 million. You highlighted you are accelerating on Ravenna. What should we expect for the full year? And then working capital, you have had a worsening of the situation. It's fair to say that you have to build some mode for the bank or you're maybe to refill maybe your dealer networks, or in any case, if you can elaborate a bit on that. The other question that I have is a clarification. You mentioned your backlog coverage for 2024 and 2025. I must have missed it. Can you please say it again? Thank you. Okay. Marco, the premier second. Yeah, about the cash flow dynamics and the CapEx- [继 续] We have, as we said, our CapEx is EUR 109 million. We believe at the- Awesome. ... at the year end, we should be in the range of EUR 130 million-EUR 140 million, if we are able to fulfill with our commitment to be as much as we can operative in Ravenna, because Ravenna has said that we started the operation by year-end, and to be fully operative by September 2024. So it's a big commitment for this company. So this is what we have planned about the CapEx. In terms of net working capital- ... In terms of net working capital, instead, as I said, because we wanted to be ready and to be on time with all the production, we increase as much as we can our production in this moment, so we have a temporary contraction of the net working capital. But as I said, we believe that by year-end, we should be in the range of -5% to -10%. The reason is because we anticipate some purchases of raw material, because we want to have the production line fully operative, fully online, so we increase a little bit our raw material inventories. But not, as you said, to increase the stock in our dealer, because as, Mm. As we said, we never deliver our stock to our dealer. We sell through the dealer, not to the dealer. On the other hand, we increase a little bit the stock in the U.S. market, but because simply because this is the big season for the American market. So that's the explanation of why we are at -2.3%, but also because we are confident to be back to -10% by year-end. Sorry. So Marco, also to stress once again, the stock in the U.S. market, it's not stock to dealers, it's stock for Ferretti Group. So on our balance sheets, it's a cost, it's not a net revenue. For the order backlog coverage, we have more than 60% of 2024 revenues covered by our backlog today, at the end of September, and we have nearly 20%, 19% of revenues of 2025 covered. If we look at the larger yachts, with a sale of a 67-meter, the next available slot is for the autumn of 2027. So we're pretty much covered there. And if we go on to the super yachts, semi-custom, so the Navetta, Custom Line 50 and the Riva, 54-meter. ... 54-meter, the next available slot is for 20—for the end of 2026. So also that part is very well covered. ... Made-to-measure is the same, like the Riva 130 Bellissima or the Custom Line Navetta 42, there's nothing available before summer, autumn 2025? Correct. So it depends also on the size of Made-to-measure super yachts and CRN are completely sold out. Thank you very much. Our next question is from Emanuele Gallazzi from EQUITA. Emanuele, the floor is yours. Can you hear me? No, let's see. Yes. Yes, we can. Please go ahead. Okay, thank you very much. Sorry, and good afternoon, everybody. Two questions from my side. One is on the order intake. First of all, thank you for the details on the order intake. Given the EUR 200 million orders you got in October, you are almost close to the 2022 level. So I was wondering if the flat order intake year-on-year is still the target for the company. And my second one is on APAC, still very strong in the third quarter. If you can give us more color on this and on the evolution of the market there. For the target, I will leave it to my boss. I hope he doesn't change it so that I can actually get a bonus at the end of the year. Clearly, we never stop, and we try always going past. If we do go past, it means that we are covering a lot more of 2025 and of 2026 as we speak. So for the target, maybe Mr. Galassi would want to add something else. For as far as Asia Pacific is concerned, we can tell you that we see confirmed the trend that we saw in China in April when we went to a private event for our clients and for our owners in Shenzhen, where we had over 10 Made-to-measure yachts exposed there of our clients. It's like Europe when we came out of COVID in 2020, 2021. They want to buy and have fun, and the fact that our brands and our group, Ferretti Group, is the most renowned in the area because it was the first mover at the beginning of 2000 is making so that we are achieving fantastic results in the area. Also, we are developing enormously other markets like Thailand, like Indonesia and Australia, where we were not as strong four or five years ago, and now we are keeping on building on the success and on the work that we've done in the last four or five years. Back on the crystal ball, we don't have it, and we don't need it. So if you see the order intake and the order backlog, if you go back to the slide for a second, you can see that, ... Exactly. You can see last year it was EUR 1,162 million. This year it was in September, EUR 875 million. We said we had and we secured... By the way, let me remind you, when we mean order, for us, is a firm order with at least 10% non-refundable down payment. To final client. To final client and not to dealer. So it's an internal policy that we, I would say, are the only one to have applying here. So, definitely, I'm expecting to beat 2022 numbers. Stefano de Vivo is touching everything possible, but honestly, we know what's cooking, we know what's under negotiation, we know that, we have super yachts, made-to-measure yachts, and also, composite yachts in negotiation. So we are expecting to be in 2022 digits or more. Thank you. We'll take one written question, which is from Andrea Gough from Walgreens Boots Alliance. Given the very positive set of results and the high cash balance, are you considering to raise the dividend? Well, let me tell you... Thank you for the question. It's a shareholders' decision. It's not a management decision. Last year, this company paid the dividends also during COVID, so I can just go back to history and the track record of the shareholders of this company. We never stopped paying dividends when we were not listed. We paid dividends, I would say 30%, if I'm not mistaken, when we listed in Hong Kong, and then we raised to 40%, before listing in Milano. I'm expecting the shareholders to have a very keen eye on the interest of the investors of this company. As you can see, we have a lot of liquidity. I'm not expecting the shareholders, and the management proposal to the shareholder will be to be, to have a generosity towards our investors. But again, as I said before, it's not for me to decide, and I can just propose, and my team is fully aligned on the fact that this company is a solid company with zero debt, and we should reward the investors that believed and trusted in the company, in the management, in the shareholders, and in the execution of this challenging, but as you can see, achievable plan. Thank you very much, Mr. Galassi. I think in the interest of time, we will conclude our presentation. Thank you very much. Thank you. No more questions? No, no, it's finished with that. Thank you very much for your time, and, thank you for following us and listening to us, and investing, and believing, and trusting in us. Grazie!