Good afternoon, everyone, and welcome to Ferretti Group First Half 2025 Results Webinar. Thank you all for joining us. We appreciate your time and interest in Ferretti Group, as we share an overview of our performance over the past quarters and discuss the outlook for the future. Let me begin to introduce our speakers. Mr. Alberto Galassi, our Chief Executive Officer, Mr. Marco Zammarchi, our Chief Financial Officer, and myself, Margherita Sacerdoti, Head of Investor Relations and Sustainability. Today's agenda will cover key highlights from the first half, business dynamics, and financial results, followed by a Q&A session. Throughout the webinar, you may submit your written question using the Q&A function in the Zoom menu. We will address as many as possible at the end of the presentation. You can also ask live questions by using the Raise Your Hand feature in the Zoom platform. With that, let me hand it over to Mr. Galassi to get us started. Mr. Galassi, the floor is yours. Buongiorno, good morning, hi everybody. Alberto Galassi here. Glad to share with you the results of the first half of 2025. To be honest with you, I'm very happy because we are constantly growing in most of the key indicators of this company. As you can start, freeing from the revenues, we grew 1.5%, brand new boats of course, so EUR 620 million of revenues. Adjusted EBITDA grew like by 2.5%, so we are nearly EUR 100 million, EUR 99 million versus the EUR 97 million of the previous year. The EBITDA margin adjusted from 15.8% of the first half of 2024 to 16% of 2025. Now, net backlog is - 3.2% from EUR 786 million- EUR 761 million. We will go back into the details of the backlog composition, but basically we're talking about two made-to-measure yachts switched from June to July, so nothing to be worried about. On the following page, I'll tell you what's going to be the outlook of the next of the 2025 and 2026 because the most important boat shows have to happen still. We have the Monaco preview, the Cannes boat show, the Monaco yacht show, and the one in America, and of course also the one in Hong Kong. Why I'm showing you this picture is because we will present eight brand new models in that. It gives me the opportunity to spend a little bit of time to describe you what is the current market situation. The current market situation is a market divided in many, many different areas and aspects and segments. There's definitely a market which is suffering, which are the low composite, the entry-level models, unbranded. There's definitely some shipyards which are suffering, it's a fact, and there's a lot of uncertainty all over the world. That being said, why Ferretti Group is performing, why Ferretti Group is delivering numbers, why Ferretti Group confirms the guidance this year? We do believe that our business model, which is very different, is based on few units divided by seven brands, positioned in the very high-end market level of the industry, and sold not to dealers, but through the dealer network in 71 countries in the world, makes us very different than others. What we see is the volumes are suffering. If our growth was driven by volumes, we would be suffering today. If our growth was driven by volumes of one brand or two brands, yes, still the same situation. If our growth was driven and our future is driven by the possibility of selling more units on the low end of the range, it's a different planet. Because what's changing now is the time and the attention. Time between the negotiation and the signing of the contract is longer than expected. I made the example of the two made-to-measure yachts that made the difference between one quarter and the other quarter. Please, to put things in the context, remember that Ferretti Group is with an average price tag of EUR 6 million and above, including super yachts, and in the made-to-measure, we grew up to EUR 5.6 million. There's been a huge growth in the price tag, and Margherita will drive you through that later on. What I'm telling you is that in the month of April, with the tariffs announced, the market completely changed. There was no attention on the possibility of changing the boat or buying a new boat. In the month of May, market to market, back to normal. In the month of June, there's been the Iran-Israel war, which is a fact which never happened before, the bombing of a Gulf country like Qatar is an important market. That being said, this company was able to provide the results we're providing you today. The confidence of the situation of the negotiation with the tariffs to conclude and to finish. What we are seeing in the month of July in terms of negotiation, we have more than EUR 420 million of negotiation going on, including super yachts. It's a strong signal that we have the possibility to achieve the target, definitely, and to go on with a good outlook for 2026. Let's put things in a context. The market has changed, the market is difficult, the market is driven by also a lot of pressure on prices by the competitors. We don't have the same financial health that we have, and maybe they're driven by the necessity of selling. Ferretti Group has the capacity to leave the negotiation and say, you know what, I'm not selling many models of this unit, I will sell it elsewhere next week or next month. Back to the business dynamics, sorry if it took longer than expected, but I thought it was important for you to be aware of the context we are in today. We launched, we actually previewed, because the big public, they haven't seen them, funeral boats, the Riva 100, the Riva 100, is a limited edition to celebrate the 100th unit of this model, which is a 38-footer. We are positioning it at EUR 1.5 million, and we're selling the boat, two units already being sold before the presentation. Aqua Riva Special, again, after 300 units of the Aqua Riva, it started in the year 2000, this boat which is around EUR 600,000, EUR 700,000 each for a 33-footer. We're making the special version, and the special version will bring additional 10, 15 years of life to this model. It's with nine units sold already. We presented the Capri, we sold one unit, and the very interesting, the Dolce Vita Super is a 35 m boat. The 110, we sold in 27 units, around EUR 15 million each. We sold already seven units of the 112 at EUR 17 million each. This is really an interesting and important best seller for this company with the best brand in the world. Also, WALL-E, we went into the competition segment after selling four WALL-E Rockets 51, or more than EUR 4 million each. We presented the racing bigger sister, the WALL-E Rockets 71, and we sold one at around EUR 10 million. We did an important partnership because again, we're not aspirational luxury, we're real luxury here, and we signed with Flexjet, the second biggest fractional ownership and charter operator in the world, American-based company. We signed an agreement to have the Riva interiors for three Gulfstream 650 and two helicopters as Sikorsky S76. Why is this? This enables us and them to exchange the client base, to do events together, to promote our shipyards and our product with the flying, with customers flying with Flexjet technically for free, just to promote our brands and their group. It's a fantastic opportunity. If you have the patience of a small video that celebrates that event, maybe it's worth to have it, have a look at it. Thank you for your attention. Now I will leave the stage to Margherita Sacerdoti to go through the composition of the order backlog and net backlog. As for the order backlog, we can see it was slightly down 3%, mainly because of the very high number of deliveries in the first half, and especially in the second quarter where we delivered 102 yachts. If we look at the net backlog, 35% of the net backlog will become revenues this year, and the coverage of the net backlog at the end of June was 73% of the guidance. We are on a good track. One thing I want to jump in, sorry Margherita, the difference between 761 and 786 is exactly the two made-to-measure boats that I mentioned before. Yes, and this difference is visible in the order intake. You can see it's -9.2%, but it corresponds to EUR 47 million, which is exactly two yachts and one super yacht that last year we had in the pipeline, a bespoke of EUR 64 million and one branded super yacht, and this year we have two branded super yachts. The difference is already EUR 30 million plus two made-to-measure, and that's the whole difference that we have. It's mainly a delay because we already signed this agreement. Overall, let's say that being spread out on different segments, the high composite, made-to-measure, and branded super yacht is paying off because every quarter shows different results. If you look at the results of the first half, first half 2025, you will see that composite is in line. Made-to-measure is slightly down, but it's exactly the two yachts that Mr. Galassi was mentioning before. It's very important to highlight that in the composite world, high composites are above 80 ft, is becoming more and more important. In the second quarter, more than half of the orders in composite were above 80 ft. Super yacht, as I said, the difference of the value is not in number of units, but in size of yacht. If I can guide you through this picture in the context of our industry and considering the size of our boats and the price tag of our boats, these pictures are the same. As you can see, composite yachts is the same number. The made-to-measures, two boats are missing, signed in July, one in Turkey, one in Italia. The size of the super yachts, it was basically last year a 70 m and a 50 m, and this year it's been a 250 m. That implies the difference. We're not talking about tens of units, hundreds of units, one thousand of units. It's basically one number from one day to the first day of the following month can change the picture. I would say, despite the pressure on prices from the competitors, despite the availability list of the boat of the competitors, which is huge in some cases, this is the outcome of Ferretti Group. To be honest, the business model is not only very resilient, I would say it's very successful. Just to add something on the quarter, if we think about April, April has been a very difficult month. We collected less than EUR 10 million orders. Everything that we collected in the quarter basically was collected in two months. It is a very good result considering the international situation, both on tariffs and on tensions in the Middle East. If we move to the geographic breakdown of the order intake, you can see this was for sure the quarter of Europe because it's the European season, but also the second quarter performed very well compared to last year. Being present in 70 countries allows us to navigate different regions at different times. The first quarter has been very good in the U.S. with made-to-measure. The second quarter has been very good in Europe for high composite. The Middle East has a very tough comparison with last year, which was the best quarter in the last three years. The U.S., again, had a super yacht last year in the pipeline, which is not present this year. Asia is continuing to grow nicely. Overall, we're very happy with this result. Now I will hand over the microphone to Mr. Zammarchi. Good afternoon. Talking about revenues, as we said before, we are increasing from €611 million to €620 million, so increasing by 1.5%, supported by solid backlog. We want also to highlight the increased weight of the made-to-measure that increased by 8.6% and the super yacht that increased by 26.5%. This gives us a lot of confidence on the future because we are talking about the most profitable segment. We are talking about the segment that is more able, more efficient to support the growth in terms of margin. Moving to the EBITDA, the increase, it was nearly EUR 100 million in terms of results. An increase of 2.5%, bringing the EBITDA margin growth by 20 basis points to 16%. As I said before, in this macroeconomic scenario with a lot of pressure from our competitors, we are still confident, very, very confident to achieve the guidance of this year, in consideration that the product mix is favorable to us. Not only because of that, we want also to be a little bit more aggressive on pricing for the composite, in consideration that we have already implemented a cost containment program on fixed costs in order to support the sales department in order to be more competitive versus the other players that we have. In terms of CAPEX, as already said in the previous quarterly result, the CAPEX cycle is completely finished or in the downside phase. We invested EUR 42 million, and the biggest portion of the expansion is focused on Ravenna shipyard completion that will be completed this year. The saturation rate, the occupation rate of the plant is still satisfactory, 85%. Last quarter was 88% because we are continually adjusting our production rate in order to manage properly the working capital. We do confirm that by year-end, the CapEx will be below EUR 90 million. We could say that we should be in a range of EUR 80 million- EUR 82 million. In terms of cash generation, the net financial position, as already predicted, is increased over EUR 100 million after paying dividends of nearly EUR 34 million. The net working capital, thanks to the continuous adjustment of production, is decreasing to 12.5%, and we expect by year-end to be slightly below 10%. We have full control of our working capital, so the company is still very solid in generating cash. As I said before, we are slowing down the CapEx that are not strictly necessary. We expect to continue to generate cash in the second half of the year. Mr. Galassi, final remarks to you? It's very simple. The market is at two speeds, as I tried to describe before. We're positioning in the good side of the two-speed market. The very entry level, the very low composite, the unbranded, the obscure brands don't exist anymore. That market is gone. If you see the numbers of some listed companies which are in that segment, especially in the U.S., they're suffering a lot. We are not there. We are focused on the segment above 24 m, and we are super, super effective and profitable and successful in the segment that goes above 24 m with the made-to-measure and the large composite and the super yachts. That segment has not been affected. To put you in that context, last year, today we had EUR 270 million of negotiations. Today we have EUR 420 million of negotiations. Now, will all negotiations become orders? No, because also in Ferretti Group, don't forget, an order is an order when it's not by the dealer, when it's with a down payment, and it's non-refundable. Still, it puts you in a context that how delayed the process is, it's a time effect. In the month of April, as I said before, basically the phone didn't ring. All our clients, as wealthy as they were and they are, they were busy protecting, thinking the future of their business globally because the tariffs changed completely the attention span from buying a boat or changing a boat. May was fantastic. June, apart from the timing of the bombing in the Middle East, Iran, Israel, and the Gulf, it's picking up. July is a great month so far, and we have the boat shows. In that position, two-speed market, we are in the right side of the positioning of the market. Again, what do we do? We sell in 70 more countries, and to be honest, supported by our dealers without asking our dealers to put the boats on stock. If you look at the boat availability, it's very different than some competitors. Of course, it's very easy to have an order book when you sign, but you see the cash. Cash doesn't lie. We didn't have any cancellation. In order to have a financial position that improved that well, as expected, by the way, and predicted in the second quarter, that is driven by the absence of cancellations. The summer season comes, the boats are ready, the clients pay and deliver, and there's not a lot of financing in our industry, definitely not in Ferretti S.p.A. The operational efficiency, Marco described it very, very well. The cash generation is linked to the seasonal deliveries and also to a very careful attention to costs because we know there's pressure in the market, we know there's pressure from the competitors, some shippers are selling discounts, we are selling boats. In order to compete and to explain the difference between owning a boat and owning a discount and not suffering in a depreciation of the model right after your purchase, thinking you made the deal of your life, you have to be available to discount a little bit more. How do you catch up with that? How do you cover that gap? How do you recover that gap? You have to be very careful in the cost-cutting initiatives that we have in the company. The CapEx plan is another example. The Ravenna shipyard is going to be fully operational by October. In December, it will be completely finished. That cycle that was extremely expensive and extremely demanding, it gave us the possibility to manufacture bigger boats in the large composite segment above 24m, successful. In the made-to-measure, extremely successful. In the super yachts, just to tell you, we have nothing available until 2029. The future outlook is very simple. We do believe that the boat show season will give us satisfaction. You know the level of negotiations that we have. It is an easy market. No, nobody said it was easy. Again, we know our clients and they're not aspirational in luxury. The annual guidance of 2025, if you want to switch the slide, it's confirmed. We are expecting the revenues to go from EUR 1.2 billion, EUR 20 billion- EUR 1,240 billion. The adjusted EBITDA, we did EUR 90 million, nearly EUR 100 million in the first half, so EUR 201 million, EUR 207 million. The EBITDA margin, we are expecting to grow also because of the initiatives of controlling our costs internally. The CapEx, way below EUR 90 million, I would say we will have a pleasant surprise in that as well. By the way, the last thing I want to leave you with, with the market which is going to a consolidation and with the difficulties of some positioning of some brands and some shipyards, there are opportunities. This company has no doubt. This company has more than EUR 100 million available in cash in hands after EUR 34 million of dividends. Don't worry about the dividends of next year so far and forever, hopefully. There are opportunities to catch. I hope to come back with the news. Thank you so much for your attention. We're here for Q&A. Thank you for listening to our first half 2025 presentation. We are now ready to start the Q&A session. We will start with live questions and later move on to the written questions. The first question is from Adrien Duverger from Goldman Sachs. Adrien, you can unmute yourself. Hey, good afternoon. Thank you very much for the presentation. I have two questions, please. The first one is about tariffs and the sentiment in the U.S. market. How do you feel about the news that we had this week on the tariff side? Also, what are you seeing from the client side? Given more certainty, is it reopening more sales discussions? The second question is probably one for Marco on the margin side. Your guidance is unchanged. For the first half, I think the margin is 16.0%. I was wondering if you could help us with the building blocks and what you see that gives you confidence to reach that 16.5% adjusted EBITDA margin guidance. Thank you very much. Okay, thank you for the question. Tariffs, month of April was a nightmare. Month of April was a nightmare, not because tariffs are impacting our industry or Ferretti Group in particular, because anything bigger than made-to-measure or branded super yachts is not having an American flag at all. The companies that own the ships could be based everywhere but in the U.S. That is not a problem. The delivery happens in the Mediterranean. On the smaller boats, they have the American flag, but we do control our import and export in the United State. We have our own subsidiary, Ferretti Group of America. We can control the cost, we can control how to mitigate the tariffs. We went from 1%- 65% in what has been called universal tariffs one day, and it was an addition of 10%. We were at 11.65%. Now we are currently living with 11.65%. If the agreement of 15% is an agreement that we can manage, and I give you one data, I make an example. If you consider that there are 23% more or less of our revenues are in the Americas and in the U.S., we're talking about, and the revenues that are arising from the composite, the lower composite, around 40% of that, we're talking about 9% in the overall. If you put it in the context, it's not a problem. I make a couple of examples. I asked the commercial team to give me some data of very successful units, and how many we sold in the U.S. on the history of the units. To make an example with the Riva, we sold the Riva 100 and Corsaro, we sold 21 units and two in the U.S. We sold 17 units of the 102 and three in the U.S. We sold the Navetta 33, 27 units, four in the U.S. So U.S., it's important, but it's not the key market. Also, because, and even if these ships won't have an American flag, tariffs is not a problem. The problem is the attention span. You know the five basic obstacles on any sale? There's no need, no money, no rush, no trust, and no hurry. Is there a hurry to change the boat? Is there a need to change the boat? It's a pleasure. It's an emotional thing which pleases yourself and the lifestyle. We're not selling boats since a long time. We're selling lifestyle here. Especially in Ferretti Group, we are do selling lifestyle. If you're focused on importing cars in the U.S., and you're an American client and you have tariffs from Japan day to night, 75%, will you pay attention to the fact that you're negotiating the new boat? No. You will defer that topic to a better moment. That's exactly what happened in the month of April. That's exactly why we are seeing negotiations that were delayed before. Are we worried on tariffs? If 15% is the outcome, the answer is not because we can play with 15%. We can live with 15%. Did I answer? Yes, very clear. Thank you. We are living successfully with 11.65% already. Clients are starting to come back to you. It's a matter of attention. We're opening a discussion. Also, because our clients, again, the average price tag is more than EUR 6 million, including super yachts. If you consider made-to-measure, I think we went from EUR 4 million- EUR 6 million- EUR 5 million- EUR 1 million, maybe before I said a mistake. So EUR 5 million- EUR 1 million average. You're not worried about your tomorrow. This is not aspirational luxury. We're not talking about hundreds of units of products or thousands of units. We are talking about few, very few. In total, Ferretti Group is less than 250 boats divided by seven brands in 71 countries. That is the kind of game and championship we are playing here with. We are playing here. with. We are playing here. What I'm telling you is different, is that you need to be focused on the fact that you're buying the new boats. If your business is not at risk, but maybe your marginalities, or if you're an investor, or if your personal family office is calling you because something is wrong completely in the stock exchange, you have no time to dedicate to the salesman or to Alberto Galassi. You say, "Call me next week," which is exactly what's happening. Now that things are back to normal, apparently brackets normal because you never know what you're going to get. Like Forrest Gump, life's a box of chocolate here. You never know what you're going to get. We got one pandemic, three worst, and tariffs. Even things look back to normal, the market is here. There's life on the planet. People are buying boats, definitely Ferretti Group boats. Marco, sorry. Okay, so about margin, I said that we wanted to confirm the guidance that shows EBITDA between 16.5% and 16.7%. We believe it's achievable in consideration of two facts. The first one is we say that we analyze properly the product mix of the current backlog and the negotiation in place. We see that this product mix is quite favorable because it's mostly focused in high composite segment, made-to-measure, branded super yacht. This gives us a lot of boost. On top of that, as we said before, we have carefully analyzed all the fixed cost structure of the company. We have already implemented since the beginning of June a cost containment program, analyzing every department of the company and cutting what is nothing strictly necessary. The combination of these two facts gives us enough confidence to confirm the guidance in terms of absolute terms, so the total amount of EBITDA and in terms also of EBITDA margin. Both answers are very clear. Thank you very much. Thank you. The second question is from Emanuele Gallazzi. Emanuele, you can unmute yourself. Hope you can hear me. Okay. Thank you everybody, and clearly thank you for the presentation. I have two questions. The first one is on the order intake. Basically, when we look at the EUR 420 million of ongoing negotiations that are materially up compared to last year, is it driven by a specific region like rebound in the Middle East, or quite widespread? The second one is on the competitive environment. Clearly, I totally understand your point on the pricing pressure. I'm just trying to understand if it is only related to the low end of the market, or are you seeing a sort of deterioration also in the high end of the market? Thank you. Okay, let me start from the second one. It's generally speaking, basically on the low end, it's countries and brands. Some brands are suffering more than others. Some brands are completely and totally untouched because of the nature of the products. They play in a different arena. Some in the U.S., you see pressure because if you sell to yourself and you distribute yourself in the North American market, you have a control of the market. If you're in the hands of a distributor and the distributor has pressure because he has a lot of stock, he will sell no matter what, whatever it takes. That will affect. This implies time in a negotiation and special discounts in the negotiation. There's a combination of where geographically and which kind of models. Some brands and some models, some sizes are completely untouched because also there's a very scarcity. Don't forget, we grew organically with scarcity as a key driver of our growth. It's a sort of polar star that we have as a guidance. The negotiation, yes, Middle East, Middle East is back. I mean, if you're negotiating something in the Gulf, in the UAE, in Bahrain, in Qatar, and all of a sudden, all the planes are diverted, landing in another airport because anything can happen, and then you have an airbase bombed, even if it was with limited damage, and it ended after one day only. That was the end of June. I will never forget. That negotiation is definitely going to be delayed because priorities are different. We are not number ones in scale of priorities. Maybe that's our fortune because we please the emotions of the clients. Yes, Middle East is back. U.S., after the tariffs are coming back with normality, and it is giving us good results, and also Europe, including Italia. Very clear. Thank you. We have another question from Niccolò Guido Storer. Niccolò, you can unmute yourself. Hi, good afternoon. Thanks for taking my question. We cannot hear you. [Foreign language] Yes. Thanks. Thanks for taking my questions. It's about what you said about fixed cost containment. If you can elaborate a bit more on these ongoing cost-cutting initiatives, and just to make sure I understood well, is it fair to say that all the money that you're going to save will be reinvested in, let's say, being more competitive on pricing? Do you expect to keep something also to support your profitability? Thank you. Okay. About the fixed cost containment, in our view, it's not so difficult. You know, we always take advantage from fixed cost assumptions. If we adjusted a little bit our value of production in order to carefully manage the working capital and the working capital and the cash generation, we slowed down some activity in some plants. As a consequence, all the fixed costs that are the manufacturing overhead and some other departments in the shipyard have been reduced, utilizing some accrued holidays. For example, in August, we'll shut down the operation in some plants for three and in some cases four weeks, having a lot of contribution in terms of profitability. We also analyzed the SG&A cost, marketing cost, and we have seen that we can postpone some improvement or some increase of cost. In many cases, we had also the opportunity to cut some unnecessary costs, cutting third-party costs, consultancies, and so on. We have seen that we should be able to cut something on an annual basis, roughly 5% of our fixed costs in some areas, in other areas by 3%. Part of that will be, let me say, reinvested, as you suggested, in supporting the negotiation from some, in order to face the competitor. Part of that will be maintained into the company to support the growth of EBITDA margin. Thank you. You're welcome. We don't have any more questions, live questions. We have a few written questions, but most of them have been answered. There's still one in the composite side. You said over 50% was 80+ ft in Q2. What was a few years ago and what will be in the future? I will answer generally speaking. We don't give this breakdown, but we can tell you that the weight of the composite above 80 ft has been growing over the past quarter, and it will continue growing in the future because that's a focus of the strategy. We are launching more and more models in that area, and our strategy is to focus on composite above 80 ft, made-to-measure, branded super yacht. Additionally, we are thinking about including the high composite into the made-to-measure segment next year to make things a little bit easier. I think this answer will be enough. With that said, we thank you for your attention and for following our conference call. We will see you in next quarter. Thank you so much. Thank you so much. Bye.