Orders trend 2000/2013 for world production and for Italy

Turning attention from the trend of total orders of Mega Yacht to the shipyards, we can see that in 2013 the top 20 at world level include 7 Italian shipyards which account for 33,2% of the total orders and 29,3% for total length.

Top 20 Mega Yacht Builders 2012 - 2013

The first three in the world is Italian shipyards. The Mega Yacht sector, and in particular the luxury nautical sector represents a specialization of the Italian economy and it has developed, in the course of time, strong ties with other important sectors, for example that of furnishings, of mechanics, of technology and of services. It is interesting to note that Italy boasts world leadership in 2000 in the production of Super Yachts. We can also note that three Italian companies, Azimut-Benetti, Ferretti Group and San Lorenzo hold the top 3 positions at world level for the construction of luxury ships

During the opening press conference at the 38th edition of the Cannes Yachting Festival which is currently being held in the French Riviera, the Ferretti Group presented a review of the first eight months of the 2015 financial year. Reporting strong growth for the Italian company, CEO Alberto Galassi announced positive EBIT and cash flow and a 105% increase in orders intake, amounting to a total of €253,000,000. The initial review of the key figures achieved this year are fully in line with the targets announced at the presentation of the Group’s development and growth strategic plans for 2015-2017, focusing on the further development of the Group’s core brands. Galassi noted this is largely due to Product Research & Development investments totaling €50,000,000, which are supporting the launch of as many as 27 new models. Furthermore, geographically, in the first eight months of 2015, the Group has continued its sales growth on an international level, particularly in Europe, the Middle East and Africa, and the Group’s orders intake as at 31 August 2015 shows a notable 187% increase as against the first eight months of 2014. A considerable increase has also been seen in orders in Asia Pacific, equal to 96% in the consolidated orders intake as against 31 August 2014, whilst orders in the Americas shows a 20% increase. As to the percentage breakdown of the total consolidated orders intake by geographical area as at 31 August 2015, Europe - Middle East - Africa accounts for 59%, Americas for 22% and Asia Pacific for 19%. Ferretti Group’s cash flow and EBIT figures as at 31 August 2015 also show positive performances as against the first eight months of the year 2014.
INVESTMENT POSITIVES
Quality and brand recognition. Ferretti’s models are recognised by enthusiasts for their technical performance (in-house engineering department), innovative design and high quality fittings and furnishings. Ferretti enjoys strong brand recognition and customers are prepared to wait for up to two years for delivery. Furthermore, around 90% of Ferretti’s customers remain loyal to the group when trading up to larger models. Ferretti’s products also successfully retain their resale value in the secondary motor yacht market. Distribution network. The group’s distribution network is a key competitive strength and a cornerstone of Ferretti’s growth plans. Ferretti is currently present in 65 countries through a network of 57 dealers, all offering after-sales assistance to customers. The group is now seeking to increase sales by cross-marketing the products of its newly-acquired subsidiaries through its dealer network and by entering new markets such as Asia and Latin America. Limited exposure to credit risk. To minimise its credit risk, the group requires payment in full prior to delivery. In addition, Ferretti demands an initial advance payment when the order is placed and further instalments during the production process. The group’s advance payment policy lowers the financial risk of the yachts under construction and improves the group’s liquidity. Efficient production cycle and strong value creation. Compared with the labour-intensive, craftsman-based manufacturing process which characterises the industry overall, Ferretti’s production process is industrialised, very efficient and flexible. Labour costs account for just 14% of total sales. Moreover, Ferretti enjoys a high return on capital employed thanks to its low capital requirements. Ferretti’s average order backlog is around 18 months, offering high visibility on the two-year period ahead.