Italian Sea S p A : Consolidated Annual Financial Report as of 31 December 2024

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CONSOLIDATED ANNUAL FINANCIAL REPORT

AS AT 31 DECEMBER 2024

CONTENTS

LETTER FROM THE FOUNDER & CHIEF EXECUTIVE OFFICER.......................................6

METHODOLOGICAL INTRODUCTION....................................................................................8

SUMMARY & GENERAL INFORMATION................................................................................9

CORPORATE AND CONTROL BODIES .................................................................................. 10

BOARD OF DIRECTORS .......................................................................................................... 10

AUDIT, RISK, SUSTAINABILITY & RELATED PARTIES COMMITTEE ................................... 11

APPOINTMENTS & REMUNERATION COMMITTEE ............................................................ 11

BOARD OF STATUTORY AUDITORS ....................................................................................... 11

SUPERVISORY BOARD PURSUANT TO LEGISLATIVE DECREE 231/01 .............................. 11

SHAREHOLDERS ...................................................................................................................... 15

BRANDS ................................................................................................................................... 16

BRIEF HISTORY OF THE GROUP ........................................................................................... 20

INVESTMENTS ........................................................................................................................ 22

BUSINESS DEVELOPMENT .................................................................................................... 26

MARKET OUTLOOK ................................................................................................................. 27

SHIPBUILDING ........................................................................................................................ 27

REFIT ....................................................................................................................................... 27

PRESENCE IN FINANCIAL MARKETS .................................................................................. 29

STOCK EVOLUTION ................................................................................................................ 29

INVESTOR RELATIONS ACTIVITIES ...................................................................................... 30

FINANCIAL CALENDAR 2025 ............................................................................................ 31

PRIZES AND AWARDS 2024 .................................................................................................. 32

RECLASSIFIED CONSOLIDATED INCOME STATEMENT .................................................. 34

OPERATING REVENUES ......................................................................................................... 35

EBITDA ..................................................................................................................................... 38

EBIT .......................................................................................................................................... 39

OPERATING COSTS ................................................................................................................. 39

BACKLOG ................................................................................................................................. 40

CONSOLIDATED RECLASSIFIED BALANCE SHEET STRUCTURE .................................. 41

CONSOLIDATED NET FINANCIAL POSITION ..................................................................... 43

ALTERNATIVE PERFORMANCE MEASURES ("NON-GAAP MEASURES") ..................... 44

SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR .................................................. 50

SIGNIFICANT EVENTS OCCURRING AFTER YEAR-END .................................................. 54

BUSINESS OUTLOOK .............................................................................................................. 55

TRANSACTIONS WITH RELATED PARTIES ........................................................................... 58

RISK MANAGEMENT ............................................................................................................... 59

RISKS RELATED TO THE FINANCIAL SITUATION ............................................................... 59

RISKS RELATED TO OPERATIONS ......................................................................................... 61

RISKS ASSOCIATED WITH MANAGING RELATIONS WITH SUPPLIERS IN PRODUCTION

OUTSOURCING ....................................................................................................................... 62

RISKS RELATED TO MARKET STRUCTURE .......................................................................... 63

RISKS RELATED TO ORDER MANAGEMENT ........................................................................ 64

RISKS RELATED TO MANUFACTURING DEFECTS, NON-COMPLIANCE WITH CONTRACTUAL SPECIFICATIONS AND PRODUCT LIABILITY, AND ENFORCEMENT OF

GUARANTEES .......................................................................................................................... 65

RISKS RELATED TO THE REFERENCE REGULATORY FRAMEWORK ................................. 66

RISKS RELATED TO LITIGATION AND TAX ASSESSMENTS ................................................ 67

CLIMATE RISKS ....................................................................................................................... 69

OTHER INFORMATION ........................................................................................................... 71

CORPORATE GOVERNANCE ................................................................................................... 71

..................................................................................................................................................... 73

2024 CONSOLIDATED SUSTAINABILITY REPORT ............................................................ 73

CONTENT INDEX ........................................................................................................................ 74

GENERAL INFORMATION ...................................................................................................... 74

METHODOLOGY AND GENERAL BASIS FOR PREPARATION OF SUSTAINABILITY

STATEMENTS ............................................................................................................................................ 74

OVERVIEW OF THE BUSINESS MODEL ........................................................................................ 76

DOUBLE MATERIALITY ANALYSIS .................................................................................................. 90

GOVERNANCE STRUCTURE ............................................................................................................. 107

BUSINESS ETHICS ................................................................................................................................ 114

MANAGEMENT, INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM ............ 115

DUE DILIGENCE DUTY ........................................................................................................................ 115

ENVIRONMENTAL INFORMATION ...................................................................................... 117

DISCLOSURES PURSUANT TO ARTICLE 8 OF REGULATION (EU) 2020/852

(TAXONOMY REGULATION) .............................................................................................................. 117

ESRS E1 - CLIMATE CHANGE .......................................................................................................... 124

ESRS E2 - POLLUTION ........................................................................................................................ 131

ESRS E3 - WATER AND MARINE RESOURCES ........................................................................ 134

ESRS E5 - RESOURCE USE AND CIRCULAR ECONOMY ..................................................... 138

SOCIAL INFORMATION ........................................................................................................ 143

ESRS S1 - OWN WORKFORCE .......................................................................................................... 143

GOVERNANCE INFORMATION ............................................................................................ 162

ESRS G1 - BUSINESS CONDUCT ................................................................................................... 162

ENTITY SPECIFIC .................................................................................................................. 169

CUSTOMER EXPERIENCE & SATISFACTION ........................................................................... 169

INNOVATION, RESEARCH AND DEVELOPMENT ................................................................... 171

DRAFT CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2024 ..... 179

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................. 179

CONSOLIDATED INCOME STATEMENT ................................................................................. 180

OTHER CONSOLIDATED COMPREHENSIVE INCOME ....................................................... 180

CONSOLIDATED CASH FLOW STATEMENT ........................................................................ 181

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY ................... 182

NOTES TO THE FINANCIAL STATEMENTS ....................................................................... 183

COMMENTS ON THE MAIN ASSET ITEMS ....................................................................... 207

COMMENTS ON THE MAIN LIABILITY ITEMS ................................................................ 220

COMMENTS ON THE MAIN ITEMS OF THE INCOME STATEMENT ............................ 227

OTHER INFORMATION ......................................................................................................... 237

PROPOSED RESOLUTION .............................................................................................................. 241

This document is an English translaon from Italian. The Italian original shall prevail in case of differences in interpretaon and/or factual errors.

LETTER FROM THE FOUNDER & CHIEF EXECUTIVE OFFICER

Dear Shareholders,

The results for the year 2024 once again confirm the growing popularity and disncve posioning of our brands, which have allowed us to face a year characterised by a sll uncertain macroeconomic and geopolical context.

Thanks to our determinaon, we were able to meet market expectaons, recording revenues of Euro 404.4 million, with an increase in profitability to 17.4% in terms of EBITDA, confirming our focus on business sustainability. We recorded a net profit of Euro 33.8 million, which will once again allow us to remunerate our shareholders with a dividend, without in any way reducing our financial resources supporng our long-term growth strategy.

In the course of 2024, we connued to make the dreams of our customers come true, launching large yachts over 50 metres. We returned to the Munich Motor Show, leaving all of the exhibitors stunned by the beauty of the lines of our yachts: ADMIRAL Planum 78m, ADMIRAL Jas 66m, ADMIRAL Silver Star-I.

This is our DNA, our unique contribuon to the luxury yachng industry, made of passion, innovaon and aenon to detail that has caused very important brands from automove to fashion to choose us as their partner.

The upcoming launch and subsequent delivery of a full custom super yacht designed by Giorgio Armani will represent a further disncve feature of our offer compared to the Nordic shipyards - our true benchmark - in terms of clean and elegant forms.

During the year, as we nofied the market on several occasions, we entered the Euronext Milan STAR segment, to support our shareholders in beer understanding the company and the business in compliance with more stringent

requirements, including in terms of corporate governance.

Sustainability connues to be an important focus area for the Group. Our ISO:14001 cerficaon for Environmental Management Systems obtained last year has been confirmed across all of our shipyards in Italy, and we connue to work to improve gender equality inside our Company and provide support to our employees, suppliers and the local community.

The outlooks for our reference market are solid, thanks to the constant growth in high-net-worth individuals who can represent both a direct customer for us, when they wish to purchase of a yacht for their own exclusive use, or an indirect customer if they opt for chartering, a segment that is also expected to see considerable growth in the coming years.

To conclude, I would like to thank our Chair, the Corporate Bodies, the Top Management, General and Funconal Management, Middle Management and all of our employees for the constant commitment and dedicaon expressed on a daily basis. Thank you to the Celi and TISG Turkey employees, for the great support that they give to our large Group. A hearelt thank you goes to our suppliers, whom we now consider partners, and the Instuons, always present and ready to support us in our growth.

Finally, I want to thank you, our Shareholders, for connuing to believe in our "factory of emoons": it is only together that we will be able to build the TISG of tomorrow.

METHODOLOGICAL INTRODUCTION

In compliance with the relevant IAS/IFRS framework, the consolidated financial statements of The Italian Sea Group S.p.A. as at 31 December 2024 show as comparave data the balances of the consolidated financial statements of TISG as at 31 December 2023.

The reconciliaon statement between the Parent Company's financial statements and the Consolidated Financial Statements is shown below.

31/12/2024

31/12/2023

Company name: The Italian Sea Group S.p.A. ("TISG S.p.A.")

Registered Office: Viale Cristoforo Colombo, 4/BIS, 54033 Marina di Carrara, Carrara (MS)

Tax Code: 00096320452

Register of Companies of Carrara No. - Economic and Administrave Index No.: 65218