Genoa, October 9, 2006 – Production value increased to 770.4 million euros, a gain of 18.0% compared with the 652.9 million euros reported a year earlier; EBITDA grew to 118.4 million euros, or 37.7% more than in the previous year; net profit rose to 25.3 million euros (a gain of 118.8% compared with the 2005 fiscal year); net borrowings decreased by 90 million euros to 406.9 million euros (496.9 million euros at August 31, 2005). The number of boats delivered was also up, rising from 419 in 2005 to 461 in 2006.
On October 2, 2006, as part of the procedures required for listing its shares on the MTA segment of the Italian stock market, the Company filed an application with the Consob and Borsa Italiana.
The data provided above are the highlights of the consolidated financial statements at August 31, 2006, which were prepared in accordance with International Financial Reporting Standards (IFRSs), as approved by the Shareholders’ Meeting of Ferretti S.p.A., the Parent Company of the Ferretti Group, a world leader in the design and construction of luxury motor yachts.
In order to allow a comparison with homogeneous prior-year amounts, the 2006 data of Ferretti S.p.A. are compared: i) at the balance sheet level with the consolidated financial data for the year ended August 31, 2005 (restated in accordance with the IFRSs) of the company that controlled and subsequently absorbed Ferretti Incorporata, now called Ferretti S.p.A.; and ii) at the income statement level, with the financial data of Ferretti S.p.A., which was absorbed by its parent company on May 29, 2006, effective June 1, 2006 (“Ferretti Incorporata”).
A more detailed review of the data shows that the increase in production value (770.4 million euros, compared with 652.9 million euros the previous year) was made possible by growing demand not only for the Group’s traditional brands (Ferretti Yacht, Riva and Pershing) but also for such newly introduced product lines as Mochi Craft and Maestro (Apreamare). The relaunching of the Itama brand and the positive performance of CRN in the steel megayacht segment also contributed to this improvement.
In addition, during the past 12 months, the Group’s results benefited to a significant extent from further growth in its established Italian and European markets, as well as from strong sales in the emerging markets of the Far East and more assertive marketing strategies in such new markets as Russia and Brazil (and South America in general).
The sharp improvement in profitability was particularly noteworthy. As mentioned above, consolidated EBITDA rose to 118.4 million euros (+37.7% compared with 85.9 million euros at August 31, 2005), equal to 15.4% of production value (13.2% last year). This gain reflects the contribution of new production facilities brought on stream during the year, the launch of increasingly large new models and a steady effort to maximize intra-Group synergies.
At August 31, 2006, the net financial position showed indebtedness of 406.9 million euros, or 90 million euros less than the 496.9 million euros owed at August 31, 2005.
In the 12 months ended August 31 the Group earned a net profit of 25.3 million euros, more than double the 11.2 million euros (reclassified in accordance with the IFRSs) reported for the previous fiscal year.
At August 31, 2006, the order backlog was at an all-time high of more than 635 million euros, up about 62.4% compared with August 31, 2005.
“The excellent results achieved this year,” said Chairman Norberto Ferretti, “are the result of the great commitment and motivation of a management and operating team that knows how to work together and enjoys being part of an organization with a strong growth potential. These are people of different generations and backgrounds, who over the years have always succeeded in achieving their goals, not only in terms of financial performance, but also in the areas of technological leadership, market position and prestige, at the top of the luxury segment of the world’s boating industry.”
“The growth of the Ferretti Group and its improved operating performance,” said Gabriele Del Torchio, the Group’s Chief Executive Officer, “were made possible by an outstanding organization and manufacturing system. They are also the product of a strategy that calls for investing in manufacturing facilities and human resources in order to consolidate a leadership position that has become truly international, as demonstrated by the contribution of foreign business, which now accounts for 75% of the Group’s production value.”
On October 2, 2006, after the fiscal year had closed, Ferretti S.p.A. filed an application with the Consob to publish a Prospectus, and with Borsa Italiana to list its common shares on the online stock market (also known as MTA). Lazard and Mediobanca acted as advisor and sponsor, respectively, in this transaction.
Depending on the conditions of the financial markets, this transaction will be carried out by means of a Global Offering that will consist of a Public Sale and Subscription Offering addressed to all investors in Italy and an Institutional Placement addressed to professional Italian investors and foreign institutional investors.
On September 20, 2006, the Shareholders’ Meeting of Ferretti S.p.A. agreed to proceed with the application to list the Company’s common shares. In addition, after approving a stock split, the Shareholders’ Meeting agreed to carry out the share capital increase needed to accommodate the Offering and to issue up to 45,000,000 new common shares, par value 0.02 euros each.
In response to recent news items, the Company confirms that, to the best of its knowledge, its shares have attracted the interest of private equity investors.
The shareholder involved has indicated to Ferretti S.p.A. that any potential sale of equity (IPO or Secondary Buyout) would be carried out with the same prerequisites of management continuity, independence in running the Group’s operations and the ongoing pursuit of further growth, using both internal resources and acquisitions