We are an established leader in the global luxury yacht industry with a portfolio of iconic brands with a long heritage and outstanding high-end manufacturing capabilities. As one of the oldest Italian luxury yacht producers, we have been playing an important role in steering the development of the global luxury yacht industry by acquiring and integrating other leading yacht brands and production facilities since the establishment of our business in 1968. Our seven brands — Riva, Wally, Ferretti Yachts, Pershing, Itama, CRN and Custom Line — are globally recognized as symbols of luxury, exclusivity, Italian design, quality, craftsmanship, innovation and performance. We design, produce and sell luxury composite yachts, made-to-measure yachts and super yachts from eight to 95 meters, offering the full spectrum of functionalities and an increasing range of ancillary services, catering to the personalized tastes and requirements of our clientele. With our market leadership, rich history and iconic brand portfolio, we are positioned as the trend-setter of the global luxury yachting industry and the ambassador of Italian nautical excellence to the world.
According to the Industry Consultant, throughout the Track Record Period, we consistently ranked among the top players worldwide in terms of value of production of inboard composite and made-to-measure yachts above 30 feet (approximately nine meters), consolidating our leading market share from approximately 10% in 2018 to 13% in 2021. Moreover, as a testament of our focus on higher value market segments, in 2021, our inboard composite yachts between 80 and 99 feet and inboard made-to-measure yachts of over 30 meters (approximately 100 feet) and up to 43 meters achieved higher market shares of approximately 20% and 24%, respectively. In super yacht market which is highly fragmented, we were among the top 10 industry players with seven super yachts sold between 2018 and 2021, according to the Industry Consultant.
Each of our brands is associated with exclusivity and differs in style and technical performance characteristics with distinctive features and precise identities. This iconic and complementary brand portfolio allows us to comprehensively cover the high-end luxury segments of our addressable market and targeted client profiles. Our multi-brand business model relies on independent teams dedicated to each brand that carry out product development, and formulate and manage sales and communication strategies to unlock the commercial potential of each brand, thus nurturing their unique identity. Meanwhile, we can benefit from enhanced operational efficiency from the centralized functions at the Group level, such as procurement and engineering. Such a competitive business model would enable us to safeguard and promote the distinctiveness of each brand, while ensuring the sharing of operational best practices across the Group, de-risking our business, and enabling fast reactions to any changes in customer tastes, preferences and behaviors.
Over the years, we have cultivated a premium and loyal clientele of highly sophisticated VHNWIs and UHNWIs, empowered by our effective sales model. We have established a sales presence in more than 70 countries and regions in EMEA, AMAS and APAC, enabling us to reach customers globally. In particular, we maintain our in-house sales team through a network of sales offices strategically located in (i) Milan, London, Monaco and Palma de Mallorca (covering the EMEA market); (ii) Fort Lauderdale, Palm Beach, Naples and Sag Harbor (covering the AMAS market); and (iii) Hong Kong and Shanghai (covering the APAC market). As of September 30, 2021, our sales network consisted of our in-house sales team comprising 96 employees, 52 dealers and more than 300 brokers. We pride ourselves in how we directly engage and serve our end customers with personalized product offerings and services, laying the foundations for long-lasting relationships and great customer satisfaction. Moreover, we believe that our dedicated brand promotion campaigns such as our participation in renowned boat shows, our branded lounges in exquisite locations in Italy, Monaco, Greece, Croatia, Spain and France, and our various sponsorship arrangements, have enhanced the high-end positioning of our brands. This helped us to grow our high-value clientele, cultivate an exclusive community of luxury yacht customers, and nurture a stronger sense of belonging.
We own and operate six shipyards, and a production plant for interior fittings and customized furnishings, all located at the heart of the world-famous Italian nautical district. This strategic choice allows us to continuously enhance our production process, while ensuring an uncompromised focus on product quality and technical performance by leveraging the proximity of our network of suppliers and contractors. We design and manufacture luxury interior fittings and customized furnishings for our yachts on a vertically integrated basis, as part of our ongoing efforts to meet the demands for high-end customization and to further increase our competitiveness. Each element inside our luxury yachts is carefully selected and tailor-made by professional nautical craftsmen, following techniques that were handed down over generations, blending tradition, modernity and our relentless dedication to customization. The attention we put to the design and to every single technical detail, we believe, is a core strength in delivering an item that is viewed as irreplaceable and unique. We also operate a refitting facility in Fort Lauderdale, with the view to further expanding the offering of our after-sales and refitting services and strengthening our positioning in the U.S. market. In addition, in order to reinforce a stable supply of high-quality key inputs, we are currently in the process of internalizing a strategic portion of our GRP and carbon-fiber hull production.
The comprehensive yachting ecosystem that we created, which encompasses luxury yachts and ancillary services, enables us to enhance customer satisfaction and loyalty. Our ancillary businesses provide synergies with our core business with an all-encapsulating portfolio. In addition, we have tapped into the global coastal patrol and rescue vessel industry with the launch of FSD (Ferretti Security Division), our security vessel business division. By leveraging our accumulated know-how and resources and by exploiting already existing product platforms, we are well-positioned to seize the growing opportunities in this flourishing market.
Our financial track record was underpinned by the substantial industrial and R&D investments that we have made ahead of the industry. The former provided the production capacity needed to sustain growth, while the latter was key to align our product offering to the emerging customer needs and market trends. Moreover, our past investments in model renovation and industrial facilities have given us an edge over our peers, representing a strong competitive advantage and a visible pillar to drive future growth.
Moving forward, we intend to meet the evolving demands in the luxury yacht industry, especially towards larger and more profitable yachts. We will adjust our product mix to strengthen our market positioning while preserving the exclusivity of our brands with a relentless focus on quality and innovation. We aim to continue to further consolidate our leading position in EMEA, extend our presence in AMAS and fully unleash our potential in APAC, along with the [REDACTED], thus strengthening our leadership in the global luxury yacht industry.
Source: Ferretti (09638) Prospectus (IPO Date : 2022/03/22) |