Ferretti presents year results at Cannes

During the traditional Ferretti Group Meeting, held on the opening day of the Cannes Boat Show, the first event of the 2010-2011 season, Chairman and Founder, Norberto Ferretti, and CEO, Salvatore Basile, illustrated the preliminary results for the 2009-2010 nautical year. The results clearly demonstrate that the Group has successfully achieved all the budget targets.

Preliminary results of the Ferretti Group as of August 31^st, 2010

On August, 31^st, 2010, the Ferretti Group registered a turnover of over 500 million euro. On  August 31^st, 2010, the EBITDA was around 30 million euro, in line with the budget, and an increase compared with the approximately 26 million euro registered during the previous nautical year.

The improvement of this result, in a market still characterized by price pressure, was primarily due to the key initiatives taken by the Ferretti Group during the course of the 2009-2010 nautical year, which resulted in a cost reduction of around 50 million euro, and clearly demonstrates the effectiveness of the Group reorganization.

As of August, 31^st, 2010, the Group’s Net Financial Debt improved compared with the previous year and was reduced to around 590 million euro, basically in line with the Plan. Another important result was the volume of yachts delivered during the 2009-2010 year. The Group achieved an impressive 215 units, allowing it to close the nautical year without any unsold stock.

The results achieved by the Ferretti Group are in line with the forecasts and demonstrate a robust market share, with clear increases in certain segments. In fact, the nautical year closes with an order portfolio of around 270 million euro for the Group, which is a notable increase compared with the 175 million registered during the previous year. The volume of new orders received in 2009-2010 was around 460 million euro, which is also a considerable improvement compared with the approximately 330 million of the 2008-2009 nautical year.

The results show the Ferretti Group’s tremendous ability to respond and adapt to the demands of a continuously evolving nautical market, and optimize the synergies between some of the most important nautical brands in the world. This is further reinforced through the in-depth expertise in design, engineering, manufacturing and marketing honed through over 42 years of continuous operation..

Indeed, with the aim of enhancing the flexibility of the Group, optimizing efficiencies through the organization and strengthening internal synergies, the Group undertook a major reorganization process during the 2009-2010 nautical year. This resulted in the centralization of all key functions and the integration of each of the Group’s companies into a single entity under Ferretti S.p.A.. An important part of this process involved the creation of two new operating directions: namely the Industrial Direction, led by Mauro Frattesi, whose aim is to improve synergies and best practices across the company; and the Sales and Marketing Direction, led by Lamberto Tacoli, whose aim is to maximize the value of each of the Group’s unique brands whilst maintaining their individual identities, distinctive heritage and unparalleled brand attributes.

These new operating divisions are complemented by three Staff Directions: the Organization and HR Direction, led by Giovanni Pallucca; the Financial Direction, led by Giancarlo Marangon, and the Strategic Planning Direction, led by Ferruccio Rossi. Together with Chairman and Founder Norberto Ferretti and CEO Salvatore Basile, this team has been dedicated to the design, implementation and launch of the new organization throughout the last few months, which is now  producing visible and successful results.

Moreover, during the course of the 2009-2010 nautical year, the Group sold a number of assets which were considered non-strategic. In particular, in November 2009, the Group sold its entire share of Pinmar S.L., which comprised 60% of the capital. In addition, with the aim of concentrating on medium and large yachts and to better respond to clients demands, the Group also sold 100% of Apreamare S.p.A. and the Torre Annunziata manufacturing facility in March of 2009.

In line with the commitment to continuous improvement, the Group maintained and upgraded the production of moulds and plugs, further strengthened the Advanced Yacht Technology operation, the internal naval research and design centre, and led to the creation of the new Centro Stile, one of the most advanced naval design and décor centers in the world. As part of the Industrial Direction, together with Advanced Yacht Technology, these centers will further strengthen the new product development capabilities of the group, thus guaranteeing the constant technical-aesthetic innovation and excellent quality for which Ferretti Group yachts have always stood out.

From the commercial perspective, the Ferretti Group will introduce an impressive 33 new models by 2013, of which 14 will be launched between next spring and the 2011 Genoa Boat Show. This will bring the group’s portfolio to around 60 models.

Once again with the aim of bringing new innovative ideas and opportunities to its customers,  the Group has established a strategic collaboration, through the Riva brand, with internationally-famous designer, Marc Newson. The goal was to introduce a ground breaking initiative combining the world of art and boating, which has resulted in the Aquariva by Marc Newson. This limited edition of only 22 yachts will be launched at a world preview on September 14^th at the Marc Newson Transport Exhibition in New York. Sold worldwide through the Gagosian Gallery in New York, she will also be displayed in Montecarlo during the Monaco Yacht Show. Again for Riva, the Ferretti Group has finalized an agreement with Gucci for the creation of the Aquariva Gucci, a limited edition of the legendary Aquariva, of which the décor has been customized by Frida Giannini, Creative Director of Gucci. Both partnerships were developed in association with Riva designer Officina Italiana Design, which designed Aquariva in the year 2000.

Demonstrating the commitment, dynamism and passion for which the Ferretti Group has always stood out, in 2009-2010 the Group further extended the range of excellent services offered to Clients, by launching:

To further enhance the After Sales and Customer Service programs, as of September, the Ferretti Group has launched a single technical assistance number for all its brands which is accessible to Clients all year round.

Beyond the consistent focus of the core markets in Europe and North America, the Group is expanding its concentration on Eastern Europe, the Far East, the Middle East and Latin America. An example of this expansion took place  in April 2010, where the Ferretti Group established Ferretti Group Brasil, a partnership with Spirit, a Brazilian company based in Sao Paolo, which produces and sells new and pre-owned yachts.

“With the aim of continuing to affirm its leadership within the nautical world, the Ferretti Group has undertaken a precise strategic plan to anticipate market trends and develop innovative, top performing new models, which able to satisfy a selective and exact demand of our customers” declaredNorberto Ferretti, Ferretti Group Chairman and Founder. “Today, our Clients are looking for products which correspond more and more to their real needs and, within this sphere, I am proud of the establishment of the new Centro Stile, one of the most advanced naval design and décor centers in the world. The center is formed of a team of around 30 professionals which, together with Advanced Yacht Technology, will avail itself as the best-known, most prestigious architects and naval design studios in the world. Centro Stile is on a continuous quest to develop aesthetic and design solutions for projects aiming to achieve top quality”.

“Around a year after my arrival at Ferretti Group, I am satisfied and proud of the results achieved thanks to the enormous commitment and determination of all those working with us. Together with myself and Founder and Chairman Norberto Ferretti, we are all working hard to develop the reorganization and re-launch project undertaken over the past few months” commentedSalvatore Basile, Ferretti Group CEO. “This has enabled us to achieve the results forecasted by our industrial plan, despite the difficulties of the nautical year which has just come to a close. Said results, together with the first signs of recovery in the world’s nautical market that we have seen over the past few months, indicates that we can now indulge in a little cautious optimism and look confidently towards the challenges of the next few months”.

Source: Ferretti Group