INTRO

INTRODUCTION

The Central Intelligence Department

BROKERAGE MARKET REPORT

SOME KEY FACT AND FIGURES (Subtitle 1) MARKET OVERVIEW – COMPARISON OF Q2 2014 VS Q2 2015 AND OF Q1+Q2 OF 2014 VS 2015 (Subtitle 2) *Taking into consideration only second hand brokerage sales over 24m

Q2 - 2014 Q2 - 2015 Q1+Q2 2014 Q1+Q2 2015 % Change 2014 vs 2015

Number of yachts sold

142 113 220 199 -10%

Total of last asking price

999,050,000 EUR

809,000,000 EUR

1,816,070,000 EUR

1,289,840,000 EUR

-30%

Average last asking price

7,085,000 EUR 7,225,000 Eur 8,255,000 EUR 6,490,000 EUR -22%

Average size 36 Meters 34 Meters 36 Meters 34 Meters

Average age 13 Years 11 Years 12 Years 12 Years

M/Y VS S/Y 129 VS 12 or 9.3%

107 VS 6 or 5.6%

201 VS 19 or 9.5%

186 VS 13 or 7%

Largest Yacht Sold

Nero – 90 Meters

Bistango – 62 Meters

Luna – 115 Meters

Bistango – 62 Meters

Most Expensive Yacht Sold

Ecstasea – 77M EUR

Bistango – 50M EUR

Luna – 200M EUR

Bistango – 50M EUR

♦ Overall number of sales in 2015 are 10% down compared to 2014 ♦ No sales reported in excess of 50M EUR in 2015 ♦ Overall value (based on the last asking price) are down 39% in 2015 compared to 2014

Table 1

CUMULATIVE NUMBER OF YACHTS SOLD IN Q1+Q2 2013 TO

2015 (Subtitle 2)

CUMULATIVE VALUE OF YACHTS SOLD IN Q1+Q2 2013 TO 2015(*BASED ON LAST ASKING PRICE) (Subtitle 2)

♦ Both reported number of sales and cumulative value of yachts sold in the first two quarters of 2015 are down from the same period of 2014

Graph 1

Graph 2

168

220 199

0

50

100

150

200

250

January February March April May June

N o

f yac

hts s

old

(cum

ulat

ive)

2013

2014

2015

1,236

1,816

1,289

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

January February March April May June

Mill

ions

2013

2014

2015

Graph 3

Graph 3 shows the total number of yachts sold in the first 2 quarters ♦ Q2 is significantly stronger than Q1 in 2015, as in previous years. ♦ Q1 saw a 9% increase between 2014 and 2015 ♦ Q2 went down by 21% between 2014 and 2015

TOTAL YACHTS SOLD PER QUARTER 2013 TO 2015 (Subtitle 2)

70

98

79

141

86

113

0

20

40

60

80

100

120

140

160

Quarter 1 Quarter 2

2013

2014

2015N. o

f Yac

hts s

old

♦ The trend of 2014 continues also in the first half of 2015 with more yachts sold than coming on the market, however this gap is smaller and there is almost the same amount of yachts coming to the market as being sold.

NEW LISTINGS VS SOLD YACHTS (Q1+Q2, 2014 VS 2015) (Subtitle 2)

78 84

79

141

020406080

100120140160

Q1 Q2

2014 2014

New Listings vs Sold Yachts (Q1 & Q2, 2014)

New Listings

Sold

82

100 86 113

020406080

100120

Q1 Q2

2015 2015

New Listings vs Sold Yachts (Q1 & Q2, 2015)

New Listings

Sold

Graph 4

Graph 5

Graph 6

NUMBER OF YACHTS SOLD BY SEGMENT IN Q1+Q2 (3 YEAR PERIOD) (Subtitle 2)

NUMBER OF YACHTS SOLD BY SEGMENT Q1+Q2 - 3 YEAR PERIOD (Subtitle 2)

TOTAL YACHTS SOLD Q1+Q2 YEAR 24-30m 30-40m 40-50m 50-60m 60-70m 70m+ >40m >50m

168 2013 65 (39%) 57 (34%) 31 (18%) 7 (4%) 5 (3%) 3 (2%) 46 (27%) 15 (9%)

220 2014 82 (37%) 74 (34%) 38 (17%) 13 (6%) 8 (4%) 5 (2%) 64 (29%) 26 (12%)

199 2015 77 (39%) 71 (36%) 31 (16%) 16 (8%) 4 (2%) 0 (0%) 51 (26%) 20 (10%)

587 TOTAL YACHTS 224 202 100 36 17 8 161 61

38% 34% 17% 6% 3% 1% 27% 10%

65 82 77

57

74 71

31

38

31 7

13

16

5

8

4

3

5

0

50

100

150

200

250

2013 2014 2015

70m+

60-70m

50-60m

40-50m

30-40m

24-30m

(+26%)

(+30%)

(+23%)

(+60%)

(+86%)

(+67%)

(-6%)

(-4%)

(-18%)

(+23%)

(-50%)

Table 2

Graph 7

N. o

f Dea

ls

Graph 7 shows the top 10 companies based on the number of deals closed by each company ♦ Fraser Yachts 28 deals, followed by Ocean Independence with 21 deals and Burgess with 20

Deals ♦ Burgess has closed more in-house deals than any other company (9), compared to Fraser Yachts

(8)

Graph 8 shows the top 10 companies based on the number of yachts sold ♦ Fraser Yachts sold 20 yachts over the first half of 2015, followed by Ocean Independence (16)

and Burgess (11)

BROKERAGE COMPARISON (Subtitle 1)

BROKERAGE DEALS PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2)

BROKERAGE SALES PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2)

18 13

11 9 9 7 7 6 6 7

10

8 9 8 5 6 4 4 4 3 8

5

9

2 4 3

1 2 1 2 0

5

10

15

20

25

30

Deals representing seller Deals representing buyer INTERNAL DEALS

20 16

11 15

10 10 10 8 9 8

0

5

10

15

20

25

N. o

f Yac

hts

sold

Graph 8

Graph 9

Graph 9 shows the total value of yachts sold and bought by the top 10 brokerage companies in the first half of 2015 (values are in million Euros). ♦ Burgess is the top performing brokerage firm in terms of value of total yachts sold (based on the

last asking price): 220M EUR compared to the 180M EUR of Fraser Yachts ♦ Moran represented the most sellers in terms of value (138M EUR), while C&N the most buyers

(101M EUR).

VALUE OF DEALS PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2)

0

50

100

150

200

250

120

117 13

8

40 64

53

92

41 61

47

97

63 40

101 58

63

21

65 42

29

Mill

ions

(€)

TOTAL VALUE OF YACHTS SOLD TOTAL VALUE OF YACHTS BOUGHT

116

178

141

217

113 122

106 103

76

180

Graph 10

Graph 10 shows the of deals per length segment by the top 10 brokerage companies in the first half of 2015. ♦ Fraser Yachts is strongest in the 30 to 40m segment and 40 to 50m segment (overall). ♦ Merle Wood, Burgess & IYC are the strongest performers in the 50 to 60m segment. ♦ Burgess is strongest in 60 to70m segment followed by Worth Avenue and N&J. ♦ No deals in 70+ segment have been recorded in the first half of 2015.

# DEALS PER SEGMENT PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2)

0

5

10

15

20

25

30

7 7 3 2 3 2 3 4

1

6

13

8

4 8 7

6 4 1 5

3

7

4

8 5

1 3

4 1

1

1

2

3 2

3 2

4 1 2

2

1

1

24-30 30-40 40-50 50-60 60-70 70+

NEW BUILD MARKET REPORT

107

1950

41

9

3

3

3

2

2

2

2

2

1

1

1

1

YACHTS ORDERED & UNDER CONSTRUCTION (Subtitle 1) ORDER INTAKES OVERVIEW - COMPARISON Q1+Q2 2014 vs Q1+Q2 2015 (subtitle 2) *Yachts over 40m were taken into consideration

Q2 2014 Q1+Q2 2014

Q2 2015 Q1+Q2 2015

Number of contracts signed

9 38 (*) 8 27 (*)

Average size

81.00M 59.00 M 51.00M 51.00 M

Largest Yacht Sold

BENETTI 107M (FB277)

BENETTI 107M (FB277)

DAMEN 69.20M (6911)

ECHO YACHTS 84M (TRIMARAN)

Table 3

(*) Please note that figures include deals closed in the years mentioned but with undefined contract dates. ♦ 16 Deals were closed in N/A quarters of 2014. ♦ 2 Deals were closed in N/A quarter of 2015.

MY & SY 40M+ CURRENTLY UNDER CONSTRUCTION (Subtitle 2)

A total of 285 yachts are currently under construction (comprised of orders prior to and including 2015, both “on spec” and commissioned by third party clients). The figures in Chart 1 include: 1) A total of 285 yachts under construction 2) 88% motor yachts 3) 12% sailing yachts 4) 5% “on hold” 5) 125 shipyards around the world

Chart 1

MOTOR, 255 88%

SAIL, 36 12%

MOTOR

SAIL

MY & SY CURRENTLY UNDER CONSTRUCTION – BREAKDOWN by SEGMENT (Subtitle 2)

Length (m) 40-50 50-60 60-70 70-100 100+ Total

Existing Fleet 979 333 167 147 38 1,664

Percentage of existing fleet 60% 20% 10% 8% 2% 100%

Fleet Under Construction 123 64 30 47 21 285

Percentage of fleet under construction 43% 22% 11% 17% 7% 100%

Percentage increases in current fleet 12% 19% 18% 33% 5% 17%

Chart 2

Table 4

♦ With 27 deliveries in 2015 (13 in Q2), the total existing fleet grew to 1,664 ♦ Out of the 285 yachts under construction, 10% (29) are currently on hold ♦ The 40-50m and the 70-100m+ markets are more active compared to under 70m segments,

with a 33% fleet increase in the 70-100m

81 28%

42 15%

48 17%

16 6%

19 7%

11 4%

47 16%

21 7%

40-45 45-50 50-55 55-60 60-65 65-70 70-100 100+

SHIPYARD COMPARISON (Subtitle 1) BREAKDOWN BY TOP 10 SHIPYARDS & SEGMENT – AS OF Q2 2015 (Subtitle 2)

11

♦ 40-50m Total yachts under construction =37 ♦ 50-60m Total yachts under construction = 22 ♦ 60-70m Total yachts under construction = 8 ♦ 70-100 Total yachts under construction = 20 ♦ 100m+ Total yachts under construction = 11

Benetti leads, followed by Lurssen and Heesen which takes over Feadship in Q2 due to the recent sale of the 51m Heesen 18151 back in June. While Feadship delivered the 44m Moon Sand (June) and the 101.5m Symphony (May). The majority of the new orders placed this quarter are from Italian yards (5 out of 8). (*) Yachts on hold were not taken into consideration

27

10 8 8 7 7 7 7 6

Benetti Lurssen Heesen Feadship Amels The ItalianSea Group

Overmarine Oceanco Sanlorenzo Sunseeker

Yachts Baglietto

100+ 1 6 1 3

70-100 2 4 1 5 4 4

60-70 3 1 1 2 1

50-60 4 7 1 2 3 2 2 1 1

40-50 17 2 4 5 4 5 5

17

2 4 5 4 5 5

4

7

1 2

3 2 2 1 1

3

1 1 2

1

2

4

1

5 4

4

1

6 1 3

Shipyards

40-50 50-60 60-70 70-100 100+

Graph 12

Benetti Lurssen Heesen Feadship Amels Oceanco Sanlorenzo Overmarine The ItalianSea Group

unknown 4 2

Under Offer 1

Sold 17 7 6 7 3 6 3 4 4

For Sale 10 4 1 5 1 3 3 1

10 4

1 5

1 3 3 1

17

7

6 7

3 6 3 4

4

1 4

2

BREAKDOWN BY TOP 10 SHIPYARDS & SALES STATUS (Subtitle 2)

♦ Out of the 92 yachts taken into consideration, as of Q2 2015, 30% are still available for sale; the same as Q1 this year.

27

11 10 8 7 7 7 7

Graph 13

8

MAIN TAKEAWAY POINTS (Title 1)

BROKERAGE MARKET (Subtitle 2)

♦ The overall number of yachts sold in Q2 went down between 2014 and 2015 by 21%. ♦ The average last asking price went up by 2% in Q2 of 2015 compared to Q2 of 2014,

but significantly down over the first two quarters by 22%. ♦ The sum of last asking price of Q2 2015 went down by 20% compared to Q2 2014.

♦ In the 24m+ size range, Fraser Yachts is strongest brokerage firm in terms of number of

deals closed and yachts sold (Graphs 7&8), but is second in terms of value (Graph 9).

NEW BUILD MARKET (Subtitle 2) ♦ There are 285 yachts in the 40m+ segment currently in build. 103 are in Italy, 47 in the

Netherlands and 40 in Turkey. ♦ Since the start of the year there has been a total of 49 launches in the 40m+ segment

made by 31 shipyards. The most active country has been Italy with 10 yachts laucnhed, followed by the Netherlands with 8. The largest launch was by Nobiskrug with the 139.6m WHITE PEARL.

♦ In terms of deliveries, we counted 27 yachts of which 3 are sailing yachts. The largest

vessel delivered was the 124.5 MARYAH, built by Neorion Shipyard in Greece. ♦ The 40-50m and 70m+ markets are the most active in terms of new orders. (*) All the analysis done in the brokerage section of this report is based on Boat International data and Fraser Yachts Central Intelligence Department data as of Q2 2015.