CID Report Q2

Page 1

INTRODUCTION

INTRO

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 Table 1

♦ ♦ ♦

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


N of yachts sold (cumulative)

CUMULATIVE NUMBER OF YACHTS SOLD IN Q1+Q2 2013 TO 2015 (Subtitle 2) 250 220 199

200

168

150

2013 2014

100

2015

50 0 January

February

March

April

May

June

Graph 1

CUMULATIVE VALUE OF YACHTS SOLD IN Q1+Q2 2013 TO 2015(*BASED ON LAST ASKING PRICE) (Subtitle 2) 2,000 1,816

1,800 1,600 Millions

1,400

1,289 1,236

1,200

2013

1,000

2014

800

2015

600 400 200 0 January

February

March

April

May

June

♌ 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 2


TOTAL YACHTS SOLD PER QUARTER 2013 TO 2015 (Subtitle 2) 160

141

N. of Yachts sold

140

113

120 100

79

70

80

86

98 2013 2014

60

2015

40 20 0 Quarter 1

Graph 3

Quarter 2

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

NEW LISTINGS VS SOLD YACHTS (Q1+Q2, 2014 VS 2015) (Subtitle 2) New Listings vs Sold Yachts (Q1 & Q2, 2015) 120 100 80 60 40 20 0

113 100

86 82

New Listings Sold

Q1

Q2

2015

2015

Graph 4

New Listings vs Sold Yachts (Q1 & Q2, 2014) 160 140 120 100 80 60 40 20 0

141 79

84

78

New Listings Sold

Q1

Q2

2014

2014

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.

Graph 5


NUMBER OF YACHTS SOLD BY SEGMENT IN 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%

Table 2

NUMBER OF YACHTS SOLD BY SEGMENT Q1+Q2 - 3 YEAR PERIOD (Subtitle 2) 250

200

(+67%) (+60%)

5 8

(+86%)

13

(+23%)

38

(+23%) (-18%)

3 5

150

(-50%)

7

4

16 31

60-70m

31

50-60m 74

100

(-4%)

40-50m 71

(+30%)

50 (+26%)

82

(-6%)

77

0 2013

30-40m 24-30m

57

65

70m+

2014

2015

Graph 6


BROKERAGE COMPARISON (Subtitle 1) BROKERAGE DEALS PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2) 30

N. of Deals

25 20 15 10 5

10 8 18 8

9

13 5

8

9 11

9 2

0

Deals representing seller

5 9 4

6

4

7 3

7

4 6 2

1

Deals representing buyer

3

4 6 1

7 2

Graph 7

INTERNAL DEALS

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)

BROKERAGE SALES PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2) N. of Yachts sold

25 20 15 10

20 16

15 11

10

10

10

8

9

8

5 0

Graph 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)


VALUE OF DEALS PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2) 250 217

106

103

65

76

47

61

41

40

64

92

29

42

21

101

113

138

117

120

116

63

122

100

50

141

53

150

40

63

Millions (€)

97

178

58

180

200

0

TOTAL VALUE OF YACHTS SOLD

TOTAL VALUE OF YACHTS BOUGHT

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).


# DEALS PER SEGMENT PER TOP 10 BROKERAGE COMPANIES YTD (Subtitle 2) 30 1 25

7 2

20

4 15

3

13 8

10 5

2

7

7

8

2 5

3 1

8

7

3

2

3

24-30

30-40

4

0

40-50

1 2 1

3

4

6

4

1

2

3

4

4

50-60

60-70

70+

1 2 1

1 3

5

6

1

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.


NEW BUILD MARKET REPORT

2

2

2

2

1 9 50

19 1

3 1

107 2 3 41

3 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)

SAIL, 36 12%

MOTOR SAIL

MOTOR, 255 88%

Chart 1

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


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

21 7% 81 28%

47 16%

11 4%

19 7%

42 15%

16 6% 40-45

45-50

48 17% 50-55 55-60

60-65

65-70

70-100

100+

Chart 2

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%

Length (m)

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


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

40-50

50-60

60-70

70-100

100+

27 1 2 3 4

11 17

6 4 1

10

1

8

8

2

1 5 1 1

Heesen

Feadship

1

5

4

1

2

1

2

7

Benetti

Lurssen

100+

1

6

70-100

2

4

60-70

3

1

50-60

4

7

40-50

17

2

7

4 2 2 Amels

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

7 4

1 5

Oceanco

Sanlorenzo

Sunseeker Yachts

Baglietto

3

4

5

1

6

1 5

2

The Italian Overmarin Sea Group e

7 1 2 4

3

3 4 1 3

2

2

1

1

4

5

4

5

5

Shipyards

♦ ♦ ♦ ♦ ♦

7

Graph 12

Total yachts under construction =37 Total yachts under construction = 22 Total yachts under construction = 8 Total yachts under construction = 20 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


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

27

17

11 4 10 Benetti unknown

7 Lurssen

10 6 4 Heesen

8 7 1 Feadship

8 3 5 Amels

7

7

7

7

6

1 3 3

4

2 4 1

1 Oceanco

Sanlorenzo

3 Overmarine

4

The Italian Sea Group 2

Under Offer

1

Sold

17

For Sale

10

7

6

7

3

6

3

4

4

4

1

5

1

3

3

1

Graph 13

♌

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


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.


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