SUNREEF 2009 FINANCIAL RESULTS

Cut and Copy of Sunreef's latest press release.

6 May 2009,

Gdańsk, Poland - The Polish marine success story, Sunreef Yachts, www.sunreef-yachts.com, based in Gdańsk begins its twelfth year of trading with positive financial results and high expectations for its continued steady growth as it builds its reputation as the global leader in luxury catamarans, both power and sail, as well as multihull superyachts.

Sunreef was established in 1998 as a charter company and then began producing yachts in 2000 in a Gdańsk shipyard. The company delivered its first catamaran, the Sunreef 74 CHE, two years later in 2002 and has since seen sales and operating profit grow consistently along with its range of products and services.

Sunreef’s in-house charter agency, Sunreef Yachts Charter, www.sunreef-charter.com, now has over 1700 yachts in its fleet as its own 2009 net sales rose from €2.3 million; representing 30 per cent growth in comparison to 2008. Moreover, 50 per cent increase is expected in 2010. This success was possible thanks to the largest rental selection of luxury catamarans in the world, as well as from last year's admission to MYBA and its comprehensive database.

‘‘Our success to date comes from our focus on innovation and from our extended range of produced yachts,” says Nicolas Lapp, Sunreef's vice president, ‘‘In 2008, we launched two new yacht models, the 70 Sunreef Power and the Sunreef 70 Sailing that have already been sold in several units. This year, we have just launched our first superyacht Sunreef 102 Double Deck IPHARRA. The second mega catamaran, the Sunreef 114 CHE is now being finished at the shipyard with its delivery scheduled for the end of May 2010. We have also redesigned our flagship yacht, the Sunreef 62 Sailing, the new version of which is currently under construction and whose first unit will be launched at the beginning 2011. At the same time, we are now designing new, performant catamarans range over 80 feet in length with the first Sunreef 80 Ultimate designed for a client”.

Sunreef Yachts is actually comprised of three business units: building – Sunreef Yachts, chartering – Sunreef Yachts Charter and Yacht Management employing 450 workmen and employees, the workforce keep constantly growing at this time. In addition to its production and headquarter activities in Poland, the company has worldwide brokers network in Spain, Italy, France, Greece, Turkey, Qatar, India, Australia, USA and China, to name but a few.

From 2008 to 2009, Sunreef’s turnover from production increased from €27.6 to €28.1 million with expectations for 2010 that this will stay on the same level as annual deliveries of bigger boats 70ft+ should reach 10 units and new superyachts should be commissioned after the sea trials of the 102-footer.

Despite a challenging labour market in Poland, this accelerating production rate was achieved by optimising production techniques which, for example, have reduced production time for Sunreef’s most popular model, the Sunreef 62, from 9 to 5 months thanks to the Vacuum Infusion process. In addition, in 2009, the shipyard introduced Lean Manufacturing into its structure, thereby improving the quality of every stage of its production and reduced to a minimum all material and time losses.

As for Yacht Management services which was introduced as early as in 2008, the department has generated an income of €81 thousand and forecasts 30 per cent growth in 2010.
Sunreef is also increasing its overall production capacity with the acquisition of 16 hectares of land in the nearby Gdańsk Wiślinka for the construction of a new 24,000 square metre purpose-built manufacturing facility with possible enlargement capacity, due for completion and occupancy in 2011/12. This facility will enable Sunreef to build yachts up to 50 metres in length.

One of the significant investments for 2010 will be the construction of moulds for the 60 Sunreef Power and the Bluereef 87, two new yacht models scheduled for 2011.

The Management’s forecast for the coming years is also promising, if slightly more modest, taking into account the uncertain world financial situation. Sunreef’s financial plan for 2010 budgets for a 15 per cent growth in sales in 2009.

To provide its clients with a full range of support services, Sunreef has also established its after-sales service, refit and Brokerage Division which now has more than 800 yachts in its data base.

‘‘Our goal for the future is quite simply to maintain our position as the world’s largest manufacturer of large and luxury catamarans from 60 to 200 feet,” concluded Lapp.