Interview: Sanlorenzo Managing Director Massimo Perotti on partnership with Nautor Swan

Massimo Perotti is one of the most colourful personalities in the superyacht world. He led the Sanlorenzo company to the stock market and is a committed driver of innovative technologies that benefit the entire industry. We met the successful CEO in Düsseldorf for an in-depth interview.

Last year, we were able to visit your shipyard in La Spezia and see the rapid growth of the superyacht division with our own eyes. 32 large yacht deliveries in six years. What is the reason for this and what does the order book look like for the next few years?

During and after the coronavirus pandemic, we experienced a boom. The market for yachts over 40 metres is populated by ultra high net worth individuals, or UHNWIs for short. The proportion of UHNWIs is growing significantly faster than yacht builders can expand their capacities. In the last ten years, between 2012 and 2022, around 18,000 UHNWIs were added each year. For the years 2023 to 2027, i.e. the next four years, an increase of 24,000 is expected, i.e. six thousand more people per year who have a lot of money and want to enjoy their lives. So if we assume that the superyacht industry delivers around 1,200 superyachts a year, that equates to just five per cent of the super-rich who are added each year. And that in turn means that the market will continue to be strong next year. In terms of order backlog, we currently have an order backlog in our large yacht segment that is double the volume and turnover of 2024. And it covers our production until 2026.

So if you order a new Sanlorenzo yacht now, you won't get it for another three years?

That's how it is. We have two to three construction slots per year for the very large formats up to 73 metres in length. Once these have been sold, the next delivery will be in 2028. Last year, we were able to process an order backlog with a volume of 840 million euros. For this year, it is more than one billion euros and corresponds to the result for 2022, which was an outstanding year. You also have to bear in mind that 90 per cent of our yachts are ordered directly by customers who pay a deposit of between 20 and 40 per cent. That's a real order backlog!

We learned in Düsseldorf that there will soon be an SX110 and a 40-metre-long SX132. What is the growing SX line all about?

This product line, which we call Crossover, is a successful mix. It promises customers something different from all other series. Firstly, they are fast displacement boats that can travel at up to 22 knots. Secondly, we have plenty of space on board to transport all the water toys, which was something completely new when the line was launched ten years ago. After the Lehman Brothers crash in 2008 and the subsequent crisis, which also hit the superyacht industry hard, we asked ourselves in a meeting in 2013 what we should do to revitalise the market. The answer to this question was our cross-over model, a boat with more utility. Before 2008, most boats were bought to show off, show-off yachts so to speak - I'm rich, I'm powerful, I need a big boat. So we wanted to design something for owners who want to enjoy the sea. And then you need toys like jet skis or surfing and diving equipment and you don't have to go to the marina. You can drop anchor because you have a tender that's big enough to go ashore without getting everyone wet. So there was an idea that was really innovative for the industry. We have now sold over 100 SX models.

How did the extraordinary interiors of the SX models come about?

The market was crying out for something new. So we rethought the concept and showed a new way of living on the water, with a large owner's suite on the main deck, a modern bridge set-up and extravagant staircases by architect Piero Lissoni, true masterpieces that look like sculptures.

They were one of the first to equip larger models with IPS drives from Volvo Penta. The new SX132 even has four drive trains side by side. What is it about this system that convinces you so much?

The flat installation dimensions of the engines in combination with the IPS packages. Plus intuitive control, even for large yachts, plus the option of using the drive train as a dynamic positioning system! Only with these engines were we able to realise a stern platform on which we can also accommodate many toys and tenders. With the new IPS-40 model, which will go into series production next year, we will even be able to power yachts up to 50 metres in length with this flexible engine package. The IPS-40 units are powered by two D13 gensets coupled with a compact aftertreatment system to fulfil the latest IMO Tier III standards. The platform is also prepared for a mix of power sources, from combustion engines fuelled by renewable fuels to hybrid and all-electric solutions. The dual power consumption design offers flexibility and modularity on the way to greater sustainability. The new IPS units are installed as twin, triple or quadruple units, providing each vessel with four to eight engines. The complete package, from helm to propeller, is designed, tested and maintained by Volvo Penta as the sole integrator.

Sanlorenzo is one of the most design-orientated companies in the industry. You are also represented with your brand at art fairs. What do art and design mean to you personally and how does this affect your work?

Spending time with art and design helps you to develop and meet exciting personalities, such as Piero Lissoni, who has become a close friend over the last few years and has played a key role in shaping our CI. Artists help every company to stay innovative. From 2010 to 2020, our main goal was to establish a yacht design that was outside the norm. We started working with non-yacht architects such as Dordoni, Citterio Viel, Lissoni and Patricia Urquiola. These artists brought something new to our industry - new ideas, shapes, materials. After several years of investing heavily in design, we are heading towards a new goal by 2030: we are focussing even more on innovative technologies and sustainability, because the world is changing and we want to offer new solutions for increasingly demanding customers.

You currently have more than 130 yachts under construction. Which model is the best-selling?

You can't pin this down to a model, but rather to a segment. For us, these are yachts with lengths between 30 and 40 metres, i.e. 100 to 130 feet. Sanlorenzo is number one in the world in this size range. It is our strongest market segment, where we make the most profit and have few competitors. Within this niche, we offer a wide variety with the SL, SX and the new SP line. From fast gliders to cosy displacement yachts, everything is included.

Sanlorenzo and its subsidiary brand Bluegame are very popular with customers from the DACH region. How do you explain this and which models are of particular interest to German-speaking Sanlorenzo customers?

The DACH region is indeed important for us. It is the third most important European market for us after Turkey and Italy. If we exclude Bluegame from this calculation, yachts between 27 and 45 metres are particularly interesting for German customers.

Sanlorenzo had already tried to buy Perini Navi two years ago, but was unsuccessful. The fact that Nautor Swan and Sanlorenzo are aiming for a long-term strategic partnership nevertheless came as a surprise. What kind of connection do you have with Nautor and are you a sailor yourself?

Like Perini Navi, Nautor is a great brand with many parallels to Sanlorenzo. Nautor has a long tradition, is very design-orientated and delivers yachts of absolute top quality. We are currently carrying out due diligence, which will be completed in about two months. After that, the contract with Leonardo Ferragamo will be finalised, which should really be seen as a partnership thanks to his decades of experience in sailing.

Will there be many synergies between the two brands?

In any case. We can pool our industrial expertise, utilise synergies in purchasing and work closely together in yacht building, service and the sales channel. And Leonardo brings with him all his experience with sailing boats and regattas, as well as his image as one of the most important Italian sailors, and wants to be involved for a long time to come. Swan has a great heritage, just like Sanlorenzo. It is important to preserve and develop this heritage. So we have to bring in innovation, but always preserve the tradition of the brand. Our customers want exactly that: tradition! If you buy a Porsche 911 and you are a Porsche type - in Italy we say Porschista - then you buy a 911. Then you don't buy another Porsche, you buy a 911. The 911 is the example of how Porsche started in 1938. They changed the 911 ten or twelve times, but the 911 always had the same design. So we will be innovative, we will expand the business but keep the tradition. We have a customer base of around 1000 people, Nautor has 2800.

What exactly is planned?

We will gradually expand into new business areas to improve the company's profitability and grow the business. The sailing yacht market is a niche within a niche, and many sailors in the maxi sector are quite old and eventually switch to motor yachts. So this is where markets and our brands are merging.

We have heard a rumour that your daughter is a sailor and is involved in the deal with Nautor. Is that true?

Yes, that's true. We will dedicate ourselves to Nautor together and still have a lot to learn. At Sanlorenzo, I mainly focus my efforts on the product and on innovation. Especially in the yacht industry, the product is the key to success. When you buy a boat, the decision is made on instinct. It's about passion, about freedom! The first thing you see is the beauty and comfort, then there is the idea of how much freedom this product can offer you. That's the reason for spending so much money.

How is it that your daughter is so interested in sailing?

She taught herself. She is a woman who is very understated and lives as sustainably and ecologically as she can. She has that in common with some of the new customers we see in the industry. This generation really takes the issue of environmental protection seriously and to heart.

Will your daughter be involved in Nautor's business?

Yes, she will. She is very interested in the brand and the fantastic products.

What else do Nautor and Sanlorenzo have in common?

Nautor builds 30 yachts a year, we deliver 80 units. Neither brand favours mass production. Each boat is customised to the customer. Nautor and Sanlorenzo are also synonymous with comfort and top quality. Plus: We have customers who are extremely loyal to us. 70 to 80 per cent of our customers buy another boat from us when they are looking for something new. We manage to give our customers a kind of family feeling, they feel at home with us. They have arrived in a club of like-minded people.

Can you also tell us something about the acquisition of Simpson Marine, one of the most important dealers for Sanlorenzo in the APAC region?

This was a logical step. We continue to believe that the Asia-Pacific region, and China in particular, will be the fastest growing part of the world in financial terms. We have already seen impressive growth over the past ten years, albeit mainly in South East Asia. The prospects for the superyacht sector are good, as President Xi Jinping has introduced a new law that makes Hainan Island a tax-free zone. So if you buy a yacht in Hainan now, you save on taxes. In addition, large investments are being channelled into the construction of new marinas between Dakar and Hong Kong. So there are signs of a major opening up of the yacht market in China.

What is your assessment of the future of the market?

There are of course a number of geopolitical issues to keep an eye on. We expect the central bank to lower interest rates in the second half of the year. If that happens, it would be a nice, good sign for customers. We don't have the feeling that the market has come to a standstill, but we are noticing that customers are spending money more cautiously than in the very successful years from 2021 to now. You can now work out that the market will have to return to a normal level at some point. But that won't hurt us due to our full order books.

Developing new models is very expensive. Will you continue to launch several new models per year?

New models are the fuel of our business and we always want to be ahead of the market with our new products, especially in terms of innovation.

Speaking of innovations. You yourself have ordered the first 50-metre Sanlorenzo with a fuel cell drive. When will your 50Steel be travelling?

The ship enters the water on 27 April. The technology is on the right track and we are pioneering a more environmentally friendly yachting era with hydrogen propulsion. Of course, we now know some shipyards that are going down the same path - which is great - but we believe in our pioneering role for a more sustainable yacht industry.

Also interesting:

• Shipyard report: A visit to Baglietto, Riva and Sanlorenzo in La Spezia
• "Seven Sins": Sanlorenzo creates 52-metre yacht for charter guests
• Between tradition and modernity: a portrait of yacht designer Jarkko Jämsén