Aquafil

Investor Presentation • Sep 24, 2024

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] Le Eccellenze del made in Italy

September 25, 2024

Aquafil is Market Leader in Nylon

% on 1H 2024 REVENUES

Carpet yarn

• Contract

2

• Residential
• Automotive

Textile yarn

• Apparel

70 % 8 %

• Swimwear

• Sportwear

Polymers

• Industrial Molding 72% 16% 12%
  • Extrusion

  • Compounding

And Market Leader Worldwide

% on 1H 2024 REVENUES

Company Strengths

A successful Business Model. Proprietary technology with continuous R&D innovation.

Approx. 2% of revenues in R&D

Pioneer of Circularity with the ECONYL® Regeneration System, producing sustainable fibers and polymers from nylon 6 waste.

Approx. 53% of fiber turnover

Glocal. A Global Company with local productions.

19 Plants, 8 Countries on 3 Continents Ca. 2,400 Employees

Infinitely Recyclable, Endless Possibilities

100% regenerated & regenerable nylon.

Unique proprietary technology.

Same quality and performance as standard nylon without using new resources.

Our Main ESG Targets

Generate 60% of our fibers revenues from ECONYL® and other regenerated fibers

Collect 35,000 tons of post-consumer waste

Join the SBT initiative and set GHG reduction target

Monitor Group's key suppliers through audits and/or due diligence (in line with the European Supply Chain Act)

20% women in top and senior management positions within 3 years to assure gender equality

Draft a succession plan for our top management

Our Top ESG Achievements

1 st ranked company in the "Textiles" subindustry according to Morningstar Sustainalytics ESG Risk Rating

and

Silver Medal according to EcoVadis.

• Environmental Policy approval
• Scope 3 emissions reporting
• •Development, validation and issuance of ISO 4484-2 standard on microplastics
• Climate Change Risk and Vulnerability Assessment and Biodiversity Assessment

• •DE&I Policy definition
• Approval of Human Rights Policy
• Approval of Green Procurement Policy
• 45 thousand hours of training (+35% vs 2022)
• Launch of the talent management project

• Approval of new ESG Policy and establishment of an ESG Committee
• New remuneration and incentive policy with ESG parameters
• •Anti-Corruption Policy
• •Update of the Code of Ethics and Whistleblowing Procedure

Key figures 1H 2024

Volumes increased by 10.7% vs 1H2023

€ 288,1 Million of Revenues

52,8% ECONYL® fiber turnover

Decreasing trend in NFP: 243,0 vs 248,5 €/mln on 31/12/2023

1H 2024 Financial highlight – EBITDA and profitability

Marginality improvement linked to:

• Rationalization of personnel costs
• Benefits from efficiencies actions
• Implementation of cost-effective measures (utilities)
• USA fibers market and EMEA NTF volumes not fully supporting the EBITDA
• Temporary negative price effect alignment to the raw material cost

Recent market trends and competitive arena

USA

• Improvement in the macroeconomic scenario: cut of interest rates with impact on contract and residential sectors
• Volume growth also thanks to player exiting the market

Europe

• Consolidation trend in BCF already seen in 2Q 2024 also thanks to rising demand for high quality products in residential and automotive markets
• Volume growth also thanks to player exiting the market
• Polymers sector characterized by continuous recovery of the underlying markets activity

Asia Pacific

• Expected market rebound in residential and constant growth in the automotive sector
• Volume growth also thanks to player exiting the market

Industrial plan 2024 – 2026 – Key messages

Main assumption:

• selling prices and key raw materials prices estimated in line with 1H2024 values
• New 2024 –2026 industrial plan designed to:
  • further strengthen the Group's competitive positioning through volumes increase
  • accelerate the growth path, also through additional investments, partly leveraging on the €40m capital increase
  • support selected initiatives for:
    • technological improvement
    • increase in efficiency and automation of the production process, and
    • cost rationalization

Industrial plan 2024 – 2026 - Expected volumes by business lines

	BCF - Carpet yarn	NTF - Textile yarn	Polymers
'24E vs '23E	Substantially stable	Substantially stable	40%
'25E vs '24E	From +7% to +9%	From +15% to +18%	From +45% to +55%
'26E vs '25E	From +2% to +4%	From +4% to +7%	From 1% to +2%
CAGR '23-'26	+4%	+7%	+30%

All the expected results include the effects of the proposed capital increase of €40 mln.

Industrial plan 2024 – 2026 - Key indicators

Expected results 2024

• EBITDA target: ca. 65 €/mln
• NFP*: ca. 207 €/mln

Expected results 2025

• EBITDA target: 80 87 €/mln
• NFP*: 185 195 €/mln

Expected results 2026

• EBITDA target: 90 96 €/mln
• NFP*: 157 167 €/mln

All the expected results include the effects of the proposed capital increase of €40 mln.

* Positive means debt

Capital increase – Rationale

• Provide resources to support and accelerate industrial plan's investments and strategic initiatives
• Allow to grab potential opportunities for acquisition and consolidation in an evolving market in the coming years
• Increase strategic flexibility while significantly strengthening as a result the company's financial structure

THE MAJOR SHAREHOLDER AQUAFIN HOLDING HAS EXPRESSED ITS INTENTION TO SUBSCRIBE ITS PRO-QUOTA SHARE OF THE CAPITAL INCREASE

Appendix 1H 2024 results

Appendix - Disclaimer

This presentation and any material distributed in connection herewith (together, the "Presentation") prepared by Aquafil S.p.A. ("Aquafil" or "Company") do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities, and neither this Presentation nor anything contained herein shall form the basis of, ore be relied upon in connection with, or act as an inducement to enter into, any contract or commitment whatsoever.

The Presentation contains forward-looking statements regarding future events and the future results of Aquafil that are based on current expectations, estimates, forecasts, and projections about the industries in which Aquafil operates and the belief and assumptions of the management of Aquafil. In particular, among other statements, certain statements with regards to management objectives, trends in results of operations, margins, costs, return on equity, risk management are forward-looking in nature. Words such as 'expects', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Aquafil's actual result may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and regulatory developments in Italy and internationally. Any forward-looking statements made by or on behalf of Aquafil speak only as of the date they are made. Aquafil does not undertake to update forward-looking statements to reflect any changes in Aquafil's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

No reliance may be placed for any purposes whatsoever on the information contained in the Presentation, or any other material discussed in the context of the presentation of such material, or on its completeness, accuracy or fairness. The information contained in the Presentation might not be independently verified and no representation or warranty, express or implied, is made or given or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document or any other material discussed in the context of the presentation of the Presentation. None of the Company, nor any of its respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of the Presentation or its contents or otherwise arising in connection therewith.

The reader should, however, consult any further disclosure Aquafil may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.

Appendix - Definitions

«FIRST CHOICE REVENUES»	"First choice revenues" are revenues generated by the sale of fibers and polymers, gross of any adjustments (for example, discounts and allowances), but excluding revenues generated by "non-first choice products", revenues generated by Aquafil Engineering GmbH and "other revenues". On the basis of the 2019 figures, these revenues accounted for more than 95% of the Group's consolidated revenues
EBITDA	This is an alternative performance indicator not defined under IFRS but used by company management to monitor and assess the operating performance as not impacted by the effects of differing criteria in determining taxable income, the amount and types of capital employed, in addition to the amortisation and depreciation policies. This indicator is defined by the Aquafil Group as the net result for the year adjusted by the following components: income taxes, investment income and charges, amortisation, depreciation and write-downs of tangible and intangible assets, provisions and write downs, financial income and charges, non-recurring items.
NFP	On April 29, 2021, Consob issued "Call to attention No. 5/21" in which it highlighted that the new "ESMA Guidelines" of March 4, 2021 replaced on May 5, 2021 those of preceding Consob communications. In guideline No. 39 requires that financial statement disclosure includes the following definition of net financial debt: A. Liquidity B. Other liquidity C. Other current financial assets D. Liquidity (A+B+C) E. Current financial debt (including debt instruments but excluding the current portion of non-current financial debt) F. Current portion of non-current financial debt G. Current financial debt (E + F) H. Net current financial debt (G - D) I. Non-current financial debt (excluding current portion and debt instruments) J. Debt instruments K. Trade payables and other non-current payables L. Non-current financial debt (I + J + K) M. Total financial debt (H + L)

Ownership Structure

A capital structure with 2 type of Shares:

• a) Share A: ordinary share;
• b) Share B: dedicated to Bonazzi's family with the same economic right of ordinary share but with 3 voting right for any share;

Appendix - Sector Data – Caprolactam price evolution

Appendix - Consolidated Income Statement

CONSOLIDATED INCOME STATEMENT	Half Year 2024 of wich non		Half Year 2023 of wich non		Second	of wich non	Second	of wich non
€/000		current		current	Quarter 2024	current	Quarter 2023	current
Revenue	288.133	-	311.117	-	140.633	-	144.297	-
of which related parties	158	-	151	-	75	-	76	-
Other Revenue	3.285	37	4.947	3	1.646	5	2.230	1
Total Revenue and Other Revenue	291.418	37	316.064	3	142.279	5	146.527	1
Raw Material	(137.791)	-	(158.938)	-	(64.346)		(76.754)
Services	(61.701)	(148)	(67.864)	(1.018)	(31.059)	(74)	(31.622)	(215)
of which related parties	(329)	-	(264)	-	(173)		(139)
Personel	(62.175)	(830)	(63.019)	(515)	(31.209)	(577)	(30.985)	(197)
Other Operating Costs	(1.659)	(109)	(1.764)	(114)	(893)	(105)	(901)	(111)
of which related parties	(35)	-	(35)	-	(17)	-	(17)	-
Depreciation and Amorti zation	(26.987)	-	(24.287)	-	(13.582)	-	(12.458)	-
Provisions & Write-downs/(releases)	11	-	178	-	(1)	-	28	-
Capitalization of Internal Construction Costs	1.976	-	3.736	-	1.059	-	2.286	-
EBIT	3.092	(1.049)	4.106	(1.645)	2.249	(751)	(3.880)	(522)
Income (loss) from Investments	-	-	-	-	0	-	0	-
Other Financial Income	641	-	339	-	(34)	-	224	-
Interest Expenses	(10.531)	-	(7.505)	-	(5.093)	-	(4.225)	-
of which related parties	(49)	-	(87)	-	(21)	-	(42)	-
FX Gains and Losses	(356)	-	983	-	(272)	-	1.159	-
Profit Before Taxes	(7.153)	(1.049)	(2.078)	(1.645)	(3.151)	(751)	(6.721)	(522)
Income Taxes	1.020	-	(2.058)	-	122		(706)
Net Profit (Including Portion Attr. to Minority )	(6.133)	(1.049)	(4.136)	(1.645)	(3.029)	(751)	(7.427)	(522)
Net Profit Attributable to Minority Interest	-	-	-	-	-	-	-	-
Net Profit Attributable to the Group	(6.133)		(4.136)		(3.029)	(751)	(7.427)	(522)

Appendix - EBITDA and Adjusted Operating Results

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	Half Year 2024	Half Year 2023	Second Quarter 2024	Second Quarter 2023
Net Profit (Including Portion Attr. to Minority )	(6.133)	(4.136)	(3.029)	(7.427)
Income Taxes	(1.020)	2.058	(122)	706
Amortisation & Depreciation	26.987	24.287	13.582	12.458
Write-downs & Write-backs of intangible and tangible assets	(11)	(178)	1	(28)
Financial items (*)	11.709	7.651	6.157	3.524
No recurring items (**)	1.049	1.645	750	522
EBITDA	32.581	31.327	17.339	9.755
Revenue	288.133	311.117	140.633	144.297
EBITDA Margin	11,3%	10,1%	12,3%	6,8%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	Half Year 2024	Half Year 2023	Second Quarter 2024	Second Quarter 2023
EBITDA	32.581	31.327	17.339	9.755
Amortisation & Depreciation	26.987	24.287	13.582	12.458
Write-downs & Write-backs of intangible and tangible assets	(11)	(178)	1	(28)
EBIT Adjusted	5.606	7.218	3.757	(2.675)
Revenue	288.133	311.117	140.633	144.297
EBIT Adjusted Margin	1,9%	2,3%	2,7%	-1,9%

(*) The financial items include: (i) financial charges and other bank charges of Euro (10.4) million, (ii) cash discounts of Euro (1.5) million, (iii) financial income of Euro 0.6, and (iv) exchange loss of Euro (0.4) million. (**) This mainly includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.11) million, (ii) extraordinary legal and administrative consulting costs for Euro(0,04) million (iii) restructuring costs for Euro (0.83)million, and (iv) other non-recurring charges and revenues for Euro (0.07) million.

Appendix - Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2024	2023
Intangible Assets	16.978	19.080
Goodwill	15.590	15.103
Tangible Assets	239.835	251.604
Financial Assets	616	534
of which related parties	188	79
Investments & Equity metod	1.113	1.023
Deferred Tax Assets	21.531	18.545
Total Non-Current Assets	295.664	305.889
Inventories	187.338	189.493
Trade Receivable	27.536	26.206
of which related parties	154	351
Financial Current Assets	6.012	5.703
Current Tax Receivables	1.590	1.619
Other Current Assets	17.507	14.644
of which related parties	6.780	5.854
Cash and Cash Equivalents	140.139	157.662
Total Current Assets	380.121	395.327
Total Current Assets	675.785	701.216

Appendix - Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2024	2023
Share Capital	49.722	49.722
Reserves	80.149	101.379
Group Net Profit for the year	(6.133)	(25.849)
Group Shareholders Equity	123.738	125.252
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	-
Total Sharholders Equity	123.739	125.253
Employee Benefits	4.800	5.104
Non-Current Financial Liabilities	283.741	308.741
of which related parties	2.985	3.217
Provisions for Risks and Charges	1.714	1.710
Deferred Tax Liabilities	14.450	13.324
Other Payables	4.877	5.852
Total Non-Current Liabilities	309.582	334.731
Current Financial Liabilities	105.390	103.161
of which related parties	1.477	1.872
Current Tax Payables	1.827	1.219
Trade Payables	113.992	116.006
of which related parties	225	551
Other Liabilities	21.255	20.846
Total Current Liabilities	242.464	241.232
Total Equity and Liabilities	675.785	701.216

Appendix - Net Financial Position

NET FINANCIAL DEBT	At June 30,	At December 31,
€/000	2024	2023
A. Liquidity	140.139	157.662
B. Cash and cash equivalents
C. Other current financial assets	6.012	5.703
D. Liquidity (A + B + C)	146.151	163.364
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 4.237)	( 2.438)
F. Current portion of non-current financial debt	( 101.154)	( 100.723)
G. Current financial debt (E + F)	( 105.390)	( 103.161)
H. Net current financial debt (G - D)	40.761	60.204
I. Non-current financial debt (excluding current portion and debt instruments)	( 232.090)	( 251.350)
J. Debt instruments	( 51.651)	( 57.391)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 283.741)	( 308.741)
M. Total financial debt (H + L)	( 242.980)	( 248.537)

Appendix - Consolidated Cash Flow Statement (1/2)

CASH FLOW STATEMENT €/000	At June 30, 2024	At June 30, 2023
Net Profit (Including Portion Attr. to Minority )	(6.133)	(4.136)
of which related parties	(255)	(234)
Income Taxes	(1.020)	2.058
Income (loss) from Investments	-	-
Financial income	(642)	(339)
Financial charges	10.531	7.505
of which related parties	49	87
FX (Gains) and Losses	356	(983)
(Gain)/Loss on non - current asset Disposals	(92)	(172)
Provisions & Write-downs/(releases)	(11)	(178)
Amortisation, depreciation & write-downs of tangible and intangible assets	26.987	24.287
Cash Flow from Operating Activities Before Changes in NWC	29.976	28.043
Change in Inventories	2.155	42.846
Change in Trade and Other Payables	(2.015)	(21.805)
of which related parties	(326)	80
Change in Trade and Other Receivables	(1.289)	1.466
of which related parties	197	213
Change in Other Assets/Liabilities	(517)	(4.644)
of which related parties	(926)	(3.497)
Net Interest Expenses	(9.843)	(6.570)
Income Taxes paid	(1.189)	(5.639)
Change in Provisions for Risks and Charges	(408)	(971)
Cash Flow from Operating Activities (A)	16.871	32.726

Appendix - Consolidated Cash Flow Statement (2/2)

CASH FLOW STATEMENT	At June 30,	At June 30,
€/000	2024	2023
Investing activities
Investment in Tangible Assets	(7.989)	(16.273)
Disposal of Tangible Assets	180	533
Investment in Intangible Assets	(1.247)	(2.500)
Disposal of Intangible Assets	2	-
Investment of Financial Assets	(113)	(151)
Dividends	-	-
Cash Flow used in Investing Activities (B)	(9.168)	(18.390)
Financing Activities
Increase in no current Loan and borrowing	20.000	35.000
Decrease in no current Loan and borrowing	(41.400)	(35.821)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	(3.825)	(571)
of which related parties	(736)	(1.163)
Dividends Distribution	-	(12.027)
Acquisition of treasury shares	-	(598)
Cash Flow from Financing Activities ( C)	(25.225)	(14.016)
Net Cash Flow of the Year (A)+(B)+(C)	(17.523)	319

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