Aquafil

Investor Presentation • Apr 15, 2024

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] Mid & Small By Virgilio London, April 18, 2024

Aquafil is Market Leader in Nylon

% on FY 2023 REVENUES

Carpet yarn

• Contract
• Residential
• Automotive

Textile yarn

• Apparel

70 % 8 %

• Swimwear

• Sportwear

Polymers

• Industrial Molding 73% 19% 8%
  • Extrusion
  • Compounding
    -

And Market Leader Worldwide

% on FY 2023 REVENUES

Key figures

€ 571,8 Million of Revenues FY23

€ 47,5 Million EBITDA FY23

€ 248,5 Million NFP

49,6% ECONYL® fiber turnover

Company Strengths

A successful Business Model. Proprietary technology with continuous R&D innovation. Manufacturing and operational excellence focused on high end segments.

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

Approx. 50% of fiber turnover.

Glocal. A Global Company with local productions.

Leading the Circular Economy Revolution

- Source: Ellen MacArthur Foundation

Our Main Milestones Towards Circularity from 1990 onwards:

• Investments to "close the loop" through cutting edge technologies
• Adoption of a "Life Cycle" approach
• ECONYL® Regeneration System
• Healthy Seas Foundation
• USA Aquafil Carpet Recycling establishment
• USA Aquafil Carpet Collection acquisition

Eco-Design is our next crucial step. Imagine innovative products, created to be fully recyclable at the end of its life.

Infinitely Recyclable, Endless Possibilities

100% regenerated & regenerable nylon.

Unique proprietary technology.

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

WASTE IN

ECONYL® nylon is made from waste otherwise destined for the landfill

NO WASTE OUT

Our path to Sustainability RETHINKING PRODUCTS IN A

Since 2008, we have formalized our commitment in our ECO PLEDGE®, a set of five principles that guide and inspire all the work of the Group.

CIRCULAR PERSPECTIVE

Innovating products to make them more and more circular, giving new life to waste materials, in an infinite cycle.

PROTECTING THE ENVIRONMENT

Producing consciously and responsibly, pursuing continuos improvement and excellence in every aspetc.

ATTENTION TO THE WELL-BEING OF PEOPLE

People who, with commitment and passion, are the foundation of the Group.

SUPPORT LOCAL COMMUNITIES

Grow in harmony with local communities, promoting a prosperous and respectful development of their territory.

SHARED RESPONSIBILITY ALONG THE SUPPLY CHAIN

Collaborate with suppliers and customers to bring about change and environmental sustainability in the entire sector.

Our Main ESG Targets

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

Collect 35,000 tons of postconsumer 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 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.

• 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

Chair (1) (3) Corporate Governance

• (1) Director who has declared that he satisfies the independence requirements pursuant to Articles 147-ter, paragraph 4 of the Consolidating Law on Finance, as well as Article 3 of the Code of Self-Governance;
• (2) Member and President of Audit, Risk and Sustainability Committee;
• (3) Member of Audit, Risk and Sustainability Committee;
• (4) Member and President of Appointment and Remuneration Committee;
• (5) Member of Appointment and Remuneration Committee.

Diversity: 44,4% women

Independent Directors: 44,4%

Chiara Mio

Franco Rossi Director

Francesco Profumo Director (1) (3) (4)

Giulio Bonazzi CEO

Silvana Bonazzi

Patrizia Riva Director (1) (2) (5)

Director

Stefano Loro Director

Francesco Bonazzi Director

Ilaria Maria Dalla Riva Director (1) (5)

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;

Financial Results

FY23 – Key Message

FY23 General Results

• Revenues 571,8 €/mil (-16,4 % vs FY 22)
• EBITDA 47,5 €/mil (-48,5 % vs FY 22)

ECONYL® Branded Products ¹

• 49,6% of revenues generated by fibers

Slight decline in volumes compared to 2022 mainly related to fibers for garments in EMEA	Decline in margins in 2023 due to the high unit value of the inventories stocked in 2022 compared to the market value of raw materials
ECONYL® Branded and	Completed the start-up
regenerated products	activities of engineering plastics

accounted for 49,6% of revenues generated from fibers

(1) Revenues includes both ECONYL® branded and regenerated products.

Completed the start-up activities of engineering plastics in EMEA

FY23 – Main Results

	SALES VOLUME1 (4,7)% compared to FY22 10,4% compared to 4Q22 EMEA		EBITDA Lower to 4Q 2022 Due to			NET PROFIT Lower to 4Q 2022 Strong decrease		NFP In line vs Dec. 22 NFP/EBITDA LTM
Market recovery for BCF and polymers product lines in Q4 USA Slightly below previous year			high unit cost of the raw materials stocked in 2022 (approx. €24	mln.)		Due to EBITDA decrease		x2,69 on 31st December 2022 X5,23 on 31st December 2023
	Asia Pacific market resilience ECONYL® ca 49,6% of Fiber Revenues		and decline in volumes sold		and Increase of net financial costs

NFP evolution

in €/mln

Our expectations

Expected volumes by business lines

2024 – 2025 Expected

Our view for the future

• EBITDA

2024 target: 76 – 82 €/mln 2025 target: 84 – 92 €/mln

• NFP**

2024 target: 225 – 235 €/mln 2025 target: 190 – 200 €/mln

** Does not include IFRS 16 effect

Definition

«FIRST CHOICE REVENUES»

"First choice revenues" are revenues generated by the sale of fiber 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". Based on historical 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)

Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	December	of wich	December	of wich	Fourth	of wich	Fourth	of wich
€/000	2023	non-current	2022	non-current	Quarter 2023	non-current	Quarter 2022	non-current
Revenue	571.806	209	684.074	1.160	129.577	208	154.169	311
of which related parties	283		0 435	0	56		0 396	0
Other Revenue	8.902	676	13.031	218	1.352	51	4.539	92
Total Revenue and Other Revenue	580.708	885	697.105	1.378	130.929	259	158.708	403
Raw Material	(291.620)	(269)	(317.815)	(480)	(61.451)	146	(72.378)	(5)
Services	(126.907)	(2.065)	(168.472)	(1.581)	(30.920)	(802)	(38.567)	(487)
of which related parties	(524)	0	(465)	0	(136)	0	(123)	-
Personel	(125.034)	(3.004)	(126.875)	(1.565)	(30.814)	(659)	(30.791)	(408)
Other Operating Costs	(3.644)	(493)	(4.038)	(653)	(926)	(312)	(591)	(362)
of which related parties	(70)	0	(70)	-	(18)	0	(18)	-
Depreciation and Amorti zation	(49.635)	-	(47.851)	-	(13.653)	0	(11.897)	-
Provisions&Write-downs	1.002	-	(180)	-	785	0	(344)	-
Capitalization of Internal Construction Costs	6.271		0 5.687	-	1.584		0 1.020	-
EBIT	(8.859)	(4.946)	37.561	(2.901)	(4.465)	(1.368)	5.160	(859)
Income (loss) from Investments	90		0 23	-	0		0 93	-
of which related parties	90		0 183	-	0		0 93	-
Other Financial Income	1.022		0 4.869	-	401		0 289	-
Interest Expenses	(19.042)	0	(8.369)	-	(7.135)	0	(2.369)	-
of which related parties	(146)	0	(140)	-	(30)	0	(47)	-
FX Gains and Losses	796		0 2.783	-	98		0 711	-
Profit Before Taxes	(25.992)	(4.946)	36.868	(2.901)	(11.101)	(1.368)	3.885	(859)
Income Taxes	143	0	(7.717)	-	2.320	0	(871)	-
Net Profit (Including Portion Attr. to Minority )	(25.849)	(4.946)	29.151	(2.901)	(8.781)	(1.368)	3.014	(859)
Net Profit Attributable to Minority Interest	(0)		0 0	-	(0)	0	(0)	-
Net Profit Attributable to the Group	(25.849)	(4.946)	29.151	(2.901)	(8.781)	(1.368)	3.014	(859)

Consolidated Income Statements – Revenues FY 2023

FY 23				BCF (fiber for carpet)				NTF (fibre for textile)				Polymers						TOTAL
€/mln	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	%23	%22
EMEA	184,6	217,9	(33,3)	(15,3)%	71,4	103,3	(31,9)	(30,9)%	39,2	51,8	(12,6)	(24,3)%	295,2	372,9	(77,8)	(20,9)%	51,6%	54,5%
North America	148,1	166,1	(18,0)	(10,8)%	29,7	31,9	(2,3)	(7,2)%	4,9	4,0	0,8	20,7 %	182,7	202,1	(19,4)	(9,6)%	31,9%	29,5%
Asia e Oceania	87,0	100,3	(13,3)	(13,2)%	4,2	4,1	0,1	3,5 %	0,8	1,4	(0,6)	(45,6)%	92,0	105,8	(13,8)	(13,0)%	16,1%	15,5%
RoW	0,8	0,8	0,1	6,6 %	1,2	2,5	(1,4)	(54,2)%	0,0	0,0	0,0	N.A.	2,0	3,3	(1,3)	(40,0)%	0,3%	0,5%
TOTAL	420,6	485,0	(64,5)	(13,3)%	106,4	141,8	(35,4)	(25,0)%	44,8	57,2	(12,4)	(21,6)%	571,8	684,1	(112,3)	(16,4)%	100,0%	100,0%
% Tot	73,6%	70,9%			18,6%	20,7%			7,8%	8,4%			100,0%	100,0%

FY - % Revenues by Geographical Area

FY - % Revenues by Product Line

Consolidated Income Statements – EBITDA & EBITD Adj

	December	Fourth	Fourth
2023	2022	Quarter 2023	Quarter 2022
(25.849)	29.151	(8.781)	3.014
(143)	7.717	(2.320)	871
49.635	47.851	13.653	11.897
(1.002)	180	(785)	344
20.002	4.484	7.364	2.165
4.946	2.901	1.368	859
47.500	92.261	10.499	19.056
571.806	684.074	129.577	154.169
8,3%	13,5%	8,0%	12,4%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	December 2023	December 2022	Fourth Quarter 2023	Fourth Quarter 2022
EBITDA	47.500	92.261	10.499	19.056
Amortisation & Depreciation	49.635	47.851	13.653	11.897
Write-downs & Write-backs of intangible and tangible assets	(1.002)	180	(785)	344
EBIT Adjusted	(1.133)	44.230	(2.369)	6.815
Revenue	571.806	684.074	129.577	154.169
EBIT Adjusted Margin	-0,2%	6,5%	-1,8%	4,4%

(*) The financial items include: (i) financial income of Euro 1.1 million (ii) financial charges and other bank charges of Euro (19.1) million, (iii) cash discounts of Euro (2.8) million, and (iv) exchange gains of Euro 0.8 million.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.6) million, (ii) restructuring costs for Euro (3.0)million, (iii)extraordinary legal and administrative consulting costs for Euro(0,5) million, (iv) (iv) Non-recurring costs for industrial rationalization activities of BCF (Aquafil UK) of €(1.1) million, (v) other non-recurring revenues for Euro 0.4 million.

Appendix Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2023	2022
Intangible Assets	19.080	21.596
Goodwill	15.103	15.647
Tangible Assets	251.604	247.469
Financial Assets	534	831
of which related parties	79	318
Investments & Equity metod	1.023	1.018
Other Assets	0	426
Deferred Tax Assets	18.545	11.519
Total Non-Current Assets	305.889	298.506
Inventories	189.493	260.808
Trade Receivable	26.206	28.553
of which related parties	351	376
Financial Current Assets	5.703	9.964
Current Tax Receivables	1.619	580
Other Current Assets	14.644	15.862
of which related parties	5.854	247
Cash and Cash Equivalents	157.662	110.682
Asset held for sales	0	0
Total Current Assets	395.327	426.449
Total Current Assets	701.216	724.955

Appendix Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2023	2022
Share Capital	49.722	49.722
Reserves	101.379	96.528
Group Net Profit for the year	(25.849)	29.151
Group Shareholders Equity	125.252	175.401
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	12.553	175.402
Employee Benefits	5.104	5.192
Non-Current Financial Liabilities	308.741	285.385
of which related parties	3.217	5.262
Provisions for Risks and Charges	1.710	1.975
Deferred Tax Liabilities	13.324	9.237
Other Payables	5.852	8.985
Total Non-Current Liabilities	334.731	310.774
Current Financial Liabilities	103.161	83.146
of which related parties	1.872	2.957
Current Tax Payables	1.219	3.630
Trade Payables	116.006	126.840
of which related parties	551	270
Other Liabilities	20.846	25.163
of which related parties	0	230
Total Current Liabilities	241.232	238.779
Total Equity and Liabilities	701.216	724.955

NET FINANCIAL DEBT	At December 31,	At December 31,
€/000	2023	2022
A. Liquidity	157.662	110.682
B. Cash and cash equivalents	-
C. Other current financial assets	5.703	9.964
D. Liquidity (A + B + C)	163.364	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	(2.438)	(1.333)
F. Current portion of non-current financial debt	(100.723)	(81.814)
G. Current financial debt (E + F)	(103.161)	(83.146)
H. Net current financial debt (G - D)	60.204	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	(251.350)	(215.084)
J. Debt instruments	(57.391)	(70.301)
K. Trade payables and other non-current payables	-
L. Non-current financial debt (I + J + K)	(308.741)	(285.385)
M. Total financial debt (H + L)	(248.537)	(247.885)

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At December 31,	At December 31,
€/000	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(25.849)	29.151
of which related parties	(367)	(57)
Income Taxes	(143)	7.717
Income (loss) from Investments	(90)	(23)
of which related parties	(90)	(183)
Financial income	(1.022)	(4.869)
Financial charges	19.041	8.369
of which related parties	146	140
FX (Gains) and Losses	(796)	(2.783)
(Gain)/Loss on non - current asset Disposals	(177)	(183)
Provisions&Write-downs	(1.002)	180
Amortisation, depreciation & write-downs	49.635	47.851
Cash Flow from Operating Activities Before Changes in NWC	39.597	85.410
Change in Inventories	71.315	(83.469)
Change in Trade and Other Payables	(10.834)	245
of which related parties	281	(82)
Change in Trade and Other Receivables	3.242	2.722
of which related parties	2 5	(305)
Change in Other Assets/Liabilities	(7.754)	(4.169)
of which related parties	(5.837)	2.905
Net Interest Expenses	(15.311)	(8.005)
Income Taxes paid	(9.637)	(3.840)
Change in Provisions for Risks and Charges	(1.033)	(2.012)
Cash Flow from Operating Activities (A)	69.585	(13.118)

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At December 31,	At December 31,
€/000	2023	2022
Investing activities
Investment in Tangible Assets	(29.157)	(34.864)
Disposal of Tangible Assets	608	384
Investment in Intangible Assets	(4.620)	(4.163)
Disposal of Intangible Assets	1 3	132
Effect Bluloop e Aquafil Cile	-	(146)
of which Asset	-	(37)
of which Goodwill	-	-
of which cash	-	-
of which other assets and liabilities	-	(109)
Investment of Financial Assets	(155)	(160)
Dividends	9 0	183
of which related parties	9 0	183
Cash Flow used in Investing Activities (B)	(33.221)	(38.634)
Financing Activities
Increase in no current Loan and borrowing	100.049	94.000
Decrease in no current Loan and borrowing	(72.026)	(53.244)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	(4.818)	(19.462)
of which related parties	(2.890)	(2.208)
Dividends Distribution	(11.992)	(6.046)
of which related parties	(7.169)	(3.576)
Acquisition of treasury shares	(597)	(5.470)
Cash Flow from Financing Activities ( C)	10.616	9.778
Net Cash Flow of the Year (A)+(B)+(C)	46.980	(41.974)

Sector Data – Caprolactam price evolution

www.aquafil.com www.econyl.com www.dryarn.com

Giulia Rossi – IR investor.relations@aquafil.com