Aquafil

Investor Presentation • Mar 14, 2024

Aquafil Group [ECNL:IM] - [ECNLF: OTCQX] FY 2023 Financial Results March 14, 2024

1. Key messages

COMPLETED THE START-UP ACTIVITIES OF ENGINEERING PLASTICS IN EMEA

ECONYL® BRANDED AND REGERATED PRODUCTS ACCOUNTED FOR 49,6% OF REVENUES GENERATED FROM FIBERS

SLIGHT DECLINE IN VOLUMES COMPARED TO 2022 MAINLY RELATED TO FIBERS FOR GARMENTS

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

2. Financial results

1ARI ۳ ⊢
CERTIFIED

	Revenues			EBITDA				Net profit		NFP
	2023	2022	Δ%	2023	2022	Δ%	2023	2022	Δ%	31.12.23	31.12.22	Δ%
FY	571,8	684,1	(16,4)%	47,5	92,3	(48,5)%	(25,8)	29,2	(188,4)%	248,5	247,9	0,2%
% on Revenues				8,3%	13,5%		(4,5)%	4,3%
4Q	129,6	154,2	(16,0)%	10,5	19,1	(45,0)%	(8,8)	3,0	(392,7)%
% on Revenues				8,1%	12,4%		(6,8)%	1,9%
	SALES VOLUME1 (4,7)% compared to FY22 10,4% compared to 4Q22 EMEA Market recovery for BCF and			EBITDA Lower to 4Q 2022 Due to			NET PROFIT Lower to 4Q 2022 Strong decrease			NFP In line vs Dec. 22
	polymers product lines in 4Q USA Slightly below previous year Asia Pacific market resilience ECONYL® ca 49,6% of Fiber Revenues		high unit cost of the raw materials stocked in 2022 (approx. €24 mln.) and decline in volumes sold			Due to EBITDA decrease and Increase of net financial costs			NFP/EBITDA LTM x2,69 on 31st December 2022 X5,23 on 31st December 2023

(1) Based on "First Grade Product" revenues

2. Financial results - Revenues by components

2. Financial results - Volumes

EMEA: volumes ca (5,8)% vs FY22 and 22,9% vs 4Q22:

• BCF, NTF and Polymers: lower quantity sold due to slow market demand on FY
• Market recovery for BCF and polymers product lines in 4Q 2023
• Engineering plastics: ramp up of the project

USA: volumes ca (4,2)% vs FY22 and (3,3)% vs FY22:

– BCF and NTF: lower quantity sold

Asia: volumes ca (1,8)% vs FY22 and (0,4)% vs FY22:

– BCF: FY23 in line vs FY22

2. Financial results – Revenues breakdown by Product Line and Area

FY - % Revenues by Geographical Area

4Q - % Revenues by Geographical Area

4Q - % Revenues by Product Line

(1) Rest of World not included

2. Financial results – Revenues: ECONYL® products

• ECONYL® products increased from 43,5% to 49,6% vs FY22

2. Financial results - P&L: KPI

ARK Ê ⊢ ID
CERTIFIED

		FY			4Q
	2023	2022	Δ%	2023	2022	Δ%
Revenues	571,8	684,1	(16,4)%	129,6	154,2	(16,0)%
EBITDA	47,5	92,3	(48,5)%	10,5	19,1	(45,0)%
% on net Sales	8,3 %	13,5%		8,1%	12,4%
EBIT	(8,9)	37,6	(123,6)%	(4,5)	5,2	(185,9)%
% on net Sales	(1,5)%	5,5%		(3,4)%	3,4%
EBT	(26,0)	36,9	(170,4)%	(11,1)	3,9	(384,6)%
% on net Sales	(4,5)%	5,4%		(8,6)%	2,5%
NET RESULT	(25,8)	29,2	(188,4)%	(8,8)	3,0	(392,7)%
% on net Sales	(4,5)%	4,3%		(6,8)%	1,9%

2. Financial results - NFP and NPF/EBITDA

• NFP on 31st December 2023 equal to 248,5 €/mil versus 247,9 €/mil on 31st December 2022

• Ratio NPF/EBITDA LTM at x5,23

3. Outlook

As stated during the previous events, in 2023 Europe witnessed a sharp, important decline in the prices of raw materials. This entailed a significant mismatch between the unit values of inventories stocked in 2022 and the market price, with a temporary, yet significant impact on the Group's margins. The results reported were negatively impacted by these trends, but they are in line with our previous announcements to the market.

Despite the uncertainty associated with the raw materials trends, the Company expects an increase in volumes across all three product lines for the 2024-2025 period. It also expects a recovery in the market of fibers for garments in EMEA and the United States following the sharp reduction witnessed in 2023, as well as new prospects for polymers thanks to the contribution of Engineering Plastics and a constantly growing market of fibers for carpets in Asia Pacific.

Our target to reduce net financial position by 2025 of approximately €50-60 million remains confirmed. This result will be obtained through a higher EBITDA generated and the efficiency measures implemented during the period.

The Company continues to monitor the achievement of the business targets, also in light of the ongoing macro-economic instability due to the current global geopolitical uncertainty.

The first months of the year confirm the guidance presented last November.

4. Appendix

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)

Appendix - Consolidated Income Statement

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)

FY - % Revenues by Product Line

Appendix - Consolidated Income Statement – Revenues FY

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

4Q - % Revenues by Product Line

Appendix - Consolidated Income Statement – Revenues 4Q

Q4				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	44,0	46,0	(2,0)	(4,4)%	13,5	24,1	(10,6)	(44,0)%	9,4	9,6	(0,2)	(2,4)%	66,8	79,7	(12,9)	(16,1)%	51,6%	51,7%
North America	32,8	39,2	(6,4)	(16,4)%	6,7	7,3	(0,7)	(8,9)%	0,9	1,3	(0,4)	(30,2)%	40,4	47,8	(7,5)	(15,6)%	31,1%	31,0%
Asia e Oceania	20,5	24,3	(3,8)	(15,5)%	1,1	1,1	(0,0)	(3,6)%	0,3	0,6	(0,3)	(52,7)%	21,8	25,9	(4,1)	(15,8)%	16,9%	16,8%
RoW	0,2	0,2	0,0	12,6 %	0,3	0,5	(0,2)	(35,1)%	0,0	0,0	0,0	N.A.	0,5	0,7	(0,2)	(22,7)%	0,4%	0,5%
TOTAL	97,5	109,7	(12,2)	(11,1)%	21,6	33,1	(11,5)	(34,7)%	10,5	11,4	(0,9)	(7,9)%	129,6	154,2	(24,6)	(16,0)%	100,0%	100,0%
% Tot	75,2%	71,2%			16,6%	21,4%			8,1%	7,4%			100,0%	100,0%

4Q - % Revenues by Geographical Area

Appendix - EBITDA and Adjusted Operating Results

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	December 2023	December 2022	Fourth Quarter 2023	Fourth Quarter 2022
Net Profit (Including Portion Attr. to Minority )	(25.849)	29.151	(8.781)	3.014
Income Taxes	(143)	7.717	(2.320)	871
Amortisation & Depreciation	49.635	47.851	13.653	11.897
Write-downs & Write-backs of intangible and tangible assets	(1.002)	180	(785)	344
Financial items (*)	20.002	4.484	7.364	2.165
No recurring items (**)	4.946	2.901	1.368	859
EBITDA	47.500	92.261	10.499	19.056
Revenue	571.806	684.074	129.577	154.169
EBITDA Margin	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) for Euro (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

Appendix - Net Financial Position

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 (2/2)

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)

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