Aquafil

Investor Presentation • Nov 21, 2023

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] Mid and Small by Virgilio

Milan, November 22, 2023

Aquafil is Market Leader in Nylon

% on 9M 2023 REVENUES

And Market Leader Worldwide

% on 9M 2023 REVENUES

From Family Business To Global Sustainability Champion

19 Plants, 8 Countries on 3 Continents

Ca. 2,800 Employees

€ 442,2 Million of Revenues 9M23

€ 37 Million EBITDA 9M23

49,7% ECONYL® fiber turnover

Aquafil Brand Manifesto - Our Vision

At Aquafil, we design better to do better.

We are conscious innovators. We think as beginners and act as pioneers to provide unique products and services that leverage performance and reduce the impact on a global scale.

We are thoughtful listeners.

We step out of our comfort zone to set new standards through empathy and collaboration, inside and outside.

We are down-to-earth visionaries.

We envision the goal of a sustainable future to achieve it, driven by the responsibility to change the world one choice at a time.

To come full circle and create our story.

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.

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.

ECONYL® Regeneration System

• Global warming potential reduced up to 90% if compared with traditional oil-based raw material.
• ECONYL® nylon is 100% coming from waste. No fossil oil used!
• It has the same quality and performance as standard nylon. Infinitely regenerable!
• Unique proprietary technology.
• In the past years, its growth rate has been on average more than 2.5 higher than traditional fibres.

WASTE IN

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

NO WASTE OUT

Our Main ESG Targets

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

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)

D&I policy to assure gender equality in recruiting and career development

Draft a succession plan for our top management

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.

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.

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 Top ESG Achievements

• 16% reduction in Scope 1 + Scope 2 emissions vs 2021
• 100% of electricity coming from renewable resources
• 23% reduction in water consumption vs 2021
• 90% of waste recovered (through recycling and energy recovery)

• 1st plant-based nylon demo plant

• 18.5% increase in the number of female managers vs 2021

• 2.2x increase in hours of environmental training delivered vs 2021
• 2x welfare budget vs 2021
• Approval of Global Parental Leave Policy

• Drafting of Human Rights Policy

• Adhesion to UN Global Compact

• New remuneration policy for the Top Management
• Creation of the ESG Committee by the Board of Director

Financial Results

9M23 – Key Message

9M23 General Results

• Revenues 442,2 €/mil (-16,5% vs 9M 22)
• EBITDA 37 €/mil (-49,5% vs 9M 22)

ECONYL® Branded Products ¹

• 49,7% of revenues generated by fibers

TEMPORARY DECLINE IN MARGINS CONTINUED DUE TO THE HIGH UNIT VALUE OF THE INVENTORIES STOCKED IN 2022 COMPARED TO THE CURRENT MARKET VALUE OF RAW MATERIALS

RECOVERY OF THE MARKET OF FIBERS FOR CARPETS AND POLYMERS IN EMEA

DEBT CUTTING AND INDUSTRIAL EFFICIENCY ENHANCING MEASURES AS A STRATEGIC PRIORITY

9M23 – Main Result

		Revenues		EBITDA		Net profit			NFP
	2023	2022	Δ%	2023	2022	Δ%	2023	2022	Δ%	30.09.23	31.12.22	Δ%
9M	442,2	529,9	(16,6)%	37,0	73,2	(49,5)%	(17,1)	26,1	(165,5)%	(262,8)	(247,9)	6,0%
% on Revenues				8,4%	13,8%		(3,9)%	4,9%
3Q	131,1	178,9	(26,7)%	5,7	21,7	(73,7)%	(12,9)	8,5	(251,8)%
% on Revenues				4,3%	12,1%		(9,8)%	4,8%
	USA	SALES VOLUME1 (8,8)% compared to 9M22 (4,6)% compared to 3Q22 EMEA Market recovery for BCF and polymers product lines and Asia Pacific market resilience			EBITDA Lower to 3Q 2022 Due to high unit cost of the raw materials stocked in 2022 (approx. €20 million) and			NET PROFIT Lower to 3Q 2022 Strong decrease Due to EBITDA decrease and		on 31st	NFP Higher of 6% vs Dec. 22 NFP/EBITDA LTM x2,69 December 2022
		ECONYL® ca 49,7% of Fiber Revenues			decline in volumes sold			Increase of net financial costs		on 30th	x4,69 September 2023

Revenues

Breakdown by Product Line

Revenues

Revenues

ECONYL® regenerated nylon

P&L – KPI

		9M			3Q
	2023	2022	Δ%	2023	2022	Δ%
Revenues	442,2	529,9	(16,6)%	131,1	178,9	(26,7)%
EBITDA	37,0	73,2	(49,5)%	5,7	21,7	(73,7)%
% on net Sales	8,4 %	13,8%		4,3%	12,1%
EBIT	(4,4)	32,4	(113,6)%	(8,5)	7,8	(209,0)%
% on net Sales	-1,0%	6,1%		(6,5)%	4,4%
EBT	(14,9)	33,0	(145,2)%	(12,8)	8,8	(245,5)%
% on net Sales	(3,4)%	6,2%		(9,8)%	4,9%
NET RESULT	(17,1)	26,1	(165,5)%	(12,9)	8,5	(251,8)%
% on net Sales	(3,9)%	4,9%		(9,8)%	4,8%

NFP

NFP on EBITDA

• NFP on 30th September 2023 equal to (262,8) €/mil
• Ratio NFP/EBITDA LTM at x4,69

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

Silvana Bonazzi Director

Stefano Loro Director

Francesco Bonazzi Director

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

Patrizia Riva

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 Giulio Bonazzi family with the same economic right of ordinary share but with 3 voting right for any share;

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)

Appendix Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	At 30 September	of which	At 30	of which	Third Quarter	of which	Third Quarter	of which
€/000	2023	non-current	September 2022	non-current	2023	non-current	2022	non-current
Revenues	442.229		1 529.905	849	131.112		1 178.896	324
of which related parties	227		39		76	-	13	-
Other Revenues and income	7.550	625	8.492	126	2.603	622	6.079	12
Total Revenues and Other Revenues and income	449.779	626	538.397	975	133.715	623	184.975	336
Raw Material	(230.169)	(415)	(245.437)	(475)	(71.231)	(415)	(87.072)	(181)
Services	(95.987)	(1.263)	(129.905)	(1.094)	(28.123)	(245)	(47.948)	(356)
of which related parties	(388)	-	(342)	-	(124)	-	(112)	-
Personel costs	(94.220)	(2.345)	(96.084)	(1.157)	(31.201)	(1.830)	(31.186)	(346)
Other Operating Costs	(2.718)	(181)	(3.447)	(291)	(954)	(67)	(1.001)	(176)
of which related parties	(52)		(52)		(17)	-	(17)	-
Depreciation and Amorti zation	(35.982)		(35.954)		(11.695)	-	(12.198)	-
Provisions&Write-downs	104		166		(11)	-	(8)	-
(write-downs)/recovery of inancial assets (receivables)	113		(2)		51	-	(28)	-
Capitalization of Internal Construction Costs	4.687		4.667		951	-	2.320	-
EBIT	(4.393)	(3.578)	32.400	(2.042)	(8.499)	(1.933)	7.852	(721)
Investment income/charges	90		(70)		90	-	-	-
of which related parties	90		90		90	-	-	-
Financial income	621		4.580		282	-	1.593	-
Fianancial charges	(11.907)		(6.000)		(4.402)	-	(2.138)	-
of which related parties	(116)		(93)		(29)	-	(29)	-
FX Gains and Losses	698		2.072		(285)	-	1.544	-
Profit Before Taxes	(14.891)	(3.578)	32.983	(2.042)	(12.813)	(1.933)	8.852	(721)
Income Taxes	(2.177)		(6.846)		(119)	-	(389)	-
Net Profit (Including Portion Attr. to Minority )	(17.068)	(3.578)	26.137	(2.042)	(12.932)	(1.933)	8.463	(721)
Net Profit Attributable to Minority Interest	0		0		-	-	-	-
Net Profit Attributable to the Group	(17.068)		26.137		(12.932)	-	8.463	-

Appendix

Consolidated Income Statements – Revenues 9M 2023

9M				BCF (fiber for carpet)				NTF (fibre for fabrics)				Polymers						TOTAL
$\epsilon$ /mln	2023	2022	Δ	$\Delta\%$	2023	2022	Δ	$\Delta\%$	2023	2022	Δ	Δ%	2023	2022	Δ	$\Delta\%$	%23	%22
EMEA	140,6	171,9	(31,2)	$(18,2)\%$	57,8	79,2	(21,3)	$(26, 9)$ %	29,8	42,2	(12,3)	$(29,2)\%$	228,3	293,2	(64, 9)	$(22, 1)\%$	51,6%	55,3%
North America	115,3	126,9	(11,5)	$(9,1)$ %	23,0	24,6	(1,6)	$(6,6)$ %	4,0	2,8	1,2	43,8%	142,3	154,3	(12,0)	(7,8)%	32,2%	29,1%
Asia e Oceania	66,5	76,0	(9,5)	$(12,5)\%$	3,2	3,0	0,2	6,1%	0,5	0,8		$(0,3)$ $(40,9)\%$	70,2	79,8	(9,7)	$(12,1)\%$	15,9%	15,1%
RoW	0,6	0.6	0,0	4,8%	0,8	2,0		$(1,2)$ $(59,1)\%$	0,0	0.0	0,0	N.A.	1,4	2,6		$(1,2)$ $(44,6)\%$	0,3%	0,5%
TOTALE	323,1	375,3	(52,2)	$(13,9)\%$	84,8	108,8		$(24,0)$ $(22,0)\%$	34,3	45,8	(11,5)	$(25,0)\%$	442,2	529,9		$(87,7)$ $(16,5)\%$ 100,0% 100,0%
%	73,1%	70,8%			19,2%	20,5%			7,8%	8,6%			100,0%	100,0%

Appendix

Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	September	September	Third Quarter	Third Quarter
€/000	2023	2022	2023	2022
Net Profit (Including Portion Attr. to Minority )	(17.068)	26.137	(12.932)	8.463
Income Taxes	2.177	6.846	119	389
Investment income and charges	(90)	70	(90)	-
Amortisation & Depreciation	35.982	35.954	11.695	12.198
Write-downs & Write-backs of intangible and tangible assets	(217)	(164)	(39)	36
Financial items (*)	12.638	2.319	4.987	(116)
No recurring items (**)	3.578	2.042	1.933	721
EBITDA	37.001	73.205	5.673	21.691
Revenue	442.229	529.905	131.112	178.896
EBITDA Margin	8,4%	13,8%	4,3%	12,1%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	September 2023	September 2022	Third Quarter 2023	Third Quarter 2022
EBITDA	37.001	73.205	5.673	21.691
Amortisation & Depreciation	35.982	35.954	11.695	12.198
Write-downs & Write-backs of intangible and tangible assets	(217)	(164)	(39)	36
EBIT Adjusted	1.236	37.415	(5.983)	9.457
Revenue	442.229	529.905	131.112	178.896
EBIT Adjusted Margin	0,3%	7,1%	(4,6%)	5,3%

(*) The financial items include: (i) financial charges and other bank charges of Euro (11.9) million, (ii) cash discounts of Euro (2.0) million, (iii) financial income of Euro 0.6 million, and (iv) exchange gain of Euro 0.7 million.

(**) This includes at the end of September: (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.6) million, (ii) non-recurring charges related to legal advice for Euro (0.3) million, (iii) non-recurring costs relating to the mobility of personnel of two group companies for Euro (1.4) million, (iv) Non-recurring costs for industrial rationalization activities of BCF (Aquafil UK) in the amount of €(0.9) million, (v) other non-recurring charges for Euro (0.4) million.

Appendix Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2023	2022
Intangible Assets	20.253	21.596
Goodwill	15.753	15.647
Tangible Assets	242.958	247.469
Financial Assets	788	831
of which related parties	318	318
Investments & Equity metod	1.023	1.018
Other Assets	-	426
of which related parties	-
Deferred Tax Assets	12.193	11.519
Total Non-Current Assets	292.970	298.506
Inventories	196.448	260.808
Trade Receivable	27.844	28.553
of which related parties	240	376
Financial Current Assets	7.048	9.964
of which related parties	-
Current Tax Receivables	837	580
Other Current Assets	16.430	15.862
of which related parties	4.901	247
Cash and Cash Equivalents	121.696	110.682
Asset held for sales	-	-
Total Current Assets	370.302	426.449
Total Current Assets	663.271	724.955

Appendix Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2023	2022
Share Capital	49.722	49.722
Reserves	108.476	96.528
Group Net Profit for the year	(17.068)	29.151
Group Shareholders Equity	141.131	175.401
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	141.131	175.402
Employee Benefits	4.773	5.192
Non-Current Financial Liabilities	293.967	285.385
of which related parties	3.670	5.262
Provisions for Risks and Charges	1.187	1.975
Deferred Tax Liabilities	9.042	9.237
Other Payables	6.466	8.985
of which related parties	-
Total Non-Current Liabilities	315.434	310.774
Current Financial Liabilities	97.540	83.146
of which related parties	2.599	2.957
Current Tax Payables	1.380	3.630
Trade Payables	84.118	126.840
of which related parties	98	270
Other Liabilities	23.668	25.163
of which related parties	(0)	230
Total Current Liabilities	206.706	238.779
Total Equity and Liabilities	663.271	724.955

NET FINANCIAL DEBT	At September 30,	At December 31,
€/000	2023	2022
A. Liquidity	121.696	110.682
B. Cash and cash equivalents
C. Other current financial assets	7.048	9.964
D. Liquidity (A + B + C)	128.744	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 2.050)	( 1.333)
F. Current portion of non-current financial debt	( 95.490)	( 81.814)
G. Current financial debt (E + F)	( 97.540)	( 83.146)
H. Net current financial debt (G - D)	31.204	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	( 236.563)	( 215.084)
J. Debt instruments	( 57.404)	( 70.301)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 293.967)	( 285.385)
M. Total financial debt (H + L)	( 262.763)	( 247.885)

CASH FLOW STATEMENT

Appendix Consolidated

Cash Flow Statement (1/2)

€/000	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(17.068)	26.137
of which related parties	(239)	(358)
Income Taxes	2.177	6.846
Investment income and charges	(90)	70
of which related parties	(90)	(90)
Financial income	(621)	(4.580)
Financial charges	11.907	6.000
of which related parties	(116)	93
Exchange (gains)/losses	(698)	(2.072)
(Gain)/Loss on non - current asset Disposals	(216)	(91)
Provisions&Write-downs	(104)	(166)
(write-downs)/recovery of inancial assets (receivables)	(113)	2
Amortisation, depreciation & write-downs	35.982	35.954
Cash Flow from Operating Activities Before Changes in NWC	31.157	68.100
Change in Inventories	64.362	(84.323)
Change in Trade and Other Payables	(42.723)	21.206
of which related parties	(172)	(56)
Change in Trade and Other Receivables	823	(10.675)
of which related parties	136	24
Change in Other Assets/Liabilities	(5.092)	2.259
of which related parties	(4.884)	3.038
Net Interest Expenses	(10.440)	(1.419)
Income Taxes paid	(7.460)	(1.098)
Change in Provisions for Risks and Charges	(1.455)	(1.299)
Cash Flow from Operating Activities (A)	29.172	(7.249)

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At September 30,	At September 30,
€/000	2023	2022
Investing activities
Investment in Tangible Assets	(22.260)	(24.566)
Disposal of Tangible Assets	420	406
Investment in Intangible Assets	(3.839)	(3.213)
Disposal of Intangible Assets
Investment of Financial Assets	(155)
Dividends	9 0	9 0
Dusoisal of financial assets	0	(160)
Cash Flow used in Investing Activities (B)	(25.743)	(27.444)
Financing Activities
Increase in no current Loan and borrowing	75.000	79.000
Decrease in no current Loan and borrowing	(51.564)	(42.502)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	1.802	(441)
of which related parties	(1.950)	1.130
Net variation non-monetary increase IFRS16	(5.061)	(6.964)
Dividends Distribution	(11.992)	(6.046)
Acquisition of treasury shares	(598)	(4.376)
Cash Flow from Financing Activities ( C)	7.586	18.671
Net Cash Flow of the Year (A)+(B)+(C)	11.014	(16.022)

Appendix

Sector Data – Caprolactam price evolution

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

Karim Tonelli - CPO & IR karim.tonelli@aquafil.com Mob: +39 3486022950