Aquafil

Investor Presentation • Jun 20, 2023

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] Mid & Small Virtual 2023 by Virgilio

June 26-30, 2023

Aquafil is Market Leader in Nylon

% on 1Q 2023 REVENUES

And Market Leader Worldwide

% on 1Q 2023 REVENUES

From Family Business To Global Sustainability Champion

20 Plants, 9 Countries on 3 Continents

Ca. 2,800 Employees

€ 684,1 Million of Revenues FY22

€ 92,3 Million EBITDA FY22

43,5% 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

Developed of the Group current business

- Source: Ellen MacArthur Foundation

Our path to circularity began in 1990, when the Group started recovering "lactamic waters" produced during the polymerisation process. Since then, we have invested time and money to "close the loop" through cutting-edge technologies. The biggest turning point was the adoption of a "Life Cycle" approach. This led to the creation of our ECONYL® Regeneration System.

Aquafil change drivers are

• Increasing volatility related to crucial raw materials both in term of availability and prices
• Production process wastes management
• Growing attention versus an "environmental" frame in the value chain and among stakeholders
• Clients sharing the same vision
• Many different regulators increasing focus to environmental laws all across Group presence countries
• First steps versus Extended Production Responsibility ("EPR")
• Civil society growing sensitiveness

Eco-Design is next crucial step, from the "raw material–product–waste" linear model to the "closing the loop" paradigm. Products build with raw materials which will become raw materials by themselves

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.

Around 43,5% of fiber turnover.

Glocal. A Global Company with local productions.

ECONYL® Regeneration System

• 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.

• Global warming potential reduced up to 90% if compared with traditional oil-based raw material.

ECONYL ® : Our Source Of (Sustainable) Competitive Advantage

WASTE IN

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

NO WASTE OUT

Our Main ESG Targets

60% Of Revenues Generated By Fibers From ECONYL® Branded Products

35,000 Tons Of Post consumer Waste Collected Annually

Create career development paths for talented individuals

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

Approve a new remuneration policy including ESG parameters

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 Achievements

ESG goals

• 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

• Certification SA8000 (Social Responsibility) – Aquafil UK3
• Certification ISO 50001 (Energy) – Aquafil Arco
• Certifications ISO 45001 (Health & Safety) and ISO 50001 (Energy) certifications – Aquafil China

After joining the Ellen McArthur Foundation in 2020, our Group joined the Plastics Recyclers Europe association.

Aquafil is a top Italian Circular Economy excellence according to Symbola and Enel's report, "100 Italian Circular Economy Stories".

Financial Results

1Q23 – Key Message

1Q23 General Results

• Revenues 166,8 €/mil (-2,5% vs 1Q 22)
• EBITDA 21,6 €/mil (-13,1% vs 1Q 22)

ECONYL® Branded Products ¹

• Revenues up by 11,2% vs 1Q 22
• 46,9% of revenues generated by fibers

CONTINUED GROWTH FOR CARPET FIBRES IN THE UNITED STATES

GLOBAL MARKET CHARACTERIZED BY VOLATILITY WITH LIMITED VISIBILITY

1Q 23 – Main Result

Revenues

Breakdown by Product Line

Revenues

Breakdown by Area

Revenues

ECONYL® regenerated nylon

+11,2% vs 1Q 223

P&L – KPI

€/mil	First Quarter
	2023	2022
REVENUES	166,8	171,2	(4, 3)
EBITDA	21,6	24,8	(3, 2)
% on net sales	12,9%	14,5%
EBIT	8,0	12,5	(4, 5)
% on net sales	4,8%	7,3%
EBT	4,6	11,9	(7, 3)
% on net sales	2,8%	7,0%
NET RESULT	3,3	9,1	(5, 8)

NFP

NFP on EBITDA

• NFP on 31st March 2023 equal to (246,8) €/mil, better of 1,1 €/mil compared to 31st December 2022;
• Ratio NPF/EBITDA LTM at 2,77x

Chair (1) (2) 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 and Risk Committee;
• (3) Member of Audit and Risk 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)

Silvana Bonazzi Director

Giulio Bonazzi

CEO

Francesco Bonazzi Director

Patrizia Riva Director (1) (3) (5)

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

This was calculated as per Consob Communication of July 28, 2006 and the ESMA/2013/319 Recommendations:

• A. Cash
• B. Other liquid assets
• C. Other current financial assets
• D. Liquidity (A+B+C)
• E. Current financial receivables
• F. Current bank payables
• G. Current portion of non-current debt
• H. Other current financial payables
• I. Current financial debt (F+G+H)
• J. Net current financial debt (I-D-E)
• K. Non-current bank payables
• L. Bonds issued
• M. Other non-current payables
• N. Non-current financial debt (K+L+M)
• O. Net financial debt (J+N)

Appendix

Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	First Quarter of wich non-		First Quarter of wich non-
$\epsilon/000$	2023	current	2022	current
Revenue	166.820		171.160	296
of which related parties	76		13
Other Revenue	2.717	2	1.256	91
Total Revenue and Other Revenue	169.537	2	172.416	387
Raw Material	(82.183)		(78.567)	(91)
Services	(36.242)	(803)	(38.860)	(354)
of which related parties	(124)		(526)
Personel	(32.034)	(318)	(31.387)	(347)
Other Operating Costs	(864)	(3)	(1.234)	(55)
of which related parties	(17)		(17)
Depreciation and Amorti zation	(11.828)		(10.919)
Provisions&Write-downs	87		(17)
(write-downs)/recovery of inancial assets (receivables)	63		25
Capitalization of Internal Construction Costs	1.450		1.004
EBIT	7.986	(1.123)	12.463	(460)
Other Financial Income	114		1.694
Interest Expenses	(3.280)		(1.872)
of which related parties	(45)		(31)
FX Gains and Losses	(176)		(383)
Profit Before Taxes	4.644	(1.123)	11.902	(460)
Income Taxes	(1.352)		(2.782)
Net Profit (Including Portion Attr. to Minority)	3.291	(1.123)	9.120	(460)
Net Profit Attributable to Minority Interest	$\Omega$		0
Net Profit Attributable to the Group	3.291		9.120

Appendix

Consolidated Income Statements – Revenues 1Q 2023

1Q 2023			BCF (fiber for carpet)			NTF (fiber for fabric)				Polymers					Total
€/mil	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	% 23	% 22
EMEA	54,3	59,4	34,5	58,0 %	26,3	28,4	17,0	59,6 %	10,9	14,5	(13,3)	(92,2)%	91,5	102,3	38,1	37,2 %	54,9 %	59,7 %
North America	41,4	33,9	61,4	181,1 %	7,2	7,4	3,1	42,4 %	1,4	0,2	(2,4)	(993,1)%	50,0	41,5	62,1	149,7 %	30,0 %	24,2 %
Asia e Oceania	23,5	25,2	10,6	41,9 %	1,0	1,0	(1,2)	(122,1)%	0,2	0,4	0,3	0,0 %	24,7	26,6	9,7	36,5 %	14,8 %	15,6 %
RoW	0,2	0,2	0,2	109,1 %	0,3	0,6	0,5	80,5 %	0,0	0,0	(0,0)	0,0 %	0,6	0,8	0,7	86,8 %	0,3 %	0,5 %
Total	119,4	118,7	106,6	89,8 %	34,8	37,4	19,4	51,9 %	12,6	15,1	(15,4)	(101,8)%	166,8	171,2	110,6	64,6 %	100,0 %	100,0 %
% ToT	71,6%	69,3%			20,9%	21,8%			7,5%	8,8%			100,0%	100,0%

Appendix Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	First Quarter	First Quarter
€/000	2023	2022
Net Profit (Including Portion Attr. to Minority)	3.291	9.120
Income Taxes	1.352	2.782
Amortisation & Depreciation	11.828	10.919
Write-downs & Write-backs of intangible and tangible assets	(150)	(9)
Financial items (*)	4.127	1.542
No recurring items $(**)$	1.123	460
EBITDA	21.572	24.814
Revenue	166.820	171.160
EBITDA Margin	12,9%	14,5%

RECONCILIATION FROM EBITDA TO	First Quarter	First Quarter
EBIT ADJUSTED $\epsilon/000$	2023	2022
EBITDA	21.572	24.814
Amortisation & Depreciation	11.828	10.919
Write-downs & Write-backs of intangible and tangible assets	(150)	(9)
EBIT Adjusted	9.893	13.904
Revenue	166.820	171.160
EBIT Adjusted Margin	5.9%	$8,1\%$

(*) The financial items include: (i) financial income of Euro 0.1 million (ii) financial charges and other bank charges of Euro (3.2) million, (iii) cash discounts of Euro (0.8) million, and (iv) exchange loss of Euro (0.2) million.

(**) This includes at the end of March: (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.4) million, (ii) (0.7) million related to a no recurring event in the USA.

Appendix Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
$\epsilon/000$	2023	2022
Intangible Assets	20.852	21.596
Goodwill	15.346	15.647
Tangible Assets	243.959	247.469
Financial Assets	643	831
of which related parties	318	318
Investments & Equity metod	1.018	1.018
Other Assets	426	426
Deferred Tax Assets	9.855	11.519
Total Non-Current Assets	292.101	298.506
Inventories	242.684	260.808
Trade Receivable	35.846	28.553
of which related parties	398	376
Financial Current Assets	5.632	9.964
Current Tax Receivables	1.167	580
Other Current Assets	16.059	15.862
of which related parties	1.851	247
Cash and Cash Equivalents	122.817	110.682
Total Current Assets	424.206	426.449
Total Current Assets	716.306	724.955

Appendix

Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
$\epsilon$ /000	2023	2022
Share Capital	49.722	49.722
Reserves	121.113	96.528
Group Net Profit for the year	3.291	29.151
Group Shareholders Equity	174.127	175.401
Net Equity attributable to minority interest
Net Profit for the year attributable to minority interest	$\Omega$	$\Omega$
Total Sharholders Equity	174.128	175.402
Employee Benefits	4.975	5.192
Non-Current Financial Liabilities	286.705	285.385
of which related parties	4.837	5.262
Provisions for Risks and Charges	1.591	1.975
Deferred Tax Liabilities	9.064	9.237
Other Payables	7.899	8.985
Total Non-Current Liabilities	310.233	310.774
Current Financial Liabilities	88.575	83.146
of which related parties	2.817	2.957
Current Tax Payables	3.241	3.630
Trade Payables	113.372	126.840
of which related parties	281	270
Other Liabilities	26.757	25.163
of which related parties	230	230
Total Current Liabilities	231.945	238.779
Total Equity and Liabilities	716.306	724.955

NET FINANCIAL DEBT	At March 31,	At December 31,
$\epsilon/000$	2023	2022
A. Liquidity	122.817	110.682
B. Cash and cash equivalents
C. Other current financial assets	5.632	9.964
D. Liquidity $(A + B + C)$	128.450	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	(6.358)	(1.333)
F. Current portion of non-current financial debt	82.217)	81.814)
G. Current financial debt $(E + F)$	88.575)	83.146)
H. Net current financial debt $(G - D)$	39.875	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	216.417	(215.084)
J. Debt instruments	(70.288)	(70.301)
K. Trade payables and other non-current payables
L. Non-current financial debt $(I + J + K)$	286.705)	285.385)
M. Total financial debt $(H + L)$	246.831	247.885)

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
$\varepsilon/000$	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority)	3.291	9.120
of which related parties	(111)	(561)
Income Taxes	1.352	2.782
Financial income	(114)	(1.694)
Financial charges	3.280	1.872
of which related parties	45	31
FX (Gains) and Losses	176	383
(Gain)/Loss on non - current asset Disposals	(81)	(56)
Provisions&Write-downs	(87)	17
(write-downs)/recovery of inancial assets (receivables)	(63)	(25)
Amortisation, depreciation & write-downs	11.828	10.918
Cash Flow from Operating Activities Before Changes in NWC	19.582	23.316
Change in Inventories	18.127	(27.001)
Change in Trade and Other Payables	(13.469)	5.409
of which related parties	11	461
Change in Trade and Other Receivables	(7.230)	(6.889)
of which related parties	(22)	51
Change in Other Assets/Liabilities	(430)	(2.696)
of which related parties	(1.604)	2.040
Net Interest Expenses	(3.166)	(178)
Income Taxes paid	(2.335)	(78)
Change in Provisions for Risks and Charges	(668)	(242)
Cash Flow from Operating Activities (A)	10.411	(8.358)

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
$\epsilon/000$	2023	2022
Investing activities
Investment in Tangible Assets	(7.858)	(7.226)
Disposal of Tangible Assets	304	76
Investment in Intangible Assets	(771)	(550)
Disposal of Intangible Assets
Cash Flow used in Investing Activities (B)	(8.325)	(7.701)
Financing Activities
Increase in no current Loan and borrowing	15.000	20.000
Decrease in no current Loan and borrowing	(11.903)	(10.854)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 10	8.172	2.357
of which related parties	(565)	472
Net variation non-monetary increase IFRS16	(617)	(3.982)
of which related parties		(1.177)
Dividends Distribution	(6)
Acquisition of treasury shares	(597)	(1.558)
Cash Flow from Financing Activities (C)	10.049	5.964
Net Cash Flow of the Year $(A)+(B)+(C)$	12.135	(10.095)

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