Aquafil

Investor Presentation • Apr 18, 2023

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX]

Mid & Small in London London, 19° April 2023

Aquafil is Market Leader in Nylon

% on FY22 REVENUES

And Market Leader Worldwide

% on FY22 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 Group

USA

Cartersville (Georgia) Aquafil USA 1

Phoenix (Arizona) Aquafil Carpet Recycling ACR#1 Aquafil Carpet Collection ACC

Anaheim (California) Aquafil Carpet Collection

Chula Vista (California) Aquafil Carpet Collection

Miramar (California) Aquafil Carpet Collection

Rutherford College (North Carolina) Aquafil O'Mara

UK

Kilbirnie Aquafil UK

SLOVENIA

Ljubljana AquafilSLO

Senožeče AquafilSLO Senožeče

Celje AquafilSLO Celje - Teharje

Ajdovščina AquafilSLO Ajdovščina

CROATIA

Oroslavje Aquafil CRO

THAILAND

Rayong Aquafil Asia Pacific

JAPAN

Tokyo Aquafil Japan

CHINA

Jiaxing Aquafil Jiaxing

CHILE

Santiago AquafilChile

ITALY

Arco (TN) Aquafil (Headquarter)

Cares (TN) Rovereto (TN) Tessilquattro

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 2025 Enviromental Targets

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

35,000 Tons Of Post consumer Waste Collected Annually

Water Consumption Reduced By 30% Compared To 2018

WELL-BEING OF PEOPLE

commitment and passion, are the foundation of the

People who, with

Group.

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

SHARED RESPONSIBILITY ALONG THE SUPPLY CHAIN

SUPPORT LOCAL COMMUNITIES

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

Our Top Achievements

ESG goals

• 64% reduction in Scope 1 + Scope 2 emissions in 5 years • 100% of electricity coming from renewable resources • 25% reduction in water consumption in 5 years • 90% of waste recovered (recycling and energy recovery) • Cradle to Cradle Material Health Gold & Silver certification for our ECONYL® products

• 100% increase in the number of female executives in 2 years • 92% increase in hours of training delivered vs 2020 • 2x welfare budget vs 2020

• Approval of a new remuneration policy • Approval of a new engagement policy • Acquisition of 3 more ISO 50001 (Energy management) and 4 more SA8000 (Social Responsibility) certifications in our Slovenian facilities during 2021.

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

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

association.

Aquafil contributes to 12 SDGs

4 Quality Education	10 Reduced Inequalities
5 Gender Equaty	11 Sustainable Cities & Communuties
6 Clean Water and Sanitation 7 Affordable & Clean Energy	12 Responsible Consumption & Production
8 Decent Work & Economic Growth	13 Climate Action
	14 Life Below Water
9 Industry, Innovation & Infrastructure	15 Life on Land

Financial Results

FY22 – Key Message

FY22 General Results

Year 2022 better profitability of ever

• Revenues +20,1% vs FY21
• EBITDA +28% vs FY21

ECONYL® Branded Products

• Revenues up by 52,0% vs FY21
• 43,5% of revenues generated by fibers

SUSTAINABILITY PLAN UPDATED INTRODUCTION OF NEW INDICATORS

CONTINUATION OF PROCESS TO ACQUIRE MAJORITY INTEREST IN THE INDIAN COMPANY GUJARAT POLYFILMS PRIVATE LIMITED

FY22 – Main Result

Revenues

Breakdown by Product Line

Revenues

ECONYL® regenerated nylon

Strong growth +52% vs FY21 due to price increase and higher quantities

P&L – KPI

€/mil		FY			4Q
	2022	2021	∆	2022	2021	∆
REVENUES	684,1	569,7	114,4	154,2	150,4	3,8
EBITDA	92,3	72,1	20,2	19,1	12,5	6,6
% on net sales	13,5%	12,7%		12,4%	8,3%
EBIT	37,6	21,5	16,1	5,2	(0,9)	6,0
% on net sales	5,5%	3,8%		3,3%	-0,6%
EBT	36,9	14,6	22,3	3,9	(3,4)	7,2
% on net sales	5,4%	2,6%		2,5%	-2,2%
NET RESULT	29,2	10,7	18,5	3,0	(3,6)	6,6
% on net sales	4,3%	1,9%		2,0%	-2,4%

NFP – NFP on EBITDA

• NFP on 31st December 2022 equal to (247,9) €/mil, higher of ca 68,6 €/mil compared to 31st December 2021
• Ratio NPF/EBITDA LTM at 2,69x

NFP Increase of NWC mainly driven by inventory

NWC growth driven by increase of inventory value due to:

• higher unitary cost of raw material
• increase of quantities

Outlook

In 2022, the Aquafil Group proved its ability to achieve excellent results even in difficult economic contexts.

The Aquafil Group's markets of reference will remain subject to considerable volatility in 2023 due to the constant, ongoing evolution of the macroeconomic and geopolitical scenario.

In order to face the opportunities and challenges of 2023, the Aquafil Group will continue to pursue the strategic decisions on which it has based its operations in recent years, i.e.:

• a) its geographical business diversification, which has been, and will increasingly be, a fundamental factor in pursuing growth and efficiencybuilding policies;
• b) a constant focus on social, environmental and governance sustainability, which will continue to drive the Company' strategic decisions with a view to increasing value creation;
• c) the expansion of the portfolio of production and sales activities so as to ensure the Group's constant growth and improved customer offerings;
• d) ongoing R&D activity designed to optimize production processes and maintain a technological advantage over competitors.

Chairman and CEO 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) Lead Independent Director;
• (3) Member and President of Audit and Risk Committee;
• (4) Member of Audit and Risk Committee;
• (5) Member and President of Appointment and Remuneration Committee:
• (6) Member of Appointment and Remuneration Committee;

Diversity: 44,4% women

Independent Directors: 44,4%

Giulio Bonazzi

Attilio Annoni Executive Director

Franco Rossi Director

Silvana Bonazzi

Director

Francesco Profumo Director (1) (4) (5)

Simona Heidempergher Director (1) (2) (3)

Ilaria Maria Dalla Riva Director (1) (4) (6)

Margherita Zambon Director (1) (6)

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

€/000 Revenue of which related parties Other Revenue Total and Other Revenue Revenue Raw Material Services of which related parties	2022 684.074 435 13.031 697.105 (317.815) (168.472) (465)	non-current 1.160 218 1.378 (480) (1.581)	2021 569.701 52 4.612 574.313 (283.622) (112.567)	non-current 784 751 1.535 (150)	Quarter 2022 154.169 396 4.539 158.708 (72.378)	non-current 311 - 92 403	Quarter 2021 150.391 12 87 150.478	non-current 197 - 79 276
						(5)	(75.066)	41
				(1.820)	(38.567)	(487)	(34.463)	(741)
			(414)		(123)	-	(111)	-
Personel	(126.875)	(1.565)	(114.228)	(1.700)	(30.791)	(408)	(30.815)	(287)
Other Operating Costs	(4.038)	(653)	(3.420)	(354)	(591)	(362)	(932)	(168)
of which related parties	(70)		(70)		(18)	-	(18)	-
Depreciation and Amorti zation	(47.851)		(44.964)		(11.897)	-	(11.583)	-
Provisions&Write-downs	(222)		(254)		(388)	-	(110)	-
(write-downs)/recovery of inancial assets (receivables)	42		125		44	-	47	-
Capitalization of Internal Construction Costs	5.687		6.099		1.020	-	1.593	-
EBIT	37.561	(2.901)	21.482	(2.489)	5.160	(859)	(852)	(879)
Income (loss) from Investments	23		0		93	-	-	-
of which related parties	183		-		93	-	-	-
Other Financial Income	4.869		915		289	-	222	-
Interest Expenses	(8.368)		(7.550)		(2.368)	-	(1.892)	-
of which related parties	(140)		(159)		(47)	-	(35)	-
FX Gains and Losses	2.783		(243)		711	-	(841)	-
Profit Before Taxes	36.868	(2.901)	14.604	(2.489)	3.885	(859)	(3.363)	(879)
Income Taxes	(7.717)		(3.934)		(871)	-	(224)	-
Net Profit (Including Portion Attr. to Minority )	29.151	(2.901)	10.670	(2.489)	3.014	(859)	(3.588)	(879)
Net Profit Attributable to Minority Interest	0		0		-	-	-	-
Net Profit Attributable to the Group	29.151	(2.901)	10.670	(2.489)	3.014	(859)	(3.588)	(879)

Appendix

Consolidated Income Statements – Revenues FY22

FY22			BCF (fiber for carpet)				NTF (fiber for fabric)					Polymers						Total
€/mil	2022	2021	Δ	Δ %	2022	2021	Δ	Δ %	2022	2021	Δ	Δ %	2022	2021	Δ	Δ %	% 22	% 21
EMEA	217,9	186,3	34,5	18,5 %	103,3	90,2	17,0	18,8 %	51,8	68,8	(13,3)	(19,4)%	372,9	345,4	38,1	11,0 %	54,5 %	60,6 %
North America	166,1	91,6	61,4	67,0 %	31,9	28,9	3,1	10,8 %	4,0	7,7	(2,4)	(31,0)%	202,1	128,3	62,1	48,4 %	29,5 %	22,5 %
Asia e Oceania	100,3	87,4	10,6	12,1 %	4,1	5,1	(1,2)	(23,2)%	1,4	0,8	0,3	0,0 %	105,8	93,3	9,7	10,4 %	15,5 %	16,4 %
RoW	0,8	0,2	0,2	86,8 %	2,5	2,2	0,5	22,5 %	0,0	0,4	(0,0)	0,0 %	3,3	2,8	0,7	24,3 %	0,5 %	0,5 %
Total	485,0	365,5	106,6	29,2 %	141,8	126,4	19,4	15,3 %	57,2	77,8	(15,4)	(19,8)%	684,1	569,7	110,6	19,4 %	100,0 %	100,0 %
% ToT	70,9%	64,2%			20,7%	22,2%			8,4%	13,6%			100,0%	100,0%

Appendix

Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	December 2022	December 2021	Foruth Quarter 2022	Fourth Quarter 2021
Net Profit (Including Portion Attr. to Minority )	29.151	10.670	3.014	(3.588)
Income Taxes	7.717	3.934	871	224
Investment income and charges	(23)		(93)
Amortisation & Depreciation	47.851	44.964	11.897	11.583
Write-downs & Write-backs of intangible and tangible assets	180	129	344	63
Financial items (*)	4.484	9.890	2.165	3.333
No recurring items (**)	2.901	2.489	859	879
EBITUDA	92.261	72.075	19.056	12.494
Revenue	684.074	569.701	154.169	150.391
EBITDA Margin	13,5%	12,7%	12,4%	8,3%
RECONCILIATION FROM EBITDA TO	December	December	Foruth	Fourth
EBIT ADJUSTED €/000	2022	2021	Quarter 2022	Quarter 2021
EBITDA	92.261	72.075	19.056	12.494
Amortisation & Depreciation	47.851	44.964	11.897	11.583
Write-downs & Write-backs of intangible and tangible assets	180	129	344	63
EBIT Adjusted	44.229	26.982	6.815	848
	A LAFT

(*) The financial items include: (i) financial income of Euro 4.9 million (ii) financial charges and other bank charges of Euro (8.4) million, (iii) cash discounts of Euro (3.8) million, and (iv) exchange gains of Euro 2.8 million.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.4) million, (ii) non-recurring charges and income for the development of the ECONYL® business for Euro (0,9), (iii) restructuring costs for Euro (1.1), (iv) tax litigation for Euro (0,1), (iv) other non-recurring costs of Euro (0.5) million, (vi) non-recurring revenues for euro 0.1 million.

Appendix Consolidated Balance Sheet (1)

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2022	2021
Intangible Assets	21.596	23.551
Goodwill	15.647	14.735
Tangible Assets	247.469	240.489
Financial Assets	831	710
of uhich related parties	318	318
Investments & Equity metod	1.018	1.018
Other Assets	426	626
Deferred Tax Assets	11.519	12.269
Total Non-Current Assets	298.506	293.398
Inventones	260.808	177.243
Trade Receivable	28.553	31.233
of uhich related parties	376	71
Financial Current Assets	9.964	860
Current Tax Receivables	580	423
Other Current Assets	15.862	12.853
of uhich related parties	247	3.152
Cash and Cash Equivalents	110.682	152.656
Asset held for sales	0	0
Total Current Assets	426.449	375.268
Total Current Assets	724.955	668.666

Appendix Consolidated Balance Sheet (2)

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2022	2021
Share Capital	49.722	49.722
Reserves	96.528	91.708
Group Net Profit for the year	29.151	10.670
Group Shareholders Equity	175.401	152.101
Net Equity attributable to minonty interest	1
Net Profit for the year attributable to minonty interest	0	0
Total Sharholders Equity	175.402	152.102
Employee Benefits	5.192	5.910
Non-Current Financial Liabilities	285.385	263.421
of ubich related parties	5.262	6.359
Provisions for Risks and Charges	1.975	1.929
Deferred Tax Liabilities	9.237	11.158
Other Payables	8.985	10.813
Total Non-Current Liabilities	310.774	293.230
Current Financial Liabilities	83.146	69.438
of ubich related parties	2.957	2.240
Current Tax Payables	3.630	1.721
Trade Payables	126.840	126.566
of uhich related parties	270	352
Other Liabilities	25.163	25.608
of uhich related parties	230	230
Total Current Liabilities	238.779	223.334
Total Equity and Liabilities	724.955	668.666

NET FINANCIAL DEBT	At December 31,	At December 31,
€/000	2022	2021
A. Liquidity	110.682	152.656
B. Cash and cash equivalents
C. Other current financial assets	9.964	860
D. Liquidity (A + B + C)	120.646	153.516
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	- 1.333	- 203
F. Current portion of non-current financial debt	- 81.814	- 69.236
G. Current financial debt (E + F)	- 83.146	- 69.438
H. Net current financial debt (G - D)	37.500	84.078
I. Non-current financial debt (excluding current portion and debt instruments)	- 215.084	- 180.185
J. Debt instruments	- 70.301	- 83.210
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	- 285.385	- 263.396
M. Total financial debt (H + L)	- 247.885	- 179.318

CASH FLUW STATEMENT	At December 31,	At December 31,
€/000	2022	2021
Operation Activities
Net Profit (Induding Portion Attr. to Minority )	29.151	10.670
of which related parties	-57	-591
Income Taxes	7.717	3.934
Income (loss) from Investments	-23	0
of which related parties	-183	0
Financial income	-4.869	-914
Financial charges	8.369	7.550
of which related parties	-140	-159
FX (Gains) and Losses	-2.783	243
(Gain)/Loss on non - current asset Disposals	-183	-210
Provisions & Write-downs	222	254
(write-downs)/recovery of inancial assets (receivables)	-42	-126
Amortisation, deprecation & write-downs	47.851	44.975
Cash Flow from Operating Activities Before Changes in NWC	85.410	66.376
Change in Inventories	-83.469	-26.323
Change in Trade and Other Payables	245	57.398
of which related parties	-82	-51
Change in Trade and Other Receivables	2.722	-9.092
of which related parties	-305	-5
Change in Other Assets / Liabilities	-4.169	8.149
of which related parties	2.905	35
Net Interest Expenses	-8.005	-6.636
Income Taxes paid	-3.840	-237
Change in Provisions for Risks and Charges	-2.012	-587
Cash Flow from Operating Activities (A)	-13.118	89.048

Appendix

Consolidated Cash Flow Statement (2)

	At December 31,	At December 31,
€/000	2022	2021
Investing activities
Investment in Tangible Assets	-34.864	-34.632
Disposal of Tangible Assets	384	353
Investment in Intangible Assets	-4.163	-4.977
Disposal of Intangible Assets	132	28
Effect Bluloop e Aquafil Cile	-146	0
of which Asset	-37	0
of which Gooduill	0	0
of which cash	0	0
of which other assets and liabilities	-109	0
Investment of Financial Assets	-160	-1.018
Dividends	183	0
of which related parties	183	0
Cash Flow used in Investing Activities (B)	-38.634	-40.246
Financing Activities
Increase in no current Loan and borrowing	94.000	30.000
Decrease in no current Loan and borrowing	-53.244	-123.457
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	-9.802	-2.295
of which related parties	-380	-168
Net variation non-monetary increase IFRS16	-9.660	-6.803
of which related parties	-1.828	-3.095
Dividends Distribution	-6.046	0
of which related parties	-3.576	0
Acquisition of treasury shares	-5.470	-2.545
Cash Flow from Financing Activities ( C)	9.778	-105.100
Net Cash Flow of the Year (A)+(B)+(C)	(41.974)	(56.298)

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