Aquafil

Investor Presentation • Mar 16, 2023

Aquafil Group

FY 2022 Financial Results

16th March 2023

1.	KEY MESSAGES	4

3. OUTLOOK 16

4. APPENDIX 18

Index		Page
1. KEY MESSAGES		4
2. FINANCIAL RESULTS		6
3. OUTLOOK		16
4. APPENDIX		18

Index		Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

Key Messages

YEAR 2022 BEST PROFITABILITY EVER

REVENUES GREW BY 20.1%

EBITDA UP BY 28.0% RATIO TO REVENUES AT 13.5% ECONYL® BRANDED PRODUCTS

UP 52.0% RATIO TO REVENUES GENERATED BY FIBERS AT 43.5%

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

SUSTAINABILITY PLAN UPDATED

INTRODUCTION OF NEW INDICATORS

PAYMENT OF A DIVIDEND OF €0.24 PER SHARE PROPOSED TO THE SHAREHOLDERS' MEETING

1. KEY MESSAGES 4

2. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

Index		Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

FY2022 Main Results

Revenues – by Components

• Lower volumes of ca 11% compared to FY2021 and 21% compared to 4Q21
  • Volume: lower sales in EMEA
  • Price & sales mix: positive impact thanks to better mix and selling price adjustment.

Revenues – Quantity

EMEA: volumes ca -23% vs FY2021 and -36% vs 4Q21:

– BCF, NTF and Polymers: lower quantity due to slow market demand;

USA: volumes ca +18% vs FY2021 and +8% in 4Q21:

• BCF: higher quantity due to increase of BCF fiber for contract and competitor withdrawal
• NTF: lower quantity due to slow market demand;

Asia: volumes ca -2% vs FY2021 and the same of 4Q21

Revenues – Breakdown by Product Line and Area

Revenues – ECONYL®

• Strong growth +52% vs FY2021 due to price increase and higher quantities:

Revenues – ECONYL® – BCF the support and NTF the accelerator

• ECONYL® has represented an accelerator driver for the Group growth both by strengthening relationship with consolidated customers and the attracting new ones
  • ‒ BCF sector historically drove ECONYL® development due to cultural sensitiveness on environmental topics of Aquafil and important carpet producer customers;
    • o ECONYL® allowed to protect and even increase market share, especially on high-end products
  • ‒ Later on in NTF sector, both ECONYL® application developments and an increasing awareness to a "circularity vision" allowed Group to attract brand new and different customers (e.g. fashion and luxury brands)

Example of BCF product: a tiles Example of NTF product: a fashion backpack

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 – NPF/EBITDA

• 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 and
  • increase of quantities;

39

^{27 7}

• 1. KEY MESSAGES 4
• 1. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

Index		Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

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 efficiency-building 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.

• 1. KEY MESSAGES 4
• 1. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

	Index	Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

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.

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	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 - Sector Data – Caprolactam price evolution

Appendix - Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	December	of wich	December	of wich	Fourth	of wich	Fourth	of wich
€/000	2022	non-current	2021	non-current	Quarter 2022	non-current	Quarter 2021	non-current
Revenue	684.074	1.160	569.701	784	154.169	311	150.391	197
of which related parties	435		52		396	-	12	-
Other Revenue	13.031	218	4.612	751	4.539	92	87	79
Total Revenue and Other Revenue	697.105	1.378	574.313	1.535	158.708	403	150.478	276
Raw Material	(317.815)	(480)	(283.622)	(150)	(72.378)	(5)	(75.066)	41
Services	(168.472)	(1.581)	(112.567)	(1.820)	(38.567)	(487)	(34.463)	(741)
of which related parties	(465)		(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 FY

Appendix - Consolidated Income Statements – Revenues FY
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 – Revenues 4Q

4Q 22			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	46,0	48,9	(2,9)	(5,9)%	24,1	28,0	(3,9)	(13,9)%	9,6	13,3	(3,7)	(28,0)%	79,7	90,2	(10,5)	(11,7)%	51,7 %	60,0 %
North America	39,2	26,2	13,1	50,1 %	7,3	7,4	(0,1)	(1,1)%	1,3	2,6	(1,3)	(50,6)%	47,8	36,1	11,7	32,4 %	31,0 %	24,0 %
Asia e Oceania	24,3	22,0	2,3	10,5 %	1,1	0,9	0,2	20,5 %	0,6	0,3	0,3	98,6 %	25,9	23,2	2,8	12,0 %	16,8 %	15,4 %
RoW	0,2	(0,2)	0,4	0,0 %	0,5	0,7	(0,1)	0,0 %	0,0	0,4	(0,4)	0,0 %	0,7	0,9	(0,2)	(20,4)%	0,5 %	0,6 %
Total	109,7	96,8	12,9	13,3 %	33,1	37,0	(3,9)	(10,6)%	11,4	16,6	(5,2)	(31,1)%	154,2	150,4	3,8	2,5 %	100,0 %	100,0 %
% ToT	71,2%	64,4%			21,4%	24,6%			7,4%	11,0%			100,0%	100,0%

Appendix - Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	December	December	Foruth	Fourth
€/000	2022	2021	Quarter 2022	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
EBITDA	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 EBIT ADJUSTED €/000	December 2022	December 2021	Foruth Quarter 2022	Fourth 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
Revenue	684.074	569.701	154.169	150.391
EBIT Adjusted Margin	6,5%	4,7%	4,4%	0,6%

(*) 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 which 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
Inventories	260.808	177.243
Trade Receivable	28.553	31.233
of which related parties	376	71
Financial Current Assets	9.964	860
Current Tax Receivables	580	423
Other Current Assets	15.862	12.853
of which 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 minority interest	1	1
Net Profit for the year attributable to minority 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 which 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 which related parties	2.957	2.240
Current Tax Payables	3.630	1.721
Trade Payables	126.840	126.566
of which related parties	270	352
Other Liabilities	25.163	25.608
of which related parties	230	230
Total Current Liabilities	238.779	223.334
Total Equity and Liabilities	724.955	668.666

Appendix - Net Financial Position

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

Appendix - Consolidated Cash Flow Statement (1)

CASH FLOW STATEMENT	At December 31,	At December 31,
€/000	2022	2021
Operation Activities
Net Profit (Including 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, depreciation & 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	3 5
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)

CASH FLOW STATEMENT	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	2 8
Effect Bluloop e Aquafil Cile	-146	0
of which Asset	-37	0
of which Goodwill	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)