Aquafil Group

9M and 3Q 2022 Financial Results

8 th November 2022

	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

9M 2022 RESULTS SHARPLY INCREASING COMPARED TO 9M 2021

REVENUES +26,4% VS 9M21

EBITDA +23% VS 9M21

REVENUES OF ECONYL® BRANDED PRODUCTS

UP BY 64.5% VS 9M21

43.5% OF REVENUES GENERATED BY FIBERS

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

9M2022 Main Results

				9M2022 Main Results
		REVENUES				EBITDA				NET PROFIT				NFP
	2022	2021	Δ %		2022	2021	Δ %		2022	2021	Δ %		30.06.22	31.12.21	Δ %
9M	529,9	419,3	26,4%	9M	73,2	59,6	22,9%	9M	26,1	14,3	83,3%	9M	(231,5)	(179,3)	-29,1%
				% on Revenues	13,8%	14,2%		% on Revenues	0,0	0,0
3Q	178,9	144,6	23,7%	3Q	21,7	20,2	7,2%	3Q	8,5	5,3	58,3%
				% on Revenues	12,1%	14,0%		% on Revenues	0,05	0,04

Revenues – by Components

Lower volumes of ca 8% compared to 9M2021 and 11% compared to 3Q21
- Volume: lower sales in EMEA
- Price & sales mix: positive impact thanks to better mix and selling price adjustment.

Revenues – Quantity

EMEA: volumes ca -20% vs 9M21 and -28% vs 3Q21:

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

USA: volumes ca +21% vs 9M21 and +22% in 3Q21:

BCF: higher quantity (+47%) due to increase of BCF fiber for contract and competitor withdrawal
NTF: lower quantity due to slow market demand;

Asia: volumes ca -3% vs 9M21 and +16% in 3Q21:

– BCF: in the 9 months lower quantity due to lower demand in residential sector and also for China lock down period with some limited impacts on internal market and in the 3Q increase of Japanese Market and Residential sector;

Revenues – Breakdown by Product Line and Area

Revenues – ECONYL®

Strong growth +65% vs 9M22 due to price increase and higher quantities driven by:
- ‒ BCF fiber: higher demand in contract sector
- ‒ NTF: higher demand from fashion brands

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

		9M		3Q
	2022	2021	∆%	2022	2021	∆%
REVENUES	529,9	419,3	26,4%	178,9	144,6	23,7%
EBITDA	73,2	59,6	22,9%	21,7	20,2	7,2%
% on net sales	13,8%	14,2%		12,1%	14,0%
EBIT	32,4	22,3	45,1%	7,9	8,3	-5,1%
% on net sales	6,1%	5,3%		4,4%	5,7%
EBT	33,0	18,0	83,6%	8,9	7,0	26,8%
% on net sales	6,2%	4,3%		4,9%	4,8%
NET RESULT	26,1	14,3	83,3%	8,5	5,3	58,3%
% on net sales	4,9%	3,4%		4,7%	3,7%

NFP – NPF/EBITDA

• Ratio NPF/EBITDA LTM at 2,70x

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 raw material quantities;

²⁷ ⁷

1. KEY MESSAGES 4
1. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

Outlook

As a result of the different global political and macroeconomic contexts, it is appropriate to analyze the Group's performance separately in the different geographical areas where it operates in order to provide a more comprehensively information on its performance.

EMEA is showing the expected slowdowns in the end market across all product lines due to the heavy inflationary pressures that have impacted mainly raw materials and energy. In the United States, the excellent uptrend reported in the first nine months of the year is confirmed. In Asia and Oceania, the market is showing sound end-customer demand levels thanks to the partial recovery of the residential market and an excellent performance by the Japanese market.

For the fourth quarter, we expect a less positive result than in the previous quarters of 2022, yet better than in the fourth quarter of 2021. On an annual basis, this will translate into the highest levels of absolute profitability ever achieved by the Aquafil Group.

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 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	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)

«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