Aquafil

Investor Presentation • May 12, 2022

Aquafil Group

1Q2022 Financial Results

12th May 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

1Q 2022 RESULTS SHARPLY INCREASING COMPARED TO 1Q 2021

REVENUES AT +31% ON 1Q21

EBITDA AT +35% ON 1Q21

REVENUES OF ECONYL® BRANDED PRODUCTS

UP BY 73.3% VS 1Q21

42.2% OF REVENUES GENERATED BY FIBERS CROSS-LISTING PROCESS STARTED IN THE UNITED STATES

Listing ordinary shares also, on the North American over-the-counter market managed by the OTC Market Group, in the OTCQX International segment

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

1Q2022 Main Results

	REVENUES					EBITDA				NET PROFIT
1Q	171,2	130,6	31,0%	4Q	24,8	18,3	35,4%	4Q	9,1	3,5	161,0%
				% on Revenues	14,5%	14,0%		% on Revenues	5,3%	2,7%

Revenues – by Components

• 1Q2022: lower volumes of ca 4% compared to 1Q2021
• Volume: lower polymers sales (1Q 2021 exceptional demand);
• Price & sales mix: positive impact thanks to selling price adjustment and better mix

Revenues – Quantity

EMEA: volumes ca -6% vs 1Q22 :

• BCF: higher quantity vs 1Q21 due to increase of BCF fiber for contract;
• NTF: in line with 1Q22 ;
• Polymers: lower market demand (extraordinary demand in 1Q21)

USA: volumes ca +13% vs 1Q22 :

• BCF: higher quantity vs 1Q21 due to increase of BCF fiber for contract and competitor withdrawal
• NTF: in line with 1Q22 ;

Asia: volumes ca +13% vs 1Q22 :

– BCF: lower quantity vs 1Q21 due to lower demand in residential sector

Revenues – Breakdown by Product Line and Area

Revenues – ECONYL®

• Strong growth +73% vs 1Q21 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

		1Q
	2022	2021	∆%
REVENUES	171,2	130,6	31,0%
EBITDA	24,8	18,3	35,4%
% on net sales	14,5%	14,0%
EBIT	12,5	6,1	105,3%
% on net sales	7,3%	4,6%
EBT	11,9	4,7	152,7%
% on net sales	7,0%	3,6%
NET RESULT	9,1	3,5	161,0%
% on net sales	5,3%	2,7%

NFP – NPF/EBITDA

• NFP on 31st March 2022 equal to 200,9 €/mil, higher of by 12,1% compared to 31st December 2021
• Ratio NPF/EBITDA LTM at 2,56x

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;

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

3. OUTLOOK 16

4. APPENDIX 18

Outlook

• The first quarter of 2022 saw the outbreak of the conflict between Russia and Ukraine, which is having and will continue to have, negative consequences for global growth and financial markets. In addition, the COVID-19 pandemic recently showed major signs of a resurgence in China.
• These first few weeks after the end of the quarter have yielded limited impacts on demand, most concentrated in the Polymers product line. Measures to recoup the increase in the cost of factors of production through selling prices continued.

• However, there remains a possibility that major events such as those outlined above may result in a reduction in demand and/or the unavailability of some factors of production.

• 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)

Appendix - Sector Data – Caprolactam price evolution

Appendix - Consolidate Income Statements

CONSOLIDATED INCOME STATEMENT	First Quarter	of wich non	First Quarter	of wich non
€/000	2022	current	2021	current
Revenue	171.160	296	130.640	-
of which related parties	13		13
Other Revenue	1.256	91	826	5
Total and Other Revenue Revenue	172.416	387	131.466	5
Raw Material	(78.567)	(91)	(62.764)	-
Services	(38.860)	(354)	(24.316)	(72)
of which related parties	(526)		(109)
Personel	(31.387)	(347)	(27.315)	(111)
Other Operating Costs	(1.234)	(55)	(795)	(8)
of which related parties	(17)		(17)
Depreciation and Amorti zation	(10.919)		(11.328)
Doubtful debt prevision	(17)		(110)
Provisions for risks and charges	25		7
Capitalization of Internal Construction Costs	1.004		1.225
EBIT	12.463	(460)	6.071	(186)
Other Financial Income	1.694		237
Interest Expenses	(1.872)		(2.032)
of which related parties	(31)		(45)
FX Gains and Losses	(383)		434
Profit Before Taxes	11.902	(460)	4.709	(186)
Income Taxes	(2.782)		(1.215)
Net Profit (Including Portion Attr. to Minority )	9.120	(460)	3.494	(186)
Net Profit Attributable to Minority Interest	0		0
Net Profit Attributable to the Group	9.120		3.494

Appendix - Consolidate Income Statements – Revenues 1Q

I Trimestre			BCF (fibre per tappeti)			NTF (fibre per abbigliamento)				Polimeri					TOTALE
$\epsilon$ /mil	2022	2021	Δ	$\Delta\%$	2022	2021	Δ	$\Delta\%$	2022	2021	Δ	$\Delta\%$	2022	2021	Δ	$\Delta\%$	% 22	% 21
EMEA	59,4	43,4	16,0	36,8%	28,4	21,3	7.1	33,4%	14,5	12,5	2,0	16,0 %	102,3	77,2	25,1	32,5 %	59,7 %	59,1 %
Nord America	33,9	19,3	14,6	75,8%	7.4	7.2	0.2	2,1%	0,2	1,2	(1,0)	(79, 9)%	41,5	27.7	13.8	49,9 %	24,2 %	21,2%
Asia e Oceania	25.2	24.7	0.5	2,2%	1,0	0.5	0.4	81,2%	0.4	0,1	0,3	250,7 %	26,6	25,3	1.3	5,0%	15,6%	19,4 %
Resto del mondo	0,2	0,1	0.1	0,0%	0,6	0.4	0,2	0,0%	0,0	0,0	0,0	0,0,0	0,8	0.4	0.4	87,3 %	0,5%	0.3%
TOTALE	118,7	87,4	31,2	35,7%	37,4	29,4	7.9	27,0%	15,1	13,8	1,3	9,7%	171,2	130,6	40,5	31,0%	$100.0 \%$	100,0 %
$\frac{9}{6}$	69,3%	66,9%			21.8%	22,5%			8,8%	10,6%			100,0%	100,0%

Appendix - Consolidate Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	First Quarter	First Quarter
	2022	2021
Net Profit (Including Portion Attr. to Minority )	9.120	3.494
Income Taxes	2.782	1.215
Amortisation & Depreciation	10.919	11.328
Write-downs & Write-backs of intangible and tangible assets	(9)	102
Financial items (*)	1.542	1.998
No recurring items (**)	460	186
EBITDA	24.814	18.327
Revenue	171.160	130.640
EBITDA Margin	14,5%	14,0%

RECONCILIATION FROM EBITDA TO	First Quarter	First Quarter
EBIT ADJUSTED €/000	2022	2021
EBITDA	24.814	18.327
Amortisation & Depreciation	10.919	11.328
Write-downs & Write-backs of intangible and tangible assets	(9)	102
EBIT Adjusted	13.904	6.896
Revenue	171.160	130.640
EBIT Adjusted Margin	8,1%	5,3%

(*) The financial items include: (i) financial income of Euro 1.7 million and Euro 0.2 million respectively in the periods ending March 31, 2022 and March 31, 2021 (ii) financial charges and other bank charges of Euro 1.8 million and Euro 2.0 million respectively in the periods ending March 31, 2022 and March 31, 2021, (iii) cash discounts of Euro 1.0 million end Euro 0.6 million respectively in the periods ending March 31, 2022 and March 31, 2021, and (iv) exchange loss of Euro 0.4 million and exchange gains of Euro 0.4 million respectively in the periods ending March 31, 2022 and March 31, 2021.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro 0.01 million and Euro 0.05 million respectively in the periods ending March 31, 2022 and March 31, 2021, (ii) non-recurring ECONYL* development charges of Euro 0.37 million in the period March 31, 2022 (iii) restructuring charges of Euro 0.09 million in the periods ending March 31, 2022 (iv) other non-recurring income of Euro 0.01 million and other non-recurring charges Euro 0.13 million respectively in the periods ending March 31, 2022 and March 31, 2021

Appendix - Consolidate Balance Sheet(1)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2022	2021
Intangible Assets	23.254	23.551
Goodwill	15.034	14.735
Tangible Assets	243.774	240.489
Financial Assets	1.886	710
of which related parties	318	318
Investments & Equity metod	1.018	1.018
Other Assets	576	626
Deferred Tax Assets	13.349	12.269
Total Non-Current Assets	298.891	293.398
Inventories	204.243	177.243
Trade Receivable	38.147	31.233
of which related parties	20	71
Financial Current Assets	225	860
Current Tax Receivables	318	423
Other Current Assets	14.378	12.853
of which related parties	1.112	3.152
Cash and Cash Equivalents	142.561	152.656
Total Current Assets	399.874	375.268
Total Current Assets	698.765	668.666

Appendix - Consolidate Balance Sheet(2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2022	2021
Share Capital	49.722	49.722
Reserves	105.299	91.708
Group Net Profit for the year	9.120	10.670
Group Shareholders Equity	164.141	152.101
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	164.142	152.102
Employee Benefits	5.805	5.910
Non-Current Financial Liabilities	275.214	263.421
of which related parties	7.165	6.359
Provisions for Risks and Charges	1.891	1.929
Deferred Tax Liabilities	11.834	11.158
Other Payables	10.360	10.813
Total Non-Current Liabilities	305.104	293.230
Current Financial Liabilities	69.688	69.438
of which related parties	1.906	2.240
Current Tax Payables	2.569	1.721
Trade Payables	131.975	126.566
of which related parties	813	352
Other Liabilities	25.287	25.608
of which related parties	230	230
Total Current Liabilities	229.519	223.334
Total Equity and Liabilities	698.765	668.666

Appendix - Net Financial Position

NET FINANCIAL DEBT	At March 31,	At December 31,
€/000	2022	2021
A. Liquidity	142.561	152.656
B. Cash and cash equivalents	-	-
C. Other current financial assets	225	860
D. Liquidity (A + B + C)	142.786	153.516
E. Current financial debt (including debt instruments but excluding the current portion of	(1.734)	(203)
non-current financial debt)
F. Current portion of non-current financial debt	(67.954)	(69.236)
G. Current financial debt (E + F)	(69.688)	(69.438)
H. Net current financial debt (G - D)	73.098	84.078
I. Non-current financial debt (excluding current portion and debt instruments)	(190.803)	(180.185)
J. Debt instruments	(83.197)	(83.210)
K. Trade payables and other non-current payables	-	-
L. Non-current financial debt (I + J + K)	(274.001)	(263.396)
M. Total financial debt (H + L)	(200.903)	(179.318)

Appendix - Consolidated Cash Flow Statement (1)

CASH FLOW STATEMENT

€/000	At March 31, 2022 At March 31, 2021
Operation Activities
Net Profit (Including Portion Attr. to Minority )	9.120	3.497
of which related parties	(561)	(158)
Income Taxes	2.782	1.215
Financial income	(1.694)	(57)
Financial charges	1.872	2.032
of which related parties	(31)	(45)
FX (Gains) and Losses	383	(434)
(Gain)/Loss on non - current asset Disposals	(56)	(31)
Provisions & write-downs	17	110
Write-downs of financial assets (receivables)	(25)	(7)
Amortisation, depreciation & write-downs	10.918	11.301
Cash Flow from Operating Activities Before Changes in NWC	23.316	17.626
Change in Inventories	(27.001)	590
Change in Trade and Other Payables	5.409	6.744
of which related parties	461	149
Change in Trade and Other Receivables	(6.889)	(7.095)
of which related parties	51	43
Change in Other Assets/Liabilities	(2.696)	1.140
of which related parties	2.040	(75)
Net Interest Expenses paid	(178)	(1.976)
Income Taxes paid	(78)	-
Change in Provisions for Risks and Charges	(242)	(255)
Cash Flow from Operating Activities (A)	- 8.358	16.774

Appendix - Consolidated Cash Flow Statement (2)

CASH FLOW STATEMENT
€/000	At March 31, 2022 At March 31, 2021
Investing activities
Investment in Tangible Assets	(7.226)	(4.976)
Disposal of Tangible Assets	76	31
Investment in Intangible Assets	(550)	(864)
Disposal of Intangible Assets
Cash Flow used in Investing Activities (B)	- 7.701 -	5.809
Financing Activities
Increase in no current Loan and borrowing	20.000
Decrease in no current Loan and borrowing	(10.854)	(30.592)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	2.357	(1.428)
of which related parties	472	(590)
Net variation non-monetary increase IFRS16	(3.982)	(502)
of which related parties	(1.177)
Acquisition of treasury shares	(1.558)
Cash Flow from Financing Activities ( C)	5.964	(32.522)
Net Cash Flow of the Year (A)+(B)+(C)	(10.095)	(21.557)