Aquafil

Investor Presentation • Mar 15, 2021

AQUAFIL

Corporate Presentation

March 2021

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45

• Pioneers of circularity with ECONYL®:

• A unique Regeneration System to produce sustainable fiber and polymers from nylon 6 waste;
• High barriers to entry for technology and reverse supply chain;
• Turnover of product branded ECONYL® equal to ca 37% of fiber turnover
• significant environmental advantage;
• reduction of greenhouse gas emissions by as much as 80%
• Market Leader in Nylon (PA):
  • Fiber for Carpet flooring (BCF Product);
  • Fiber for Fabrics (NTF Product);
  • Polymers for engineering plastics;
• A successful business model based on
  • Proprietary technology with continuous innovation;
  • R&D focus for a uniquely diversified commercial offer;
  • Manufacturing and operational excellence;
  • Focus on high-end segments for a premium positioning;
• A Global footprint with proximity to Clients
  • 16 plants in 3 continents and 7 countries
  • almost 2.700 employees at end 2020;
  • €436,6m of Revenues in FY2020;
  • €58,4m EBITDA in FY2020;

Aquafil – Product Lines

Aquafil – Value Chain

Aquafil – Global Footprint with Clients proximity

AQUAFIL WORLDWIDE

USA

Cartersville (Georgia) Aquafil USA 1 & 2

Phoenix (Arizona) Aquafil Carpet Recycling ACR#1

Sacramento (California) Aquafil Carpet Recycling ACR#2

Rutherford College (North Carolina) Aquafil O'Mara

UK Kilbirnie Aquafil UK

ITALY

Arco (TN) Aquafil (Headquarter)

Cares (TN) Rovereto (TN) Tessilquattro

Oroslavje Aquafil CRO

SLOVENIA

CROATIA

Ljubljana AquafilSLO

Senožeče AquafilSLO Senožeče

Štore AquafilSLO Štore

Ajdovščina AquafilSLO Ajdovščina

CHINA

Jiaxing Aquafil Jiaxing

THAILAND

Rayong Aquafil Asia Pacific

Aquafil – 50 years of Growth Key Milestones

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45

Competitors

1

A

Fiber for Fabric - NTF Product

Competitors

1

B

Textile mass production is in APAC, with Europe's core focus is on high-end production. Fast fashion needs lead to growing production out of Turkey, which can be served by European NTF players

A leading player with limited competition. Only 3 suppliers capable of offering products starting from monomer and intermediate handling. APAC moving slowly towards highend production

Market – Engineering Plastics Solution

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45

ECONYL – The Regeneration System

• 100% regenerated & regenerable nylon • Unique proprietary technology • Ca 37 % of Aquafil fiber 2020 revenues

WWW.ECONYL.COM

The ECONYL® Regeneration System starts with rescuing waste, like fishing nets, fabric scraps, carpet flooring and industrial plastic from landfills and oceans all over the world. That waste is then sorted and cleaned to recover all of the nylon possible.

Through a radical regeneration and purification process, the nylon waste is recycled right back to its original purity. That means ECONYL® regenerated nylon is exactly the same as virgin nylon.

ECONYL® regenerated nylon is processed into carpet yarn and textile yarn for the fashion and interior industries.

Fashion brands and carpet producers use ECONYL® regenerated nylon to create brand new products. And that nylon has the potential to be recycled infinitely, without ever losing its quality.

Index
1. AQUAFIL AT GLANCE
2. AQUAFIL MARKET
3. ECONYL®
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK
4.1. 2021 OUTLOOK	19
4.2. 2020 FINANCIAL RESULTS	23
4.3. SPECIAL PROJECTS	40
5. ANNEX	45

2021 Outlook – ITOCHU Memorandum of Understanding

• Main topics around of the working groups

FISHING NETS	• Evaluation of ITOCHU possible support in the fishing nets collection process, in Japan, then in the Asiatic area and finally in other parts of the world • Considerations on possibility to sell ECONYL® polymer to produce thread for the making of fishing nets through ITOCHU network
APPAREL - TEXTILE	• Reflection on how ITOCHU could possibly support supply chain activities aimed at the creation of garments and collections containing ECONYL® branded products and designed to be recycled at the end of their life/use • Possibility to create relationships with Asian brands thanks to mutual contacts
CARPET	• Evaluation of ITOCHU's support related to recent activities implemented by the Group to develop its own presence into the Japanese market
ENGINEERING PLASTIC	• Evaluation of possible ITOCHU's support on activities

2021 Outlook – Recovery trend ongoing

• January-February 2020 "first grade product" volume still not impacted by COVID
• 2021 started with strong push on "first grade product" volume from Polymer market
  • ꟷ price still impacted by raw material value compare to same period 2020
• Until now no significant impact from pandemic resurge in some European countries

(1) QTR/monthly variation

2021 Outlook – Group expectations

• 2020 uncertainty and variability will continue in the current year in term of both pandemic course new strains spread and vaccinations timing of in many countries worldwide – and economic scenario
• On the bases available data and information, assuming no worsening of the overall scenario, Group expects confirmation of the improvement path

2021 OUTLOOK	SALES	Growth to partially close the gap compared to 2019: Group marketing activities will be concentrated on of both volumes and "sales mix" recovery (particular focus on ECONYL®)
	EBITDA	Profitability recovery leveraging on volume growth, expected "sales mix" and consolidation of some of the benefits of Group Covid-19 action plan
	NFP	Improvement of PFN/EBITDA ratio thanks to previous profitability recovery and constant focus on NWC and CAPEX, safeguarding ability to adapt to markets evolution

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
4.1. 2021 OUTLOOK	19
4.2. 2020 FINANCIAL RESULTS	23
4.3. SPECIAL PROJECTS	40
5. ANNEX	45

2020 – Results improvement and "circularity path" right balance

EXTRAORDINARY REACTION IN EXTRAORDINARY TIMES THANKS TO AN EXTRAORDINARY TEAM

FAST AND EFFECTIVE ADOPTION OF COUNTERMEASURES TO MINIMISE PANDEMIC EFFECT AND DELIVER OUR COMMITMENTS

CONSISTENCY WITH STRATEGIC PATH TROUGH SELECTIVE ACQUISITION AND R&D

PROMPTLY BENEFITTING OF RECOVERY TREND

IMPROVED BASES FOR GROUP FUTURE

STRATEGIC PATH TO "CIRCULARITY" ENHANCED BY PANDEMIC EVENT

FOCUS ON ON-GOING IMPROVEMENT PROCESS DELIVERY

READY TO BENEFIT FROM SPECIFIC MARKET CONDITION THROUGH SELECTIVE ACTIVITIES

ENHANCING PARTNERSHIP TO BROAD ACTIVITIES AND GEOGRAPHIES

2020 – Strong Group reaction from all point of view

			2020 –					Strong Group reaction from all point of view
		REVENUES				EBITDA				NET PROFIT			NFP
	2019	2020	∆ %		2019	2020	∆ %		2019	2020	∆ %	2019	2020	∆ %
2020	549.0	436.6	(20.5%)	2020	69.4	58.4	(16.0%)	2020	9.0	0.6	(93.4%)	249.6	218.8	14.2%
				% on net sales	12.6%	13.4%		% on net sales	1.6%	0.1%
4QUARTER	129.4	108.7	(16.0%)	4QUARTER	14.5	18.3	26.2%	4QUARTER	3.5	(0.5)	n.s.
				% on net sales	11.2%	16.8%		% on net sales	(0.4%)	3.2%

Revenues – Double negative influence in 2020

• 2020: influenced both by COVID impact and raw material price adjustment
  • Volume (1): a constant recovery after lockdowns end brought decrease to 12%
  • Price: increasing negative impact among the year
    • o Caprolactam price down by around 19% with the peak in the central part of the year (2)
• 4Quarter: positive volume path
  • Volume: +3% growth at Group level
  • Price: still impact of caprolactam price adjustment
    • o 14% caprolactam price down in the period (2)

(1) Based on "First Grade Product" revenues – Index 100 (2) Source: Tecnon Orbichem - Caprolactam, West Europe price, new contract, molten, monthly average

Revenues – Different recovery speed by region

• 2020: fastest recovery in Asia Pacific thanks to BCF residential
  • EMEA: influenced by BCF due to "contract" final application
  • North America: driven by O'Mara, NTF growth mitigated BCF weakness (1)
• 4Quarter: positive volume in EMEA driven by Polymers
  • Asia Pacific: BCF residential drove recovery acceleration
  • North America: NTF strong performance confirmed, BCF still lacking behind

Revenues – BCF most influenced business line

(1) Asia Pacific includes "Rest of the World"

Revenues – Highest price adjustment in 2H

2020		BCF				NTF				POLYMERS					TOTAL
	2020	2019	∆	∆%	2020	2019	∆	∆%	2020	2019	∆	∆%	2020	2019	∆	∆%
EMEA	150.9	203.9	(53.0)	(26.0%)	67.2	87.9	(20.7)	(23.5%)	29.8	35.5	(5.6)	(15.9%)	247.9	327.2	(79.3)	(24.2%)
North America Asia & Oceania	80.6 72.8	106.1 89.8	(25.5) (16.9)	(24.0%) (18.9%)	25.2 2.7	16.4 1.9	8.8 0.8	53.9% 42.5%	5.4 0.2	5.4 0.5	0.1 (0.4)	1.4% (70.0%)	111.3 75.7	127.9 92.2	(16.6) (16.5)	(13.0%) (17.9%)
ROW	0.5	0.2	0.3	n.s.	1.3	1.5	(0.2)	(14.0%)	0.0	0.0		n.s.	1.8	1.7	0.1	5.6%
TOTAL	304.9	400.0	(95.1)	(23.8%)	96.4	107.7	(11.3)	(10.5%)	35.4	41.3	(5.9)	(14.3%)	436.7	549.0	(112.3)	(20.5%)

4QUARTER		BCF				NTF				POLYMERS				TOTAL
	2020	2019	∆	∆%	2020	2019	∆	∆%	2020	2019	∆	∆%	2020	2019	∆	∆%
EMEA	35.1	48.6	(13.5)	(27.7%)	15.9	19.6	(3.6)	(18.7)%	10.2	8.3	1.9	23.1%	61.2	76.4	(15.2)	(19.9%)
North America	1 8	23.6	(5.5)	(23.5%)	7	6.4	0.6	8.6%	1.1	0.6	0.4	71.8%	26.1	30.6	(4.5)	(14.8%)
Asia & Oceania	20.2	21.3	(1.1)	(5.4%)	0.6	0.3	0.4	n.s.	0.1	0.1	0.0	(28.5%)	21.0	21.8	(0.8)	(3.8%)
ROW	0.2	0.1	0.1	n.s.	0.4	0.6	(0.2)	(30.9%)	0.0	0.0	0.0	n.s.	0.5	0.6	(0.1)	(14.1)%
TOTAL	73.5	93.6	(20.1)	(21.5%)	23.9	26.8	(2.9)	(10.8%)	11.3	9.0	2.3	25.6%	108.8	129.4	(20.6)	(15.9%)

Revenues – ECONYL® – Pandemic impact in 2H on BCF

• 2020: different path among the year due to end market different timing reaction
  • 1H2020: strong orders increase in 1Q driven by clients' fears related to any production stops in Europe
  • 2H2020: pandemic full impact
• Completely different results among the business lines
  • BCF: down by around 25%, particularly influenced by "contract" final application
  • NTF: almost up by 20%, past marketing efforts and even increased attention versus "circular" products paying off

(1) % on Group fibres sales

Revenues – ECONYL® – Consistent historical growth

• 2015-2019: consistent historical growth delivery
  • average increase was more than 2x total fibres growth
  • % on net sales increased from 32.5% to 37.5%
• 2020 decreased related to COVID impact in BCF
• ECONYL® accelerated growth through
  • Strengthening relationship with consolidated customers
  • Attracting new customers
• In BCF allowed to protect and even increase market share, especially on high end products
• In NTF attraction of new customers was a key element
  • Fashion and luxury brands sharing same "circularity" vision were attracted by ECONYL® value proposition
    • o E.g. Burberry, Gucci and Prada

(1) 2015-2019 sales C.A.G.R.

• Group was able to both influence and benefit from increased focus sustainability thanks to marketing efforts among the entire value chain
• Fundamental drivers of these results were
  • R&D activities
  • Capability to increase industrial capacity, especially in Ljubljana, consistently with demand growth
  • "Reverse supply chain" consistent development
    • o December 2020 Planet Recycling: company with 35 years of experience in recycling residential and commercial carpet waste, increasing Group availability of used carpet material and creating a stable and competitive quantity of nylon waste to be supplied to the regeneration plant in Slovenia
• Actual industrial capacity increased significantly through 2018-2019 - will allow Group to both follow demand recovery and sustain medium-term growth

EBITDA – Effective and consistent minimisation of flow through

• Increasing effects among the year of actions promptly implemented in 2Q
  • 2Q: sales fall by 42.3%, EBITDA reduction by 52%
  • FY: sales decrease by 20.5% , EBITDA by 16%

PROFITABILITY	BUSINESS CONTINUITY	Sites: prompt adoption stricter safety measures, including new sites protocol and working practice HQs progressive adoption of remote working, afterwards safe "back to office" Customers: on-going support and services
	LABOUR	Precise and flexible "shift" management Government social schemes and other employment support tools
	OTHER COST	Delete of all discretionally spending

EBITDA – Effective and consistent minimisation of flow through

• 2020: contingency plan enhanced by 2019 saving plans implementation
  • 2019 delivery saving plans better than expected
  • Pandemic action plans includes various national grants to support employment (1)
• 4Quarter: sales mix and US grants to support employment different influence
  • Slow recovery of BCF "contract"
  • PPP Loan: granted on the base of the commitment to maintain labour force

(1) Among them € 4.8m of US government and € 2.9 mainly from Slovenia (latest mostly incurred in 1H2020)

P&L – Sales reduction and depreciation influence

		4Q2020			2020
	2019	2020	∆ %	2019	2020	∆ %
REVENUES	129.4	108.7	(16.0%)	549.0	436.6	(20.5%)
EBITDA	14.5	18.3	% 26.1	69.4	58.4	(15.9%)
% on net sales	11.2%	16.8%		12.6%	13.4%
EBIT	0.4	5.8	n.s.	17.4	5.9	n.s.
% on net sales	% 0.4	% 5.3		3.1%	0.0%
EBT	(2.7)	3.0	n.s.	10.5	0.1	n.s.
% on net sales	(2.1%)	% 2.8		2.0%	(0.9%)
NET RESULT	(0.5)	3.5	n.s.	9.0	0.6	n.s.
% on net sales	(0.4%)	% 3.3		1.6%	(0.9%)

• Depreciation: + € 5.8m driven
by 2018-2019 CAPEX peak and O'Mara consolidation
• One off cost: € 5.4m versus € 10.4m

• From € 250m to € 219m
  • A broad and effective action plan, leveraging on steps already taken in 2019

	NWC	Proactive and efficient inventories management leveraging on raw material evolution too
CASH GENERATION	CAPEX	Balance between short and medium long term approach
	M&A	Selective and consistent with "circularity" vision

	NEW LOANS	€ 105m new medium-long term loans
FINANCIAL SOLIDITY	LEVERAGE RATION	Minimising increase
	DIVIDENDS	2019 profit entirely allocated to retained earnings

CAPEX – Development and circularity as milestones

• Conclusion of past important development projects and strong focus drove material CAPEX reduction
  • Balance between short term needs and long-term approach
• Group CAPEX consistently driven by development, with circularity as milestones
  • Capacity increase in North America and moreover in China
  • Support to ECONYL® development and environmental KPI targets achievements

Data in € million (1) Net CAPEX, IFRS16 impact excluded - % incidence on net sales

CAPEX – Development and circularity as milestone – R&D

• "Circularity" as key milestone

	BCF	Project "Eco-design" Flame retardant, anti-stain, and anti-static yarns
MAIN	NTF	Anti-bacterial and anti-viral PA6 yarns Low thermal resistance PE yarns for apparels High UV and thermal resistance PA6 yarns for outdoor applications
R&D PROJECTS	GROUP	Innovative natural pigments and dyes for solution dyed yarns ECONYL® for 3D printing applications Development of a methodology to determine microplastics in environmental matrices (solid, liquid, air) Bio based caprolactam and Nylon 6 Industry 4.0 (digitalization, online sensors, and industry automation)

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
4.1. 2021 OUTLOOK	19
4.2. 2020 FINANCIAL RESULTS	23
4.3. SPECIAL PROJECTS	40
5. ANNEX	45

Projects updating – O'Mara acquisition

• Group acquired O'Mara in June 2019 to enter North American NTF market
  • Focus on interiors (furniture and mattresses application) and sportswear supply chain
• In the first full year inside the Group, Company achieved strong results despite market drop in 1H2020 which drove to at 3 production weeks stop

Projects updating – Bio based nylon project

• A pillar of Group "The ECO PLEDGE®» and one of the most relevant initiatives in which the Group takes part
  • 2 different path: Genomatica and Effective projects
• Genomatica
  • Joint technological development to develop the first renewable raw-material based nylon 6
  • Collaboration with Genomatica one of the leading bio technology company in the world started in 2017
  • After a "pilot" phase, "industrial scale" activities were validated: PA6 and NTF and BCF yarns batches were produced and then used for carpets and circular knitted fabrics prototypes, with positive results
  • 2021 step will be the construction and start-up of a demonstration plant

Projects updating – Bio based nylon project

• Effective
  • To develop an economic and sustainable process based on renewable raw materials to produce bio caprolactam and bio-polyamide and bio-polyester fibers and films
    • o polymers versatility allow application in a wide variety of products and sectors (e.g. textiles and packaging)
  • Started in 2018, supported by the EU Horizon 2020 (Bio Based Industry joint undertaking) research program and involving 12 organizations from 7 countries

Projects updating – ACR#1 and ACR#2

2017-2019	2020	2021
Plants and organisations defined and created to have an ECONYL® supply source in North America Technical difficulties arose, as usual during new technologies development process (e.g. metal separation processes)	Pandemic surge impacted demand but not improvement efforts whose benefits became more material in second part of the year In the meantime Group evaluated the most efficient and effective short term setting to enhance long term strategic approach (e.g. capacity utilisation increase by widening carpet type intake)	ACR#1 and #2 activities will be expanded, becoming operating units with a proper identity, business model and reference markets (e.g. post consumer pellets sales outside the Group and check of possible application in EP) Benefit from Planet Recycling acquisition

• In 2021 Group will implement this new approach, leveraging on investments and costs already incurred in previous years
• Consistently with demand recovery
  • ACR#2 will start production, applying improvement activities tested in 2020 on ACR#1
  • ACR#1 will increase production, with a broad range of products (e.g. pellets, chips and fluff)

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45
5.1. DISCLAIMER AND DEFINITIONS	45
5.2. 2020 FINANCIAL DATA DETAILS	48
5.3. SUSTAINABILITY PATH	56
5.4. SECTOR DATA	65
5.5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	67

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.

Mr. Sergio Calliari, the Manager in charge of preparing the corporate accounting documents, declares that, pursuant to Article 154-bis, paragraph 2, of the Legislative Decree No. 58 dated February 24, 1998, the accounting information contained in the Presentation correspond to document results, books and accounting records.

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.

«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)

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45
5.1. DISCLAIMER AND DEFINITIONS	45
5.2. 2020 FINANCIAL DATA DETAILS	48
5.3. SUSTAINABILITY PATH	56
5.4. SECTOR DATA	65
5.5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	67

Consolidate Income Statement

CONSOLIDATED INCOME STATEMENT	December	of wich	December	of wich	Fourth	of wich	Fourth	of wich
€/000	2020	non	2019	non	Quarter 2020	non	Quarter 2019	non
Revenue	436,602	current 458	548,955	current	108,672	current 171	129,418	current
of which related parties	5 3		5 8		(27)	-	2 9
Other Revenue	10,265	213	2,555	229	5,943	131	963	117
Total Revenue and Other Revenue	446,867	671	551,509	229	114,615	303	130,380	117
Raw Material	(209,825)	(101)	(282,841)	(124)	(50,345)	(37)	(65,634)	(8)
Services	(86,067)	(2,087)	(100,412)	(3,584)	(22,558)	(394)	(24,825)	(201)
of which related parties	(446)		(491)		(127)	-	(148)
Personel	(101,867)	(3,056)	(113,281)	(5,849)	(26,103)	(1,200)	(28,540)	(703)
Other Operating Costs	(4,430)	(828)	(4,194)	(1,129)	(1,048)	(38)	(1,491)	(396)
of which related parties	(70)		(70)		(17)	-	(32)
Depreciation and Amorti zation	(43,600)		(37,765)		(11,094)	-	(11,793)
Doubtful debt prevision	(632)		(325)		462	-	(196)
Provisions for risks and charges	(346)		(230)		108	-	(123)
Capitalization of Internal Construction Costs	5,830		4,927		1,731	-	2,643
EBIT	5,929	(5,402)	17,389	(10,457)	5,768	(1,367)	422	(1,192)
Other Financial Income	352	-	1,195	1,082	(1)	-	7 5
Interest Expenses	(7,982)		(7,573)		(1,845)	-	(1,337)
of which related parties	(226)		(252)		(49)	-	(120)
FX Gains and Losses	1,780		(488)		(876)	-	(1,884)
Profit Before Taxes	7 9	(5,402)	10,524	(9,375)	3,046	(1,367)	(2,723)	(1,192)
Income Taxes	517	-	(1,519)	750	449		2,195	750
Net Profit (Including Portion Attr. to Minority )	595	(5,402)	9,005	(8,625)	3,494	(1,367)	(528)	(442)
Net Profit Attributable to Minority Interest	0		0		-	-	-
Net Profit Attributable to the Group	595		9,005		3,494	-	(528)

Consolidate Income Statement – EBITDA Adjusted

RECONCILIATION FROM NET PROFIT TO EBITDA	December	December	Fourth Quarter	Fourth Quarter
€/000	2020	2019	2020	2019
Net Profit (Including Portion Attr. to Minority )	595	9,005	3,494	(529)
Income Taxes	(517)	1,519	(449)	(2,195)
Amortisation & Depreciation	43,600	37,765	11,094	11,793
Write-downs & Write-backs of intangible and tangible assets	978	555	(570)	318
Financial items (*)	8,297	10,108	3,344	3,916
No recurring items (**)	5,402	10,457	1,367	1,192
EBITDA	58,356	69,408	18,281	14,497
Revenue	436,602	548,955	108,672	129,418
EBITDA Margin	13.4%	12.6%	16.8%	11.2%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	December	December	Quarto	Fourth Quarter
	2020	2019	Trimestre 2020	2019
EBITDA	58,356	69,408	18,281	14,497
Amortisation & Depreciation	43,600	37,765	11,094	11,793
Write-downs & Write-backs of intangible and tangible assets	978	555	(570)	318
EBIT Adjusted	13,778	31,088	7,757	2,385
Revenue	436,602	548,955	108,672	129,418
EBIT Adjusted Margin	3.2%	5.7%	7.1%	1.8%

(*) The financial items include: (i) financial income of Euro 0.4 million and Euro 1.2 million respectively in the periods ending December 31, 2020 and December 31, 2019 (ii) financial charges and other other bank charges of Euro 8.0 million and Euro 7.6 milion respectively in the periods ending December 31, 2020 and December 31, 2019, (iii) cash discounts of Euro 2.5 million end Euro 3.2 million respectively in the periods ending December 31, 2020 and December 31, 2019, and (iv) exchange gains of Euro 1.8 million and exchange loss of Euro 0.5 million respectively in the periods ending Decemeber 31, 2020 and Decemeber 31, 2019.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro 0.4 million and Euro 1.5 million respectively in the periods ending December 31, 2020 and December 31, 2019, (ii) non-recurring ECONYL* development chargesof Euro 2.4 million and Euro 3.1 million respectively in the period ending December 31, 2020 and December 31, 2019 (iii) non-recurring industrial charges of Euro 1.0 million in the period ending December 31, 2019 (iv)restructuring charges of Euro 1.9 million and Euro 4.2 million respectively in the periods ending December 31, 2020 and December 31, 2019 and (v) other non-recurring charges of Euro 0.7 million and Euro 0.7 million respectively in the periods ending December 31, 2020 and December 31, 2019.

Consolidate Balance Sheet

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2020	2019
Intangible Assets	23,578	21,101
Goodwill	13,600	13,029
Tangible Assets	229,495	251,492
Financial Assets	650	765
of which related parties	318	313
Other Assets	1,336	2,189
Deferred Tax Assets	14,563	13,636
Total Non-Current Assets	283,223	302,212
Inventories	150,920	184,931
Trade Receivable	22,015	24,960
of which related parties	6 6	6 9
Financial Current Assets	834	1,637
Current Tax Receivables	1,772	1,639
Other Current Assets	11,981	12,126
of which related parties	3,187	2,231
Cash and Cash Equivalents	208,954	90,400
Asset held for sales	-	428
Total Current Assets	396,475	316,120
Total Current Assets	679,698	618,332
Share Capital	49,722	49,722
Reserves	92,585	81,813
Group Net Profit for the year	(15,411)	10,799
Group Shareholders Equity	126,897	142,335
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	-
Total Sharholders Equity	126,897	142,336
Employee Benefits	5,969	5,721
Non-Current Financial Liabilities	352,560	286,970
of which related parties	5,406	9,624
Provisions for Risks and Charges	1,506	1,508
Deferred Tax Liabilities	11,761	10,915
Other Payables	11,848	15,383
Total Non-Current Liabilities	383,644	320,497
Current Financial Liabilities	75,964	54,733
of which related parties	3,361	3,572
Current Tax Payables	1,189	1,127
Trade Payables	69,168	76,089
of which related parties	403	127
Other Liabilities	22,835	23,551
of which related parties	230	236
Total Current Liabilities	169,157	155,499
Total Equity and Liabilities	679,698	618,332

Debt overview – Gross debt details

Debt overview – Gross debt details
BORROWINGS - 31 December 2020	ISSUE DATE	CURRENCY	COUPON ( 1 )	MATURITY	Total	AMOUT Drawn	Undrawn	COVENANTS ( 2 ) Parameters	Reference Check
Private Placement B	Sept 2018	EUR	4.70%	Sept 2028	5 0	5 0	0	EBITDA / Net financial charges > 3.5
Private Placement C	May 2019	EUR	2.87%	May 2029	4 0	4 0	0	(1) Net Debt / EBITDA < 4,5x as of 31.12.2020 4,25x as of 30.6.2021 - 3,75x starting 31.12.2021	Group	Half-yearly
Shelf facilities	Sept 2018	EUR	Floating at use	Sept 2028	5 0	0	5 0	To be defined at use
US Private Placement					140	9 0	5 0
Medium-long term loans - fixed rate	2016-2020	EUR	1.25%	2021-2027	203	203	0	Net Debt / Net Equity
Medium-long term loans - variable rate	2018-2020	EUR	0.62%	2021-2026	106	106	0	Net Debt / EBITDA EBITDA / Financial charges	Group
Medium-long term loans					309	309	0
Short term credit lines	N.A.	EUR	Floating at use	Revocable	7 8	0	7 8	N.A.
Leasing	2007	EURO	0.08%	2021	9	9	0	N.A.
TOTAL					536	408	128

150

Debt overview – Net financial position

NET FINANCIAL DEBT	At December 31,	At December 31,
€/000	2020	2019
A. Cash	208,954	90,400
B. Other cash equivalents	-	-
C. Securities held-for-trading	-	-
D. Liquidity ( A + B + C)	208,954	90,400
Current financial E. receivables	834	1,637
F. Current bank loans and borrowing	(131)	(129)
G. Current portion of non-current loans and borrowing	(67,480)	(46,056)
H. Other current loans and borrowing	(8,353)	(8,547)
I. Current financial debt ( F G H ) + +	(75,964)	(54,733)
J. Net current financial debt (I + E+ D)	133,824	37,304
K. Non-current bank loans and borrowing	(240,940)	(169,796)
L. Bonds issued	(90,406)	(90,458)
M. Other non-current loans and borrowing	(21,214)	(26,619)
N. Non-current financial debt ( K + L + M )	(352,560)	(286,874)
O. Net financial debt (J+N)	(218,736)	(249,570)

Debt overview – Net financial position – Details

400

Data in € million - (1) Excluding lease liabilities and liquidity

CASH FLOW STATEMENT	At December 31,	At December 31,
€/000	2020	2019
Operation Activities
Net Profit (Including Portion Attr. to Minority )	595	9,005
of which related parties	-689	-755
Income Taxes	-517	1,519
Financial income	-352	-1,195
Financial charges	7,982	7,573
of which related parties	-226	-252
FX (Gains) and Losses	-1,780	488
(Gain)/Loss on non - current asset Disposals	-162	-476
Provisions & write-downs	978	555
Amortisation, depreciation & write-downs	43,600	37,770
Net variation non-monetary increase IFRS16	-3,541	-901
Cash Flow from Operating Activities Before Changes in NWC	46,805	54,336
Change in Inventories	34,187	10,177
Change in Trade and Other Payables	-6,920	-32,905
of which related parties	276	-635
Change in Trade and Other Receivables	2,599	12,975
of which related parties	3	-3
Change in Other Assets/Liabilities	-7,510	5,440
of which related parties	-1,076	-366
Net Interest Expenses paid	-7,631	-6,377
Income Taxes paid	-326	-2,548
Change in Provisions for Risks and Charges	-945	-830
Cash Flow from Operating Activities (A)	60,258	40,267
Investing activities
Investment in Tangible Assets	-21,851	-48,196
Disposal of Tangible Assets	1,121	1,017
Investment in Intangible Assets	-6,020	-7,876
Disposal of Intangible Assets	80	2
Business Purchases	-2,771	-36,076
of which Asset	-922	-18,687
of which Goodwill	-1,673	-13,029
of which cash	0	116
of which other assets and liabilities	-176	-4,476
Disposal of Financial Assets	-5	0
Cash Flow used in Investing Activities (B)	(29,445)	(91,130)
Financing Activities
Increase in no current Loan and borrowing	105,000	103,000
Decrease in no current Loan and borrowing	-12,485	-45,425
Net variation in current fiancial Assets and Liability	-4,774	-7,317
of which related parties	-4,428	1,275
Dividends Distribution	0	-12,273
of which related parties	0	-7,316
Cash Flow from Financing Activities ( C)	87,741	37,985
Net Cash Flow of the Year (A)+(B)+(C)	118,554	(12,877)

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45
5.1. DISCLAIMER AND DEFINITIONS	45
5.2. 2020 FINANCIAL DATA DETAILS	48
5.3. SUSTAINABILITY PATH	56
5.4. SECTOR DATA	65
5.5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	67

Aquafil sustainability path – Grounded on vision and business model

• Journey to circularity started with a deep business model review to prepare Group to next decades evolution based on cultural sensitiveness to environmental topics and Group R&D and technological strengths
• Aquafil correctly identified future trends which gradually became "secular" change drivers
  • 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
    • o Clients sharing the same vision
    • o Many different regulators increasing focus to environmental laws all across Group presence countries
    • o First steps versus Extended Production Responsibility ("EPR")
    • o Civil society growing sensitiveness
• Eco-Design is next crucial step
  • from the "raw material–product–waste" linear model to the "closing the loop" paradigm
    • o products build with raw materials which will become raw materials by themselves

Aquafil sustainability path – A journey started in 1990

Aquafil sustainability path – The ECO PLEDGE®

Aquafil sustainability path – The ECO PLEDGE®

	SUSTAINABILITY PILLARS	IMPROVEMENT AREAS	TOPICS
	RE THINKING PRODUCTS IN A CIRCULAR PERSPECTIVE	• Creation of new sustainable value chains	• Creation of a new recycled products/ materials (PP, copper)
		• Research other sustainable value chains	• Bio bases nylon
PROTECTING THE ENVIRONMENT		• Investment in energy from renewable sources	• Procurement of electricity from renewable sources for the entire Aquafil group
		• Improving the impacts of production processes	• Energy efficiency of the production lines, reduction of the water consumption and discharge, ISO50001 (Energy) and ISO14001 (Environment) certification
ATTENTION TO THE	• Minimizing accidents (Zero accidents)	• ISO45001 / OHSAS18001 certification
	WELL-BEING OF THE PEOPLE	• Supporting employees growth	• Hours of training and single use plastic free
	SHARED RESPONSIBILITY ALONG THE SUPPLY CHAIN	• Integrating sustainability in purchasing procedures	• Social Accountability certification (SA8000), ECONYL® qualified project and integration of safety, environmental and social criteria in supplier's qualification
		• Spreading the culture of sustainability	• Healthy Seas Project
	SUPPORT LOCAL COMMUNITIES	• Supporting local development and training young people	• Support of local cultural and sports centers, contribution to youth development and support of vulnerable groups

The ECO PLEDGE® – SDGs and GRI alignment

61

• Eco-Design aim is to create products which "will come back" because are conceived and built to become future resources and not wastes

• Collaboration on the entire value chain is the crucial successful driver

The collaboration allowed the development of an innovative technology which separates carpet tiles at the end of life into two main components, maintaining over 95% purity of the yarn. This level of purity ensures that the PA6 yarn can be recycled and transformed into new ECONYL® regenerated nylon

Creation of a completely circular product: the "Skidoo Infinity" jacket is "mono material" done with ECONYL® yarn and standard nylon and therefore designed to be completely recycled. Thanks to a take back program, it can be returned after two years of use and recycled into new ECONYL® yarn

NAPAPIJRI Closing the loop in NTF

CORAL EYEWEAR Closing the loop in Polymers

"Endangered collection": glasses and sunglasses made with ECONYL® and completed with frame recycling scheme (2 year-guarantee, after this period frames can be returned for recycling)

The ECO PLEDGE® – Re-thinking products

The ECO PLEDGE® – Protecting the environment

• Aquafil is committed to respect the environment in every phase of its own production process
• Therefore, activities and to reduce impacts and recover energy are constant among years

• E.g. installation of new heating systems with heat recovery, or sharing excess thermal energy with structures close to the factories and choosing energy from renewable sources
• From this point of view, below the most relevant Group KPI
  • 2020 data are influenced by volume drop determined by COVID pandemic

	Unit	2015	2019	Change	Comments 2015-2019	2020
ENERGY CARRIER	GJ	2.451.995	2.481.249	1.2%	Efficiency measures and consistent improvement of used "energy mix" mitigate capacity increase	2.205.600
GREENHOUSE GAS EMISSION	tCO2eq	173.850	51.512	(70.4%)	Increase of green energy use	50.408
WATER CONSUMPTION	106 liters	4.759	3.119	(34.5%)	Implementation of resources efficiency measure	3.100
WATER DISCHARGE	106 liters	4.112	3,176	(22.8%)	Implementation of resources efficiency measure	3.142
WASTE PRODUCTION	t	2015 n.a. 2016: 13.387	13.631	1.8%	Increase of the ECONYL® regeneration System's capacity	9.859

For definition and additional information see please Group 2002 Non Financial Report

The ECO PLEDGE® – Share responsibility along the supply chain

• Aquafil establish solid relationships with its customers and suppliers, based on the commitment and desire to improve together, leveraging on constant comparison and collaboration
• Some example of partnership with customers:

Leveraging on an internationally structured partnership network, Group can collect large quantities of waste to be regenerated into new ECONYL® yarn.

PRADA

Prada announced the replacement of all the nylon yarn used for its products with ECONYL® regenerated nylon by 2021. The Group has launched a collection in ECONYL®

Index	Page
1. AQUAFIL AT GLANCE	3
2. AQUAFIL MARKET	9
3. ECONYL®	13
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK	19
5. ANNEX	45
5.1. DISCLAIMER AND DEFINITIONS	45
5.2. 2020 FINANCIAL DATA DETAILS	48
5.3. SUSTAINABILITY PATH	56
5.4. SECTOR DATA	65
5.5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	67

Sector Data – Caprolactam price evolution

(1) Source: Tecnon Orbichem - Caprolactam, West Europe price, new contract, molten, monthly average

Index	Page
1. AQUAFIL AT GLANCE
2. AQUAFIL MARKET
3. ECONYL®
4. 2020 FINANCIAL RESULTS & 2021 OUTLOOK
5. ANNEX	45
5.1. DISCLAIMER AND DEFINITIONS	45
5.2. 2020 FINANCIAL DATA DETAILS	48
5.3. SUSTAINABILITY PATH	56
5.4. SECTOR DATA	65
5.5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	67

Ownership Structure & Governance

A capital structure with 3 type of Shares (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 and (c) share C: no transferable, no economic and voting right but at certain conditions convertible in ordinary share at a ratio of 4,5 ordinary share for 1 Share C. At 31st December 2018:

Main Aquafil's shareholders is Aquafin Holding S.p.A. (holding of Giulio Bonazzi Family) and also Managers are involved::

Ownership Structure & Governance

Board of Statutory Auditors

Board of Directors defines the Group's global strategies by developing actions for growth, launching new activities in various sectors and implementing plans for investment, control and assessment of results.

Bettina Solimando Statutory Auditor

Note: (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

Investors Contact:

Karim Tonelli Investor Relations & Performance Management Director karim.tonelli@aquafil.com Mob: +39 348 60 22 950