Aquafil

Investor Presentation • Mar 30, 2020

Corporate Presentation

Mid & Small Virtual by VIRGILIO IR

31st March – 2 nd April 2020

Disclaimer

This document has been prepared by Aquafil S.p.A. ("Aquafil" or "Company") solely to introduce the Company and its business.

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This document is not intended for potential investors and is not to be used or considered as on offer to purchase or subscribe for, or a solicitation of any offer to purchase or subscribe for, any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. This document has been prepared separately from any proposed offering of securities and as such information in this document has been reviewed and approved by the Company. The securities of the Company have not been, and will not be, registered under the United State Securities Act of 1933, as amended ("Securities Act"), or under the corresponding rules and regulations applicable in Canada, japan, Australia or in any other jurisdiction where an offer is unlawful absent exemption or authorization by the competent authorities and may not be offered or sold to any national, resident or citizen of the United States, Canada, Australia, Japan or any other county where an offer is unlawful absent exemption or authorization by the competent authorities. This document constitutes neither an offer of securities in Italy pursuant to article 1, (t) of the Legislative Decree No. 58 of 24 February 1998, as amended, nor an offer of securities for sale in the United States and in any other jurisdiction.

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• Pioneers of circularity with ECONYL®:
  • An 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 38% of fiber turnover
• 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 3.000 employees at end 2019;
  • €549,0m of Revenues in FY2019
  • €69,4m EBITDA in FY2019

Global Footprint with proximity to Clients

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 CROATIA

Oroslavje Aquafil CRO

SLOVENIA

Ljubljana AquafilSLO

Senožeče AquafilSLO Senožeče

Štore AquafilSLO Štore

Ajdovščina AquafilSLO Ajdovščina

CHINA

Jiaxing Aquafil Jiaxing

THAILAND

Rayong Aquafil Asia Pacific

ITALY

Arco (TN) Aquafil (Headquarter)

Cares (TN) Rovereto (TN) Tessilquattro

A

Fiber for carpet flooring - BCF Product

Competitors

1

A

Product Range

Co - development

• More than 20,000 SKUs, approximately 5,000 references renewed each year

• The only supplier of 100% regenerated ECONYL® fiber
• Broad proprietary color range
• Specialty polymers

• Carpet development centers in each geography

• Production of more than 8,000 samples per year

Service

• The only player with production plants in 3 different continents
• Short delivery time: e.g. 2 weeks worldwide for the ECONYL® solution dyed fiber
• Consistent high quality across all geographies to serve consistent product to global clients

B

Fiber for Fabric - NTF Product

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

1

B

Fiber for Fabric - NTF Product

Flexible & Competitive Asset Base

Partnership with Clients

Attractive Value Proposition

• 90% + utilization
• Low labor, energy and logistic cost

• High level of automation in state of the art plants

• Consolidated partnership with the two most established nylon users in Europe

• Successful client portfolio thanks to a wide, competitive and diversified product offering
• ECONYL®
• Dryarn®
• Microlon
• Recognized brands and sophisticated product offer to the swimwear and lingerie sector

B

Fiber for Fabric - NTF Product

ECONYL® Regenerated Fiber

• 100% regenerated & regenerable nylon fiber
• Fully recognized by a large and growing number of global sportswear and luxury brands (c. 700 license brand agreements in place)
• Unique storyline channeled by brands onto final consumers
• Qualifies and opens doors to the entire Aquafil products offering

Dryarn®: a Successful High-performance Fiber

• Dryarn® is a niche, high-end fiber for sportswear and technical underwear applications
• Dryarn® has significantly superior properties than most common textile fibers (polyester, cotton, wool): better dryness (less moisture absorption), lightness, breathability and insulation capacity
• Established itself as THE brand of microfiber polypropylene high performance garments (military and civil service included)

• 100% regenerated & regenerable nylon
• Unique proprietary technology
• 37,5% of Aquafil Fiber Turnover 2018

WWW.ECONYL.COM

STEP 1: RESCUE

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.

The ACR#1, ARC#2, ARC#.. a new model for business…..

An unique and efficient solution for nylon 6 carpet regeneration, the AQUAFIL CARPET RECYCLING plant with capacity to collect and treat 16 k tons (each plant) of carpet per year

STEP 2: REGENERATE

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.

STEP 3: REMAKE ECONYL® regenerated nylon is processed into carpet yarn and textile yarn for the fashion and interior industries.

STEP 4: REIMAGINE Fashion brands and carpet producers use ECONYL® regenerated nylon to create brand

Giulio BONAZZI Chairman Chief Executive Officer and President of BCF Area Asia Pacific

Fabrizio CALENTI Executive Director – President of NTF & ECONYL® Technology

Adriano VIVALDI Executive Director Chief Financial Officer

Stefano LORO President of BCF Area EMEA

Sergio CALLIARI Senior Vice President of Finance

Franco ROSSI Director President of BCF Area USA

Giuseppe CRIPPA Senior Vice President of Industrial Operations BCF

Revenues (€m)

Revenues by Product Line H119 are composed by (a) 72,9% of fiber for carpet (BCF) product, including Engineering activities, (b) 19,6% of fiber for fabric (NTF) product and (d) 7,5% of Polymers and are carried out for (i) 59,6% EMEA (ii) 23,3% North America (iii) 16,8% Asia and Oceania

Sales of ECONYL® branded products are growth of 3,2% in FY 2019 compared to FY 2018 and represent in the ca 37,5% of fiber sales.

EBITDA (€m), EBIT Adjusted (1) (€m) and Margin on Revenues (%)

Net Profit (€m) and Margin on Revenues (%)

Capex (€m)

Capex FY 2019 without consider effects of O'Mara Incorporated acquisition and of IFRS16 is mainly relating to (i) increase of ECONYL® caprolactam production capacity including by construction of two Carpet Recycling plants located in Phoenix and in Sacramento, (ii) expansion of fiber production capacity in China and in United States, (iii) production and logistic efficiency improvement projects and (iv) upgrading and improvements of existing plants.

Net Financial Debt (€m) and Net Financial Debt / EBITDA(1)

Net financial position amounted to €249.6 million at December 31, 2019 compared to €273.2 million at September 30, 2019. Excluding the effect of the application of IFRS16 and the acquisition of O'Mara Incorporated, Net financial position would have amounted to €189.2 million compared to €207.3 million at September 30, 2019 and change is mainly attributable to the following cash flows (in euro million): (a) +55.2 from operation activities; (b) -55.9 from investments; (c) -5.1 from change in net working capital; (d) -12.3 from dividend payment; (e) -9.0 from interest and taxes paid.

Cash Flow from Operating Activities (€m) and Cash Return(2) (%)

Note: (1) LTM EBITDA is used for Half Period (2) Cash return defined as period Cash Flow from Operating Activities / EBITDA

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::

Board of Statutory Auditors

Stefano Poggi Longostrevi Chairman

actions for growth, launching new activities in various sectors and implementing plans for investment, control and assessment of results.

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

APPENDIX

RECONCILIATION FROM NET PROFIT TO EBITDA	December	December	Forth Quarter	Forth Quarter
€/000	2019	2018	2019	2018
Net Profit (Including Portion Attr. to Minority )	9.005	30.097	(529)	5.742
Income Taxes	1.519	6.986	(2.195)	784
Amortisation & Depreciation	37.765	26.361	11.793	7.438
Write-downs & Write-backs of intangible and tangible assets	555	285	318	(1.148)
Financial items (*)	10.108	7.793	3.916	1.187
No recurring items (**)	10.457	6.373	1.192	3.004
EBITDA	69.408	77.896	14.497	17.008
Revenue	548.955	555.220	129.418	124.288
EBITDA Margin	12,6%	14,0%	11,2%	13,7%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	December 2019	December 2018	Forth Quarter 2019	Forth Quarter 2018
EBITDA	69.408	77.896	14.497	17.008
Amortisation & Depreciation	37.765	26.361	11.793	7.438
Write-downs & Write-backs of intangible and tangible assets	555	285	318	(1.148)
EBIT Adjusted	31.088	51.250	2.385	10.718
Revenue	548.955	555.220	129.418	124.288
EBIT Adjusted Margin	5,7%	9,2%	1,8%	8,6%

(*) The financial items include: (i) non-recurring financial income of Euro 1.1 million in the period ending December 31, 2019 (ii) financial charges of Euro 7.5 million and Euro 5.8 million respectively in the periods ending December 31, 2019 and December 31, 2018, (iii) cash discounts of Euro 3.2 million end Euro 3.7 million respectively in the periods ending December 31, 2019 and December 31, 2018, and (iv) exchange loss of Euro 0.5 million and exchange gains of Euro 1.7 million respectively in the periods ending December 31, 2019 and December 31, 2018.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group and other corporate transactions for Euro 4.5 million and 3.0 million respectively in the periods ending December 31, 2019 and December 31, 2018, (ii) non-recurring industrial charghes of Euro 1.0 million for the period ending December 31, 2019, (iii) costs for restructuring for Euro 4.3 million and Euro 2.8 million respectively in the periods ending December 31, 2019 and December 31, 2018 and (iv) other non-recurring charges of Euro 0.6 million and Euro 0.6 million respectively in the periods ending December 31, 2019 and December 31, 2018.

CONSOLIDATED INCOME STATEMENT	December	of wich	December	of wich	Forth Quarter	of wich	Forth Quarter	of wich
€/000	2019	non-current	2018	non-current	2019	non-current	2018	non-current
Revenue	548.955		555.220		129.418		124.288	-
of which related parties	58		218		29		13	-
Other Revenue	2.555	229	2.591	856	963	117	2.172	437
Total and Other Revenue Revenue	551.509	229	557.811	856	130.380	117	126.461	437
Raw Material	(282.841)	(124)	(282.266)	(118)	(65.634)	(8)	(58.136)	93
Services	(100.412)	(3.584)	(100.935)	(2.918)	(24.825)	(201)	(27.296)	(637)
of which related parties	(491)		(3.586)		(148)		(901)
Personel	(113.281)	(5.849)	(106.410)	(3.983)	(28.540)	(703)	(29.174)	(2.800)
Other Operating Costs	(4.194)	(1.129)	(2.438)	(211)	(1.491)	(396)	(720)	(97)
of which related parties	(70)		(70)		(32)		(18)
Depreciation and Amorti zation	(37.765)		(26.361)		(11.793)		(7.438)
Doubtful debt prevision	(325)		(93)		(196)		701
Provisions for risks and charges	(230)		(192)		(123)		449
Capitalization of Internal Construction Costs	4.927		2.071		2.643		1.948
EBIT	17.389	(10.457)	41.187	(6.373)	422	(1.192)	6.794	(3.005)
Other Financial Income	1.195	1.082	45		75		14
Interest Expenses	(7.573)		(5.816)		(1.337)		(1.547)
of which related parties	(252)				(120)		-
FX Gains and Losses	(488)		1.668		(1.884)		1.267
Profit Before Taxes	10.524	(9.375)	37.084	(6.373)	(2.723)	(1.192)	6.528	(3.005)
Income Taxes	(1.519)	750	(6.986)		2.195	750	(785)
Net Profit (Including Portion Attr. to Minority )	9.005	(8.625)	30.097	(6.373)	(528)	(442)	5.743	(3.005)
Net Profit Attributable to Minority Interest	0		-		0		-
Net Profit Attributable to the Group	9.005		30.097		2.958		9.787
Basic earnings per share	0,18		0,59		(0,01)		0,11
Diluted earnings per share	0,18		0,59		(0,01)		0,11

Consolidated Balance Sheet

CONSOLIDATED BALANCE SHEET	At December 31,	At December 31,
€/000	2019	2018
Intangible Assets	21.101	15.992
Goodwill	13.029	-
Tangible Assets	251.492	189.661
Financial Assets	765	404
of which related parties	313	79
Other Assets	2.189	2.189
Deferred Tax Assets	13.636	7.841
Total Non-Current Assets	302.212	216.087
Inventories	184.931	189.678
Trade Receivable	24.960	34.046
of which related parties	69	66
Financial Current Assets	1.637	2.878
Current Tax Receivables	1.639	451
Other Current Assets	12.126	14.297
of which related parties	2.231	1.859
Cash and Cash Equivalents	90.400	103.277
Asset held for sales	428
Total Current Assets	316.120	344.627
Total Current Assets	618.332	560.714
Share Capital	49.722	49.722
Reserves	81.813	62.969
Group Net Profit for the year	10.799	31.119
Group Shareholders Equity	142.335	143.810
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	0
Total Sharholders Equity	142.336	143.811
Employee Benefits	5.721	5.702
Non-Current Financial Liabilities	286.970	224.345
of which related parties	9.624	-
Provisions for Risks and Charges	1.508	1.169
Deferred Tax Liabilities	10.915	3.582
Other Payables	15.383	11.833
Total Non-Current Liabilities	320.497	246.631
Current Financial Liabilities	54.733	39.090
of which related parties	3.572	-
Current Tax Payables	1.127	2.270
Trade Payables	76.089	106.895
of which related parties	127	762
Other Liabilities	23.551	22.017
of which related parties	236	230
Total Current Liabilities	155.499	170.272
Total Equity and Liabilities	618.332	560.714

CASH FLOW STATEMENT	At December 31,	At December 31,
€/000	2019	2018
Operation Activities
Net Profit (Including Portion Attr. to Minority )	9.005	30.097
of which related parties	(755)	(3.438)
Income Taxes	1.519	6.986
Other Financial Income	(1.195)	(45)
Interest Expenses	7.573	5.816
of which related parties	(252)	-
FX (Gains) and Losses	488	(1.668)
(Gain)/Loss on non - current asset Disposals	(476)	(303)
Provisions & write-downs	556	285
Amortisation, depreciation & write-downs	37.770	26.361
Cash Flow from Operating Activities Before Changes in NWC	55.238	67.531
Change in Inventories	10.177	(36.179)
Change in Trade and Other Receivables	(32.905)	12.418
of which related parties	(635)	46
Change in Trade and Other Payables	12.975	633
of which related parties	(3)	50
Change in Other Assets/Liabilities	5.440	3.617
of which related parties	(366)	(398)
Net Interest Expenses paid	(6.377)	(5.025)
Income Taxes paid	(2.548)	(6.335)
Change in Provisions for Risks and Charges	(830)	(1.271)
Cash Flow from Operating Activities (A)	41.169	35.389
Investing activities
Investment in Tangible Assets	(48.196)	(60.881)
Disposal of Tangible Assets	1.017	2.708
Investment in Intangible Assets	(7.876)	(10.834)
Disposal of Intangible Assets	2	13
Investment in Right of Use	(5.794)	-
Disposal in Right of Use	4.893	-
Business Purchases Aquafil O'Mara	(36.076)	-
of which Asset	(18.687)	-
of which Goodwill	(13.029)	-
of which cash	116	-
of which other assets and liabilities	(4.476)	-
Cash Flow used in Investing Activities (B)	-92.031	-68.994
Financing Activities
Increase in no current Loan and borrowing	103.000	120.000
Decrease in no current Loan and borrowing	(45.425)	(67.833)
Net variation in current fiancial Assets and Liability	(7.317)	(1.516)
of which related parties	1.275	-
Dividends Distribution	(12.273)	(12.241)
of which related parties	(7.316)	(7.369)
Increase (decrease) Share Capital	-	(600)
Merger contribution Cash Flow from Financing Activities ( C)	- 37.985	50 37.860
Net Cash Flow of the Year (A)+(B)+(C)	-12.877	4.255

NET FINANCIAL DEBT	At December 31, At December 31,
€/000	2019	2018
A. Cash	90.400	103.277
B. Other cash equivalents	-	-
C. Securities held-for-trading	-	-
D. Liquidity ( A + B + C)	90.400	103.277
Current financial E receivables	1.637	2.878
F. Current bank loans and borrowing	(129)	(96)
G. Current portion of non-current loans and borrowing	(46.056)	(35.496)
H. Other current loans and borrowing	(8.547)	(3.498)
I Current financial debt ( F G H ) + +	(54.733)	(39.090)
J. Net current financial debt (I + E+ D)	37.304	67.066
K. Non-current bank loans and borrowing	(169.796)	(159.492)
L. Bonds issued	(90.458)	(53.578)
M. Other non-current loans and borrowing	(26.619)	(11.274)
N. Non-current financial debt ( K + L + M )	(286.874)	(224.344)
O. Net financial debt (J+N)	(249.570)	(157.279)

Investors Contact:

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