Aquafil

Investor Presentation • Dec 4, 2019

AQUAFIL

Corporate Presentation

Italian Champions Conference

Milan – December 4th , 2019

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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• 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 37% of fiber turnover – CAGR 2016/2018 equal to 14,0%
• 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 June 2019;
  • €555,2m of Revenues in FY2018 - 528,3m FY17;
  • €77,9m EBITDA in FY2018 - 73,8m EBITDA in FY17

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% 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) 73,4% of fiber for carpet (BCF) product, including Engineering activities, (b) 18,6% of fiber for fabric (NTF) product and (d) 9,4% of Polymers and are carried out for (i) 51,6% EMEA (ii) 21,6% North America (iii) 16,6% Asia and Oceania

Sales of ECONYL® branded products are growth of 4,5% in H119 compared to H118 and represent in the ca 37,3% of fiber sales.

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

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

Capex (€m)

Capex H1 2019 does not consider effects of O'Mara Incorporated acquisition and of IFRS16 and 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 the United States, (iii) production and industrial efficiency improvement projects and (iv) upgrading and improvements of existing plants.

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

H1 2019 equal to 197,2 is adjusted reducing effect of O'Mara acquisition (36,6 €/mil) and IFRS16 (29,7€ €/mil). Increase of 39,9 €/mil is mainly related to (i) +33,8 €/mil of cash flow from operating activities, (ii) -32,6 €/mil of CAPEX, (iii) -22,8 €/mil of NWC change, (iv) -12,3 €/mil of divided payment (v) -2,4 €/mil of payment of financial cost and taxes. The H1 2019 EBIDTA LTM used for ratio calculation of NFP/EBITDA do not consider EBITDA derived from IFRS16 and O'Mara acquisition

fromCash Flow from Operating Activities (€m) and end ²⁰¹⁸ is 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	Half Year	Half Year	Second Quarter	Second Quarter
€/000	2019	2018	2019	2018
Net Profit (Including Portion Attr. to Minority )	10.654	19.614	2.958	9.764
Income Taxes	3.637	5.424	1.757	2.827
Amortisation & Depreciation	16.574	12.364	8.536	6.292
Write-downs & Write-backs of intangible and tangible assets	224	769	189	469
Financial items (*)	4.586	4.455	4.207	1.362
No recurring items (**)	3.396	2.312	2.310	1.946
EBITDA	39.070	44.938	19.957	22.659
Revenue	286.667	291.291	141.339	150.484
EBITDA Margin	13,6%	15,4%	14,1%	15,1%

RECONCILIATION FROM EBITDA TO	Half Year	Half Year	Second Quarter	Second Quarter
EBIT ADJUSTED €/000	2019	2018	2019	2018
EBITDA	39.070	44.938	19.957	22.659
Amortisation & Depreciation	16.574	12.364	8.536	6.292
Write-downs & Write-backs of intangible and tangible assets	224	769	189	469
EBIT Adjusted	22.273	31.805	11.232	15.899
Revenue	286.667	291.291	141.339	150.484
EBIT Adjusted Margin	7,8%	10,9%	7,9%	10,6%

(*) The financial items include: (i) non-recurring financial income of Euro 1.1 million in the period ending June 30, 2019 (ii) financial charges of Euro 3.7 million and Euro 3.0 million respectively in the periods ending June 30, 2019 and June 30, 2018, (iii) cash discounts of Euro 1.7 million end Euro 2.0 million respectively in the periods ending June 30, 2019 and June 30, 2018, and (iv) exchange losses of Euro 0.2 million and exchange gains of Euro 0.5 million respectively in the periods ending June 30, 2019 and June 30, 2018.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group and other corporate transactions for Euro 2.3 million and 1,6 million respectively in the periods ending June 30, 2019 and June 30, 2018, (ii) non-recurring industrial charges of Euro 0.6 million for the period ending June 30, 2019, (iii) costs for restructuring and the regularisation of expatriated personnel for Euro 0.1 million and Euro 0.4 million respectively in the periods ending June 30, 2019 and June 30, 2018 and (iv) other non-recurring charges of Euro 0.4 million and Euro 0.3 million respectively in the periods ending June 30, 2019 and June 30, 2018.

CONSOLIDATED INCOME STATEMENT	Half Year	of wich	Half Year	of wich	Second Quarter	of wich	Second Quarter	of wich
€/000	2019	non-current	2018	non-current	2019	non-current	2018	non-current
Revenue	286.667		291.291		141.339		150.484
of which related parties	29		188		12		47
Other Revenue	1.181	95	594	143	580	20	593	143
Total and Other Revenue Revenue	287.848	95	291.885	143	141.919	20	151.077	143
Raw Material	(148.225)	(119)	(147.995)	(101)	(71.071)	(19)	(77.483)	(99)
Services	(51.191)	(2.340)	(49.420)	(1.584)	(26.410)	(1.537)	(26.052)	(1.381)
of which related parties	(219)		(1.790)		(116)		(897)
Personel	(54.060)	(739)	(52.847)	(658)	(27.348)	(600)	(27.258)	(516)
Other Operating Costs	(1.311)	(293)	(1.047)	(111)	(717)	(174)	(566)	(92)
of which related parties	(38)		(35)		(20)		(17)
Depreciation and Amorti zation	(16.574)		(12.364)		(8.536)		(6.292)
Provi s ions and Write-downs	(224)		(769)		(189)		(469)
Capitalization of Internal Construction Costs	886		81		415		37
EBIT	17.148	(3.396)	27.524	(2.312)	8.063	(2.310)	12.994	(1.946)
Other Financial Income	1.100	1.082	17		9		1
Interest Expenses	(3.717)		(3.027)		(2.156)		(1.651)
of which related parties	(132)				(66)
FX Gains and Losses	(241)		525		(1.202)		1.247
Profit Before Taxes	14.290	(2.314)	25.038	(2.312)	4.714	(2.310)	12.591	(1.946)
Income Taxes	(3.637)		(5.424)		(1.757)		(2.827)
Net Profit (Including Portion Attr. to Minority )	10.654	(2.314)	19.614	(2.312)	2.958	(2.310)	9.764	(1.946)
Net Profit Attributable to Minority Interest	0		-		0		(23)
Net Profit Attributable to the Group	10.654		19.614		2.958		9.787
Basic earnings per share	0,21		0,39		0,06		0,19
Diluted earnings per share	0,21		0,39		0,06		0,19

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2019	2018
Intangible Assets	17.138	15.992
Goodwill	14.040	-
Tangible Assets	252.001	189.661
Financial Assets	750	404
of which related parties	312	79
Other Assets	2.191	2.189
Deferred Tax Assets	6.802	7.841
Total Non-Current Assets	292.922	216.087
Inventories	193.726	189.678
Trade Receivable	42.973	34.046
of which related parties	30	66
Financial Current Assets	1.525	2.878
Current Tax Receivables	1.139	451
Other Current Assets	14.119	14.297
of which related parties	1.644	1.859
Cash and Cash Equivalents	89.032	103.277
Total Current Assets	342.514	344.627
Total Current Assets	635.436	560.714
Share Capital	49.722	49.722
Reserves	81.814	62.969
Group Net Profit for the year	10.981	31.119
Group Shareholders Equity	142.518	143.810
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	0
Total Sharholders Equity	142.519	143.811
Employee Benefits	5.713	5.702
Non-Current Financial Liabilities	296.618	224.345
of which related parties	13.495	-
Provisions for Risks and Charges	1.305	1.169
Deferred Tax Liabilities	5.014	3.582
Other Payables	13.599	11.833
Total Non-Current Liabilities	322.249	246.631
Current Financial Liabilities	57.467	39.090
of which related parties	4.075	-
Current Tax Payables	1.669	2.270
Trade Payables	89.377	106.895
of which related parties	181	762
Other Liabilities	22.155	22.017
of which related parties	236	230
Total Current Liabilities	170.669	170.272
Total Equity and Liabilities	635.436	560.714

Consolidated Cash Flow Statement

CASH FLOW STATEMENT	At June 30,	At June 30,
€/000	2019	2018
Operation Activities
Net Profit (Including Portion Attr. to Minority )	10.654	19.614
of which related parties	-360	-1.637
Income Taxes	3.637	4.975
Other Financial Income	-1.100	-17
Interest Expenses	3.717	3.027
of which related parties	132	0
FX (Gains) and Losses	241	-525
(Gain)/Loss on non - current asset Disposals	-148	-133
Provisions & write-downs	224	769
Amortisation, depreciation & write-downs	16.572	12.364
Cash Flow from Operating Activities Before Changes in NWC	33.796	40.075
Change in Inventories	1.313	-8.919
Change in Trade and Other Receivables	-19.584	-1.562
of which related parties	-611	0
Change in Trade and Other Payables	-4.966	-19.038
of which related parties	36	-62
Change in Other Assets/Liabilities	402	1.828
of which related parties	681	1.282
Net Interest Expenses paid	-1.593	-2.586
Income Taxes paid	-713	-1.769
Change in Provisions for Risks and Charges	-58	-308
Cash Flow from Operating Activities (A)	8.597	7.721
Investing activities
Investment in Tangible Assets	-30.421	-22.295
Disposal of Tangible Assets	183	860
Investment in Intangible Assets	-2.319	-8.334
Disposal of Intangible Assets	7	13
Investment in Right of Use		0
Business Purchases Aquafil O'Mara	-2.976 -35.618
of which Asset		0 0
of which Goodwill	-15.060	0
of which cash	-14.040	0
	112
of which other assets and liabilities	-6.630	0
Disposal of Financial Assets Cash Flow used in Investing Activities (B)	0 -71.144	-166 -29.923
Financing Activities Increase in no current Loan and borrowing	73.000	55.000
Decrease in no current Loan and borrowing	-11.320	-28.364
Net variation in current fiancial Assets and Liability	-1.105	744
of which related parties	2.030	0
Dividends Distribution	-12.273	-12.241
of which related parties	-7.316	-7.369
Increase (decrease) Share Capital	0	42
Cash Flow from Financing Activities ( C)	48.301	15.181
Net Cash Flow of the Year (A)+(B)+(C)	-14.245	-7.021

NET FINANCIAL DEBT	At June 30, At December 31,
€/000	2019	2018
A. Cash	89.032	103.277
B. Other cash equivalents	-	-
C. Securities held-for-trading	-	-
D. Liquidity ( A + B + C)	89.032	103.277
E Current financial receivables	1.525	2.878
F. Current bank loans and borrowing	(132)	(96)
G. Current portion of non-current loans and borrowing	(47.223)	(35.496)
H. Other current loans and borrowing	(10.113)	(3.498)
I Current financial debt ( F G H ) + +	(57.467)	(39.090)
J. Net current financial debt (I + E+ D)	33.090	67.066
K. Non-current bank loans and borrowing	(170.153)	(159.492)
L. Bonds issued	(93.182)	(53.578)
M. Other non-current loans and borrowing	(33.277)	(11.274)
N. Non-current financial debt ( K + L + M )	(296.612)	(224.344)
O. Net financial debt (J+N)	(263.522)	(157.279)

Investors Contact:

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