Aquafil — Investor Presentation 2021

Oct 11, 2021

Aquafil Group

STAR CONFERENCE Fall Edition 2021

Milan, 12th and 13th October 2021

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Aquafil at glance

• A global Group with proximity to clients
• ‒ 19 plants in 3 continents and 8 countries
• ‒ in 2020, above 2.600 employees, € 437m of revenues and € 58m of EBITDA
• Market leader in nylon for fiber for carpet flooring (BCF products), fabrics (NTF products) and polymers for EP and molding industries)
• A successful business model based on
• ‒ Proprietary technology with continuous R&D innovation for a uniquely diversified commercial offer
• ‒ Manufacturing and operational excellence focused on high-end segments
• Pioneers of circularity with ECONYL®, around 37% of fiber turnover
• ‒ A unique Regeneration System to produce sustainable fiber and polymers from nylon 6 waste
• ‒ High barriers to entry for technology and reverse supply chain
• ‒ Significant environmental advantage with a reduction of greenhouse gas emissions by around 90%

Aquafil at glance – A global Group with proximity to clients

USA

Cartersville – Georgia Aquafil USA 1 & 2

Phoenix - Arizona Aquafil Carpet Recycling ACR#1 Aquafil Carpet Collection

Sacramento and Chula Vista - California Aquafil Carpet Recycling ACR#2 Aquafil Carpet Collection

Rutherford College - North Carolina Aquafil O'Mara

REVENUES

% on 1H21

EUROPE

ITALY Arco, Cares and Rovereto Aquafil Headquarter Tessilquattro

CROATIA Oroslavje Aquafil CRO

SLOVENIA Ajdovščina, LjubljanA Senožeče and Štore AquafilSLO (4 plants)

UK Kilbirnie Aquafil UK

21,2% 60,9% 17,6%

ASIA PACIFIC

CHINA Jiaxing Aquafil Jiaxing

JAPAN Tokyo Aquafil Japan

THAILAND Rayong Aquafil Asia Pacific

Aquafil at glance – Product lines

Aquafil at glance – Business model

Aquafil at glance – 50 years of growth – Key milestones

Aquafil at glance – A Company to change the world

MAGAZINE CHANGE THE WORLD

Fortune's 2019 Change the World List: Companies to Watch

By Matthew Heimer and Erika Fry 19 August 2019

"Burberry and Prada both recently launched collections featuring ECONYL®, a recycled nylon that this Italian yarn manufacturer creates from old fishing nets, fabric scraps, and discarded carpets. The company claims that for every ton of the upcycled material it produces, it saves 7 barrels of crude oil and 5,7 tons of carbon emissions."

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Sustainability path – Driven by 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

Sustainability path – A journey started in 1990

Sustainability path – A journey started in 1990

• The milestones

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

The ECO PLEDGE®

RETHINKING PRODUCTS IN A CIRCULAR PERSPECTIVE

Innovating products to make them more and more circular, giving new life to waste materials, in an infinite cycle.

PROTECTING THE ENVIRONMENT

Producing consciously and responsibly, pursuing continuos improvement and excellence in every aspetc.

ATTENTION TO THE WELL-BEING OF PEOPLE

People who, with commitment and passion, are the foundation of the Group.

SUPPORT LOCAL COMMUNITIES

Grow in harmony with local communities, promoting a prosperous and respectful development of their territory.

SHARED RESPONSIBILITY ALONG THE SUPPLY CHAIN

Collaborate with suppliers and customers to bring about change and environmental sustainbility in the entire sector.

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

The ECO PLEDGE® – Re-thinking products

• 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

NAPAPIJRI Closing the loop in NTF

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

"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® – 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

The ECO PLEDGE® – Supply chain share responsibility

• 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 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®

PRADA

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

ECONYL®

• ECONYL® regenerated nylon is 100% recycled yarn made of plastic waste such as fishing nets, industrial scraps and used carpets
• 37% of Aquafil fiber turnover in 2020

ECONYL® – Steps

• Step 1: rescue
• ‒ The ECONYL® Regeneration System starts with rescuing waste, like fishing nets, fabric scraps, carpet flooring and industrial plastic from all over the world
• ‒ That waste is then sorted and cleaned to recover all of the nylon possible
• Step 2: regenerate
• ‒ Through a depolymerization and purification process, the nylon waste is recycled right back to its original purity
• ‒ That means ECONYL® regenerated nylon is exactly the same as conventional nylon coming from oil

• Step 3: remake

‒ ECONYL® regenerated caprolactam is processed into polymer and yarn for the fashion and carpet industries

• Step 3: reimagine

• ‒ 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 loosing its quality

ECONYL® – A consistent 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

ECONYL® – A consistent growth

• Partner sharing same "circularity" vision were attracted by ECONYL® value proposition

ECONYL® – A consistent growth – Drivers

• Fundamental drivers of these results were
• R&D activities
• Industrial capacity increase
• Creation of nylon waste reverse logistic platform
• ‒ Innovative marketing activities

ECONYL® – A consistent growth – R&D activities

• Usual R&D activities shown us new opportunities in Group production process

As reported in the EPD of the ECONYL(R) polymer (Revision 5, 2020 - 05 - 07)

ECONYL® – A consistent growth – Industrial capacity increase

• Circularity is one of the milestones of Group CAPEX process
• Support development and environmental KPI targets achievements
• The capability to increase ECONYL® capacity, especially in Ljubljana, allowed to consistently follow demand growth
• Actual industrial capacity increased significantly through 2018-2019 will allow Group to both follow demand recovery and sustain medium-term growth

ECONYL® – A consistent growth – Nylon waste reverse logistic platform

• Group was able to built a nylon "reverse" supply chain to collect raw materials for ECONYL® to create a stable and competitive quantity of nylon waste to be supplied to the regeneration plant in Slovenia
• Pre consumer waste
• Carpets: e.g. December 2020 the acquisition of Planet Recycling, a company with 35 years of experience in recycling residential and commercial carpet waste
• Fishing nets
• Cast nylon

ECONYL® – A consistent growth – Innovating marketing activities

• Aquafil products are ingredients incorporated into final client products and therefore are not visible to end consumer
• Since its launch, ECONYL® ingredient proved to be the perfect fit for a different marketing strategy: a strong ingredient branding approach
• This thanks to three main conditions: "fits the category", "point of parity" and "point of difference"

FITS THE CATEGORY	ECONYL® perfectly fits in the category of "Sustainable Products"
POP	ECONYL® has those points of parity needed for a smooth and quick adoption. The high-quality standards allow the supply chain to easily replace any traditionally oil-based nylon fiber, without any compromise with esthetic, colors and hand fill
POD	ECONYL® has an edge over the competitors as it holds a unique story of a 100% regenerated nylon fiber from post and pre-consumer waste. The circular model provides a competitive advantage that no other product are able to give

ECONYL® – A consistent growth – Innovating marketing activities

• "Traditional" marketing strategies
• ‒ B2B strategy: building marketing towards chain next link through a narrow and single-sided customersupplier relationship
• Multilevel Ingredient strategy ("pull strategy"): product demand is created at different levels through investments and cooperation with all tiers of the supply chain

ECONYL® – A consistent growth – Innovating marketing activities

• ECONYL® branding strategies
• ‒ Targeted only on the final brand, this approach surpasses limitations and dangers of a too narrow and single-sided customer-supplier relationship
• ‒ Selling process is based on partnerships and direct communication with fashion and sportswear brands who are taking the purchasing decision. Cooperation with the entire value chain is thus focus around the ECONYL® ingredient
• ‒ This approach is possible thanks to the ECONYL® POP and POD

2021 Outlook – Trading updating 1H 2021

• EMEA: volumes up by more than 10% compared to 2Q2019 and by almost by 3% versus 1H2019 (up by almost 90% and by more than 30% compared to 2Q2020 and 1H2020 respectively): (a) BCF: consistent enhancement of "residential" and "automotive", in 2Q "contract" recovery improved; (b) NTF: strong push from ECONYL® products; (c) Polymers: the growth driver of the region, having benefitted from an outstanding market demand-
• North America: volumes down by 2% compared to 2Q2019 and in line with 1H2019 (2) (compared to 2Q2020 and 1H2020 up by almost 40% and by around 10% respectively): (a) BCF "automotive" recovery stronger than "contract" one (b) NTF: strong demand in all final application sectors, "home" in particular
• Asia Pacific: volumes down by 3% compared to 2Q2019 and up almost by 10% compared to 1H2019 (up by 70% compared to 2Q2020 and by 50% up by 1H2020): BCF: good performance of "automotive" in China and "residential" in Oceania, even if the latter recorded a slow down in the final part of the period probably due optimization inventory policies of some customers

⁽¹⁾ Based on "First Grade Product" revenues (2) In BCF, especially in first part of 2019, Group benefitted from the withdrawal by a primary competitor on some types of product while NTF O'Mara acquisition was consolidated since June 2019 (2) Index 100

2021 Outlook – 2021 Group improving expectation enhanced

• The expectations of a positive development in the health crisis caused by the Covid-19 pandemic and the benefits expected from the extension of the vaccine campaign suggest that the expansionary phase of the world economy, already noticeable in recent months at national and European level, may continue during the second half of 2021, despite the persistence of uncertain and changing situations due to the spread of new variants of the virus and the difficulties of administering vaccinations in the world's less developed countries.
• Group expected revenues and clients order entries confirmed 1H2021 positive trends in the different region and for all tree product lines
• On the bases of available data and information, assuming an evolution of the overall scenario consistent with 1H2021, Aquafil confirms improving expectation for 2021
• ‒ in details for the 2nd part of 2021 Group expects
  • o A sales and EBITDA evolution in line with 1H2021, considering business usual trend in year 2nd Half(1)
  • o A further improvement of the PFN/EBITDA ratio driven by a progress of both EBITDA and NFP

1H2021 enhances Group improvement commitments

		REVENUES				EBITDA				NET PROFIT			NFP
1HALF	222.7	274.7	23.3%	1HALF	26.9	39.3	46.4%	1HALF	(1.9)	8.9	n.s.	218.7	184.7	15.6%
				% on net sales	12.1%	14.3%		% on net sales	(0.9%)	3.2%
2QUARTER	82.0	144.1	142.7%	2QUARTER	8.7	21.0	142.7%	2QUARTER	(6.0)	5.4	n.s.
				% on net sales	10.6%	14.6%		% on net sales	(7.1%)	3.7%

Revenues – Components (1) – Group volumes above 2019

• 2Q2021: volumes up by more than 5% compared to 2Q2019
• Volume: up by more than 75% compared to 2Q2020
• Price & sales mix: still slightly negative impact but having improved thanks to progressive selling price adjustment to raw material price variation
• 1H2021: volumes up by more than 3% compared to 1H2019
• Volume: up by more 30% compared to 1H2020
• Price & sales mix: negative impact, mostly for 1Q2021 trend

Revenues – Polymers almost double their weight

(1) O'Mara Incorporated consolidated since 31st May 2019 (2) Asia Pacific includes "Rest of the World"

Revenues – ECONYL® – Going back to normality

• 2Q-1H2021: going back to normality after the pandemic impact on ECONYL® demand in 2020
• ‒ between 1Q and 2Q2020 especially BCF "contract" clients-built warehouse stocks to face possible production block due to lockdown measures, having postponed demand drop in 2H2020

• NTF again better than BCF

• ‒ BCF demand still influenced by "contract" slow recovery
• ‒ NTF demand drove by agreements with fashion brand

P&L – Volume recovery and ongoing efficiency

	2QUARTER			1HALF
	2020	2021	∆ %	2020	2021	∆ %
REVENUES	82.0	144.1	75.6%	222.7	274.7	23.3%
EBITDA	8.7	21.0	142.7%	26.9	39.3	46.4%
% on net sales	10.6%	14.6%		12.1%	14.3%
EBIT	(5.3)	8.0	n.s.	(0.1)	14.1	n.s.
% on net sales	n.s.	5.5%		0.0%	5.1%
EBT	(7.2)	6.3	n.s.	(1.6)	11.0	n.s.
% on net sales	n.s.	4.4%		(0.7)%	4.0%
NET RESULT	(6.0)	5.4	n.s.	(1.9)	8.9	n.s.
% on net sales	n.s.	3.8%		(0.9)%	3.2%

• Depreciation & amortization up by around € 1m also due previous year investments
• One off cost: € 0.5m versus € 2.7m for lower restructuring costs and ACR#1&2 improvements

NFP – NPF/EBITDA LTM at 2.6x

• NFP improved by 15.6% compared to December 2020
• Results of action taken in 2019 and strengthened in the COVID action plan
• NPF/EBITDA LTM at 2.6x
• The gradual lifting of emergency measures suggested to make early payments of some medium-to-long-term bank loans: liquidity decreased therefore from € 209m at December 2020 to € 174m at June 2021

Data in € million

(1) Financial covenants are checked on half-yearly and annual bases, 1Q2021 data is given for informative purpose only

NFP – Strong focus on NWC and CAPEX

• CAPEX equal to € 13.9m, almost in line with 1H2020
• In accordance Group CAPEX guidelines, capacity and technological improvements
• A consistent focus on NWC allowed cash generation despite impact of both turnover growth and raw material price increase

Index		Page
	1. AQUAFIL AT GLANCE	4
	2. SUSTAINABILITY PATH	11
	2.1. The ECO PLEDGE®	16
	2.2. ECONYL®	23
	3. 2021 OUTLOOK & 1Q2021 RESULTS	35
	3.1. 2021 OULOOK	35
	3.2. 1Q2021 RESULTS	38
4. ANNEX		46
	4.1. DISCLAIMER AND DEFINITIONS	47
	4.2. PROJECTS UPDATING	50
	4.3. SECTOR DATA	55
	4.4. 1Q2021 DETAILS	57
	5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Index		Page
	1. AQUAFIL AT GLANCE	4
	2. SUSTAINABILITY PATH	11
	2.1. The ECO PLEDGE®	16
	2.2. ECONYL®	23
	3. 2021 OUTLOOK & 1Q2021 RESULTS	35
	3.1. 2021 OULOOK	35
	3.2. 1Q2021 RESULTS	38
4. ANNEX		46
	4.1. DISCLAIMER AND DEFINITIONS	47
	4.2. PROJECTS UPDATING	50
	4.3. SECTOR DATA	55
	4.4. 1Q2021 DETAILS	57
	5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

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.

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.

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)

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 complementary and synergic paths: Genomatica and project EFFECTIVE
• Genomatica
• Joint technological development to produce the first ever bio-based Nylon 6 from renewable raw materials
• Collaboration with Genomatica one of the leading bio-engineering company in the world started in 2017
• In 2019-2020, validation of the technology at "pilot" scale through the production of approx. one ton of biobased intermediate, which was then converted into bio-based caprolactam. Currently under conversion into bio-based Nylon 6
• 2021 step will be the construction and start-up of a demonstration plant

Projects updating – Bio based nylon project

• Project EFFECTIVE
• Extending Aquafil-Genomatica initiative to the whole supply chain by validating bio-based polyamides and bio-based polyesters from renewable raw materials into large-consumer products
  • o Polymers' versatility allows application in a wide range of products and sectors (filaments for textile applications, films for packaging, etc.)
• Started in 2018, supported by the Bio-Based Industry Joint Undertaking (through the EU Horizon 2020 Research Programme), and involving 12 organization from 7 European Countries.
• Technologies have been already validated at "pilot" scale, and the upscaling of all manufacturing steps (from raw materials up to manufacturing of prototypes of carpets, fabrics and garments) is currently on-going

Projects updating – ACR#1 and ACR#2

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

Sector Data – Caprolactam price evolution

Index		Page
	1. AQUAFIL AT GLANCE	4
	2. SUSTAINABILITY PATH	11
	2.1. The ECO PLEDGE®	16
	2.2. ECONYL®	23
	3. 2021 OUTLOOK & 1Q2021 RESULTS	35
	3.1. 2021 OULOOK	35
	3.2. 1Q2021 RESULTS	38
4. ANNEX		46
	4.1. DISCLAIMER AND DEFINITIONS	47
	4.2. PROJECTS UPDATING	50
	4.3. SECTOR DATA	55
	4.4. 1Q2021 DETAILS	57
	5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Consolidate Income Statements

CONSOLIDATED INCOME STATEMENT €/000	1H2021	of wich non current	1H2020	of wich non current	2Q2021	of wich non current	2Q2020	of wich non current
Revenue	274,700		222,733		144,060		82,019	166
of which related parties	2 7		2 7		1 4		-	-
Other Revenue	2,685	443	3,371	226	1,859	439	2,889	4 2
Total Revenue and Other Revenue	277,385	443	226,104	226	145,919	439	84,909	209
Raw Material	(135,494)		(109,477)	(58)	(72,729)	-	(36,746)	(46)
Services	(50,100)	(305)	(42,296)	(1,036)	(25,785)	(232)	(17,194)	(410)
of which related parties	(212)		(211)		(103)		(102)	-
Personel	(55,805)	(582)	(51,635)	(1,168)	(28,490)	(471)	(23,817)	(544)
Other Operating Costs	(1,640)	(61)	(2,582)	(716)	(845)	(53)	(1,436)	(587)
of which related parties	(35)		(35)	-	(17)		(17)
Depreciation and Amorti zation	(23,312)		(21,754)	-	(11,984)		(10,921)
Doubtful debt prevision	(128)		(1,084)	-	(19)		(1,070)
Provisions for risks and charges	7 7		(3)	-	7 0		(3)
Capitalization of Internal Construction Costs	3,077		2,666	-	1,852		1,028
EBIT	14,060	(504)	(62)	(2,751)	7,990	(318)	(5,250)	(1,378)
Other Financial Income	491		197		254		151
Interest Expenses	(3,822)		(4,241)		(1,790)		(2,035)
of which related parties	(79)		(123)		(33)		(94)
FX Gains and Losses	260		2,541		(174)		(78)
Profit Before Taxes	10,989	(504)	(1,564)	(2,751)	6,280	(318)	(7,213)	(1,378)
Income Taxes	(2,078)		(371)	-	(863)		1,201
Net Profit (Including Portion Attr. to Minority )	8,911	(504)	(1,935)	(2,751)	5,417	(318)	(6,012)	(1,378)
Net Profit Attributable to Minority Interest			-
Net Profit Attributable to the Group	8,911	(504)	(1,935)	(2,751)	5,417	(318)	(6,012)	(1,378)

Consolidate Income Statements – Revenues details

2QUARTER	BCF			NTF			POLYMERS				TOTAL
	2020	2021	∆	∆%	2020	2021	∆	∆%	2020	2021	∆	∆%	2020	2021	∆	∆%
EMEA	3 0	47.2	17.2	57.3%	12.4	20.3	7.8	63.1%	5.1	22.6	17.6	346.2%	47.5	90.1	42.6	89.6%
North America	17.1	21.7	4.6	27.1%	3.5	6.6	3.1	89.6%	1.2	2.1	0.9	78.5%	21.7	30.4	8.7	39.9%
Asia & Oceania	11.9	21.1	9.2	76.8%	0.7	1.6	0.9	140.1%	0.0	0.2	0.2	n.a.	12.6	23.0	10.3	81.9%
ROW	0	0.1	0.1	n.a.	0.1	0.4	0.3	n.a.	0.0	0.0	0.0	n.a.	0.1	0.5	0.4	n.a.
TOTAL	59.0	90.1	31.1	52.7%	16.7	29.0	12.2	73.1%	6.3	25.0	18.7	299.1%	82.0	144.1	62.0	75.6%

1HALF		BCF				NTF				POLYMERS				TOTAL
	2020	2021	∆	∆%	2020	2021	∆	∆%	2020	2021	∆	∆%	2020	2021	∆	∆%
EMEA North America	82.4 41.9	90.6 4 1	8.2 (1.0)	10.0% (2.3)%	37.4 10.4	41.6 13.9	4.2 3.4	11.3% 32.8%	13.5 3.3	35.1 3.3	21.6 (0.0)	160.4% (0.4)%	133.3 55.7	167.3 58.1	34.1 2.4	25.6% 4.4%
Asia & Oceania	31.5	45.8	14.3	45.5%	1.6	2.1	0.5	% 34.2	0	0.4	0.4	n.a.	33.1	48.3	15.2	46.0%
ROW	0.5	0.2	0.1	49.5%	0.6	0.8	0.2	% 29.8	0.0	0.0	0.0	n.a.	0.7	0.9	0.2	% 33.0
TOTAL	155.9	177.6	21.6	13.9%	50.0	58.4	8.4	16.8%	16.8	38.7	22.0	130.8%	222.7	274.7	52.0	23.3%

Consolidate Income Statements – EBITDA details

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	1H2021	1H2020	2Q2021	2Q2020
Net Profit (Including Portion Attr. to Minority )	8,911	(1,935)	5,417	(6,012)
Income Taxes	2,078	371	863	(1,201)
Amortisation & Depreciation	23,312	21,754	11,984	10,921
Write-downs & Write-backs of intangible and tangible assets	5 1	1,087	(51)	1,073
Financial items (*)	4,485	2,848	2,483	2,501
No recurring items (**)	504	2,751	318	1,378
EBITDA	39,341	26,876	21,014	8,660
Revenue	274,700	222,733	144,060	82,019
EBITDA Margin	14.3%	12.1%	14.6%	10.6%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	1H2021	1H2020	2Q2021	2Q2020
EBITDA	39,341	26,876	21,014	8,660
Amortisation & Depreciation	23,312	21,754	11,984	10,921
Write-downs & Write-backs of intangible and tangible assets	5 1	1,087	(51)	1,073
EBIT Adjusted	15,978	4,036	9,082	(3,334)
Revenue	274,700	222,733	144,060	82,019
EBIT Adjusted Margin	5.8%	1.8%	6.3%	-4.1%

(*) The financial items include: (i) financial income of Euro 0.5 and Euro 0.2 million respectively in the periods ending June 30, 2021 and June 30, 2020 (ii) financial charges and other other bank charges of Euro 3.8 million and Euro 4.2 milion respectively in the periods ending June 30, 2021 and June 30, 2020, (iii) cash discounts of Euro 1.4 and 1.3 respectively in the periods ending June 30, 2021 and June 30, 2020, and (iv) exchange gains of Euro 0.3 and Euro 2.5 million respectively in the periods ending June 30, 2021 and June 30, 2020.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro 0.1 and Euro 0.2 million respectively i n the periods ending June 30, ²⁰²¹ and June 30, 2020, (ii) other non-recurring charges for ECONYL activity for Euro 0.6 and Euro 1.5 million respectively i n the periods ending June 30, ²⁰²¹ and June 30, 2020, (iii) costs for restructuring and other personal costs for Euro 0.1 and Euro 0.5 million respectively i n the periods ending June 30, ²⁰²¹ and June 30, 2020, (iv) other non-recurring charges of Euro 0.1 and 0.5 million respectively i n the periods ending June 30, ²⁰²¹ and June 30, 2020, (v) income from equity investments for Euro 0.4 million at the end of June 30,2021.

Consolidate Balance Sheet

CONSOLIDATED BALANCE SHEET
€/000	At June 30 2021	At December 31 2020
Intangible Assets	23,329	23,578
Goodwill	14,043	13,600
Tangible Assets	226,548	229,495
Financial Assets	648	650
of which related parties	313	313
Other Assets	1,636	1,336
Deferred Tax Assets	11,818	14,563
Total Non-Current Assets	278,022	283,223
Inventories	154,364	150,920
Trade Receivable	30,985	22,015
of which related parties	2 9	6 6
Financial Current Assets	8,359	834
Current Tax Receivables	597	1,772
Other Current Assets	17,003	11,981
of which related parties	3,649	3,187
Cash and Cash Equivalents	165,854	208,954
Total Current Assets	377,162	396,475
Total Assets	655,184	679,698
Share Capital	49,722	49,722
Reserves	83,905	76,579
Group Net Profit for the year	8,911	595
Group Shareholders Equity	142,539	126,897
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	142,539	126,897
Employee Benefits	5,740	5,969
Non-Current Financial Liabilities	294,739	352,560
of which related parties	4,056	5,406
Provisions for Risks and Charges	1,762	1,506
Deferred Tax Liabilities	9,824	11,761
Other Payables	11,066	11,848
Total Non-Current Liabilities	323,132	383,644
Current Financial Liabilities	64,163	75,964
of which related parties	3,140	3,361
Current Tax Payables	1,522	1,189
Trade Payables	97,209	69,168
of which related parties	336	403
Other Liabilities	26,618	22,835
of which related parties	230	230
Total Current Liabilities	189,512	169,157
Total Equity and Liabilities	655,184	679,698

Data in € million

(1) For further information see please paragraph 7 "Net Financial Debt" of the Notes to Condensed Consolidated 1H2021 Results

Consolidate Balance Sheet – Gross debt details

Consolidate Balance Sheet – Gross debt details
AMOUT COVENANTS ( 2 ) BORROWINGS - 30 June 2021 ISSUE DATE CURRENCY COUPON MATURITY ( 1 )
					Total	Drawn	Undrawn	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	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	1.27%	2021-2027	7 4	7 4	0	Net Debt / Net Equity
Medium-long term loans - variable rate	2018-2020	EUR	0.71%	2021-2026	167	167	0	Net Debt / EBITDA Group EBITDA / Financial charges
Medium-long term loans					241	241	0
Short term credit lines	N.A.	EUR	Floating at use	Revocable	7 8	0	7 8	N.A.
Leasing	2007	EURO	0.00%	14/07/1905	8	8	0	N.A.
TOTAL					467	339	128

• Group gross debt average length is close to 3 years

Net Financial Position

NET FINANCIAL DEBT €/000		At June 30 2021 At December 31 2020
A. Liquidity	165,854	208,954
B. Cash and cash equivalents	0	0
C. Other current financial assets	8,359	834
D. Liquidity (A + B + C)	174,213	209,787
E. Current financial debt
(including debt instruments but excluding the current portion of non-current
financial debt)	(28)	(131)
F. Current portion of non-current financial debt	(64,136)	(75,833)
G. Current financial debt (E + F)	(64,163)	(75,964)
H. Net current financial debt (G - D)	110,050	133,824
I. Non-current financial debt (excluding current portion and debt instruments)	(204,359)	(262,154)
J. Debt instruments	(90,380)	(90,406)
K. Trade payables and other non-current payables	0	0
L. Non-current financial debt (I + J + K)	(294,739)	(352,560)
M. Total financial debt (H + L)	(184,689)	(218,736)

Consolidated Cash Flow Statement

CASH FLOW STATEMENT €/000	At June 30 2021	At June 30 2020
Operation Activities
Net Profit (Including Portion Attr. to Minority )	8,911	(1,935)
of which related parties	(299)	(342)
Income Taxes	2,078	371
Financial income	(491)	(197)
Financial charges	3,822	4,241
of which related parties	(79)	123
FX (Gains) and Losses	(260)	(2,541)
(Gain)/Loss on non - current asset Disposals	(77)	(72)
Provisions & write-downs	128	1,084
Write-downs of financial assets (receivables)	(77)	3
Amortisation, depreciation & write-downs of tangible and intangible assets	23,312	21,761
Net variation non-monetary increase IFRS16	(2,159)	(1,206)
Cash Flow from Operating Activities Before Changes in NWC	35,187	21,508
Change in Inventories	(3,444)	16,571
Change in Trade and Other Payables	28,041	(11,287)
of which related parties	(67)	279
Change in Trade and Other Receivables	(8,892)	2,531
of which related parties	3 7	(29)
Change in Other Assets/Liabilities	811	(3,640)
of which related parties	(462)	(191)
Net Interest Expenses paid	(3,331)	(4,044)
Income Taxes paid	-	610
Change in Provisions for Risks and Charges	(464)	(571)
Cash Flow from Operating Activities (A)	47,908	21,678
Investing activities
Investment in Tangible Assets	(11,871)	(12,120)
Disposal of Tangible Assets	162	584
Investment in Intangible Assets	(2,166)	(2,979)
Disposal of Intangible Assets	1 3	167
Cash Flow used in Investing Activities (B)	(13,862)	(14,348)
Financing Activities
Increase in no current Loan and borrowing	-	45,059
Decrease in no current Loan and borrowing	(67,152)	(7,991)
Net variation in current fiancial Assets and Liability	(9,993)	(2,024)
of which related parties	(1,571)	(2,400)
Cash Flow from Financing Activities ( C)	(77,145)	35,044
Net Cash Flow of the Year (A)+(B)+(C)	(43,100)	42,375

Index	Page
1. AQUAFIL AT GLANCE	4
2. SUSTAINABILITY PATH	11
2.1. The ECO PLEDGE®	16
2.2. ECONYL®	23
3. 2021 OUTLOOK & 1Q2021 RESULTS	35
3.1. 2021 OULOOK	35
3.2. 1Q2021 RESULTS	38
4. ANNEX	46
4.1. DISCLAIMER AND DEFINITIONS	47
4.2. PROJECTS UPDATING	50
4.3. SECTOR DATA	55
4.4. 1Q2021 DETAILS	57
5. CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE	65

Ownership Structure & Governance – Ownership Structure

• A capital structure with 3 type of Shares
• ‒ Ordinary Share
• ‒ Share B: dedicated to Giulio Bonazzi family with the same economic right of ordinary share but with 3 voting right for any share
• ‒ 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

Ownership Structure & Governance – Ownership Structure

• Main Aquafil's shareholders is Aquafin Holding S.p.A., holding of Giulio Bonazzi Family
• ‒ Managers are involved too

Ownership Structure & Governance – Governance

STATUTORY AUDITORS

(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 67

Investors Contact:

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