Aquafil — Investor Presentation 2021

Sep 1, 2021

Aquafil Group

1H2021 Financial Results

1 st September 2021

	Index	Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

	Index	Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

1H2021 – Consistent steps on circularity and results improvements

CONSISTENT DELIVERY OF OUR PROMISES

PAST ACTIONS AND ON-GOING FOCUS ENSURED TO CONSISTENTLY IMPROVE RESULTS

IMPORTANT STEPS TO BROADEN GEOGRAPHIES E.G. JAPAN

STRATEGIC PATH TO "CIRCULARITY" FURTHER IMPLEMENTED THROUGH TOP MANAGEMENT NEW REMUNERATION PLAN AND ECONYL® E-PLATFORM FOR FINAL CONSUMER

DELIVERY WILL GO FURTHER WITHOUT UNCERTAINTIES

PROFITABILITY AND NFP IMPROVEMENT MAIN 2021 FINANCIAL TARGETS

IMPLEMENTING NEW ACTIVITIES TO ACCELLERATE GROWTH AND BENEFIT OF MARKET TRENDS

READY TO STRENGTHEN OUR CIRCULAR BUSINESS MODEL THROUGH SELECTIVE ACTIONS

	Index	Page	4 6
1.	KEY MESSAGES
2.	1H2021 RESULTS
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	33

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 – Components (1) – Polymers drove EMEA strong volumes

Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on 1H2021 trend

• 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)
  • BCF: consistent enhancement of "residential" and "automotive", in 2Q "contract" recovery improved
  • NTF: strong push from ECONYL® products
  • Polymers: the growth driver of the region, having benefitted from an outstanding market demand

Revenues – Components (1) – NTF better than BCF in North America

Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on 1H2021 trend

• 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)
  • BCF: "automotive" recovery stronger than "contract" one
  • NTF: strong demand in all final application sectors, "home" in particular

(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

Revenues – Components(1) – Strong year start

Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on 1H2021 trend

• 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

Revenues – Components(1) – "Average selling price"

• Group "average selling price" of a reporting period is the result of "sales mix evolution" and "selling price" agreed with customers
• "Sales mix evolution"
  • ‒ Among 3 Group product lines: BCF, NTF and Polymers
  • ‒ Inside each product lines, considering product typologies
    • o E.g., BCF: contract, automotive, residential, …
    • o E.g., NTF: textured, warp….
• "Selling price" Group contracts could be divided in 2 macro categories according to their definition mechanism:
  • ‒ "formula based" selling price contracts and
  • ‒ "free and spot/market negotiation" selling price contracts

Revenues – Components(1) – "Average selling price" – Illustrative example

• "Formula based" contracts foresee periodical adjustments to reflect caprolactam (CPL) price variation and cover the majority of BCF and NTF revenues
  • ‒ most adjustments are implemented on quarterly bases considering the price of CPL of the previous quarter
    • o E.g., the amount of 3Q202Y CPL price adjustment is the difference between 2Q202Y and 1Q202Y CPL prices
• "Free and spot/market negotiation" contracts do not foresee automatic adjustment of CPL price variation but follow the market trend and cover the majority of Polymers revenues
• Beside an illustrative example for pure explanation purpose

PRODUCT "A" FORMULA BASED CONTRACT - ILLUSTRATIVE EXAMPLE €/k
	Initial Selling Price	CPL Value from market	CPL variation between Quarter	Quarterly Selling Price
Q4		0.8
Q1	5.0	1.0		5.0
Q2	5.0	0.8	0.2	5.2
Q3	5.2	1.8	-0.2	5.0
Q4	5.0	0.8	1.0	6.0

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

Revenues – ECONYL® – BCF the support and NTF the accelerator

• ECONYL® has been an acceleration growth driver for the Group through both the strengthening of relationship with consolidated customers and the attraction of new ones
  • ‒ BCF sector historically drove ECONYL® development due to the earlier common cultural sensitiveness to environmental topics of both Aquafil and some important carpet producer clients
    • o ECONYL® allowed to protect and even increase market share, especially on high-end products
  • ‒ Later on in NTF sector, both ECONYL® application developments and an increasing awareness to a "circularity vision" allowed Group to attract completely new and different clients (e.g. fashion and luxury brands)

Example of BCF product: a tiles Example of NTF product: a fashion backpack

EBITDA – Even in line with 1H2019

• € 39.3mcompared to € 39.1 of 1H2019

• Positive impact ofstrong volumesincreasedriven by Polymers
• Consolidation of 2019 savings plan and ofsome of COVID-19 actions
• 1H2021 impacted by the slow recovery of "contract BCF and still not fully benefitted of pass-through on "selling price" ofraw material prince increase

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: € 0.5mversus € 2.7mfor 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

242

• NPF/EBITDA LTMat 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 atJune 2021

Data in € million

400

(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, almostin 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.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

Group development – Development in Japan

• In February important development steps were taken to expand Group presence in Japan
  • At BCF product line level: establishment of Aquafil Japan Co., Ltd., based in Tokyo, 100% owned by Aquafil S.p.A.: the subsidiary will transform and market polymers and synthetic fibers on the Japanese market
  • At Group level: work to create strong partnership with important local partners to expand the circular nylon business under the ECONYL® brand
• BCF Group reference market in Japan is estimated in around 18.000ton (equal to € 80-90m) (1) and is characterised by both some important historical features and more recent trends
  • ‒ Historical features
    • o Demand of high quality products (e.g., tiles and mats) and high standard service
    • o Distributors play a crucial role in market development,
      • with a 3-year collection rhythm

Strong attention for high quality and service is perfectly in line

with Aquafil proposition

Example of high-end tiles

Group development – 12 February 2021 – BCF in Japan

• ‒ More recent trends
  • o Strong cultural sensitiveness to environmental and sustainability topics
    • extremely positive recognition for ECONYL®
  • o Some signs of a primary competitor withdrawal
• Group is focusing its activities to built relationship with important carpet manufactures and distributors through
  • ‒ Establishment of a local organisational and commercial structure
  • ‒ Partnership with local manufacturer with reprocessing yarn facilities
  • ‒ Creation of a combined global team which can offer Group best practices
    • o Technological and production support from Chinese operations
    • o Design and marketing advocacy from headquarter carpet centre
• In this development phase, Group objective is to increase its reputation and visibility in the market and therefore enter in distributors 2022-2024 collection

Index		Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

Aquafil sustainability path – 2 important steps in 2020

• In 2020 Aquafil undertook two importantstepsin its sustainability path
  • ‒ Reflect in Group Corporate Governance sustainability DNA
    • o Expansion and integration of the activities of the "Control and Risks" Committee entrusting it with sustainability issues: the committee became "Control, Risks and Sustainability Committee"
  • ‒ Alignment ofGroup sustainability milestones – The ECO PLEDGE ® – toGRI's

Aquafil sustainability path – 2 further steps in 1H2021

• Introduction ofsustainability KPI in the newremuneration policy (1)
  • Senior Executives remuneration is structured to focus management on company results and value creation
  • Itis composed of a fixed part, a shortterm-term variable component and some fringe benefits
    • o Short term variable component includes as reference parameters the NFP/EBITDA ratio and moreover, for the firsttime, sustainability KPI
• ECONYL® digital platform launch
  • 360°information source about sustainability and circularity to strengthen brand and consumer knowledge
  • a range of global brand products for final consumer from apparel to shoes and bags which can be filtered by their sustainability values

(1) For further details see please 2020 Remuneration Policy and Report available on Group web site

Index		Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

2021 Outlook – Trading updating – Acceleration in summer

• Momentum improved in summer, even if data are less easy to assess compared to the past
  • ‒ In term of Group performance
    • o EMEA: polymers still best in class, "contract" BCF recovery going on
    • o North America: "contract" BCF recovery confirmed, NTF strong performance going on
    • o Asia Pacific: Oceania "residential" BCF weak condition recorded in last part of 2Q lasted over time
  • ‒ In term Group related market
    • o CPL price start to decrease, still inflationary trends on other production & accessories costs

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

(1) In a solar-fiscal year, due to summer and December holidays, 2 nd Half on average generates slightly less sales compared to 1stHalf.

Index		Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX	34

Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6

• 1. GROUP DEVELOPMENTS 24
• 1. SUSTAINABILITY PATH
• 1. OUTLOOK 31
• 1. APPENDIX DISCLAIMER AND DEFINITIONS 35

28

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 formore than 95% ofthe 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.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX – SECTOR DATA	38

Sector Data – Caprolactam price evolution

	Index	Page
1.	KEY MESSAGES	4
2.	1H2021 RESULTS	6
3.	GROUP DEVELOPMENTS	24
4.	SUSTAINABILITY PATH	28
5.	OUTLOOK	31
6.	APPENDIX – GROUP DATA	40

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	82.4	90.6	8.2	10.0%	37.4	41.6	4.2	11.3%	13.5	35.1	21.6	160.4%	133.3	167.3	34.1	25.6%
North America	41.9	4 1	(1.0)	(2.3)%	10.4	13.9	3.4	32.8%	3.3	3.3	(0.0)	(0.4)%	55.7	58.1	2.4	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	At June 30 2021	At December 31 2020
€/000
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
BORROWINGS - 30 June 2021	ISSUE DATE	CURRENCY	COUPON ( 1 )	MATURITY		AMOUT		COVENANTS ( 2 )
					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 Net Debt / EBITDA < 4,5x as of 31.12.2020
Private Placement C	May 2019	EUR	2.87%	May 2029	4 0	4 0	0	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

150

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)

400

Consolidated Cash Flow Statement

CASH FLOW STATEMENT	At June 30 2021	At June 30 2020
€/000 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