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Aquafil

Investor Presentation Dec 1, 2022

4252_ip_2022-12-01_f27cf7eb-dced-435a-8050-de33822b7710.pdf

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Investor Presentation [ECNLF:OTCQX] - ECNL:IM]

December 1, 2022

MAGAZINE CHANGE THE WORLD

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

By Matthew Heimer and Erika Fry August19, 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."

Source: Fortune's change World List August, 2019

Aquafil is Market Leader in Nylon

% on 9M22 REVENUES

4

And Market Leader Worldwide

% on 9M22 REVENUES

From Family Business To Global Sustainability Champion

20 Plants, 9 Countries on 3 Continents

Ca. 2,800 Employees

€ 529,9 Million of Revenues for 9M22

€ 73,2 Million EBITDA 9M22

43,5% ECONYL® fiber turnover

Aquafil Group

ITALY Arco (TN)

Aquafil (Headquarter)

Cares (TN) Rovereto (TN) Tessilquattro

USA Cartersville (Georgia) Aquafil USA 1

Phoenix (Arizona) Aquafil Carpet Recycling ACR#1 Aquafil Carpet Collection ACC

Anaheim (California) Aquafil Carpet Collection

Chula Vista (California) Aquafil Carpet Collection

Miramar (California) Aquafil Carpet Collection

Rutherford College (North Carolina) Aquafil O'Mara

UK

Kilbirnie AquafilUK

SLOVENIA

Ljubljana AquafilSLO

Senožeče AquafilSLO Senožeče

Celje AquafilSLO Celje - Teharje

Ajdovščina AquafilSLO Ajdovščina

CROATIA

Oroslavje AquafilCRO

THAILAND

Rayong Aquafil Asia Pacific

JAPAN Tokyo Aquafil Japan

CHINA

Jiaxing Aquafil Jiaxing

CHILE Santiago Aquafil Chile

Aquafil Brand Manifesto - Our Vision

At Aquafil, we design better to do better.

We are conscious innovators. We think as beginners and act as pioneers to provide unique products and services that leverage performance and reduce the impact on a global scale.

We are thoughtful listeners.

We step out of our comfort zone to set new standards through empathy and collaboration, inside and outside.

We are down-to-earth visionaries.

We envision the goal of a sustainable future to achieve it, driven by the responsibility to change the world one choice at a time.

To come full circle and create our story.

Leading the Circular Economy Revolution

- Source: Ellen MacArthur Foundation

Our Main Milestones Towards Circularity from 1990 onwards:

  • Investments to "close the loop" through cutting edge technologies
  • Adoption of a "Life Cycle" approach
  • ECONYL® Regeneration System
  • Healthy Seas Foundation
  • USA Aquafil Carpet Recycling Foundation
  • USA Aquafil Carpet Collection Acquisition

Eco-Design is our next crucial step. Imagine innovative products, created to be fully recyclable at the end of its life.

Company Strenghts

A successful Business Model. Proprietary technology with continuous R&D innovation. Manufacturing and operational excellence focused on high end segments.

Pioneer of Circularity with the ECONYL® Regeneration System, producing sustainable fibers and polymers from nylon 6 waste.

Around 43,5% of fiber turnover.

Glocal. A Global Company with local productions.

ECONYL® Regeneration System

  • Global warming potential reduced up to 90% if compared with traditional oil-based raw material.
  • ECONYL® nylon is 100% coming from waste. No fossil oil used!
  • It has the same quality and performance as standard nylon. Infinitely regenerable!
  • Unique proprietary technology.
  • In the past years, its growth rate has been on average more than 2.5 higher than traditional fibres.

WASTE IN

ECONYL® nylon is made from waste otherwise destined for the landfill

NO WASTE OUT

Our Main 2025 Enviromental Targets

60% Of Revenues Generated By Fibers From ECONYL® Branded Products

35,000 Tons Of Post consumer Waste Collected Annually

Water Consumption Reduced By 30% Compared To 2018

Our path to Sustainability RETHINKING PRODUCTS IN A

Since 2008, we have formalized our commitment in our ECO PLEDGE®, a set of five principles that guide and inspire all the work 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 sustainability in the entire sector.

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 continuous improvement and excellence in every aspect.

ATTENTION TO THE WELL-BEING OF PEOPLE

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

Our Top ESG 2021 Achievements

  • 64% reduction in Scope 1 + Scope 2 emissions in 5 years
  • 90% of waste recovered

• 100% increase in the number of female executives in 2 years

• 92% increase in hours of training delivered vs 2020

  • Approval of a new engagement policy
  • Acquisition of 3 more ISO 50001 and 4 more SA8000 certifications in our Slovenian facilities

Financial Results

9M22 – Key Message

9M22 General Results

Sharply increasing compared to 9M21

  • Revenues +26,4% vs 9M21
  • EBITDA +23% vs 9M21

ECONYL® Branded Products

  • Revenues up by 64,5% vs 9M21
  • 43,5% of revenues generated by fibers

Aquafil Chile incorporated to expand procurement capacity of raw materials for the ECONYL® process.

Benefit company Bluloop S.r.L. Incorporated to sell ECONYL® branded products directly online.

9M22 – Key Message

Revenues EBITDA Net profit NFP
2022 2021 Δ% 2022 2021 Δ% 2022 2021 Δ% 30.09.22 31.12.21 Δ%
9M 529,9 419,3 26,4% 73,2 59,6 22,9% 26,1 14,3 83,3% (231,5) (179,3) -29,1%
% on Revenues 13,8% 14,2% 4,9% 3,4%
3Q 178,9 144,6 23,7% 21,7 20,2 7,2% 8,5 5,3 58,3%
% on Revenues 12,1% 14,0% 4,7% 3,7%
USA

Best macro area
EMEA

Lower demand
Higher to 9M21 thanks to

better sales mix also
thanks to ECONYL®
products increase

Repricing to recover
higher costs of raw
material and energy
Strong increase
driven by

EBIT improvement

Lower financial costs
Higher of 29,1% vs Dec21
NFP/EBITDA LTM
2,49
On 31th
December 2021
2,70
On 30th
September 2022

P&L – KPI

9M 3Q
2022 2021 Δ% 2022 2021 Δ%
Revenues 529,9 419,3 26,4% 178,9 144,6 23,7%
EBITDA % on net Sales 73,2
13,8%
59,6
14,2%
22,9% 21,7
12,1%
20,2
14,0%
7,2%
EBIT 32,4 22,3 45,1% 7,9 8,3 -5,1%
% on net Sales 6,1% 5,3% 4,4% 5,7%
EBT 33,0 18,0 83,6% 8,9 7,0 26,8%
% on net Sales 6,2% 4,3% 4,9% 4,8%
NET RESULT 26,1 14,3 83,3% 8,5 5,3 58,3%
% on net Sales 4,9% 3,4% 4,7% 3,7%

NFP

Increase of NWC mainly driven by inventory

NWC growth driven by increase of inventory value due to:

  • higher unitary cost of raw material
  • increase of raw material quantities

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