Aquafil

Investor Presentation • Aug 30, 2022

Aquafil Group

1H and 2Q 2022 Financial Results

30th August 2022

	Index	Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

	Index	Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

Key Messages

1H 2022 RESULTS SHARPLY INCREASING COMPARED TO 1H 2021

REVENUES +27,8% VS 1H21

EBITDA +31% VS 1H21

REVENUES OF ECONYL® BRANDED PRODUCTS

UP BY 63.8% VS 1H21

42.2% OF REVENUES GENERATED BY FIBERS

THE BOARD OF DIRECTORS APPROVED THE BUY-BACK OF THE THIRD TRANCHE OF 567,000 SHARES AT A MAXIMUM PRICE OF €10.00 EACH

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

	Index	Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

1H2022 Main Results

				1H2022 Main Results
		REVENUES				EBITDA				NET PROFIT				NFP
	2022	2021	Δ %		2022	2021	Δ %		2022	2021	Δ %		30.06.22	31.12.21	Δ %
1H	351,0	274,7	27,8%	1H	51,5	39,3	30,9%	1H	17,7	8,9	98,3%	1H	(202,2)	(179,3)	-12,7%
				% on Revenues	14,7%	14,3%		% on Revenues	0,1	0,0
2Q	179,8	144,1	24,8%	2Q	26,7	21,0	27,0%	2Q	8,6	5,4	57,9%
				% on Revenues	14,8%	14,6%		% on Revenues	0,05	0,04

Revenues – by Components

• Lower volumes of ca 7% compared to 1H2021 and 10% compared to 2Q22
• Volume: lower polymers sales (1H 2021 exceptional demand);
• Price & sales mix: positive impact thanks to better mix (ECONYL® Products increase) and selling price adjustment.

Revenues – Quantity

EMEA: volumes ca -16% vs 1H21 and -24% vs 2Q21:

• BCF: in line with 1H21 and 2Q21;
• NTF: in line with 1H21 and 2Q21;
• Polymers: lower market demand (extraordinary demand in 1H21)

USA: volumes ca +21% vs 1H21 and +29,2% in 2Q21:

• BCF: higher quantity due to increase of BCF fiber for contract and competitor withdrawal
• NTF: in line with 1Q22 ;

Asia: volumes ca -10% vs 1H21 and -2,2% in 2Q21:

– BCF: lower quantity due to lower demand in residential sector and also for China lock down period with some limited impacts on internal market;

Revenues – Breakdown by Product Line and Area

Revenues – ECONYL®

• Strong growth +64% vs 1H22 due to price increase and higher quantities driven by:
• ‒ BCF fiber: higher demand in contract sector
• ‒ NTF: higher demand from fashion brands

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

• ECONYL® has represented an accelerator driver for the Group growth both by strengthening relationship with consolidated customers and the attracting new ones
• ‒ BCF sector historically drove ECONYL® development due to cultural sensitiveness on environmental topics of Aquafil and important carpet producer customers;
  • 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 brand new and different customers (e.g. fashion and luxury brands)

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

P&L – KPI

		1H			2Q
	2022	2021	∆%	2021	2020	∆%
REVENUES	351,0	274,7	27,8%	179,8	144,1	24,8%
EBITDA	51,5	39,3	30,9%	26,7	21,0	27,0%
% on net sales	14,7%	14,3%		14,8%	14,6%
EBIT	24,5	14,1	74,6%	12,1	8,0	-
% on net sales	7,0%	5,1%		6,7%	5,5%
EBT	24,1	11,0	119,6%	12,2	6,3	-
% on net sales	6,9%	4,0%		6,8%	4,4%
NET RESULT	17,7	8,9	98,3%	8,6	5,4	-
% on net sales	5,0%	3,2%		4,8%	3,8%

NFP – NPF/EBITDA

• NFP on 30th June 2022 equal to 202,9 €/mil, higher of ca 13% compared to 31st December 2021
• Ratio NPF/EBITDA LTM at 2,40x

NFP – Increase of NWC mainly driven by inventory

• NWC growth driven by increase of inventory value due to
• ❖ higher unitary cost of raw material and

• ❖ increase of raw material quantities;

• 1. KEY MESSAGES 4
• 1. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

Outlook

The current geographical scenario requires a distinct reading of the evolution of the various geographical areas in which the Group operates.

In EMEA, raw materials and energy costs continue to rise sharply. The Aquafil Group remains committed to implementing all price adjustment and cost containment measures that may allow unit margins to be maintained. The current cost level is already yielding a slowdown of end demand in all the various product areas.

In the other two geographical areas, energy costs are not following the same trend as in Europe. In Asia Oceania, the market is showing sound demand levels with a partial recovery of the residential market and an excellent performance by the Japanese market.

In the United States, demand continues to rise sharply, following on the increase in the first half of the year.

In this scenario, the Group expects less brilliant results in the second half of the year than in the first. In any event, profitability for full-year 2022 is expected to be higher than in 2021. All this is due to the competitive advantage that the market attributes to ECONYL® branded products, as well as to the different geographical distribution of the Group's markets.

• 1. KEY MESSAGES 4
• 1. FINANCIAL RESULTS 6

3. OUTLOOK 16

4. APPENDIX 18

	Index	Page
1.	KEY MESSAGES	4
2.	FINANCIAL RESULTS	6
3.	OUTLOOK	16
4.	APPENDIX	18

Appendix - 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.

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.

Appendix - 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)

Appendix - Sector Data – Caprolactam price evolution

Appendix - Consolidate Income Statements

CONSOLIDATED INCOME STATEMENT	Half Year	of wich non	Half Year	of wich non	Second Quarter	of wich non	Second Quarter	of wich non
€/000	2022	current	2021	current	2022	current	2021	current
Revenue	351.009	525	274.700	-	179.849	229	144.060	-
of which related parties	26		27		13	-	14	-
Other Revenue	2.413	114	2.685	443	1.157	23	1.859	439
Total Revenue and Other Revenue	353.422	639	277.385	443	181.006	252	145.919	439
Raw Material	(158.365)	(294)	(135.494)	-	(79.798)	(203)	(72.729)	-
Services	(81.957)	(738)	(50.100)	(305)	(43.097)	(384)	(25.785)	(232)
of which related parties	(230)		(212)		296	-	(103)	-
Personel	(64.898)	(811)	(55.805)	(582)	(33.511)	(464)	(28.490)	(471)
Other Operating Costs	(2.446)	(115)	(1.640)	(61)	(1.212)	(60)	(845)	(53)
of which related parties	(35)		(35)		(17)	-	(17)	-
Depreciation and Amorti zation	(23.756)		(23.312)		(12.838)	-	(11.984)	-
Doubtful debt prevision	174		(128)		191	-	(19)	-
Provisions for risks and charges	26		77		1	-	70	-
Capitalization of Internal Construction Costs	2.347		3.077		1.343	-	1.852	-
EBIT	24.548	(1.321)	14.060	(504)	12.085	(861)	7.990	(318)
Income (loss) from Investments	(70)		0		(70)	-	-	-
of which related parties	90				90	-	-	-
Other Financial Income	2.987		491		1.293	-	254	-
Interest Expenses	(3.862)		(3.822)		(1.991)	-	(1.790)	-
of which related parties	(64)		(79)		(33)	-	(33)	-
FX Gains and Losses	528		260		912	-	(174)	-
Profit Before Taxes	24.131	(1.321)	10.989	(504)	12.229	(861)	6.280	(318)
Income Taxes	(6.457)		(2.078)		(3.675)	-	(863)	-
Net Profit (Including Portion Attr. to Minority )	17.674	(1.321)	8.911	(504)	8.554	(861)	5.417	(318)
Net Profit Attributable to Minority Interest	0		0		-	-	-	-
Net Profit Attributable to the Group	17.674		8.911		8.554	-	5.417	-

Appendix - Consolidate Income Statements – Revenues 1H

1H	BCF (fiber for carpet)						NTF (fiber for fabric)					Polymers					Total
€/mil	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	% 22	% 21
EMEA	117,8	90,6	27,2	30,0 %	57,9	41,6	16,2	39,0 %	28,8	35,1	(6,3)	(18,0)%	204,5	167,3	37,1	22,2 %	58,3 %	60,9 %
North America	76,3	41,0	35,3	86,2 %	16,6	13,9	2,8	20,0 %	1,5	3,3	(1,8)	(54,6)%	94,4	58,1	36,3	62,5 %	26,9 %	21,2 %
Asia e Oceania	48,1	45,8	2,3	5,1 %	1,8	2,1	(0,3)	(15,9)%	0,5	0,4	0,2	0,0 %	50,5	48,3	2,2	4,5 %	14,4 %	17,6 %
RoW	0,3	0,2	0,1	74,3 %	1,3	0,8	0,6	73,5 %	0,0	0,0	0,0	0,0 %	1,6	0,9	0,7	73,7 %	0,5 %	0,3 %
Total	242,6	177,6	65,0	36,6 %	77,6	58,4	19,2	33,0 %	30,8	38,7	(7,9)	(20,5)%	351,0	274,7	76,3	27,8 %	100,0 %	100,0 %
% ToT	69,1%	64,6%			22,1%	21,3%			8,8%	14,1%			100,0%	100,0%

Appendix - Consolidate Income Statements – Revenues 2Q

2Q			BCF (fiber for carpet)				NTF (fiber for fabric)					Polymers						Total
€/mil	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	2022	2021	Δ	Δ%	% 22	% 21
EMEA	58,5	47,2	11,3	23,8 %	29,4	20,3	9,1	45,0 %	14,3	22,6	(8,3)	(36,8)%	102,2	90,1	12,1	13,4 %	56,8 %	62,6 %
North America	42,4	21,7	20,7	95,5 %	9,3	6,6	2,6	39,4 %	1,2	2,1	(0,8)	(40,1)%	52,9	30,4	22,5	73,9 %	29,4 %	21,1 %
Asia e Oceania	22,9	21,1	1,8	8,6 %	0,8	1,6	(0,8)	(48,1)%	0,1	0,2	(0,1)	(52,0)%	23,9	23,0	0,9	3,9 %	13,3 %	15,9 %
RoW	0,1	0,1	0,0	0,0 %	0,7	0,4	0,3	0,0 %	(0,0)	0,0	(0,0)	0,0 %	0,9	0,5	0,3	62,9 %	0,5 %	0,4 %
Total	123,9	90,1	33,8	37,5 %	40,2	29,0	11,3	39,0 %	15,7	25,0	(9,3)	(37,2)%	179,8	144,1	35,8	24,8 %	100,0 %	100,0 %
% ToT	68,9%	62,6%			22,4%	20,1%			8,7%	17,3%			100,0%	100,0%

Appendix - Consolidate Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	Half Year	Half Year	Second	Second Quarter
	2022	2021	Quarter 2022	2021
Net Profit (Including Portion Attr. to Minority )	17.674	8.911	8.554	5.417
Income Taxes	6.457	2.078	3.675	863
Investment income and charges	70		70	-
Amortisation & Depreciation	23.756	23.312	12.838	11.984
Write-downs & Write-backs of intangible and tangible assets	(200)	51	(191)	(51)
Financial items (*)	2.435	4.485	893	2.483
No recurring items (**)	1.321	504	861	318
EBITDA	51.513	39.341	26.699	21.014
Revenue	351.009	274.700	179.849	144.060
EBITDA Margin	14,7%	14,3%	14,8%	14,6%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	Half Year 2022	Half Year 2021	Second Quarter 2022	Second Quarter 2021
EBITDA	51.513	39.341	26.699	21.014
Amortisation & Depreciation	23.756	23.312	12.838	11.984
Write-downs & Write-backs of intangible and tangible assets	(200)	51	(191)	(51)
EBIT Adjusted	27.957	15.977	14.053	9.080
Revenue	351.009	274.700	179.849	144.060
EBIT Adjusted Margin	8,0%	5,8%	7,8%	6,3%

(*) The financial items include: (i) financial income of Euro 3.0 million (ii) financial charges and other bank charges of Euro 3.9 million, (iii) cash discounts of Euro 2.1 million, and (iv) exchange gains of Euro 0.5 million.

(**) This includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.1) million, (ii) non-recurring charges referring to Aquafil Carpet Collection and ACR2 for Euro (1) (deducted non-recurring revenues for euro (0.6) million (iii) other non-recurring of Euro (0.2) million.

Appendix - Consolidate Balance Sheet(1)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2022	2021
Intangible Assets	22.118	23.551
Goodwill	16.067	14.735
Tangible Assets	247.878	240.489
Financial Assets	738	710
of which related parties	370	318
Investments & Equity metod	1.018	1.018
Other Assets	526	626
Deferred Tax Assets	13.533	12.269
Total Non-Current Assets	301.878	293.398
Inventories	237.890	177.243
Trade Receivable	41.416	31.233
of which related parties	38	71
Financial Current Assets	4.216	860
Current Tax Receivables	634	423
Other Current Assets	12.703	12.853
of which related parties	0	3.152
Cash and Cash Equivalents	136.941	152.656
Asset held for sales	0	0
Total Current Assets	433.800	375.268
Total Current Assets	735.678	668.666

Appendix - Consolidate Balance Sheet(2)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2022	2021
Share Capital	49.722	49.722
Reserves	106.271	91.708
Group Net Profit for the year	17.674	10.670
Group Shareholders Equity	173.668	152.101
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	173.669	152.102
Employee Benefits	5.448	5.910
Non-Current Financial Liabilities	262.449	263.421
of which related parties	6.935	6.359
Provisions for Risks and Charges	1.492	1.929
Deferred Tax Liabilities	12.666	11.158
Other Payables	9.769	10.813
Total Non-Current Liabilities	291.824	293.230
Current Financial Liabilities	80.880	69.438
of which related parties	2.790	2.240
Current Tax Payables	3.164	1.721
Trade Payables	157.687	126.566
of which related parties	249	352
Other Liabilities	28.455	25.608
of which related parties	241	230
Total Current Liabilities	270.186	223.334
Total Equity and Liabilities	735.678	668.666

Appendix - Net Financial Position

NET FINANCIAL DEBT		At June 30,	At December 31,
€/000		2022	2021
A. Liquidity		136.941	152.656
B. Cash and cash equivalents
C. Other current financial assets		4.216	860
D. Liquidity (A + B + C)		141.157	153.516
E. Current financial debt (including debt instruments but excluding the current portion of
non-current financial debt)	-	3.602 -	203
F. Current portion of non-current financial debt	-	77.279 -	69.236
G. Current financial debt (E + F)	-	80.880 -	69.438
H. Net current financial debt (G - D)		60.276	84.078
I. Non-current financial debt (excluding current portion and debt instruments)	-	184.979 -	180.185
J. Debt instruments	-	77.470 -	83.210
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	-	262.449 -	263.396
M. Total financial debt (H + L)	-	202.173 -	179.318

Appendix - Consolidated Cash Flow Statement (1)

At June 30,
2022	At June 30, 2021
17.674	8.911
(213)	(299)
6.457	2.078
70	-
(90)
(2.987)	(491)
0	0
3.862	3.822
64	(79)
(528)	(260)
(74)	(77)
(174)	128
(26)	(77)
23.757	23.312
48.030	37.346
(60.647)	(3.444)
31.120	28.041
(103)	(67)
(10.157)	(8.892)
33	37
2.971	811
3.163	(462)
(875)	(3.331)
896	-
(1.317)	(464)
10.021	50.067

Appendix - Consolidated Cash Flow Statement (2)

CASH FLOW STATEMENT	At June 30,
€/000	2022	At June 30, 2021
Investing activities
Investment in Tangible Assets	-15.889	-11.871
Disposal of Tangible Assets	1.077	162
Investment in Intangible Assets	-1.316	-2.166
Disposal of Intangible Assets		13
Investment of Financial Assets	(52)
Dividends	9 1
Disposal of Financial Assets	-160
Cash Flow used in Investing Activities (B)	-16.249	-13.862
Financing Activities
Increase in no current Loan and borrowing	31.000	0
Decrease in no current Loan and borrowing	-25.338	-67.152
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	1.427	-9.993
of which related parties	1.126	-1.571
Net variation non-monetary increase IFRS16	-6.246	-2.159
Dividends Distribution	-6.045	0
Acquisition of treasury shares	(4.285)
Cash Flow from Financing Activities ( C)	-9.487	-79.304
Net Cash Flow of the Year (A)+(B)+(C)	(15.715)	(43.100)