Aquafil

Investor Presentation • Nov 9, 2023

Aquafil Group [ECNL:IM] - [ECNLF: OTCQX] 9M 2023 Financial Results November 9, 2023

Index

• 1. KEY MESSAGES
• 1. FINANCIAL RESULTS
• 1. OUTLOOK
• 1. APPENDIX

1. Key messages

RECOVERY OF THE MARKET OF FIBERS FOR CARPETS AND POLYMERS IN EMEA

MEASURES TO CONTAIN NET FINANCIAL POSITION AND TO ENHANCE INDUSTRIAL EFFICIENCY AS A STRATEGIC PRIORITY

ECONYL® BRANDED PRODUCTS

ACCOUNTED FOR 49.7% OF REVENUES GENERATED FROM FIBERS

TEMPORARY DECLINE IN MARGINS IN 2023 DUE TO THE HIGH UNIT VALUE OF THE INVENTORIES STOCKED IN 2022 COMPARED TO THE CURRENT MARKET VALUE OF RAW MATERIALS

2. Financial results

2. Financial results - Revenues by components

• Lower volumes of ca 8,8% compared to 9M2022 and ca 4,6% compared to 3Q2022

2. Financial results - Revenues by quantity

EMEA: volumes ca -12,7% vs 9M22 and 0,2% vs 3Q22:

• BCF, NTF and Polymers: lower quantity sold due to slow market demand
• Engineering plastics: ramp up of the project

USA: volumes ca 4,6% vs 9M22 and -14% vs 3Q22:

– BCF and NTF: lower quantity sold

Asia: volumes ca 2,2% vs 9M22 and -0,7% vs 3Q22:

– BCF: 3Q23 in line vs 3Q22

2. Financial results – Revenues breakdown by Product Line and Area

75,9% 74,2% 15,5% 17,4% 8,7% 8,4% 3Q23 3Q22 3Q - Revenues breakdown by Product Line BCF NTF Polymers

9M - Revenues breakdown by Area

3Q - Revenues breakdown by Area

2. Financial results – Revenues: ECONYL® products

• ECONYL® products quantity in line vs 9M22 and 3Q22

9M - ECONYL Revenues on Fiber %

3Q - ECONYL Revenues on Fiber %

2. Financial results - P&L: KPI

		9M			3Q
	2023	2022	Δ%	2023	2022	Δ%
Revenues	442,2	529,9	(16,6)%	131,1	178,9	(26,7)%
EBITDA	37,0	73,2	(49,5)%	5,7	21,7	(73,7)%
% on net Sales	8,4 %	13,8%		4,3%	12,1%
EBIT	(4,4)	32,4	(113,6)%	(8,5)	7,8	(209,0)%
% on net Sales	-1,0%	6,1%		(6,5)%	4,4%
EBT	(14,9)	33,0	(145,2)%	(12,8)	8,8	(245,5)%
% on net Sales	(3,4)%	6,2%		(9,8)%	4,9%
NET RESULT	(17,1)	26,1	(165,5)%	(12,9)	8,5	(251,8)%
% on net Sales	(3,9)%	4,9%		(9,8)%	4,8%

2. Financial results - NFP and NPF/EBITDA

• NFP on 30th September 2023 equal to 262,8 €/mil versus 247,9 €/mil on 31st December 2022
• Ratio NPF/EBITDA LTM at x4,69

157

3. Outlook

In the first nine months of 2023, demand in Asia Pacific and the United States remained in line with the previous year, while EMEA, at least until the end of August, recorded a strong slowdown of the reference markets for all product lines.

In addition, in Europe the price of raw materials showed a swift and sudden decline, reaching its low in August. This effect entailed an important mismatch between the unit values of inventories stocked in 2022 and the market price of raw materials, with a temporary, yet significant impact on the Group's margins.

The fourth quarter that has just begun shows that EMEA volumes of the product lines of fibers for carpets and polymers are increasing compared to 2022. By contrast, the weakness of the product line of fibers for garments is continuing, whereas the trend witnessed in recent months in Asia Pacific and in the United States is confirmed.

Measures to contain the net financial position and to enhance industrial efficiency still represent a strategic priority for the Group, which remains strongly committed to implementing them.

Moreover, considering the temporary margin decrease, the Group started the procedure for requesting credit institutions to temporarily suspend covenant verification.

We would like to remind that on November 21st we will present our outlook for the next twoyear period. We renew our invitation to attend this important event.

12

4. Appendix

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	On April 29, 2021, Consob issued "Call to attention No. 5/21" in which it highlighted that the new "ESMA Guidelines" of March 4, 2021 replaced on May 5, 2021 those of preceding Consob communications. In guideline No. 39 requires that financial statement disclosure includes the following definition of net financial debt: A. Liquidity B. Other liquidity C. Other current financial assets D. Liquidity (A+B+C) E. Current financial debt (including debt instruments but excluding the current portion of non-current financial debt) F. Current portion of non-current financial debt G. Current financial debt (E + F) H. Net current financial debt (G - D) I. Non-current financial debt (excluding current portion and debt instruments) J. Debt instruments K. Trade payables and other non-current payables L. Non-current financial debt (I + J + K) M. Total financial debt (H + L)

Appendix - Sector Data – Caprolactam price evolution

Appendix - Consolidated Income Statement

CONSOLIDATED INCOME STATEMENT	At 30 September	of which	At 30	of which	Third Quarter	of which	Third Quarter	of which
€/000	2023	non-current	September 2022	non-current	2023	non-current	2022	non-current
Revenues	442.229	1	529.905	849	131.112	1	178.896	324
of which related parties	227		39		76	-	13	-
Other Revenues and income	7.550	625	8.492	126	2.603	622	6.079	12
Total and Other and income Revenues Revenues	449.779	626	538.397	975	133.715	623	184.975	336
Raw Material	(230.169)	(415)	(245.437)	(475)	(71.231)	(415)	(87.072)	(181)
Services	(95.987)	(1.263)	(129.905)	(1.094)	(28.123)	(245)	(47.948)	(356)
of which related parties	(388)	-	(342)	-	(124)	-	(112)	-
Personel costs	(94.220)	(2.345)	(96.084)	(1.157)	(31.201)	(1.830)	(31.186)	(346)
Other Operating Costs	(2.718)	(181)	(3.447)	(291)	(954)	(67)	(1.001)	(176)
of which related parties	(52)		(52)		(17)	-	(17)	-
Depreciation and Amorti zation	(35.982)		(35.954)		(11.695)	-	(12.198)	-
Provisions&Write-downs	104		166		(11)	-	(8)	-
(write-downs)/recovery of inancial assets (receivables)	113		(2)		51	-	(28)	-
Capitalization of Internal Construction Costs	4.687		4.667		951	-	2.320	-
EBIT	(4.393)	(3.578)	32.400	(2.042)	(8.499)	(1.933)	7.852	(721)
Investment income/charges	90		(70)		90	-	-	-
of which related parties	90		90		90	-	-	-
Financial income	621		4.580		282	-	1.593	-
Fianancial charges	(11.907)		(6.000)		(4.402)	-	(2.138)	-
of which related parties	(116)		(93)		(29)	-	(29)	-
FX Gains and Losses	698		2.072		(285)	-	1.544	-
Profit Before Taxes	(14.891)	(3.578)	32.983	(2.042)	(12.813)	(1.933)	8.852	(721)
Income Taxes	(2.177)		(6.846)		(119)	-	(389)	-
Net Profit (Including Portion Attr. to Minority )	(17.068)	(3.578)	26.137	(2.042)	(12.932)	(1.933)	8.463	(721)
Net Profit Attributable to Minority Interest	0		0		-	-	-	-
Net Profit Attributable to the Group	(17.068)		26.137		(12.932)	-	8.463	-

Appendix - Consolidated Income Statement– Revenues 9M

Appendix - Consolidated Income Statement– Revenues 9M
9 M		BCF (fiber for carpet)					NTF (fibre for fabrics)				Polymers						TOTAL
€/mln	2023	2022 Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	%23	%22
EMEA	140,6	(31,2) 171,9	(18,2)%	57,8	79,2	(21,3)	(26,9)%	29,8	42,2	(12,3)	(29,2)%	228,3	293,2	(64,9)	(22,1)%	51,6%	55,3%
North America	115,3	(11,5) 126,9	(9,1)%	23,0	24,6	(1,6)	(6,6)%	4,0	2,8	1,2	43,8 %	142,3	154,3	(12,0)	(7,8)%	32,2%	29,1%
Asia e Oceania	66,5	(9,5) 76,0	(12,5)%	3,2	3,0	0,2	6,1 %	0,5	0,8	(0,3)	(40,9)%	70,2	79,8	(9,7)	(12,1)%	15,9%	15,1%
RoW	0,6	0,0 0,6	4,8 %	0,8	2,0	(1,2)	(59,1)%	0,0	0,0	0,0	N.A.	1,4	2,6	(1,2)	(44,6)%	0,3%	0,5%
TOTALE	323,1	375,3 (52,2)	(13,9)%	84,8	108,8	(24,0)	(22,0)%	34,3	45,8	(11,5)	(25,0)%	442,2	529,9	(87,7)	(16,5)%	100,0%	100,0%
%	73,1%	70,8%		19,2%	20,5%			7,8%	8,6%			100,0%	100,0%

9M - % Revenues by Geographical Area

9M - % Revenues by Product Line

Appendix - Consolidated Income Statement – Revenues 3Q

Q3				BCF (fiber for carpet)				NTF (fibre for fabrics)				Polymers						TOTAL
€/mln	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	%23	%22
EMEA	41,6	54,0	(12,4)	(22,9)%	11,6	21,3	(9,7)	(45,7)%	10,0	13,4	(3,4)	(25,2)%	63,2	88,7	(25,5)	(28,7)%	48,2%	49,6%
North America	35,4	50,6	(15,2)	(30,1)%	7,3	8,0	(0,7)	(8,3)%	1,2	1,3	(0,1)	(5,9)%	43,9	59,8	(15,9)	(26,6)%	33,5%	33,5%
Asia e Oceania	22,3	27,9	(5,6)	(20,0)%	1,2	1,2	(0,0)	(0,2)%	0,1	0,3	(0,2)	(62,7)%	23,6	29,4	(5,8)	(19,6)%	18,0%	16,4%
RoW	0,1	0,3	(0,1)	(52,6)%	0,2	0,7	(0,5)	(68,7)%	0,0	0,0	0,0	N.A.	0,3	0,9	(0,6)	(63,9)%	0,3%	0,5%
TOTALE	99,4	132,7	(33,3)	(25,1)%	20,3	31,2	(10,9)	(34,8)%	11,4	15,0	(3,6)	(24,3)%	131,1	178,9	(47,8)	(26,7)%	100,0%	100,0%
%	75,9%	74,2%			15,5%	17,4%			8,7%	8,4%			100,0%	100,0%

3Q - % Revenues by Geographical Area

3Q - % Revenues by Product Line

Appendix - EBITDA and Adjusted Operating Results

RECONCILIATION FROM NET PROFIT TO EBITDA	September	September	Third Quarter	Third Quarter
€/000	2023	2022	2023	2022
Net Profit (Including Portion Attr. to Minority )	(17.068)	26.137	(12.932)	8.463
Income Taxes	2.177	6.846	119	389
Investment income and charges	(90)	70	(90)	-
Amortisation & Depreciation	35.982	35.954	11.695	12.198
Write-downs & Write-backs of intangible and tangible assets	(217)	(164)	(39)	36
Financial items (*)	12.638	2.319	4.987	(116)
No recurring items (**)	3.578	2.042	1.933	721
EBITDA	37.001	73.205	5.673	21.691
Revenue	442.229	529.905	131.112	178.896
EBITDA Margin	8,4%	13,8%	4,3%	12,1%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	September 2023	September 2022	Third Quarter 2023	Third Quarter 2022
EBITDA	37.001	73.205	5.673	21.691
Amortisation & Depreciation	35.982	35.954	11.695	12.198
Write-downs & Write-backs of intangible and tangible assets	(217)	(164)	(39)	36
EBIT Adjusted	1.236	37.415	(5.983)	9.457
Revenue	442.229	529.905	131.112	178.896
EBIT Adjusted Margin	0,3%	7,1%	(4,6%)	5,3%

(*) The financial items include: (i) financial charges and other bank charges of Euro (11.9) million, (ii) cash discounts of Euro (2.0) million, (iii) financial income of Euro 0.6 million, and (iv) exchange gain of Euro 0.7 million.

(**) This includes at the end of September: (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.6) million, (ii) non-recurring charges related to legal advice for Euro (0.3) million, (iii) non-recurring costs relating to the mobility of personnel of two group companies for Euro (1.4) million, (iv) Nonrecurring costs for industrial rationalization activities of BCF (Aquafil UK) in the amount of €(0.9) million, (v) other non-recurring charges for Euro (0.4) million.

Appendix - Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2023	2022
Intangible Assets	20.253	21.596
Goodwill	15.753	15.647
Tangible Assets	242.958	247.469
Financial Assets	788	831
of which related parties	318	318
Investments & Equity metod	1.023	1.018
Other Assets	-	426
of which related parties	-
Deferred Tax Assets	12.193	11.519
Total Non-Current Assets	292.970	298.506
Inventories	196.448	260.808
Trade Receivable	27.844	28.553
of which related parties	240	376
Financial Current Assets	7.048	9.964
of which related parties	-
Current Tax Receivables	837	580
Other Current Assets	16.430	15.862
of which related parties	4.901	247
Cash and Cash Equivalents	121.696	110.682
Asset held for sales	-	-
Total Current Assets	370.302	426.449
Total Current Assets	663.271	724.955

Appendix - Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2023	2022
Share Capital	49.722	49.722
Reserves	108.476	96.528
Group Net Profit for the year	(17.068)	29.151
Group Shareholders Equity	141.131	175.401
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	141.131	175.402
Employee Benefits	4.773	5.192
Non-Current Financial Liabilities	293.967	285.385
of which related parties	3.670	5.262
Provisions for Risks and Charges	1.187	1.975
Deferred Tax Liabilities	9.042	9.237
Other Payables	6.466	8.985
of which related parties	-
Total Non-Current Liabilities	315.434	310.774
Current Financial Liabilities	97.540	83.146
of which related parties	2.599	2.957
Current Tax Payables	1.380	3.630
Trade Payables	84.118	126.840
of which related parties	98	270
Other Liabilities	23.668	25.163
of which related parties	(0)	230
Total Current Liabilities	206.706	238.779
Total Equity and Liabilities	663.271	724.955

Appendix - Net Financial Position

NET FINANCIAL DEBT	At September 30,	At December 31,
€/000	2023	2022
A. Liquidity	121.696	110.682
B. Cash and cash equivalents
C. Other current financial assets	7.048	9.964
D. Liquidity (A + B + C)	128.744	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 2.050)	( 1.333)
F. Current portion of non-current financial debt	( 95.490)	( 81.814)
G. Current financial debt (E + F)	( 97.540)	( 83.146)
H. Net current financial debt (G - D)	31.204	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	( 236.563)	( 215.084)
J. Debt instruments	( 57.404)	( 70.301)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 293.967)	( 285.385)
M. Total financial debt (H + L)	( 262.763)	( 247.885)

Appendix - Consolidated Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At September 30,	At September 30,
€/000	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(17.068)	26.137
of which related parties	(239)	(358)
Income Taxes	2.177	6.846
Investment income and charges	(90)	70
of which related parties	(90)	(90)
Financial income	(621)	(4.580)
Financial charges	11.907	6.000
of which related parties	(116)	93
Exchange (gains)/losses	(698)	(2.072)
(Gain)/Loss on non - current asset Disposals	(216)	(91)
Provisions&Write-downs	(104)	(166)
(write-downs)/recovery of inancial assets (receivables)	(113)	2
Amortisation, depreciation & write-downs	35.982	35.954
Cash Flow from Operating Activities Before Changes in NWC	31.157	68.100
Change in Inventories	64.362	(84.323)
Change in Trade and Other Payables	(42.723)	21.206
of which related parties	(172)	(56)
Change in Trade and Other Receivables	823	(10.675)
of which related parties	136	24
Change in Other Assets/Liabilities	(5.092)	2.259
of which related parties	(4.884)	3.038
Net Interest Expenses	(10.440)	(1.419)
Income Taxes paid	(7.460)	(1.098)
Change in Provisions for Risks and Charges	(1.455)	(1.299)
Cash Flow from Operating Activities (A)	29.172	(7.249)

Appendix - Consolidated Cash Flow Statement (2/2)

CASH FLOW STATEMENT €/000	At September 30, 2023	At September 30, 2022
Investing activities
Investment in Tangible Assets	(22.260)	(24.566)
Disposal of Tangible Assets	420	406
Investment in Intangible Assets	(3.839)	(3.213)
Disposal of Intangible Assets
Investment of Financial Assets	(155)
Dividends	9 0	9 0
Dusoisal of financial assets	0	(160)
Cash Flow used in Investing Activities (B)	(25.743)	(27.444)
Financing Activities
Increase in no current Loan and borrowing	75.000	79.000
Decrease in no current Loan and borrowing	(51.564)	(42.502)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	1.802	(441)
of which related parties	(1.950)	1.130
Net variation non-monetary increase IFRS16	(5.061)	(6.964)
Dividends Distribution	(11.992)	(6.046)
Acquisition of treasury shares	(598)	(4.376)
Cash Flow from Financing Activities ( C)	7.586	18.671
Net Cash Flow of the Year (A)+(B)+(C)	11.014	(16.022)