Aquafil

Investor Presentation • Oct 10, 2023

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] Italian Excellences 2023 by Intesa Sanpaolo

Paris, October 11, 2023

Aquafil is Market Leader in Nylon

% on 1H 2023 REVENUES

And Market Leader Worldwide

% on 1H 2023 REVENUES

From Family Business To Global Sustainability Champion

20 Plants, 9 Countries on 3 Continents

Ca. 2,800 Employees

€ 311,1 Million of Revenues 1H23

€ 31,3 Million EBITDA 1H23

47,8% ECONYL® fiber turnover

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 establishment
• 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 Strengths

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.

Approx. 48% 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 ESG Targets

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

35,000 Tons Of Post consumer Waste Collected Annually

D&I policy to assure gender equality in recruiting and career development

Monitor Group's key suppliers through audits and/or due diligence (in line with the European Supply Chain Act)

Join the SBTi initiative and set GHG reduction target

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.

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.

Our Top ESG Achievements

• 16% reduction in Scope 1 + Scope 2 emissions vs 2021
• 100% of electricity coming from renewable resources
• 23% reduction in water consumption vs 2021
• 90% of waste recovered (through recycling and energy recovery)
• 1st plant-based nylon demo plant

• 18.5% increase in the number of female managers vs 2021
• 2.2x increase in hours of environmental training delivered vs 2021
• 2x welfare budget vs 2021
• Approval of Global Parental Leave Policy
• Drafting of Human Rights Policy

• Adhesion to UN Global Compact
• New remuneration policy for the Top Management
• Creation of the ESG Committee by the Board of Director

Financial Results

1H23 – Key Message

1H23 General Results

• Revenues 311,1 €/mil (-11,4% vs 1H 22)
• EBITDA 31,3 €/mil (-39,2% vs 1H 22)

ECONYL® Branded Products ¹

• Revenues up by 2,4% vs 1H 22
• 47,8% of revenues generated by fibers

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

VOLUMES SOLD MAINTAINED IN THE USA AND ASIA

SLOWDOWN IN EMEA OF THE FIBERS MARKET

ACHIEVEMENT OF PRODUCTION TARGETS OF THE ENGINEERING PLASTICS PROJECT BY YEAR-END

1H23 – Main Result

Revenues

Breakdown by Product Line

Revenues

ECONYL® regenerated nylon

+2,4% vs 1H 22

P&L – KPI

		1H			2Q
	2023	2022	Δ%	2023	2022	Δ%
Revenues	311,1	351,0	(11,4)%	144,3	179,8	(19,8)%
EBITDA	31,3	51,5	(39,2)%	9,8	26,7	(63,5)%
% on net Sales	10,1 %	14,7%		6,8%	14,8%
EBIT	4,1	24,5	(83,3)%	(3,9)	12,1	(132,1)%
% on net Sales	1,3%	7,0%		(2,7)%	6,7%
EBT	(2,1)	24,1	(108,6)%	(6,7)	12,2	(154,9)%
% on net Sales	(0,7)%	6,9%		(4,7)%	6,8%
NET RESULT	(4,1)	17,7	(123,4)%	(7,4)	8,6	(186,9)%
% on net Sales	(1,3)%	5,0%		(5,1)%	4,8%

NFP

NFP on EBITDA

• NFP on 30th June 2023 equal to (250,7) €/mil
• Ratio NFP/EBITDA LTM at x3,48

Chair (1) (3) Corporate Governance

• (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) Member and President of Audit, Risk and Sustainability Committee;
• (3) Member of Audit, Risk and Sustainability Committee;
• (4) Member and President of Appointment and Remuneration Committee;
• (5) Member of Appointment and Remuneration Committee;

Diversity: 44,4% women

Independent Directors: 44,4%

Chiara Mio

Franco Rossi Director

Director

CEO

Stefano Loro Director

Francesco Bonazzi Director

Francesco Profumo Director (1) (3) (4)

Patrizia Riva

Ilaria Maria Dalla Riva Director (1) (5)

Ownership Structure

A capital structure with 2 type of Shares:

• a) Share A: ordinary share;
• b) Share B: dedicated to Giulio Bonazzi family with the same economic right of ordinary share but with 3 voting right for any share;

Definition

«FIRST CHOICE REVENUES»

"First choice revenues" are revenues generated by the sale of fiber 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". Based on historical 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 Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	Half year	of wich	Half year	of wich	Second	of wich	Second	of wich
€/000	2023	non-current	2022	non-current	Quarter 2023	non-current	Quarter 2022	non-current
Revenues	311.117	-	351.009	525	144.297	-	179.849	229
of which related parties	151	-	26		76	-	13	-
Other Revenues and income	4.947	3	2.413	114	2.230	1	1.157	23
Total Revenues and Other Revenues and income	316.064	3	353.422	639	146.527	1	181.006	251
Raw Material	(158.938)	-	(158.365)	(294)	(76.754)	-	(79.798)	(204)
Services	(67.864)	(1.018)	(81.957)	(738)	(31.622)	(215)	(43.097)	(384)
of which related parties	(264)	-	(230)	-	(139)	-	296	-
Personel costs	(63.019)	(515)	(64.898)	(811)	(30.985)	(197)	(33.511)	(464)
Other Operating Costs	(1.764)	(114)	(2.446)	(115)	(901)	(111)	(1.212)	(60)
of which related parties	(35)	-	(35)		(17)	-	(17)	-
Depreciation and Amorti zation	(24.287)	-	(23.756)		(12.458)	-	(12.838)	-
Provisions&Write-downs	115	-	174		28	-	191	-
(write-downs)/recovery of inancial assets (receivables)	62	-	26		0	-	1	-
Capitalization of Internal Construction Costs	3.736	-	2.347		2.286	-	1.343	-
EBIT	4.106	(1.645)	24.548	(1.321)	(3.880)	(522)	12.085	(861)
Investment income/charges	-	-	(70)		-	-	(70)	-
of which related parties	-	-	90		-	-	90	-
Financial income	339		2.987		224	-	1.293	-
Fianancial charges	(7.505)	-	(3.862)		(4.225)	-	(1.991)	-
of which related parties	(87)	-	(64)		(42)	-	(33)	-
FX Gains and Losses	983	-	528		1.159	-	912	-
Profit Before Taxes	(2.078)	(1.645)	24.131	(1.321)	(6.721)	(522)	12.229	(861)
Income Taxes	(2.058)	-	(6.457)		(706)	-	(3.675)	-
Net Profit (Including Portion Attr. to Minority )	(4.136)	(1.645)	17.674	(1.321)	(7.427)	(522)	8.554	(861)
Net Profit Attributable to Minority Interest	0		0		-	-	-	-
Net Profit Attributable to the Group	(4.136)		17.674		(7.427)	-	8.554	-

Appendix

Consolidated Income Statements – Revenues 1H 2023

1H				BCF (fiber for carpet)				NTF (fiber for fabric)				Polymers						TOTAL
€/mil	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	2023	2022	Δ	Δ%	%23	%22
EMEA	99,0	117,8	(18,9)	(16,0)%	46,3	57,9	(11,6)	(20,0)%	19,8	28,8	(9,0)	(31,2)%	165,1	204,5	(39,4)	(19,3)%	53,1%	58,3%
North America	80,0	76,3	3,7	4,8 %	15,6	16,6	(1,0)	(5,9)%	2,8	1,5	1,3	86,6 %	98,4	94,4	4,0	4,2 %	31,6%	26,9%
Asia e Oceania	44,2	48,1	(3,9)	(8,2)%	2,0	1,8	0,2	10,3 %	0,4	0,5	(0,2)	(28,5)%	46,6	50,5	(3,9)	(7,8)%	15,0%	14,4%
RoW	0,5	0,3	0,2	58,8 %	0,6	1,3	(0,7)	(54,4)%	0,0	0,0	(0,0)	N.A.	1,1	1,6	(0,5)	(33,5)%	0,3%	0,5%
TOTAL	223,6	242,6	(19,0)	(7,8)%	64,5	77,6	(13,1)	(16,9)%	23,0	30,8	(7,8)	(25,4)%	311,1	351,0	(39,9)	(11,4)%	100,0%	100,0%
% Tot	71,9%	69,1%			20,7%	22,1%			7,4%	8,8%			100,0%	100,0%

Appendix

Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	Half year	Half year	Second	Second
€/000	2023	2022	Quarter 2023	Quarter 2022
Net Profit (Including Portion Attr. to Minority )	(4.136)	17.674	(7.427)	8.554
Income Taxes	2.058	6.457	706	3.675
Investment income and charges	0	70	0	70
Amortisation & Depreciation	24.287	23.756	12.458	12.838
Write-downs & Write-backs of intangible and tangible assets	(178)	(200)	(28)	(191)
Financial items (*)	7.651	2.435	3.524	893
No recurring items (**)	1.645	1.321	522	861
EBITDA	31.327	51.513	9.755	26.699
Revenue	311.117	351.009	144.297	179.849
EBITDA Margin	10,1%	14,7%	6,8%	14,8%
RECONCILIATION FROM EBITDA TO	Half year	Half year	Second	Second
EBIT ADJUSTED €/000	2023	2022	Quarter 2023	Quarter 2022
EBITDA	31.327	51.513	9.755	26.699
Amortisation & Depreciation	24.287	23.756	12.458	12.838
Write-downs & Write-backs of intangible and tangible assets	(178)	(200)	(28)	(191)

(*) The financial items include: (i) financial charges and other bank charges of Euro (7.5) million, (ii) cash discounts of Euro (1.5) million, (iii) financial income of Euro 0.3 million, and (iv) exchange gain of Euro 1 million.

EBIT Adjusted 7.218 27.956 (2.675) 14.053 Revenue 311.117 351.009 144.297 179.849 EBIT Adjusted Margin 2,3% 8,0% (1,9%) 7,8%

(**) This includes at the end of June: (i) (0.6) million related to a non-recurring event in the USA, (ii) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.4) million, (iii) non-recurring charges related to legal advice for Euro (0.3) million, (iv) non-recurring costs relating to the mobility of personnel of two group companies for Euro (0.2) million, (v) other non-recurring charges for Euro (0.2) million.

Appendix Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2023	2022
Intangible Assets	20.827	21.596
Goodwill	15.359	15.647
Tangible Assets	243.825	247.469
Financial Assets	798	831
of which related parties	318	318
Investments & Equity metod	1.018	1.018
Other Assets	304	426
	-	-
Deferred Tax Assets	11.326	11.519
Total Non-Current Assets	293.457	298.506
Inventories	217.965	260.808
Trade Receivable	27.150	28.553
of which related parties	163	376
Financial Current Assets	6.481	9.964
Current Tax Receivables	642	580
Other Current Assets	16.130	15.862
of which related parties	3.744	247
Cash and Cash Equivalents	111.001	110.682
Asset held for sales	-	-
Total Current Assets	379.368	426.449
Total Current Assets	672.826	724.955

Appendix Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At June 30,	At December 31,
€/000	2023	2022
Share Capital	49.722	49.722
Reserves	103.620	96.528
Group Net Profit for the year	(4.136)	29.151
Group Shareholders Equity	149.207	175.401
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	149.208	175.402
Employee Benefits	4.866	5.192
Non-Current Financial Liabilities	275.378	285.385
of which related parties	4.350	5.262
Provisions for Risks and Charges	1.226	1.975
Deferred Tax Liabilities	9.232	9.237
Other Payables	7.303	8.985
Total Non-Current Liabilities	298.005	310.774
Current Financial Liabilities	92.756	83.146
of which related parties	2.706	2.957
Current Tax Payables	2.570	3.630
Trade Payables	105.035	126.840
of which related parties	350	270
Other Liabilities	25.251	25.163
of which related parties	-	230
Total Current Liabilities	225.613	238.779
Total Equity and Liabilities	672.826	724.955

NET FINANCIAL DEBT	At June 30,	At December 31,
€/000	2023	2022
A. Liquidity	111.001	110.682
B. Cash and cash equivalents
C. Other current financial assets	6.481	9.964
D. Liquidity (A + B + C)	117.482	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 1.864)	( 1.333)
F. Current portion of non-current financial debt	( 90.892)	( 81.814)
G. Current financial debt (E + F)	( 92.756)	( 83.146)
H. Net current financial debt (G - D)	24.726	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	( 210.818)	( 215.084)
J. Debt instruments	( 64.560)	( 70.301)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 275.378)	( 285.385)
M. Total financial debt (H + L)	( 250.652)	( 247.885)

Cash Flow Statement (1/2)

CASH FLOW STATEMENT €/000	At June 30,	At June 30,
	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(4.136)	17.674
of which related parties	(234)	(213)
Income Taxes	2.058	6.457
Investment income and charges	-	70
of which related parties	-	(90)
Financial income	(339)	(2.987)
Financial charges	7.505	3.862
of which related parties	87	64
Exchange (gains)/losses	(983)	(528)
(Gain)/Loss on non - current asset Disposals	(172)	(74)
Provisions&Write-downs	(115)	(174)
(write-downs)/recovery of inancial assets (receivables)	(62)	(26)
Amortisation, depreciation & write-downs	24.287	23.757
Cash Flow from Operating Activities Before Changes in NWC	28.043	48.030
Change in Inventories	42.846	(60.647)
Change in Trade and Other Payables	(21.805)	31.120
of which related parties	80	(103)
Change in Trade and Other Receivables	1.466	(10.157)
of which related parties	213	33
Change in Other Assets/Liabilities	(4.644)	4.764
of which related parties	(3.497)	3.163
Net Interest Expenses	(6.570)	(875)
Income Taxes paid	(5.639)	(896)
Change in Provisions for Risks and Charges	(971)	(1.317)
Cash Flow from Operating Activities (A)	32.726	10.021

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT €/000	At June 30, 2023	At June 30, 2022
Investing activities
Investment in Tangible Assets	(16.273)	(15.889)
Disposal of Tangible Assets	533	1.077
Investment in Intangible Assets	(2.500)	(1.316)
Disposal of Intangible Assets
Investment of Financial Assets	(151)	(52)
Dividends	0	9 1
Dusoisal of financial assets		(160)
Cash Flow used in Investing Activities (B)	(18.390)	(16.249)
Financing Activities
Increase in no current Loan and borrowing	35.000	31.000
Decrease in no current Loan and borrowing	(35.821)	(25.338)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	3.492	1.427
of which related parties	(1.163)	1.126
Net variation non-monetary increase IFRS16	(4.063)	(6.246)
Dividends Distribution	(12.027)	(6.045)
Acquisition of treasury shares	(598)	(4.285)
Cash Flow from Financing Activities ( C)	(14.016)	(9.487)
Net Cash Flow of the Year (A)+(B)+(C)	319	(15.715)

Appendix

Sector Data – Caprolactam price evolution

www.aquafil.com www.econyl.com www.dryarn.com

Karim Tonelli - CPO & IR karim.tonelli@aquafil.com Mob: +39 3486022950