Aquafil

Investor Presentation • May 11, 2023

Aquafil Group 1 Quarter 2023 Financial Result

11th May 2023

Index	Page
Key Message	3
Financial Result	5
Outlook	14
Appendix	16

Key Message

ECONYL® branded product revenues includes both ECONYL® branded and regenerated products.

RATIO OF ECONYL® BRANDED PRODUCTS TO REVENUES GENERATED BY FIBERS AT 46.9%

CONTINUED GROWTH FOR CARPET FIBRES IN THE UNITED STATES

Key Messages

Financial Result

1Q 2023 Main Result

• Lower volumes of ca 9% compared to 1Q 2022
  • Volume: lower sales in EMEA
  • Price & sales mix: positive impact thanks to selling price adjustment.

Revenues – Quantity

EMEA: volumes ca -20% vs 1Q 2022:

– BCF, NTF and Polymers: lower quantity due to slow market demand;

USA: volumes ca +10% vs 1Q 2022:

• BCF: higher quantity due market demand;
• NTF: lower quantity due to slow market demand;

Asia: in line with 1Q 2022;

• +11,2% compared to 1Q 2022 due to higher price

€/mil	First Quarter
	2023	2022	∆
REVENUES	166,8	171,2	(4,3)
EBITDA	21,6	24,8	(3,2)
% on net sales	12,9%	14,5%
EBIT	8,0	12,5	(4,5)
% on net sales	4,8%	7,3%
EBT	4,6	11,9	(7,3)
% on net sales	2,8%	7,0%
NET RESULT	3,3	9,1	(5,8)

• NFP on 31st March 2023 equal to (246,8) better of 1,1 €/mil compared to 31st December 2022;
• Ratio NFP/EBITDA LTM at x2,77

Outlook

In terms of margins, the first quarter of 2023 ended in line with Group's expectations and the different geographical areas confirmed the trend reported during the fourth quarter of the previous year.

In terms of volumes sold compared to the first quarter of 2022, the United States confirmed an uptrend, while the Asia Pacific demand levels remained stable and the EMEA witnessed a decline of the end market for all product lines.

In this context, the Group maintained its capacity to generate value.

The remaining part of 2023 is still marked by strong uncertainty, especially with regard to the EMEA market, also due to an extremely limited visibility.

Within this framework, the Group continues to make sustainability-oriented strategic decisions, with the aim of creating products and processes that are increasingly appreciated by the end market, while pursuing greater industrial efficiency and cost effectiveness.

Appendix

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 forwardlooking 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.

Appendix - Definition

«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 historical base 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	First Quarter	of wich non	First Quarter	of wich non
€/000	2023	current	2022	current
Revenue	166.820		171.160	296
of which related parties	76		13
Other Revenue	2.717	2	1.256	91
Total Revenue and Other Revenue	169.537	2	172.416	387
Raw Material	(82.183)	-	(78.567)	(91)
Services	(36.242)	(803)	(38.860)	(354)
of which related parties	(124)	-	(526)
Personel	(32.034)	(318)	(31.387)	(347)
Other Operating Costs	(864)	(3)	(1.234)	(55)
of which related parties	(17)		(17)
Depreciation and Amorti zation	(11.828)		(10.919)
Provisions&Write-downs	87		(17)
(write-downs)/recovery of inancial assets (receivables)	63		25
Capitalization of Internal Construction Costs	1.450		1.004
EBIT	7.986	(1.123)	12.463	(460)
Other Financial Income	114		1.694
Interest Expenses	(3.280)		(1.872)
of which related parties	(45)		(31)
FX Gains and Losses	(176)		(383)
Profit Before Taxes	4.644	(1.123)	11.902	(460)
Income Taxes	(1.352)		(2.782)
Net Profit (Including Portion Attr. to Minority )	3.291	(1.123)	9.120	(460)
Net Profit Attributable to Minority Interest	0		0
Net Profit Attributable to the Group	3.291		9.120

1Q 2023			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	54,3	59,4	34,5	58,0 %	26,3	28,4	17,0	59,6 %	10,9	14,5	(13,3)	(92,2)%	91,5	102,3	38,1	37,2 %	54,9 %	59,7 %
North America	41,4	33,9	61,4	181,1 %	7,2	7,4	3,1	42,4 %	1,4	0,2	(2,4)	(993,1)%	50,0	41,5	62,1	149,7 %	30,0 %	24,2 %
Asia e Oceania	23,5	25,2	10,6	41,9 %	1,0	1,0	(1,2)	(122,1)%	0,2	0,4	0,3	0,0 %	24,7	26,6	9,7	36,5 %	14,8 %	15,6 %
RoW	0,2	0,2	0,2	109,1 %	0,3	0,6	0,5	80,5 %	0,0	0,0	(0,0)	0,0 %	0,6	0,8	0,7	86,8 %	0,3 %	0,5 %
Total	119,4	118,7	106,6	89,8 %	34,8	37,4	19,4	51,9 %	12,6	15,1	(15,4)	(101,8)%	166,8	171,2	110,6	64,6 %	100,0 %	100,0 %
% ToT	71,6%	69,3%			20,9%	21,8%			7,5%	8,8%			100,0%	100,0%

Appendix - Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	First Quarter	First Quarter
€/000	2023	2022
Net Profit (Including Portion Attr. to Minority )	3.291	9.120
Income Taxes	1.352	2.782
Amortisation & Depreciation	11.828	10.919
Write-downs & Write-backs of intangible and tangible assets	(150)	(9)
Financial items (*)	4.127	1.542
No recurring items (**)	1.123	460
EBITDA	21.572	24.814
Revenue	166.820	171.160
EBITDA Margin	12 9% ,	14 5% ,

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	First Quarter 2023	First Quarter 2022
EBITDA	21.572	24.814
Amortisation & Depreciation	11.828	10.919
Write-downs & Write-backs of intangible and tangible assets	(150)	(9)
EBIT Adjusted	9.893	13.904
Revenue	166.820	171.160
EBIT Adjusted Margin	5,9%	8,1%

(*) The financial items include: (i) financial income of Euro 0.1 million (ii) financial charges and other bank charges of Euro (3.2) million, (iii) cash discounts of Euro (0.8) million, and (iv) exchange loss of Euro (0.2) million.

(**) This includes at the end of March: (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.4) million, (ii) (0.7) million related to a no recurring event in the USA.

Appendix - Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2023	2022
Intangible Assets	20.852	21.596
Goodwill	15.346	15.647
Tangible Assets	243.959	247.469
Financial Assets	643	831
of which related parties	318	318
Investments & Equity metod	1.018	1.018
Other Assets	426	426
Deferred Tax Assets	9.855	11.519
Total Non-Current Assets	292.101	298.506
Inventories	242.684	260.808
Trade Receivable	35.846	28.553
of which related parties	398	376
Financial Current Assets	5.632	9.964
Current Tax Receivables	1.167	580
Other Current Assets	16.059	15.862
of which related parties	1.851	247
Cash and Cash Equivalents	122.817	110.682
Total Current Assets	424.206	426.449
Total Current Assets	716.306	724.955

Appendix - Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2023	2022
Share Capital	49.722	49.722
Reserves	121.113	96.528
Group Net Profit for the year	3.291	29.151
Group Shareholders Equity	174.127	175.401
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	0	0
Total Sharholders Equity	174.128	175.402
Employee Benefits	4.975	5.192
Non-Current Financial Liabilities	286.705	285.385
of which related parties	4.837	5.262
Provisions for Risks and Charges	1.591	1.975
Deferred Tax Liabilities	9.064	9.237
Other Payables	7.899	8.985
Total Non-Current Liabilities	310.233	310.774
Current Financial Liabilities	88.575	83.146
of which related parties	2.817	2.957
Current Tax Payables	3.241	3.630
Trade Payables	113.372	126.840
of which related parties	281	270
Other Liabilities	26.757	25.163
of which related parties	230	230
Total Current Liabilities	231.945	238.779
Total Equity and Liabilities	716.306	724.955

Appendix - Consolidated Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
€/000	2023	2022
Operation Activities
Net Profit (Including Portion Attr. to Minority )	3.291	9.120
of which related parties	(111)	(561)
Income Taxes	1.352	2.782
Financial income	(114)	(1.694)
Financial charges	3.280	1.872
of which related parties	45	31
FX (Gains) and Losses	176	383
(Gain)/Loss on non - current asset Disposals	(81)	(56)
Provisions&Write-downs	(87)	17
(write-downs)/recovery of inancial assets (receivables)	(63)	(25)
Amortisation, depreciation & write-downs	11.828	10.918
Cash Flow from Operating Activities Before Changes in NWC	19.582	23.316
Change in Inventories	18.127	(27.001)
Change in Trade and Other Payables	(13.469)	5.409
of which related parties	11	461
Change in Trade and Other Receivables	(7.230)	(6.889)
of which related parties	(22)	51
Change in Other Assets/Liabilities	(430)	(2.696)
of which related parties	(1.604)	2.040
Net Interest Expenses	(3.166)	(178)
Income Taxes paid	(2.335)	(78)
Change in Provisions for Risks and Charges	(668)	(242)
Cash Flow from Operating Activities (A)	10.411	(8.358)

Appendix - Consolidated Cash Flow Statement (2/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
€/000	2023	2022
Investing activities
Investment in Tangible Assets	(7.858)	(7.226)
Disposal of Tangible Assets	304	76
Investment in Intangible Assets	(771)	(550)
Disposal of Intangible Assets
Cash Flow used in Investing Activities (B)	(8.325)	(7.701)
Financing Activities
Increase in no current Loan and borrowing	15.000	20.000
Decrease in no current Loan and borrowing	(11.903)	(10.854)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	8.172	2.357
of which related parties	(565)	472
Net variation non-monetary increase IFRS16	(617)	(3.982)
of which related parties	-	(1.177)
Dividends Distribution	(6)
Acquisition of treasury shares	(597)	(1.558)
Cash Flow from Financing Activities ( C)	10.049	5.964
Net Cash Flow of the Year (A)+(B)+(C)	12.135	(10.095)

NET FINANCIAL DEBT	At March 31,	At December 31,
€/000	2023	2022
A. Liquidity	122.817	110.682
B. Cash and cash equivalents
C. Other current financial assets	5.632	9.964
D. Liquidity (A + B + C)	128.450	120.646
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 6.358)	( 1.333)
F. Current portion of non-current financial debt	( 82.217)	( 81.814)
G. Current financial debt (E + F)	( 88.575)	( 83.146)
H. Net current financial debt (G - D)	39.875	37.500
I. Non-current financial debt (excluding current portion and debt instruments)	( 216.417)	( 215.084)
J. Debt instruments	( 70.288)	( 70.301)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 286.705)	( 285.385)
M. Total financial debt (H + L)	( 246.831)	( 247.885)