Aquafil

Investor Presentation • Sep 12, 2024

INDUSTRIAL PLAN 2024 - 2026

[ECNL:IM] - [ECNLF: OTCQX]

September 12, 2024

1H 2024 Financial highlights

1H 2024

• Volumes
• ECONYL® products
• Main accomplishments
• EBITDA and profitability
• Net Financial Position

1H 2024 Financial highlights - Volumes

Overall, the Group quantities increased by 10.7% vs 1H2023

2025 target

60% of revenues

generated by fibers from

ECONYL® Branded Products

Main accomplishments – target vs achieved

Previous Guidance targets

NFP

Reduction in personnel costs

Rationalization of working capital

Production costs management to maintain the efficiency of variable costs

High manufacture capital quality and saturation level lead to lower investments

Implemented actions

On track with expectations

Headcount reduction: from approx. 2,800 to approx. 2,400

Decrease of inventory volumes (approx. 20% 1H23 vs 1H24)

Utilities efficiencies and increase of production efficiency

CAPEX containment: €9,2 mln. in 1H24 vs €18,4 mln. in 1H23

1H 2024 Financial highlight – EBITDA and profitability

Marginality improvement for both 2Q24 vs 1Q24 and 1H24 vs 1H23, with significant acceleration in 2Q24 (ca. +78% vs. 2Q23)

• Benefits from efficiencies actions and rationalization of personnel costs
• Decrease in utilities costs
• USA fibers market and EMEA NTF volumes not fully supporting the EBITDA
• Temporary negative price effect alignment to the raw material cost

1H 2024 Financial highlights –NFP and NFP/EBITDA

Decreasing trend in Net Financial Position

• NFP on 30th June 2024 equal to 243,0 vs 248,5 €/mil on 31st December 2023
• Ratio NFP/EBITDA LTM at x4,98

Industrial plan 2024 - 2026

Our view for the future

• Recent market trends and competitive arena
• Capital increase
• Key messages
• Key indicators
• Expected volumes
• Capex
• EBITDA
• Net Financial Position

Recent market trends and competitive arena

USA

• Improvement in the macroeconomic scenario: cut of interest rates with impact on contract and residential sectors
• Volume growth also thanks to player exiting the market

Europe

• Consolidation trend in BCF already seen in 2Q 2024 also thanks to rising demand for high quality products in residential and automotive markets
• Volume growth also thanks to player exiting the market
• Polymers sector characterized by continuous recovery of the underlying markets activity

Asia Pacific

• Expected market rebound in residential and constant growth in the automotive sector
• Volume growth also thanks to player exiting the market

Capital increase – Rationale

• Provide resources to support and accelerate industrial plan's investments and strategic initiatives
• Allow to grab potential opportunities for acquisition and consolidation in an evolving market in the coming years
• Increase strategic flexibility while significantly strengthening as a result the company's financial structure

THE MAJOR SHAREHOLDER AQUAFIN HOLDING HAS EXPRESSED ITS INTENTION TO SUBSCRIBE ITS PRO-QUOTA SHARE OF THE CAPITAL INCREASE

Industrial plan 2024 – 2026 – Key messages

Main assumption:

• selling prices and key raw materials prices estimated in line with 1H2024 values
• New 2024 –2026 industrial plan designed to:
  • further strengthen the Group's competitive positioning through volumes increase
  • accelerate the growth path, also through additional investments, partly leveraging on the €40m capital increase
  • support selected initiatives for:
    • technological improvement
    • increase in efficiency and automation of the production process, and
    • cost rationalization

Industrial plan 2024 – 2026 - Key indicators

Expected results 2024

• EBITDA target: ca. 65 €/mln
• NFP*: ca. 207 €/mln

Expected results 2025

• EBITDA target: 80 87 €/mln
• NFP*: 185 195 €/mln

Expected results 2026

• EBITDA target: 90 96 €/mln
• NFP*: 157 167 €/mln

All the expected results include the effects of the announced capital increase of €40 mln. The Plan does not assume the distribution of dividends. * Positive means debt and includes the IFRS 16 effects

Industrial plan 2024 – 2026 - Expected volumes by business lines

	BCF - Carpet yarn	NTF - Textile yarn	Polymers
'24E vs '23A	Substantially stable	Substantially stable	+40%
'25E vs '24E	From +7% to +9%	From +15% to +18%	From +45% to +55%
'26E vs '25E	From +2% to +4%	From +4% to +7%	From 1% to +2%
CAGR '23-'26	+4%	+7%	+30%

All the expected results include the effects of the announced capital increase of €40 mln.

Capex

The Plan provides for investments in the three-year period 2024-2026 amounting to €90-100 million (excluding IFRS 16 effects)

In the three-year period 2024-2026

• €30-35 mln. for ordinary investments
• €60-65 mln. aimed at increasing and/or optimizing production capacity or for the development of new product innovations

Capex – Main development and expansion projects

• OneStep technology expansion in all geographical areas
• Engineering Plastics capacity improvement
• New high-performance fiber for specific applications (i.e. airlines, cruises, technical materials)
• New technology for recycling multi fiber fabrics
• Ecodesign

Efficiencies

In addition to volumes increase the expected EBITDA trend is driven by efficiencies, such as:

• Asian industrial consolidation
• ECONYL® cost optimization
• Industrial automation
• Variable costs optimization

EBITDA ('24 vs '26) From 65 to 90-96 €/mln

Data in €/mln

Net Financial Position ('24 vs '26) From 207 to 157 - 167 €/mln

Data in €/mln *CAPEX does not include effect of IFRS 16 **Positive means debt and includes the IFR 16 effects

Timeline – Capital increase

EXTRAORDINARY GENERAL MEETING CONVENED FOR 10 OCTOBER 2024 1.

PREPARATORY ACTIVITIES TO BE CARRIED OUT IN OCTOBER – NOVEMBER 2.

EXECUTION AND FINALIZATION BY YEAR END 2024 3.

Lazard and DLA Piper are onboarded respectively as financial and legal advisors

Appendix

Industrial plan 2024 – 2026 Expected volumes by business lines

comparison with old Guidance

capital increase of €40 mln.

Industrial plan 2024 – 2026 Key indicators comparison with old Guidance

Expected results 2024

• EBITDA target: ca. 65 €/mln (old guidance 76 – 82 €/mln )
• NFP*: ca. 206 €/mln (old guidance 225 – 235 €/mln )

Expected results 2025

• EBITDA target: 80 87 €/mln (old guidance 84 – 92 €/mln )
• NFP*: 185 195 €/mln (old guidance 190 – 200 €/mln )

All the expected results include the effects of the proposed capital increase of €40 mln.

* Positive means debt

2024E Net Financial Position – comparison old guidance

The old guidance' NFP does not include the effect of IFRS 16

**Positive means debt

**

The new Industrial Plan' NFP includes the effect of IFRS 16

It should be noted that the old guidance' NFP did not include the increase of IFRS16 effects while the new Industrial Plan take them into account in the NFP expected for the period 2024 – 2026.

Appendix - Sector Data – Caprolactam price evolution

Appendix - Disclaimer

This presentation and any material distributed in connection herewith (together, the "Presentation") prepared by Aquafil S.p.A. ("Aquafil" or "Company") as well as any related oral discussions 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 content of this document has a merely informative and provisional nature and is not to be construed as providing investment advice. This document does not constitute a prospectus, offering circular or offering memorandum. This presentation does not constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, as such term is defined in Regulation S under the United States Securities Act of 1933, as amended.

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 which involve risks and uncertainties and are subject to change. 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. Actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company's control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market as well as geopolitical, economic and regulatory developments in Italy and internationally. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change 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 its files with CONSOB and with the Italian Stock Exchange.

Appendix - Definitions

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)

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