Aquafil

Investor Presentation • Jun 4, 2024

Investor Presentation [ECNL:IM] - [ECNLF: OTCQX] European Midcap Event By Intermonte Paris, June 6, 2024

Aquafil is Market Leader in Nylon

% on 1Q 2024 REVENUES

Carpet yarn

• Contract
• Automotive
• Residential

Textile yarn

• Apparel

70 % 8 %

• Swimwear

• Sportwear

Polymers

• Industrial Molding 70% 16% 14%
  • Extrusion

  • Compounding

And Market Leader Worldwide

% on 1Q 2024 REVENUES

Key figures 1Q 2024

€ 147,5 Million of Revenues

€ 15,2 Million EBITDA

€ 250,3 Million NFP

52,1% ECONYL® fiber turnover

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. 52% of fiber turnover.

Glocal. A Global Company with local productions.

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.

Infinitely Recyclable, Endless Possibilities

100% regenerated & regenerable nylon.

Unique proprietary technology.

Same quality and performance as standard nylon without using new resources.

WASTE IN

ECONYL® nylon is made from waste otherwise destined for the landfill

NO WASTE OUT

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 Main ESG Targets

Generate 60% of our fibers revenues from ECONYL® and other regenerated fibers

Collect 35,000 tons of postconsumer waste

Join the SBT initiative and set GHG reduction target

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

20% women in top management positions within 3 years to assure gender equality

Draft a succession plan for our top management

Our Top ESG Achievements

1 st ranked company in the "Textiles" subindustry according to Morningstar Sustainalytics ESG Risk Rating.

• Environmental Policy
• approval
• Scope 3 emissions reporting
• •Development, validation and issuance of ISO 4484-2 standard on microplastics
• Climate Change Risk and Vulnerability Assessment and Biodiversity Assessment

• •DE&I Policy definition
• Approval of Human Rights Policy
• Approval of Green Procurement Policy
• 45 thousand hours of training (+35% vs 2022)
• Launch of the talent management project

• Approval of new ESG Policy and establishment of an ESG Committee
• New remuneration and incentive policy with ESG parameters
• •Anti-Corruption Policy
• •Update of the Code of Ethics and Whistleblowing Procedure

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

Giulio Bonazzi CEO

Silvana Bonazzi

Patrizia Riva Director (1) (2) (5)

Director

Stefano Loro Director

Francesco Bonazzi Director

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 Bonazzi's family with the same economic right of ordinary share but with 3 voting right for any share;

Financial Results

1Q24 – Key Message

1Q24 General Results

• Revenues 147,5 €/mln (-11,6 % vs 1Q23 and +13,8% vs 4Q23)
• EBITDA 15,2 €/mln (-29,6 % vs 1Q23 and +44,8% vs 4Q23)

ECONYL® Branded Products ¹

• 52,1% of revenues generated by fibers

ECONYL® Branded and regenerated products accounted for 52,1% of revenues generated from fibers

EMEA and Asia in line with expectations, weaker market in the US

Net financial position substantially unchanged

1Q24 – Main Results

(1) Based on "First Grade Product" revenues

NFP evolution

in €/mln

Our expectations

Expected volumes by business lines

2024 – 2025 Expected

Our view for the future

• EBITDA

2024 target: 76 – 82 €/mln 2025 target: 84 – 92 €/mln

• NFP**

2024 target: 225 – 235 €/mln 2025 target: 190 – 200 €/mln

** Does not include IFRS 16 effect

Appendix

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

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

Consolidated Income Statements

CONSOLIDATED INCOME STATEMENT	First Quarter	of wich non	First Quarter	of wich non
€/000	2024	current	2023	current
Revenue	147.500	-	166.820	-
of which related parties	83	-	76	-
Other Revenue	1.639	33	2.717	2
Total Revenue and Other Revenue	149.139	33	169.537	2
Raw Material	(73.445)	-	(82.183)	-
Services	(30.643)	(74)	(36.242)	(803)
of which related parties	(155)	-	(124)	-
Personel	(30.966)	(253)	(32.034)	(318)
Other Operating Costs	(766)	(4)	(864)	(3)
of which related parties	(17)	-	(17)	-
Depreciation and Amorti zation	(13.405)	-	(11.828)	-
Provisions&Write-downs	12	-	87	-
Capitalization of Internal Construction Costs	918	-	1.450	-
EBIT	843	(299)	7.986	(1.123)
Income (loss) from Investments	-	-	-	-
of which related parties	-	-	-	-
Other Financial Income	676	-	114
Interest Expenses	(5.438)	-	(3.280)	-
of which related parties	(28)	-	(45)	-
FX Gains and Losses	(83)	-	(176)	-
Profit Before Taxes	(4.002)	(299)	4.644	(1.123)
Income Taxes	898	-	(1.352)	-
Net Profit (Including Portion Attr. to Minority )	(3.104)	(299)	3.291	(1.123)
Net Profit Attributable to Minority Interest	-	-	-	-
Net Profit Attributable to the Group	(3.104)	(299)	3.291	(1.123)

Appendix

Consolidated Income Statements – Revenues 1Q 2024

Q1				BCF (fiber for carpet)				NTF (fibre for textile)				Polymers						TOTAL
€/mln	2024	2023	Δ	Δ%	2024	2023	Δ	Δ%	2024	2023	Δ	Δ%	2024	2023	Δ	Δ%	%24	%23
EMEA	49,4	54,3	(4,9)	(9,0)%	15,7	26,3	(10,6)	(40,3)%	17,1	10,9	6,2	56,9 %	82,2	91,5	(9,3)	(10,1)%	55,7%	54,9%
North America	31,2	41,4	(10,2)	(24,7)%	6,3	7,2	(0,9)	(13,1)%	2,4	1,4	0,9	64,4 %	39,8	50,0	(10,2)	(20,5)%	27,0%	30,0%
Asia e Oceania	23,0	23,5	(0,5)	(2,3)%	1,2	1,0	0,2	25,2 %	0,6	0,2	0,4	N.A.	24,8	24,7	0,1	0,3 %	16,8%	14,8%
RoW	0,3	0,2	0,1	38,3 %	0,4	0,3	0,1	15,5 %	0,0	0,0	0,0	N.A.	0,7	0,6	0,1	24,6 %	0,5%	0,3%
TOTAL	103,8	119,4	(15,6)	(13,0)%	23,6	34,8	(11,2)	(32,3)%	20,1	12,6	7,5	59,6 %	147,5	166,8	(19,3)	(11,6)%	100,0%	100,0%
% Tot	70,4%	71,6%			16,0%	20,9%			13,6%	7,5%			100,0%	100,0%

% Revenues by Geographical Area

% Revenues by Product Line

Appendix Consolidated Income Statements – EBITDA & EBITD Adj

RECONCILIATION FROM NET PROFIT TO EBITDA	First Quarter	First Quarter
€/000	2024	2023
Net Profit (Including Portion Attr. to Minority )	(3.104)	3.291
Income Taxes	(898)	1.352
Amortisation & Depreciation	13.405	11.828
Write-downs & Write-backs of intangible and tangible assets	(12)	(150)
Financial items (*)	5.552	4.127
No recurring items (**)	299	1.123
EBITDA	15.242	21.572
Revenue	147.500	166.820
EBITDA Margin	10,3%	12,9%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	First Quarter 2024	First Quarter 2023
EBITDA	15.242	21.572
Amortisation & Depreciation	13.405	11.828
Write-downs & Write-backs of intangible and tangible assets	(12)	(150)
EBIT Adjusted	1.849	9.893
Revenue	147.500	166.820
EBIT Adjusted Margin	1,3%	5,9%

(*) The financial items include: (i) financial income of Euro 0.7 million (ii) financial charges and other bank charges of Euro (5.4) million, (iii) cash discounts of Euro (0.7) million, and (iv) exchange loss of Euro (0.1) million.

(**) This mainly includes (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.1) million, (ii) restructuring costs for Euro (0.2) million.

Appendix Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2024	2023
Intangible Assets	17.959	19.080
Goodwill	15.437	15.103
Tangible Assets	245.525	251.604
Financial Assets	583	534
of which related parties	107	79
Investments & Equity metod	1.113	1.023
Other Assets	-	-
of which related parties	-	-
Deferred Tax Assets	20.136	18.545
Total Non-Current Assets	300.753	305.889
Inventories	180.633	189.493
Trade Receivable	30.846	26.206
of which related parties	364	351
Financial Current Assets	6.509	5.703
of which related parties	-	-
Current Tax Receivables	1.934	1.619
Other Current Assets	17.159	14.644
of which related parties	6.540	5.854
Cash and Cash Equivalents	146.004	157.662
Asset held for sales	-	-
Total Current Assets	383.085	395.327
Total Current Assets	683.838	701.216

Appendix Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At March 31,	At December 31,
€/000	2024	2023
Share Capital	49.722	49.722
Reserves	78.487	101.379
Group Net Profit for the year	(3.104)	(25.849)
Group Shareholders Equity	125.105	125.252
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	-
Total Sharholders Equity	125.105	125.253
Employee Benefits	5.088	5.104
Non-Current Financial Liabilities	305.391	308.741
of which related parties	2.961	3.217
Provisions for Risks and Charges	1.704	1.710
Deferred Tax Liabilities	14.111	13.324
Other Payables	5.363	5.852
of which related parties	-	-
Total Non-Current Liabilities	331.657	334.731
Current Financial Liabilities	97.471	103.161
of which related parties	1.531	1.872
Current Tax Payables	1.368	1.219
Trade Payables	107.990	116.006
of which related parties	84	551
Other Liabilities	20.247	20.846
of which related parties	-	-
Total Current Liabilities	227.076	241.232
Total Equity and Liabilities	683.838	701.216

NET FINANCIAL DEBT	At March 31,	At December 31,
€/000	2024	2023
A. Liquidity	146.004	157.662
B. Cash and cash equivalents	-	-
C. Other current financial assets	6.509	5.703
D. Liquidity (A + B + C)	152.513	163.364
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	(2.678)	(2.438)
F. Current portion of non-current financial debt	(94.794)	(100.723)
G. Current financial debt (E + F)	(97.472)	(103.161)
H. Net current financial debt (G - D)	55.042	60.204
I. Non-current financial debt (excluding current portion and debt instruments)	(248.013)	(251.350)
J. Debt instruments	(57.378)	(57.391)
K. Trade payables and other non-current payables	-	-
L. Non-current financial debt (I + J + K)	(305.391)	(308.741)
M. Total financial debt (H + L)	(250.349)	(248.537)

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
€/000	2024	2023
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(3.104)	3.291
of which related parties	(118)	(111)
Income Taxes	(898)	1.352
Income (loss) from Investments	-	-
of which related parties	-	-
Financial income	(676)	(114)
Financial charges	5.438	3.280
of which related parties	(28)	45
FX (Gains) and Losses	83	176
(Gain)/Loss on non - current asset Disposals	(86)	(81)
Provisions & Write-downs/(releases)	(12)	(150)
Amortisation, depreciation & write-downs of tangible and intangible assets	13.405	11.828
Cash Flow from Operating Activities Before Changes in NWC	14.151	19.582
Change in Inventories	8.859	18.127
Change in Trade and Other Payables	(8.016)	(13.469)
of which related parties	(467)	11
Change in Trade and Other Receivables	(4.617)	(7.230)
of which related parties	(13)	(22)
Change in Other Assets/Liabilities	(1.522)	(430)
of which related parties	(685)	(1.604)
Net Interest Expenses	(5.133)	(3.166)
Income Taxes paid	(832)	(2.335)
Change in Provisions for Risks and Charges	(98)	(668)
Cash Flow from Operating Activities (A)	2.791	10.411

Appendix Consolidated

Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At March 31,	At March 31,
€/000	2024	2023
Investing activities
Investment in Tangible Assets	(3.354)	(7.858)
Disposal of Tangible Assets	156	304
Investment in Intangible Assets	(524)	(771)
Disposal of Intangible Assets	-	-
Investment of Financial Assets	(113)	-
Dividends	-	-
of which related parties	-	-
Cash Flow used in Investing Activities (B)	(3.836)	(8.325)
Financing Activities
Increase in no current Loan and borrowing	10.000	15.000
Decrease in no current Loan and borrowing	(17.417)	(11.903)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	(3.198)	7.555
of which related parties	(596)	(565)
Dividends Distribution	-	(6)
of which related parties	-	-
Acquisition of treasury shares	-	(597)
Cash Flow from Financing Activities ( C)	- (10.614)	- 10.049
Net Cash Flow of the Year (A)+(B)+(C)	(11.658)	12.135

Appendix

Sector Data – Caprolactam price evolution

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

Giulia Rossi – IR investor.relations@aquafil.com