Aquafil

Investor Presentation • May 14, 2024

Aquafil Group

[ECNL:IM] - [ECNLF: OTCQX]

1Q 2024 Financial Results May 14, 2024

1. Key messages

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

2. Financial results

	Revenues		EBITDA				Net profit		NFP
	2024	2023	Δ%	2024	2023	Δ%	2024	2023	Δ%	31.03.24	31.12.23	Δ%
1Q	147,5	166,8	(11,6)%	15,2	21,6	(29,6)%	(3,1)	3,3	(193,9)%	250,3	248,5	0,7%
% on Revenues				10,3%	12,9%		(2,1)%	2,0%
		SALES			EBITDA			NET PROFIT			NFP
		VOLUME1 13,8% compared to 1Q23			Lower to 1Q 2023			Lower to 1Q 2023			In line vs Dec. 23
EMEA and Asia Market in line with				Due to			Strong decrease Due to		NFP/EBITDA LTM
		expectation USA Weaker market		lower	sales price to be aligned to the raw material and			EBITDA decrease and		x6,08 on 31st March 2024
		ECONYL® ca 52,1% of Fiber Revenues			different mix			Increase of net financial costs		on 31st	X5,23 December 2023

(1) Based on "First Grade Product" revenues

2. Financial results - Revenues by components

Higher volumes of 13,8% compared to 1Q 2023

2. Financial results - Volumes

EMEA: volumes +25,3% vs 1Q23:

• Market recovery for BCF in 1Q 2024
• NTF lower volumes
• Polymers and Engineering plastics continues to grow

USA: volumes ca (5,64)% vs 1Q23:

– BCF and NTF: weaker market

Asia: volumes +11,2% vs 1Q23:

– BCF: slight increase in quantity vs 1Q 2023

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

% Revenues by Geographical Area

% Revenues by Product Line

(1) Rest of World not included

2. Financial results – Revenues: ECONYL® products

ECONYL® products increased by 52,1% in 1Q 2024

2. Financial results - P&L: KPI

		1Q
	2024	2023	Δ%
Revenues	147,5	166,8	(11,6)%
EBITDA	15,2	21,6	(29,6)%
% on net Sales	10,3 %	12,9%
EBIT	0,8	8,0	(89,4)%
% on net Sales	0,6 %	4,8%
EBT	(4,0)	4,6	(186,1)%
% on net Sales	(2,7)%	2,8%
NET RESULT	(3,1)	3,3	(193,9)%
% on net Sales	(2,1)%	2,0%

2. Financial results - NFP and NPF/EBITDA

• NFP on 31st March 2024 equal to 250,3 vs 248,5 €/mil on 31st December 2023

• Ratio NPF/EBITDA LTM at x6,08

3. Outlook

In the first quarter of 2024, margins were essentially in line with expectations, confirming the recovery path towards the achievement of the plan targets.

The context of reference has not stabilized yet, but an uptrend is expected in the second half of the year.

The comparison with the same period of the previous year in terms of economic performances is unfavorable. From a market point of view, overall volumes were up compared to the last quarters of 2023. The geographical areas witnessed two different trends: volumes increased in EMEA and Asia and declined slightly in the United States.

The Group continued its activities aimed at rationalizing personnel costs, optimizing working capital and containing investments in order to reduce its debt.

For the rest of the year, the Group expects a recovery in the market of fibers for garments in EMEA and in the United States following the sharp reduction witnessed in 2023. It also expects a gradual recovery in the market of fibers for carpets in the United States. In the Asian area, forecasts call for a constant growth in the market of fibers for carpets.

The Company confirms and is committed to achieving the targets it set for the 2024-2025 two-year period.

11

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	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 and Other Revenue 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 Statement – Revenues 1Q

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 - EBITDA and Adjusted Operating Results

RECONCILIATION FROM NET PROFIT TO EBITDA €/000	First Quarter 2024	First Quarter 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

Appendix - Net Financial Position

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 (2/2)

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

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