Aquafil Group [ECNL:IM] - [ECNLF: OTCQX] 9M 2024 Financial Results October 28, 2024

1. Key messages

SHARP PROFITABILITY GROWTH (9M 2024 +30% vs 9M 2023)
PERCENTAGE MARGINS CONTINUED TO IMPROVE
ECONYL® BRANDED AND REGENERATED PRODUCTS INCREASED TO 54% OF REVENUES GENERATED FROM FIBERS
NFP/EBITDA RATIO FURTHER IMPROVED
USA VOLUMES RECOVERED
CAPITAL INCREASE WITH OPTION RIGHTS PLANNED BY THE END OF THE YEAR

2. Financial results

		Revenues			EBITDA			Net profit
	2024	2023	Δ%	2024	2023	Δ%	2024	2023	Δ%	30.09.24	31.12.23	Δ%
M	416,1	442,2	(5,9)%	48,1	37,0	29,9 %	(8,8)	(17,1)	48,7 %	(265,0)	(248,5)	6,6 %
% on Revenues				11,6%	8,4%		(2,1)%	(3,9)%
Q	127,9	131,1	(2,4)%	15,5	5,7	171,8 %	(2,6)	(12,9)	79,5 %
% on Revenues				12,1%	4,3%		(2,1)%	(9,8)%
		SALES VOLUME1 +6,3% compared to 9M23 (2,7)% compared to 3Q23 EMEA and Asia Market in line with expectation USA Recovery trend		lower	EBITDA Higher to 9M 2023 Due to personnel costs decrease and raw material and			NET PROFIT Lower to 9M 2023 Mainly due to Increase of net financial costs		on 30th	NFP Lower vs Dec. 23 NFP/EBITDA LTM x4,52 September 2024
		ECONYL® Ca. 54% of Fiber Revenues in 9M and 56,7% in 3Q			utilities costs					on 31st	x5,23 December 2023

2. Financial results - Revenues by components

Higher volumes of 6,3% compared to 9M 2023 and lower of 2,7% compared to 3Q 2023

2. Financial results - Volumes

EMEA: volumes +12,2% vs 9M23 and (5,3)% vs 3Q23: – Recovery trend for NTF shown in 3Q2024

– BCF and Polymers in line with expectations

USA: volumes ca (5,0)% vs 9M23 and +2,1% vs 3Q23 :

– BCF and NTF increasing trend seen in 3Q2024

Asia: volumes +7,8% vs 9M23 and (2,9)% vs 3Q23:

– BCF in line with budget YTD

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

2. Financial results – Revenues: ECONYL® products

ECONYL® products increased accounted for 54% in 9M 2024 and for 56,7% in 3Q 2024

2. Financial results - P&L: KPI

		9M			3Q
	2024	2023	Δ%	2024	2023	Δ%
Revenues	416,1	442,2	(5,9)%	127,9	131,1	(2,4)%

EBITDA	48,1	37,0	29,9 %	15,5	5,7	171,8 %
% on net Sales	11,6 %	8,4%		12,1%	4,3%
EBIT	3,9	(4,4)	188,7 %	0,8	(8,5)	109,5 %
% on net Sales	0,9%	(1,0)%		0,6 %	(6,5)%
EBT	(10,3)	(14,9)	30,6 %	(3,1)	(12,8)	75,7 %
% on net Sales	(2,5)%	(3,4)%		(2,4)%	(9,8)%
NET RESULT	(8,8)	(17,1)	48,7 %	(2,6)	(12,9)	79,5 %
% on net Sales	(2,1)%	(3,9)%		(2,1)%	(9,8)%

2. Financial results - NFP and NPF/EBITDA

• NFP on 30th September 2024 equal to 265,0 €/mln vs 248,5 €/mln on 31st December 2023

• Ratio NPF/EBITDA LTM at x4,52

3. Outlook

In these first nine months, profitability marked a significant increase over the same period last year with margins exceeding 12 percent in the third quarter.

The net financial position, excluding the impacts of IFRS 16 accounting standard, showed an important decrease from last year. The NFP/EBITDA ratio also continued to improve, as expected.

Demand in Asia Pacific and EMEA confirmed budget forecasts for the current year. The U.S. region showed signs of recovery in both fibers' product lines, despite the impacts of Hurricane Helene in North Carolina.

The fourth quarter is expected to see further profitability improvement, continued decline in debt, and increasing volumes, confirming the Business Plan.

The capital increase operation to support the Business Plan is expected to be completed by the end of the current year. If any rights remain unopted at the end of the subscription period, the final deadline to execute them will be January 31, 2025.

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)

«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	At 30 September	of which	At 30	of which	Third Quarter	of which	Third Quarter	of which
€/000	2024	non-current	September 2023	non-current	2024	non-current	2023	non-current
Revenues	416.075		442.229	1	127.942		131.112	1
of which related parties	18		227		(140)		76
Other Revenues and income	6.618	32	7.550	625	3.333	(5)	2.603	622
of which related parties	227		-		227		-
Total and and Revenues Other Revenues income	422.693	32	449.779	626	131.275	32	133.715	623
Raw Material	(196.191)		(230.169)	(415)	(58.400)		(71.231)	(415)
Services	(92.659)	(484)	(95.987)	(1.263)	(30.958)	(336)	(28.123)	(245)
of which related parties	(530)		(388)	-	(201)		(124)
Personel costs	(90.642)	(1.217)	(94.220)	(2.345)	(28.467)	(387)	(31.201)	(1.830)
Other Operating Costs	(2.411)	(123)	(2.718)	(181)	(752)	(14)	(954)	(67)
of which related parties	(52)		(52)		(17)		(17)
Depreciation and Amorti zation	(40.207)		(35.982)		(13.220)		(11.695)
(Provisions&Write-downs)/ releases	(27)		217		(38)		40
Capitalization of Internal Construction Costs	3.340		4.687		1.364		951
EBIT	3.896	(1.792)	(4.393)	(3.578)	804	(743)	(8.499)	(1.933)
Investment income/charges	110		90		110		90
of which related parties	110		90		110		90
Financial income	1.060		621		419		282
of which related parties	1				1
Fianancial charges	(16.138)		(11.907)		(5.607)		(4.402)
of which related parties	(70)		(116)		(21)		(29)
FX Gains and Losses	741		698		1.097		(285)
Profit Before Taxes	(10.330)	(1.792)	(14.891)	(3.578)	(3.177)	(743)	(12.813)	(1.933)
Income Taxes	1.552		(2.177)		532	-	(119)
Net Profit (Including Portion Attr. to Minority )	(8.779)	(1.792)	(17.068)	(3.578)	(2.646)	(743)	(12.932)	(1.933)
Net Profit Attributable to Minority Interest
Net Profit Attributable to the Group	(8.779)		(17.068)		(2.646)		(12.932)

Appendix - Consolidated Income Statement – Revenues 9M

		Appendix -							Consolidated Income Statement –				Revenues 9M
9M			BCF (fiber for carpet)		NTF (fibre for fabrics)				Polymers
	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	%24	%23
EMEA	137,2	140,6	(3,5)	(2,5)%	44,8	57,8	(13,1)	(22,6)%	39,2	29,8	9,4	31,5 %	221,2	228,3	(7,1)	(3,1)%	53,2%	51,6%
North America	94,8	115,3	(20,6)	(17,8)%	18,6	23,0	(4,4)	(19,1)%	6,3	4,0	2,3	58,7 %	119,7	142,3	(22,6)	(15,9)%	28,8%	32,2%
Asia e Oceania	68,9	66,5	2,4	3,6 %	2,5	3,2	(0,7)	(22,6)%	1,9	0,5	1,4	N.A.	73,2	70,2	3,1	4,4 %	17,6%	15,9%
RoW	0,6	0,6	(0,0)	(4,3)%	1,4	0,8	0,6	68,1 %	0,0	0,0	0,0	N.A.	2,0	1,4	0,5	37,0 %	0,5%	0,3%
TOTALE	301,4	323,1	(21,7)	(6,7)%	67,2	84,8	(17,6)	(20,8)%	47,5	34,3	13,2	38,3 %	416,1	442,2	(26,2)	(5,9)%	100,0%	100,0%
%	72,4%	73,1%			16,2%	19,2%			11,4%	7,8%			100,0%	100,0%

9M - % Revenues by Geographical Area

Appendix - Consolidated Income Statement – Revenues 3Q

		Appendix -			Consolidated Income Statement –								Revenues 3Q
3Q				BCF (fiber for carpet)			NTF (fibre for fabrics)				Polymers					TOTAL
	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	2024	2023	Δ	Δ %	%24	%23
EMEA	40,3	41,6	(1,4)	(3,3)%	12,9	11,6	1,3	11,5 %	10,3	10,0	0,3	3,0 %	63,5	63,2	0,3	0,4 %	49,6%	48,2%
North America	32,5	35,4	(2,9)	(8,1)%	6,1	7,3	(1,3)	(17,6)%	2,1	1,2	0,9	72,3 %	40,6	43,9	(3,3)	(7,5)%	31,8%	33,5%
Asia e Oceania	21,8	22,3	(0,6)	(2,5)%	0,9	1,2	(0,3)	(21,1)%	0,6	0,1	0,5	N.A.	23,3	23,6	(0,3)	(1,4)%	18,2%	18,0%
RoW	0,1	0,1	(0,0)	(8,1)%	0,4	0,2	0,2	96,9 %	0,0	0,0	0,0	N.A.	0,5	0,3	0,2	55,5 %	0,4%	0,3%
TOTALE	94,6	99,4	(4,8)	(4,8)%	20,3	20,3	(0,0)	(0,0)%	13,0	11,4	1,6	14,5 %	127,9	131,1	(3,2)	(2,4)%	100,0%	100,0%
%	74,0%	75,9%			15,9%	15,5%			10,2%	8,7%			100,0%	100,0%

3Q - % Revenues by Geographical Area

49,6% 48,2%

2024 2023

EMEA North America Asia e Oceania

31,8% 33,5%

18,2% 18,0%

3Q - % Revenues by Product Line

Appendix - EBITDA and Adjusted Operating Results

RECONCILIATION FROM NET PROFIT TO EBITDA	September	September	Third Quarter	Third Quarter
€/000	2024	2023	2024	2023
Net Profit (Including Portion Attr. to Minority )	(8.779)	(17.068)	(2.646)	(12.932)
Income Taxes	(1.552)	2.177	(532)	119
Investment income and charges	(110)	(90)	(110)	(90)
Amortisation & Depreciation	40.207	35.982	13.220	11.695
Write-downs & Write-backs of intangible and tangible assets	27	(217)	38	(39)
Financial items (*)	16.486	12.638	4.777	4.987
No recurring items (**)	1.792	3.578	743	1.933
EBITDA	48.072	37.001	15.490	5.673
Revenue	416.075	442.229	127.942	131.112
EBITDA Margin	11,6%	8,4%	12,1%	4,3%

RECONCILIATION FROM EBITDA TO EBIT ADJUSTED €/000	September 2024	September 2023	Third Quarter 2024	Third Quarter 2023
EBITDA	48.072	37.001	15.490	5.673
Amortisation & Depreciation	40.207	35.982	13.220	11.695
Write-downs & Write-backs of intangible and tangible assets	27	(217)	38	(39)
EBIT Adjusted	7.838	1.236	2.232	(5.983)
Revenue	416.075	442.229	127.942	131.112
EBIT Adjusted Margin	1,9%	0,3%	-(1,7%)	-4,6%

(*) The financial items include: (i) financial charges and other bank charges of Euro (16.1) million, (ii) cash discounts of Euro (2.1) million, (iii) financial income of Euro 1 million, and (iv) exchange gain of Euro 0.7 million.

(**) This includes at the end of September: (i) non-recurring charges related to the expansion of the Aquafil Group for Euro (0.1) million, (ii) non-recurring charges related to legal advice for Euro (0.1) million, (iii) nonrecurring costs relating to the mobility of personnel for Euro (1.2) million, (iv) other non-recurring charges and income for Euro (0.1) million, (v) non-recurring charges related to the capital increase operation Euro (0.3) million.

Appendix - Consolidated Balance Sheet (1/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2024	2023
Intangible Assets	16.008	19.080
Goodwill	14.906	15.103
Tangible Assets	235.696	251.604
Financial Assets	676	534
of which related parties	250	79
Investments & Equity metod	1.113	1.023
Other Assets	-	-
of which related parties	-	-
Deferred Tax Assets	21.173	18.545
Total Non-Current Assets	289.572	305.889
Inventories	184.770	189.493
Trade Receivable	29.058	26.206
of which related parties	245	351
Financial Current Assets	1.433	5.703
of which related parties	-	-
Current Tax Receivables	1.251	1.619
Other Current Assets	13.164	14.644
of which related parties	7.846	5.854
Cash and Cash Equivalents	98.681	157.662
Asset held for sales	-	-
Total Current Assets	328.357	395.327
Total Current Assets	617.930	701.216

Appendix - Consolidated Balance Sheet (2/2)

CONSOLIDATED BALANCE SHEET	At September 30,	At December 31,
€/000	2024	2023
Share Capital	49.722	49.722
Reserves	73.761	101.379
Group Net Profit for the year	(8.779)	(25.849)
Group Shareholders Equity	114.705	125.252
Net Equity attributable to minority interest	1	1
Net Profit for the year attributable to minority interest	-	-
Total Sharholders Equity	114.705	125.253
Employee Benefits	4.436	5.104
Non-Current Financial Liabilities	262.080	308.741
of which related parties	3.317	3.217
Provisions for Risks and Charges	1.699	1.710
Deferred Tax Liabilities	13.739	13.324
Other Payables	4.338	5.852
of which related parties	-	-
Total Non-Current Liabilities	286.291	334.731
Current Financial Liabilities	103.021	103.161
of which related parties	2.647	1.872
Current Tax Payables	567	1.219
Trade Payables	94.328	116.006
of which related parties	143	551
Other Liabilities	19.017	(20.846)
of which related parties	-	-
Total Current Liabilities	216.933	241.232
Total Equity and Liabilities	617.930	701.216

Appendix - Net Financial Position

NET FINANCIAL DEBT	At September 30,	At December 31,
€/000	2024	2023
A. Liquidity	98.681	157.662
B. Cash and cash equivalents
C. Other current financial assets	1.433	5.703
D. Liquidity (A + B + C)	100.114	163.364
E. Current financial debt (including debt instruments but excluding the current
portion of non-current financial debt)	( 3.540)	( 2.438)
F. Current portion of non-current financial debt	( 99.481)	( 100.723)
G. Current financial debt (E + F)	( 103.021)	( 103.161)
H. Net current financial debt (G - D)	( 2.906)	60.204
I. Non-current financial debt (excluding current portion and debt instruments)	( 217.586)	( 251.350)
J. Debt instruments	( 44.494)	( 57.391)
K. Trade payables and other non-current payables
L. Non-current financial debt (I + J + K)	( 262.080)	( 308.741)
M. Total financial debt (H + L)	( 264.986)	( 248.537)

Appendix - Consolidated Cash Flow Statement (1/2)

CASH FLOW STATEMENT	At September 30,	At September 30,
€/000	2024	2023
Operation Activities
Net Profit (Including Portion Attr. to Minority )	(8.779)	(17.068)
of which related parties	(296)	(239)
Income Taxes	(1.552)	2.177
Investment income and charges	(110)	(90)
of which related parties	(110)	(90)
Financial income	(1.060)	(621)
Financial charges	16.138	11.907
of which related parties	(70)	(116)
Exchange (gains)/losses	(741)	(698)
(Gain)/Loss on non - current asset Disposals	(43)	(216)
Provisions&Write-downs	67	(104)
(write-downs)/recovery of inancial assets (receivables)	(40)	(113)
Amortisation, depreciation & write-downs	40.207	35.982
Cash Flow from Operating Activities Before Changes in NWC	44.088	31.157
Change in Inventories	4.722	64.362
Change in Trade and Other Payables	(21.678)	(42.723)
of which related parties	(408)	(172)
Change in Trade and Other Receivables	(2.812)	823
of which related parties	106	136
Change in Other Assets/Liabilities	101	(5.092)
of which related parties	(1.992)	(4.884)
Net Interest Expenses	(14.374)	(10.440)
Income Taxes paid	(3.004)	(7.460)
Change in Provisions for Risks and Charges	(813)	(1.455)
Cash Flow from Operating Activities (A)	6.231	29.172

Appendix - Consolidated Cash Flow Statement (2/2)

CASH FLOW STATEMENT €/000	At September 30,	At September 30, 2023
	2024
Investing activities
Investment in Tangible Assets	(14.591)	(22.260)
Disposal of Tangible Assets	129	420
Investment in Intangible Assets	(2.129)	(3.839)
Disposal of Intangible Assets	0	0
Investment of Financial Assets	(113)	(155)
Dividends	110	90
Dusoisal of financial assets	0	-
Cash Flow used in Investing Activities (B)	(16.594)	(25.743)

Financing Activities
Increase in no current Loan and borrowing	20.000	75.000
Decrease in no current Loan and borrowing	(65.457)	(51.564)
Net variation in current and not current fiancial Assets and Liability inclueded IFRS 16	(3.161)	(3.259)
of which related parties	704	(1.950)
Dividends Distribution	-	(11.992)
Acquisition of treasury shares	-	(598)
Cash Flow from Financing Activities ( C)	(48.618)	7.586
Net Cash Flow of the Year (A)+(B)+(C)	(58.981)	11.014

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