Slide 1: Aquafil Corporate Presentation June 2018
Corporate Presentation AQUAFIL Corporate Presentation June 2018 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Aquafil S.p.A. (“Aquafil” or “Company”) solely to introduce the Company and its business. Neither this presentation nor any part or copy of it may be transmitted into the United States or distributed, directly or indirectly, in the United States, Austral
Slide 3: Aquafil at a Glance
Aquafil at a Glance • Market Leader in Nylon Fibers and Polymers: - Flooring solutions; - Fashion and sportswear textile applications; - Polymers for engineering plastics solutions; • Technologies, processes and continuous innovation key to a successful business model - R&D focus for a uniquely dive
Slide 4: Aquafil's Value Chain
Aquafil’s Value Chain Raw materials Production Distribution Clients Final Application BCF Flooring Solutions Selected Manufacturers Application Users Production and finishing of Standard Caprolactam premium synthetic yarns, Direct sale / Contract • Nylon 6 monomer principally Nylon 6, for agents (bu
Slide 5: More than 50 Years of Growth Key Milestones
More than 50 Years of Growth Key Milestones Acquisition of Invista BCF Business in Listing in Italian Asia Pacific Stock Exchange Doubling of Production Capacity in China Acquisition of Xentrys from Domo Chemicals The ECONYL® plant in Slovenia begins producing Establishment of ….. Aquafil Asia ….. P
Slide 6: Global Footprint with proximity to Clients
Global Footprint with proximity to Clients USA ITALY SLOVENIA Cartersville (Georgia) Arco (TN) Ljubljana Aquafil USA 1 & 2 Aquafil (Headquarter) AquafilSLO Ljubljana Phoenix (Arizona) Cares (TN) Senozece Aquafil Carpet Recycling #1 Rovereto (TN) AquafilSLO Senožeče Tessilquattro Store Sacramento (Ca
Slide 7: Fiber for flooring, for fashion and polymers
Fiber for flooring, for fashion and polymers Contribution to Key Applications European Market Shares(1) Revenues H1 - 18 A Contract 29% 30% 28% BCF Flooring Solutions Residential ca. 72% 2014 2015 2016 Automotive B Clothing & Fashion NTF Textile Applications Swimwear ca. 18% Sportswear High-tech clo
Slide 8: BCF – Flooring Solutions (Europe)
BCF – Flooring Solutions A BCF Flooring Solutions 2016 Market Share(1) Comments Contract Tiles Contract Wall-to-wall • Aquafil dominating the consolidated and growing European contract market thanks to: – Technology mastering Europe – Ability to provide small batches in very 2016 Market Size 16-21E
Slide 9: BCF – Flooring Solutions (USA and China)
BCF – Flooring Solutions A BCF Flooring Solutions 2016 Market Share(1) Comments Automotive Contract USA • Challenger status, with 2 independent players • Automotive dominated by 3 players • Integrated players make more than 80% of the contract segment 2016 Market Size 16-21E CAGR 2016 Market Size 16
Slide 10: Best-in-class BCF commercial offer
BCF – Flooring Solutions A BCF Best-in-class BCF commercial offer Flooring Solutions • More than 20,000 SKUs • Approximately 5,000 references renewed each year Product Range • The only supplier of 100% regenerated ECONYL® fibers and polymers • Broad proprietary color range • Specialty polymers • Car
Slide 11: BCF Brands using Aquafil Econyl Fibers
BCF – Flooring Solutions BCF Brands using Aquafil Econyl® Fibers 11
Slide 12: NTF - Textile Applications market
NTF - Textile Applications B NTF Global NTF Market(1) (2016) Aquafil NTF Market Share(1) in Europe (2016) Textile Applications 2016 Market Size APAC North America 80% 5% c. 150kt c. €620m EU 8% 2016 Aquafil Revenues RoW c. €89m(2) 8% Entirely generated in Europe 2016 Market Size c. 1,990kt c. €7.9bn
Slide 13: NTF Flexible & Competitive
NTF - Textile Applications B NTF Textile Applications Successful client portfolio thanks to a wide, competitive and diversified product offering • 90% + utilization Flexible & Competitive • Low labor, energy and logistic cost Asset Base • High level of automation in state of the art plants • Consoli
Slide 14: ECONYL Regenerated Fiber and Dryarn
NTF - Textile Applications B NTF Textile Applications ECONYL® Regenerated Fiber Dryarn®: a Successful High-performance Fiber • 100% regenerated & regenerable nylon fiber • Dryarn® is a niche, high-end fiber for sportswear and technical underwear applications • Fully recognized by a large and growing
Slide 15: EP Solutions
EP Solutions C EP Description Engineering Plastic • Aquafil manufactures nylon 6 and raisin pellet polymers for compounders – Once the polymer has been transformed into a techno-polymer, compounders sell the semi-finished product to the industrial molding companies, which Compounders model it based
Slide 16: Econyl
Econyl® 100% regenerated & regenerable nylon fiber, unique proprietary technology and high barriers to entry 4 1 WWW.ECONYL.COM Twitter: @ECONYL Instagram: @ECONYLBRAND PINTEREST: ECONYL® YOUTUBE: ECONYL® 3 2 16 16
Slide 17: Econyl regeneration: from fishing nets to carpet waste
Econyl® 100% regenerated & regenerable nylon fiber LDR(1) Nylon 6 PROCESS WASTE 1990 1998 2007 2011 Recovery of the Lactamic Waters Recovery of Internal Nylon 6 Discards Pre-consumer Discards Pre-and Post-Consumer Discards US Carpet Waste Treatment Plant Fishing Nets Recovery ARC #1 (Phoenix) – ARC
Slide 18: ACR#1, ACR#2 a new model for business
Econyl® The ACR#1, ARC#2, ARC#.. a new model for business….. Carpet Production in 2017 We could cover Carpet waste recycled back in a closed loop 1% 1350 Km2 the city of Los Angeles An unique and efficient solution for nylon 6 carpet regeneration, the AQUAFIL CARPET RECYCLING #ACR 1, located in prox
Slide 19: Technological Leadership
Technological Leadership Technology mastering increasing barriers to entry • High speed spinning technology, with high reliability and unmatched finishing technologies (cabling, heat-setting) developed internally High Productivity • Development of IT tools (e.g. to optimize color change in spinning)
Slide 20: Entrepreneurial Talent and Strong Management
Entrepreneurial Talent and Strong Management Giulio BONAZZI Chairman Chief Executive Officer and President of BCF Area Asia Pacific Fabrizio CALENTI Executive Director – Adriano VIVALDI President of Executive Director NTF & ECONYL® Chief Financial Officer Technology Stefano LORO Sergio CALLIARI Pres
Slide 21: Key Financials: Revenues and EBITDA
Key Financials Revenues(1) (€m) Revenues grew 4.5%, amounting to €291.3 million for H118 compared to €278,8 million for H117, of which a 3% as a result of sales increase of both BCF product in Asia Pacific and of Polymers and the remaining 1,5% as effect of selling price increase. Turnover at 30th J
Slide 22: Key Financials: Net Profit and Capex
Key Financials Net Profit (€m) and Margin on Revenues (%) NET PROFIT grows in H18 of 46,1% from €13,4m up to €19,6m. 6,7 % Increase follows EBITDA trend and remain effect is mainly related to 4,8 4,8 % % effect of exchange gains and losses. 4,3 2,9 % 1,9 % % Gross Capex(1) (€m) and Capex as % of Rev
Slide 23: Key Financials: Net Financial Debt and Cash Flow
Key Financials Net Financial Debt (€m) and Net Financial Debt / EBITDA(1) NET FINANCIAL DEBT increase in H117 from €112,7m to €146,9m. 3,4 The NET Financial Debt variation is mainly driven for: a) €7,7m of cash flow derived from operation including NWC variation; 2,8 2,3 b) (€29,9m) of net capex; 1,
Slide 24: Net Working Capital composition
Key Financials Net Working Capital (€m) composition 115,5 94,2 92,0 96,3 88,0 68,9 24
Slide 25: Net Invested Capital, ROI, Equity and ROE
Key Financials Net Invested Capital (€m) & Adjusted ROI (1) Equity (€m) & ROE(2) (%) 25 (1) Calculated as LTM Adjusted EBIT / Net Invested Capital. (2) Calculated as LTM Net Profit/Total Shareholders’ Equity.
Slide 26: Capital Overview
Capital Overview A capital structure with 3 type of Shares (a) Ordinary Share, (b) share B: dedicated to Giulio Bonazzi family with the same economic right of ordinary share but with 3 voting right for any share and (c) share C: no transferable, no economic and voting right but at certain conditions
Slide 27: Governance
Governance Board of Statutory Auditors Stefano Poggi Longostrevi Board of Directors Chairman Giulio Bonazzi Chairman and CEO Fabio Buttignon Fabrizio Calenti Statutory Auditor Adriano Vivaldi Executive Director Executive Director Silvana Bonazzi Franco Rossi Director Executive Director Bettina Solim
Slide 28: Appendix
/A@IUAFIL TIX synthetic fibres and polymers APPENDIX 28
Slide 29: EBITDA and EBIT Adjusted
EBITDA and EBIT Adjusted RECONCILIATION FROM NET PROFIT TO Half Half Second Second EBITDA €/000 Year 2018 Year 2017 Quarter 2018 Quarter 2017 Net Profit (Including Portion Attr. to Minority ) 19.614 13.421 9.764 5.236 Income Taxes 4.975 5.888 2.378 2.728 Investment income and charges - (50) - (50) A
Slide 30: Income Statement
AQ@UAFIL JIN CONSOLIDATED INCOME STATEMENT Half, of uich Half of nich Second of nich Second of nich €/000 Year 2018 non-curent Year 2017 non-current| Quarter 2018 non-current) Quarter 2017 non-current Revenue 291.291 278.836 12 150.484 137.268 of which related parties 188 152 47 80 Other Revenue 145
Slide 31: Balance Sheet
Balance Sheet CONSOLIDATED BALANCE SHEET At June 30, At December 31, €/000 2018 2017 Intangible Assets 14.962 7.782 Tangible Assets 165.388 153.927 Financial Assets 574 408 of which related parties 79 79 Other Assets 2.189 Deferred Tax Assets 8.357 11.356 Total Non-Current Assets 191.471 173.472 Inv
Slide 32: Cash Flow Statement
Cash Flow Statement CASH FLOW STATEMENT At June 30, At June 30, €/000 2018 2017 Operation Activities Net Profit (Including Portion Attr. to Minority ) 19.614 13.421 of which related parties -1.637 -1.977 Income Taxes 4.975 5.888 Income (loss) from Investments -50 Other Financial Income -17 -180 of w
Slide 33: Net Financial Debt
Net Financial Debt 2017 - 2016 NET FINANCIAL DEBT At June 30, At December 31, €/000 2018 2018 A. Cash 92.003 99.024 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 92.003 99.024 E. Current financial receivables 1.657 988 F. Current bank loans and borrowing
Slide 34: Nylon 6 fiber – Manufacturing Process
Nylon 6 fiber – Manufacturing Process 34
Slide 35: Aquafil Investors Contact
AQUAFIL INVESTORS CONTACT Karim Tonelli Investor Relations and Performance Management Director investor.relations@aquafil.com - mob: +39 348 6022.950 Barabino & Partners IR T: +39 02 72.02.35.35 Stefania Bassi - s.bassi@barabino.it - mob: +39 335 6282.667 Agota Dozsa - a.dozsa@barabino.it - mob: +39