Slide 1: Corporate Presentation - STAR Conference 2019
Corporate Presentation AQUAFIL Corporate Presentation STAR Conference 2019 Milan, 20th – 21st March 2019 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 • Pioneers of circularity with ECONYL®: - An unique Regeneration System to produce sustainable fiber and polymers from nylon 6 waste; - High barriers to entry for technology and reverse supply chain; - Turnover of product branded ECONYL® equal to 37% of fiber turnover – CAGR 2016
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: Product Range
Product Range Contribution to Key Applications 2018 European PA Market Shares (1) Revenues FY2018 A Contract Fiber for carpet flooring Residential 73,5% BCF Product Automotive B Clothing & Fashion Fiber for fabric Swimwear ca. 17,1% NTF Product Sportswear High-tech clothing C Polymers EP Product ca.
Slide 8: Competitors: Fiber for carpet flooring
Fiber for carpet flooring A Fiber for carpet flooring - BCF Product 2018 PA Market Shares1 Integrated Players Competitors 8 (1) Aquafil on Wood Mackenzie market data - Based on volume
Slide 9: Fiber for carpet flooring - BCF Product
Fiber for carpet flooring A Fiber for carpet flooring - BCF Product • More than 20,000 SKUs, approximately 5,000 references renewed each year Product • The only supplier of 100% regenerated ECONYL® fiber Range • Broad proprietary color range • Specialty polymers • Carpet development centers in each
Slide 10: Competitors: Fiber for Fabric
Fiber for Fabric B Fiber for Fabric - NTF Product 2018 Market Shares1 Textile mass production is in APAC, with Europe’s A leading player with limited competition. Only 3 core focus is on high-end production. Fast fashion suppliers capable of offering products starting from needs lead to growing prod
Slide 11: Fiber for Fabric - NTF Product
Fiber for Fabric B Fiber for Fabric - NTF Product • 90% + utilization Flexible & Competitive Asset Base • Low labor, energy and logistic cost • High level of automation in state of the art plants Partnership • Consolidated partnership with the two most established nylon users in Europe with • Succes
Slide 12: ECONYL Regenerated Fiber and Dryarn
Fiber for Fabric B Fiber for Fabric - NTF Product 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 num
Slide 13: 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 14: ECONYL: 100% regenerated and regenerable nylon
• 100% regenerated & regenerable nylon • Unique proprietary technology • 37% of Aquafil Fiber Turnover 2018 WWW.ECONYL.COM 14
Slide 15: STEP 1: RESCUE
STEP 1: RESCUE The ECONYL® Regeneration System starts with rescuing waste, like fishing nets, fabric scraps, carpet flooring and industrial plastic from landfills and oceans all over the world. That waste is then sorted and cleaned to recover all of the nylon possible. 15
Slide 16: The ACR#1, ARC#2, ARC#.. a new model for business
Econyl® The ACR#1, ARC#2, ARC#.. a new model for business….. Carpet Production in Carpet waste recycled 2017 We could cover 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 plant with capacity to
Slide 17: STEP 2: REGENERATE
STEP 2: REGENERATE Through a radical regeneration and purification process, the nylon waste is recycled right back to its original purity. That means ECONYL® regenerated nylon is exactly the same as virgin nylon. 17
Slide 18: STEP 3: REMAKE
STEP 3: REMAKE ECONYL® regenerated nylon is processed into carpet yarn and textile yarn for the fashion and interior industries. 18
Slide 19: STEP 4: REIMAGINE
STEP 4: REIMAGINE Fashion brands and carpet producers use ECONYL® regenerated nylon to create brand new products. And that nylon has the potential to be recycled infinitely, without ever losing its quality. 19
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 5.1%, amounting to €555.2 million in FY18 compared to €528,3 million of FY17, mainly as a result of sale increase of BCF product in Asia and USA. Turnover in FY18 is composed by 73,5% of BCF product, including Engineering activities, 17,1% of NTF product
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 5.4 4,8 % % % Variation is related with EBITDA growth, lower Financial Cost and higher no- 4,8 % recurring costs. 4,3 2,9 % 1,9 % % Gross Capex(1) (€m) and Capex as % of Revenue(2
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. The NET Financial Debt variation is mainly driven for: 3,4 a) €35,5m of cash flow derived from operation including NWC variation; 2,8 2,3 2,0 % % b) (€68,9m) of net
Slide 24: Net Working Capital composition
Key Financials Net Working Capital (€m) composition 96,3 115,5 94,2 109,5 68,9 92,0 88,0 24
Slide 25: Net Invested Capital, Adjusted 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 Composition
Capital Composition 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 conditi
Slide 27: Governance
Governance Board of Statutory Auditors Stefano Poggi Longostrevi Chairman Board of Directors 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
/@U/ASIL TIX synthetic fibres and polymers APPENDIX 28
Slide 29: EBITDA and EBIT Adjusted
EBITDA and EBIT Adjusted RECONCILIATION FROM NET PROFIT TO At December 31, At December 31, Fourth Fourth EBITDA €/000 2018 2017 Quarter 2018 Quarter 2017 Net Profit (Including Portion Attr. to Minority ) 30.097 25.216 5.742 7.460 Income Taxes 6.986 2.796 784 (5.627) Investment income and charges - (
Slide 30: Income Statement
Income Statement CONSOLIDATED INCOME STATEMENT December of wich December of wich Forth Quarter of wich Fourth of wich €/000 2018 non-current 2017 non-current 2018 non-current Quarter 2017 non-current Revenue 555.220 528.333 124.288 - 125.100 - of which related parties 218 297 13 - 53 - Other Revenue
Slide 31: Balance Sheet
Balance Sheet CONSOLIDATED BALANCE SHEET Al 31 December At December 31, €/000 2018 2017 Intangible Assets 15.992 7.782 Tangible Assets 189.661 153.927 Financial Assets 404 408 of which related parties 79 79 Other Assets 2.189 - Deferred Tax Assets 7.841 11.356 Total Non-Current Assets 216.087 173.47
Slide 32: Cash Flow Statement
Cash Flow Statement CASH FLOW STATEMENT At December 31, At December 31, €/000 2018 2017 Operation Activities Net Profit (Including Portion Attr. to Minority ) 30.097 25.216 of which related parties -3.438 -4.094 Income Taxes 6.986 2.796 Income (loss) from Investments -50 Other Financial Income -45 -
Slide 33: Net Financial Debt
Net Financial Debt 2017 - 2016 NET FINANCIAL DEBT At December, At December 31, €/000 2018 2017 A. Cash 103.277 99.024 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 103.277 99.024 E. Current financial receivables 2.878 988 F. Current bank loans and borrowi
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