Slide 1: Aquafil Group 1H2021 Financial Results
Aquafil Group 1H2021 Financial Results 1st September 2021
Slide 2: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 2
Slide 3: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 3
Slide 4: 1H2021 – Consistent steps on circularity and results improvements
1H2021 – Consistent steps on circularity and results improvements CONSISTENT DELIVERY DELIVERY WILL GO FURTHER OF OUR PROMISES WITHOUT UNCERTAINTIES PAST ACTIONS AND ON-GOING FOCUS PROFITABILITY AND NFP ENSURED IMPROVEMENT TO CONSISTENTLY IMPROVE RESULTS MAIN 2021 FINANCIAL TARGETS IMPORTANT STEPS I
Slide 5: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 33 5
Slide 6: 1H2021 enhances Group improvement commitments
1H2021 enhances Group improvement commitments REVENUES EBITDA NET PROFIT NFP 2020 2021 ∆% 2020 2021 ∆% 2020 2021 ∆% 31.12.2020 30.06.2021 ∆% 1HALF 222.7 274.7 23.3% 1HALF 26.9 39.3 46.4% 1HALF (1.9) 8.9 n.s. 218.7 184.7 15.6% % on net s a l es 12.1% 14.3% % on net s a l es (0.9%) 3.2% 2QUARTER 82.0
Slide 7: Revenues – Components – Group volumes above 2019
Revenues – Components – Group volumes above 2019 (1) • 2Q2021: volumes up by more than 5% compared to 2Q2019 – Volume: up by more than 75% compared to 2Q2020 – Price & sales mix: still slightly negative impact but having improved thanks to progressive selling price adjustment to raw material price v
Slide 8: Revenues – Components – Polymers drove EMEA strong volumes
Revenues – Components – Polymers drove EMEA strong volumes (1) Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on 1H
Slide 9: Revenues – Components – NTF better than BCF in North America
Revenues – Components – NTF better than BCF in North America (1) Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on
Slide 10: Revenues – Components – Strong year start
Revenues – Components – Strong year start (1) Considering the material difference of Covid-19 outbreak impact in 2020 between 1Q and 2Q on Group results and to allow for greater comparability, 2021 volumes are compared to both 2019 and 2020 while qualitative comments are based on 1H2021 trend VOLUME
Slide 11: Revenues – Components – Average selling price
Revenues – Components – “Average selling price” (1) • Group “average selling price” of a reporting period is the result of “sales mix evolution” and “selling price” agreed with customers • “Sales mix evolution” ‒ Among 3 Group product lines: BCF, NTF and Polymers ‒ Inside each product lines, conside
Slide 12: Revenues – Components – Average selling price – Illustrative example
Revenues – Components – “Average selling price” – Illustrative example (1) • “Formula based” contracts foresee periodical adjustments to reflect caprolactam (CPL) price variation and cover the majority of BCF and NTF revenues ‒ most adjustments are implemented on quarterly bases considering the pric
Slide 13: Revenues – Polymers almost double their weight
Revenues – Polymers almost double their weight 120% REVENUES BREAKDOWN by PRODUCT LINE (1) 120% 100% 8.0% 7.6% 100% 17.3% 8.0% 7.5% 14.1% 80% 18.5% 20.4% 80% 18.6% 22.4% 20.1% 21.3% 6.9% 7.3% 7.7% 60% 60% 21.4% 22.1% 40% 73.5% 72.0% 40% 62.6% 73.4% 70.0% 64.6% 20% 20% 73% 0% 71.7% 0% 2Q2019 2Q2020 2
Slide 14: Revenues – ECONYL – Going back to normality
Revenues – ECONYL® – Going back to normality • 2Q-1H2021: going back to normality after the pandemic impact on ECONYL® demand in 2020 ‒ between 1Q and 2Q2020 especially BCF “contract” clients-built warehouse stocks to face possible production block due to lockdown measures, having postponed demand d
Slide 15: Revenues – ECONYL – BCF the support and NTF the accelerator
Revenues – ECONYL® – BCF the support and NTF the accelerator • ECONYL® has been an acceleration growth driver for the Group through both the strengthening of relationship with consolidated customers and the attraction of new ones ‒ BCF sector historically drove ECONYL® development due to the earlier
Slide 16: EBITDA – Even in line with 1H2019
EBITDA – Even in line with 1H2019 • € 39.3m compared to € 39.1 of 1H2019 – Positive impact of strong volumes increase driven by Polymers – Consolidation of 2019 savings plan and of some of COVID-19 actions • 1H2021 impacted by the slow recovery of “contract BCF and still not fully benefitted of pass
Slide 17: P&L – Volume recovery and ongoing efficiency
P&L – Volume recovery and ongoing efficiency 2QUARTER 1HALF 2020 2021 ∆% 2020 2021 ∆% REVENUES 82.0 144.1 75.6% 222.7 274.7 23.3% EBITDA 8.7 21.0 142.7% 26.9 39.3 46.4% % on net sales 10.6% 14.6% 12.1% 14.3% EBIT (5.3) 8.0 n.s. (0.1) 14.1 n.s. % on net sales n.s . 5.5% 0.0% 5.1% EBT (7.2) 6.3 n.s. (
Slide 18: NFP – NPF/EBITDA LTM at 2.6x
NFP – NPF/EBITDA LTM at 2.6x • NFP improved by 15.6% compared to December 2020 – Results of action taken in 2019 and strengthened in the COVID action plan – NPF/EBITDA LTM at 2.6x – The gradual lifting of emergency measures suggested to make early payments of some medium-to-long-term bank loans: liq
Slide 19: NFP – Strong focus on NWC and CAPEX
NFP – Strong focus on NWC and CAPEX • CAPEX equal to € 13.9m, almost in line with 1H2020 100 CAPEX EVOLUTION (1) – In accordance Group CAPEX guidelines, 75 11.2% capacity and technological improvements 10.1% 50 6.1% • A consistent focus on NWC allowed cash generation 25 62 55 5.2% despite impact of
Slide 20: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 20
Slide 21: Group development – Development in Japan
Group development – Development in Japan • In February important development steps were taken to expand Group presence in Japan – At BCF product line level: establishment of Aquafil Japan Co., Ltd., based in Tokyo, 100% owned by Aquafil S.p.A.: the subsidiary will transform and market polymers and s
Slide 22: Group development – February 2021 – BCF in Japan
Group development – 12 February 2021 – BCF in Japan ‒ More recent trends o Strong cultural sensitiveness to environmental and sustainability topics ▪ extremely positive recognition for ECONYL® o Some signs of a primary competitor withdrawal • Group is focusing its activities to built relationship wi
Slide 23: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 23
Slide 24: Aquafil sustainability path – important steps in 2020
Aquafil sustainability path – 2 important steps in 2020 • In 2020 Aquafil undertook two important steps in its sustainability path ‒ Reflect in Group Corporate Governance sustainability DNA o Expansion and integration of the activities of the "Control and Risks" Committee entrusting it with sustaina
Slide 25: Aquafil sustainability path – further steps in 1H2021
Aquafil sustainability path – 2 further steps in 1H2021 • Introduction of sustainability KPI in the new remuneration policy (1) – Senior Executives remuneration is structured to focus management on company results and value creation – It is composed of a fixed part, a short term-term variable compon
Slide 26: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 26
Slide 27: 2021 Outlook – Trading updating – Acceleration in summer
2021 Outlook – Trading updating – Acceleration in summer • Momentum improved in summer, even if data are less easy to assess compared to the past ‒ In term of Group performance o EMEA: polymers still best in class, “contract” BCF recovery going on o North America: “contract” BCF recovery confirmed,
Slide 28: 2021 Outlook – 2021 Group improving expectation enhanced
2021 Outlook – 2021 Group improving expectation enhanced • The expectations of a positive development in the health crisis caused by the Covid-19 pandemic and the benefits expected from the extension of the vaccine campaign suggest that the expansionary phase of the world economy, already noticeable
Slide 29: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX 34 29
Slide 30: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX – DISCLAIMER AND DEFINITIONS 35 30
Slide 31: Disclaimer
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 t
Slide 32: Definitions
Definitions “First choice revenues” are revenues generated by the sale of fibers and polymers, gross of any adjustments «FIRST CHOICE (for example, discounts and allowances), but excluding revenues generated by “non-first choice products”, REVENUES» revenues generated by Aquafil Engineering GmbH and
Slide 33: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX – SECTOR DATA 38 33
Slide 34: Sector Data – Caprolactam price evolution
Sector Data – Caprolactam price evolution 2018-2021 CPL QUARTERLY PRICE EVOLUTION (1-2) 3,000 CPL 4Q2020 vs. 4Q2019: -14% 2,500 CPL 1Q2021 vs. 1Q2020: +6% 2,000 1,500 1,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q22 (1) Source: Tecnon Orbichem, n° 495, July 2021– CPL
Slide 35: Index Page
Index Page 1. KEY MESSAGES 4 2. 1H2021 RESULTS 6 3. GROUP DEVELOPMENTS 24 4. SUSTAINABILITY PATH 28 5. OUTLOOK 31 6. APPENDIX – GROUP DATA 40 35
Slide 36: Consolidate Income Statements
Consolidate Income Statements CONSOLIDATED INCOME STATEMENT of wich non- of wich non- of wich non- of wich non- 1H2021 1H2020 2Q2021 2Q2020 €/000 current current current current Revenue 274,700 222,733 144,060 82,019 166 of which related parties 27 27 14 - - Other Revenue 2,685 443 3,371 226 1,859 4
Slide 37: Consolidate Income Statements – Revenues details
Consolidate Income Statements – Revenues details 2QUARTER BCF NTF POLYMERS TOTAL 2020 2021 ∆ ∆% 2020 2021 ∆ ∆% 2020 2021 ∆ ∆% 2020 2021 ∆ ∆% EMEA 30 47.2 17.2 57.3% 12.4 20.3 7.8 63.1% 5.1 22.6 17.6 346.2% 47.5 90.1 42.6 89.6% North America 17.1 21.7 4.6 27.1% 3.5 6.6 3.1 89.6% 1.2 2.1 0.9 78.5% 21.
Slide 38: Consolidate Income Statements – EBITDA details
Consolidate Income Statements – EBITDA details RECONCILIATION FROM NET PROFIT TO EBITDA 1H2021 1H2020 2Q2021 2Q2020 €/000 Net Profit (Including Portion Attr. to Minority ) 8,911 (1,935) 5,417 (6,012) Income Taxes 2,078 371 863 (1,201) Amortisation & Depreciation 23,312 21,754 11,984 10,921 Write-dow
Slide 39: Consolidate Balance Sheet
Consolidate Balance Sheet CONSOLIDATED BALANCE SHEET At June 30 2021 At December 31 2020 €/000 Intangible Assets 23,329 23,578 Goodwill 14,043 13,600 Tangible Assets 226,548 229,495 Financial Assets 648 650 of which related parties 313 313 Other Assets 1,636 1,336 Deferred Tax Assets 11,818 14,563 T
Slide 40: Consolidate Balance Sheet – Gross debt details
Consolidate Balance Sheet – Gross debt details AMOUT COVENANTS ( 2 ) BORROWINGS - 30 June 2021 ISSUE DATE CURRENCY COUPON ( 1 ) MATURITY Total Drawn Undrawn Parameters Reference Check Private Placement B Sept 2018 EUR 4.70% Sept 2028 50 50 0 EBITDA / Net financial charges > 3.5 Net Debt / EBITDA < 4
Slide 41: Net Financial Position
Net Financial Position 400 NET FINANCIAL DEBT €/000 At June 30 2021 At December 31 2020 NFP EVOLUTION A. Liquidity 165,854 208,954 300 B. Cash and cash equivalents 0 0 C. Other current financial assets 8,359 834 D. Liquidity (A + B + C) 174,213 209,787 E. Current financial debt 200 (including debt i
Slide 42: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement CASH FLOW STATEMENT At June 30 2021 At June 30 2020 €/000 Operation Activities Net Profit (Including Portion Attr. to Minority ) 8,911 (1,935) of which related parties (299) (342) Income Taxes 2,078 371 Financial income (491) (197) Financial charges 3,822 4,241 of wh