Aquafil Spa · MIL:ECNL
Aquafil Spa — Investor Presentation (September 2019)
32 slides from Aquafil Spa's investor presentation, Sep 4, 2019
Slide 1: Corporate Presentation – Industrial Day
AQUAFIL Corporate Presentation Industrial Day Milan, 4th September 2019
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 O’Mara Incorporated In US 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 producin
Slide 6: Aquafil Worldwide
Global Footprint with proximity to Clients AQUAFIL WORLDWIDE USA UK CROATIA CHINA Cartersville (Georgia) Kilbirnie Oroslavje Jiaxing Aquafil USA 1 & 2 Aquafil UK Aquafil CRO Aquafil Jiaxing Phoenix (Arizona) Aquafil Carpet Recycling GERMANY SLOVENIA THAILAND ACR#1 Leuna Ljubljana Rayong Aqualeuna Aq
Slide 7: Product Lines
Product Lines Contribution to Key Applications 2018 European PA Market Shares (1) Revenues H1 2019 A Contract Fiber for carpet flooring Residential 73,4% BCF Product Automotive B Clothing & Fashion Fiber for fabric Swimwear ca. 18,6% 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 A leading player with limited competition. Europe’s core focus is on high-end Only 3 suppliers capable of offering products production. Fast fashion needs lead to starting from monomer and
Slide 11: Fiber for Fabric - Flexible & Competitive Asset Base
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 & 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 a new model for business
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 collect
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 Financial: Revenues and EBITDA
Key Financial Revenues (€m) Revenues by Product Line H119 are composed by (a) 73,4% of fiber for carpet (BCF) product, including Engineering activities, (b) 18,6% of fiber for fabric (NTF) product and (d) 9,4% of Polymers and are carried out for (i) 51,6% EMEA (ii) 21,6% North America (iii) 16,6% As
Slide 22: Key Financial: Net Profit and Capex
Key Financial Net Profit (€m) and Margin on Revenues (%) 1,9 2,9 4,3 4,8 4,8 6,7 5,4 3,7 % % % % % % % % Capex (€m) Capex H1 2019 does not consider effects of O’Mara Incorporated acquisition and of IFRS16 and is mainly relating to (i) increase of ECONYL® caprolactam production capacity including by
Slide 23: Key Financial: Net Financial Debt and Cash Flow
Key Financial Net Financial Debt (€m) and Net Financial Debt / EBITDA(1) 3,4 2,8 1,8 2,3 1,5 1,9 2,0 2,9 H1 2019 equal to 197,2 is adjusted reducing effect of O’Mara acquisition (36,6 €/mil) and IFRS16 (29,7€ €/mil). Increase of 39,9 €/mil is mainly related to (i) +33,8 €/mil of cash flow from opera
Slide 24: Ownership Structure
Ownership Structure 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 25: Corporate Governance
Corporate 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 Bet
Slide 26: Appendix
A@UAFIL synthetic fibres and polymers APPENDIX 26
Slide 27: EBITDA and EBIT Adjusted Reconciliation
EBITDA and EBIT Adjusted RECONCILIATION FROM NET PROFIT TO EBITDA Half Year Half Year Second Quarter Second Quarter €/000 2019 2018 2019 2018 Net Profit (Including Portion Attr. to Minority ) 10.654 19.614 2.958 9.764 Income Taxes 3.637 5.424 1.757 2.827 Amortisation & Depreciation 16.574 12.364 8.5
Slide 28: Consolidated Income Statement
Consolidated Income Statement CONSOLIDATED INCOME STATEMENT Half Year of wich Half Year of wich Second Quarter of wich Second Quarter of wich €/000 2019 non-current 2018 non-current 2019 non-current 2018 non-current Revenue 286.667 291.291 141.339 150.484 of which related parties 29 188 12 47 Other
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet CONSOLIDATED BALANCE SHEET At June 30, At December 31, €/000 2019 2018 Intangible Assets 17.138 15.992 Goodwill 14.040 - Tangible Assets 252.001 189.661 Financial Assets 750 404 of which related parties 312 79 Other Assets 2.191 2.189 Deferred Tax Assets 6.802 7.841 Total
Slide 30: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement CASH FLOW STATEMENT At June 30, At June 30, €/000 2019 2018 Operation Activities Net Profit (Including Portion Attr. to Minority ) 10.654 19.614 of which related parties -360 -1.637 Income Taxes 3.637 4.975 Other Financial Income -1.100 -17 Interest Expenses 3.717 3.
Slide 31: Net Financial Debt
Net Financial Debt NET FINANCIAL DEBT At June 30, At December 31, €/000 2019 2018 A. Cash 89.032 103.277 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 89.032 103.277 E. Current financial receivables 1.525 2.878 F. Current bank loans and borrowing (132) (9
Slide 32: Investors Contact
Investors Contact: Karim Tonelli Investor Relations & Performance Management Director karim.tonelli@aquafil.com Mob: +39 348 60 22 950 32