Slide 1: Aquafil Group Financial Results First Half 2020
Aquafil Group Financial Results First Half 2020 28th August 2020
Slide 2: Index Page
Index Page 1. KEY MESSAGES 3 2. 1H2020 RESULTS 5 2.1. P&L DETAILS 7 2.2. NET FINANCIAL POSITION DETAILS 13 3. OUTLOOK 17 4. APPENDIX 20 2
Slide 3: 1. Key Messages
A@UAFIL synthetic fibres and polymers 1. KEY MESSAGES
Slide 4: Clear path ahead
Clear path ahead STRONG GROUP REACTION CONFIDENT IN GROUP FUTURE EXTRAORDINARY EFFORTS OF ALL OF US CLEAR PATH AHEAD “CIRCULARITY” IN OUR DNA BUSINESS CONTINUITY, IN OUR STRATEGY 2019 SAVINGS PLAN AND AND DRIVING OUR FUTURE PROMPLY ADOMPTED COUNTERMISURES MINIMISED FLOW THROUGH LEVERAGE OUR PEOPLE N
Slide 5: 2. 1H2020 Results
A@UAFIL synthetic fibres and polymers 2. 1H2020 RESULTS
Slide 6: Effectively minimising negative flow through
Effectively minimising negative flow through REVENUES EBITDA NET PROFIT NFP 2019 2020 ∆% 2019 2020 ∆% 2019 2020 ∆% FY2019 1H2020 ∆% HALF 286,8 222,7 (22,3%) HALF 39,1 26,9 (31,2%) HALF 10,7 (1,9) n.s. 249,6 242,2 (2,90%) % on net sales 13,6% 12,1% % on net sales 3,7% n.s. QUARTER 141,3 82,0 (42,0%)
Slide 7: 2.1. 1H2020 Results – P&L Details
2.1. 1H2020 RESULTS – P&L DETAILS 7
Slide 8: All region and product lines severely impacted
All region and product lines severely impacted HALF BCF NTF POLYMERS TOTAL 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% EMEA 108,7 82,4 (26,3) (24,2%) 48,7 37,4 (11,4) (23,3%) 19,2 13,5 (5,8) (29,9%) 176,7 133,3 (43,4) (24,6%) North America 55,8 41,9 (13,8) (24,8%) 2,9 10,4 7,6 n.a. 3
Slide 9: A different path for ECONYL
A different path for ECONYL ® • Sales: reduction of 14,7% in 1H2020 and of 28% in 2Q2020 - end markets impacted later in the period • % on net sales: 40,9% in 1H2020 - 2Q incidence peak influenced by demand evolution 120,0% INCIDENCE on NET SALES INCIDENCE on NET SALES 120,0% 100,0% 100,0% 80,0% 37,
Slide 10: Prompt and effective actions to mitigate Covid-19
Prompt and effective actions to mitigate Covid-19 Sites: prompt adoption stricter safety measures, including new sites protocol and working practice BUSINESS CONTINUITY HQs progressive adoption of remote working Customers: on-going support and services PROFITABILITY Activation of Government social s
Slide 11: Business continuity and labour efficiency
Business continuity and labour efficiency • Delivery of 2019 saving plans almost in line with expectations • Group strong efforts to minimize sales decline are paying off - Business continuity - Exceptional effort in labour efficiency EBITDA EVOLUTION 6,6 (25,7) 39,1 7 26,9 Data in € million 11
Slide 12: Net Result influenced by depreciation too
Net Result influenced by depreciation too QUARTER HALF 2019 2020 ∆% 2019 2020 ∆% REVENUES 141,3 82,0 (42%) 286,8 222,7 (22%) EBITDA 20,0 8,7 (57%) 39,1 26,9 (31%) • Depreciation: +€ 5,2m driven Margin % 14,1% 10,6% 13,6% 12,1% by 2018-2019 CAPEX peak and O’Mara consolidation EBIT 8,1 -5,3 n.s. 17,1
Slide 13: 2.1. 1H2020 Results – Net Financial Position Details
2.1. 1H2020 RESULTS – NET FINANCIAL POSITION DETAILS 13
Slide 14: Prompt and effective actions to mitigate Covid-19
Prompt and effective actions to mitigate Covid-19 NWC Proactive and efficient inventories management CASH CAPEX Focus on operating CAPEX GENERATION M&A Temporary suspension of M&A process NEW LOANS € 40 million new medium-long term loans DEBT FINANCIAL Extension of all medium-long term facilities MA
Slide 15: NFP decreasing trend
NFP decreasing trend 100,0 CAPEX EVOLUTION (1) 75,0 50,0 69 55 25,0 34,3 15,6 0,0 2017 2018 2019 1H2020 NFP EVOLUTION CASH GENERATION: € 7.4 (249,6) 22,7 4,2 (4) (15,6) (242,2) Data in € million – (1) Excluding cash out for M&A activities 15
Slide 16: Further enhancement of liquidity
Further enhancement of liquidity • 2 new medium long-term for a total amount of € 40 million - Further increase of liquidity • Extended all medium-term facilities • “Covenant holiday” on 30 June 2020 150 GROSS DEBT MATURITY (1) 150 LIQUIDITY EVOLUTION 125 125 133 100 100 103 75 99 100 98 90 75 50 66
Slide 17: 3. Trading Update and 2020 Outlook
3. TRADING UPDATE AND 2020 OUTLOOK 17
Slide 18: Summer recovery driven by Asia-Pacific region
Summer recovery driven by Asia-Pacific region • Asia and Oceania driving recovery thanks to “Fiber for carpet” (BCF) • NTF demand stronger than last year in North America • ECONYL® demand recovering gradually «FIRST GRADE PRODUCT» REVENUES (1) 1Q2020 2Q2002 July-August 0,0% (4,3%) -10,0% (23,2%) -20
Slide 19: Profitability recovery in 2H2020
Profitability recovery in 2H2020 Assuming no COVID-19 resurge and no further lockdowns in 2H2020: • Revenues: summer trend substantially confirmed • EBITDA: on-going benefits from 2019 savings plan, COVID-19 countermeasures (1) and moreover a positive evolution of sales mix both in term of regions a
Slide 20: 4. Appendix
A@UAFIL synthetic fibres and polymers 4. APPENDIX 20
Slide 21: 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 22: 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 23: Consolidate Income Statement
Consolidate Income Statement CONSOLIDATED INCOME STATEMENT Half Year of wich Half Year of wich Second of wich Second of wich €/000 2020 non- 2019 non- Quarter 2020 non- Quarter 2019 non- Revenue 222.733 current - 286.667 current - 82.019 current 166 141.339 current - of which related parties 27 29 -
Slide 24: Consolidate Income Statement – Sales details – 2Q
Consolidate Income Statement – Sales details – 2Q 2QUARTER BCF NTF POLYMERS TOTAL 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% EMEA 53,9 30 (23,9) (44,3%) 22,5 12,4 (10,1) (44,7%) 9,1 5,1 (4,0) (44,1%) 85,5 47,5 (38,0) (44,4%) North America 26,3 17,1 (9,2) (35,0%) 2,9 3,5 0,6 22,1% 2,
Slide 25: Consolidate Income Statement – EBITDA Adjusted
Consolidate Income Statement – EBITDA Adjusted RECONCILIATION FROM NET PROFIT TO EBITDA €/000 Half Year Half Year Second Second 2020 2019 Quarter 2020 Quarter 2019 Net Profit (Including Portion Attr. to Minority ) (1.935) 10.654 (6.012) 2.958 Income Taxes 371 3.637 (1.201) 1.757 Amortisation & Depre
Slide 26: Consolidate Balance Sheet
Consolidate Balance Sheet CONSOLIDATED BALANCE SHEET At June 30, At December 31, €/000 2020 2019 Intangible Assets 22.265 21.101 Goodwill 13.071 13.029 Tangible Assets 244.154 251.492 Financial Assets 677 765 of which related parties 313 313 Other Assets 1.336 2.189 Deferred Tax Assets 10.577 13.636
Slide 27: Net Financial Position
Net Financial Position NET FINANCIAL DEBT At June 30, At December 31, €/000 2020 2019 A. Cash 132.774 90.400 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 132.774 90.400 E. Current financial receivables 853 1.637 F. Current bank loans and borrowing (72) (
Slide 28: Net Financial Position – Evolution and details
Net Financial Position – Evolution and details 400 300 NFP EVOLUTION 200 250 242 100 157 112 0 2017 2018 2019 1H2020 BREAKDOWN By CURRENCY BREAKDOWN by COUPON (1) 1% 58% 42% 99% Euro USD Fixed Floating Data in € million - (1) Excluding lease liabilities 28
Slide 29: Additional financial information
Additional financial information (1) AMOUT COVENANTS ( 2 ) BORROWINGS - 30 June 2020 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 < 3.75 Privat
Slide 30: Cash Flow Statements
Cash Flow Statements CASH FLOW STATEMENT At June 30, At June 30, €/000 2020 2019 Operation Activities Net Profit (Including Portion Attr. to Minority ) -1.935 10.654 of which related parties -342 -360 Income Taxes 371 3.637 Income (loss) from Investments -197 -1.100 Other Financial Income 4.241 3.71
Slide 31: Investors Contact
Investors Contact: Karim Tonelli Investor Relations & Performance Management Director karim.tonelli@aquafil.com Mob: +39 348 60 22 950 31