Aquafil Spa · MIL:ECNL
Aquafil Spa — Investor Presentation (November 2023)
23 slides from Aquafil Spa's investor presentation, Nov 21, 2023
Slide 1: Main goals and Financial Targets 2023 – 2025
Main goals and Financial Targets 2023 – 2025 [ECNL:IM] - [ECNLF: OTCQX] November 21, 2023
Slide 2: Introduction
Introduction CEO – Giulio Bonazzi Chair – Chiara Mio Financial results and strategy o 2023 current trading o 2024 – 2025 Expected CEO – Giulio Bonazzi CFO – Roberto Bobbio Q&A session Closing 2
Slide 3: 4Q 2023 current trading - volumes
4Q 2023 current trading - volumes Overall, the Group quantities in October ‘23 are higher of ca. 15% vs October ‘22 Oct 23 Quantity Variation % vs Oct 22 (on First Grade Product Revenues) 50,0% USA Europe Asia 30,0% in line with 4Q increase of BCF Pacific 2022 and Polymers confirms the notwithstandi
Slide 4: FY 2023 – Key Messages
FY 2023 – Key Messages Key messages • Volumes: Expected FY 2023 range (3)% - (4)% vs FY 2022 • Strong stock impact related to high unit value of the 2022 inventories compared to the yearly market value of raw materials 23 - 25 €/mln FY 2023 FY23 expected results • EBITDA target: 45 – 50 €/mln • EBIT
Slide 5: FY 2023 – Key Messages
FY 2023 – Key Messages Ongoing actions • Production costs management to maintain the efficiency of variable costs; • Reduction in personnel costs; • Rationalization of working capital; • High manufacture capital quality and saturation level lead to lower investments; • R&D continuous effort (ca. 2%
Slide 6: Volumes by business lines ('23E vs '22E)
Volumes by business lines (‘23E vs ‘22E) Overall volumes decrease range 3% – 4% ECONYL® branded products volumes remain stable 20,0% 16% - 18% 10,0% BCF - Carpet yarn substantially stable 0,0% (3)% - (4)% (2)% - (4)% (10,0%) (20,0%) (20)% - (22)% (30,0%) Polymers Group BCF NTF Polymers sharp start o
Slide 7: Stock impact
Stock impact Caprolactam market price evolution (€/ton) 4.000 1Q21 vs 3Q22 3.500 +70% 3.000 3Q22 vs 3Q23 – 40% 2.500 2.000 1.500 3.500 1.000 3.000 2.500 2.000 1.500 Source: market data 7 LTM – 28%
Slide 8: FY 2023E – EBITDA and EBITDA Adjusted
FY 2023E – EBITDA and EBITDA Adjusted 23 - 25 68 - 70 57,0 (20,0) 13,5 – 14,5 (4) – (5) 45 - 50 37,0 8
Slide 9: FY 2023E – EBITDA adjusted
FY 2023E – EBITDA adjusted EBITDA affected approximately €23-25 €/mln by strong stock impact related to high unit value of the 2022 inventories compared to the 2023 market value of raw materials. 23 – 25 68 - 70 45 - 50 9
Slide 10: 2024 – 2025 Expected
2024 – 2025 Expected Our view for the future • Volumes • EBITDA • NFP 10
Slide 11: Volumes by business lines ('24E vs '23E)
Volumes by business lines (‘24E vs ‘23E) Overall volumes increase in all product lines from +4% to +7% at Group level Raw material price in line with last months of 2023 BCF - Carpet yarn NTF - Textile yarn Polymers From +3% to +6% From +13% to +16% From +6% to +9% 11
Slide 12: Volumes ('24E vs '23E)
Volumes (‘24E vs ‘23E) Continues growth of ECONYL® Branded Products USA Europe Asia BCF market growth BCF market growth NTF product line Pacific NTF recovering market recovery BCF Polymers new best macro area prospective expected reinforced by the increase in Engineering Plastics volumes business 12
Slide 13: Volumes by business lines ('25E vs '24E)
Volumes by business lines (‘25E vs ‘24E) Overall volumes increase in all product lines from +6% to +9% at Group level Raw material price slightly increased (+5%) compared 2024 BCF - Carpet yarn NTF - Textile yarn Polymers From +4% to +7% From +8% to +11% From +14% to +17% 13
Slide 14: Volumes ('25E vs '24E)
Volumes (‘25E vs ‘24E) Continues growth of ECONYL® Branded Products USA Europe Asia BCF growing market BCF continues NTF complete recovery growth Pacific NTF still recovering BCF but below 2022 growing market levels Polymers expansion of the business 14
Slide 15: 2025 target 60% of revenues generated by fibers
2025 target % of revenues from ECONYL® branded products 60% 60% of revenues 50% 40% generated by fibers 30% from 20% 10% 0% ECONYL® Branded 2018 2019 2020 2021 2022 3Q23 2025 Products 15
Slide 16: Efficiencies
Efficiencies • Headcounts reduction (e.g. Aquafil UK and European manufacturing sites) • Productivity increase (e.g. plant utilization rate) • Energy efficiencies • Cost-effectiveness initiatives 16
Slide 17: EBITDA ('23E vs '25E)
EBITDA (‘23E vs ‘25E) €/mln 4-5 84 - 92 4-5 3-5 76 - 82 5-7 68 - 70 o Cumulative savings expected from efficiencies 9 - 12 €/mln o Cumulative increase expected from volumes 7 - 10 €/mln 17
Slide 18: 2023E – 2025E Net financial position
2023E – 2025E Net financial position €/mln 50 - 60 mln of cumulated NFP generated in two years 250 – 260 76 – 82 24 – 29 225 – 235 84 - 92 25 – 30 24 – 27 190 – 200 25 – 30 ** * ** * ** *CAPEX does not include effect of IFRS 16 and related impact on NFP **Positive means debt 18
Slide 19: Q&A session
Q&A session 19
Slide 20: Appendix
Appendix 20
Slide 21: Appendix - Disclaimer
Appendix - 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
Slide 22: Appendix - Definitions
Appendix - Definitions This is an alternative performance indicator not defined under IFRS but used by company management to monitor and assess the operating performance as not impacted by the effects of differing criteria in determining taxable income, the amount and types of capital employed, in a
Slide 23: Karim Tonelli - CPO & IR
www.aquafil.com www.econyl.com www.dryarn.com Karim Tonelli - CPO & IR karim.tonelli@aquafil.com Mob: +39 3486022950