Aquafil Spa · MIL:ECNL
Aquafil Spa — Q3 2021 Earnings Presentation
39 slides from Aquafil Spa's earnings presentation, Nov 11, 2021
Slide 1: Aquafil Group 3Q & 9M 2021 Financial Results
Aquafil Group 3Q & 9M 2021 Financial Results 11th November 2021
Slide 2: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 2
Slide 3: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 3
Slide 4: Key Messages
Key Messages COMPARED TO 2020 AND 2019 ALL FINANCIAL RESULTS SHOWS GROWING TRENDS BACK ON TO THE ENGINEERING RECOVERY OF DEMAND FOR ECONYL® PLASTICS MARKET BRAND PRODUCTS CA €10 MILLION INVESTMENT U.S. CONTRACT SEGMENT ALREADY RECOGNIZED IN 2021 BEGAN TO RECOVER IN Q3 START-UP IN 1Q22 AND SHOWS EXCE
Slide 5: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 5
Slide 6: 3Q2021 Main Results
3Q2021 Main Results REVENUES EBITDA NET PROFIT NFP 2021 2020 Δ% 2021 2020 Δ% 2021 2020 Δ% 31.12.20 30.09.21 Δ% 3Q YTD 419,3 327,9 27,9% 3Q YTD 59,6 40,1 48,7% 3Q YTD 14,3 (2,9) - 3Q YTD (218,7) (183,6) 19,1% % on Revenues 14,2% 12,2% % on Revenues 3,4% -0,9% 3Q 144,6 105,2 37,5% 3Q 20,2 13,2 53,3% 3
Slide 7: Revenues – by Components
Revenues – by Components • 3Q2021: volumes increase of ca 8% compared to 3Q19 – Volume: ca +18% compared to 3Q20 – Price & sales mix: positive impact thanks to selling price adjustment to raw material price variation • 3QYTD2021: volumes increase of ca 4% compared to 3QYTD19 – Volume: ca +25% compar
Slide 8: Revenues – Components – Quantity
Revenues – Components – Quantity EMEA: volumes ca +34% vs 3QYTD20 and +37% vs 3Q20 and +7% vs 3QYTD19 and +16% vs 3Q19 – BCF: recovery consolidation of “residential” and “automotive” market; – NTF: ECONYL® branded products continues to grow; – Polymers: best in class of growth in the region, with ou
Slide 9: Revenues – Components – Quantity
Revenues – Components – Quantity USA: volumes ca +7% vs 3QYTD20 and +4% vs 3Q20 and -1% vs 3QYTD19 and -2% vs 3Q19 – BCF: in 3Q higher recovery of year thanks to “automotive” market; – NTF: consolidates the growth 9 In BCF, especially in first part of 2019, Group benefitted from the withdrawal by a
Slide 10: Revenues – Components – Quantity
Revenues – Components – Quantity ASIA PACIFIC: volumes ca +21% vs 3QYTD20 and -17% vs 3Q20 and +3% vs 3QYTD19 and -9% vs 3Q19 – BCF: in 3Q YTD good performance of “residential”, with a slow down in the 3Q due to the lock down measures in Oceania. 10 In BCF, especially in first part of 2019, Group be
Slide 11: Revenues – Breakdown by Product Line and Area
Revenues – Breakdown by Product Line and Area (1) O’Mara Incorporated consolidated since 31st May 2019 (2) Rest of World not included 11
Slide 12: Revenues – ECONYL®
Revenues – ECONYL® • Back to normality after the pandemic impact on ECONYL® demand in 2020 ‒ between 1Q and 2Q20 in BCF “contract” customers-built warehouse stocks to face possible production breakdown due to COVID restrictive measures. • NTF trend again better than BCF ‒ BCF demand still influenced
Slide 13: Revenues – ECONYL® – BCF the support and NTF the accelerator
Revenues – ECONYL® – BCF the support and NTF the accelerator • ECONYL® has represented an accelerator driver for the Group growth both by strengthening relationship with consolidated customers and the attracting new ones ‒ BCF sector historically drove ECONYL® development due to cultural sensitivene
Slide 14: EBITDA – Strong recovery driven by volumes
EBITDA – Strong recovery driven by volumes • € 59,6 m in 3Q21YTD compared to € 40,1 m of 3Q20YTD and € 54,9 m of 3Q19YTD – Strong impact of volumes increase; – Consolidation of 2019 savings plan and – some of COVID-19 actions. • During 3Q21 impact of higher utility costs. 14
Slide 15: P&L – KPI
P&L – KPI 3Q 3QYTD 2021 2020 ∆% 2021 2020 ∆% REVENUES 144,6 105,2 37,5% 419,3 327,9 27,9% EBITDA 20,2 13,2 53,3% 59,6 40,1 48,7% % on net sales 14,0% 12,5% 14,2% 12,2% EBIT 8,3 0,2 - 22,3 0,2 - % on net sales 5,7% 0,2% 5,3% 0,0% EBT 7,0 (1,4) - 18,0 (3,0) - % on net sales 4,8% -1,3% 4,3% -0,9% NET R
Slide 16: NFP – NPF/EBITDA LTM at 2.36x
NFP – NPF/EBITDA LTM at 2.36x • NFP on 30th September 2021 equal to 183,6 €/mil, improved by 19,1% compared to December 2020 • Ratio NPF/EBITDA LTM at 2,36x 242 157 112 16
Slide 17: NFP – Focus on NWC and CAPEX
NFP – Focus on NWC and CAPEX • CAPEX equal to € 23,9m mainly related to the capacity and technological improvements including partially EP investments. • The focus on NWC allowed cash generation despite impact on both turnover growth and raw material price increase 46,2% 37.4% 7 5 17 39 7 27 (1) Net
Slide 18: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 18
Slide 19: 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 20: Group development – Development in Japan
Group development – Development in Japan ‒ More recent trends o Strong cultural sensitiveness to environmental and sustainability topics ▪ extremely positive recognition for ECONYL® o Some signs of primary competitors withdrawal • Group is focusing its activities to built relationship with important
Slide 21: Group development – Acquisition of ca 32% in NOFIR
Group development – Acquisition of ca 32% in NOFIR ‒ Nofir: based in Bodø, Norway, is a leading European player in the collection and processing of fishing and aquaculture nets at the end of their life cycles. Since 2011, Nofir has collected over 48,000 tons of nets in 20 countries on five continent
Slide 22: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 22
Slide 23: 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 Group Corporate Governance sustainability DNA o Expansion and integration of the activities of the "Control and Risks" Committee entrusting it with sustainabil
Slide 24: Aquafil sustainability path – further steps in 3QYTD2021
Aquafil sustainability path – 2 further steps in 3QYTD2021 • 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 com
Slide 25: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 25
Slide 26: 2021 Outlook – 2021 Group confirms expectation
2021 Outlook – 2021 Group confirms expectation • The economic growth outlook in the first nine months of the year has shown that the benefits of containment and control measures and vaccination campaigns are effective tools for combating the Covid-19 pandemic. The maintenance, if not expansion, of s
Slide 27: Index Page
Index Page 1. KEY MESSAGES 4 2. FINANCIAL RESULTS 6 3. GROUP DEVELOPMENT 19 4. SUSTAINABILITY PATH 23 5. OUTLOOK 26 6. APPENDIX 29 27
Slide 28: 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 29: Appendix - Definitions
Appendix - 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 Engineeri
Slide 30: Appendix - Sector Data – Caprolactam price evolution
Appendix - Sector Data – Caprolactam price evolution 30
Slide 31: Appendix - Consolidate Income Statements
Appendix - Consolidate Income Statements CONSOLIDATED INCOME STATEMENT September of wich non- September of wich non- Third Quarter of wich non- Third Quarter of wich non- €/000 2021 current 2020 current 2021 current 2020 current Revenue 419.310 587 327.930 287 144.610 587 105.197 120 of which relate
Slide 32: Appendix - Consolidate Income Statements – Revenues 3QYTD
Appendix - Consolidate Income Statements – Revenues 3QYTD 3QYTD BCF (fiber for carpet) NTF (fiber for fabric) Polymers Total €/mil 2021 2020 Δ Δ% 2021 2020 Δ Δ% 2021 2020 Δ Δ% 2021 2020 Δ Δ% % 21 % 20 EMEA 137,4 115,8 21,6 18,7 % 62,2 51,3 10,9 21,2 % 55,5 19,6 35,9 182,6 % 255,1 186,7 68,4 36,6 % 6
Slide 33: Appendix - Consolidate Income Statements – Revenues 3Q
Appendix - Consolidate Income Statements – Revenues 3Q 3Q BCF (fiber for carpet) NTF (fiber for fabric) Polymers Total €/mil 2021 2020 Δ Δ% 2021 2020 Δ Δ% 2021 2020 Δ Δ% 2021 2020 Δ Δ% % 21 % 20 EMEA 46,8 33,3 13,4 40,3 % 20,6 14,0 6,7 47,7 % 20,4 6,2 14,2 231,1 % 87,8 53,5 34,3 64,2 % 60,7 % 50,8 %
Slide 34: Appendix - Consolidate Income Statements – EBITDA & EBITD Adj
Appendix - Consolidate Income Statements – EBITDA & EBITD Adj RECONCILIATION FROM NET PROFIT TO EBITDA September September Third Quarter Third Quarter €/000 2021 2020 2021 2020 Net Profit (Including Portion Attr. to Minority ) 14.258 (2.899) 5.346 (964) Income Taxes 3.710 (68) 1.632 (439) Amortisati
Slide 35: Appendix - Consolidate Balance Sheet(1)
Appendix - Consolidate Balance Sheet(1) CONSOLIDATED BALANCE SHEET At September 30, At December 31, €/000 2021 2020 Intangible Assets 23.484 23.578 Goodwill 14.413 13.600 Tangible Assets 229.993 229.495 Financial Assets 663 650 of which related parties 312 313 Other Assets 1.586 1.336 Deferred Tax A
Slide 36: Appendix - Consolidate Balance Sheet(2)
Appendix - Consolidate Balance Sheet(2) CONSOLIDATED BALANCE SHEET At September 30, At December 31, €/000 2021 2020 Total Assets 659.196 679.698 Share Capital 49.722 49.722 Reserves 88.680 76.579 Group Net Profit for the year 14.258 595 Group Shareholders Equity 152.660 126.897 Net Equity attributab
Slide 37: Appendix - Net Financial Position
Appendix - Net Financial Position NET FINANCIAL DEBT At September 30, At December 31, €/000 2021 2020 A. Liquidity 163.680 208.954 B. Cash and cash equivalents 0 0 C. Other current financial assets 4.291 834 D. Liquidity (A + B + C) 167.971 209.787 E. Current financial debt (including debt instrumen
Slide 38: Appendix - Consolidated Cash Flow Statement (1)
Appendix - Consolidated Cash Flow Statement (1) CASH FLOW STATEMENT At September 30, At September 30, €/000 2021 2020 Operation Activities Net Profit (Including Portion Attr. to Minority ) 14.258 (2.899) of which related parties (141) (468) Income Taxes 3.710 (68) Financial income (693) (353) Financ
Slide 39: Appendix - Consolidated Cash Flow Statement (2)
Appendix - Consolidated Cash Flow Statement (2) CASH FLOW STATEMENT At September 30, At September 30, €/000 2021 2020 Investing activities Investment in Tangible Assets (20.547) (18.398) Disposal of Tangible Assets 291 762 Investment in Intangible Assets (3.640) (4.019) Disposal of Intangible Assets