Slide 1: Corporate Presentation – Virtual STAR Conference
AQUAFIL Corporate Presentation Virtual STAR Conference 26th and 27th May 2020
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 ca 38% of fiber turnover - signif
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: Global Footprint with proximity to Clients
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 SLOVENIA THAILAND ACR#1 Ljubljana Rayong AquafilSLO Sacramento (Cal
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 72,9% BCF Product Automotive B Clothing & Fashion Fiber for fabric Swimwear ca. 19,6% 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: Fiber for Fabric - 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 • 37,5% 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, ARC#.. 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) 72,9% of fiber for carpet (BCF) product, including Engineering activities, (b) 19,6% of fiber for fabric (NTF) product and (d) 7,5% of Polymers and are carried out for (i) 59,6% EMEA (ii) 23,3% North America (iii) 16,8% 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 3,7 % % % % % % % % % Capex (€m) Capex FY 2019 without consider effects of O’Mara Incorporated acquisition and of IFRS16 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 3,6 Net financial position amounted to €249.6 million at December 31, 2019 compared to €273.2 million at September 30, 2019. Excluding the effect of the application of IFRS16 and the acquisition
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: FY 2019 – Consolidated Financial Statement
FY 2019 – CONSOLIDATED FINANCIAL STATEMENT 27
Slide 28: FY 2019 - EBITDA and EBIT Adjusted
FY 2019 - EBITDA and EBIT Adjusted RECONCILIATION FROM NET PROFIT TO EBITDA December December Forth Quarter Forth Quarter €/000 2019 2018 2019 2018 Net Profit (Including Portion Attr. to Minority ) 9.005 30.097 (529) 5.742 Income Taxes 1.519 6.986 (2.195) 784 Amortisation & Depreciation 37.765 26.36
Slide 29: FY 2019 - Consolidated Income Statement
FY 2019 - Consolidated Income Statement CONSOLIDATED INCOME STATEMENT December of wich December of wich Forth Quarter of wich Forth Quarter of wich €/000 2019 non-current 2018 non-current 2019 non-current 2018 non-current Revenue 548.955 555.220 129.418 124.288 - of which related parties 58 218 29 1
Slide 30: FY 2019 - Consolidated Balance Sheet
FY 2019 - Consolidated Balance Sheet CONSOLIDATED BALANCE SHEET At December 31, At December 31, €/000 2019 2018 Intangible Assets 21.101 15.992 Goodwill 13.029 - Tangible Assets 251.492 189.661 Financial Assets 765 404 of which related parties 313 79 Other Assets 2.189 2.189 Deferred Tax Assets 13.6
Slide 31: FY 2019 - Consolidated Cash Flow Statement
FY 2019 - Consolidated Cash Flow Statement CASH FLOW STATEMENT At December 31, At December 31, €/000 2019 2018 Operation Activities Net Profit (Including Portion Attr. to Minority ) 9.005 30.097 of which related parties (755) (3.438) Income Taxes 1.519 6.986 Other Financial Income (1.195) (45) Inter
Slide 32: FY 2019 - Net Financial Debt
FY 2019 - Net Financial Debt NET FINANCIAL DEBT At December 31, At December 31, €/000 2019 2018 A. Cash 90.400 103.277 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 90.400 103.277 E. Current financial receivables 1.637 2.878 F. Current bank loans and borr
Slide 33: Q1 2020 – Financial Results
Q1 2020 – FINANCIAL RESULTS 33
Slide 34: Q1 2020 - Highlights
Q1 2020 - Highlights REVENUES EBITDA NET PROFIT ADJUSTED1 N.F.P. (€/mil) (€/mil) (€/mil) (€/mil) Q120 Q120 Q120 Act192 140,7 Act193 18,2 Act19 5,1 Mar20 250,2 Act18 145,3 Act18 19,1 Act18 7,7 Dec19 249,6 % Var % Var % Var 19 to 18 -3,2% 19 to 18 -4,7% 19 to 18 -34,2% REVENUES EBITDA NET PROFIT ADJUS
Slide 35: Q1 2020 - Revenues by Geographical Area and Product Line
Q1 2020 - Revenues by Geographical Area and Product Line Revenues broken down by Line of Product and Geographical Area on First Quarter 2020 to same period of 2019 are: BCF (fiber for carpet) NTF (fibre for fabrics) Polymers TOTAL % on TOTAL Q120 Q119 Δ Δ% Q120 Q119 Δ Δ% Q120 Q119 Δ Δ% Q120 Q119 Δ Δ
Slide 36: Q1 2020 - ECONYL Revenues
Q1 2020 - ECONYL® Revenues The Group’s revenues of ECONYL® branded products decrease of 1,9% in Q1 2020 compared to Q1 2019. The Group’s revenues of ECONYL® branded products in Full Year 2019 are equal to the 37,9% of total fiber revenues. 36
Slide 37: Q1 2020 - Income Statement KPI
Q1 2020 - Income Statement KPI The Income Statement Key Performance Indicators related to first quarter 2020 compared with same period of 2019 are: Income Statement KPI (€/mil) a) Revenues: trend has been described in Revenues by Geographical Area and Product Line section of report; Q1 20 Q1 19 Δ% b
Slide 38: Q1 2020 - Cash Flow and Net Financial Debt
Q1 2020 - Cash Flow and Net Financial Debt The Cash Flow and Net Financial Debt of first quarter 2020: Cash Flow (€/mil) (a) Cash Flow from Operating Activities a) Cash Flow from Operating Activities Before 15,3 Changes in NWC: are equal to 15,3 €/mil and are Before Changes in NWC calculated as Net
Slide 39: Q1 2020 - EBITDA and EBIT Adjusted
Q1 2020 - EBITDA and EBIT Adjusted RECONCILIATION FROM NET PROFIT TO EBITDA First Quarter First Quarter €/000 2020 2019 Net Profit (Including Portion Attr. to Minority ) 4.076 7.696 Income Taxes 1.572 1.880 Amortisation & Depreciation 10.833 8.038 Write-downs & Write-backs of intangible and tangible
Slide 40: Q1 2020 - Consolidated Income Statement
Q1 2020 - Consolidated Income Statement CONSOLIDATED INCOME STATEMENT First Quarter of wich First Quarter of wich €/000 2020 non-current 2019 non-current Revenue 140.714 - 145.328 of which related parties 305 - 17 Other Revenue 481 17 601 76 Total Revenue and Other Revenue 141.195 17 145.929 76 Raw
Slide 41: Q1 2020 - Consolidated Balance Sheet
Q1 2020 - Consolidated Balance Sheet CONSOLIDATED BALANCE SHEET At March 31, At December 31, €/000 2020 2019 Intangible Assets 21.832 21.101 Goodwill 13.360 13.029 Tangible Assets 252.295 251.492 Financial Assets 722 765 of which related parties 313 313 Other Assets 2.189 2.189 Deferred Tax Assets 1
Slide 42: Q1 2020 - Consolidated Cash Flow Statement
Q1 2020 - Consolidated Cash Flow Statement CASH FLOW STATEMENT At March 31, At March 31, €/000 2020 2019 Operation Activities Net Profit (Including Portion Attr. to Minority ) 4.076 7.696 of which related parties 151 (170) Income Taxes 1.572 1.880 Other Financial Income (46) (1.091) Interest Expense
Slide 43: Q1 2020 - Net Financial Debt
Q1 2020 - Net Financial Debt NET FINANCIAL DEBT At March 31, At December 31, €/000 2020 2019 A. Cash 100.423 90.400 B. Other cash equivalents - - C. Securities held-for-trading - - D. Liquidity ( A + B + C) 100.423 90.400 E. Current financial receivables 1.947 1.637 F. Current bank loans and borrowi
Slide 44: Investors Contact
Investors Contact: Karim Tonelli Investor Relations & Performance Management Director karim.tonelli@aquafil.com Mob: +39 348 60 22 950 44