Aquafil S p A : Q1 2024 Financial Results Presentation

Aquafil Group

[ECNL:IM] - [ECNLF: OTCQX]

1Q 2024 Financial Results

May 14, 2024

1. Key messages

ECONYL® BRANDED AND

REGENERATED

PRODUCTS ACCOUNTED FOR 52.1%

OF REVENUES

GENERATED FROM FIBERS

EMEA AND ASIA IN LINE WITH

EXPECTATIONS,

WEAKER MARKET IN THE US

NET FINANCIAL POSITION

SUBSTANTIALLY UNCHANGED

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2. Financial results

1Q

% on Revenues

	Revenues			EBITDA		Net profit			NFP
2024	2023	Δ%	2024	2023	Δ%	2024	2023	Δ%	31.03.24	31.12.23	Δ%
147,5	166,8	(11,6)%	15,2	21,6	(29,6)%	(3,1)	3,3	(193,9)%	250,3	248,5	0,7%
			10,3%	12,9%		(2,1)%	2,0%

SALES

VOLUME1

13,8% compared to 1Q23

EMEA and Asia

Market in line with

expectation

USA

Weaker market

ECONYL®

ca 52,1% of Fiber Revenues

EBITDA

Lower to 1Q 2023

Due to

lower sales price to be

aligned to the raw material

and

different mix

NET PROFIT

Lower to 1Q 2023

Strong decrease

Due to

EBITDA decrease

and

Increase of net financial

costs

NFP

In line vs Dec. 23

NFP/EBITDA LTM

x6,08

on 31st March 2024

X5,23

on 31st December 2023

1. Based on "First Grade Product" revenues

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2. Financial results - Revenues by components

Higher volumes of 13,8% compared to 1Q 2023

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2. Financial results - Volumes

EMEA: volumes +25,3% vs 1Q23:

• Market recovery for BCF in 1Q 2024
• NTF lower volumes
• Polymers and Engineering plastics continues to grow

USA: volumes ca (5,64)% vs 1Q23:

• BCF and NTF: weaker market

Asia: volumes +11,2% vs 1Q23:

• BCF: slight increase in quantity vs 1Q 2023

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2. Financial results - Revenues breakdown by Product Line and Area

% Revenues by Geographical Area

16,8%14,8%

27,0%30,0%

55,7%54,9%

2024			2023
	EMEA		North America		Asia e Oceania

% Revenues by Product Line

13,6%7,5%

16,0%20,9%

70,4%71,6%

2024	2023
BCF (fiber for carpet)		NTF (fibre for textile)		Polymers

(1) Rest of World not included

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2. Financial results - Revenues: ECONYL® products

ECONYL® products increased by 52,1% in 1Q 2024

46,2%

37.4%

53,8%

62.9%

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2. Financial results - P&L: KPI

		1Q
	2024	2023
Revenues	147,5	166,8

EBITDA	15,2	21,6
% on net Sales	10,3 %	12,9%
EBIT	0,8	8,0
% on net Sales	0,6 %	4,8%

Δ%

(11,6)%

(29,6)%

(89,4)%

EBT	(4,0)	4,6	(186,1)%
% on net Sales	(2,7)%	2,8%
NET RESULT	(3,1)	3,3	(193,9)%
% on net Sales	(2,1)%	2,0%

Data in € million

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2. Financial results - NFP and NPF/EBITDA

• NFP on 31st March 2024 equal to 250,3 vs 248,5 €/mil on 31st December 2023
• Ratio NPF/EBITDA LTM at x6,08

NFP Evolution - €/mil

250,3 248,5

31-mar-24		31-dic-23

242

157

112

NFP/LTM EBITDA

6,08

5,23

31-mar-2431-dic-23

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3. Outlook

In the first quarter of 2024, margins were essentially in line with expectations, confirming the recovery path towards the achievement of the plan targets.

The context of reference has not stabilized yet, but an uptrend is expected in the second half of the year.

The comparison with the same period of the previous year in terms of economic performances is unfavorable. From a market point of view, overall volumes were up compared to the last quarters of 2023. The geographical areas witnessed two different trends: volumes increased in EMEA and Asia and declined slightly in the United States.

The Group continued its activities aimed at rationalizing personnel costs, optimizing working capital and containing investments in order to reduce its debt.

For the rest of the year, the Group expects a recovery in the market of fibers for garments in EMEA and in the United States following the sharp reduction witnessed in 2023. It also expects a gradual recovery in the market of fibers for carpets in the United States. In the Asian area, forecasts call for a constant growth in the market of fibers for carpets.

The Company confirms and is committed to achieving the targets it set for the 2024-2025two-year period.

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