Aquafil (ECNL) Investor update summary

Financial performance and operational highlights

• Group volumes increased by 10.7% in H1 2024, with Europe up 20.8%, Asia Pacific up 13.8%, and the USA underperforming expectations.

• EBITDA for the first six months reached EUR 32.6 million (11.3% margin), with Q2 EBITDA up 78% year-on-year.

• Net financial position improved to EUR 243 million at June 30, 2024, the lowest since December 2022, with leverage reduced to 4.98x.

• Personnel costs reduced by 15% year-on-year; headcount reduced from approximately 2,800 to 2,400; inventory volumes down 20% compared to H1 2023.

• Capital expenditures for H1 2024 were EUR 9.2 million, down from EUR 18.4 million in H1 2023.

Strategic plan and growth initiatives

• 2024–2026 plan targets EBITDA of EUR 65m (2024), EUR 80–87m (2025), and EUR 90–96m (2026), with NFP expected at EUR 207m (2024), EUR 185–195m (2025), and EUR 157–167m (2026).

• Capital increase of EUR 40 million planned, with major shareholder committed to pro-rata participation; proceeds to fund growth, capacity expansion, and potential acquisitions.

• Focus on expanding Asian operations, especially with OneStep technology and consolidation of Chinese facilities.

• CapEx of EUR 60–65m over three years for production optimization and innovation, with main investments in Asia and technology upgrades.

• No dividend distribution is planned during the period.

Market trends and business drivers

• U.S. market underperformed in H1 2024 but is expected to recover due to competitor exits and new product launches.

• European market stabilized, with slight growth and new product applications supporting volumes.

• Asia Pacific remains a key growth area, with capacity constraints driving investment.

• Growth assumptions are based on competitor exits, market share gains, and new applications, rather than broad market recovery.

• ECONYL-branded products targeted to reach 60% of fiber revenues, with higher margins and new applications in technical yarns and engineering polymers.