Envipco Holding N.v. · EURONEXT:ENVI
Envipco — Q4 2023 Earnings Presentation
27 slides from Envipco's earnings presentation, Mar 7, 2024
Slide 1: Q4 23 Results presentation
Q4 23 Results presentation | 7 March 2024
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Envipco’s management and information currently available to the company. Envipco cautions that such statements contain elements of risk and uncertaint
Slide 3: Highlights Q4 2023
Highlights Q4 2023 Revenue development EUR million, Unaudited • Record group revenues of EUR 35.4m (+165%) • Gross profits up 201% y/y to EUR 12.6m on wider gross margin of 35.5% • Leveraging on operational investments leading to all-time high EBITDA of EUR 5.9m (16.6%) Gross profit development EUR
Slide 4: A global recycling technology company set for growth
A global recycling technology company set for growth Building from… EUR 87.6 million revenue 2023 • Engaging a vast global market opportunity, mainly driven by deposit legislation rolled out across all EU countries 2.3x revenue multiple 2021 – 2023 • Captured leading position in European growth mark
Slide 5: Delivering on European growth strategy
Delivering on European growth strategy Revenue development EUR million, Unaudited N.America/RoW 20231 Increased awareness and legislative initiatives largely driven by maturing North DRS second wave (EU) American Market 1) Gross sales.
Slide 6: Invested in building a market position
Invested in building a market position Entered several new markets over the last 5 years… …making strong headways in new growth markets • Installed 270+ Quantum recycling centers and +300 RVMs >90% • Project continuing into 2024/25 with significant potential Mkt share • Installed 700+ RVMs with MOL
Slide 7: Engaging a vast market opportunity
Engaging a vast market opportunity + 200k units N.America/RoW EU Legislation driving deposit return schemes (DRS) in all EU countries Europe Strong Consumer push to address plastic pollution Beverage brand holders needing clean feedstock to put back into new packaging Industry acknowledgment that de
Slide 8: DRS second wave
DRS second wave Legislative considerations and planning Preparations Anticipated next wave of DRS legislation in European markets Implementation and execution Publicly announced launch Envipco currently operates in Greece as a pre-DRS market, the timeline for DRS implementation is not yet defined. E
Slide 9: Operations
Operations Operational review
Slide 10: Why we continue to win with our customers
Why we continue to win with our customers Broad and proven Proven track record with Ample production Consultative approach product portfolio world leading retailers capacity addressing customers' addressing all customer showing our quality and in USA, Germany and unique needs first and segments comm
Slide 11: Ample production capacity
Ample production capacity Naugatuck (CT), USA Invested in production capacity to support expected growth • Distributed manufacturing in North America and Europe, reducing time of delivery and shipping cost • Scale to increase utilization and reduce production cost over time • Ability to serve Tier 1
Slide 12: Europe
Europe Quarterly revenues (EUR million, unaudited) Q4 23 • Q4 revenues up 506% y/y to record EUR 28.0m • 2023 revenues +206% to EUR 55.5m • Revenue growth driven by strong RVM sales increasing 538% y/y to EUR 27.4m • Greece, Hungary and Romania key revenue drivers • Program services EUR 0.5m Full ye
Slide 13: North America
North America Quarterly development (EUR million, Unaudited) Q4 23 • Revenues of EUR 7.5m (-15% y/y) • 2023 revenues EUR 32.1m, down 16% y/y • Program services revenues down 3% • RVM sales of EUR 0.4m (EUR 1.5m) Business development • CT doubling of deposit to $.10 effective January 2024 Full year w
Slide 14: California
California • Important revisions to DRS effective from 1 Jan 2025 could drive demand for centralized collection technology • First Optima pilot launched in Los Angeles • Envipco actively pursuing Quantum pilots in California
Slide 15: Financial review
IMPREUNA, RECICLAM | IMPREUNA
Slide 16: Ending the year on a strong note
Ending the year on a strong note Q4 23 in EUR millions, unaudited Q4 23 Q4 22 2023 2022 Revenues 35.4 13.4 87.6 56.4 • Record group revenue up 165% y/y to EUR 35.4m - Europe 28.0 4.6 55.5 18.1 • Europe comprising 79% of group revenues (+506%) - North America2 7.5 8.7 32.1 38.2 • Gross margin 35.5%,
Slide 17: On a good trajectory to reach targets
On a good trajectory to reach targets 2023 in EUR millions, unaudited Q4 23 Q4 22 2023 2022 Revenues 35.4 13.4 87.6 56.4 - Europe 28.0 4.6 55.5 18.1 • Record group revenue up 55% y/y to EUR 87.6m - North America2 7.5 8.7 32.1 38.2 • Europe revenues 63% of group revenues • Gross margin 35.0%, up from
Slide 18: Building a scalable European RVM business
Building a scalable European RVM business Operating expenses Q4 23 (EUR million, Unaudited) • Operating costs up 34% y/y to EUR 8.8m in Q4 23 • G&A expenses EUR 7.2m (5.1m) o Elevated levels of operating costs in Q4 23 attributable to IT implementation costs and increased sales levels • Selling and
Slide 19: Financial position
Financial position Balance sheet (EUR million, Unaudited) • Total assets EUR 96.3m up from EUR 78.9m in 2022 • Non-current assets EUR 30.6m (25.7m) • Primarily PPE (EUR 17.5m) and intangible assets from activated development expenses (EUR 9.2m) • Gross working capital EUR 55.8m (37.1m) • Down sequen
Slide 20: Cash flow
Cash flow • Cash from operating activities EUR 0.6m Cash flow 2023 (EUR million, Unaudited) • EBITDA EUR 8.8m • Working capital build-up of EUR 8.3m on higher sales, driving receivables and inventory • Cash flow from investing activities EUR –7.8m • Investments in PP&E -6.0m and R&D -2.1m • Cash flo
Slide 21: Summary
Summary Market share in Envipco is delivering on its growth strategy new markets • • Securing leading market position in key new growth markets Group revenues 2.3x 2021 with 2023 revenues +55% y/y +30% Committed to 40% gross margin target Revenue growth • Expect improved gross margins and operationa
Slide 22: Q&A
Q&A Next event: May 21, 2024 – Q1 24 results
Slide 23: Appendix
Appendix
Slide 24: Profit & Loss
Profit & Loss* in EUR thousands Q4 23 Q4 22 FY 2023 FY 2022 Revenues 35 423 13 356 87 581 56 373 Cost of sales (22 842) (9 188) (56 964) (37 911) Gross Profit 12 580 4 168 30 617 18 462 Selling and distribution expenses (869) (1 024) (2 661) (3 437) General and administrative expenses (7 201) (5 131
Slide 25: Balance sheet
Balance sheet* in EUR thousands Note 31.12.23 31.12.22 in EUR thousands Note 31.12.23 31.12.22 Equity Assets Share capital 2 585 2 303 Non-current assets Share premium 71 022 56 939 Intangible assets 9 240 8 595 Property, plant and equipment 17 503 14 175 Translation reserves 4 510 5 591 Financial a
Slide 26: Cash Flow Statement
Cash Flow Statement* in EUR thousands Note FY 2023 FY 2022 Cashflow from operating activities Operating results 2 735 (2 710) Adjustment for: Depreciation & Amortization 6 034 4 969 PPP loan forgiveness - (1 948) Changes in: Changes in trade and other receivables (12 268) 807 Changes in inventories
Slide 27: Contact
Contact: EnvipcoInvestorRelations@envipco.com mailto:investorrelations@envipco.com www.envipco.com