Envipco Holding N.v. · EURONEXT:ENVI
Envipco — Q3 2023 Earnings Presentation
26 slides from Envipco's earnings presentation, Nov 16, 2023
Slide 1: Q3 23 Results presentation
Q3 23 Results presentation | November 16, 2023 1
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 Q3 23
Highlights Q3 23 Revenue development EUR million, Unaudited +49% 25.3 • Record group revenues of EUR 25.3m 16.9 16.5 • Delivering on European growth strategy with 13.4 record revenues of EUR 16.9m (+133%) 10.4 • Growth in existing markets and initial revenues from Hungary and Romania Q3 22 Q4 22 Q1
Slide 4: Delivering on our growth strategy
Delivering on our growth strategy Revenue development EUR million What we have said 65.5 • Envipco will challenge incumbents and capture market share in North America 56.4 • Envipco will capture a significant share of new market opportunities from the second wave of DRS legislation in Europe 38.4 30
Slide 5: Creating a cleaner world for future generations through recycling technology
Creating a cleaner world for future generations through recycling technology 5
Slide 6: Ambitious and clear strategy to deliver value to all our stakeholders
Ambitious and clear strategy to deliver value to all our stakeholders • Capturing growth markets • Innovative and superior products • Tailoring outstanding solutions for our customers • Ambitious and talented people • Relentlessly improve performance 6
Slide 7: Addressing significant growth opportunities
Addressing significant growth opportunities Engaging a vast market opportunity… … driven by legislation and industry incentives North America EU Legislation driving deposit return schemes in ~20% all EU countries ~80% Strong Consumer push to address plastic pollution Europe Beverage brand holders ne
Slide 8: Ready to capture new markets as they mature
Ready to capture new markets as they mature Anticipated maturation of European markets 2023 2024 2025 2026 2027 Romania Hungary Ireland Austria Poland UK Scotland Portugal Greece Envipco currently operates in Greece as a pre-DRS market, timeline for DRS implementation not yet defined. Turkey Spain F
Slide 9: Why we are winning with our customers
Why we are winning with our customers Broad and proven Proven track record Ample production capacity Consultative approach product portfolio with world leading in USA, Germany and addressing customers’ addressing all customer retailers Romania with the capacity to unique needs first and segments sho
Slide 10: High quality products and software support for all customer segments
High quality products and software support for all customer segments MODULA FLEX ULTRA OPTIMA QUANTUM Smallest, low-cost RVM Single commodity feed Flexible high-volume All-in-one commodity feed Breakthrough bulk-feed system Convenience stores Gas stations Schools Super markets Hyper markets Redempti
Slide 11: Ready to deliver on upcoming market growth
Ready to deliver on upcoming market growth 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 • Increasing scale to increase utilization and reduce production cost over ti
Slide 12: Making strong headways in new growth markets
Making strong headways in new growth markets • 140+ recycling centres (Quantum) • Project continuing into 2024/25 with significant potential • Installed 200 RVMs with MOL group • +4,000 units to be delivered over the next two years • Secured preferred supplier agreement with largest independent netw
Slide 13: Operations
Operations Operational and financial review 13
Slide 14: At the inflection point of our growth trajectory
At the inflection point of our growth trajectory in EUR millions Q3 23 Q3 22 9M 23 9M 22 Q3 23 Revenues 25.3 16.9 52.2 43.0 - Europe 16.9 7.2 27.5 13.5 • Record group revenue up 49% y/y - North America2 8.4 9.7 24.6 29.5 • Europe comprising 2/3 of group revenues Gross Profit 8.8 5.3 18.0 14.3 • Gros
Slide 15: Europe
Europe Quarterly development (EUR million, Unaudited) Q3 23 • Q3 revenues up 133% y/y to record EUR 16.9m Machine and part sales Program services 16.9 • YTD revenues +104% to EUR 27.5m • Revenue growth driven by strong machine sales increasing 137% y/y to EUR 16.6m 8.4 7.2 16.6 • Greece EUR 7.9m (+3
Slide 16: North America
North America Quarterly development (EUR million, Unaudited) Q3 23 Machine and part sales Program services • Revenues of EUR 8.4m - down 13% y/y 9.7 • YTD revenues EUR 24.6m, down 17% y/y 1.1 8.7 8.4 8.1 8.1 1.5 1.2 0.8 0.8 • Program services revenues down 9% y/y despite flat container volumes, vari
Slide 17: Selective organizational investments to support growth
Selective organizational investments to support growth Operating expenses (EUR million) 7.2 Operating costs up 9% y/y, sequentially down 6.5 0.6 6.6 • Includes D&A of EUR 0.6m related to amortization 6.1 0.5 on activated R&D and fixed asset depreciation 1.0 5.8 1.1 0.6 • Selling and distribution cos
Slide 18: Financial position
Financial position Balance sheet EUR million • Total assets EUR 89.6m up from EUR 66.7m y/y • Non-current assets EUR 27.2m, slightly up y/y from 89.6 89.6 EUR 24.1m 90 4.0 • Primarily PPE and intangible assets from 75 30.8 activated development expenses 66.7 66.7 0.7 60 • Gross working capital up to
Slide 19: Cash Flow
Cash Flow Cash flow YTD 23 • Cash from operating activities EUR -12.6m EUR million • Positive EBITDA EUR 2.9m • WC build-up of EUR 15.5m related to higher activity, driving receivables and inventory 16.1 • Cash flow from investing activities EUR -3.6m • Investments in PP&E and R&D 12.6 • Cash flow f
Slide 20: Summary and outlook
Summary and outlook Ambition towards 2025 • Envipco is delivering on its growth strategy • Securing leading market position in key new growth markets • Europe revenues +133% y/y in Q3 23 and +104% YTD 23 from eight Market share in markets new markets • Scaling on significant investments in organizat
Slide 21: Q&A
Q&A Next event: March 7, 2024 - Full year and Q4 2023 results 21
Slide 22: Appendix
Appendix 22
Slide 23: Profit & Loss
Profit & Loss in EUR thousands Note Q3 23 Q3 22 YTD 23 YTD 22 FY 22 Revenues 25 274 16 942 52 159 43 018 56 373 Cost of sales (16 444) (11 648) (34 122) (28 723) (37 911) Gross Profit 8 830 5 294 18 037 14 294 18 462 Selling and distribution expenses (542) (1 061) (1 791) (2 413) (3 437) General and
Slide 24: Balance Sheet
Balance Sheet in EUR thousands Note 30.09.23 30.09.22 31.12.22 in EUR thousands Note 30.09.23 30.09.22 31.12.22 Assets Equity Non-current assets Share capital 2 585 2 303 2 303 Development Costs Etc 7 827 - 7 575 Share premium 70 919 57 428 56 939 Intangible assets 9 380 7 393 8 595 Translation rese
Slide 25: Cash Flow Statement
Cash Flow Statement in EUR thousands Note YTD 23 YTD 22 FY 22 Cashflow from operating activities Operating results (1 509) (386) (2 710) Adjustment for: Depreciation & Amortization 4 388 3 715 4 969 PPP loan forgiveness - (1 948) (1 948) Changes in: Changes in trade and other receivables (12 143) (1
Slide 26: Contact
Contact: EnvipcoInvestorRelations@envipco.com mailto:investorrelations@envipco.com www.envipco.com 26