Envipco Holding N.v. · EURONEXT:ENVI
Envipco — Q2 2024 Earnings Presentation
28 slides from Envipco's earnings presentation, Aug 15, 2024
Slide 1: Results Presentation Q2 24
Results Presentation Q2 24 15 August 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 Q2 24
Highlights Q2 24 Revenue development EUR million, unaudited • Group revenues EUR 26.6m (+61% y/y) • LTM revenues EUR 114.7m (+101% y/y) • Gross margin 35.6% with gross profit EUR 9.5m • EBITDA EUR 2.6m, 9.6% EBITDA margin • Europe revenues +106% y/y to EUR 17.3m on advances in Hungary, Romania and G
Slide 4: A global recycling technology company set for growth
A global recycling technology company set for growth Building from… EUR 114.7 million LTM Q2 24 revenues • Engaging a vast global market opportunity, mainly driven by deposit legislation rolled out across all EU countries 3.0x revenue multiple 2021 – LTM Q2 24 • Captured leading position in European
Slide 5: Delivering on European growth strategy
Delivering on European growth strategy Revenue development EUR million, unaudited Increased awareness and legislative initiatives largely DRS second wave (EU) driven by maturing North American Market 1) Gross sales.
Slide 6: Operational review
Operational review @envipco
Slide 7: Operational update
Operational update Quarterly development (EUR million, unaudited) North America • US growth returning with improved RVM sales and program services • Strong increase in redemption volumes in CT on doubling of deposit • MA and NY legislative activity building to modernize their deposit schemes • Explo
Slide 8: Financial review
Fina ncial review @envipco
Slide 9: Delivering strong growth in existing markets
Delivering strong growth in existing markets Q2 24 in EUR millions, unaudited Q2 24 Q2 23 H1 24 H1 23 • Group revenues EUR 26.6m (+61% y/y) Revenues 26.6 16.5 54.0 26.9 • Gross margin 35.6%, up from 34.5% in Q2 23 - Europe 17.3 8.4 37.2 10.7 • Gross earnings +66% y/y to EUR 9.5m - North America & Ro
Slide 10: Europe
Europe Quarterly revenues (EUR million, unaudited) Q2 24 c in n p s s o s vic s • Q2 revenues up 106% y/y to EUR 17.3m • Europe comprised 65% of group revenues (51%) • RVM sales EUR 16.4m (+103%), driven by Hungary, Romania and Greece • Program services EUR 0.9m (+209%). Limited service revenue duri
Slide 11: North America
North America Quarterly revenues (EUR million, unaudited) Q2 24 c in n p s s o s vic s • Revenues of EUR 9.3m (+14% y/y), turning the curve on growth trend past two years • Program services revenues up 6% y/y to EUR 7.7m • Positive effects on redemption rates and collection volumes from doubling of
Slide 12: Continuing to invest in our business
Continuing to invest in our business Q2 24 Operating expenses (EUR million, unaudited) • Operating costs up 23% y/y to EUR 8.8m in Q2 24 • G&A expenses EUR 7.5m (6.3m) • Selling and distribution cost EUR 1.0m (0.6m) • R&D expenses EUR 0.4m (0.3m) • Opex as percentage of sales down to 33% from 44% in
Slide 13: Financial position
Financial position Q2 24 Balance sheet (EUR million, unaudited) • Total assets EUR 120.4m down from EUR 128.1m in Q1 24 • Non-current assets EUR 32.5m (33.7m) • Primarily PPE EUR 19.4m and intangible assets EUR 9.0m from activated development expenses • Current assets EUR 87.9m (94.4m) • Cash balanc
Slide 14: Cash flow
Cash flow Q2 24 Cash flow (EUR million, unaudited) • Cash from operating activities EUR -6.8m • EBITDA EUR 2.6m • Working capital build-up of EUR 8.1m on lower trade payables and higher inventory and trade receivables • Cash flow from investing activities EUR –1.3m • Capital expenditures EUR 1.1m an
Slide 15: Outlook
Outlook
Slide 16: Our journey ahead
Our journey ahead Market share in new markets Continue to delivering on our growth strategy • EU Packaging and Packaging Waste Regulation (PPWR) and UK DRS enabling vast European market opportunity +30% • Securing leading market position in key new growth markets Revenue growth 2021 - Promising reve
Slide 17: Advancing positioning into C-store segment
Advancing positioning into C-store segment Envipco acquired Sensibin Limited • Sensibin Limited is a Dublin, Ireland-based company offering an innovative, customer friendly and cost-efficient RVM o Currently the lowest-cost RVM in the market with an installed base in Ireland • A powerful addition to
Slide 18: EU approval of PPWR
EU approval of PPWR EU Packaging and Packaging Waste An unprecedented market driver Regulation (PPWR) • EU Parliament concluded final vote and approval of the EU Packaging and Packaging Waste Regulation (PPWR) in April 2024 90% Collection rate for plastic bottles and • EU consequently closer to intr
Slide 19: Fully interoperable DRS announced across UK
Fully interoperable DRS announced across UK DRS formally announced Rollout across three phases: 1 Deposit Management Organization (DMO) appointed By Spring 2025 2 DMOs set up and employed with secured funding and key policies Joint policy statement from UK, Fully interoperable DRS with By Spring 202
Slide 20: 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 21: Strategic focus over the medium term
Strategic focus over the medium term Investing wisely to capture wave of new market opportunities • Current year focus is delivering on existing markets while positioning in new markets such as Poland and Portugal • Focus on greenfield markets • Profitable growth and operating leverage • Continue to
Slide 22: Q&A
Q&A Next event: November 21, 2024 – Q3 24 results
Slide 23: Contact
Contact: investorrelations@envipco.com For further information: www.envipco.com/investors
Slide 24: Thank you
Thank you
Slide 25: Appendix
Appendix
Slide 26: Profit & Loss
Profit & Loss* in EUR thousands Q2 24 Q2 23 Q1 241 Q1 242 H1 24 H1 23 Revenues 26,569 16,477 27,436 27,436 54,005 26,885 Cost of sales (17,112) (10,797) (17,814) (17,831) (34,926) (17,679) Gross Profit 9,457 5,680 9,623 9,606 19,079 9,207 Selling and distribution expenses (999) (607) (1,133) (1,133)
Slide 27: Balance sheet
Balance sheet* in EUR thousands Note 30.06.24 31.03.241 31.03.242 31.12.231 30.06.23 in EUR thousands Note 30.06.24 31.03.241 31.03.242 31.12.231 30.06.23 Equity Assets Share capital 2,885 2,885 2,885 2,585 2,585 Non-current assets Share premium 95,606 95,504 95,504 71,021 70,867 Intangible assets 8
Slide 28: Cash Flow Statement
Cash Flow Statement* in EUR thousands Q2 24 Q2 23 H1 24 H1 23 Q1 241 Q1 242 Cashflow from operating activities Operating results 642 (1,493) 1,724 (3,736) 1,082 1,065 Adjustment for: Depreciation & Amortization 1,919 1,407 3,864 2,785 1,945 1,676 Deferred revenue (1,246) - (3,837) - (2,591) - Change