Envipco Holding N.v. · EURONEXT:ENVI
Envipco — Q1 2024 Earnings Presentation
29 slides from Envipco's earnings presentation, May 21, 2024
Slide 1: Q1 24 Results presentation
Q1 24 Results presentation | 21 May 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 Q1 2024
Highlights Q1 2024 Revenue development EUR million, Unaudited • Group revenues EUR 27.4m (+164%) • LTM revenues EUR 104.6m (+85%) • Gross margin 35.0% with gross profit EUR 9.6m • EBITDA EUR 2.7m, y/y improvement from EUR –0.9m Gross profit development EUR million, Unaudited • Successful private pla
Slide 4: A global recycling technology company set for growth
A global recycling technology company set for growth Building from… EUR 104.6 million LTM Q1 24 revenues • Engaging a vast global market opportunity, mainly driven by deposit legislation rolled out across all EU countries 2.7x revenue multiple 2021 – LTM Q1 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 driven DRS second wave (EU) by maturing North American Market 1) Gross sales.
Slide 6: Operations
Operations Operational review
Slide 7: 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 8: Quantum: The bulk feed champion
Quantum The bulk feed champion
Slide 9: Modula: Adaptable high-speed backroom solution
Modula Adaptable high-speed backroom solution
Slide 10: Operational update
Operational update Quarterly development (EUR million, unaudited) North America • CT doubling of deposit to USD 0.10 in effect from January 2024 • MA and NY legislative activity building to modernize their deposit schemes • Continued focus on CA with proof-of-concept pilot installed Europe • Ireland
Slide 11: Financial review
Financial review
Slide 12: Sustaining growth momentum
Sustaining growth momentum Q1 24 in EUR millions, unaudited Q1 24 Q1 23 2023 Revenues 27.4 10.4 87.6 • Group revenues +164% y/y to EUR 27.4m - Europe 19.9 2.3 55.5 - North America & RoW 7.6 8.1 32.1 • Gross margin 35.0%, up from 33.9% in Q1 23 • Manufacturing cost effect from Q4 23 buildup Gross Pro
Slide 13: Europe
Europe Quarterly revenues (EUR million, unaudited) Q1 24 • Q1 revenues up 764% y/y to EUR 19.9m • Revenue growth driven by strong RVM sales increasing 878% y/y to EUR 19.2m • Greece, Hungary and Romania key revenue drivers together with initial Ireland revenues • Program services EUR 0.7m LTM revenu
Slide 14: North America
North America Quarterly development (EUR million, unaudited) Q1 24 • Revenues of EUR 7.6m (-7% y/y) • Program services revenues up 3% to EUR 7.1m • Positive volume effects from doubling of deposit values in Connecticut LTM revenues • RVM sales of EUR 0.5m (EUR 1.2m) (EUR million, unaudited) • Strong
Slide 15: Continuing to invest in our business
Continuing to invest in our business Operating expenses Q1 24 (EUR million, unaudited) • Operating costs up 48% y/y to EUR 8.5m in Q1 24 • G&A expenses EUR 6.8m (4.8m) • Selling and distribution cost EUR 1.1m (0.6m) • R&D expenses EUR 0.6m (0.3m) • Opex as percentage of sales down to 31% from 55% in
Slide 16: Financial position
Financial position Q1 24 Balance sheet (EUR million, unaudited) • Total assets EUR 126.4m up from EUR 96.3m in Q4 23 • Current assets EUR 94.0m (65.7m) • Cash balance EUR 33.5m up from EUR 9.9m in Q4 23 following private placement with gross proceeds of EUR 26m in March 2024 • Gross working capital
Slide 17: Cash flow
Cash flow • Cash from operating activities EUR -2.7m Cash flow Q1 24 (EUR million, unaudited) • EBITDA EUR 2.7m • Working capital build-up of EUR 4.8m on higher inventory and trade receivables • Cash flow from investing activities EUR –0.9m • Capitalized R&D EUR -0.5m and capital expenditures EUR -0
Slide 18: Outlook
Outlook
Slide 19: Our journey ahead
Our journey ahead Market share in Continue to delivering on our growth strategy new markets • EU Packaging and Packaging Waste Regulation (PPWR) enabling vast European market opportunity +30% • Securing leading market position in key new growth markets Promising revenue outlook for 2024 and beyond R
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: 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 22: 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 Fully interoperable DRS with By Spring 2026 UK
Slide 23: Strategic focus over the medium term
Strategic focus over the medium term Investing wisely to capture wave of new market opportunities • Focus on greenfield markets • Profitable growth and operating leverage • Continue to strengthen business foundations and technology offering
Slide 24: Q&A
Q&A Next event: August 15, 2024 – Q2 24 results
Slide 25: Appendix
Appendix
Slide 26: Profit & Loss
Profit & Loss* in EUR thousands Q1 24 Q1 23 YTD 24 YTD 23 Revenues 27 436 10 408 27 436 10 408 Cost of sales (17 831) (6 882) (17 872) (6 882) Gross Profit 9 606 3 526 9 606 3 526 Selling and distribution expenses (1 133) (642) (1 133) (642) General and administrative expenses (7 046) (4 785) (7 046
Slide 27: Balance sheet
Balance sheet* in EUR thousands Note 31.03.24 31.12.23 31.03.23 in EUR thousands Note 31.03.24 31.12.23 31.03.23 Equity Assets Share capital 2 885 2 585 2 303 Non-current assets Share premium 95 504 71 022 71 606 Intangible assets 9 292 9 240 8 706 17 503 14 994 Translation reserves 5 197 4 510 4 87
Slide 28: Cash Flow Statement
Cash Flow Statement* in EUR thousands Note Q1 24 Q1 23 YTD 24 YTD 23 Cashflow from operating activities Operating results 1 065 (2 244) 1 065 (2 244) Adjustment for: Depreciation & Amortization 1 676 1 378 1 676 1 378 Changes in: Changes in trade and other receivables (2 697) (3 856) (2 697) (3 856)
Slide 29: Contact
Contact: EnvipcoInvestorRelations@envipco.com mailto:investorrelations@envipco.com www.envipco.com