Envipco Holding N.v. · EURONEXT:ENVI
Envipco — Investor Presentation (May 2017)
55 slides from Envipco's investor presentation, May 2017
Slide 1: The Envipco Opportunity
for a better future The Envipco Opportunity Investor Presentation
Slide 2: Envipco Potential
ENVIPCO POTENTIAL ENVIPCO (ENVI) is a leading global provider of recycling systems and Reverse Vending Machine (RVM) technology since 1986 Envipco is the #2 supplier and operator of RVM Systems in the USA market 6,000 machines installed to date Customer base includes world’s largest retailer
Slide 3: Envipco Potential (cont'd)
ENVIPCO POTENTIAL (cont’d) Complete range of products covering convenience, retail, supermarkets and recycling centers for handling one‐way containers – QUANTUM (Bulk feed; Deposit and non‐deposit) ‣ Revolutionary customer experience – ULTRA Product Line (Flexible, high speed, single feed) ‣ Fully
Slide 4: Envipco Product Range
ENVIPCO PRODUCT RANGE @Oemco
Slide 5: The Evolution of Reverse Vending
THE EVOLUTION OF REVERSE VENDING MANUAL OBSTRUCTED FEED OPEN FEED BULK FEED System Work Store employee Consumer Consumer Machine Costly and Saves cost Faster, but not Fastest and most Convenience inaccurate and accurate consumer‐friendly consumer‐friendly Speed 10/min 20/min 40/min 100/min System Co
Slide 6: Envipco Product Range
ENVIPCO PRODUCT RANGE FLEX Simple, low‐cost RVM - Convenience stores Barcode up reading function - Gas stations Deposit/Non‐deposit - Schools/canteens Optional shape system - Drug stores ULTRA State‐of‐the‐art RVM - Supermarket Market leading compaction - Hypermarket 320° barcode readi
Slide 7: The Quantum Concept – A Breakthrough Technology
THE QUANTUM CONCEPT – A BREAKTHROUGH TECHNOLOGY Means a Quantum Leap in RVMs – Great enhancement of consumer experience, empty bags into machine – Premium and Innovative technology (iPhone vs Nokia) Means efficient return of containers in Quantities – Enhanced store operations, – >100 Cans and P
Slide 8: On a 1M2 Footprint the Quantum Does
ON A 1M2 FOOTPRINT THE QUANTUM DOES Pre‐sort and singulation Recognition by – Shape – Barcode – Metal Elevation Sorting into 2 fractions – Can – PET Rejection of unwanted containers – Unknown barcode – Not read barcodes – Too much liquid/ Too heavy 8
Slide 9: Quantum Highlights
QUANTUM HIGHLIGHTS Sorting accuracy Guided Air Jet Array sorting; Container tracking by cameras; Tracked reject of full containers Convenience Just empty the bag Performance of cans and plastic > 100 containers/ bottles into the tray minute Easy to use Large 17” screen; Ergonomic and Capacity logic
Slide 10: Quantum Features
QUANTUM FEATURES Large 17” screen for Optional Touch User Guidance and Screen Advertising Inviting and robust design Receipt printer with paper chute and button Convenient Bulk feed tray Highly visible chute for Rejects Easy to clean tray insert 10
Slide 11: Ultra Product Line Highlights
ULTRA PRODUCT LINE HIGHLIGHTS State of the art RVM – For US, EU and Non‐deposit market – In regular deliveries for 4 years from Envipco US factory High speed ring scanner (320 degrees) – Fewer moving parts reduces cost of service – 40/min per container reduces queuing and improves service – PET
Slide 12: Flex Highlights
FLEX HIGHLIGHTS Convenience – Accept containers as fast as the user can feed them State‐of‐the‐art recognition – Wide Barcode reading field (120 upwards) – Materials (PET, Metal) and Shape (Size matching) recognition Capacity – 285 Plastic bottles and 600 cans – On Small footprint – 60 x 85
Slide 13: Compaction: PIN-PET Flattener for Plastic Containers
COMPACTION PIN‐PET Flattener™ for Plastic Containers The PIN‐PET Flattener™ for plastic containers features high compression dual steel rollers overlaid with hardened roll pins that perforate the plastic container as well as destroy the neck and base of the bottle, preventing it from regaining its
Slide 14: RVM Digital Platform
RVM Digital Platform Transforming RVMs into a digital platform Introduction of ePort – RVM status directly to store personnel – Request pickup / supplies / upc additions – Send / receive e‐mail with Envipco personnel – Validator – receipt authentication Capturing captive recyclers through intera
Slide 15: Ultra 48 Product Certifications and Patent Overview
ULTRA 48 PRODUCT CERTIFICATIONS AND PATENT OVERVIEW North America: ETL Listing certified according to (Report No. 101253044NYM‐001) – UL 751 – UL standards for Safety for Vending Machines, (8th edition, Jul 20,2012) – CSA C22 # 128 Vending machines – General Instruction No. 1: 1995 (R2009)(R2013)
Slide 16: Envipco Global Priorities
ENVIPCO GLOBAL PRIORITIES Current Operations – Deposit Markets Expansion – Deposit Markets Current Operations – Non-deposit Markets Confidential & Private 16
Slide 17: Growth Strategy – Focus and Execution
GROWTH STRATEGY – “FOCUS AND EXECUTION” North America – Continued execution on long‐term retailer contracts and competitive opportunities – Launch of disruptive technology, QUANTUM, in ideal Michigan market – Opportunistic expansion into Canada around cost advantageous FLEX Europe – Build on suc
Slide 18: Growth Strategy – Focus and Execution (cont'd)
GROWTH STRATEGY – “FOCUS AND EXECUTION” (cont’d) ROW – Support our Australian distributor in executing on the NSW deposit scheme and achieving meaningful market share – Support NSW deposit scheme success in leveraging other Australian territories in deposit expansion (i.e., Queensland) 18
Slide 19: North America Market Report
NORTH AMERICA MARKET REPORT © envipco
Slide 20: Envipco North America - Deposit
ENVIPCO NORTH AMERICA ‐ DEPOSIT RVM – USA and Canada – Over 6,000 placements ‐ projected to increase strongly by 2019 Alaska Hawaii 20
Slide 21: North American RVM - Deposit
NORTH AMERICAN RVM ‐ DEPOSIT RVM Sales Service and Pickup and Sort After and Lease Administration Maintenance Processing Program 21
Slide 22: Competitive Landscape
COMPETITIVE LANDSCAPE Competition – 2 Players market ENVIPCO – Clearly established and capable competitor – ULTRA product line positions the company for success – Recent market gains have won over new loyal customers – Quantum concept clearly resonating with Michigan Retailers – Reputation as a
Slide 23: Ultra HDS – Comstock Park, MI
ULTRA HDS – COMSTOCK PARK, MI 23
Slide 24: US Quantum MI Launch
US QUANTUM MI LAUNCH Michigan market ideally suited to Quantum High container volumes and large footprint bottle rooms A major Retailer has 85 stores and is a committed launch partner Retail launch partner’s ambition is to use Quantum to drive foot traffic into their stores and create a comp
Slide 25: Sort-After
SORT‐AFTER Redemption program in NYC Utilizes Envipco’s industrial, high‐speed BulkMaster counting machines Volume up 70% from 2009 to 2016 (see graph) – Sort‐After is a compliance solution for NYC drug store retailers: Walgreens, CVS , 90 Rite‐Aid, etc. CONTAINERS PROCESSED Bags of used bever
Slide 26: Sweden Market Report
SWEDEN MARKET REPORT for a better future
Slide 27: Sweden Overview - Deposit
SWEDEN OVERVIEW ‐ DEPOSIT Envipco market entry supported by technology agreement with Returpack (Swedish deposit system operator) Significant number of Quantum Outdoor locations installed Dedicated sales & services force for Swedish retailers on Flex and Quantum product lines Quantum Indoor
Slide 28: Returpack Relationship
RETURPACK RELATIONSHIP Proven to be very supportive partner Concept of converting manual volume to QUANTUM outdoor solution is viewed as a success Opportunity to machine the costly low volume container channel with FLEX Showcases Envipco technology leadership with government‐supported deposi
Slide 29: Market Opportunity
MARKET OPPORTUNITY Retail market leaders – ICA: 1,321 stores – COOP: 713 stores – Axfood: 731 stores – Bergendahls: 157 stores – Lidl: 168 stores – Netto: 155 stores Current machine base: 4,312 machines – Single Quantum Outdoor equates to 5 standalone RVMs – Single Quantum Indoor equates to 3 st
Slide 30: Competitive Landscape
COMPETITIVE LANDSCAPE Three competitors – Dominated by Tomra & two smaller players ENVIPCO – Recognized as a credible technology provider and real choice against the market leader – QUANTUM has created a reputation for technology leadership – Outdoor unit proliferation exposing large numbers of
Slide 31: Quantum – Malmö, Sweden
QUANTUM – MALMÖ, SWEDEN 31
Slide 32: Quantum in Motion
QUANTUM IN MOTION > » Oerwieco
Slide 33: France Market Report
FRANCE MARKET REPORT © envipco
Slide 34: France Overview – Non-Deposit
FRANCE OVERVIEW – NON‐DEPOSIT The RVM French market, despite previous years’ stagnation, had a boost in 2016 due to three main factors: – Very low collection rate (around 49% for PET) – The support of Eco‐Emballage ‣ Support is limited and depends on the location and the total number of machines ‣
Slide 35: France RVM Installations
FRANCE RVM INSTALLATIONS Lemontri (our distributor in France) Current install base includes – 50+ ULTRA 48 – Plans to significantly expand Potential barrier – Eco‐Emballages has new restrictive policy to limit subsidies 35
Slide 36: Competitive Landscape – Office Sector
COMPETITIVE LANDSCAPE – OFFICE SECTOR Company Install Base CANIBAL 120+ machines installed CFKD 100+ Manual compactor machines installed; distributing the RVMs of Tritech Italy (installed in Paris airports) PAPREC 20 ENVIPCO Flex machines LEMONTRI 50 ENVIPCO Flex machines 36
Slide 37: Competitive Landscape – Retailer Sector
COMPETITIVE LANDSCAPE – RETAILER SECTOR Company Install Base Platform Revenue Ownership RECO 35+ Kiosk with Tomra Advertising: Nestlé Owned by SITA/SUEZ machines machine (T63/T9) Waters & Danone (one of the biggest Subsidy: Eco‐Emballages waste mgmt companies in France) HYPER BOX 15 machines Kiosk w
Slide 38: Greece & Cyprus Market Report
GREECE & CYPRUS MARKET REPORT
Slide 39: Greece Overview – Non-Deposit
GREECE OVERVIEW – NON‐DEPOSIT GREECE has seen a recent revitalization of its market due to 3 main factors: – European legislation requiring local authorities to sort the 3 main materials (PET, Cans, Glass) into separate bins – Subsidies from the European Community to promote the collection and sor
Slide 40: Competitive Landscape - Greece
COMPETITIVE LANDSCAPE ‐ GREECE HERRCO – Has installed only one recycling center (in 2014 using Repant machines) – Needs to replace blue bins with machines that sort and separate materials ‐ per latest EU Directive, materials must be sorted at point of collection ENVIPCO (TEXAN – our distributor)
Slide 41: Cyprus Overview – Non-Deposit
CYPRUS OVERVIEW – NON‐DEPOSIT The European Community financed a project in 2015‐2016 to install 9 recycling centers in Cyprus – won by TEXAN Second tender for 10 new recycling centers launched at end of 2016 – also financed by European Community (31 RVMs) Cyprus must meet EU directive targets
Slide 42: Competitive Landscape - Cyprus
COMPETITIVE LANDSCAPE ‐ CYPRUS ENVIPCO – First 9 recycling centers bid won by TEXAN via its Cypriot subsidiary – Each of the 9 recycling centers contains 3 ENVIPCO Ultra 48 machines (one PET, one can and one glass) Others – TEXAN is bidding for the second time but in more competitive environment
Slide 43: Australia Market Report
AUSTRALIA MARKET REPORT © envipco
Slide 44: New South Wales (NSW) Legislation - Deposit
NEW SOUTH WALES (NSW) LEGISLATION ‐ DEPOSIT New South Wales implementing “Container Refund” legislation to commence December 1, 2017 Government to appoint Scheme Coordinator, by June 2017, responsible the financial management, auditing, validating and awareness of the Scheme Government to appoint
Slide 45: Competitive Landscape
COMPETITIVE LANDSCAPE Potential competitors: – Tomra – 1‐2 RVM players ENVIPCO – Well established distributor of RVMS in Australia with the highest number of RVMs – Envirobank has proven itself in Australia as a coordinator in the Northern Territory and has deployed 100+ RVM’s in NSW – Enviroban
Slide 46: Envipco Role and Opportunity
ENVIPCO ROLE AND OPPORTUNITY RVM Provider – In partnership with our distributor Envirobank, market based RVM solutions for collection depots and retail redemption centers Network Operator (Envirobank) – Well positioned to win approvals in key population centers in NSW – “Build it first” strategy
Slide 47: Other Market Opportunities
OTHER MARKET OPPORTUNITIES Envipco has extensive experience in non‐deposit schemes from technology deployment to consumer attraction Scalable non‐deposit schemes demand the most cost‐ efficient, engineered solutions combined with sustainable financial support systems Legislative mechanisms to
Slide 48: Active Deposit Legislation Activities
ACTIVE DEPOSIT LEGISLATION ACTIVITIES List of Potential for RVM Market (next 5 years) UK – Scotland: Trial conducted 2 years ago – London: Mayor supporting container deposit law – Nationwide: Deposit law in manifesto of election of 2 out of 3 major parties Australia – Queensland: 2018/2019 – Vic
Slide 49: Concept Proven: Reimagine (Dallas, TX)
CONCEPT PROVEN: REIMAGINE (DALLAS, TX) Concept and operations of bulk feed proven – in 5 non‐deposit test locations in Texas with up to 700k containers per month per center Envipco has done extensive research – into all aspects of user acceptance and usability Key Successes – Volumes – Consume
Slide 50: Non-Deposit Market Experience
NON‐DEPOSIT MARKET EXPERIENCE Australia UK – Milton Keynes Brazil Shopping Centre Greece – Carrefour Misaki, Japan Ireland school Supermarket 50
Slide 51: Manufacturing Highlights
MANUFACTURING HIGHLIGHTS Naugatuck, CT USA Westerkappeln, Germany ULTRA 48, HDS and FLEX (Lean based) QUANTUM 25 years manufacturing experience Repair (limited) of the compactor business 75,000 square feet Production (owned) 30,000 square feet leased Scalable capacity Scalable produc
Slide 52: Growth and Profitability
GROWTH AND PROFITABILITY © envipco
Slide 53: Envipco Group Segment Analysis 2012-2016
ENVIPCO GROUP SEGMENT ANALYSIS ‐ 2012‐2016 North America 35,000 Revenue €'000 Europe 30,000 25,000 ROW 20,000 Total 15,000 10,000 5,000 ‐ 2012 2013 2014 2015 2016 Net Profit after tax €'000 RVM/Services 10,000 8,000 Holding / Others 6,000 4,000 Discontinued 2,000 ‐ operations ‐ Plastics (2,000) Tota
Slide 54: Financial Overview
FINANCIAL OVERVIEW 2014 2015 2016 €'000 Audited Audited Audited Fixed assets & Intangibles 10,530 15,604 21,564 Current assets 14,348 17,139 19,181 Current liabilities 6,618 9,934 11,823 Non‐current liabilities 3,255 5,192 5,441 Equity 15,005 17,617 23,481 EBITDA ‐ Continued operations 10,779 4,307
Slide 55: Investment Opportunity
INVESTMENT OPPORTUNITY Demonstrated performance against market leader – Market share growth in North America – Successful entry in Sweden – Disruptive technology, QUANTUM, changes the paradigm – Successful execution in both deposit and non‐deposit market opportunities Strong IP portfolio (Techno