Envipco Holding N.V. · EURONEXT:ENVI

Envipco — Q4 2021 Earnings Presentation

31 slides from Envipco's earnings presentation, Feb 24, 2022

  1. Slide 1: Q4 & Full Year 2021 results

    Q4 & Full Year 2021 results February 24, 2021 1

  2. Slide 2: Presenting team

    Presenting team SIMON BOLTON DERK VISSER BOB LINCOLN CEO Group CFO President, COO 2

  3. Slide 3: Agenda

    Agenda Highlights Strategic review Operations Financials Outlook and Summary Q&A 3

  4. Slide 4: Highlights

    Highlights 4

  5. Slide 5: Key highlights Q4

    Key highlights Q4 Operations Market highlights 54% revenue growth to EUR 12.4m Q4’21 vs Q4’20 North America RVM sales growth of 41% tied to Connecticut DRS modernization and increased existing customer RVM placements Europe revenue growth 124% driven by continued Sweden Quantum sales performance com

  6. Slide 6: Key financials

    Key financials Revenue development (EURm) Gross Margin development 2020 2021 12.4 2021 37.3% 36.7% 36.5% 34.9% 9.1 9.5 31.5% 8.3 8.2 8.0 7.8 5.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 54% Revenue Growth Q4 Q4: Rapid ramp of manufacturing for North 25% YOY Revenue Growth America &Malta; Supply Chain disruptions,

  7. Slide 7: Strategic review

    Strategic review 7

  8. Slide 8: This is Envipco

    This is Envipco Revenue (EURm) Revenue distribution 2021 Envipco is a recycling technology 36.3 38.4 RoW 34.1 35.4 Europe company with over four decades 30.8 1% 19% of experience delivering reverse vending machines (RVMs) to leading customers across the 80% world North America 2017 2018 2019 2020 20

  9. Slide 9: Highly competitive with ability to capture new markets

    Highly competitive with ability to capture new markets The right Ability to High customer Market demand products execute satisfaction  Growing market share  Delivery across value  Superior customer in existing and new  Top of the line products chain centric service markets  Continuous focus on

  10. Slide 10: Global market growth towards and beyond 2025

    Global market growth towards Expecting significant growth and beyond 2025 in key global markets NORTH EUROPE AMERICA (# Units) +325% 255.000 +90% 60.000 40.000 21.000 2019 2025 2019 2025 Driven by increased awareness and legislation 10

  11. Slide 11: Operations

    Operations 11

  12. Slide 12: Progress in North America

    Progress in North America Revenue North America (EURm)  Strong quarter with Q4’21 revenue growth of 41% to EUR 9.5 million, driven by RVM sales following the +41% Connecticut DRS modernization and existing 9.5 customers  FY’21 sales reached EUR 30.8m; 15% growth versus 7.8 2.8 FY’20 0.7 6.8 6.6 6.

  13. Slide 13: Expanding our position in North America

    Expanding our position in Market development in the United States North America (# Units)  Continuing to expand in North America +90%  Competing for final open tenders from 40.000 expansion into Connecticut 21.000  New York increase of deposit value from $.05 to $.10 proposed  OBCR technology ag

  14. Slide 14: Progress in Europe

    Progress in Europe Revenue Europe (EURm)  Revenue more than doubled in Q4 versus ‘20, as a result of Quantum sales in Sweden +124%  First RVM’s in Slovakia delivered to outlets of major 2.8 retail chain in December  FY’21 sales reached EUR 7.2m; 76% growth versus FY’20  Malta orders of 300 machi

  15. Slide 15: Large second wave of legislation to enter Europe

    Large second wave of legislation to enter Europe 20 European countries are either operating, have Planned legislation core driver for second wave legislated or are politically discussing DRS today Turkey (23/24) Greece (23/24) Romania Poland (23/24) Latvia Ireland UK Malta Portugal Hungary Spain (25

  16. Slide 16: Strongly positioned to capture growing EU market

    Strongly positioned to capture Market development in Europe growing EU market (# Units) +325%  Continued development of markets initiated in 255 000 2021  Expanding position in Sweden  Increasing service revenues as market position matures 60 000  Building organization and driving position in th

  17. Slide 17: Building organization to enable scale

    Building organization to enable scale Market  Actively positioning Envipco in the focus markets development  Recruitment in prioritized locations Global supply  Recruited global supply chain leader to improve processes and standards chain  Hiring focused manager for improving international freig

  18. Slide 18: Continuously investing in growth

    Continuously investing in Operating expenses growth (EURm)  Investing to grow organization enabling scale and 14.9 expansion 13.1  Key personnel additions to Europe based management team, supply chain, logistics, and marketing 10.2 8.6  Market development in the UK and establishing organizations

  19. Slide 19: Financials

    Financials 19

  20. Slide 20: Profit and Loss

    Profit and Loss  Strong Q4 with 54% revenue growth to EUR 12.4m (EUR million) Q4 2021 Q4 2020 FY 2021 FY 2020  Strong RVM sales in both North-America and Sweden Revenues 12.4 8.0 38.4 30.8  Gross margin 31.5% in Q4’21 Cost of revenue (8.5) (4.8) (25.0) (19.1)  RVM sales margin impacted by produc

  21. Slide 21: Cash Flow

    Cash Flow Cash flow 2021  Cash generated from operating activities amounted to EUR 1.9m in 2021 EURm  Driven by improved operating results and other 4.6 3.4 income 1.9  Inventory build-up of EUR 6.1m, preparing for delivery of 2022 orders  Receivable increase of EUR 2.9m, due to high level of RV

  22. Slide 22: Financial position as per year end '21

    Financial position as per year end ‘21 Balance sheet (31/12/21) EUR million  Total assets of EUR 52.1m, compared with EUR 38.8m at the end of 20 Cash 50  Total equity of EUR 30.8m, corresponding to an equity Current ratio of 59% (‘20 54%) liabilities  Total borrowings amounted to EUR 7.1m compare

  23. Slide 23: Outlook and Summary

    Outlook and Summary 23

  24. Slide 24: Positioned to achieve ambitious long-term targets

    Positioned to achieve ambitious long-term targets Long-term revenue target Ambition towards 2025 (EURm) Growth 4x – 6x 4x – 6x Market share in new markets 35 36 31 38 30+% 2018a 2019a 2020a 2021a 2025e Gross margin 40% Increased awareness and DRS second legislative initiatives wave 24

  25. Slide 25: 1st quarter 2022 results May 26, 2022

    Next event: 1st quarter 2022 results May 26, 2022 25

  26. Slide 26: Q&A

    Q&A 26

  27. Slide 27: Appendix

    APPENDIX 27

  28. Slide 28: Proven track record of market expansion and innovation

    Proven track record of market expansion and innovation FOUNDED in 1982 NEW MARKET PRODUCT LAUNCH PRODUCT LAUNCH NEW MARKET NEW MARKET Model 200L, in the US Greece ULTRA FLEX Sweden Malta 1982 2006 2010 2013 2015 1993 2007 2011 2015 2019 2021 PRODUCT NEW MARKET NEW MARKET PRODUCT LAUNCH PRODUCT LAUNC

  29. Slide 29: We offer an advanced and specialised product portfolio

    We offer an advanced and specialised product portfolio PRODUCT KEY FEATURES TARGET MARKET  40 containers/min  Convenience stores FLEX  Small Footprint (60cm wide)  Gas stations Smallest, low-cost RVM  Glass side sort option  Schools  42 containers/min ULTRA  Supermarkets Single commodity fee

  30. Slide 30: Our strategy is based on six pillars

    Out strategy is based on six pillars BRINGING TO MARKET DELIVERING OUTSTANDING ENGAGING GROWTH INNOVATIVE AND SUPERIOR SOLUTIONS FOR OUR MARKETS PRODUCTS CUSTOMERS DEVELOPING AMBITIOUS BUILDING AND GROWING RELENTLESSLY IMPROVING AND TALENTED PEOPLE SUSTAINABLE ALLIANCES PERFORMANCE 30

  31. Slide 31: Key volume drivers

    Key volume drivers Legislation Global legislation requiring recycling solutions Awareness Production capacity Increased awareness of Volume drivers High production capacity, importance of recycling enabling short term delivery Market expansion Expanding into maturing geographies 31

Envipco — Q4 2021 Earnings Presentation on 6ix