Envipco Holding N.V. · EURONEXT:ENVI
Envipco — Investor Presentation (2023)
28 slides from Envipco's investor presentation, 2023
Slide 1: Company presentation
Company presentation © envipco 2023
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: This is Envipco
This is Envipco Revenue (EURm) Revenue distribution Q4’22 Envipco is a recycling technology 56,0 company with over four decades Europe of experience delivering reverse 35,4 36,3 38,4 33% 34,1 30,8 vending machines (RVMs) to 67% leading customers across the world North America 2017 2018 2019 2020 202
Slide 4: Key highlights Q4 and Full year 2022
Key highlights Q4 and Full year 2022 Operations Market highlights Record year with revenues of EUR 56.0 million (+46%) Q4 revenues of EUR 12.9 million (+5%) Europe’s revenue growth accelerating to EUR 17.8 million in 2022 (+145%) Delivery of 24 Quantum platforms to Greece in Q4’22 pre-DRS go-live No
Slide 5: Seasoned team with extensive cross-functional experience
Seasoned team with extensive cross-functional experience Simon Bolton Gregory Garvey CEO (Since 2020 at Envipco) Chairman (Since 2009 at Envipco) • More than 25 years of business & leadership experience • More than 25 years of industry experience • CEO of Waterlogic prior to joining Envipco • Served
Slide 6: Dedicated to improving recycling rates
Dedicated to improving recycling rates Environment Social Develop customized programs promoting sustainability, helping • Providing scholar- and internships to students pursuing beverage companies increase recovery of bottles and cans environmentally-focused careers RVMs are essential to efficie
Slide 7: European legislation driving plastic recycling
European legislation driving plastic recycling CHALLENGE S OLUTION TA R G E T Plastic waste is putting a Implement meaningful and Real stretch targets to achieve a growing strain on the targeted legislation sustainable economy environment 8 MILLION TONS OF PLASTIC INTO THE OCEAN EVERY YEAR 77% PET b
Slide 8: 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 2023 Product launch New market New market Product launch Produc
Slide 9: Loyal market leading customer base
Loyal market leading customer base 20 32% Years Average tenure of the largest customers Top ten largest customers share of revenue 9
Slide 10: Generating several revenue streams across the value chain
Generating several revenue streams across the value chain Capabilities across the RVM lifecycle Generating revenue streams across the value chain Developing and consulting Machines and Parts (non-recurring) Assisting in DRS design and implementation Experience and expertise in solution selection
Slide 11: Highly competitive with ability to capture new markets
Highly competitive with ability to capture new markets Market demand The right Ability to High customer for strong #2 products execute satisfaction Growing market share Delivery across value Superior customer in existing and new State of the art products chain centric service markets Conti
Slide 12: Broad and advanced technology platform to serve client needs
Broad and advanced technology platform to serve client needs Product Key features Target market 40 containers/min Convenience stores FLEX Smallest, low-cost Small Footprint (60cm wide) Gas stations RVM Glass side sort option Schools 42 containers/min ULTRA Supermarkets Single commodi
Slide 13: Production platform to meet future demand
Production platform to meet future demand Location Naugatuck (CT), USA Westerkappeln, Germany Alba Iulia, Romania (New Plant May ’22) Flex Flex Quantum Ultra Ultra Speciality Products Optima Sub-assemblies Operations ~8,000 RVMs/year ~11,000 RVMs/year ~200 Quantum/year ~20,00
Slide 14: Business model driven by DRS legislation
Business model driven by DRS legislation Material and deposit flow in a Deposit Return Scheme (DRS) Sells full product Pays for product + deposit Buys full product, returns empty container Collects Distributes Deposits, handling Scrap revenue and fees, contract fees 90% of escheats to from Distribut
Slide 15: Strengthening market position in North America
Strengthening market position in North America Key drivers for success in North America Winning when going head-to-head with competitors Market share development in the US as a strong #2 Stable long-term agreements with Envipco Other leading retailers 76% Growth through existing customers and 63% co
Slide 16: Building on US competencies to expand Global footprint
Building on US competencies to expand Global footprint Legend Sales Existing & developing markets Global head quarters Manufacturing facility office 16
Slide 17: 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 17
Slide 18: 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 Portugal Turkey Greece Austria (24/25) Scotland Ireland UK Spain (25/26) Romania Hungary Poland France
Slide 19: Proven ability to gain market share in mature European market
Proven ability to gain market share in mature European market Key drivers for success in the Swedish market Disruptive technology Abisko Replacing indoor RVM setups with outside new technology Quantum shown to boost volumes between 90% to 900% 120+ Technology agreement with system operator QUANTUM M
Slide 20: Strategy tailored for success in the Scottish market
Strategy tailored for success in the Scottish market Strategic initiatives in emerging Scottish market Store owner «I am happy to vouch for Envipco providing excellent tech. and great service» Scotland showroom Early presence with all stakeholders Store owner Store owner Early presence with govern
Slide 21: Breakthrough concepts proven and ready for market expansion
Breakthrough concepts proven and ready for market expansion Flex suited for smaller set-ups with market leading compaction Quantum superior retail fit for large supermarkets and recycling centers Revolutionizing the Swedish market Excellent fit for growth in the UK Consumer preference for bulk-feed
Slide 22: 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
Slide 23: Profit and Loss Q4 2022
Profit and Loss Q4 2022 (EUR million) Q4 2022 Q4 2021 FY 2022 FY 2021 Q4 2022 Revenues 12.9 12.4 56.0 38.4 5% YoY revenue growth to EUR 12.9m in Q4’22 (9.2) (8.5) (38.3) (25.0) Cost of revenue Gross margin 29.2% in Q4’22 Gross profit 3.8 3.9 17.6 13.4 Ex-Greece gross margin 31.6% Gross margin,
Slide 24: Cash Flow 2022
Cash Flow 2022 Cash flow 2022 Cash flow 2022 EUR million Cash from operating activities EUR 11.3m 14.5 EUR 15.0m from private placement (under operating cash flow as of year end due to share lending agreement) 6.5 6.7 Negative EUR 10.0m from inventory build-up Cash flow from investing activi
Slide 25: Financial position as per Q4 2022
Financial position as per Q4 2022 Balance sheet (31/12/22) EUR million Total assets of EUR 77.7m (EUR 51.7m) 90 Total equity of EUR 27.7m Equity ratio 37% (56% after redelivery of private placement 75 shares in Q1’23) Cash Current liabilities EUR 30.5m in 2021 (59% equity ratio) 60 Total b
Slide 26: Proven challenger in growth market
Proven challenger in growth market Proven competitor with clear differentiated positioning… New markets are open with no incumbency Retailers demand competitive tender and choice Market demand for Rational global leader strong #2 Early entry and interaction with stakeholders Envipco runs D
Slide 27: 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 27
Slide 28: The right company at the right time
The right company at the right time Well positioned to address huge market Global presence and deep Proven to capture market share expansion experience within DRS Advanced technology ready Extensive dialogue with major retailers Ready to execute with highly for deployment leading to RFPs