Envipco Holding N.V. · EURONEXT:ENVI
Envipco — Q2 2023 Earnings Presentation
27 slides from Envipco's earnings presentation, Aug 24, 2023
Slide 1: Q2 & H1 2023 Results
Q2 & H1 2023 Results August 24, 2023 1
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: Presenting team
Presenting team SIMON BOLTON BOB LINCOLN THEO KAMPERMANN CEO President Interim CFO 3
Slide 4: Agenda
Agenda Highlights Operations Financials Markets Outlook and summary Q&A 4
Slide 5: Highlights
Highlights 5
Slide 6: Key financials Q2 2023
Key financials Q2 2023 Revenue development Gross Margin development EUR million, Unaudited %, Unaudited 16.9 16.5 34.7% 34.4% 33.9% 34.5% 15.9 31.2% 31.2% 13.4 10.1 10.4 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 6
Slide 7: Highlights Q2 & H1 2023
Highlights Q2 & H1 2023 ▪ Europe with EUR 8.4m revenue in Q2 (+58%) and H1 revenue EUR 10.7m (+70%) ▪ North America Q2 revenue of EUR 8.1m (-24%) and EUR 16.2m in H1 (-18%) on lower RVM machines sales compared to last year ▪ Gross margin improvement to 34.5% in Q2 and 34.2% in H1 ▪ Opex increase to
Slide 8: This is Envipco
This is Envipco Targeting regions with growth potential A recycling technology company delivering reverse Revenue development EURm vending machines to leading customers across the world 56.4 57.2 North America Europe 38.4 34.7 38.2 30.9 • 40 years of experience working with partners delivering tailo
Slide 9: Highly competitive with the ability to capture new markets
Highly competitive with the ability to capture new markets Significant growth potential The right products Execution capability Attractive partner ▪ European second wave of ▪ ▪ Advanced and specialized Expansion in Germany and ▪ Consultative approach and DRS legislation products new facility in Roma
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 Machines and Parts ▪ Sales of Reverse Vending Machines and Developing and consulting parts for replacement Machine and DRS design and implementation part
Slide 11: Specialized portfolio addressing all customer segments
Specialized portfolio addressing all customer segments NEW FLEX ULTRA OPTIMA QUANTUM MODULA Smallest, low-cost RVM Single commodity feed All-in-one commodity feed Breakthrough bulk-feed Flexible high volume system ▪ 40 containers/min ▪ 42 containers/min ▪ 42 containers/min ▪ Up to 120 containers/min
Slide 12: Operations
Operations 12
Slide 13: North America
North America Revenue North America (EUR million, Unaudited) Q2 & H1 2023 ▪ Q2’23 revenues of EUR 8.1m - down 24% YoY 10.7 ▪ H1’23 revenues of EUR 16.2m compared to EUR 9.7 19.8m in H1’22 9.2 2.6 1.1 8.7 ▪ Program services Revenues down 9% despite 8.1 8.1 increased throughput volume, variance tied t
Slide 14: Europe
Europe Revenue Europe (EUR million, Unaudited) Q2 & H1 2023 ▪ H1 revenues EUR 10.7m, up 70% YoY 8.4 ▪ Q2 revenues of EUR 8.4m, up 58% YoY ▪ Machine sales EUR 8.1m in Q2, up 62% YoY 7.2 ▪ Greece with EUR 3.5m in Quantum sales ▪ Scotland EUR 2.4m sale prior to Go-Live postponement 5.3 ▪ Sweden EUR 1.2
Slide 15: Financials
Financials 15
Slide 16: Profit and Loss
Profit and Loss in EUR millions Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Q2 2023 Revenues North America 16.5 8.1 15.9 10.7 26.9 16.2 26.1 19.8 56.4 38.2 ▪ Revenue EUR 16.5m (+3.5%) Europe 8.4 5.3 10.7 6.3 18.1 ▪ Gross margin 34.5% Gross profit 5.7 5.5 9.2 9.0 18.5 ▪ Higher margin product mix from Eur
Slide 17: Continuously investing in growth
TBD Continuously investing in growth Operating expenses (EUR million) Q2 2023 ▪ Operating expenses EUR 7.2m from EUR 5.9 in 7.2 Q2’22 0.6 ▪ Investments in organization, including launch of 5.9 Hungary organization and Scotland 0.9 reorganization ▪ Ramp-up of Greece manufacturing 5.9 ▪ Investments in
Slide 18: Cash Flow
Cash Flow Cash flow H1 2023 Cash flow H1 2023 ▪ Cash from operating activities EUR million EUR -11.1m 16.1 ▪ Operating results EUR -3.7m ▪ Increased working capital of EUR 9.7m, mainly inventory build-up for H2’23 orders ▪ Cash flow from investing activities EUR -2.8m 11.1 ▪ Investments in PP&E and
Slide 19: Financial position as per H1 2023
Financial position as per H1 2023 Balance sheet H1 2023 Balance sheet (30.06.2023) ▪ Total assets of EUR 86.6m (EUR 65.3m) EUR million ▪ Total equity of EUR 37.4m (EUR 31.9m) 90 86.6 86.6 ▪ Equity ratio 43% (49%) 7.2 ▪ Total borrowings EUR 20.3m (EUR 13.6m) 75 65.3 30.0 65.3 2.7 60 53.1 20.6 45 19.2
Slide 20: Markets
Markets 20
Slide 21: Market update North America and RoW
Market update North America and RoW Connecticut California Oregon New York and Australia Massachusetts • Doubling of Connecticut's deposit • California in the process of • Oregon technology agreement is • Supporting legislative initiatives for • Shipments expected to the value commencing in January
Slide 22: Market update Europe
Market update Europe UK, Scotland & Ireland Hungary Greece Romania Other • Scotland delayed Go-Live to • Commenced shipments in July’23 • Commenced localized Greece • Romanian operator published final • Malta DRS continues to develop October 2025; contract coverage manufacturing to support technical
Slide 23: Outlook and summary
Outlook and summary 23
Slide 24: Planned legislation driver for second wave
Planned legislation driver for second wave 2023 2024 2025 2026 2027 2028 Scotland Portugal Romania Ireland Hungary UK Poland Austria Turkey Spain France Greece Envipco currently operates in Greece as a pre-DRS market, timeline for DRS implementation not yet defined. Legislative considerations and pl
Slide 25: Positioned to achieve 2025 ambition
Positioned to achieve 2025 ambition Long-term revenue target Ambition towards 2025 (EURm) Growth 4x – 6x 4x – 6x Market share in new markets 56 35 36 31 38 30+% 2018a 2019a 2020a 2021a 2022a 2025e Gross margin 40% Increased awareness and DRS second legislative initiatives wave 25
Slide 26: Q&A
Q&A 26
Slide 27: Next events:
Next events: November 16, 2023: Third quarter 2023 results 27