Envipco N : 4th Quarter 2023 Presentation

Q4 23

Results presentation | 7 March 2024

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 uncertainties that are difficult to predict and that could cause actual performance and position to differ materially from these statements. Envipco disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or circumstances, except as required by law. Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them.

Highlights Q4 2023

• Record group revenues of EUR 35.4m (+165%)
• Gross profits up 201% y/y to EUR 12.6m on wider gross margin of 35.5%
• Leveraging on operational investments leading to all-time high EBITDA of EUR 5.9m (16.6%)
• Strong working capital management with cash up EUR 5.9m to EUR 9.9m at year-end

Revenue development

EUR million, Unaudited

Gross profit development

EUR million, Unaudited

A global recycling technology company set for growth

• Engaging a vast global market opportunity, mainly driven by deposit legislation rolled out across all EU countries
• Captured leading position in European growth markets, building on ~40% market share in North America and global Tier 1 customers
• Ready to capture new markets as legislation matures, with
  ample production capacity in the U.S, Germany, and Romania, and right- sized organization across European growth markets
• Approaching inflection point for sustained profitability with revenue doubled since 2021, economies of scale and gross margin expansion
• Executed by seasoned team with extensive cross-functional experience

Building from…

EUR 87.6 million

revenue 2023

2.3x

revenue multiple 2021 - 2023

35.5%

Q4 23 gross margin

…with 2025 ambition

4 - 6x

revenue growth from 2021

+30%

market share in new markets

40%

gross margin

Delivering on European growth strategy

Revenue development

EUR million, Unaudited

N.America/RoW

20231

Increased awareness and legislative

initiatives largely driven by maturing NorthDRS second wave (EU) American Market

1) Gross sales.

Invested in building a market position

Entered several new markets over the last 5 years…	…making strong headways in new growth markets

Revenue generating country Commercial engagement Manufacturing facility

• Installed 270+ Quantum recycling centers and +300 RVMs

• Project continuing into 2024/25 with significant potential

• Installed 700+ RVMs with MOL group of 2,300-unit order

• Extension order for up to 2,000 RVMs

• Installed 300+ RVMs

• Follow-on order of 100+ RVMs awarded in Q4 23

• Commenced installation of Modulas in Romania

• Secured preferred supplier agreement with largest independent network in Ireland supporting 1,000 locations
• Commenced installation of RVMs across Ireland

Preparations

Sales office

>90%

Mkt share

~50%

Mkt share

+30%

Mkt share

2024

launch

Engaging a vast market opportunity

+ 200k units

N.America/RoW

Europe

EUR 18 - 25k

Average Reverse Vending

Machine price

~80%

EU Legislation driving deposit return schemes (DRS) in all EU countries

Strong Consumer push to address plastic

pollution

Beverage brand holders needing clean feedstock to put back into new packaging

Industry acknowledgment that deposit return schemes work and serves the interest of all stakeholders

Threat avoidance on PET packaging bans

DRS second wave

Anticipated next wave of DRS legislation in European markets

Legislative considerations and planning		Preparations
Implementation and execution		Publicly announced launch

Envipco currently operates in Greece as a pre-DRS market, the timeline for DRS implementation is not yet defined.

EU legislation1

1. Key milestones taken from Council of the European Union position on Regulation of the European parliament and of the council on packaging and packaging waste, amending Regulation (EU) 2019/1020 and Directive (EU) 2019/904, and repealing Directive 94/62/EC, 18 December 2023 and pending final adoption.

Operational review

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	commitment	Romania with the capacity	then designing a solution
		to serve large Tier 1

retailers

Differentiating Envipco from our competitors