Envipco Holding N.V.

Investor Presentation • Jan 18, 2024

Envipco

A Recycling Technology Leader Creating a Cleaner World for Future Generations

Company presentation | January 2024 Pareto Securities Power & Renewable Energy Conference

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.

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 rightsized 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 65.5 million LTM revenue Q3 23

1.7x revenue multiple 2021 – LTM Q3 23

34.9% Q3 23 gross margin

…with 2025 ambition

4 - 6x revenue growth from 2021

30+% market share in new markets

40% gross margin

Engaging a vast market opportunity

~80%

EUR 18 – 25k

Average Reverse Vending Machine price

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

Delivering on European growth strategy

Invested in building a market position

Entered several new markets over the last 5 years… …already seeing strong progress (examples)

Revenue generating country Preparations Commercial engagement Manufacturing facility

Sales office

DRS second wave

1) Council of the European Union: 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.

Why we continue to win with our customers

Broad and proven product portfolio addressing all customer segments

Proven track record with world leading retailers showing our quality and commitment

Ample production capacity

in USA, Germany and Romania with the capacity to serve large Tier 1 retailers

Consultative approach addressing customers' unique needs first and then designing a solution

Differentiating Envipco from our competitors

Financial highlights

Profit & Loss (EUR million )	2021	2022	9M 2023
N. America/RoW	31.2	38.2	24.6
Europe	7.2	18.1	27.6
Revenues	38.4	56.4	52.2
Growth y/y	25 0/0	47 %	21 %
Gross margin	35 %	33 %	35 %
EBITDA1	5.9	2.3	2.9
Operating earnings 1	2.1	- 2.7	- 1.5
Pretax earnings1	1.3	- 4.0	- 2.3
Net earnings 1	0.7	- 4.2	- 2.7

Financial position (EUR million)	2021	2022	9M 2023
Fixed assets	19.8	25.7	27.2
Current assets	28.9	53.2	62.4
Cash	3.4	16.5	4.0
Total assets	52.1	78.9	89.6
Equity	30.8	27.9	39.8
Long-term debt	6.6	12.3	19.0
Short-term liabilities	14.7	38.6	30.8
Total debt & equity	52.1	78.9	89.6
Net debt	4.0	-1.6	16.1

Envipco share overview

Share description

• Listed at Euronext Amsterdam: Ticker ENVI
• Listed at Euronext Growth Oslo Ticker ENVIP
• Market capitalization: NOK 1.86b / EUR 164m1

• of shares outstanding: 51.7 million

Top 10 Shareholders January 2024

Owner	# of shares	% share	Country	Owner type
Alexandre Bouri	19 830 670	38.4 %	Greece	Private Individuals
Gregory Garvey	7 351 980	14.2 %	United States	Private Individuals
Otus Capital Management	2 785 195	5.4 %	UK	Fund company
Lazard Frères Gestion	2 443 206	4 7 %	France	Fund company
Robert Lincoln	1 722 440	3.3 %	United States	Private Individuals
Bhajun Gool Santchurn	1 554 800	3.0 %	United States	Private Individuals
OP Asset Management	1 537 000	3.0 %	Finland	Fund company
Aktia Asset Management	1 000 940	1.9 %	Finland	Fund company
Fondita Fund Management	975 000	1.9 %	Finland	Fund company
DNB Asset Management AS	735 653	1 4 %	Norway	Fund company
Top 10 shareholders	39 936 884	77.3%
Total shares outstanding	51 690 377	100.0 %

Summary

Envipco is delivering on its growth strategy

• Securing leading market position in key new growth markets
• Innovative technology offering for all market segments
• Ample production capacity

Vast market opportunity arising

• EU legislation driving positive DRS momentum
• Total addressable market could triple next 5-10 years
• Positive near-term momentum in Greece, Hungary, Ireland and Romania

Building a scalable and profitable company with improved gross margins and operational gearing

• Committed to achieving 40% gross margin target
• Revenue growth to exceed organizational investments

Market share in new markets +30%

Revenue growth 2021 - 2025 4x – 6x

Gross margin 40%

Profit & Loss

in EUR thousands	Note	Q3 23	Q3 22	YTD 23	YTD 22	FY 22
Revenues		25 274	16 942	52 159	43 018	56 373
Cost of sales		(16 444)	(11 648)	(34 122)	(28 723)	(37 911)
Gross Profit		8 830	5 294	18 037	14 294	18 462
Selling and distribution expenses		(542)	(1 061)	(1 791)	(2 413)	(3 437)
General and administrative expenses		(5 503)	(4 675)	(16 588)	(13 210)	(18 342)
Research and development expenses		(559)	(317)	(1 168)	(1 015)	(1 351)
Other income		0	1 957	2	1 957	1 958
Operating Results		2 228	1 198	(1 509)	(386)	(2 710)
Financial expense		(460)	(1 018)	(882)	(1 345)	(1 341)
Financial income		20	(26)	44	20	97
Net finance (cost) and or income		(440)	(1 044)	(839)	(1 324)	(1 244)
Results before tax		1 788	154	(2 348)	(1 710)	(3 954)
Income taxes		(94)	(370)	(329)	(498)	(224)
Net Results		1 694	(216)	(2 676)	(2 209)	(4 178)
Other comprehensive income Items that will be reclassified subsequently to profit and loss
Exchange differences on translating foreign operations		750	2 195	53	5 602	1 625
Total other comprehensive income		750	2 195	53	5 602	1 625
Total comprehensive income		2 443	1 979	(2 623)	3 393	(2 553)
Profit attributable to:
Owners of the parent		1 694	(218)	(2 677)	(2 203)	(4 182)
Non-controlling interests		(1)	2	1	(6)	4
Total Profit/(loss) for the period		1 694	(216)	(2 676)	(2 209)	(4 178)
Total comprehensive income attributable to:
Owners of the parent		2 444	1 976	(2 624)	3 399	(2 556)
Non-controlling interests		(1)	2	1	(6)	4
		2 443	1 979	(2 623)	3 393	(2 553)
Number of weighted average (exclude treasury shares) shares used for calculations of EPS		51 690	46 051	51 690	46 051	46 051
Earnings/(loss) per share for profit attributable to the ordinary equity holders of the parent
during the period
- Basic (euro)		0.03	(0.00)	(0.05)	(0.05)	(0.09)

Balance sheet

in EUR thousands	Note	30.09.23	30.09.22	31.12.22
Assets
Non-current assets
Development Costs Etc		7 827	-	7 575
Intangible assets		9 380	7 393	8 595
Property, plant and equipment		15 589	14 126	14 175
Financial assets		222	17	830
Deferred tax assets		1 986	2 237	2 081
Restricted cash		-	340	-
Total non-current assets		27 176	24 114	25 681
Current assets
Inventory		32 876	25 182	24 114
Trade and other receivables		25 538	16 740	12 633
Cash and cash equivalents		4 008	699	16 121
Restricted cash		-	-	340
Total current assets		62 422	42 622	53 208
Total assets		89 598	66 735	78 889

in EUR thousands	Note	30.09.23	30.09.22	31.12.22
Equity
Share capital		2 585	2 303	2 303
Share premium		70 919	57 428	56 939
Translation reserves		5 644	8 494	5 591
Legal reserves		7 827	7 086	7 575
Retained earnings		(47 187)	(41 470)	(44 511)
Equity attributable to owners of		39 788	33 841	27 897
the parent
Non-controlling interests		44	45	43
Total equity		39 831	33 886	27 940
Liabilities
Non-current liabilities
Borrowings		16 544	11 157	10 930
Lease liabilities		2 313	1 104	1 233
Other liabilities		120	120	120
Deferred tax liability		-	-	50
Total non-current liabilities		18 977	12 381	12 333
Current liabilities
Borrowings		3 537	2 449	3 620
Trade creditors		13 217	10 273	10 055
Share lending liability		-	-	15 000
Accrued expenses		9 024	6 360	7 458
Provisions		1 009	210	680
Lease liabilities		1 080	579	620
Tax and social security		2 922	598	1 182
Total current liabilities		30 789	20 468	38 616
Total liabilities		49 767	32 849	50 949
Total equity and liabilities		89 598	66 735	78 889

Cash Flow Statement

in EUR thousands Note	YTD 23	YTD 22	FY 22
Cashflow from operating activities
Operating results	(1 509)	(386)	(2 710)
Adjustment for:
Depreciation & Amortization	4 388	3 715	4 969
PPP loan forgiveness	-	(1 948)	(1 948)
Changes in:
Changes in trade and other receivables	(12 143)	(1 367)	807
Changes in inventories	(9 028)	(8 412)	(8 424)
Changes in provisions	327	29	499
Changes in trade and other payables	6 331	3 290	5 572
Cash generated from operations	(11 634)	(5 079)	(1 236)
Interest received and paid	(613)	(352)	(249)
Income taxes paid	(329)	(498)	(278)
Net cash flow from operating activities	(12 576)	(5 928)	(1 763)
Investing activities
Development expenditure, patents	(1 555)	(1 156)	(2 462)
Investments in property, plant & equipment	(2 085)	(2 088)	(5 944)
Restricted cash (non-current)	-	-	-
Net cash flow used in investing activities	(3 640)	(3 244)	(8 406)
Financial activities
Proceeds of share issue	14 514	-	-
Proceeds share lending	(15 000)	-	15 000
Changes in borrowings – proceeds	9 000	9 056	13 696
Changes in borrowings – repayments	(3 541)	(1 745)	(4 779)
Changes in lease liabilities	(858)	(514)	(648)
Net cash flow from financing activities	4 115	6 798	23 269
Net increase/(decrease) in cash and cash equivalents	(12 100)	(2 375)	13 101
Opening position	16 121	3 061	3 061
Foreign currency differences on	(13)	13	(41)
cash and cash equivalents
Closing position	4 008	699	16 121
The closing position consists of:
Cash and cash equivalents	4 008	699	16 121
Total closing balance in cash and cash equivalents	4 008	699	16 121