Envipco Holding N.V.

Earnings Release • May 14, 2025

ENVIPCO Q1 25 Expected slow start with momentum building

ENVIPCO Q1 25 Expected slow start with momentum building

Q1 2025 Highlights:

- Group revenues down 23% y/y on lower RVM sales sale in Europe

- North American revenues up 16% y/y, driven by program services and RVM sales

- Gross margin increased 220 bp y/y to 37.3%, reflecting increased operational

efficiencies

- Announced significant order in Romania

Amersfoort, The Netherlands - 14 May 2025 - Envipco, a global provider of

recycling systems and reverse vending machines (RVM), experienced as expected

a slow start to 2025 following a record Q4 24.

Group revenues came in at EUR 21.0m in the quarter, down 23% y/y. On a product

line basis Program services were up 11% y/y to EUR 8.6m, an increase in both

Europe and North America. RVM sales decreased 37% y/y primarily due to lower

Quantum sales in Europe.

Gross margin widened to 37.3% in Q1 25 compared to 35.1% in the year-earlier

period, reflecting increased operational efficiencies. Gross profit was EUR

7.8m in Q1 25.

Envipco generated EBITDA of EUR 0.5m in Q1 25. This compares to EBITDA of EUR

2.7m in Q1 24. Q1 24 EBITDA included other income of EUR 0.2m from the resale

of inventory from Scotland. EBITDA margin was 2.3% in Q1 25 vs an EBITDA

margin of 10.0% in Q1 24. Q1 25 operating profit was EUR -2.0m. This compares

to Q1 24 operating profit of EUR 1.1m.

CEO Simon Bolton comments:

"Following a record Q4 24, 2025 started out slow as anticipated due to the

timing of introduction of new DRS initiatives. However, the European DRS

opportunity pipeline is rapidly developing, and clear legislative progress is

crystallizing the vast market opportunity. In Q1 25 Envipco continues to

deliver on current markets and improves its market position. We have announced

significant new wins and continue to develop our organization, exiting the

quarter with 483 employees to deliver on anticipated market opportunities in

years to come.

During the quarter we inaugurated our Engineering Center of Excellence in

Cluj, Romania, complementing and scaling the company's business development,

sales and operations activities in Romania. The center will serve as a

strategic global R&D- and IT hub working jointly with our R&D teams in USA and

Germany to support the rapid deployment and scaling of DRS across Europe.

We are facing exciting times. The recent appointment of UK DMO as the operator

of the new DRS in the UK is a landmark event towards the 2027 DRS launch in

England, Scotland and Northern Ireland. There are ongoing developments in

Spain to drive forth a DRS introduction as mandated by law. Poland and

Portugal are both getting close to planned DRS launch Q4 25 and Q1 26 and

market activity is high. Singapore is also progressing towards planned Q2 26

DRS launch.

Building on our market position we have achieved in recent years we are

excited about our opportunities and prospects ahead."

Outlook:

Envipco continues to expand and build market position in existing markets and

expects building momentum and growth through the year. Romania and Hungary are

expected to continue to provide commercial opportunities for both 2025 and

2026. Activity in Greece is expected up in Q2 25 following a slow start to the

year and build further momentum in H2 25. Envipco's Quantum bulk feed has

proven highly efficient in the Netherlands, and the company is actively

pursuing new commercial opportunities in the Dutch market.

DRS go-live in Poland and Portugal in Q4 25 and early 2026 are expected to

generate higher activity levels in H2 25.

The majority of European revenue will be new RVM sales as the company

generates limited service revenues during DRS startup and warranty periods.

The actual timing and character of DRS introduction and go-live will influence

retailer procurement patterns and quarterly variations are expected. As the

installed base expands European Program service revenues will grow.

Envipco will continue to invest in market development, technology platforms,

administrative capacity and the organization while continuing to drive

operating leverage. The company has an expansion strategy to deliver +30%

market share across new markets. Envipco remains committed to its ambition of

long-term profitable growth and will refresh its financial targets and

ambitions in 2025.

Subsequent events:

On 15 April 2025 Envipco announced the award of a third follow-on order with a

major Romanian retail group for the delivery additional 400 Optima RVMs to

retail stores across the country. This order adds to the initial order of more

than 200 Optima RVMs announced in Q3 24 and follow-on orders of 140 and 400

Optima RVMs announced in Q4 25 and Q1 25. Delivery of the order is scheduled

through 2025.

On 23 April Envipco announced the inauguration of Envipco Engineering Center

of Excellence in Cluj-Napoca, Romania. The engineering center is an extension

of the company's global network of R&D facilities in the US and Germany and a

platform for co-creation between engineering teams. It will serve as a

strategic R&D and IT hub for the company to support the rapid deployment and

scaling of DRS across Europe.

On 29 April 2025 Envipco announced that the 2024 Annual Report will be delayed

and expected to be released by 30 May 2025.

For more information, please see the attached Q1 2025 report and presentation.

Results presentation:

The company will host a webcast to present the results today 14 May at 08:00

CET. Following the presentation, it will be opened to questions from the

audience. The presentation and the following Q&A session will be in English.

To join the webcast, use the following link: www.envipco.com/investors

For further information please contact:

Simon Bolton, Group CEO +31 33 285 1773

Mikael Clement, CSO +47 9900 8000

www.envipco.com

investors@envipco.com (mailto:envipcoinvestorrelations@envipco.com)

About Envipco Holding N.V.

Envipco Holding N.V. (Envipco), www.envipco.com, is a Netherlands-based

holding company listed on Euronext Amsterdam and Euronext Oslo Børs (Symbols:

ENVI/ENVIP). Envipco, with operations in several countries around the globe,

is a recognized leader in the development and operation of reverse vending

machines (RVMs), automated technological systems for the recovery of used

beverage containers. Known for its innovative technology and market

leadership, Envipco holds several intellectual property rights for RVM

systems, including but not limited to beverage refund deposit markings,

material type identification, compaction, and accounting.

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2025-05-14 07:00 CEST.