Envipco Holding N.V.

Good morning, and welcome to Mvipco Q1 2026 earnings presentation. My name is Michael Clement, Chief Strategy and IR Officer at Mvipco. And with me today, I will present together with Bob Lincoln, President of Americas and heading up our UK business. As usual, we'll walk you through the highlights of the quarter. We'll talk about our financials, and we will go into deeper discussions of market developments and our outlook. We will open for a Q&A session following the presentation. But first, today, I would like you to welcome Mrs. Josée Matisse, who joined Invetco as Group CEO this week. Jose brings a wealth of experience from related industries. And before we move on, I would like to give Jose an opportunity to introduce yourself.

Thank you, Michael. My name is Jose Matthijsen, and indeed, I joined Enzipco as CEO this week, indeed, in May. I think it's a very exciting business opportunity that Enzipco brings and a possibility to contribute to the circular economy shift that's happening in Europe right now. I bring experience indeed, and let me talk a little bit about that. The last five years, I was part of the executive board of SIG, a company selling packaging equipment and after sales and service, and having long-lasting relationships with customers like Envypco has. Before that, I spent a lot of time in my career in fast-moving consumer goods. working for Friesland Campina, being responsible for cheese sales to the retail across Europe and before that at Heineken in multiple different countries where I was managing director for companies and smaller companies and larger companies with different maturities. So as much as the technology of Envipco is new to me, its customers, the value chain and the business of scaling a commercial business is not. So I'm very excited to join NVIPCO at this stage of their maturity. I'm also very familiar with the different legislation that leads to the rollout of DRS in Europe, which of course creates a great momentum for NVIPCO. And I believe that the team has laid down a very good foundation for that growth, to capture that growth. We have good teams across the European countries, and we obviously have a strong team in the U.S. We have a good buildup of capacity to capture the growth that is coming. So I believe we're very well prepared, and we have a very good portfolio that also caters for the different needs of a wide variety of customers. So all in all, I'm very excited to join. I'm very grateful for the trust that the board has given to me. And I'm happy to be here today with the team to present Q1 results. With that, Michael, I give it back to you.

Thank you. So with that, let's move into the financial review and some highlights of the first quarter of 2026. Group revenues in the first quarter of 26 were 19.7 million euros, a decline of 6% on stable operations in North America and somewhat mixed performance in Europe. Our gross margins improved sequentially to 34.1%, driven positively by product mix, but still reflecting a building of our service organization and underutilization of our assembly operations. With office at 11.2 million, EBITDA came in at negative 2.1 million in the quarter, with operating profit at negative 4.5 million euros. The quarter has been characterized by strong commercial activity with several new wins and with anticipation of higher activity levels going forward, we have built our inventories and continue to build our team. We exited the quarter with cash balances of 41.6 million euros. This has been a very active quarter for Envipco, and the commercial momentum for the company is building. We're very happy to welcome Jose as the company's new CEO from this week. We have had a number of new commercial wins. In Portugal, we have announced a win with the operator, SDR Portugal, for Quantums. We have announced retail wins with Covida and also Spar Portugal. In Poland, we're very happy to team up with Neto Polska and we'll install up to 700 RVMs across Poland in the current year for Neto. We have had breakthrough orders in the UK market and announced two major wins in the UK with up to 3,800 RVMs being installed from first half of 2027. And in the Netherlands, we've had strong commercial momentum, many new wins, and continue to drive deployments of our quantum technology for bulk feed collection across the Netherlands. reaching 50 installations in total now just a few days ago. We continue to build our organization close to 600 employees at the end of Q1 with a growth in the last period driven largely from new employees in our assembly facilities and expansion of our field service capacity in new markets. For those of you who are new to MVIPCO, MVIPCO is a global recycling technology company. We make reverse vending machines, enabling the automated collection of empty beverage containers used in DRS's deposit return schemes globally. Historically, a North American-based company, the company pivoted into Europe a few years ago and has since won significant market share in new greenfield DRS markets. Building on a delivery capacity and seeing a very strong tailwind from new deposit legislation across Europe, and ZIPCO is looking very positive to the opportunities ahead. Then let's move a little further into the financials for the first quarter. P&L first. Revenues, as mentioned, 19.7 million euros, down 6% year-over-year. The decline is largely explained by stable operations in North America and somewhat mixed operations in Europe. A few markets, such as the Netherlands, and new sales in Poland are positive drivers, whereas some of our existing markets, such as Hungary and Romania, are down on a year-over-year basis. Gross margins improved sequentially to 34.1%, but are down on a year-over-year basis. They continue to reflect the lower capacity utilization as we have built our production capacity, and the building of our service organization in new markets. Operate expenses were 11.2 million euros, up 100,000 euros from Q4, with EBITDA at negative 2.1 million euros. European revenues were 12 million euros in the quarter, down 2% year-over-year. and timing of markets continue to cause quarterly variations. That is an important factor for Invitical. This quarter, RVM sales are down somewhat year over year, 10.2 versus 11 million last year, with some of the difference being explained by a higher share of deliveries on throughput and lease. thereby giving the revenue recognition over the contract lifetime versus as an upfront sale in the quarter. Slower sales, as mentioned, in Hungary and Romania, but with very positive developments in Poland and the Netherlands. Program services in Europe in the quarter were €1.8 million, up from €1.3 million in Q1 last year. North American operations, revenues of 7.7 million euros, down 11% year-over-year in euro terms. FX-adjusted, the decline is 1%. So U.S. operations are relatively stable versus the first quarter of last year. Program service revenues were down 5% to 7 million euros, up on an FX-adjusted basis, whereas RVM sales were down 47% to 0.7 million euros. Difficult comparisons with a few quantum deliveries in the first quarter of 2025. With new orders in North America, the company expects RVM activity to increase for the remainder of 2026. The gross margin, as mentioned, 34.1%, up sequentially from an adjusted margin of 32.3% in Q4. reported margin in Q4 was 25.1%, including some write downs on inventories as discussed in March. And then moving on to OPEX. OPEX up marginally on a sequential basis from 11.1 million euros to 11.2 million euros this quarter. up 14% year-over-year from 9.8 million euros in the first quarter of last year. We exit the quarter with 597 employees, of which close to half are in field service and assembly. Over to our financial position. Balance sheet total is down sequentially from 158 million euros in Q4 to 151.1 million euros in Q1. We exit Q1 with cash at 41.6 million euros down from 59.8 million euros in Q4. This is partly explained by an increase in working capital. Working capital growth is up 10.8 million euros to 68.3 million euros in Q1. Inventors are building up more than 5 million euros and trade receivables are also increasing on late sales in the quarter. The inventory build is raw materials increasing as the company is securing components for anticipated higher deliveries through the year. Total borrowings are down by 0.7 million euros to 18.7 million euros at the end of 2021 on scheduled repayments. There is a reclass in our long-term and short-term borrowings this quarter. Subsequent to our Q425 report, the loan facility was reclassified due to a temporary confidence breach at the year end. A formal waiver has been obtained, and there have been no consequences. And going forward, the company expects to reclassify the loan as long-term. Current liabilities at the end of Q1 were 44.4 million euros, up from 33.1 million euros at the end of Q4, with trade creditors down 2 million to 13 million euros. From there, moving into the cash flow. The company started out the quarter with 59.8 million euros in cash. Cash from operating activities were negative 15.2 million euros, with working capital increase explaining 12.5 million euros. Cash flow from investing activities, negative 1.3 million euros in the quarter. Capitalized R&D, 0.7 million euros, and regular CapEx of 0.6 million euros. Cash from financing activities in Q1 were minus 2 million euros, with debt repayments of .7 million euros in the quarter. Exiting Q1 with 41.6 million euros in cash balances. Then let's move into some outlook and market discussions. As a reminder, And Dipco has a growth platform based on four solid pillars. One is, of course, to continue to develop our existing business. So moving from installations to service businesses in existing markets after a period of warranty. Then the largest driver for the company in the last few years and anticipated to be in the next few years or greenfield growth opportunities, driven forth by new countries putting forth DRS legislation, introducing deposit return schemes. Through our technology, we are also able to develop business and drive selective growth in existing DRS markets through a brownfield growth strategy. What we have done in Sweden, what we are doing in the Netherlands are strong examples of a very successful growth field, brownfield growth strategy. And on top of that, we have a selected M&A strategy, such as the acquisition of Sensibyn in 2024, giving us the compact product for the convenience sort segment. There are a number of countries driving new market opportunity for this industry in the years ahead. The EU packaging and packaging waste regulation are setting clear targets for all EU nations to collect 90% of all empty beverage containers by early 2029. This is a regulation mandating the introduction of DRS unless existing systems reach certain collection targets over the next few years. Ahead of us now, we are looking at Greece seeking to introduce a DRS, national DRS, this year. The UK is actively progressing towards the introduction of a national DRS from October 2027. We are seeing that there are movements in Turkey to introduce a staged rollout of DRS potentially from this year. And then we have a range of other countries coming along in the next few years. There are still some countries that are yet to introduce activity towards introducing a deposit return schemes. We expect them also to follow as we get closer to the EU deadline. With that, I think I would like to give the word to Bob for a brief introduction on our products and the UK and US markets.