Envipco Holding (ENVI) investor relations material

Strategic Vision and Market Opportunity

• Focus on making recycling easier, targeting beverage containers to support a cleaner world for future generations.

• Deposit return schemes (DRS) are central, with automation and technology enabling high recovery rates, up to 90%.

• Regulatory momentum in the EU and UK mandates 90% collection, driving a wave of new DRS markets covering over 400 million people in the next five years.

• The total addressable market is set to triple, targeting a €4 billion opportunity and requiring over 200,000 new RVMs in the next five years, especially in the UK, Spain, Poland, and Portugal.

• Greenfield markets are the primary growth driver, with a target of 30%+ market share in new DRS countries and strong commercial positions in Hungary, Romania, and Greece.

Business Model, Product Portfolio, and Technology

• Broad product range from compact machines for small stores to high-capacity Quantum units for bulk and outdoor use, including the new Quantum-S for space-constrained locations.

• Four manufacturing sites and a global engineering team enable flexible, scalable production and rapid market response.

• Continuous innovation and customer feedback loops drive product improvement, cost reduction, and customization, with performance doubling over the past decade.

• Technology strategy prioritizes bulk feed, convenience store solutions, and ongoing cost/performance improvements, with a global technology organization spanning mechanical, electrical, software, and machine learning engineering.

• Selective M&A, such as the acquisition of Sensai and Sensibin, expands technology and market access.

Financial Guidance and Operational Execution

• Long-term targets reaffirmed: 30%+ market share in greenfield markets, 40% gross margin, and 20%+ EBITDA margin.

• Revenues grew 30% to €114 million in 2024, with Europe now comprising nearly 70% of total revenues.

• Recurring revenue from service contracts is set to rise significantly as the installed base grows 5-7x, supporting margin expansion.

• Financial discipline includes harmonizing ERP systems, optimizing working capital, and leveraging new credit facilities, with capex intensity around 8% of revenues.

• Financial organization strengthened for scalability, process automation, and real-time analytics to support the next growth phase.