Good morning everyone, and welcome to the quarterly report presentation of Envipco. My name is José Matthijsse, and together with Mikael Clement, we will be presenting our quarterly numbers to you today.

I have now spent 90 days with Envipco, and I believe that I have a good overview of the company and the environment in which we operate. I spent these 90 days visiting all of our locations, meeting all of our teams, seeing our machines operating in the markets, but also meeting our customers, the DRS operators, and a large part of the investors community.

The feedback that I have had has been very positive. Our customers and our DRS operators, they like the uptime of the equipment of Envipco, they like the reliability of our service teams, and they see our sales teams as a trusted partner.

What I've seen these 90 days has not changed my conviction of the compelling position in which Envipco is today. The structural market opportunity of the DRS systems is highly attractive.

It is a proven method to collect raw materials from the market, and it also reduces waste in society. It has been very inspiring to talk to citizens, but also to government officials of markets that have recently rolled out DRS, and to see how positive they are about that.

Envipco has a very compelling long-term opportunity, but it can also benefit from more direction. If we want to capture the opportunities that are ahead of us and convert them into sustainable growth, we need to professionalize the way we operate.

We need to get better alignment between the headquarters and our subsidiaries, we need to simplify our operating model, and we need to have more discipline across sales, operations, and finance. The issues we have seen with our delayed annual reporting are just not acceptable.

They are also solvable. My priority is therefore not to redefine our strategy.

My priority is to deliver on that strategy in a more consistent way, to professionalize the organization, and to rebuild confidence through disciplined delivery. The second quarter has not delivered as targeted.

With renewed focus on execution, discipline, and structure, we will return to growth and profitability. Let me take you through the quarter highlights.

With €26.1 million top line, we have shown top-line growth. That's very positive, but it has been below what we had expected.

We had expected a faster growth, and we had invested for that faster growth. That investment sits predominantly in service teams and in assembly capacity, where we now see underabsorption, and that puts pressure on our margin and our bottom line.

We need to improve that. Throughout the presentation, though, you will see that investment in growth and delivery on growth is a balancing act that affects the quarter, it doesn't impact the long-term outlook.

We are growing in many European markets, and we have built a solid backlog in the UK with confirmed orders, and we need capacity to produce that. Investing for growth remains very important.

Over the past quarter, we have been converting cash into inventory, and we expect in the next quarters that that will be turned around again. Some operational highlights: I have started at the company.

We have continued to deliver wins in the markets that started rolling out DRS recently, like Poland and Portugal. We've announced a number of major wins in the UK, going well over 5,000 machines now.

We have a record Quantum deployment in the Netherlands. At the end of this quarter, we ended our growth with just shy of 650 employees.

That's the short growth story of Envipco. Mikael will now go into more details.

Thank you, José. I will start out with some comments on the financial review for the quarter.

As José mentioned, Envipco returned to growth in the second quarter of 2026, with revenues up 13% year-over-year to €26.1 million. For the first half of the year, revenues were up 4% to €45.8 million.

Despite the positive growth, the company is not at scale yet, as José mentioned. That is impacting the company's profitability.

Gross margins in the quarter were 32.2%, with 33% for the first half of the year. In the second quarter, Envipco posted EBITDA of negative €1.7 million, with negative €3.8 million for the first half.

With operating profit at -€3.8 million in the second quarter, net loss came in at €4.1 million. Looking into the drivers, Envipco has two key geographies: Europe and North America.

Europe revenues were up 18% year-over-year to €17.1 million, and a solid sequential growth from €12 million in the first quarter. The new markets, Poland and Portugal, were key sales growth drivers on a year-over-year basis.

The company has also continued to experience a very solid traction in its operations in the Netherlands, supplying a record number of Quantums for that market in the second quarter. Existing markets, Hungary, Romania, and Sweden, are much more mature and are on the tail of deliveries.

However, Romania continues to be a very strong sales driver for the company also in the second quarter of 2026. Program services from Europe in the second quarter were up 32% year-over-year to €2.3 million.

North America represents Envipco's single largest market, with revenues in the quarter of €9 million, up 5% year-over-year. Adjusted for FX, the underlying growth is 8% on a year-on-year basis.

Program services slightly down on flat activities, down 3% year-over-year to €7.3 million, while RVM sales grew 56% year-over-year on delivery on the announced convenience store orders in the Connecticut markets. As mentioned, gross margins in the quarter were 32.2%.

These have been affected still on lower capacity utilization in our assembly operations and the continued build of our service organization. On a general note, Envipco needs to invest ahead of activity starting.

This quarter as well, positioning towards specific market opportunities in Europe led to a staffing in our assembly operations. However, the opportunity has shifted in time.

Operating costs this quarter, €12.1 million, up 17% year-over-year. Sequentially, OPEX is up by €900,000.

More than half this increase is explained by higher professional fees, largely audit and a large transfer pricing project. About 1/3 of the sequential increase is explained by marketing costs, where Envipco co-hosted a big DRS summit in Romania this spring.

Operating leverage comes with revenue. This quarter, OPEX in relation to revenues was down 10 percentage points from 57% in Q1 to 47% in Q2.

Financial position and balance sheet: Balance sheet total this quarter, €155 million, up slightly from €151.1 million in the first quarter. There are three key movements in the balance sheet this quarter.

The first being working capital. As mentioned, there's been an increase in inventory, an investment in inventory of €14.8 million, in addition to a €6 million increase in receivables on late-quarter sales.

This has brought down the cash balance at the end of Q2 to €18.7 million. There has also, as expected, been a reversal of the borrowings reclass that we had in Q1 and Q4, as communicated in the first quarter 2026 earnings presentation.

Total borrowings this quarter were down by €1.2 million to €17.5 million on scheduled repayments. In addition, there's been a €5.8 million addition to noncurrent assets through investments in RVMs for throughput services.

Taking a closer look at the working capital build, let's add some further background on this. Envipco is facing exciting market opportunities and an anticipated ramp-up in activity.

The company has announced orders for around 7,000 RVMs for the period 2026 and 2027. That is a multiple of two to three times recent activity levels.

The company is preparing for that, preparing inventory for announced wins, building some readiness to deliver on short notice in new key markets as these markets move into the second and third waves. We are preparing for a sizable market opportunity in the Greek market.

Further, the company is securing some long-lead items in inventory, specifically for some new opportunities, in example, the UK. This is the nature of the business, investing ahead of the curve.

These are investments and not cash leakage. As José mentioned, these are expected to convert in the next quarter or two.

Finally, cash flow in Q2: Cash flow from operating activities was negative €17 million, largely driven by the said working capital build. Cash flow from investing activities was a negative €6 million in Q2, largely driven by CapEx, investments in PP&E of €5.5 million, which largely, once again, is explained by RVM investments for RVMs on throughput services.

Capitalized R&D this quarter was €0.4 million. Cash flow from financing activities was negative €0.5 million, with debt repayments being offset by settlement of a shareholder loan.

Net change in cash in the second quarter: negative €23.5 million, with cash ending at €18.7 million. Then let's have a look into some of the market developments.

Envipco is facing exciting market opportunities ahead, driven forth by regulation mandating the introduction of DRS across Europe: in the EU, in the UK, and now also initiatives in Turkey. The UK has been preparing for the launch of DRS next year for some time, and that is progressing on schedule.

Greece has announced plans to introduce a DRS expected to come sometime in 2026, but not yet officially announced. Turkey is planning a staged rollout of DRS through 2026 and onwards.

Following on that, we see several countries having initiatives to introduce DRS in line with the PPWR regulation by the end of this decade. Most recently, we've seen initiatives in Italy, we've heard also on news from France, and we know that Spain also is preparing its DRS legislation for launch in a few years.

Some of our markets, let's discuss: North America is a stable market for Envipco, and Envipco continues to have a steady execution in this market. This is Envipco's original market, has more than 40 years' history in the North American market, and a strong market position with around 45% market share.

This quarter, the company has delivered on the announced orders to Connecticut-based convenience stores of more than 200 RVMs. That delivery will continue into the second half of this year.

In the second quarter, the company also installed its first Quantum with a redemption center in Connecticut, following on the very successful installations and implementations of the Quantum at a few redemption centers in New York. This quarter, now over the summer, the company is installing its first Quantum in California with an operator.

The outlook for 2026: continued stable operations with some growth in RVM sales on delivery of the Connecticut order. Envipco is off to a strong start in the UK market.

Far, the company has been appointed by four leading UK retailers to deliver RVMs in the size of 5,400 units through 2027. The company has signed a contract for delivery of compact RVMs with Iceland Foods.

The company has further announced three unnamed appointments by three leading retail groups in the UK, totaling then these four, 5,400 RVMs. Participants in the market are actively preparing to be ready for the October 2027 launch.

The DMO, or the operator in the UK, Exchange for Change, has established a deposit level, a handling fee structure, and also a grant program in the UK market to secure a broad national network of collections. Looking at the structure of the market, with a very large part of the UK retail market being driven by convenience stores, this gives very strong support to the UK becoming a very large market for RVM technology in the years ahead.

Envipco is very happy about the position established in the UK so far, and maintains high activity to continue to cater to retailers wanting to prepare for this opportunity. Envipco is still somewhat behind the curve in the Polish market.

The company lost out on a couple big wins initially following the launch of DRS in Q4 2025. Pickup in the broader market has been somewhat slower than anticipated.

Retailers have still been somewhat reluctant and been slow in the adoption of RVM technology. However, we are seeing also some changes.

Firstly, the returned beverage volumes in the market are increasing quite significantly. That is giving some pain points to retailers not yet having automated their return of beverage containers.

We're also seeing some evidence of retailers having undermachined some of their outlets. Envipco has recently or is in the process of now refreshing its operating model in Poland.

The company has a renewed team in place, is taking some of the learnings from markets in which Envipco has been very successful, such as the UK, and also other markets such as Romania, with a much more granular and proactive market approach and an even more tailored value proposition for the Polish market. This gives expectations of the company continuing to build on its position in Poland.

Envipco is strengthening and continuing to build on wins in the Portuguese market. Portugal DRS went live in April this year, and there's a very positive sentiment around the DRS implementation in the Portuguese market among consumers, retailers, and with a very strong operator as well.

Far, Envipco is establishing a number two position in that market with solid increase in Q2 revenues on delivery on secured orders, a few of which are mentioned on this slide. In Portugal, Envipco is delivering every product across the product line, from the compact through the freestanding RVMs to the Modula and Quantum.

It's a broad network of products in the Portuguese market. The pipeline is growing as we see new retailers and a new wave of retailers wanting to automate their collections of beverage containers.

The Netherlands has been a fantastic brownfield opportunity from which Envipco has capitalized in the last couple of years. The Netherlands had introduced cans to its DRS a couple of years back.

Collection rates dropped sharply. Envipco introduced the Quantum technology to the Dutch market, and that has proven very, very efficient.

Late last year, Envipco entered into a frame agreement with the operator in the Dutch market, and has been delivering on that since. Record deployments in the second quarter with an order book that continues to grow also yields optimism for the Dutch market ahead as the operator continues to strive towards the 90% collection targets in the Dutch market.

Finally on the markets slide is Greece. Greece is progressing towards national DRS.

With a base of around 500 Quantums deployed to the Greek market over the last years, together with local assembly operations and a long-standing relationship with our distributor in the Greek market, Envipco is very well positioned and ready to deliver on the opportunities offered by Greek DRS. We are prepared, we have the products available for the market, and we believe we have the value proposition that well matches the opportunities in Greece, and we're very much excited about the opportunities we are facing from the Greek DRS.

With that, I'd like to give the word back to José for a few words on outlook.

Thank you, Mikael. The market opportunity remains highly attractive, and Envipco is well positioned to capture that market opportunity.

We have proven that we can capture our targeted share with our teams, our portfolio, and our service offering. Nothing has changed on our long-term opportunity.

Our focus for the next quarters will be on delivering consistent operational progress, strengthening the organizational maturity, and communicating our development there with clarity and transparency. As I said, it's not a change of strategy; it is executing our strategy with discipline and conviction.

Let me reiterate also our strategy. It is based on the four pillars: the one being our existing business, for example our market in the US, which is a mature market where the majority of our revenue comes from service; some of our European markets are coming into this arena as well, where Romania and Hungary have gone through the curve of big installations and the revenue coming from that, and as they now go through the warranty period, revenue from service is coming in, that's an important pillar for us; then we have the new DRS markets, as Poland and Portugal are coming up to speed and we're selling machines in there, those are developing; we also have of course the great opportunity of the UK now coming on board, and then Greece being very imminent; but on top of that, also the Southern European countries, we've been having conversations in Spain about the legislation, recently we've been involved in talks with the Italian government about their rollout of DRS and their way of setting it up, we have exciting greenfield opportunities ahead of us; besides the greenfield opportunities, the third pillar is based on brownfield, where some of our technology is specifically very well equipped to bring in additional collection, to bring down the cost of collection, or to serve underpopulated areas, the example here of course is the Netherlands; our fourth pillar is that we continuously monitor opportunities for M&A that could help us grow into geographies where we are not yet present or that maybe add technologies that we don't have in our portfolio yet.

That strategy we will continue to execute on. We have the tailwind of the DRS legislation being rolled out across Europe, which will triple our addressable market over the coming years.

We currently have a very balanced portfolio across the US and Europe with existing business, brownfield operations, and new rollouts like Poland and Portugal, and then we have exciting markets coming on board like the UK, Greece, and the south of Europe. What is important now is that we execute that strategy with our discipline, that we apply the learnings from earlier rollouts and success that we've had in markets to the new markets, that as we grow we professionalize, we standardize our processes, and we simplify our organization to benefit from our scale, that we execute with rigor and discipline, and then we will deliver profitable growth.

Thank you very much for listening to us, and I think the floor will now be opened for questions. What is the first question that we are receiving, Mikael?

Let's see. Quite a few questions coming in.

Let's just start on top. Please add some color to the developments in the Polish market and how Envipco is performing.

As Mikael already just explained, the Polish market launched DRS at the end of last year. That was a very gradual launch, or a slow launch even, also complicated with a large number of operators.

We have been able as Envipco to secure a number of deals, but we'll be honest that we would like to have had more. We've been reviewing the situation in Poland, and we've seen also that there's a lot of new stores coming on board where in the beginning they were hesitant and maybe didn't mandatorily have to implement automated DRS.

They go now from manual to automation or even from no DRS to automated DRS. That has really opened up a large number of additional outlets, our addressable market is growing, and we feel that we have a good opportunity to win a targeted share in that market.

Looking at our success in the UK, we've made changes to the Polish team, we've renewed the team, and we have now a team in place that is closer to the market, that understands the market as well better. We've also seen in the UK that we've had a much more granular look at the market opportunities, at the customer needs, what type of customers we have, and we are reapplying that to Poland.

With that granular look, we are also much more able to tailor our value proposition to the needs of our customers, and bringing all of that together, we feel confident that we have a good outlook on solid growth also in Poland. Good,

good. Here's a good question.

That's for you, José: What's been your biggest surprises in the first 90 days?

Oh, the biggest surprise. Ooh.

Maybe not a surprise, but I've been very impressed with the entrepreneurial spirit that I've found in many of our operations. You can also imagine because we've been rolling out over the past years across Europe and we've been setting up new businesses.

Some of the people in our teams, they are so good at capturing the opportunities with virtually no team around them and just getting things done. That's really, really impressive.

At the back of that, as we are growing, we now need to learn to use the scale of the business together and to standardize processes, and not see everything as a new opportunity. As we grow, we need to standardize our processes, learn from each other, adopt what we've seen in successful markets and bring it to new markets, and learn to collaborate as one team through standardized processes, not reinventing the wheel.

Good, good. There's a question I'm trying to collect here, but there's a question on Greece: What's the status in Greece?

What do you know about the award of the contract of 4,000 RVMs? I guess this is a question that relates to some news articles that have been out there.

As we try to explain, Greece is preparing for rollout of DRS. The DMO, or system operator, DRS Hellas, was appointed to operate the system late last year, and there were public tenders issued this winter and spring.

We don't know anything about the volumes through those tenders, but we know a little bit about what the Greek system is looking for in terms of technology. These tenders for which, naturally, Envipco has positioned through our distributor in the Greek market is we see that they are asking for bulk-feed technology, both very much similar to what we already have established in the Greek market, mobile bulk-feed units, in addition to regular RVM technology, indoor and outdoor.

We believe we have, at Envipco, a strong value proposition for what the Greek market is asking for. We don't know anything specific about any awards yet, and we will notify the market when and if we do get that type of information.

There are a couple here on gross margins, quantifying the gross margin effect from underutilization and service hiring. First, yes, so as we tried to explain through the presentation, Envipco is investing.

We've invested in a delivery platform and assembly operations. We have four of those in Romania, Greece, Germany, and the US in order to deliver on the upcoming market opportunity.

The company has, at previous occasions, stated, we have an annual supply ability of around 30,000 RVMs per year. Naturally, we staff that up with people in the assembly operations, but we also need to staff up our service personnel to do installations in new markets.

In the first half year of that, looking at the underutilization part of this, it explains roughly 3, 3.5 percentage points on the gross margin as a gauge on what some of these investments are. Then there's also a question, follow-up on the gross margin target, 40%, does that still stand, and when do we expect to reach it?

Yes, that's a target the company set at its Capital Markets Day in Q3 last year. That remains the target for the company.

Reaching that is reliant upon revenue growth. Of course, the pace of which the company grows in the quarters and years ahead will be a determinant on when that target also potentially is reached.

Let's see here further. Inventory questions, a couple of them here: You've built inventory of €49 million.

Why the size? What's the risk of this not being converted?

Yes, Envipco has invested in inventory really for specific items: delivery on announced contracts, building some preparedness for short deliveries on frame agreements in new markets, getting ready and having preparedness to deliver on the Greek opportunity, and also securing some long-lead items specifically thinking ahead for the UK opportunity. The largest part of the inventory currently are raw materials.

There's some finished goods, and the smallest share is working process. The risk to that inventory is seen as low, and the company expects to reduce its inventory levels from Q3 versus Q2.

You're off to a great start UK, four announced wins today. How much of the market has been selected?

How much is remaining, and how do you see this developing? Do you want to add?

Yes, of course, of course. We're of course very delighted with the situation in the UK.

We've announced now four major wins, but we believe that the largest part of the market is still ahead of us. As Mikael has explained, the scheme that has been introduced by the UK operator is highly advantageous for smaller stores as well to go into automated deposits straight away from the beginning of the launch of the scheme, and we also see that traction.

There's a lot of business development still ongoing, there's a lot of markets that still needs to decide, and we feel confident that we can grow even further in the UK.

Good. Do you expect revenues to grow in the second half of 2026 versus the first half of 2026?

I do think with the growth in various European markets, now obviously, yes, I do think there will be growth of the revenue. Now obviously, as we see quarter-to-quarter and we are sometimes depending on a launch or on a DRS move, that sometimes, yeah, changes the developments in a specific quarter.

In general, yes, we expect growth in the second half of the year versus the first half of the year.

Good. Why is gross margin down sequentially despite higher revenues?

There are some mix effects. I think the largest factor for this is the company building preparedness to deliver on the Greek opportunity.

As mentioned, originally, the Greek DRS was anticipated to launch this summer. The company built delivery capacity to be able to cater to that.

That has time-shifted, and that explains the largest share of that movement in gross margins. Then there are a couple more.

I think we've answered those in terms of inventory. More gross margins, and revenue development, I think we've addressed that as well.

Let's see. There are a couple of OPEX questions here on what's driving the OPEX increase and what to expect?

As I mentioned, €12.1 million in OPEX in Q2, up from €11.2 million. There is an additional headcount.

However, the largest part of that increase is explained really by two key elements that are not expected to continue into the second half. The first and largest being higher professional fees, that's largely explained by higher audit costs as well as a specific project for internal pricing.

The second being higher marketing costs as Envipco co-hosted the DRS summit in Romania. Looking into the second half, we expect a gradual rise in OPEX into the second half, Q3 being flattish to slightly up, with a further modest rise into the fourth quarter this year.

Good. Let's see here else what we can have.

There are some questions related to the funding and the inventory build. What if that's not turned around?

What's the runway? Of course, the company has a number of options, of course, and is continuously looking at how to optimize its funding and capital structure.

Quite specifically, in terms of the funding alternatives, the company has still availabilities of around €10 million under the ABN AMRO working capital facility. Further, the company has invested in, as we mentioned, in CapEx, in RVMs for throughput services, and is working on financing those with external partners.

Could add in another additional up towards €10 million. Naturally, converting that inventory back to sales will happen in the second half of the year.

In addition, as Greece comes along, the working capital requirements of our Greek operations are quite different and much more less working capital intensive than some of our other areas. The company has quite a bit of available resources for its use.

Yeah. Let's be very clear that our inventory can be applied to all the markets.

We don't build specifically for customers. The long-lead items, which is the majority of the inventory, go into many of our machines, but even our finished goods can be used in multiple markets.

We are confident that this is inventory that will be returned into cash again.

Let's see. Yeah.

Are there any updates on the Turkish market?

The Turkish market is also a gradual rollout. They have recently started.

We have our machines out there, and we have a local distributor there with whom we collaborate. That's a very nice and good partnership that we have there.

As we are together now looking at how the market is rolling out, we're looking at our opportunities out there.

What are your top brownfield DRS opportunities? What gives Envipco confidence in winning market share during upcoming machine replacements?

The confidence is coming from our technology. It's coming from our service offering, because we do see that in the markets, the uptime of the machines is of the highest priority.

Servicing those machines well is extremely important, and we can prove that we have that network available. That's where you see the success of the Netherlands.

We're looking into other markets, and that will come as it develops.

Good. I think we've touched upon most of these now, and in a matter of time, maybe we should round up.

Concluding remarks.

We thank you very much for your time and attention this morning. We look forward to having more questions, of course.

We're always available to answer those. Summarizing, we do believe that we are in a good position to capture further growth coming into the next quarters, and there is definitely a focus on making that profitable growth for us and for you.

Thank you.