Page 1

envipco Envipco Announces 2021 Third Quarter Results Unaudited Key figures Regulated Information ( figures in EUR Million ) Q3 2021 Q3 2020 9M 2021 9M 2020 FY 2020 Revenues 9.5 9.1 26.1 22.8 30.8 Gross Profit 3.4 3.9 9.5 8.4 11.7 Gross Profit % 36 % 42 % 36 % 37 % 38 % Operating profit / ( loss ) ( 0.1 ) 1.1 2.5 ( 1.5 ) ( 1.4 ) Net Profit / ( loss ) after taxes after minority ( 0.4 ) 1.4 1.5 ( 1.6 ) ( 1.7 ) EBITDA * Earnings / ( loss ) per share in EUR Shareholders ' equity * EBITDA : Earnings before interest 0.7 2.6 5.0 2.0 3.6 ( 0.01 ) 0.03 0.03 ( 0.04 ) ( 0.04 ) 30.9 21.9 30.9 21.9 21.0 Operational highlights • Revenue growth in Q3 '21 of + 4 % versus Q3 '20 ( + 5 % currency adjusted ) , and 16 % sequentially versus Q2'21 , with a Gross Margin of 36 % , in line with Q2 '21 37 % . Operating expenses increased by 0.7m EUR versus Q3 '20 , mainly driven by investments in market development and building our organisation and footprint , to execute on growth . Resulting Q3'21 Operating Profit was ( 0.1 ) m EUR vs. 1.1m EUR in Q3 '20 . Operating cashflow Q3 YTD '21 was 3.7m EUR positive versus ( 0.7 ) m EUR negative in Q3 YTD '20 . Europe showed great success in Q3 with the award of the long - term contract to provide products and services to BCRS for the DRS in Malta . This was after a very competitive tender process and will come through as revenue in 2022. It is a proof point for Envipco's ability to compete in Europe and demonstrates the strength of our technology platforms ( Quantum , Ultra , Optima and Flex ) . We see continued strong performance in our Swedish business , which is on track for another record year of new unit sales adding to growing service revenue . The Company continues to develop this momentum , focusing on new market development in Europe , particularly UK , Portugal , Central Europe and Romania and expanding our manufacturing capabilities in Romania . • North America is experiencing exciting new business opportunities tied to positive legislation developments . Legislation modernizing the Connecticut Bottle Bill was passed , which included increased handling fees , increased deposit values and added retail requirements to install RVMs . This has led to breakthrough orders in the drug and discount retail channel . The company also recently received a 2.0M EUR purchase order with a large existing customer targeted at replacing competitor equipment . In addition , the company entered into a technology supply agreement with the Oregon Beverage Recycling Cooperative ( OBRC ) to replace aged competitor equipment and expand into small retail throughout the state . These awards will come through as revenue in Q4 2021 and H1 2022 . Envipco 2021 Third Quarter Unaudited Results | Page 1