Publication

First Half 2023 Results

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RESULTS FIRST HALFYEAR 2023

Ekopak achieves strong first half and raises its medium-term target

  • • Double-digit sales growth combined with costs well under control ensures positive EBITDA of first half continues for full-year 2023

  • • Upward revision of medium-term target: EUR 140 million in sales in 2028

Tielt (Belgium), 25 September 2023 - 8.00 am CEST

Today, Ekopak (EKOP:xbru) publishes its IFRS interim condensed consolidated financial statements for the six-month period ended June 30, 2023.

Key elements 1H2023

  • • WaaS segment (Water-as-a-Service): continued acceleration of revenue growth (+23% vs. 1H2022) with a stable, solid EBITDA margin (67%).

  • • Non-WaaS segment: robust revenue growth (+104% vs. 1H2022) and 12% EBITDA margin confirm the structural potential of this segment alongside the WaaS segment.

  • • Continued strong performance of Ekopak France. Sales in France reached EUR 2,4 million, more than quadrupling compared to 1H2022.

  • • WaaS/non-WaaS revenue growth and stable level of Corporate costs (EUR 1,4 million) result in positive Group EBITDA of EUR 1,1 million (8%) compared to EUR - 0,5 million in 1H2022.

Significant event after balance sheet date June 30, 2023

  • • Ekopak acquires industry peer Global Water & Energy (GWE) transforming Ekopak into a group that operates on a global level. (See press release dated September 14, 2023:https://ekopaksustainablewater.com/press-news/ekopak-acquires-industry-peer-global-water-energy/).

  • • Thanks to an exceptional geographical, intersectoral and technological complementarity, Ekopak closes the circle in water recycling.

  • • As a 'welcome gift', GWE brings recently scored projects at Heineken France and Danone Florida.

Outlook 2023

  • • As a result of the acquisition of GWE, a group revenue of EUR 35-38 million is forecasted in 2023 (2022 group revenue: EUR 18 million). On a pro forma, consolidated annual basis, Ekopak & GWE are expected to achieve a group revenue of EUR 55-58 million.

  • • The net cash position1 as of June 30, 2023 is EUR 12.5 million and as a result of the acquisition of GWE this evolves on a pro forma basis to a net debt position of approximately EUR 21.5 million. This relatively limited position indicates that there is no need for an additional capital round.

  • • Prospect of an EBITDA of EUR 3-5 million in 2023.

  • • The Circeaulair I joint venture has been established and in addition to the binding legal agreements with Aquafin and EPICo², there is good commercial traction for this driving force in the WaaS segment.

  • • Ekopak is confident of making a significant contribution to solving the water scarcity in the medium term, and with the integration of GWE, this contribution will become even more significant.

Medium-term prospects (2028)

  • • EUR 140 million revenues of which 25-30% WaaS and 70-75% non-WaaS due to different mix after GWE integration.

  • • EUR 35 - 42 million EBITDA at group level.

1 Cash minus short-term and long-term financial debt

Management report 1H2023 - Executive summary

In 000 €

(non audited numbers)

Revenue

WaaS-segment

non-WaaS-segment

Total

EBITDA

WaaS-segment

Non-WaaS-segment

Corporate segment

1 510

12 744

14 254

1 014

1 497

-1 408

Total

1 103

(*) EBITDA Corporate segment as a percentage of Revenue

Al % of Revenue

1 225

6 248

+ 23% + 104%

7 473

822 111 -1 402

+23% +1. 249%

67% 12% -10% *

-469

67% 2% -19% *

-6%

The CEO's perspective

Pieter Loose, CEO Ekopak, comments: "I am extremely satisfied with the achievements of the entire Ekopak team in the first six months of 2023. Personally, I put a lot of attention, time and energy into the strategic projects for the future, specifically the agreement with GWE and the launch of the Circeaular projects. The group's impressive performance, both in the WaaS and non-WaaS segments, shows that Ekopak has a motivated and talented team that fully identifies with the group's vision and ambition. This is heartening and it also builds confidence for the future, which will offer endless opportunities.

By leveraging our own strengths, we almost doubled group revenues for the first six months of 2023 compared to the same period last year. The mix between WaaS and non-WaaS may vary from period to period. What is important, is the fact that the WaaS segment continues to show double-digit growth and perpetuates its inherently attractive EBITDA margin. The incredible growth acceleration of the non-WaaS business and the steady and sustainable recovery of the associated EBITDA margin are a wonderful illustration of our expertise and competitive position.

In recent periods, we have focused on expanding the organization so that it is armed to meet the challenges of the future. This entailed certain expenses, which weighed on the group's profitability for some time. Today, we have an organization with a strong backbone, capable of supporting and guiding existing activities as well as building projects for the future. This was demonstrated in the past six months by also successfully completing the acquisition of GWE together with strict control of corporate costs. This combination enables us to achieve the target of full-year 2023 EBITDA of EUR 3-5 million.

It is very satisfying to build our business while integrating sustainability into our operations and also enabling other companies to operate more sustainably. I am confident that we can make a significant contribution to solving the issue of water scarcity while also achieving our financial goals."

WaaS segment: 23% revenue growth (1H2023/1H2022) with an EBITDA margin of 67%

Ekopak's WaaS business posted another record in the first half of 2023 with sales of EUR 1,5 million (+23% compared to 1H2022). The sales of the WaaS business in the first half even exceeded the total annual sales of two years ago (FY2021: EUR 1,2 million). The continued success of the WaaS model in the domestic market also opens up prospects for other markets.

In early July 2023, for example, Ekopak France could proudly announce that it had won its first major WaaS project in France: a sustainable water project at a TotalEnergies production site in Grandpuits.

It should also be mentioned that revenues from WaaS contracts are only recognized from the moment the plant becomes operational and thus a significant portion is not yet included in the figures for the first half of 2023. The WaaS contracts already signed

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Ekopak NV published this content on 23 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 September 2023 07:32:03 UTC.