Investment Memo 2014
Inverko Investment Memo 2014
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Table of contents
1.
Chief Executive Statement ................................................................................................................. 2
2.
Inverko Group ...................................................................................................................................... 3
3.
The Market ............................................................................................................................................ 5
3.1.
3.1.1.
Development of waste production in the Netherlands ......................................................................... 7
3.1.2.
Problem to be addressed .................................................................................................................... 7
3.1.3.
Development of (plastic) recycling in Europe by 2020 ......................................................................... 8
3.1.4.
4.
5.
6.
7.
8.
9.
Sector of Industry......................................................................................................................................... 5
Economies of Scale ........................................................................................................................... 10
3.2.
Competitive Landscape ............................................................................................................................. 11
3.3.
Circular Economy ...................................................................................................................................... 12
Inverko & Circular Economy ............................................................................................................13
4.1.
From Waste to Final Product ..................................................................................................................... 13
4.2.
Inverko, Circular Economy & Loan ............................................................................................................ 14
4.3.
Development/Timeline ............................................................................................................................... 15
The Company .....................................................................................................................................17
5.1.
Organization Chart..................................................................................................................................... 17
5.2.
History ....................................................................................................................................................... 19
5.3.
Facts .......................................................................................................................................................... 20
5.4.
Shareholders of Inverko NV ....................................................................................................................... 20
Growth Strategy .................................................................................................................................21
6.1.
Value Proposition....................................................................................................................................... 21
6.2.
Potential Markets & Growth Opportunities ................................................................................................. 21
Management .......................................................................................................................................22
7.1.
Executive Board......................................................................................................................................... 22
7.2.
Supervisory Board ..................................................................................................................................... 22
Financial Facts ...................................................................................................................................23
8.1.
Turnover & EBITDA ................................................................................................................................... 23
8.2.
Consolidated Profit & Loss Account Inverko Group 2013 .......................................................................... 23
8.3.
Trading update Q1 2014 ............................................................................................................................ 23
Conclusion .........................................................................................................................................24
Inverko Investment Memo 2014
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1.
Chief Executive Statement
In the 17 years of being operative in the plastic
Due to the set-out growth strategy Inverko is able
recycling industry we have seen the steady
to anticipate and contribute to the circular
transformation of Inverko into a sustainable
economy and will improve the environmental
growth company, underpinned by an energizing
footprint by saving energy and reducing CO2
and purpose-driven business model. 2013 was
emissions. Our distinctive character and the
an important year of progress towards our
contribution to sustainable entrepreneurship by
concept, ‘from waste to final product’. This
finding solutions for plastic waste, without losing
concept closely fits the new circular economy and
sight of the economics motives, will help us in
the Boards remain confident that Inverko’s
fulfilling our mission.
strategy will continue to generate sustainable
returns for shareholders.
Although the economic environment remains
We are convinced that the time is right to take
challenging, Inverko’s financial position and
advantage of the current market conditions. We
prospects points towards a business that is
believe that our experience in the market,
delivering long-term financial performance.
combined with the current trend of the circular
economy and rising opportunities, can result in
The listing of the company on the Amsterdam
superior returns for investors.
Stock Exchange in 2013, contributed to our
mission whereby Inverko wishes to become a full,
worthy and sustainable chain player within the
Inverko, the future of waste.
European plastics mechanical recycling industry.
With recent and future acquisitions in Europe we
are continuing to increase our presence within
emerging markets, which will contribute to our
ongoing growth. These acquisitions are meant to
further increase the value chain by both forward
and backward integration, as well as they are
meant to strengthen the existing value chain.
Today, as a result, Inverko’s organizational
structure is getting stronger, its portfolio of
products/features
is
more
competitive
and
Inverko is benefiting from a much sharper focus
Henk Alssema
on performance and delivery.
CEO
Inverko Investment Memo 2014
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2.
Inverko Group
As a specialist in recycling and waste management of
All our business activities are based on our concept
plastics we specialize in the purchase, processing and
‘from waste to final product’. This concept fits the new
sale of quality post-industrial and post-consumer
circular economy whereby waste is used for new
material. Raw materials are partially supplied to the
products, instead of the disposal (on landfills) or the
plastic industry, but also used by Inverko in the
incineration of waste. Inverko wishes to create a
production of high graded plastic products and
closed-loop recycling value chain whereby post-
materials. With a full recycling plant Inverko is capable
consumer waste is collected, recycled and used to
of
and
make new products. Inverko gains a competitive
compounding polymers to a high standard. With our
advantage by involving municipalities and large waste
knowledge and network, our state-of-the-art laboratory
collectors. With new and existing contracts (with for
and machine park, we are able to deliver high-grade
example Omrin) Inverko gains access to household
compounds and live up/hold on to our core values:
plastic waste streams. These plastic waste streams
extruding,
washing,
drying,
granulating

Made-to-Measure
are reprocessed by Inverko whereby she’s able to

Cooperation
deliver products used by municipalities.

Value Creation

Sustainability
A win-win situation.
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Over the years, plastics recycling has become more
Inverko wishes to fulfill her growth strategy by
commonplace and a popular concept worldwide for
optimizing her market position through autonomic
many reasons. Inverko is a successful, sustainable
growth and optimizing the existing organization. Apart
and worthy chain player in this market of plastics
from that growth will be achieved by strategic
recycling. To achieve an even stronger international
takeovers. These takeovers are meant to further
market position Inverko believes that she has to gain
increase the value chain by both forward and
access to the capital market, whereby the opportunity
backward integration, as well as they are meant to
arises to add additional components to her value
strengthen the existing value chain.
chain and optimizing the existing organization.
Inverko is committed to create long term shareholder
value and invest in the company to guarantee its
future profitability and financial independency.
Inverko Investment Memo 2014
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3.
The Market
3.1.
Sector of Industry
With continuous growth for more than 50 years,
global production of plastics grew from 1.7 million
tonnes in 1950 to 288 million tonnes in 2012.
Figure 1: World plastic production 1950-2012
Source: PlasticsEurope (PEMRG) / Consultic
The European production (EU + Norway and
Switzerland) accounts for 20.4% of the world’s total
production, this makes the plastic industry an
important sector of the European economy. The
trend in production for plastics will continue to grow,
due to its distinctive properties as well as
continuously growing innovation applications.
Figure 2: World plastics materials production 2012
Source: PlasticsEurope (PEMRG) / Consultic
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There are five high-volume plastics families: polyethylene (including low density (LDPE), linear low density (LLDPE)
and high density (HDPE)), polypropylene (PP), polyvinylchloride (PVC), polystyrene (solid PS and expandable EPS)
and polyethylene terephthalate (PET). Together, the Big Five account for around 75% of all plastics demand in
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Europe.
The
packaging
industry
remains the biggest plastics
end-user at 39.4%, followed
by
the
Building
Construction
sector
and
at
20.3%. The Automotive and
Electrical
&
Electronic
industries use 8.2% and
5.5%, respectively. Finally,
medical, leisure and other
applications use together
26.4%.
Figure 3: European plastics demand by segment 2012
Source: PlasticsEurope (PEMRG), Consultic, ECEBD.
In 2007 the recycling sector had a turnover of € 24 billion and employed about half a million people. It was made up of
over 60,000 companies. The profile of these were: 3% large; 28% medium; 69% small. Demand for raw materials is
increasingly affected by global forces, and international trade in recycled material continues to grow. The EU has
around 30% of world share of ecoindustries and 50% of the waste and recycling industries.
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Originally, plastics recycling grew alongside the plastics industry, with companies initially concentrating on the
reprocessing of production and the processing of scraps. But over the years, the recycling of post-consumer plastics
gradually took off, with important growth being recorded in the last decade.
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1
How to boost plastics recycling and increase resource efficiency? Strategy paper of plastic recyclers Europe, a study carried out by PlasticsEurope.
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http://ec.europa.eu. (consulted 17th of April 2014). Enterprise and Industry. Innovation Policy. Recycling.
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How to increase the mechanical recycling of post-consumer plastics. Strategy paper of the European plastics recyclers association.
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3.1.1.
Development of waste production in the Netherlands
There was an increase in the amount of waste production up until 2008. In 2010 the waste production dropped below
60 million tons (excluding contaminated soil, sludge and manure). In 2012, the monitoring method was adapted for
parts of the waste production and methods of processing.
Recovery of waste has
increased
sharply
in
2010. The reason for
this is that some of the
waste
incineration
plants have been given
the status of recovery.
Another result is that
both the incineration of
waste and the disposal
of waste on landfills is
steadily decreasing.
Figure 4: Waste production and processing methods 1985-2010
Source: CBS, PBL, Wageningen UR (2012). Afvalproductie en wijze van verwerking, 1985-2010
There is significant market potential in recycling, but barriers to market development need to be addressed. There is
also potential to significantly improve efficiency and capacity, by encouraging innovation, and introducing more
effective processes and improved technologies. This would save costs, energy, and natural resources – and help
Europe be less dependent on rising raw materials prices.
3.1.2.
Problem to be addressed
Europe is leading the market in terms of sustainable development thanks to the abundance of European legislation
aiming to protect the environment. The European Lisbon Treaty goes even further than previous treaties on the
environment. The new treaty states that the European Union should aim for the ‘improvement of the quality of the
environment’ and should not only protect it.
The Dutch government is cooperating with civil society groups on the programme Waste to Resource to stimulate the
sustainable use of natural resources.
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The Waste to Resource programme was announced in the Green Growth letter sent to the House of Representatives
on 28 March 2013 (33 043, No. 14). On 20 June 2013, Wilma J. Mansveld, State Secretary for Infrastructure and the
Environment, informed people about this programme in the letter entitled Waste to Resource (33 043, No. 15),
indicating that the challenge lies in the transition to a circular economy. A circular economy is an economic system
that is predicated on the reusability of products and raw materials and the conservation of natural resources and that
pursues the creation of value in each link in the system. Closing technological and biological cycles will improve the
environment, assure our prosperity in a sustainable way and ensure that we use our natural resources optimally.
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The recycling of post-consumer and post-industrial plastics waste is a challenging and multifaceted topic, for which
many solutions exist such as mechanical recycling.
3.1.3.
Development of (plastic) recycling in Europe by 2020
Whilst approximately one-third of the world already achieve over 80% plastics recycling and recovery many fall way
below this and in some cases do not even achieve the targets required in waste legislation.
In the existing waste legislation of the EU clear targets for the reuse and recycling of waste and the reduction of
waste on landfills are set. For example, 50% of municipal/household waste must be recycled or reused by 2020.
Significant improvements have been achieved using these objectives. Several Member States have shown what can
be done in a short period of time, at low cost and whereby many new jobs have been created. Moreover, the rise in
commodity prices is an important economic incentive for improving waste management added to the environmental
reasons.
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Letter to the Parliament. Implementation of the Waste to Resource programme. Date: 28-01-2014.
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Below figure 5 shows the 50% recycling rate of municipal solid waste and past rates achieved in 32 European
countries. We see that recycling remains a rarity in East-European countries. In Bulgaria waste isn’t separated and in
Romania, Lithuania, Croatia and Turkey almost all the waste end up at a landfill.
And even though plastic mechanical recycling increased strongly in West-Europe it still has great potential to grow.
Figure 5: 50 % recycling rate by 2020 and past rates achieved in 32 European countries
Source: European Environment Agency
The 2010 recycling rate has been deducted from the required 50% recycling rate by 2020. This figure has been
divided with 10 years and compared with the average annnual percentage increase from 2001 to 2010 and from
2006 to 2010.
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Today, 40% of post-consumer plastic waste in Europe is landfilled. By eliminating the landfilling of plastic waste by
2020 it is estimated that 80 million tonnes of plastic waste would be prevented from going to landfill, an amount
representing about 1 billion barrels of oil or €70 billion (if 1 barrel = $100 and $1 = €0.70).
Figure 6: Zero plastics to landfill scenario by 2020
Source: PlasticsEurope (PEMRG) / Consultic
3.1.4.
Economies of Scale
The market for plastic recycling itself is highly fragmented with no clear market leader. Companies that operate in this
market are relatively small and/or active in only a small part of the value chain. It is expected that in the coming years
a major consolidation phase will occur, in this phase companies will gain economies of scale and secure their
volumes, these new constructions will gradually become active in the entire value chain of waste. During this phase
Inverko wants to become an important and worthy chain player in the international market of plastic recycling. The
concept ‘from waste to final product’ will be reinforced through the growth strategy. The existing value chain will be
expanded by both forward and backward integration. This way Inverko has control over the whole value chain and as
the production increases the costs (per unit) can be regulated and kept low.
This industry, therefore, plays a significant and essential role in today’s move towards a sustainable society.
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3.2.
Competitive Landscape
Inverko is operative in the European plastics mechanical recycling industry, this is a rather new industry, consisting of
more than 1,000 companies – mainly small or medium-sized – and employing around 30,000 people. Mechanical
recycling refers to operations that aim to recover plastics waste via mechanical processes (grinding, washing,
separating, drying, re-granulating and compounding), thus producing plastics recyclates that can be converted into
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new plastics products.
Most of these companies focus on one area of activity, though some larger players are involved in several steps. With
the fact that Inverko is the first listed enterprise specialized in recycling plastic waste on the Amsterdam Stock
Exchange and with the takeovers (2014) of a German recycling company, Synaplast GmbH Niederlangen GER and a
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Dutch plastic and processing company, Beutech BV Steenwijk NL , Inverko is becoming a pioneer in this now very
popular industry. Furthermore with these takeovers the first step is taken in increasing the value chain by both forward
and backward integration, as well as it is meant to strengthen the existing value chain.
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How to boost plastics recycling and increase resource efficiency? Strategy paper of plastic recyclers Europe, a study carried out by PlasticsEurope.
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Subject to full approval
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3.3.
Circular Economy
The circular economy is an economic system that is designed to maximize the reusability of products and raw
materials and minimize value destruction. Unlike the current linear system, in which raw materials are converted into
products that are destroyed when they’re consumed. This model on which the current global economy is based is
running up against its limits. The danger of raw material shortage increases. Therefore it is good that governments
and businesses set off a second route, that will give the economy a calmer and continued character in the long term:
the route to a circular economy.
The circular model is not only a response to the increasing scarcity of
resources, but also an engine for innovation and growth, as
Recycling Facts
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companies :

develop a new technology and gain markets with it

improve their competitiveness with a smarter design

better integrate/manage their supply chain and exclude
availability and delivery risks

seize opportunities in the new transport flows within cycles

benefit from the increased market value of waste

develop new business models based on use rather than the

One tonne of recycled plastic
saves roughly 2 tonnes of
CO2e (equivalent) compared to
incineration.

If all landfilled plastics waste
are recycled or recovered into
energy, then 7% of EU quota of
carbon gas reduction will be
fulfilled.

One tonne of recycled plastic
saves 5,774 kWh of energy,
16.3 barrels (2,604 litres) of oil,
98 million Btu's of energy, and
22 cubic metres of landfill.

There is an 80 to 90%
reduction in energy
consumption by producing
recycled plastic compared to
producing plastic from virgin
materials (oil and gas).

Recycling a single plastic bottle
can conserve enough energy to
light a 60-watt bulb for up to six
hours.

Recycling 5 PET plastic bottles
produces enough fibre for one
t-shirt.

Worldwide trade of recyclable
plastics represents is valued at
$5 billion per year and is
estimated to represent a total of
12 million tonnes.
possession of goods.
In short, the circular model creates new business and a significant boost
to our economy.
Source:
Bureau
of
International
Recycling, Plastics, Recycling Facts.
http://www.bir.org/industry/plastics/.
(consulted 22nd of April 2014).
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Rabobank Cijfers & Trends. Thema-update: Circulaire economie. 38e jaargang, april 2013.
Inverko Investment Memo 2014
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4.
Inverko & Circular Economy
Inverko is able to anticipate on the new circular economy, due to her distinctive concept ‘from waste to final product’.
She doesn’t only anticipate on this new system: the route to a circular economy, but she goes further than that.
Inverko is able to give more meaning to the circular economy.
4.1.
From Waste to Final Product
All our business activities are based on our concept ‘from waste to final product’. This concept fits the new circular
economy whereby waste is used for new products, instead of the disposal (on landfills) or the incineration of waste.
Inverko creates a closed-loop recycling value chain whereby contracts with municipalities and large waste collectors
are and will be concluded for the supply of household plastic waste. These waste streams will be recycled by Inverko
Compounding into new raw materials and then processed by Beutech into new end products. Among these products
are storm drains, wells, pipes, wheelie bins and lampposts used by municipalities. This way the loop is closed and
Inverko contributes to the cradle-to-cradle principle.
Product
Manufacture
Product use
Collection
&
Raw Material
Separation
Reprocessing
Inverko Investment Memo 2014
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4.2.
Inverko, Circular Economy & Loan
With the fact that our concept ‘from waste to final product’ fits the new circular economy Inverko is able to anticipate
quickly on this new upcoming phenomenon. Inverko is determent to give more meaning to the circular economy, next
to the closed-loop recycling value-chain, whereby plastic waste finds their way into new products and contracts with
municipalities and large waste collectors are and will be concluded for the supply of household plastic waste.
Inverko will add a loan component to the closed-loop recycling value-chain. Whereby the model prompts to design
sustainable products not through force or regulations, but through economic incentives. Inverko will consider not only
what happens the moment a product is sold, but also what happens when it comes back in. From an economic
interest, products need to be more durable and more sustainable, because their expenses will be minimised when the
product lasts for its entire leasing period. The replacement of a product will be entirely on Inverko’s account.
Inverko will benefit from investing in ways to extend the various products' lifespans and be de-incentivised to launch
new products every few months. Therefore Inverko is able to outpace its competitors primarily by developing a range
of durable products that could be exploited by receiving monthly fees during their whole loan periods.
Figure 7: Circular Economy
Source: Ellen Mac Arthur Foundation, Rethink the future
Inverko Investment Memo 2014
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4.3.
Development/Timeline
1997
Foundation of the Inverko Group with the establishment of Inverko Plastics BV
2001
Acquisition of Poly-Grind BV
2002
Recylingfactory in Leek
2006
Start of own production of end products
2011
Acquisition of Plastinum Polymer Technologies BV (now Inverko Compounding BV)
2012
New compounding and washing lines at Inverko Compounding in Emmen
2013
Listed on the Amsterdam Stock Exchange
2014
Acquisition of Synaplast GmbH
2014
In the process of finalizing the acquisition of Beutech Kunststoffen & Bewerking BV
2014
Cooperation with Omrin
Growth
Growth will be achieved through autonomic growth and strategic takeovers. Each takeover contributes to the earnings
per share (EPS) and (shareholder) equity of the Inverko Group. These takeovers further increase the value chain by
both forward and backward integration, as well as they strengthen the existing value chain.
Inverko Investment Memo 2014
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Inverko Investment Memo 2014
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5.
The Company
5.1.
Organization Chart
Inverko NV
100% Inverko
Polymers BV
100% Synaplast
GmbH
50% Equipe BV
100% Beutech BV*
100% Inverko
Compounding BV
* finalizing takeover
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Commerce and Business Support
Inverko Polymers is active in the purchase and sale of raw materials for the plastic recycling industry. Inverko
Polymers also develops and sells new end products. Some examples of these end products are crates and pipes.
Regrinds as well as regranulates find their way through Inverko Polymers to various manufacturers or plastic end
products. Our thorough knowledge of the market, the materials and their applications are the pillars of our success.
Supply Chain
Inverko Compounding is the specialist in grinding, washing and compounding of household and industrial waste,
within the Inverko Group. From these waste streams high quality compounds are created that meet the customer’s
specification. Our own laboratory guarantees the best quality. In our own state of the art laboratory compounds are
developed, tested and provided with a certificate. Inverko markets these compounds under its own brand names.
Synaplast is mainly active in the following recycling operations: washing, grinding and agglomeration. Synaplast
grinds different plastic materials of various sizes. Additionally Synaplast processes highly contaminated materials
through a high-quality washing process up to directly usable materials. Synaplast is able to agglomerate light
weighted materials.
*Subject to full approval
Beutech* is a creative and innovative plastics processor, which brings a lot of its products through trading on the
market. Beutech started tailoring products for the construction industry, such as pipe bends input and meter slabs in
any desired size and shape. Meanwhile, they provide plenty of custom plastic products for the building, plant, civil
engineering and industry.
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5.2.
History
The foundation of Inverko Group was laid with the establishment of Inverko Plastics in 1997. From his home Henk
Alssema started a one man business as a wholesaler of raw materials for manufacturers of plastic end products. The
company grew steadily and moved to its first business premises on the Euroweg in Leek. One year later the one man
business was converted in a private company, named Inverko Plastics BV (Inverko).
Early years
With the acquisition of Poly-grind BV (a grinding
company) in 2001 and a partnership with a big
Belgium plastic recycling company, Inverko expanded
its
activities
with
grinding,
agglomerating,
regranulating plastics and the processing of film. Due
to the rapid growth and the opportunity to become an
Stock Exchange
important player Inverko moved to a bigger business
Due to the expected growth and new desires Inverko
premises in 2002.
Polymers BV moved to a new business premises in
Leek on the 19th of January 2013. Since the 18th of
Growth
November 2013 the company is listed on the
In 2006 Inverko started its own crates production in
Amsterdam Stock Exchange. This makes Inverko NV
Leek and in 2008 Inverko was able to produce HDPE
the first listed enterprise specialized in recycling waste
or PVC cores and started to produce its own
plastic on the Amsterdam Stock Exchange.
regranulate. The success of these activities have led
that Inverko became more active in the production of
Meanwhile more than 55 people are active in the
end products.
Inverko Group. They strive to deliver the broad range
of
An important acquisition was that of Plastinum
products and services to their customers in a
professional way on a daily basis.
Polymer Technologies BV (now Inverko Compounding
BV) in Emmen in 2011. Due to this takeover Inverko
Takeovers – Forward and Backward Integration
was able to produce its own high-grade compounds.
Inverko wishes to fulfill her growth strategy by
In 2012 the production facility, Inverko Compounding
optimizing her market position through autonomic
BV, in Emmen was optimized with the investment of
growth and optimizing the existing organization. With
new compounding and washing lines. This led to an
recent and future acquisitions in Europe, we are
increase in the total production capacity. Furthermore
continuing to increase our presence within emerging
Inverko Plastics BV in Leek continued as the head
markets, which will contribute to our ongoing growth.
office under the name of Inverko Polymers BV.
These acquisitions are meant to further increase the
value chain by both forward and backward integration,
as well as they are meant to strengthen the existing
value chain. With the takeovers (2014) of a German
recycling company, Synaplast GmbH Niederlangen
GER and a Dutch plastic and processing company,
Beutech BV Steenwijk NL, Inverko is becoming a
pioneer in this now very popular industry.
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5.3.
Facts
Foundation:
Number of employees:
Inverko Plastics in 1997 (Leek) by H. Alssema
More than 55 people
(after the acquisitions approx. 120 people)
Organization:
Head office & Commerce in Leek
Stock Exchange Codes:
Production sites in Emmen, Steenwijk
ISIN Code
NL0010614566
and Niederlangen
Ticker Symbol
INVER
Production (24/7 capacity):
Output Compounding
8.000 tonnes a year
Output Synaplast
10.000 tonnes a year
5.4.
Shareholders of Inverko NV
37,75%
Mister H.J. Alssema
49,56%
Mister R.J.M. van Veldhoven
Mister R. Asbreuk
All other shareholders
5,03%
7,66%
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6.
Growth Strategy
6.1.
Value Proposition
Inverko is committed to delivering financial value (earnings per share (EPS) and (shareholder) equity) to guarantee its
future profitability and financial independency. The positive environmental impacts associated with waste
management and increased recycling rates make up a second dimension of our value proposition.
With a closed-loop value chain Inverko is able to build and create value at every step. Focusing on all the valuecreating activities gives Inverko several advantages. For example, the ability to charge higher prices, lower cost of
manufacture, better brand image and faster response to threats or opportunities.
Through the growth strategy three opportunities arise.

Inverko is able to anticipate and contribute to the new circular economy, which creates new business and a
significant boost to our economy.

Inverko gains a competitive advantage by involving municipalities and large waste collectors, whereby the
value chain increases by both forward and backward integration.

6.2.
Inverko will improve the environmental footprint by saving energy and reducing CO2 emissions.
Potential Markets & Growth Opportunities
Inverko is a successful, sustainable and worthy chain player in the market of plastics recycling. To achieve an even
stronger international market position Inverko has to gain access to the capital market, whereby the opportunity arises
to add additional components to her value chain and optimizing the existing organization.

The European plastics mechanical recycling industry is a rather new industry, highly fragmented with no
clear market leader. Companies that operate in this market are relatively small and/or active in only a small
part of the value chain. This makes Europe a very attractive market to operate in.
o
For example in Bulgaria waste isn’t separated and in Romania, Lithuania, Croatia and Turkey
almost all the waste end up at a landfill.
o
Even though plastic mechanical recycling increased strongly in West-Europe it still has great
potential to grow, whereby our concept would perfectly fit this emerging market.

Furthermore with the formulated growth strategy and our concept, ‘from waste to final product’, opportunities
arise whereby Inverko can contribute to the circular economy within the Netherlands and possibly
neighboring countries (GER, LUX, BEL).
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7.
Management
The Executive Board is responsible for the operational management of Inverko N.V. Together with the Supervisory
Board and the Advisory Board, it develops the company's business strategy and defines its earnings mix and balance
sheet structure.
7.1.
Executive Board
The Inverko Group is managed by the Executive Board who reports directly to the Supervisory Board. The Executive
Board manages the company by setting direction and goals. It is the primary decision-making body within Inverko. It
is responsible for resource allocation and end responsible for policy in areas like brands, markets, finance,
acquisitions and divestments.
Henk Alssema (President and CEO) is responsible for the
execution of the concept ‘from waste to final product’. Researching
strategic takeover possibilities and collaborations to increase the
value chain by both forward and backward integration. Resulting in
a contribution to the profit and (shareholder) equity of the
company.
Appointment of the Executive Board members is made by the General Meeting of Shareholders following a nonbinding nomination drawn up by the Supervisory Board.
7.2.
Supervisory Board
Inverko N.V. is managed by the Executive Board who reports directly to the Supervisory Board. The Executive Board
is advised by the Supervisory Board on an ongoing basis in accordance with law and the Articles of Association of
Inverko N.V.
The current Supervisory Board members are:

Daan Zethoven – Chairman

Theo Lodewijkx
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8.
Financial Facts
8.1.
Turnover & EBITDA
Inverko Polymers recorded a turnover of €10 million and an EBITDA of €649.199,- in 2012. In 2013 Inverko Polymers
was running better than expected. Inverko Polymers expected an EBITDA of €710,000,- but recorded an actual
EBITDA of €792,000,- and a turnover of more than €14 million.
8.2.
Consolidated Profit & Loss Account Inverko Group 2013
8.3.
Trading update Q1 2014
Inverko’s first quarter 2014 pro-forma consolidated financial statements have been reported by the Executive Board
th
on the 7 of April. For the period, Inverko NV registered a successful result and recorded an EBITDA of €302,000,8
with an operating turnover of €7.4 million. All subsidiaries have given an positive contribution to this result.
8
Pro-forma consolidated financial statements are based on completed acquisitions as of the 1st of January 2014.
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9.
Conclusion
Inverko has a well-funded and formulated concept, ‘from waste to final product’, with great market opportunities due to
the fact that there is no clear market leader, the market is fragmented and emerging. Inverko needs to move quickly in
this rather new industry and use its market knowledge and the rising opportunities in the new circular economy to gain
market share and differentiate itself.
Whereby growth will be achieved through autonomic growth and strategic takeovers. Each takeover contributes to:

the earnings per share (EPS)

the (shareholder) equity of the Inverko Group

the value chain by both forward and backward integration

strengthen the existing organization.
Investing and believing in our concept and growth strategy will give Inverko the opportunity to contribute and respond
to the awareness of the society regarding the hot topic plastic recycling. Furthermore, Inverko is able to anticipate to
this new emerging market and the circular economy. Whereby we all invest in our future.
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Contact
Inverko NV
Stevinstraat 8
9351 VK Leek
The Netherlands
P.O. Box 104
9350 AC Leek
The Netherlands
T +31 (0)594 58 00 75
info@inverko.nl
www.inverko.nl
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