Agilyx Aktie

Ladies and gentlemen, we warmly welcome you to the H1 2026 Earnings Call for the Agilyx ASA. Please note that this call is being recorded, and a replay will be available later. Your participation in the call implies your content to this. I am pleased to welcome Agilyx's CEO, Ranjeet Bhatia; and CFO, Bertrand Laroche, who will guide us through the presentation in a moment, after which we will move on to the Q&A session. And with no further ado, let's move on to the presentation.

Thank you very much, and good morning, and thank you for joining us. I'm Ranjeet Bhatia, Chief Executive of Agilyx, and I'm joined today by my colleague and Agilyx Chief Financial Officer, Bertrand Laroche. I've personally been a shareholder in this business in Agilyx and a Director since 2009, Chief Executive since 2024. I also serve as the Chair of GreenDot Global. We will have a Q&A period at the end of the presentation, as was mentioned. If you have any questions during the presentation, please do feel free to include them in the chat box, and we will try to answer your questions during the Q&A or of course, take audio questions afterwards.

Today, we'll step through an overview of Agilyx and highlights from H1 first half, provide an operational review and the current market outlook, and we'll discuss and Bertrand will lead us through our H1 financials in more detail. This presentation will also be posted on our website after this session, so you feel free to download it from there as well. Firstly, a brief summary of Agilyx. We are listed on the Oslo Stock Exchange, and we have 2 business units that operate in parallel. The first is the primary operating platform. We own a majority of GreenDot Global, one of Europe's leading integrated plastic recyclers and which is fully consolidated into Agilyx from the end of April this year. And GreenDot receives, just in brief, GreenDot receives and owns plastic waste and operates mechanical recycling facilities in multiple EU countries. This segment is really what generates our group profitability and today's cash flow.

The second segment is arcLABS, our wholly owned technology and analytics firm arm in the United States. It has 20-plus years of chemical recycling, research and development experience, 22 patents, and it markets lab services that support both our own facilities and third parties. It's really the R&D arm of our company. This slide is intended to answer a common question, which is what do we do and why does owning all of it together present an advantage in the marketplace. So we structured Agilyx to meet the needs of a really rapidly evolving market in plastic recycling and the strategic and industrial logic is to control high volumes of plastic waste through collection programs to own the mechanical and the chemical recycling and feedstock plants and thus have the capability to route plastic volumes through the most profitable channels, which is a dynamic decision, which is evolving as the market is moving quickly.

In addition, controlling plastic from source to recycled products to recycled end products enables us to develop into a one-stop shop for brands and retailers who are already our customers and are now working on pan-European recycling strategies. The left 4 columns on this slide are services provided by GreenDot. So moving from left to right, it's a contracted supplier of waste handling in Germany under its extended producer responsibility rules. It's a significant producer of recycled plastic with mechanical recycling facilities across 5 European Union countries. It's a supplier of chemical recycling feedstock.

And lastly, it's a co-developer of an AI-powered EPR compliance software platform in collaboration with osapiens, a German software business to address increasingly complex reporting requirements. Needless to say, it takes years to develop these customer relationships, the brand awareness, the market insights and of course, the operating permits and expertise. The right 2 columns are the capabilities of our technical platform, arcLABS, which I referred to, again, our U.S.-based R&D center, which qualifies feedstock and licenses technology. I'd say that some of our peers may own 1 or 2 of these capabilities, but difficult to find one with the full breadth of Agilyx. Our position across the value chain really gives us operational flexibility and strategic synergies.

Focusing for a moment on the highlights of 2026, the first half of 2026. A central highlight is our increased ownership in GreenDot Global, which Agilyx now owns 50.1% and is consolidating results as of April 20 and the expansion of that platform through multiple acquisitions that have occurred over the last 9 months of our involvement. In H1, we also implemented -- Agilyx implemented a strategic restructuring where we exited all of our U.S. project development activities and obligations and repaid our outstanding senior debt, which has been allocated for that purpose.

We're now focused primarily on Europe, where GreenDot is our key asset. And as part of our pivot, we placed EUR 26 million of convertible bonds during the period, and we extended our runway -- our operating runway to at least late 2027. For H1, we reported EUR 85 million in revenue, an EBITDA loss of EUR 1.9 million and a net profit of EUR 9.7 million. GreenDot, just for transparency, GreenDot on a stand-alone basis for the full 6 months booked EUR 229 million in revenue, EUR 8.9 million in EBITDA. So we only consolidated 2 months of those operations given the date of our -- the control transaction. But on a pro forma 6-month consolidated basis, we would report a solid EBITDA profit. So while Agilyx has been through really significant transformation over the last 2 years, in H1, we really emerged as a stronger company and on solid financial footing.

Focusing on operations. The essential business here, as I mentioned, is the EPR, which has 15% market share in Germany and over 30-year operating history. It has near universal brand recognition in the German market, and it licenses its brand and logos across Europe, including in Norway, where I'm currently a resident, where it's familiar to many as [indiscernible]. In 2026, the EPR business is processing 400,000 tons of recycling volumes, including circa 200,000 tons of waste plastic. And if we take into account recent acquisitions, the total input mechanical recycling capacity has increased to 175,000 tons.

On the chemical recycling feedstock side, we have a prep facility, preparation facility is in construction in Austria, which is on budget and on time for commissioning in Q2 of 2027. And combined, that Austrian plant, combined with our plant outside of Milan, will bring our chemical recycling feedstock production capability to close to 60,000 tonnes per annum. Importantly, again, I come back to EPR business. It's a central part of our financial structure. The GreenDot or EPR segment is paid upfront for plastic before plastic is sold. So revenue that comes in does not necessarily depend on commodity prices of plastic, and we have good visibility early each year on the full year performance.

You can see from the slide, the left side of this page that gross profit has been consistent over 5 years, and we expect this to continue with modest or moderate growth. But the stable waste volumes and the predictable and stable cash flow of EPR really helps us insulate GreenDot from the cyclicality of the recycling sector and has enabled or empowered the company to make opportunistic investments to expand its platform. So to that end, mechanical recycling throughput capacity has expanded 2.5x in less than a year by way of acquisitions in France and Spain earlier this year and the addition of an Italian acquisition completed late last year.

So integrating and consolidating these acquisitions into Green Dot's portfolio has been a real focus of the management this last year, and we're seeing immediate contributions from both the Italian and the French mechanical operations. We won't see full potential from these and from the Spanish acquisition until 2027 and onwards, where we are already seeing the benefits of the network. So what's driving this market and why particularly now is there's so much catalyst is that the EU legislation is really set to transform the industry. The EU's packaging and packaging waste regulation came into legal force on August 12 of this year, just a couple of weeks ago. Its mandates requires that recycled content targets kick in, in 2030 and that all packaging placed on the European -- in the European Union must be recyclable -- must also be recyclable by 2030.

And then critically from November 21 of this year in a few months, the EU will ban plastic waste exports to non-OECD countries. And that means that waste that used to leave Europe will primarily need to be processed inside the EU. So right together, you get really 2 effects that works to our benefits. The demand for recycled content is becoming mandatory rather than voluntary which is a structural tailwind for those of us who can supply product. And the export ban decreases input costs, which will have a positive effect on supplier operating margins. So the demand impact of that legislation is pretty significant. It really, I would say it's not an overstatement to say we expect a wave of demand as a function of the legislation.

Plastics Europe projects that the EU will require over 11 million tons of recycled plastic for packaging by 2040. To meet this demand, the 2.5 million tons currently used for packaging will need to double by 2030 and double again by 2040. Our mechanical recycling capacity will directly benefit from increased demand for high-quality recycled plastic. And we firmly believe that, that demand is going to outstrip current capacities, and therefore, it's also going to accelerate the need for chemical recycling to meet targets.

So while we have a strong and operative and profitable mechanical recycling platform, our footprint in chemical recycling also provides us an optionality on that growth by providing feedstock through Green Dot's facilities and conversion technology from arcLABS, which in combination allows us to really be a player in that sector. We have previously shared some indicative 2026 performance figures for GreenDot. So we're very pleased that the company is substantially on track to achieve these expectations. We've made a small downward adjustment in mechanical recycling EBITDA forecast due to the acquisition of Anviplas in Spain, which was not in our previous forecast and will require some investment over the balance of the year.

We expect Anviplas to breakeven by year-end, though and make a positive contribution in 2027. We have high visibility on circa EUR 19 million of EBITDA at GreenDot in 2026, growing from EUR 11 million in 2025, so very substantial growth. And I made a comment that as an Agilyx shareholder recently observed to me that she was absolutely correct in saying it that anyone who wants to win in 2030 needs to be a player in 2028. At GreenDot, we're moving very quickly to consolidate an integrated fast-growing and profitable platform, and we're confident that we're tracking to a 2028 target of EUR 50 million in EBITDA.

And lastly, before we turn over to the financial section, I do also want to mention or comment that on our projects around digitalization, which are very important to the future of the industry. As regulation expands across the European Union, companies are under increasing pressure to navigate compliance and complexity. In H1, GreenDot entered into an exclusive relationship with osapiens, a German AI software unicorn backed by BlackRock and other prominent investors to develop and market a recycling compliance solution for the EPR market.

The first modules are expected -- are currently under development. We expect them to start coming to market at the end of '26. And combined with GreenDot's other activities to digitize packaging information, we're very excited about the potential software-like margins and meaningful growth that this segment can deliver over the coming years.

With that, I'd like to pass the microphone to Bertrand, who will review our financial performance in more detail. Bertrand?

Thank you, Ranjeet. Good afternoon. Let me take you through the first half of 2026. GreenDot was consolidated only from April 20, so these results do not reflect the full 6 months. And with no GreenDot in the 2025 comparative, no line is like-for-like. Consolidated EBITDA was negative EUR 1.9 million, positive EUR 2.7 million from GreenDot since April -- since late April against negative EUR 4.6 million from Agilyx, which includes EUR 1.4 million of one-off costs, mainly on the fundraising cost for the convertible issuance.

We expect Agilyx platform costs to run at around EUR 1.5 million per quarter going forward. Net profit for the period was EUR 9.7 million, which includes EUR 30.2 million of one-off gain I will come to on Slide 17. Cash was EUR 54.5 million at the end of June against EUR 4.8 million at the year-end. The increase is principally coming from cash coming on the balance sheet with GreenDot and Agilyx consolidation together with the convertible bond proceeds. We also show GreenDot on a 100% basis for the full 6 months. GreenDot is tracking well to its target of EUR 19 million EBITDA for the full year with EUR 8.9 million delivered in the first half.

Anviplas, the Spanish acquisition that closed at the end of June is slightly dilutive on EBITDA for this year, while we integrate the business we acquired out of insolvency. We expect to reach EBITDA breakeven on that asset by the year-end and a positive contribution from 2027.

Let's look at GreenDot performance under each segment. EPR revenues were EUR 189 million with volumes and margins stable year-on-year despite lower paper recyclate prices. Mechanical recycling is where the growth is. Revenue are up from EUR 17 million to EUR 40 million and EBITDA from EUR 0.9 million loss to a EUR 1.9 million gain, driven by the acquisitions over the last 9 months of 3 groups. RG Group in France is performing strongly. [indiscernible] is slightly behind plan as a bottle-to-bottle business ramps up more slowly than projected. And in Germany, a fire at our German plant at Ill slightly disrupted operation in June with the site coming back online from August.

For context, mechanical recycling generated EUR 31 million of revenues in the whole of 2025 and already EUR 40 million in this half alone. Chemical recycling went from $1.9 million to a EUR 3.2 million EBITDA loss, mainly due to the fire at our Italian sorting facility, which was down around 7 months for repairs and reppermitting. It restarted in May and is ramping back up.

Let's review the bridge from the operating results to the reported profit, an operating loss of EUR 5.3 million against, which is EUR 30.2 million of gains. First, EUR 11.4 million from the remeasurement of our previously held 46% interest in GreenDot to fair value. EUR 12 million on the [indiscernible] reorganization, where we took the remaining net assets for no consideration and EUR 6.8 million on EBITDA, both through a court supervised sale for a nominal sum well below the fair value of these assets. So none of these 3 recurs.

Below that, EUR 15.2 million of net financial items, principally the cost of redeeming the senior bond in March, which gives EUR 9.7 million of profit, of which EUR 3.6 million goes to the noncontrolling interest in GreenDot and EUR 6 million to Agilyx shareholders. The balance sheet has changed significantly since December 2025, essentially due to the GreenDot consolidation. Total assets are now EUR 468 million, and we now carry GreenDot in full, replacing the EUR 41 million equity accounting investment, with EUR 136.9 million of goodwill and EUR 113.7 million of customer relationships and trade names.

Equity includes EUR 64.7 million of noncontrolling interest. The balance sheet shows a net current liability position of around 58 million that is structural to the EPA cycle rather than a liquidity constraint. Licensing fees are billed annually upfront and the associated recycling costs are provided for and settled through the year. Against this, we hold EUR 54.5 million of cash and an undrawn EUR 25 million revolver facility. On the capital structure, the senior bond was fully redeemed in March, removing its covenant and releasing EUR 34 million of restricted cash from escrow.

In its place, we issued EUR 26 million of convertible, of which only EUR 9.7 million was cash as the February tap was in exchange for senior bonds. No cash interest is payable on that loan, and it does not mature until June 2028. Interest-bearing debt has increased to EUR 142.6 million, mainly from the consolidation of GreenDot. At Agilyx level, net debt has declined by around EUR 20 million this year following the redemption of the senior bond and the issue of the new convertible. After netting the consolidated EUR 54.5 million of cash, the group net interest-bearing debt is EUR 88.1 million.

Refinancing of the GreenDot facilities is targeted for early 2027. GreenDot has an undrawn EUR 25 million revolving facility and took in EUR 9.3 million of new equity from both shareholders in June. Neither Agilyx nor Green Dot has a near-term funding requirement and Agilyx is funding through at least late 2027. That concludes the financial review.

Thank you, Bertrand. And just to wrap up and to conclude, GreenDot's EPR really anchors the platform. It provides consistent cash flow and margins while controlling high volumes of plastic waste. EU regulation is catalyzing a wave of regulatory-driven demand. We are seeing increasing momentum and engagement as brands work to meet pending PPWR requirements. We're moving up the value chain by increasing product quality through investments in higher-quality capacity in our mechanical recycling business to drive EBITDA growth.

Agilyx's conversion technology and technical expertise gives us real optionality to close the loop as that market develops, building on our successful deployment in Japan, where we have credible and proven technology already deployed. And we are well funded, as Bertrand mentioned, we are well funded to meet our objectives with excellent debt refinancing opportunities at GreenDot. I would add finally that the macroeconomic and industry and at times, company-specific headwinds over the last years has been a clear challenge.

We've worked through them. We've navigated those waters and we've pivoted our strategy to meet the opportunity. And we really emerge today as a transformed company, well positioned to compete and to consolidate our position as an innovator and a market leader in the European recycling sector. I'm very excited for the balance of the year and be able to report our progress next time we are able to speak about it. So I want to thank you for your time today, and we will be happy to take any questions.

[Operator Instructions] And there is already one hand from [indiscernible]

Two questions, actually kind of one for each of you. In the deck, you've got the phrase fully funded until at least late 2027. The GreenDot refinancing is early '27. So I'm wondering why that date? And my wonder is it's less connected with the finance more with the strong tailwinds you're seeing from the regulatory change. Are you thinking that in late 2027, you're going to want to be looking at maybe significant new investment to meet the demand that's out there? And related to that, what sort of utilization levels are you at? How much spare capacity do you have in just what you have at the moment? And then I'll go with the second question for a little bit more technical.

Just on the EPR working capital. I think I'm right in saying looking at the notes, it's the waste licensing accruals figure, EUR 88 million. I'm wondering, is there any seasonality in that? And just looking forward, would we expect that kind of level to kind of be maintained, maybe growing with the EPR business, but not for the rest of the business?

Bertrand, do you want to take that? The last part there?

That's correct. There is some seasonality to it. The working capital at the licensing business is all year negative, but there is like some swings. It tends to start on the higher side, like the building up in the early side of the year. So receivables tend to be at the highest early in the year, then go down. So there is a bit of a seasonal swing over the years, but the net working capital is actually roughly stable and always negative.

And Adam asked your question about runway and cash end of 2027. That's our current -- and there's another question I see from George Powell about cash burn. So Agilyx is about EUR 500,000 a month, so 1.5 a quarter. So at our current balance of roughly EUR 10 million, that's sort of end of 2027, assuming no changes. While in fact, those -- that burn will come down as our arcLABS business builds, we have a series of commercial opportunities that we're pursuing that we expect will potentially mitigate that.

But that's why we're using those numbers just to be conservative and provide transparency on our runway to Agilyx. The financing at GreenDot is not really a function of that, although it could impact that because the refinancing of the bank lines at GreenDot would, therefore, allow dividends to be paid up to shareholders, and that's one way that Agilyx would therefore mitigate some of its cash needs. But the decision around growth is really -- is what's driving the timing of the GreenDot financing in the sense that there's -- if there's additional infrastructure that we would like to fund or opportunity like to pursue, that's probably the best way to do that because there's some headroom to increase those lines to allow for that type of investment.

[indiscernible], did we answer your question there? I think we -- you had a question about...

There is another question in the chat -- of EUR 68.9 million in trade receivables, EUR 36.6 million is past due, including EUR 9.7 million over the 90 days. Yet the loss allowance is 0 justified by additive historical credit losses. Why is that history applied to Green Dot's German, French, Italian and Austrian EPR customers? And what does GreenDot's history look like on collection?

Sorry, the history of GreenDot doesn't show any significant losses on collection. And that's why the loss allowance is 0. We will really like all the policy to compute the loss allowance, but there is no concern for the ability to collect on those receivables.

So we can see if any further questions arise. There is -- another raise again from [indiscernible] should be still able to speak.

Great. Just a slightly more general one, partly actually Ranjeet talking about where he is at the moment. In terms of the acquisitions made, very -- it feels very country-driven and feels very mechanical recycling driven. And I wonder if we look forward, obviously, you will -- would you expect to be continuing to assess acquisition opportunities as they arise. Is there anywhere you would rule out, would you avoid non-EU Europe, such as Norway or where I am sitting in the U.K. Or are these areas sort of still on the shopping list, if that's the right way to put it?

That's a good question. Of course, there are multiple reasons to do acquisitions to find synergies with the group and geographic proximity. It could be one of them where we can share resources and waste sheds. And I would say, though, in general, one of the primary motivators for us has been the PPWR regulations coming into force in the EU. And so we're seeing a lot of opportunity around eCom modulation and targets, which tend to then aggregate us in that region.

So I would never exclude that and GreenDot is really looking at all types of opportunities, but I think the better probability is that we'd be looking at assets that are in that geography.

And since there seems to be no further questions, we come to the end of today's earnings call. In any case, if you have any further questions at a later date, please feel free to contact Investor Relations. And a big thank you to Mr. Bhatia and Mr. Laroche for your presentation and your time. I wish you all a successful day and hand over to you, Mr. Bhatia, once again for your closing remarks.

No, I just thank you, everyone, for joining, and we're looking forward to the next period of time in the company's development. And we're always -- Bertrand and I are always available, happy to meet with you or speak with any of you at any time. Please feel free to reach out, and we'll make the time to do that. Thank you very much. Thank you.

Yes. So, it's 3:00 Oslo time. Welcome to the Extraordinary General Meeting of Agilyx ASA. My name is Geir Evenshaug. I'm a partner with the law firm, and I have been asked to open the meeting and make a registration of represented shares and votes. Peter Nielsen, can you go on mute, please?

Okay. We got 85.1 million shares and votes represented, which equals approximately 67.6% of entire share capital. And as usual, the minutes with a summary of votes cast will be available as soon as possible after we conclude this meeting.

There are only 3 matters on the agenda. Matter 1 is election of Chairman, and the Board has proposed that I chair the meeting, and there are no votes against that. So, I'll just continue as the Chair. Item 2 is approval of the notice and the agend and the notice and the agenda have been posted and published as usual.

Are there any questions on the notice or the agenda? No. It doesn't seem like it, and we have no votes against it. So, that has been approved. And then the matter at hand for this meeting is Item 3 is the approval of the issuance of the convertible loan, and this has been explained in the calling notice and associated stock exchange releases from the company.

Are there any questions or comments on Item 3, approval of issuance of the convertible loan? No. Then we have 1,695 votes against, which means that there is a majority of 99.9%. And the convertible loan has been approved.

So, before we conclude this meeting, I'm just going to ask if there is anyone on this call who has any questions or comments. No, that's fine. Then this was short and sweet, and thank you all for your participation, and I wish you a continued nice day. Thank you. Okay. Goodbye.

Thank you.

Yes. So it's 3:00 Oslo time. Welcome to the Annual General Meeting of Agilyx. My name is Geir Evenshaug, I'm a partner at law firm, BAHR, and I have been asked to open the meeting and make a registration of represented shares and votes. And we have almost 44 million shares and votes represented, and that equals approximately 35% of the entire share capital.

And as usual, the minutes and a summary of votes cast in each matter will be available as soon as possible after we conclude this meeting. We have some representatives from the company present. We have Ranjeet and Bertrand and Ana from the company.

Since that we have 2 shareholders attending, of course, all votes are already cast. So the plan unless someone objects is basically just to inform everyone on this call that all proposals have received a 100% approval, except for Item 10, where also call separately for each Board member.

And 1,695 votes against each Board member. So that's 99.999% majority for each Board member. And we have the same number of votes against in Item 15, which is Board authorization to increase the share capital. So that's 1,695 votes. So again, there's a 99.999% majority.

So unless there are any objections, we won't go through every item on the agenda, but I will ask if there is any questions or comments from any of the participants on this call, either to the agenda or any other matters in the agenda or to the company.

There seems not to be any questions or comments. So let's make this short and sweet, and we can then basically close the meeting. And as I said, the minutes with votes cast will be available as soon as we can get them out.

So that actually concludes the meeting. So thank you, and have a nice day. Thank you.

Good morning, everyone, and welcome to the Extraordinary General Meeting in Agilyx ASA. My name is Geir Evenshaug, I'm a partner at law firm, BAHR, and I have been appointed to open the meeting. And the registration list shows that we have approximately 43.5 million shares and votes represented, which equates approximately 35% of the entire share capital.

As usual, the detailed summary of votes cast will be available together with the minutes from the general meeting after the meeting. We have the CEO, Ranjeet Bhatia, present, as you can see. You are, of course, welcome to ask questions.

But we are moving on to Item 1 on the agenda, which is election of a Chairman of the meeting, and a person to cosign the minutes. The proposal is that I continue to chair the meeting, and that Ranjeet is appointed to cosign the minutes. Are there any questions or comments to Item 1? There are none, and we have 100% approval. So I will then continue as the Chairman of the meeting.

We move on to Item 2 on the agenda, which is the approval of the notice and agenda. Are there any questions to the notice or the agenda ? There are none, and we have 100% approval on Item 2 as well.

So we can move on to the real matter for this general meeting. That's item 3, which is then the raise of tranche 2 to the convertible loan. And as you will have seen from the company's stock exchange announcements, the company has secured a tranche 2 under the convertible loan, and the total number of tranche 2, detailed amount of tranche 2 is EUR 15,823,011. That's the amount of tranche 2, which is then proposed issued under Item 3.

Are there any questions or comments to Item 3 on the agenda? There are none. We have 1,877 votes against, which means that there is an approval, a majority of 99.999%, and tranche 2 has been approved.

That concludes the items on the agenda. Are there any questions or comments before we close the meeting? No. Then I thank you for your participation.

And as I mentioned, the minutes with the votes cast, et cetera, will be available, as usual, when we're able to sign and post it. Thank you, and have a nice day.

Very good. Well, welcome to the Agilyx market update on the Cyclyx reorganization. I'm Ranjeet Bhatia, Chief Executive of Agilyx. Joining me as well today is Bertrand Laroche, our Chief Financial Officer. As a reminder, this meeting is being recorded. So today's call is a market update focused on the reorganization of Cyclyx and what this reset means for Agilyx balance sheet, risk profile and strategic execution going forward.

The headline is quite simple. We are eliminating near-term CapEx and funding risk, decreasing cash needs and fully redeeming our senior debt, our senior bonds, refocusing the company on profitable European growth and very importantly, very importantly, preserving the long-term upside of the U.S. offtake market with ongoing offtake contracts with ExxonMobil.

Cyclyx was created 3 years ago to solve an industry bottleneck, the lack of reliable on-spec plastic recycling feedstock at scale. The platform has made meaningful progress developing project designs, IP and sourcing capabilities, and we do remain optimistic about its potential to be a significant player in the advanced recycling industry. The original construct was that Exxon and Lyondell would fund the development and construction of the first center, C1 in Houston, and that the second center, C2 plant in Dallas would incorporate the learnings from C1 to expand capacity. Agilyx did not participate in the funding of C1, but we did raise and reserve approximately $68 million to fund 50% of the second project.

And as we've disclosed before, the first project C1 is over budget due to design changes and adjustments since FID in November 2023. And while vendor selection on C2 is close at hand, down selected to 2 vendors on a turnkey basis and the forecasted budget for C2 remain -- quotes from them remains in line with FID, Cyclyx has been holding off on the development of C2 until completion of C1. So that pause has been a hurdle for Agilyx.

On an annual basis, we fund approximately $8 million of Cyclyx operating costs, which is 50% of their annual budget. We incur a further $7 million in cash interest expense on the senior secured bonds and prolonged uncertainty has certainly been affecting market confidence, and so we're taking steps to remedy this today. In collaboration with Exxon and Lyondell, we've come to an arrangement which significantly strengthens our ability to pursue our strategic goals with what we believe is significantly less risk.

And that reorganization has 4 key elements. Firstly, C1 will be transferred to ExxonMobil and Lyondell. They will own the asset and invest to complete it. Agilyx will have no further cash exposure on C1. This settles the previously disclosed risk that we may have a material cost exposure on that project. There is no liability moving forward.

Secondly, C2 FID will be unwound and the members will be released from the CapEx commitments to the projects. So Agilyx currently holds USD 40 million in escrow related to C2 and has advanced $20 million to Cyclyx for the project. Most of those funds previously advanced will be returned after a reserve for future expenses, and that will allow Agilyx to fully redeem the senior secured bond, which we expect to do on the 31st of March. We will make a final $1.7 million quarterly interest payment on that senior bond in February. But after that, we do not expect Agilyx to incur any material cash expenses related to Cyclyx. So that make-whole $54 million bond redemption will be funded fully through the escrowed cash and the cash distributions returning from Cyclyx.

Thirdly, Agilyx will move from 50% to 100% ownership of Cyclyx, including the platform, the IP, the data design and the commercial relationships. And fourthly, and very importantly, the offtake agreement with Exxon of 50,000 tonnes per year will remain in place on substantially the same commercial terms and as today, and Exxon will have a ROFR on the next 50,000 tonnes of uncontracted volume. So the offtake contract remains substantially similar, but it will be more flexible and will be directly with Agilyx rather than with Cyclyx.

So we have the option now to sell additional volumes to third parties more easily or more to Exxon. The increased offtake flexibility gives us also the opportunity to integrate GreenDot and use GreenDot's capabilities to supply Exxon demand, and I'll come back to that in more detail later. That's a synergy which we have not been able to capture previously, and now we can pursue that.

So as I mentioned, we are maintaining the offtake opportunity with Exxon in the U.S. on substantially the same terms as already in place. And with that option, we also can add additional volumes. If we use GreenDot to supply this offtake out of Europe, the margin will be higher than previously projected because GreenDot's EPR business in Europe is covered with sourcing costs. If alternatively, we proceed to construct a facility in the U.S., which remains our alternative or an option, we will work with investment partners at the project level and leverage design and technical competence at GreenDot to improve that project and facility design, which has already been developed.

I would also add that our 100% ownership of Cyclyx adds several advantages. It allows us to be more flexible and efficient in our project finance structures for these projects in the U.S. It allows us to more quickly expand offerings to others in the industry, and it allows us the flexibility to integrate Cyclyx and Agilyx around capabilities around research and development, feedstock testing and waste characterization, all functions which have preexisted at Agilyx and which we licensed into Cyclyx. So we have that capability already in-house and can advance it further to 100% ownership.

And lastly, from a strategic perspective, we'll be able to better share expertise between Agilyx and our European investment into GreenDot. GreenDot really has very significant operating experience with mechanical recycling and sorting capabilities. Agilyx brings really deep experience in conversion technology and the chemistry of waste plastic. And to date, it's been more challenging to integrate those functions and capabilities due to differing ownership structures between the 2 entities.

So a lot remains the same. The market opportunity is intact. We see a structural supply shortage in the market for reliable on-spec plastic recycling feedstock. We have long-term supply contracts to deliver this feedstock, both with Exxon continuing in the U.S. and with a variety of U.S. EU projects, excuse me, currently under commissioning or construction. And we're very well positioned between our EU and our U.S. markets across both mechanical and advanced recycling value chains.

So that's a lot of what stayed the same. What has changed is we've materially reduced the CapEx and OpEx exposure at Cyclyx without losing the U.S. growth opportunity. We've transferred C1 to our partners and eliminated all cost exposure on that project. We've deferred C2 until C1 is complete and the financing and timing are appropriate for Agilyx to continue on a more capital-light model to deliver that feedstock. And we've moved and are moving to a Europe-first execution strategy to focus on a more profitable and growing European platform, which we're pretty excited about in terms of its potential and what has accomplished even in the last period since we became investors.

So value creation has not really materially changed. We continue to focus on near scale -- near-term scale and cash generation in Europe through GreenDot. We continue to work on our Styrenyx platform to provide a circular pathway for polystyrene recycling, and we will continue to deliver feedstock to Exxon and other parties in the U.S.

Turning to GreenDot. From a marketing perspective -- from a market perspective, PPWR, which is the packaging and packaging waste regulations launched in Europe came into force in early '25, really having a profound impact and effect on the EU market opportunity. In '27, the European Union is going to announce penalties for nonconformance, which is going to further lock in the recycled content requirements under PPWR. As early as this year, in the spring, potentially in Germany, they're going to announce regulations for advanced recycling. There are eco modulation schemes launching in France and plants are moving forward. But the immediate source of high-quality recycled plastic is mechanical recycling, and that's where GreenDot is positioned and expanding.

So the European Union market expansion is where we intend to focus our resources. We will maintain a focus on the U.S., but increasing focus in the EU. And since announcing our investment into GreenDot in 2025, we've already seen significant advances. The company acquired Forplast in December, which produces high-quality mechanical recycling granules at 3x the margin of standard mechanical recycling granules. And we're working to upgrade the quality of GreenDot's existing mechanical recycling facilities in Germany. The focus is on moving to higher-value mechanical recycling output and meeting -- while also meeting advanced recycling needs where those markets are developing and where those plants are coming online.

If we look at GreenDot's focus and outlook, we see opportunities to expand our EPR business and its control over increased volumes. We're continuing to optimize and expand our sorting operations at GreenDot. We're upgrading mechanical recycling plants towards higher-end margin, higher-end products, and we're securing long-term feedstock supply agreements with advanced recyclers across Europe.

The business generated EUR 12 million in EBITDA in 2025. It has a high visibility on EUR 20 million in 2026 based on contracts already in hand. And after closing on the GreenDot investment in 2025, as I mentioned, we did close on an acquisition of accretive high-value mechanical recycling in Italy, and we are evaluating other targets for potential acquisition.

The EPR business is the core of the platform. It currently collects 300,000 tons per year of plastic waste and generates a profit for handling that waste. It routes plastic through mechanical recycling channels for additional margin and increasingly to advanced recycling channels where margins are higher.

So in the European Union, we do expect a 20x increase in advanced recycling feedstock demand by 2030. The margins on that feedstock are compelling. and GreenDot's generating circa EUR 100 a tonne of margin on the average advanced recycling uptake contracts, it's really tremendous profit potential coming from that industry. And we will also focus on moving feedstock to European plants while now also, in addition, looking to supply other OECD countries, including the U.S., as example, Exxon with sourcing from our GreenDot assets in Europe.

Looking at 2030 for GreenDot, our ambitions are to move from 300,000 tons of collected plastic today to 750,000 to 1 million tons of plastic within our control by 2030, both through organic growth in our markets and acquisitions for -- of additional EPRs, collection agents, collection systems in -- across the continent. We do see mechanical capacity moving -- mechanical recycling feedstock capacity moving from the current 85,000 tons to 325,000 tons per annum. and advanced recycling output capacity moving from the current 25,000 tonnes to 70,000 tonnes through the addition of new feedstock supply capabilities and infrastructure at GreenDot. I would add also that with the addition of the U.S. offtake potential to Exxon, we may further accelerate output capacity as we develop that business opportunity.

And then through a combination of M&A and organic growth, this translates to GreenDot revenues growing from the -- expected to grow from the current circa EUR 400 million in revenue to over EUR 1 billion in 2030. And EBITDA, as I mentioned, was EUR 12 million in '25, likely over EUR 20 million in '26, and we project reaching EUR 100 million by 2030 as volumes increase and greater volumes is moving through both our advanced recycling and our mechanical recycling channels.

So the consolidation really allows for greater integration between Agilyx, Cyclyx and GreenDot and has some really well-defined value creation drivers. In the near term, earnings will be driven by growing volumes under our control in Europe. We expect to see margin expansion through production of higher-quality mechanical recycling feedstock. We'll continue to add high-margin advanced recycling contracts as the projects come online. We are already, as I mentioned, engaged in M&A processes in GreenDot looking at various targets. And in Agilyx, we'll focus on developing the basis for financing the Dallas, the C2 Circularity Center.

We will wait until after the Houston Center is operational and then work with project finance offtake partners and strategic partners to bring that project forward, supported by the 10-year offtake agreement we have with Exxon to pick up the volumes from that project. And we'll also be -- we also do see that with the restructure and the reorganization, we'll be better able to extract synergies within the group. We're optimizing to route European volumes to the highest value markets, including potentially the U.S. Agilyx has really considerable data analytics and chemistry expertise, and that can really help determine the optimal recycling pathways for what are pretty complex European waste streams.

And lastly, as we've mentioned previously, GreenDot really has extensive sourcing capabilities that can support commercialization of our Styrenyx closed-loop solutions for polystyrene recycling, and we are already working very collaboratively with GreenDot to pursue opportunities in Europe.

So to conclude, in the near term, we will complete the integration of Cyclyx assets with Agilyx. We will fully redeem the senior secured bond on March 31. In 2026, we expect to exceed EUR 20 million of EBITDA at GreenDot and to continue to expand production of high-quality recycling feedstocks and to close on selective M&A to accelerate that platform. Over the medium term, we'll continue to develop the U.S. market opportunity and to develop partnerships to finance both finance C2 once C1 is operational. The U.S. facility will be supported by offtake to Exxon. And as both of our EU and U.S. initiatives mature, we expect to find opportunities for cross-platform optimization between those assets and those geographies.

So to sum up, we're entering 2026 with greatly reduced leverage, very low cash expense, a profitable GreenDot asset that's quickly growing and a greater flexibility to apply capabilities at both Agilyx and GreenDot to advance both elements to harness synergies across both businesses. The effort to reach here has really obviously required a lot of work and significant change, but we're very optimistic about our current position and pretty excited about what we'll accomplish in 2026.

So that concludes my prepared presentation today. We'd be happy to take questions. Agilyx CFO, Bertrand Laroche, as I mentioned, is on the call with us. And together, we'll be happy to hear any questions you have. Thank you.

Can I?

Go ahead, Erik.

Yes. So it seems to me that you are basically selling the majority of the, let's call it, the legacy business for approximately 0, but you still keep some liabilities in Texas. So maybe some more details around why you are selling the -- what used to be the majority of the business until you bought GreenDot shares lately?

Yes. I wouldn't characterize it that way. The business consists of IP and project design and offtake agreements. The first project C1 has never been -- we were not invested in C1, and we didn't have material economics on that project because we weren't participants as capital investors. So there wasn't an offtake agreement to us that was generated margin. The value has been in the second project. So -- but by offloading that first one through the strategic partners, we do remove any liability associated with having to participate and participate in the future in the cost overruns of that project, but we retain the C2 offtake agreement, which is where all of our margin or most of our margin traditionally has been.

So we continue to be able to service and monetize the offtake to Exxon with substantially similar terms and with control of the IP and the project designs and the data that sits at Cyclyx. So from our perspective, we have a more flexible model, the same asset value and the same potential to generate margin. It's not a legacy business. It's still an ongoing business with great potential for us.

Okay. And just a little bit on the liquidity. You mentioned or you said before Christmas that you were a bit short of liquidity. You did the convertible bond and got some added liquidity. You're now paying down the green bonds. You still have the convertible bond. Are you -- what's sort of the -- for how long are you funded now? Are you in a comfortable situation for '26 or for first quarter, second quarter? Can you give some more flavor to that aspect?

Sure. Yes, we feel much more comfortable. We have immediate cash visibility through the middle of '26. Our ongoing cash needs are now dramatically lower. And so pretty modest requirements for the balance of the year. We do have the convertible bond framework that's been approved. It can be placed overnight. So we have a pretty high level of comfort that we have visibility there. We always have the opportunity, which we don't want to, as we mentioned before, we don't want to do it. We have monetization capabilities at GreenDot as well. So we're not -- with the restructure of Cyclyx and the great reduction in cash expenses, we feel pretty comfortable with our ability to fund '26.

Yes, Nick?

Sorry. What's the ongoing level of OpEx associated with the Cyclyx part of the business? And do you retain any staff or cost base in the U.S. or that's kind of all gone?

We won't -- by the time that we close at the -- towards the end of March, we will have reduced all the costs and expenses at Cyclyx, and we will incorporate the IP data and capabilities into Agilyx where we already have people who, in some ways, originated that IP and now we're going to take it over moving forward. So we don't anticipate any material cost expenses at Cyclyx moving forward.

Okay. And the offtake agreement with Exxon for the 15,000 tonnes per annum, when does that start?

Bertrand, do you have the start date on that?

It would start in 2027.

Okay. And that's the supply into C1?

C2. The offtake is for C2.

So is C2 definitely being built?

So yes, so it's -- for clarity, we referred to it as C2. It's a new offtake agreement with the equivalent terms of what we had in C2 in terms of the margin with additional flexibility that we can supply it out of Europe, we can supply it out of different systems in the U.S. And it's sort of up to us how we want to do it. So the question then becomes, will we build a facility like we already -- will we build exactly a C2? We could. We could -- but we would finance it at the project level rather than with the senior secured bonds, the way it was currently structured at Agilyx.

I'd see us doing it 2 ways. Either we build a facility and future facilities in the U.S. financed at the project level or we will supply out of assets coming out of Europe or there could be a combination, meaning we would source waste out of Europe and do final prep and finishing in the U.S. with a much lighter touch in terms of CapEx. But that offtake is a 10-year offtake agreement with Exxon, 50,000 tonnes committed and then another 50,000 tonnes ROFR for them on additional uncontracted volume. So that's a financeable project. We just have to decide whether we want to do it there or we want to do it differently.

Okay. So you supply Exxon wherever they put it, that's their business and you either build something in the U.S. to supply it or you ship from Europe?

That's correct.

And if you ship from Europe, what's the sort of margin on that?

The U.S. -- actually, U.S. margins or EU margins are -- would actually be better for us because our EPR business out of GreenDot funds the sourcing cost, while in the U.S., you have to rebuild all those sourcing channels. So even though the pricing on the offtake is a similar pricing to what we were getting out of the C2 offtake with Exxon, the delivery cost, if we source it out of Europe will be lower.

Okay. But you don't say roughly what that margin is?

Well, we -- Bertrand, we -- so we have discussed what the EU margins have been for GreenDot, which is about EUR 100, EUR 150 per tonne. I think we have -- Bertrand, can you provide some insight on the U.S. per tonne margins that we've disclosed?

Sure. So I think it's helpful to start by framing what the economics were expected to look like under the prior structure and then see how it translates under the new agreement. So under the original CCC 2 construct, once operating at steady state and delivering 100,000 tonnes per year of advanced recycling output to ExxonMobil and LyondellBasell, we expected approximately EUR 15 million of annual cash flow to Agilyx, and that was a combination of like investment income, royalties and Agilyx share of the profits retained at Cyclyx level.

Under the new arrangement, where the structure is different, not cost plus anymore, we believe we can generate a similar margin on a per tonne basis. We're starting with 50,000 offtake with room to expand both with ExxonMobil and with additional offtakers. The exact margin will depend a bit on how we service that agreement. We -- the agreement provides Agilyx with flexibility on how that offtake is serviced.

As Ranjeet mentioned earlier, if we use GreenDot to supply the offtake, the margin could be higher because the GreenDot TPR business covers some of the sourcing cost. And if we construct the facility in the U.S., we would do so with a project level investment partner and leveraging the GreenDot expertise, particularly from the plant in Australia.

So, just to give you a specific number that you would see from our offtake agreements that we've announced before that we have roughly $13 million of margin coming out of C2 at 100,000 tonnes. So from that, those numbers, you can sort of back out margin per tonne, and we're having -- we're seeing similar numbers with the revised offtake.

Okay. And the long-term lease you have still in Dallas-Fort Worth, that was land intended for C2, was it?

That was intended for C2 and is nonrecourse to Agilyx. So we have optionality there, whether that's the legal entities in Texas. So -- our intention is to sublet it, but we don't see a long-term liability to Agilyx given the lease structure.

Okay. And I don't know if you can, I guess, help us understand you say you retain the IP from Cyclyx. My understanding was Exxon LyondellBasell was sort of relying on or benefiting from your IP in the operation of C1 and any other facilities that were built. But now they're going to operate them without you, if I understand correctly, like where is the IP then if they don't seem to need you?

The IP is sitting at Cyclyx, but it's licensed.

What is the IP if the people who were benefiting from it don't seem to need it?

Well, the designs have been built, right? The designs -- the project designs have been incorporating the capabilities and the feedstock specs and the architecture. So that's being made available on a license that's being -- that's moving with C1. So they'll have that access to that capability in operating C1.

Okay. Could they build another one or they can't build another one without licensing it from you?

They theoretically could, but it's very unlikely that they would do that. That's what they -- that's the business. They don't necessarily want to be in the waste management business. So our expectation would be that they'd be working with us for future offtake.

Any other questions?

We have some questions coming in through the chat. If you're able to access that, Ranjeet.

Yes. Let me check.

So the first question was where do we -- provide some guidance on where we expect the liquidity position to be post secured bond redemption.

So I think I've answered that. We feel pretty comfortable with our liquidity through the middle of the year. And from that point forward, relatively low cash needs that we have several mechanisms to fund.

Similar question, I guess, Jonas, about cash funding gaps and cash needs. How much CapEx is needed to reach the euro EBITDA? Bertrand, maybe want to pick that up your EUR 100 million EBITDA target for 2030, CapEx estimates?

Sure. So the -- what we previously disclosed is that we think those assets on a stand-alone basis without any M&A acquisition can generate EUR 50 million of EBITDA by 2030 without any additional capital need. To get to EUR 100 million EBITDA by 2030, there is an additional external growth strategy. So that would require between EUR 100 million and EUR 150 million of additional capital funded through a combination of cash and debt to add that extra EUR 50 million of EBITDA by 2030. It's important to remember this is not upfront CapEx. So capital would be deployed progressively over several years and in line with earnings accretion and balance sheet capacity.

We're already seeing like EBITDA grow next year above EUR 20 million. There will be like some cash available upon the refinancing of the existing debt of GreenDot. So we don't expect all of that capital to be funded through equity. However, we have been in discussion with some financial sponsor interested in deploying capital to execute on that M&A opportunity that we are seeing in the market right now.

So as we mentioned earlier, we see EUR 50 million of EBITDA coming out of GreenDot in its current trajectory. So the mention Bertrand has about additional CapEx investment would be to accelerate that to the EUR 100 million target. And a follow-up question was the -- Bertrand, the debt and cash position at GreenDot today.

The net debt at GreenDot is around EUR 65 million at year-end and with an EBITDA of EUR 20 million expected for 2026, that's a very reasonable leverage ratio. As we get towards the back half of 2026, there should be some opportunity to refinance the debt to provide some capital for that growth strategy.

There is a question around the dividend coming from GreenDot. So that's a possibility to distribute dividend. We see right now like a very interesting opportunity, in particular, on the mechanical recycling front in Europe with the ability to acquire some very quality assets at close to equipment value or at a discount to equipment value.

So I think like we would probably elect to use the cash available to do some value-accretive M&A acquisition rather than pay a dividend, but that's an option that Agilyx and its partner in GreenDot have.

A question from Helena, you asked what went wrong with C1 and what's the progress in fixing it. So -- and when's commissioning expected?

We -- C1, as we've talked about in the past, it was FID, first-of-a-kind project, underwent significant changes in engineering to meet ongoing and shifting requirements at ExxonMobil and Lyondell and making changes to a project midstream is always more expensive than specking it from the beginning. So that really compounded the -- both the delays and the reset as engineering changed.

So that is now final. The project designs are in final form, final budgeting and Exxon Lyondell and moving forward with it. So we -- a lot of learnings from that in terms of how -- what we can do at C2 in terms of improved processes. And most of those learnings have now been incorporated into the design. So we're down selected to 2 vendors. in the U.S. for the Dallas facility. We will delay now probably choosing one as we decide what to do with that project in terms of timing. But we have pretty good clarity from them on budget and final project engineering. And we can see that the turnkey solutions, which they're providing are being bid at roughly similar -- materially similar budgets to what we anticipated in the original FID.

We don't expect royalties out of the first project. part of the transaction with ExxonMobil and Lyondell, where we take possession of the assets of the IP and the opportunity there is that we do not charge a royalty on the first project.

Erik had a question.

Just Bertrand, to follow up on your debt to EBITDA. I might have misunderstood, but the way I understood it is you expect a EUR 20 million EBITDA in GreenDot. Is that correct?

In 2026, we project EUR 20 million of EBITDA.

Yes. But -- and the way I understand it, you only own majority stake in GreenDot like 47% or something like that?

That's correct.

And the debt of EUR 65 million, is that in GreenDot? Or is that in Agilyx?

That's a net debt at GreenDot level.

That's at GreenDot level. So there is no debt left at Agilyx level.

Once we control -- once we redeem the senior bond, there will only be the convertible bonds outstanding in terms of debt.

And how much is left of that after this transaction?

We're not touching the redeem the secured the convertible. So that's issued '24 is roughly what's outstanding today.

And what's the cash position in Agilyx after you pay down the green bond and all other costs related to the transaction. What do you expect the cash position in Agilyx to be?

As I mentioned...

[indiscernible] Agilyx.

Agilyx itself is -- we have funding visibility through the middle of '26.

So in numbers, how much is that?

Well, it depends a little bit on movements at Cyclyx and movements at Agilyx. So but that's our...

But is it single-digit million dollars? Or is it more than $10 million or...

Less than $10 million from here to the end to the middle of '26.

Okay. So you are in a good spot even without dividends from GreenDot. So you have enough to handle the convertible debt and other costs?

We feel pretty comfortable with that because we -- our ongoing operating costs moving forward are going to be very modest at Agilyx, and we have the ability to place additional convertible bonds if we want to, and we can do that overnight as those have already been approved by the shareholders. And we have opportunities at Styrenyx, which we continue to work on relative to licensing. And lastly, we have, of course, abilities to take value out of GreenDot. So we're very comfortable that we have that's within our control fully funding the plans.

And how the structure on the interest rate on the convertible, is that payment in kind? Or is it...

Payment in kind, no cash. Any other questions?

So I see there's a question about the lease at Cyclyx. So we are leaving cash at Cyclyx as part of the arrangement with ExxonMobil Lyondell to help cover lease cost. The -- moving forward, that lease is about EUR 400,000 a month. So the balances there will help cover and then we'll, of course, be subletting it. So -- but as I mentioned, it's a nonrecourse lease, so we'll have to make a decision over the next months as to whether to maintain it or not.

Bertrand has a question on maintenance CapEx at GreenDot and expected interest per year.

So typical maintenance CapEx at GreenDot is between $3 million and $5 million. And the debt is pretty attractively priced at Euribor plus 300, which generate interest around $4 million to $5 million per year.

Erik, I see there's a question from Erik about sourcing. That's correct. We will not have responsibility for sourcing for C1.

Okay. I think that there was no more questions in the chat. I don't see any other hands raised. So thank you all for taking the time today this morning, and we'd be happy to answer any other questions as they come up. We're always available and look forward to seeing you soon. Thank you.

Thank you.