Tillburg, August 30, 2022 

We would like to give you an update on the latest developments within the MTD Group, and we can share the preliminary results with you until July 2022, even though we are still in the middle of a busy summer season. 

Annual figures 2021 

The 2021 annual figures of MTD Holding BV were determined on June 15, 2022 and have already been published on the NPEX website. As stated in the half-yearly report of February 28, 2022, the figures are very good. We have achieved a turnover of € 24,3 million with a net result of rounded off € 5,8 million. The positive operating result (EBITDA) for 2021 is € 7,6 million. 

As a result, negative equity has become positive again as of December 31, 2021. The poor results of 2020, caused by the COVID crisis, have been fully made up for in 2021. As of December 31, 2021, the equity is rounded off € 2,9 million. 

The Summer Olympics in Tokyo were delivered well by MTD and resulted in good turnover and results. MTD Japan KK achieved a net result of € 1,8 million euros.  

The MTD Flex Water business activity also made a major contribution to turnover in 2021. The total turnover was Flex Water in 2021 € 6,2 million (= 25,5% of total turnover). The following Flex projects in particular have been profitable in 2021: water infrastructure for a customs clearance location for animals in England, 35 XL COVID test streets, temporary housing in Groningen, and refugee camps in the USA.  

At the end of 2021 we performed the Soundstorm festival and an F1 Concert in Saudi Arabia. The turnover of these 2 projects together was € 2,4 million. 

These projects have allowed us to make optimal use of our materials in winter, which makes us less seasonal. 

Operational developments 2022 

After a two-year Corona break, a tsunami of events took place in 2022, while the events world is not up to scratch after COVID. It was not an easy task, not even for MTD. We have lost a lot of knowledge and employees during the COVID period, which means we have a shortage of employees. In addition, many costs have increased, such as transport and we have had problems with delivery times of materials. We also see that local competitors are closing down and/or taking on less work after COVID, which means we are receiving even more requests. This meant that we had many additional one-off costs because people and materials had to be flown in to deliver projects on time. We also canceled projects and were selective in which new projects we took on. It is worth mentioning that we have been able to add big names such as Zwarte Cross and Pukkelpop to our portfolio. 

In addition, several major sporting events have taken place or will take place in 2022; Commonwealth Games in Birmingham, European Championship in Munich, various F1 competitions, such as in Jeddah, Miami, Montreal, Spa and Zandvoort and the Football World Championships in Qatar. 

To achieve growth, we have made investments in materials. We have agreed an exclusive world partnership with HOMA pumps for the supply of 1000 U2 pumps in the next 18 months. All investments are financed from our own cash flow. To be ready for the future growth of 2023 and 2024, financing plans for investments are now being prepared. 

MTD foundation 

At the beginning of 2022, MTD Foundation donated 60 million liters of water (€ 50.000) to JustDiggit, a Dutch NGO. With our donation, JustDiggit will collect 60 million liters of rainwater in an arid area in Kenya. This 83 hectare area will therefore change in a few years into a green area with shrubs and trees. This allows MTD to produce 8000 tons of CO2 compensate. MTD Foundation has also donated materials, water buffer bags and pumps to the Malteser Cross International for aid to Ukraine.  

HR and new employees 

As mentioned in the February 28 update, sufficient labor can be a limiting factor. This season we worked with approximately 130 permanent employees and 70 freelancers and have calculated that we have a shortage of 50 permanent employees. We have hired a new HR director and recruiter. It is the HR department's job to prepare our organization for 6 over the next 9 to 2023 months. The expectations are that all events will be even bigger in 2023, because this year many events still had vouchers and had no money to grow . We also expect Flex Water to continue to grow significantly.   

Financial forecast 2022 

The results up to and including July 2022 have been established in draft form. It should be noted that the project results are only recorded in the profit and loss account once the project has been completed in its entirety. The turnover that has now been booked in the result is € 11,8 million euros. The turnover already invoiced for projects that have not yet been completed in full amounts to: € 8 million. It is still difficult to determine whether we will achieve a budget of € 36,5 million in turnover. Our expectations are that we will end up around €34 million, due to less order intake than expected in Qatar. 

The net result achieved up to and including July 2022 is: € 0,5 million. Since the majority of the projects still have to be booked in the result, we expect that the net result will be in 2022    € will amount to 3,5 million. 

Joint Venture MTD Arabia 

We have entered into a joint venture agreement with OMAS Co Ltd in Saudi Arabia, in which MTD owns 60% of the shares. In Saudi Arabia, the prospects for several assignments are positive. The Soundstorm festival will be held again in December 2022. Furthermore, negotiations are underway for projects for both Flex Water and Pure Events in Saudi Arabia.  

Sustainability 

In times of extreme drought, you cannot ignore the fact that we must use water sparingly. MTD certainly wants to contribute to this. Together with other parties, such as the water boards, we want to establish the “Water Bank”. The Waterbank is a cooperative with public and private law bodies that aims to bring together supply and demand of residual water, thus improving the water balance in the Netherlands. But projects to collect rainwater and store it as “water for later” are also part of the Water Bank. Several pilots have already taken place. The Water Bank is scheduled to be established in September 2022.   

Reusing wastewater is the future. This summer we conducted several tests with water purification containers to reuse wastewater. These water purification containers ensure that less drinking water is taken from the network. The first results are positive and it is expected that these installations can be used during various projects in 2023.  

Outlook 2023 

The policy that has been implemented will also be continued in 2023. The summer season will be analyzed in detail in order to be well prepared for the summer season in 2023. There are also plenty of events on the calendar for 2023. And of course we will further realize the growth of Flex water projects for the industrial business. We are fully committed to innovations in sustainability in order to safeguard the future and maintain our leading position. 

MTD Group Management 

Hans Verhoeven | Richard van Klinken