Woerden, February 2, 2023

Situation
From this year onwards we will inform you at the level of the holding company PerfoTec, Perfo Knowledgy BV, because a second issue is currently underway at NPEX through the holding company. The obligations of the first bond loan have been taken over by the holding company. In addition to PerfoTec BV, our holding company also includes PerfoTec Inc. in the USA, and the new operating company PerfoTec Films BV.

Financial figures 2022
In PerfoTec Inc. This year's revenue has tripled compared to 2021, from $330K to $1 million. At PerfoTec BV we saw a slowdown in realized turnover in the first half of the year. In the second half of the year there was a small catch-up in realized turnover, but on an annual basis the turnover level of 2 is approximately the same as that of 2022. The reasons have already been explained earlier: due to, among other things, the uncertainty surrounding the war and its consequences for energy costs, major customer projects postponed to 2021.

Because we have strong control over our fixed costs, we expect the operating result at PerfoTec BV to be around break-even level. A small start-up loss was recorded at the new film subsidiary PerfoTec Films in the first financial year of 2022.

Although the total turnover has lagged behind, the final result before taxes for Perfo Knowledgy BV will be higher than communicated in the message of December 22, 2022. EBITDA will be approximately €525K. We had conservatively estimated this at €149K in December. The difference is caused by the release of a number of balance sheet items, and because a number of usual items have been activated and stock corrections have been favorable. The audit is now underway.

Internal adjustments and marketing
To realize growth, PerfoTec's management team will have regular consultations with the Advisory Board from December onwards. The organizational structure has been adjusted and we have already implemented a number of changes so that we can approach new and existing customers with more focus and structure. For example, we have found that we need to pay more attention to our existing customers. We want to strengthen the relationship with them to guarantee quality and technology. We therefore have a vacancy for a Customer Success Consultant with a recruiter.

On February 7, we will be present at the Career Day of Wageningen University to actively scout for a second Product Manager Fresh Produce.

As soon as a work permit is issued in the US, we at PerfoTec Inc. actually hiring our first colleague. She will supervise on-site demo processes for existing and new customers.

This will boost PerfoTec Inc.'s sales growth. will be strengthened, because we can then respond more quickly locally. This is an important condition for the - mainly large - customers in the US to invest in more PerfoTec systems.

We have also redistributed some tasks within management and established concrete KPIs that will help us further professionalize our organization.

The redesign of our website combined with online marketing campaigns and posting weekly content has led to a 60% growth in the number of followers on our LinkedIn page. At the same time, we are also seeing a sharp increase in the number of quote requests via the website.

By structuring our attention and processes, we expect exponential turnover growth to take place from 2023.

Product and market development, outlook 2023
The development of the recyclable transparent film is going well. The pending patent application for this revolutionary film will be granted based on a positive search report from the European Patent Office. The fine-tuning of this film has now reached the level that it is suitable for containers, trays and bag packaging. For some types of vegetables, this recyclable film will be commercially applicable in 2023, with the major advantages: the film can become more than 30% thinner than existing plastic, and the shelf life of the products can be at least doubled.

PerfoTec has the ambition to make this new film suitable for all types of fruit and vegetables and all packaging solutions. The initial focus for the market introduction of these films will be on food service packaging, such as sliced ​​iceberg lettuce for McDonalds and Burger King. This is where we expect the greatest chance of a rapid rollout, because the reduction in plastic will be more than 50% compared to current films, and will therefore also result in direct cost savings for our customers.

At the same time, ongoing contacts with Walmart and Sam's Club in the US are now in a new phase, where concrete demo projects for strawberries will be validated at store level in Q1 for shelf life and reduction of food waste. This is done in collaboration with our current PerfoTec customers in California. In addition, 2 more projects with spinach and baby leaves (lettuce) are in the pipeline for the same project at Walmart in Q2. Meanwhile, other retailers in the US, including Costco, are increasingly interested in expanding the number of fruit and vegetable products with PerfoTec.

We have a large network of global partners and distributors. This is an important basis for our business model, because it provides leverage for growth. We therefore continue to give priority to strengthening and setting up partnerships in Europe and the rest of the world with major film companies that can market our patented films under license.

Collaborations with our distributors are currently being further fleshed out and realistic goals are being set, with underlying sales plans in a number of major markets. From January 2023, the order intake will run according to budget. The prospects for Q1 and Q2 are good.

Finally: for the pallet solution for whole pallets of fruit and vegetables, PerfoTec submitted a patent (PCT) application in December 2022, and this concept - due to the large volume flows of fruit and vegetables - will be developed in 2023 with 2 leading cultivation and trading companies, and may be introduced to the market as early as September 2023.

For flowers, we are working on the introduction of the sea freight solution for roses. This project is led by a new colleague, flower product manager, son of a Dutch flower grower.

We will again be present at the Fruit Logistica fair on February 8, 9 and 10, 2023 in Berlin. This is the largest fair in the world for fruit and vegetables. Our agenda is fully booked with appointments every 3 days.