Half Year 2026 Pyrum Innovations AG Earnings Call
Speaker #1: Good day, ladies and gentlemen. And a warm welcome to today's earnings call of the Purim Innovations AG. Due to the publication of the results of the financial half-year 2026.
Speaker #1: I'm delighted to welcome the CEO, Pascal Klein, and CFO, Kai Winkelmann, who will start the presentation shortly. Kindly note that by now every participant is in a listen-only mode, but after the presentation we will move on to a Q&A session in which you will have the possibility to place your questions directly to the management.
Speaker #1: And having said this, I'm handing over to you, Pascal.
Speaker #2: Thank you very much for the introduction, and a warm welcome also from my side, here from Dillingen. So I will walk you through the first part of the presentation with this mainly about what has happened over the last months and what are the achievements about technology and all that.
Speaker #2: This time we won't spend so much time on things that everybody should know, on what do we do, how does the process work, and things like that.
Speaker #2: This time we would like to focus much more on real data from the plant and what happened outside so that hopefully everybody here in the call understands properly where we are and what we have achieved and how it's going forward.
Speaker #2: So let's start first with our new branding. I heard that many people ask questions about that. Long story short, that was a project that has started already a year ago.
Speaker #2: We did that really aside of our daily work to not jeopardize our daily work, so it took quite long. But the idea behind was quite easy.
Speaker #2: There were two main ideas behind. First, we found out mainly from a political side and a lot with our discussions we had with Brussels, for example, that recycling is not the core topic of the European politics or even on the German side.
Speaker #2: The core political view today is to be to create resources. The independence of resources is one of the key topics among Europe today. And yeah, military.
Speaker #2: So we are not in a military. We won't be. But we are a supplier and a creator of critical raw materials. And that's something that we wanted to show with our new brand branding, Purim.
Speaker #2: We think resources. In fact, what we do, and that's our main task over the last two years, is that we really develop new raw materials that are among the most critical raw materials that exist, which is carbon, gas, and oil.
Speaker #2: And that should be visible directly in our logo and believe it or not, on a political side it has already an impact, because we are seeing completely differently from the decision makers in Brussels.
Speaker #2: We are not just a recycler, that recycle tires. No, we are a supplier of critical raw material, which is among the heart of the most important topics today.
Speaker #2: And yeah, the recognition of the word Purim. Everybody who knows Purim recognized the logo, but people who have never heard about us and we are having more and more shows on TV where, for example, also our brand ambassador, Felix Margaret, is present in TV shows having the Purim logo on his collar.
Speaker #2: Nobody could recognize what it is. It is too thin. You cannot read the word Purim. So the idea behind was that easily Purim can recognize the word Purim.
Speaker #2: So I invite everybody of you to visit our new website. It is really well designed. It has two videos. One minute video showing what Purim does in just a minute, and another one of three minutes that is under the category technology.
Speaker #2: And yeah, feel free to see it. It took a year to do it, and we are proud that now it is released. But don't worry, we are not spending now millions to change the logos everywhere.
Speaker #2: We are doing that time after time slowly. Not spending so much money on that directly. So from the market, there's nothing new on that side.
Speaker #2: We still have more than enough tires worldwide with the tendency to grow. We just added that slide so that people who watch this presentation outside of this live presentation here gets again a picture on how big the market is today.
Speaker #2: Therefore, I'm going to skip that quite quickly. What I want to tell you about the market is that we see now over the last year that the market is extremely changing.
Speaker #2: Burning is going down, which was the core use of used tires for almost 20 to 30 years. It was even at 50% 5.0 four years ago.
Speaker #2: Now burning went down, as you can see it here in the presentation, from 35% even down to 17% in 2025. Granulate is still quite stable at 35%, but the tendency will go down in the future as the use of granulate on many uses like sport fields, playground, etc., will be forbidden from 2021.
Speaker #2: So that is a law that came already out in 2023. Export has risen, and that is a very bad evolution. It went from 10% up to 23%, and that is something that we shouldn't do because tires are a critical raw material.
Speaker #2: Once it has been treated properly by us. So we are handing out here important raw materials to others, which we could keep here. And the unknown part, that is what I think is the most critical one, that one was almost between 5% and 10%, and now it's at 23%.
Speaker #2: So that shows that this changes in the market gives also a lot of space of yeah, not so legal ways what happens with tires.
Speaker #2: And for the first time now, you see here Purim with 2% of the market in 2025, which makes us extremely proud. And yeah, that is thanks to the planet Dillinger.
Speaker #2: And we see that rising the potential available market is more than 86% until 2030. So the big changes recently, there's now export ban for end of life tires to non-OECD countries since May 21st of May this year, which is very good.
Speaker #2: Specialists think that this will keep 800,000 tons more tires in the European market, and that export ban we are really working on it on the EU level to expand that as far as we can because for the moment there are too many exceptions.
Speaker #2: And exceptions shouldn't exist on an export ban. So ban of rubber granulate, that is an older story. Purim is first time visible in the annual market share in 2025, which we can be extremely proud of.
Speaker #2: And another thing we are working since two years on it is the end of life vehicle regulation. That finally came out now. And according to our lawyers and the lawyers of our partners, our Purim model and what we do, for example, with BASF, sending them our oil and making raw materials for new cars, meaning dashboards, door handles, etc., under the definition of secondary raw materials, we are definitely in the end of life vehicle regulation.
Speaker #2: And what is made with our oil accounts into the proratas that have to be fulfilled by the automotive industry in the next years under the end of life vehicle regulation, which is a big win for us because this makes Purim more legal obligation to use our raw materials.
Speaker #2: Before crude oil is used or before material that is imported is used. So from a legal perspective, I can only say we are really in a good situation and sometimes you could even think that laws are working towards us as good as they can.
Speaker #1: So as we have changed our design, we have also changed a little bit here the presentation of our process. You all know the process, so I'm not going to tell you again that tires are coming in at the beginning.
Speaker #1: We make steel, textile fibers that goes into the reactor. We create electricity, oil, and carbon. What I wanted to show on this slide here is where we stand in Dillingen for the moment with our big industrial plant.
Speaker #1: So the shredder is fully running. So the three stars means that it is in daily operation. It produces high quality products as it should.
Speaker #1: And the third star means has reached the plant capacity. So the shredder does what it should on a daily basis. We are but more on that later.
Speaker #1: We have slides for all of these parts. And now, and that is what is often forgotten, forgotten, sorry, for the setting, the patented technology, what Purim is accountable for, what we have developed and what we have planned and what we are building ourselves is just the green part.
Speaker #1: The shredder, the power plant, the mill and pelletizer, these are things that we purchase. Like you when you purchase a car or a fridge, you purchase something.
Speaker #1: What we build is what you see here in green. And that is really one of the things that is working the best in our plant.
Speaker #1: And I'm not ashamed saying that, and I'm proud even to say that the best working machine in our plant is ours. It is running on a daily basis.
Speaker #1: The products are really high quality and reliable. And we have reached the plant capacity already since a while. So power plant is also getting stable and stable.
Speaker #1: I would give also now three stars to the power plant. It does what it should. And yeah, even though it took some time, and the third part or the fourth part independent plant in our plant is the mill and pelletizer.
Speaker #1: You all know that this is also a part that we have purchased. That is running at two star level, I would say. It is running every day.
Speaker #1: And the products that come out are now also high quality. So we are very few out of spec productions, almost none anymore. And I would even give it a two and a half star because it has not reached the plant capacity yet for it can reach the plant capacity with plan B.
Speaker #1: But more about that on the next slides. So let's speak now about the shredding unit. I don't want to speak so long about that, just that you all know that.
Speaker #1: That is the graph you see here on the bottom. The green part is our wheel production and the dark green line is our planning.
Speaker #1: So the planning was to reach roughly 14,000 tons of treated tires until end of this year. You see that we were exactly into the plan until end of May.
Speaker #1: Then we sadly had a crash on the shaft which we had not in stock. And after that, the ramping up in volumes. So that is the volume that we have actually produced.
Speaker #1: Did flatten a little bit due to the use of the shredder and due to the crash that we had with the shaft. So then we went into our maintenance which took sadly four weeks instead of two.
Speaker #1: Why? Because the shaft was broken. We had no spare shaft. And by taking out the shaft, we found out that there was more broken behind the shaft than the shaft itself.
Speaker #1: And we had to wait for spare parts. So that was sadly the reason why we had to double the maintenance break in from two to four weeks.
Speaker #1: But since that is done, you see we are now going up again parallel with the plan. But that gap that was due to the crash now and to the prolonged maintenance of about 1,000 ton per year would be difficult to catch it up by end of 2026.
Speaker #1: We will do our best. We are speaking about additional shifts on Saturdays and things like that to catch these 1,000 ton up. But it's not something that I can promise now.
Speaker #1: But what we have done so that this will never happen again is we have now a replacement shaft. So now it won't take two weeks anymore to replace that one.
Speaker #1: We have a spare shaft in stock. That one has costed us 120,000 euros to have it in stock. But now we have it. Better have it and don't need it than need it and don't have it.
Speaker #1: That's the case now. And we were able to build up now in the last months rubber granulate stowage of 20 production days. So if you ask yourself why are there standing so many big bags outside in the plant, I would say a big part of that is rubber granulate.
Speaker #1: Because we have now asset 20 production days of reserves in case anything like that happens again. So that we can really produce whole year long nonstop with the shredder.
Speaker #1: So what happened here this year won't happen again. And already now we are mid of September and we are already now at 1.6% of the German market.
Speaker #1: So we reached the 2% like last year is easily feasible in the rest of the year. So the reactors so as I already said, they run very good.
Speaker #1: Here you see the planning for the next quarter. I just see that this has moved. The circle should be more left. And here's also a mistake.
Speaker #1: It's Q3, but I will change it afterwards. So the reactor insulation has been improved. So that is one of the big things that we have done in the summer stop.
Speaker #1: That's why you see here the ramp up or the production volume before the summer break. We started a little bit earlier. It was planned for two weeks at the end.
Speaker #1: You see that the line here was flat for four weeks. And then you see that the production goes up again parallel to the planning.
Speaker #1: The increased longer maintenance was due to the fact that we have not just done maintenance. We have strongly improved the isolation in the reactors.
Speaker #1: To improve several things. First, to be able to reduce the temperatures in the reactor. In the hope to reduce energy consumption. And to make the carbon black softer.
Speaker #1: That is now a more complicated story behind that. But I will explain more on that on the next slide. But we have now indeed project Purim internally, which is called Puro Power.
Speaker #1: And the idea behind that is to improve our reactors even over what they are doing today. And we have already the first positive indication so far.
Speaker #1: We reduced the wear in the TCU conveying so that means that the carbon became softer and that we have less maintenance now. And we have a higher oil yield.
Speaker #1: So we produce more oil. That is now showed here in the next graph. So the conclusion of the annual maintenance of our reactors is the following.
Speaker #1: So the manual shutdown was done in July, August. We have changed the isolation. We have changed some settings on the reactors. In the hope that we could reduce the temperatures in the reactors and to get stable RCB.
Speaker #1: That were the goal. More stable RCB, less energy consumption in the reactors. So you see here on the left graph, that is real graphs from outside from the plant.
Speaker #1: You see that we were at we tried lower temperatures in the reactor. The yellow, green, red lines here, these lines here, these are the temperatures in the different zones of the reactors.
Speaker #1: We tried to make them lower, but then the RCB quality became weaker. You see here on the green line underneath, you see the spikes that went down into the wet and these wet spikes means out of spec RCB.
Speaker #1: And yellow is it could be okay, but it's not safe. So we need to be in the green line for a stable RCB production and you see that we needed high temperatures to be perfectly in spec with the in the green area with the RCB.
Speaker #1: Now after the summer break and the change of the isolation, you see that we were able to go down with the temperatures, which has a high effect on our energy consumption.
Speaker #1: And you can see that the RCB quality is extremely stable even though we use now much less energy in the reactors. We don't have the final data yet how much we are losing less.
Speaker #1: It's just since three weeks that we are running that way. But the first indications are perfect. Better than we all expected. So the effects are right now.
Speaker #1: We increased our oil production from 25%. So before from a tire, we got 25% of oil. Now suddenly with the new setting and the new isolation, we reached 40% of oil out of a tire, which is a plus of 60%.
Speaker #1: And that is now since beginning of September. So we are now up to four oil deliveries per week. Before the summer break, we had two to three oil deliveries per week.
Speaker #1: And that is a fact. Since beginning of September, we have really four oil deliveries per week, which is a real increase. But as you all know, the oil is not the most important part in our turnover, but it has an effect.
Speaker #1: So we have as a matter of fact, 8% less gas. We have approximately two to five percent less carbon. Because all that becomes oil.
Speaker #1: So what is the effect on the business plan is that we will see now. But it should have good ones. And soon we will have results on how much energy we save now.
Speaker #1: And of course, the softer RCB is better for the conveying systems, for the mill, the use in the real is less. The maintenance cost will be lower.
Speaker #1: I can just tell you that before the summer, break, we had holds in the tubing between the reactors and the mill and pallet house every day.
Speaker #1: So every day we had to repair a tube somewhere. Since the last three weeks, there was not one single problem in the tubing. We had nothing to repair.
Speaker #1: So that also shows that our maintenance cost will drop. But by how much we can tell it yet. But this all to show you that we are still getting better and better every month.
Speaker #1: So coming now to the most important part, the mill and palletizer. So again, I want to explain we ordered this machine. We have a where we strong contract with the supplier.
Speaker #1: And this contract guarantees us a throughput or an input capacity of 1,650 kilogram thermal tire black. So our carbon black per hour. The supplier has now conducted his third improvement on the mill and palletizer.
Speaker #1: The third improvement is still ongoing. So the building is done. They are now in the wamp up phase. So we don't have the final numbers yet.
Speaker #1: And Purim, we are the customer. So the only thing we can do right now is support with manpower which is I can tell you and I think everybody can understand that is a very unpleasant situation for us.
Speaker #1: Because we are just also we are just sitting on the sideline and observing. And we are trying to help where we can. But that will be on the next slide.
Speaker #1: We also had an idea how we can improve it on our side. And that I will explain to you now. So what we know for sure today is that the mill is able to produce stable at two tons per hour.
Speaker #1: That is much more than it needs to produce. And don't calculate now that maybe in the future the plant could do more. No. The mill can do more.
Speaker #1: And that has the potential that in the next in the future plans, we can go one size smaller in the mill. And save investment potentially.
Speaker #1: We don't know that yet, but as said, it's the biggest mill and palletizer for recovered carbon black worldwide. And we bought the biggest mill that existed on the market.
Speaker #1: And as we see now, the mill is not the issue and the mill is even doing more than it needs to do. The palletizer is also running stable at up to 1,650 kilogram per hour.
Speaker #1: So the order volume. So on these two sides, we are gathering more and more data that is not the issue. The issue remains the dosing system between the mill and the palletizer.
Speaker #1: And but it has been improved. And that's why I took the time to make that table down here. To explain to you the phases that we had.
Speaker #1: So phase number one, was from January till April this year. Where a lot of changes were done on the software and the supplier made minor modifications on the dosing unit by adding vacuum tubes.
Speaker #1: That had the idea to suck out the air quicker. So that the freshly milled material sets quicker. That is the issue. Once the freshly milled material had enough time, approximately one hour to settle down in the bunker, the palletizer is running perfectly well.
Speaker #1: The problem is that we don't have this hour in between the mill and the palletizer. So the perfect solution would be, and that we know since months, would be to have two dosing systems.
Speaker #1: One that is running, one that is resting. And after two hours, we switch between the two systems. That would be the easiest way to do it.
Speaker #1: But it's also the most expensive way to do it. And it takes the longest time to get the equipment. So and it's not our choice because we are just a customer.
Speaker #1: The supplier decides what he does next. To reach the guaranteed throughput. And we can just push them to do it as quick as he can.
Speaker #1: So that modification is accomplished. And that brought us to a stable operation with 750 kilograms per hour in April, May. Then we had two months of production May and June.
Speaker #1: With two shift production from one day to Friday. With 750 kilogram per hours. That is accomplished. And that produced several hundred tons of RCB that we could also sell.
Speaker #1: But that is by far not what we planned. In July, in August, we had the first big modification by changing the transport system between the mill and palletizer.
Speaker #1: The idea was here to add less air to the transport train so that the material sets down quicker. That modification is accomplished. It took a little bit longer than expected.
Speaker #1: But all the works are done. So now since first of September, we are in two shift operation together with the supplier. To increase the capacity steadily.
Speaker #1: And we will end this on the first of October 26th. That is what we said to the supplier. Why? Because we need to produce.
Speaker #1: We need to deliver to Schwabe, Pirelli, and Continental. We cannot waste any more time doing test ones. So for the moment, the best capacity that we were able to achieve were 1,250 kilogram per hour, which is far better than before.
Speaker #1: But not yet the guaranteed volume. And now our plan is, and that's what I just told you before, that is what we have done on our side, is we are planning now to go from two shift operation to three shift operation.
Speaker #1: Because if you cannot do more per hour, you need to work for more hours. Then you get also to the same result. But with higher cost.
Speaker #1: So that would bring us 50% more production time. By switching to a three shift model. And then being under 1,600 kilogram per hour will compensate with longer production hours.
Speaker #1: And that everybody should know, the second dosing system was already ordered in May this year. Because we said to the supplier, you can do the modification over the summer.
Speaker #1: But what happens if that is not going to 1,600 kilogram per hour? We forced the supplier more or less to order on his costs a second dosing system, which he has done.
Speaker #1: In May. And that will be delivered in November, end of November this year. So therefore, we have here half star. Because it's already delivered and it would be delivered end of November, beginning of December this year.
Speaker #1: And this would then double the dosing speed that we have today. Or what we will have now on the first of October. So the solutions are the following.
Speaker #1: So we had our plan A since the beginning was produce at 1,600 kilogram per hour input. Which is 1,350 kilogram output. In two shifts.
Speaker #1: That is how the plan was permit. That is written on our permit. That would lead to a realistic production of 14 hours per day.
Speaker #1: And a realistic daily production of thermal tire black of 19 tons per day. Our new plan A, which will come hopefully next year, is we produce at the highest rate possible in a three shift model.
Speaker #1: That would give us 20 production hours per day and up to 27 tons per day. That is future. Don't count with it. But that could be our new plan A.
Speaker #1: And from a legal perspective and from a permitting perspective, we are trying to get that permit now. Our plan B, it's the most realistic one that we have right now, is one at 1,250 kilogram.
Speaker #1: Which gives approximately one ton or 1,000 kilogram of TTB per hour in a three shift model. Not in a two shift model. 20 hours per day, which gives 20 ton.
Speaker #1: And you can see that our initial plan A and the new plan B is where we close. It's the same volume. And what we have done until now was the plan C.
Speaker #1: Which is 750 kilogram per hour gives an output of 600 kilogram per hour in a two shift model. It's 12 hours production. That's what we were realistically able to do is only seven tons per day.
Speaker #1: And that was what we produced realistically in May, in June this year, was roughly six to seven. We had also days with eight to nine tons per day.
Speaker #1: But that was the maximum. So the solution what we apply now is solution one. Stop with plan C. So we stop producing at low volumes.
Speaker #1: And we stop modifications. Because as long as we constantly modify the mill and palletizer, we cannot produce. So we need to produce. So that's why we said clearly to our mill and palletizer supplier, first of October is finished.
Speaker #1: First of October, we start production with as much as possible. Solution two is plan B. And plan B, and that is we are very lucky and I want to thank at this moment our authorities here in Saarland.
Speaker #1: They were very helpful. They just gave us the permit in August to switch from two shift operation to three shift operation. For a test period of two months.
Speaker #1: So if we are nice now and if there are no complaints from the neighborhood, we hope that we can stay in 24 hours operation.
Speaker #1: Which gives us a set 50% more production time per week. Now we have to permit. And but for test period a set of two months.
Speaker #1: That is the best way to catch up now as much revenues as possible in 2026. Solution number three is our new plan A. If we reach the contractor 1,600 or 1,650 kilogram.
Speaker #1: And if we are able to keep the three shift model and if the authorities are granting us that permit forever. We could catch up a lot in 2027.
Speaker #1: So the question which will certainly come from many of you is why did PUM correct the prognosis? Even though plan A and plan B are very close.
Speaker #1: The answer is easy. The chance to be under our prognosis are much too high. And that's because by law we have to say that.
Speaker #1: The permit to operate 24/6. So 24 hours, three shift model for six days per week. Not on Sundays. It's only for two months. We aimed to get the extension for it turned forever.
Speaker #1: But that is not sure. We are trying to get it. But I cannot confirm that as of today. And the three shift model needs more staff of course.
Speaker #1: So building up the staff will take a little while. But we are confident to be able to do that until end of the month.
Speaker #1: Thanks to the closing of Ford here in Saarland. There are a lot of stuff available on the market. So we are confident to build up the three shift model until end of the month.
Speaker #1: And what another thing that is clear. A three shift model has more OPEX costs as it does the planned ones 24 hours instead of 16 hours per day.
Speaker #1: To produce the same quantity. So of course we get the volumes. We will be able to deliver the requested volumes to our customers. But the cost to produce the carbon black will be higher as long as the hourly throughput is not higher.
Speaker #1: So I hope that this helps you a lot to understand better where we are with the mill and palletizer. It took us quite a long time to get there.
Speaker #1: And I said we as PUM we cannot do more than now increased the hourly throughput. No, the number of hours that we operate. From the plan side, we have our 20 plants and pipeline.
Speaker #1: 10 projects have started. We have potentially a new one starting where we soon in Europe. But it is not signed yet. So I can tell you anything about it.
Speaker #1: So we have two joint ventures now. In six countries. So that is a graph most of you know already. And we have now the three plants also that have all the permits that are required.
Speaker #1: Which is Pale Beige, Czech Republic and Greece. From the news of the project that's where we are standing. And we have very two very good news on this slide here.
Speaker #1: So Suez retire. That is the plan in Czech Republic. The development is done. The planning is done. And for this planned the execution has started.
Speaker #1: For the first time we have sold the plant. And for me it's very important to say this right now. Since 18 years I am doing this.
Speaker #1: Since 18 years I am living my life for PUM. And finally we have sold our first plant. And not to nobody. It's one of the biggest energy producers in Czech Republic.
Speaker #1: So it's somebody who knows how to judge what they are doing. And yeah, the sales contract is signed. And the foundation work have started.
Speaker #1: So honestly speaking we are very proud of that. And that is one of our key successes in the project. So Thermolyse in Greece. We had as PUM the job to give in our final offer for the Thermolysis part until end of August 2026.
Speaker #1: Which we have done. And we know that also the shredder manufacturer, the mill and palletizer manufacturer and all the other suppliers locally for the concrete, for the foundation and all that.
Speaker #1: They had all to give in their offers until end of August 2026. We got now the feedback from the customer on our offer with a long question list.
Speaker #1: So now the negotiation on the contract has started. So the same was with Suez retire and Czech Republic. That is now a phase that will take two months approximately.
Speaker #1: And hopefully at that end we will have sold our second plant. And that would be two plants in one year. Having zero in the 18 years before.
Speaker #1: If that is not a success I don't know what it is. UniTank, our engineering contract has started with UniTank for the first plant in Emmleben.
Speaker #1: They are the planning has now officially started. With Green Factory 2 in Pale Beige. I can tell you officially the following. We have the permit.
Speaker #1: We could start there tomorrow. We have a financing gap there for that financing gap. We have asked the support of the Saarland, of our region.
Speaker #1: Saarland has confirmed their support already last year in November. Telling us that it will take not long time. It takes now a year already.
Speaker #1: We put a lot of pressure on the region now that we finally need now to close the financing gap. And that everything is waiting for them.
Speaker #1: I just got the confirmation this morning that it is very important for them that they want to do it as quick as possible. And that I can tell to the shareholders that before end of the year they are done.
Speaker #1: So let's hope for the best. It's politics. It's grants. It's so many people involved. But yeah, I can just tell you I'm confident that we have closed that finally before end of the year.
Speaker #1: And that then we can start with full power there. Because a lot of long lead items have already been ordered. And they are almost there already.
Speaker #1: So we can build quite quicker than anywhere else there. So Green Tech and that's the next big news that we have today is that they have received a grant of 24 million euros.
Speaker #1: Like the Greek project who has received last year 29.4 million. In grant now the second big PUM building project has received a big European grant of 24.5 million.
Speaker #1: It is even I think. So that shows now that PUM project have now received over 50 million of European support to be built. And Remondus we start the engineering there.
Speaker #1: On a new site because they have been issues on the site that was being chosen before. But I'm not going now on every project.
Speaker #1: These are the major project with the newest informations. Otherwise we would take much too long to present you everything. So what happened on our oil site.
Speaker #1: We also have good news. The oil has already explained before. We produce much more oil than before. The oil is mainly used by BASF.
Speaker #1: For clothing, for Vaude, for door handles in Mercedes Benz for example. And this example we had already two years ago with the door handles of Mercedes made of our oil.
Speaker #1: That is exactly what is the end of life vehicle regulation that came out this year all about. Use secondary raw materials made from waste to produce new cars with the best European quality that we know.
Speaker #1: And Mercedes was there long before time. So what is new now is that our oil is also used by BASF and another company to create synthetic rubber.
Speaker #1: And that rubber is already used by Schwalbe and by Pirelli. That is the new application for our oil. So our oil is also going into tires.
Speaker #1: Schwalbe is already using it. So it is already found in Schwalbe tires. As we speak Pirelli has announced it. And what happened on the thermo tire black on our carbon site.
Speaker #1: You know Schwalbe is taking it already for bike tires. The green marathon was the first one. But today 70% of all Schwalbe tires contain our recovered carbon black and Continental is making forklift tires out of it.
Speaker #1: What is brand new. And that was also thing that took a lot of negotiation for a long time. It's the tire to tire initiative with Pirelli.
Speaker #1: We have signed now several contracts with Pirelli. So Pirelli is delivering to us used tires from their facilities. And we are delivering recovered carbon black from PUM to Pirelli.
Speaker #1: And we are delivering oil to BASF that goes then to Synthos and then Pirelli gets synthetic rubber for their tires. So that is brand new.
Speaker #1: It took more than a year to negotiate all that. And it was all signed in the last months. So a very big success. So now we cannot only say that we work with Schwalbe and Continental.
Speaker #1: But also with Pirelli on a very close partnership. So more and more big tire players are joining our PUM. Movement. And now I hand over to Kai for the finances.
Speaker #1: Yeah. Good morning. Pascal you have to do the slides I think.
Speaker #2: Sure.
Speaker #1: So we're starting with the revenues. And our revenues have grown by 37.6%. Part of that around 1.3 million was for the recycling plant operations.
Speaker #1: So selling of steel carbon black and oil. That used to be almost a million. The year before and consulting was gone up from 200,000 to 350.
Speaker #1: So in total we had 1.7 million in revenues. But as explained that's below that what we have expected to today. Next slide. So total output.
Speaker #1: Depends always on the projects. That means that material that we purchase for projects are taken into account in the cost of material. But on the other side can be activated as on work capitalized.
Speaker #1: And as the projects let's say in Czech has just started. This is the first effect will come in Q3 and Q4. So we received a prepayment already by SUAS re tire.
Speaker #1: We will receive another one before the end of the year. Parts have already been ordered. So our goal is to secure let's say at least 80% of the prices for the whole plants for SUAS rear tire as soon as possible.
Speaker #1: That's the transaction risk is dropping down. And by ordering the reactors and the plant control system this year this will be recognized then in the total output as we have cost against that.
Speaker #1: So we come to the expenses for material. That's corresponds to the slide before. Expenses for material went down because this is really the cost of the plant in Dillingen.
Speaker #1: As most of the projects just let's say started to have the possibility to order. So this includes more or less all the materials consumables that we needed in Dillingen.
Speaker #1: Personal expenses has risen by approximately 10.6%. We have hired let's say in medium three from 39 people to 100. We went up by seven people.
Speaker #1: So that's around 8%. We have some let's say inflation of course also on the salaries. So in total 10.6% increase. So EBITDA we are showing here adjusted figures that we compare let's say Apple's with Apple's.
Speaker #1: That means that we adjusted the figures by investment grants that were in the figures in 2025. We have not received investment grants in 2026.
Speaker #1: That's came into account. So EBITDA adjusted was almost the same level than the year before. And we expect that it's now going up let's say when the mill and pelletizer output is achieved.
Speaker #1: EBIT declined by 5.8%. It is expected now 10 and minus 12 and a half percent. And 12 and a half million. So we had a big discussion yesterday with our auditor.
Speaker #1: We went through all the assumptions and all the figures. And did a final math because we were expecting that regarding let's say EBIT and total output.
Speaker #1: There is a change to meet the figures. But we decided yesterday that it seems to be just the best case. So we had a discussion with our lawyers and then we decided okay we have to announce we have to do an ad hoc even.
Speaker #1: So that we have the financial figures announcement today that's just a law and we need to stay in it. So on the next slide you see our new forecast.
Speaker #1: And we had to reduce our revenue forecast to 4.2 to 5.3 million. We took into account everything that we have achieved until yesterday. We have let's say taken into account the production planning.
Speaker #1: And everything that we did we have in the books. And came to the conclusion that 4.2 up to 5.3 million is a realistic scenario now.
Speaker #1: That also influences the total output. The total output will be better let's say than in the first half year as we now can order parts for the plant in Czech.
Speaker #1: But slightly reduction to 11 to 14 million. So hopefully in line with the expectation before. But there is a chance if let's say the production of the RCB is not running up that quick yeah that we miss it.
Speaker #1: And for the EBIT then you can calculate down that has also an effect. It's also that if we implement or when we implement the three shift model the night shift the cost will rise.
Speaker #1: So we expect now minus 10 to minus 12 and a half million for the EBIT. We cannot say yet something on 2027. If let's say all the progress that we expect and all the plans for let's say getting better results in the plant of the mill and pelletizer till end of the year is let's say in place then I would not expect that we need to change anything in the future indications.
Speaker #1: I hand back to Pascal.
Speaker #2: Yes. So I just need to turn on my camera again. So where are we? So where we stand now and that's something I want to summarize at the end before we start with questions now.
Speaker #2: So we are at Tier L9 out of 9 level. That means that we have a bankable technology now that is proven by external authorities.
Speaker #2: And this has been proven again now by getting the financing in Czech Republic. In Czech Republic the plant is financed not 100% but 70% financed.
Speaker #2: By a very conservative Czech bank with an interest rate that is by far not venture. It's a real realistic and very good interest rate.
Speaker #2: So we manufacture one of the most important raw materials for the industry. And that's why we aspirum are becoming more and more relevant for politics for the industry.
Speaker #2: Raw materials are where closest of the street of formulas are getting more and more tricky and dangerous for our industry here in Europe. And I see that really on the European focus and how many mediors are coming to peer room in the last weeks.
Speaker #2: There's a lot on the media side that will be published in the next months. So we are entering more and more in the focus view of politics.
Speaker #2: Our vectors one still on their own power. We have passed all the certificates that we need. So we each ESO VDA 6.3. We just passed this year here which is new the ISCC EU certificate which now gives us also the possibility to use our oil not only in the chemical industry but also on the fuel industry in green jet fuels, green diesels and all that stuff.
Speaker #2: It's not sold yet to that market but we're getting more and more requests. The problem is just that all our oil is already sold to BSF from the plant in Dillingen.
Speaker #2: So but we see here example. Where oil could be sold even for higher prices to the our Fraunhofer LCA audit proving that we save 965 kilogram of CO2 per metric ton.
Speaker #2: We have long term purchase agreements. So it's really not the issue to get the RCB or the TTB thermal tire black. I always forget our new brand name.
Speaker #2: To sell the carbon black. It's not a problem to sell the oil. What we just need is volume volume volume. And we do our best every day to increase the volume.
Speaker #2: On the oil side we work quite good with the existing plant to increase now the oil volumes strongly. And now we need to prove the same for the recovered carbon black.
Speaker #2: And now we have received two fundings from the European Union from the IF and the EPA 29.4 million in Greece and 24 million in Sweden.
Speaker #2: So next step financing banks meeting we are with CBHH that was published already some months ago we are having a lot of discussion with banks and investors for the large view of PUM.
Speaker #2: So to finance the 10 projects in the joint venture with Uni PUM for example. So to find partners here for the big picture and for the future plans.
Speaker #2: Final line of course the financing in Pearl that is really on the desk now of the Zaland of our region here. And yeah the recently increased press interest on PUM and new laws on the European Union and the fact that we are also taking into consideration an end of life vehicle regulation all that is pushing now hard on the local politics to move things here forward before end of the year.
Speaker #2: Yeah. So TTB volumes I explained to you how to get the RCB volumes up. First of October we stop with testing here and we go in production 24/7 and 24/6.
Speaker #2: And we do our best to keep that up as long as the authorities will let us. So expansion the construction Czech Republic has planned.
Speaker #2: It was really for me a nice experience two weeks ago to walk over the building side and Czech Republic and see how concrete was made.
Speaker #2: How tubes were put in the ground. So yeah it's we have even a live cam. So we can see how the works are going on there.
Speaker #2: So yeah it's actually running. Greece we expect to be signed in 26. So the offers are on on the table. Negotiations are done now on the Greek side for the final prices.
Speaker #2: And yeah as already explained and on the political side the awareness has extremely risen. Circular economy actors coming this year and the circular economy act is taking now tires as a priority.
Speaker #2: Which is really impressive that tires are suddenly a priority in the circular economy act. And the race shipment regulation which contains the first ban already that has started in May this year.
Speaker #2: It's also something that we continue working on. So from the political side I won't say that it won't get any better but really we are in the exactly in the trend of the time and getting more and more support.
