Slide 1: EnWave Corporation Corporate Presentation
E N WAV E C O R P O R AT I O N C O R P O R AT E P R E S E N TAT I O N G L O BAL LEADE R IN VACU UM M ICRO W AV E ENW AV E. NET DEHY DR AT IO N T ECHNO L O G Y
Slide 2: Disclaimer
2 | DISCLAIMER This presentation contains forward-looking information based on management’s expectations, estimates and projections about the future, including statements about EnWave’s strategy for growth, product development, market position, expected expenditures and operational & financial resul
Slide 3: Corporate Presentation: Share Data
3 | C O R P O R AT E P R E S E N TAT I O N TSXV:ENW $1.87 $1.91 $1.10 102.4 MM (Basic) $195.7 MM FSE:E4U Share Price 52 Week High 52 Week Low Market Capitalization 120.5 MM (Fully Diluted) Symbols Shares Outstanding Management & Board Toronto Venture Stock Exchange (TSXV) Distributed Six Major Frank
Slide 4: Leadership / Management
4 | LEADERSHIP / MANAGEMENT John P.A. Budreski / M B A Brent Charleton / C F A EXECUTIVE CHAIRMAN PRESIDENT & CEO • Proven history of advancing and • Accomplished leader with expertise in accelerating businesses in addition to finance, sales, marketing and capital an engineering background markets •
Slide 5: Leadership / Board of Directors
5 | LEADERSHIP / BOARD OF DIRECTORS Marie C. Ritchie / F C A Dr. Stewart Ritchie / P H . D DIRECTOR & CHAIR OF AUDIT DIRECTOR COMMITEE • President of Canadian Poultry Consultants Ltd. since • President and CEO of Ritchford Holdings Ltd., an 1989 accounting and investment advisory services company •
Slide 6: Our Mission
6 | OUR MISSION Our mission is to partner with food and pharmaceutical processing companies to help them find solutions to their processing challenges. We aim to help them discover new and innovative applications and uncover opportunities using Radiant Energy Vacuum (REVTM) technology. REVTM technol
Slide 7: Value Proposition
7 | VAL U E P R O P O S I T I O N Highly Scalable Machinery Premium Drying Technology Lower Product Costs Innovation-Driven Product Development Exclusive Geographic Processing Rights 7
Slide 8: Business Strategy
8 | B U S I N E S S S T R AT E G Y R O YALT Y R E V E N U E MACHINE SALES NUTRADRIED • EnWave grows revenues by • EnWave derives revenue from • The Company wholly owns securing royalty streams through machine installations NutraDried Food Company, LLC licensing its technology with royalty partners •
Slide 9: Improving Financial Performance
9 | IMPROVING FINANCIAL PERFORMANCE REVENUE $15.9 FY2017 mln ► $22.8 FY2018 mln ► $7.8 Q1 2019 mln R O YA LT I E S $370 FY2017 K ► $571 FY2018 K ► $251 Q1 2019 K INCLUDING NUTRADRIED R O YA LT Y $687 FY2017 K ► $1.39 FY2018 mln ► $608 Q1 2019 K CASH ON THE BALANCE SHEET $1.3 FY2017 mln ► $9.1 FY2018
Slide 10: Value Proposition / Investors
1 0 | VAL U E P R O P O S I T I O N / I N V E S TO R S 1 Disruptive Technology With A Significant, Long-term, Competitive Advantage 2 Proven Technology And Business Strategy • Commercial License Agreements signed with 25 • REVTM technology is superior to competition (air companies and growing. dryin
Slide 11: Technology: The Vacuum Advantage and Microwave Advantage
11 | TECHNOLOGY THE VACUUM ADVANTAGE T H E M I C R O WAV E A D VA N TA G E • Lower boiling point: enables fast, • Efficient energy transfer: 85-90% efficiency and reduced low-temperature processing energy requirements • Rapid water removal without cooking or oxidizing • Volumetric heating: fast and
Slide 12: Challenges Addressed with EnWave's REV Technology
12 | TECHNOLOGY 5 Challenges that are Addressed with Enwave’s REV™ Technology • The design of the mechanism to transport organic material • The amount of Vacuum and microwave energy required • The time that the material is exposed to the process • The process for delivering microwave energy • The sh
Slide 13: Machinery: nutraREV and quantaREV
13 | MACHINERY NUTRAREV® QUANTAREV ® • Drum-Based System • Tray-Based System • Suitable for hearty products that can be tumbled • Suitable for products with higher liquid content and for products that are more fragile Available Sizes: Available Sizes: 10kw 60kw 100kw 10kw 60kw 120kw
Slide 14: Partner Development
1 4 | PAR T N E R D E V E L O P M E N T E S TA B L I S H AC C E L E R AT E D R & D CONFIDENTIALITY & MACHINE TESTING GOING TO MARKET • Both parties sign an mutual • Technology Evaluation License • Commercial License non-disclosure agreement Option Agreements (TELOA) Agreement (CLA) (MNDA) allow for
Slide 15: Machine Deployment / Machine Sales
15 | MACHINE DEPLOYMENT 1 5 | M A C H I N E RY / M A C H I N E S A L E S [ k W ] 10 10 120 60 360 10 2019 570 kw 10 10 60 10 10 10 60 10 10 100 10 2018 300 kw 10 10 100 60 10 10 100 2017 300 kw 10 100 10 10 10 120 10 2016 270 kw 10 10 10 10 2015 40 kw
Slide 16: 2018 Machine Deployment
16 | 2018 MACHINE DEPLOYMENT NEW MACHINE DEPLOYMENT
Slide 17: Royalty Partners
1 7 | R O YA LT Y PA R T N E R S ACTIVE LICENSEES
Slide 18: Cannabis Growth: Market Emerges
18 | CANNABIS GROWTH CANNABIS MARKET EMERGES M AT E R I A L R E V ™ T E C H N O L O G Y C AN N A B I S AD VA N TA G E S : • FRESH to DRY in less than 60 minutes • REV™ pasteurization possible - eliminates irradiation • No microbial growth = no drying spoilage • Volatile terpenes retained AND capture
Slide 19: Tilray Validated REV as a Viable Drying Platform for Cannabis
19 | CANNABIS GROWTH T I L R AY V A L I D A T E D R E V ™ A S A V I A B L E D R Y I N G P L AT F O R M F O R C A N N A B I S • Tilray, a major cannabis licensed producer, capitalized on the value proposition of REV™ by securing an exclusive right to use and sub-license the technology to dry and deco
Slide 20: Cannabis Momentum Building
20 | CANNABIS GROWTH CANNABIS MOMENTUM BUILDING T I L R AY I N S TA L L AT I O N S 1. S C H E D U L E D ; R O YA LT I E S A N T I C I PAT E D I N 2 0 1 9 CANADIAN SUBLICENSE SIGNED 2. WITH TGOD, PURCHASE OF 4 2 0 k W o f R E V ™ C A PA C I T Y 3. BR UO SBIUNSETS SI NDT EE VR ENLATO IPOMNEANLTLYP I P
Slide 21: Pharmaceutical Progress Made
21 | PHARMACEUTICAL PROGRESS PHARMACEUTICAL PROGRESS MADE M E R C K P R O J E C T, G E A C O L L A B O R AT I O N FIRST GMP, CONTINUOUS VACUUM-MICROWAVE MACHINE • Continuous REV™ machine delivered to Merck post FAT, SAT milestone satisfied. • Significant reduction in processing time to hours (<8 hrs
Slide 22: NutraDried Excels
22 | NUTRADRIED EXCELS NUTRADRIED STARTED AS A PROOF OF CONCEPT FOR REVTM TECHNOLOGY • Over doubled revenues in fiscal 2018; business unit profitable with attractive product margins; doubled manufacturing capacity. • NutraDried pays 5% royalty to EnWave. • Now a significant part of EnWave’s total bu
Slide 23: Moon Cheese Distribution
23 | MOON CHEESE DISTRIBUTION
Slide 24: NutraDried Fiscal 2018 Revenue
2 4 | C O R P O R AT E P R E S E N TAT I O N NUTRADRIED FISCAL 2018 REVENUE (‘000s CAD) 2018 16,503 2017 6,556 2016 6,108 2015 2,595 2014 221 $(4,000) $(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Net Income Revenue
Slide 25: NutraDried Growth Plan
25 | NUTRADRIED EXCELS NUTRADRIED GROWTH PLAN BUILD THE MODEL, FUEL THE MODEL BUILDING THE MODEL (FY 2019) FUEL THE MODEL (FY2020) • Win with premier retail partners – Costco, • Implement consumer learnings across marketing mix Whole Foods, Publix, Wegman’s, Walmart, HEB – 2000 consumers polled to d
Slide 26: Moving Forward: Preparing for Growth
26 | MOVING FORWARD E N WAV E C O R P O R AT I O N P R E PA R I N G F O R G R O W T H R E S O U R C E A L L O C AT I O N T O D R I V E 1. SALES GROWTH UPSIZING AND TRAINING FOR 2. E N G I N E E R I N G A N D O P E R AT I O N S TEAM FAC I L I T Y I M P R O V E M E N T S AN D 3. E X PA N S I O N SEVER
Slide 27: Moving Forward: Strengthening the Team
27 | MOVING FORWARD E N WAV E C O R P O R AT I O N STRENGTHENING THE TEAM THOMAS MEHLHORN V P, B U S I N E S S D E V E L O P M E N T • Bachelor of Engineering and Economics • Made a career as a senior leader at a variety of entrepreneurial organizations • Cultivated a high-level network of connectio
Slide 28: Moving Forward
28 | MOVING FORWARD Confirm Purchase Orders: • Secure at least six large-scale POs • Secure 6 – 8 10kW POs • This will allow for profitability Support NutraDried: • Provide ongoing product development support when requested • Provide maintenance training • Minimize downtimes
Slide 29: Fiscal Targets
2 9 | F I S C AL 2 0 1 9 TAR G E T S F I S C A L 2 0 1 9 TA R G E T S CONFIRM PURCHASE ORDERS FOR 1. MORE THAN SIX LARGE -SCALE REV™ MACHINES 2. SL II CGENNAT LEAST FIVE NEW SES OR SUB-LICENSES TA R G E T E D T O TA L M A C H I N E 3. REVENUE OF >$10 MLN FROM E N W AV E C A N A D A TA R G E T E D R
Slide 30: Annual Financial Highlights
3 0 | C O R P O R AT E P R E S E N TAT I O N ANNUAL FINANCIAL HIGHLIGHTS FY FY FY FY FY C$ THOUSANDS 2014 2015 2016 2017 2018 • Growing revenue profile from all business Revenue 1,224 5,870 14,933 15,954 22,825 segments. Royalty revenue is expected to grow Net Loss (5,034) (4,993) (1,837) (2,986) (9
Slide 31: Reasons to Own ENW
3 1 | C O R P O R AT E P R E S E N TAT I O N REASONS TO OWN ENW • Disruptive technology with a substantial, long-term, competitive advantage C O R P O R AT E OFFICE • Significant market opportunity in large, diversified, addressable market Unit 1 – 1668 Derwent Way Delta, BC V3M 6R9 • Proven technol