Slide 1: Q2-FY2026 Investor Presentation
Q2-FY2026 Investor Presentation October 10, 2025
Slide 2: Disclaimer
Disclaimer The following presentation provides an analysis of the consolidated operating results and financial position of Velan Inc. (“the Company”) for the quarter ended August 31, 2025. This presentation should be read in conjunction with the Company’s audited consolidated financial statements fo
Slide 3: James A. Mannebach, Chairman and CEO
James A. Mannebach Chairman of the Board and Chief Executive Officer 3
Slide 4: General Overview of Second Quarter
General Overview of Second Quarter Sales of $67.6M and adjusted EBITDA1 of $3.4M • Performance affected by the rescheduling of certain order deliveries to accommodate changes in customer requirements • Delays in purchasing decisions due to tariffs • Shipments totaling more than $12M rescheduled for
Slide 5: Backlog and Bookings
Backlog (in millions) Backlog1 and Bookings1 $350 $314 $300 $287 $286 $257 $252 $250 $232 Backlog of $285.8M as at August 31, 2025 $200 $150 • Up 4.0% since the beginning of the fiscal year $100 • $252.4M deliverable within next 12 months $50 (88.3% of backlog) $0 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
Slide 6: Fast-Tracked Infrastructure Projects
Fast-Tracked Infrastructure Projects Role of Canada’s Major Projects Office (MPO) • Streamline regulatory assessment and approvals • Significantly reduce approval time for projects of national importance Velan stands to benefit from accelerated projects • Darlington New Nuclear Project is being fast
Slide 7: In Summary
In Summary Clean energy is a key growth sector for Velan worldwide • Customers move to reach their own carbon reduction objectives Solid footing in other markets • Oil & Gas • Our valves equip the majority of refineries in North America • Growing worldwide base to further expand through Saudi Arabia
Slide 8: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 8
Slide 9: Second Quarter Results
Second Quarter Results Sales ($US millions) $77.7 $72.5* Sales $67.6 $67.6M 13.0% vs. prior year Excluding last year’s non-recurring revenue of $5.2M $67.6M 6.7% vs. prior year Q2-FY25 Q2-FY26 • Lower sales from North American and Italian operations due to rescheduled shipments into Q2-FY26 second h
Slide 10: Q2-FY26 Second Quarter Results
Gross Profit Second Quarter Results $20.0 ($US millions) $15.7 Gross Profit $15.7M $4.3M vs. prior year 25.7% 23.2% of sales 250 bps vs. prior year Q2-FY26 • Lower sales volume • Less favourable product mix • Tariff impact Adj. EBITDA1 and Adj. Net Income1 (Loss) • Partially offset by positive FX im
Slide 11: Six-Month Results 6M-FY26
Six-Month Results Sales ($US millions) $138.6 $133.4* $139.8 Sales $139.8M 0.9% vs. prior year Excluding last year’s non-recurring revenue of $5.2M $139.8M 4.8% vs. prior year 6M-FY25 6M-FY26 Gross Profit ($US millions) Gross Profit $36.3M $0.5M vs. prior year $36.8 $36.3 26.0% of sales 50 bps vs. p
Slide 12: Cash Flow and Financial Position
Cash Flow and Financial Position Cash Flow from Operating Activities* ($US millions) Cash Flow from Operating Activities $4.7 • Used $16.0M before net change in provisions • Reduced profitability • Negative changes in non-cash working capital, mainly ($16.0) due to work in process inventory related
Slide 13: Thank you for attending our Q2-FY2026 Financial Results Investor Call
Thank you for attending our Q2-FY2026 Financial Results Investor Call. We are happy to answer any questions. velan.com facebook.com/velan @VelanInc linkedin.com/VelanInc 13
Slide 14: Appendix
Appendix Additional Information
Slide 15: Non-IFRS and Supplementary Financial Measures
Non-IFRS and Supplementary Financial Measures Non-IFRS measures The term “Adjusted net income (loss)” is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for costs related to restructuring and to the proposed transaction. The
Slide 16: www.velan.com
VELAN www.velan.com