EnWave Corporation · TSXV:ENW
EnWave — Investor Presentation (May 2023)
26 slides from EnWave's investor presentation, May 1, 2023
Slide 1: Corporate Presentation - May 2023
Corporate Presentation - May 2023 Accelerating Commercialization, Renewed Strategic Focus Dry Better, Faster – the Global Leader in Vacuum Microwave Dehydration Technology
Slide 2: Disclaimer
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 results.
Slide 3: Our Mission
Our Mission
Slide 4: Our Mission
Our Mission To be the preferred advanced drying technology and solutions provider for partners at the forefront of the food and cannabis industries. EnWave is the global market leader in vacuum-microwave technology, with more than 50 licensed partners. Proven Robust Diverse Revenue Commercial-Scale
Slide 5: The Precise Science of REV Technology
The Precise Science of REV∅ Technology REV™ technology uses specific combinations of vacuum and microwave energy that allow for rapid, gentle drying of diversified food, pharma and cannabis materials. Dry better, faster. THE VACUUM ADVANTAGE THE MICROWAVE ADVANTAGE • Lower boiling point: fast, low •
Slide 6: Food Market Advantages
Food Market Advantages Proven Value in Food Industry Verticals RAPID GENTLE DRYING REDUCED FOOTPRINT + LABOUR Fresh to shelf stable at moderate Smaller footprint required when compared temperatures in less than 25% of the time with large air-dryers and freeze- drying required by incumbent drying met
Slide 7: Cannabis Market Advantages
Cannabis Market Advantages Advanced Drying Solutions for Cannabis Cultivation RAPID GENTLE DRYING REDUCED FOOTPRINT + LABOUR Dries product well below decarboxylation Reduced footprint and lower CAPEX to achieve point in just 2 hours; traditional room/rack same throughput of room/rack dry facilities.
Slide 8: Diverse Monetization Strategy
Diverse Monetization Strategy De-risk Adoption and Drive Commercialization 1. REV™ Machine Sales • Made up 75% of total revenue in FY22, including both new and repeat purchase orders • Strong 30%+ normalized gross margin targeted for FY23 in this revenue stream 2. Royalty Generation • $1.34M cash ro
Slide 9: Commercial Momentum
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Slide 10: Third Party Royalties
Third Party Royalties $1,600,000 $1,400,000 sens $1,200,000 “ewe $919,050 $835,317 $800,000 $734,236 $600,000 $570,512 $400,000 $200,000 $- 2018 A 2019A 2020A 2021A 2022.A
Slide 11: Expanding Portfolio of Royalty Partners
Expanding Portfolio of Royalty Partners
Slide 12: Royalty Partner Products
Royalty Partner Products FRUIT & VEGETABLE NXTDRIED (PERU) PACIFICO (COLOMBIA) BRANCHOUT FOODS (UNITED STATES) CALBEE (JAPAN) DOLE (GLOBAL) PITALIA (COSTA RICA) Ready-to-eat Meals ORTO AL SOLE (ITALY) NOMAD NUTRITION BARE NOMAD NUTRITION (USA/THAILAND) (CANADA) (CANADA)
Slide 13: Royalty Partner Products
Royalty Partner Products DAIRY Moon Cheese Moon Cheese ASHGROVE DAIRY CONCEPTS (UNITED STATES) (UNITED STATES) (TASMANIA) (IRELAND) RESPONSIBLE FOODS ALPINA GAY LEA DAIRY CONCEPTS PATATAS TORRES (ICELAND) (COLOMBIA) (CANADA) (IRELAND) (SPAIN) INTAKT UMLAND’S PITALIA (CHILE) (UNITED STATES) (COSTA RI
Slide 14: REVworx Toll Manufacturing
REVworx Toll Manufacturing Advanced Discussions to Win Meaningful Business • REVworx™ will support primary licensing-royalty model, with goal of converting clients into royalty partners and enabling companies to launch REV™-dried products quickly into market. • REV™ capacity of 70kW installed; 60kW
Slide 15: REVworx Toll Manufacturing
REVworx Toll Manufacturing Advanced Discussions to Win Meaningful Business • EnWave continues to work closely with current and potential royalty partners to commercialize new REVdried product applications including, but not limited to, instant noodles, nutraceutical products, cheesecake snacks, mars
Slide 16: NutraDried Asset Sale
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Slide 17: NutraDried Asset Sale
NutraDried Asset Sale Re-focus on Core Technology Business • On January 23, 2023, EnWave announced that it would commence an orderly wind-down and value maximization process for its operating subsidiary, Nutradried Food Company LLC., due to sustained negative financial performance tied to commodity
Slide 18: NutraDried Asset Sale to Creations
NutraDried Asset Sale to Creations Value Maximization Process • On March 15, 2023, EnWave announced it had sold certain assets of NutraDried to Creations. These assets included NutraDried trademarks, auxiliary equipment, one of two available 100kW machines and saleable inventory. • EnWave also execu
Slide 19: NutraDried Wind-Down
NutraDried Wind-Down Process Completion Expected in Q3 2023 • The majority of the work associated with the wind-down is expected to conclude in Q3 2023. As of the date of this presentation, NutraDried employs 3 people. • In accordance with IFRS 5, beginning Q2 2023, the sum of the post-tax profit or
Slide 20: Consolidated Financial Profile
Consolidated Financial Profile • Multiple revenue streams: ($'000s) 2023 2022 2021 2020 2019 Machine Sales, Partner Q1 YTD Royalties and REVworx. Moon Cheese Sales (net) 1,929 12,655 14,010 22,948 29,994 Moon Cheese revenues Machinery Sales & Rentals 2,372 9,696 11,547 9,100 12,113 and expenses will
Slide 21: Capital Structure
Capital Structure TSX-V:ENW | FSE:E4U Average Daily Volume 39,415 (Last Three Months) Total Shares Outstanding 110,535,055 Insider/Management Shares 2,546,412 Fully Diluted* 118,570,389 Market Capitalization $43.1 million (Calculated on May 1, 2023 closing price of $0.39) As of May 1, 2023. * INCLUD
Slide 22: Go-Forward Strategy Highlights
Go-Forward Strategy Highlights Re-focus on Core Technology Business • Robust pipeline of potential REV™ machine orders from current royalty partners and prospective licensees; prepared to deliver multiple large-scale REV™ machines in adequate timeframe and with strong margins. • REV technology licen
Slide 23: Reasons to own ENW
Reasons to own ENW • Disruptive advanced drying technology with a substantial competitive advantage in multiple industries – food, cannabis and pharma; • Significant opportunity in a large, diversified, addressable global market; • Proven technology at industrial scale and diversified monetization s
Slide 24: Appendix
Appendix ENWAVE.NET
Slide 25: Leadership / Management
Leadership / Management • Proven history of advancing and accelerating businesses in John P.A. Budreski addition to an engineering background MBA • 30+ years of extensive capital markets and executive experience Executive Chairman including roles at Scotia Capital, Cormark Securities and multiple ad
Slide 26: Leadership / Board of Directors
Leadership / Board of Directors Mary C. Ritchie • President and CEO of Ritchford Holdings Ltd. FCA • Fellow of the Canadian Institute of Chartered Director Accountants Chair of Audit Committee Patrick Turpin • Co-Founder of Popchips Director • 30+ years of experience leading consumer packaged goods