Slide 1: Q4 and FY2024 Investor Presentation
Q4 and FY2024 Investor Presentation May 17, 2024
Slide 2: Disclaimer
Disclaimer The following investor presentation provides an analysis of the consolidated operating results and financial position of Velan Inc. (“the Company”) for the quarter and fiscal year ended February 29, 2024. This investor presentation should be read in conjunction with the Company’s audited
Slide 3: James A. Mannebach, CEO and Chairman of the Board
James A. Mannebach CEO and Chairman of the Board 3
Slide 4: General Overview
General Overview ▪ Fiscal 2024 was a less-than-optimal year • Challenging economic environment • Disruptions from proposed company sale ▪ Highly encouraged by sequential increases in bookings1 during the second half • Year-end backlog1 of $491.5M • Nearly three-quarters to be shipped within a 12-mon
Slide 5: The Strength of our Network
The Strength of our Network ▪ Extremely favourable perception of Velan • Strength of our brand • Quality of our products • Positioning in the marketplace ▪ A global company with HQ in Canada Replace picture • R&D centers in Canada, France, Italy, India • 12 manufacturing facilities around the world
Slide 6: Key Growth Markets
Key Growth Markets ▪ Looking to increase our reach in key growth markets Nuclear Oil & Gas Defense Liquefied Natural Gas (LNG) ▪ Markets buoyed by energy transition trends • Customers must meet stated carbon emission reduction targets • We have dedicated resources to environmentally driven solutions
Slide 7: Focus on Cash Generation
Focus on Cash Generation ▪ With solid fundamentals, we are well positioned to drive sales and cash flow growth • Leverage global scale of business • Maximize strategic procurement • Optimize inventory management ▪ Solid financial position • Concluded fiscal 2024 with a net cash position • On solid g
Slide 8: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 8
Slide 9: Backlog and Orders
Backlog and Orders ▪ Year-end backlog of $491.5M • $360.7M to be delivered in the next 12 months ▪ Bookings of $132.8M in the fourth quarter compared to $87.1M a year ago • Robust bookings for oil and gas orders in Italy • Higher orders by North American operations • Partially offset by the timing o
Slide 10: Fourth Quarter Results
Sales ($ millions) Fourth Quarter Results $117.9 $115.1 ▪ Sales of $117.9M for the quarter, up from $115.1M a year ago • Strong shipments from international operations Q4-F23 Q4-F24 • Italy • China Q4-F2023 Geographical Sales Q4-F2024 Geographical Sales • Partially offset by: 7.4% 8.0% 14.9% 15.8% •
Slide 11: Fourth Quarter Results
Fourth Quarter Results Gross Profit ($ millions) $39.9 $38.4 ▪ Gross Profit of $38.4M, versus $39.9M • Less favorable product mix due to the execution of low margin projects 34.7% 32.6% ▪ Excluding items affecting comparability, administrative costs were $21.7M, down from Q4-F23 Q4-F24 $24.9M • Excl
Slide 12: Fourth Quarter Cash Flows and Financial Position
Cash Flows from Operating Activities Fourth Quarter Cash Flows ($ millions) $19.6 and Financial Position $18.5 ▪ Cash provided by operating activities of $19.6M, up from $18.5M last year • Higher EBITDA and positive changes in non-cash working capital movements Q4-F23 Q4-F24 • Partially offset by un
Slide 13: Looking Ahead to F2025
Looking Ahead to F2025 ▪ Given our solid backlog, we expect fiscal 2025 sales to exceed those of fiscal 2024 13
Slide 14: Thank you for attending our Q4-F2024 Financial Results Investor Call
Thank you for attending our Q4-F2024 Financial Results Investor Call. We are happy to answer any questions. velan.com facebook.com/velan @VelanInc linkedin.com/VelanInc 14
Slide 15: Appendix
Appendix Additional Information
Slide 16: 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 the proposed transaction, restructuring, and asbest
Slide 17: velan.com
velan.com