Slide 1: Q1-FY2027 Investor Presentation
Q1-FY2027 Investor Presentation July 10, 2026
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 May 31, 2026. This presentation should be read in conjunction with the Company’s audited consolidated financial statements for t
Slide 3: Entering a New Chapter in our History
Entering a New Chapter in our History ▪ Acquisition by Birch Hill of Velan Holding’s majority interest • Closing announced on June 15, 2026 ▪ Well positioned to strengthen our leadership across the markets we serve • Strong balance sheet • Solid brand reputation • Product quality • Expertise in crit
Slide 4: Changes to the Board of Directors
Changes to the Board of Directors ▪ Jim Mannebach retired as CEO and stepped down as Chair of the Board • Remains Company Director as one of Birch Hill’s nominees ▪ Additional Birch Hill nominees • Patrick Duncan, partner at Birch Hill, named Chair • Joshua Lundy • Shauna Gamble (independent) ▪ Thre
Slide 5: General Overview and Outlook
General Overview and Outlook ▪ Results below last year mainly due to external factors • Geopolitical and regional conflicts affecting customer activity, order timing and shipment schedules ▪ Focus on rightsizing our cost structure ▪ Advancing a transformation plan • Optimize our operations • Leverag
Slide 6: Key Markets Overview
Key Markets Overview ▪ Nuclear remains a major growth driver • Growing demand for reliable, low-carbon energy • Increasing investment in reactor refurbishments, life-extension programs, SMRs, and new-build projects ▪ Canada’s Nuclear Energy Strategy recognizes its important role in meeting demand, e
Slide 7: Key Markets Overview (cont'd)
Key Markets Overview (cont’d) ▪ Rising global security concerns driving investments in defense naval modernization programs • Our leading position in nuclear propulsion valves could translate into orders over the next few years ▪ Opportunities in Oil & Gas • Bidding activity remains healthy despite
Slide 8: First Quarter Results
First Quarter Results ▪ Geopolitical and regional conflicts impacted bookings, deliveries and profitability • Bookings constrained by geopolitical uncertainty and reduced maintenance, repair and overhaul (MRO) activity • Shipments deferred to future periods with majority expected to be recaptured by
Slide 9: Backlog and Bookings
Backlog (in millions) $350 $306 $300 $277 $286 $275 Backlog1 and Bookings1 $250 $241 $194 $200 Backlog of $275.1M as at May 31, 2026 $150 • Down slightly from $283.3M three months ago $100 • $194.4M deliverable within next 12 months (70.7%) $50 • Higher proportion of longer-duration, large scale $0
Slide 10: Quarterly Sales
Quarterly Sales ($US millions) Sales $72.2 $57.8 $57.8M 19.9% vs. prior year • Lower shipments from North American and Italian operations, mainly due to geopolitical and regional conflicts Q1-FY26 Q1-FY27 • Certain shipments deferred to future periods expected to be recaptured by the end of the fisc
Slide 11: Profitability
Gross Profit ($US millions) Profitability $20.6 Gross profit $11.4 28.6% $11.4M 9.3M$ vs. prior year 19.6% 19.6% of sales 900 bps vs. prior year Q1-FY26 Q1-FY27 • Impact of lower business volume on the absorption of fixed production overhead costs Adjusted EBITDA1 and Adjusted Net Income1 (Loss) ($U
Slide 12: Cash Flow and Financial Position
Cash Flow from Operating activities ($US millions) Cash Flow and Financial Position Cash Flow from Operating Activities • Unfavourable variation reflects negative changes in non-cash working capital items ($15.5) ($17.4) • Decreases in accounts payable and accrued liabilities, as Q1-FY26 Q1-FY27 wel
Slide 13: In Summary
In Summary ▪ Entering an exciting new chapter in our history • Well positioned to execute our strategy and create long-term value ▪ Attractive opportunities in our core markets supported by favourable long-term fundamentals • Advancing through stages that provide visibility toward bookings and execu
Slide 14: Thank you for attending our Q1-F2027 Financial Results Investor Call.
Thank you for attending our Q1-F2027 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 restructuring and to the proposed transaction. The
Slide 17: VELAN
VELAN www.velan.com