Slide 1: Q3-F2024 Investor Presentation
Q3-F2024 Investor Presentation January 11, 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 ended November 30, 2023. This investor presentation should be read in conjunction with the Company’s audited consolidated fin
Slide 3: James A. Mannebach, Interim CEO and Chairman
James A. Mannebach Interim CEO and Chairman of the Board 3
Slide 4: General Overview
General Overview ▪ Renewing our focus • Strengthening the organization • Growing the business ▪ Anticipate sustained demand for our products • Driven by energy transition trends • Proven ability to meet demanding applications ▪ New management appointments • Chairman of the Board, James A. Mannebach,
Slide 5: Orders and Backlog
Backlog ($ millions) Orders and Backlog1 600 500 400 300 ▪ Backlog1 of $485.0M at quarter end 200 • $361.5M shippable in the next 12 months 100 0 ▪ Bookings1 of $78.3M for the quarter F23-Q1 Q2 Q3 Q4 F24-Q1 Q2 Q3 compared to $99.2M a year ago < 1 year > 1 year • Large marine orders in last year’s Q3
Slide 6: Financial Highlights
Financial Highlights ▪ Reduced business activity in North America $80.9M $16.4M • Contrasts with large order shipments in the Sales Gross Profit same period last year ▪ Sales growth in other international markets ($2.3M) ($7.3M) ▪ Lower gross profit due to reduced volume EBITDA1 Net Loss2 and the ex
Slide 7: Looking Ahead
Looking Ahead ▪ Anticipate shipments to accelerate in Q4 • Execution of large-scale projects ▪ Strong backlog and higher bidding and booking activity provide comfort about projected sales for next year ▪ Global presence, diversified customer base, and focus on critical applications are key competiti
Slide 8: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 8
Slide 9: Operating Performance
Backlog ($ millions) Operating Performance $485.0 $464.3 ▪ 4.5% backlog1 increase since the beginning of the fiscal year • Book-to-bill ratio of 1.06 year to date and of 0.97 in the third quarter Feb. 28, 2023 Nov. 30, 2023 ▪ Sequentially, the backlog1 remained steady and bookings increased F24 Book
Slide 10: Third Quarter Results
Sales ($ millions) Third Quarter Results $95.2 $80.9 ▪ Sales of $80.9M for the quarter compared to $95.2M a year ago • Lower North American sales due to last year’s Q3-F23 Q3-F24 shipment of a large order • Lower MRO contracts reflecting extended Q3-F23 Geographical Sales Q3-F24 Geographical Sales t
Slide 11: Third Quarter Results
Gross Profit ($ millions) Third Quarter Results $29.0 ▪ Gross Profit of $16.4M, versus $29.0M $16.4 • Lower business volume • Execution of a low margin project Q3-F23 Q3-F24 ▪ Administrative costs of $21.6M, down from $25.4M last year • $3.0 million asbestos-related provision last year Administrativ
Slide 12: Cash Flows and Financial Position
Cash Flows ($ millions) Cash Flows and Financial 4.0 Position (1.5) (1.5) ▪ Cash used by operating activities of (3.4) $4.9M,compared to $3.4M last year (4.9) (6.3) ▪ Lower EBITDA partially offset by favourable Q3-F23 Q3-F24 movements in non-cash working capital items Operating Investing Financing ▪
Slide 13: Thank you for attending our Q3-F2024 Financial Results Investor Call
Thank you for attending our Q3-F2024 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 Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA") Three-month periods ended Nine-month periods ended (in millions of USD) Nov. 30, 2023 Nov. 30, 2022 Nov. 30, 2023 Nov. 30, 2022 Net income (loss)1 (7.3) 2.7 (17.7) (8.3) Dep
Slide 16: Board of Directors
Board of Directors James A. Mannebach Suzanne Blanchet Dahra Granovsky Edward Kernaghan Chair of the Corporation La Prairie, Québec, Canada Toronto, Ontario, Canada Toronto, Ontario, Canada St. Louis, Missouri, USA Director since: 2021 Director since: 2019 Director since: 2021 Director since: 2018 I
Slide 17: velan.com
velan.com