Slide 1: Q1-FY2026 Investor Presentation
Q1-FY2026 Investor Presentation July 11, 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 May 31, 2025. This presentation should be read in conjunction with the Company’s audited consolidated financial statements for t
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 the First Quarter
General Overview of the First Quarter A solid performance • 18.6% sales growth • 100 bps gain in gross profit margin Cash position in excess of $59M • Highest level in five years Strong financial cushion will enable us to review our strategic options • Establish a balance between supporting long-ter
Slide 5: Backlog and Bookings
Backlog (in millions) Backlog1 and Bookings1 $350 $300 $306 $277 $286 $270 $241 $250 $226 Backlog of $286.1M as at May 31, 2025 $200 $150 • $241.3M deliverable within next 12 months $100 • Increasing number of long-term contracts for the $50 nuclear and defense sectors $0 Q1-24 Q2-24 Q3-24 Q4-24 Q1-
Slide 6: Growth Opportunities
Growth Opportunities Heightened traction in China • Traditional power consumption is booming • Positive effect on our business • Most of our output in China is sold domestically • Not meaningfully exposed to U.S. tariffs Middle East is poised for solid growth • Largest market for oilfield valves • J
Slide 7: Growth Opportunities (continued)
Growth Opportunities (continued) Leveraging MRO opportunities • Vast installed base across several industrial markets • Steady flow of orders quickly converted into sales • 90% penetration rate at oil refineries in North America • Significant repeat business reflected in our bookings We remain bulli
Slide 8: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 8
Slide 9: First-Quarter Results: Sales
Sales First-Quarter Results ($ US millions) $72.2 $60.9 Sales $72.2M 14.1% vs. prior year • Higher shipments from Italian, Chinese, Indian and German operations • Partially offset by lower sales in other international Q1-FY25 Q1-FY26 markets • Stable sales from North American operations Q1-FY26 Q1-F
Slide 10: First-Quarter Results: Gross Profit and Adjusted EBITDA
Gross Profit First-Quarter Results ($ US millions) $23.8 Gross Profit $15.1 $20.6M $3.8M vs. prior year 27.6% 28.6% 28.6% of sales 100 bps vs. prior year • Higher business volume Q1-FY25 Q1-FY26 • More favourable product mix • Lower material costs Adj. EBITDA1 and Adj. Net Income1 • Lower provisions
Slide 11: First-Quarter Results: Cash Flow and Financial Position
First-Quarter Results Cash Flow from Operating Activities1 ($ US millions) $12.0 Cash Flow from Operating Activities • Used $15.5M before net changes in provisions • Includes transaction-related costs of $6.1M • Negative changes in non-cash working capital this ($15.5) year versus last Q1-FY25 Q1-FY
Slide 12: Thank you for attending our Q1-FY2026 Financial Results Investor Call
Thank you for attending our Q1-FY2026 Financial Results Investor Call. We are happy to answer any questions. velan.com facebook.com/velan @VelanInc linkedin.com/VelanInc 12
Slide 13: Appendix
Appendix Additional Information
Slide 14: 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 15: VELAN
VELAN www.velan.com