EnWave Corporation · TSXV:ENW
EnWave — Investor Presentation (January 2022)
32 slides from EnWave's investor presentation, January 2022
Slide 1: EnWave Corporation Corporate Presentation January 2022
ENWAVE CORPORATION C O R P O R AT E P R E S E N TAT I O N - J A N U A R Y 2 0 2 2 GLOBAL LEADER IN VAC UUM M IC RO WAVE D EHYD R AT ION T ECH N OLOGY ENWAVE.NET
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 Guiding Vision
OUR GUIDING VISION To be the preferred advanced drying technology and solutions provider for companies at the forefront of the food and cannabis industries. Proven Licensing Robust Commercial-Scale Technology Intellectual Rapid Drying for Royalties Property Technology
Slide 4: Distinctive Excellence
DISTINCTIVE EXCELLENCE E N W AV E C O R P O R AT I O N Our patented Radiant Energy Vacuum (“REV™”) technology offers the most scalable and reliable vacuum-microwave technology on the market. We use REV™ technology and our comprehensive technical knowledge to accelerate product and process developmen
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 organic materials. T HE VACUUM ADVAN TAGE THE MI CRO WAVE ADVANTAGE • Lower boiling point: fast, low • Efficient energy transfer: 85-90%
Slide 6: Monetizing Our Innovation
MONETIZING OUR INNOVATION D I V E R S I F Y I N G T H E C O M M E R C I A L I Z AT I O N O F R E V ™ MAC H I N E SAL E S R O Y A LT Y R E V E N U E 1 2 • Six standard machine designs • Building diverse royalty portfolio by ranging from $250K to $2M. licensing REV™ technology to food • Every machine
Slide 7: Massive Addressable Market
MASSIVE ADDRESSABLE MARKET $300 $269 $250 $200 $165 $148 $150 $100 $94 $65 $50 $56 $50 $21 $0 Air-Dried Food Freeze-Dried Food Global Cannabis Market TAM $US Billions 2021 2026 Est.
Slide 8: EnWave Business Unit
ENWAVE BUSINESS UNIT Machine Sales Royalty Generation Toll Manufacturing
Slide 9: FY21 Commercialization Progress
FY21 COMMERCIALIZATION PROGRESS 14 NEW COMMERCIAL R O YA LT Y- B E A R I N G LICENSES SIGNED HIGHEST T H I R D - PAR T Y BEST EVER ANNUAL R O YA LT Y NET PROFIT REVENUE REVENUE $1.2M $13.9M $920K
Slide 10: Food Market Advantages
FOOD MARKET ADVANTAGES PR O V E N VALU E I N FO O D I N D U S T RY V E R T I CALS RAP I D G E N T L E D R Y I N G R E DU C E D FOOTPR IN T + LAB O U R 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
Slide 11: Expanding Portfolio of Partners
EXPANDING PORTFOLIO OF PARTNERS 38 GLOBAL FOOD LICENSEES AND COUNTING
Slide 12: Cannabis Market Advantages
CANNABIS MARKET ADVANTAGES AD VAN C E D D R Y I N G S O L U T I O N S F O R CAN NAB I S C U L T I VAT I O N RAP I D G E N T L E D R Y I N G R E DU C E D FOOTPR IN T + LAB O U R Dries product well below decarboxylation Reduced footprint and lower CAPEX to point in less than 2 hours; traditional achie
Slide 13: Cannabis - Premium Flower with REV
CANNABIS - PREMIUM FLOWER WITH REV ™ T E R P E N E M A X T M P R O T O C O L – C O M P E L L I N G D ATA Average Total Flower Terpene Percentage on Dry Basis Terpenes (%) 4.0 2.0 3.5 1.8 1.6 3.0 1.4 % Total Terpenes 2.5 1.2 2.0 1.0 1.5 0.8 0.6 1.0 0.4 0.5 0.2 0.0 0.0 Triple OG 501st OG Boysenberry D
Slide 14: REV Commercialization Success
REV™ COMMERCIALIZATION SUCCESS 10 CANNABIS PRODUCING PARTNERS DEMONSTRATING SUPERIOR DRYING CAPABILITIES EnWave has also signed royalty-bearing licenses with two unnamed major US cannabis companies that have purchased one 120kW REV™ machine and two 120kW REV™ machines, respectively.
Slide 15: Major Opportunity in Cannabis
MAJOR OPPORTUNITY IN CANNABIS U.S. Market Continues to be Primary Opportunity • Several additional MSOs in advanced discussion to potentially adopt REV™. anticipated “domino effect” as more industry leaders transition to REV™. • 80% of $21Bn global market is in the U.S. Demand for GMP Machinery Grow
Slide 16: 50 Global Royalty Partners and Counting
50 GLOBAL ROYALTY PARTNERS AND COUNTING EnWave has fostered licensed partnerships globally with companies in 23 countries across 5 continents. Majority of licenses granted with fruit & vegetable, dairy and cannabis companies. 12+ Resellers representing REV™ technology around the globe.
Slide 17: Global Partner Growth
GLOBAL PARTNER GROWTH R O YA LT Y- B E A R I N G L I C E N S E A G R E E M E N T S EnWave Licensed Commercial Partners 60 50 40 30 20 10 0 2017 2018 2019 2020 2021 FOOD CANNABIS
Slide 18: Pharmaceutical Blue Sky
PHARMACEUTICAL BLUE SKY HIGH SPEED PROCESSING Rapid drying with significant time saving over conventional lyophilization (on-demand manufacturing). SIGNED LICENSE AGREEMENT JOINT DEVELOPMENT AGREEMENT I N C R E AS E D U N I F O R M I T Y Uniform energy field and drying temperatures across the load.
Slide 19: REVworx Toll Manufacturing
REVworx™ TOLL MANUFACTURING 1 2 3 4 Ability to scale 5 Increases speed to Reduces financial Enables CPG companies Reduces operational market for REV™-dried risk for REV™ adopters to test innovative burden for brands REVworx™ to grow products products launching new REV™ with partners quickly products
Slide 20: REVworx Toll Manufacturing
REV W O R X ™ TOLL MANUFACTURING FAC I L I T Y C O M P L E T E ; P R O D U C T I O N I N Q 2 2 0 2 2 • Facility is ready, equipment being installed and first commercial production run expected in February 2022. • Hired General Manager and QA Manager; SQF & HACCP preparation to meet Food Safety requi
Slide 21: NutraDried Business Unit
NUTRADRIED BUSINESS UNIT Branded CPG Snacks Co-Manufacturing Bulk Dried Products
Slide 22: NutraDried Food Company
NUTRADRIED FOOD COMPANY W H O L LY- O W N E D O P E R AT I N G S U B S I D I A RY HEALTHY SNACKING DEFINED Single source ingredient Low in carbs, high in protein Gluten-free and keto-friendly Major retail distribution in US and Canada
Slide 23: NutraDried Food Company
NUTRADRIED FOOD COMPANY W H O L LY- O W N E D O P E R AT I N G S U B S I D I A RY PRODUCT INNOVATIONS • Launched Moon Cheese as consumer brand in 2013 • NEW Moon Cheese Sticks lineup launching Q2 2022 • Bringing new food innovations to market with proof-of-concept, large scale, and commercially- via
Slide 24: NutraDried Food Company
NUTRADRIED FOOD COMPANY W H O L LY- O W N E D O P E R AT I N G S U B S I D I A RY COMMERCIAL SCALE OPERATIONS • Two large scale 100 kW REV™ machines available for R&D trials and proof-of-concept line trials. • Used as sales tool to de-risk adoption of REV™ by potential food producing partners. • Agg
Slide 25: Consolidated Financial Profile
CONSOLIDATED FINANCIAL PROFILE ($'000s) 2021 2020 2019 2018 2017 • Multiple revenue streams: Moon Cheese, Machine Sales and Moon Cheese Sales (net) 14,010 22,948 29,994 16,474 7,764 soon REVworx. Machinery Sales & Rentals 11,547 9,100 12,113 5,780 7,820 • Growing high margin, recurring, Royalties 91
Slide 26: Capital Structure
CAPITAL STRUCTURE TSX-V:ENW | FSW:E4U Average Daily Volume (Last Three Months) 105,652 Total Shares Outstanding 110,182,241 Insider/Management Shares 2,573,111 Fully Diluted 124,910,110 Warrants 5,012,202 Options & RSRs 9,715,667 Market Capitalization $94 million (Calculated on January 24, 2022 clos
Slide 27: Fiscal 2022 Targets
FISCAL 2022 TARGETS • Invest strategically to advance internal capabilities and leverage third party channel partners – i.e. rep and reseller channel partners for sales and manufacturing partners for scaling our business. • Commercialize REVworx™ and secure customers to utilize at least 75% of the i
Slide 28: Reasons to Own ENW
REASONS TO OWN ENW • Disruptive advanced drying technology with a substantial competitive advantage • Significant market opportunity in large, diversified, addressable market • Proven technology and diversified monetization strategy • Scalable, high margin business model in place; royalties growing
Slide 29: Appendix
APPENDIX ENWAVE.NET
Slide 30: Leadership / Management
LEADERSHIP / MANAGEMENT • Proven history of advancing and accelerating businesses in addition to an John P.A. Budreski / M B A engineering background Executive Chairman • 30+ years of extensive capital markets and executive experience including roles at Scotia Capital, Cormark Securities and multipl
Slide 31: Leadership / Board of Directors
L E A D E R S H I P / BOARD OF DI RE CT O RS Mary C. Ritchie / F C A • President and CEO of Ritchford Holdings Ltd., an accounting and Director investment advisory services company Chair Of Audit Committee • Fellow of the Canadian Institute of Chartered Accountants Patrick Turpin • Co-Founder of Pop
Slide 32: Research Analyst Coverage
RESEARCH ANALYST COVERAGE STEVE HANSEN, CFA NEIL LINSDELL, CFA KYLE MCPHEE, CFA