Velan Inc. · TSX:VLN
Velan — Q4 2025 Earnings Presentation
18 slides from Velan's earnings presentation, May 22, 2025
Slide 1: Q4 and FY 2025 Investor Presentation
Q4 and FY 2025 Investor Presentation May 22, 2025
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 28, 2025. This investor presentation should be read in conjunction with the Company’s audited
Slide 3: James A. Mannebach
James A. Mannebach Chairman of the Board and CEO 3
Slide 4: Fiscal 2025 – A Vintage Year
Fiscal 2025 – A Vintage Year Strong financial performance • Sales from continuing operations grew 14.1% to $295.2M • Gross profit margin improved 770 basis points to 28.8% • Adjusted EBITDA1 of $27.5M, up significantly from $2.1M in 2024 • Cash flows from operating activities more than doubled to
Slide 5: Fourth Quarter Results
Fourth Quarter Results Sales increased 2.9% year-over-year to $83.2M • Amid volatile economic environment and uncertain trade disruptions looming over customers Adjusted EBITDA1 decreased to $3.6M • Lower gross profit • Higher administration costs 1 Non-IFRS measure – see Non-IFRS and Supplement
Slide 6: High-Growth Markets
High-Growth Markets Nuclear sector brimming with new opportunities • Technology companies rolling out AI centres • Joining forces with established energy providers and start-ups to deploy SMRs • Recommissioning of existing infrastructures • We recently signed partnerships with key actors in the nu
Slide 7: High-Growth Markets (continued)
High-Growth Markets (continued) Increased spending worldwide in defense market • Sovereign states addressing national security concerns • Our deep knowledge of nuclear marine and aircraft propulsion technologies remains unmatched LNG and hydrogen processes safeguarding the environment • Velan of
Slide 8: Summary
Summary Outstanding performance in FY 2025 Well-positioned to benefit from increased demand for clean energy, particularly nuclear • Firmly entrenched in other industrial sectors Entering FY 2026 with a sharper focus and improved balance sheet Created significant shareholder value in FY 2025
Slide 9: Rishi Sharma
Rishi Sharma Chief Financial and Administrative Officer 9
Slide 10: Backlog and Orders
Backlog (in millions) Backlog1 and Orders $350 $300 $284 $275 $255 $260 $250 $226 Backlog of $274.9M as at February 28, 2025 $200 $215 • Slight Y/Y increase excluding $12.7M negative $150 currency impact $100 • Higher nuclear orders in North America, partially offset $50 by lower oil & gas orders
Slide 11: Sales
Annual Sales ($US Millions) +14% Sales 295.2 258.7 Annual Sales $295.2M $36.5M vs Prior Year $258.7M • Higher shipments from Italian operations for the oil & gas industry • Greater volume from German business related to oil refineries FY-24 FY-25 • Partially offset by slightly lower sales in North A
Slide 12: Gross Profit
Annual Gross Profit ($US Millions) Gross Profit +55% 84.9 Annual Gross Profit 54.6 $84.9M $30.3M vs Prior Year 28.8% $54.6M 21.1% • Higher business volume • More favourable product mix FY-24 FY-25 Quarterly Gross Profit ($US Millions) -12% Quarterly Gross Profit $19.8M $2.6M vs Prior Year 22.4 19.8
Slide 13: Profitability
Annual Adj. EBITDA and Adj. Net Income (Loss) Profitability ($US Millions) 27.5 Annual Adjusted EBITDA $27.5M $25.4M vs Prior Year 6.6 $2.1M 2.1 • Higher gross profit Annual Adjusted Net Income (15.7) $6.6M $22.3M vs Prior Year FY-24 FY-25 ($15.7M) Quarterly Adj. EBITDA and Adj. Net Income (Loss) Qu
Slide 14: Cash Flow and Financial Position
Cash Flow from Operations ($US Millions) Cash Flow and Financial Position 26.5 Cash from Operations $26.5M $14.0M vs Prior Year 12.5 $12.5M • Higher profitability • Positive changes in working capital FY-24 FY-25 Strengthened financial position after transactions Financial Position as at February 28
Slide 15: Thank you for attending our Q4 and FY2025 financial results investor call
Thank you for attending our Q4 and FY2025 financial results investor call. We are happy to answer any questions. velan.com facebook.com/velan @VelanInc linkedin.com/VelanInc 15
Slide 16: Appendix
Appendix Additional Information
Slide 17: 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 18: www.velan.com
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