Slide 1: Q2-FY2025 Investor Presentation
Q2-FY2025 Investor Presentation October 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 August 31, 2024. This investor presentation should be read in conjunction with the Company’s audited consolidated finan
Slide 3: James A. Mannebach, CEO and Chairman of the Board
James A. Mannebach CEO and Chairman of the Board 3
Slide 4: General Overview of the Quarter
General Overview of the Quarter ▪ Robust performance across the board • Bookings1 increased 63.0% YoY to $116.6M • Sales grew 22.8% YoY to $98.6M • Improvement in net profitability with net income2 of $0.1M • Cash flow from operating activities improved to $10.1M ▪ Strong contribution from multiple
Slide 5: Sustained Momentum in Nuclear Power
Sustained Momentum in Nuclear Power ▪ Main Services Agreement with GEH SMR Technologies Canada Ltd. • Provide certain proprietary products and services to develop a small modular reactor (SMR) for Ontario Power Generation Inc. • Selected as supplier for Darlington’s New Nuclear Project NEW PICTURE •
Slide 6: Backlog and Orders
Backlog (in millions) Backlog1 and Orders $600 $500 $478 $486 $548 $396 $400 $347 $339 ▪ Backlog of $548.1M as at August 31, 2024 $300 • $395.9M to be delivered in the next 12 months $200 ▪ Bookings of $116.6M in Q2, up 63.0% from a $100 year ago $0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2
Slide 7: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 7
Slide 8: Second-Quarter Results: Sales
Sales ($ US millions) $98.6 $80.3 Second-Quarter Results ▪ Sales of $98.6M, up 22.8% YoY • Higher shipments from diverse businesses: Q2-FY24 Q2-FY25 • Italian operations (oil & gas) • French operations (nuclear power) Sales distribution by customer geographic location • North American operations (de
Slide 9: Second-Quarter Results: Gross Profit, Adj. EBITDA and Net Income
Gross Profit ($ US millions) $26.7 Second-Quarter Results $23.4 ▪ Gross profit of $26.7M compared to $23.4M in 27.0% 29.1% Q2-FY24 • Higher sales volume and favourable product mix, partially offset by increased inventory provisions Q2-FY24 Q2-FY25 • Excluding non-recurring revenue gain, gross profit
Slide 10: Cash Flow and Financial Position
Cash Flow from Operations ($ US millions) $10.1 Cash Flow and Financial Position ▪ Cash flow provided by operating activities of $10.1M compared to $21.2M used in Q2-FY24 ($21.2) • More favourable changes in non-cash working capital movements and higher EBITDA accounted Q2-FY24 Q2-FY25 for significa
Slide 11: Outlook for FY 2025
Outlook for FY 2025 ▪ Strong first-half performance ▪ Highest order backlog in three years at $548.1 million ▪ Expecting continued momentum in second half ▪ Maintaining sales growth outlook for fiscal year 11
Slide 12: Thank you for attending our Q2-FY2025 financial results investor call
Thank you for attending our Q2-FY2025 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 Three-month periods ended Six-month periods ended Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for August 31, 2024 Au
Slide 15: VELAN
VELAN www.velan.com