Velan Inc. · TSX:VLN
Velan — Q3 2025 Earnings Presentation
20 slides from Velan's earnings presentation, Jan 15, 2025
Slide 1: Q3-FY2025 Investor Presentation
Q3-FY2025 Investor Presentation January 15, 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 ended November 30, 2024. This investor presentation should be read in conjunction with the Company’s audited consolidated fin
Slide 3: James A. Mannebach, Chairman of the Board and CEO
James A. Mannebach Chairman of the Board and CEO 3
Slide 4: General Overview of the Quarter from Continuing Operations
General Overview of the Quarter from Continuing Operations Maintained profitable growth momentum in Q3-FY25 • Sales grew 18.1% to $73.4M • Adjusted Net Income1 of $8.5M • Cash flow from operating activities of ($0.1M), after nine months we have generated $20.0M Announcement of transactions posit
Slide 5: Backlog and Orders
Backlog (in millions) $350 Backlog1 and Orders $300 $279 $256 $299 $249 $250 $235 $233 Backlog up 5.3% since beginning of FY25 to $200 $298.7M as at November 30, 2024 $150 • $249.1M to be delivered in the next 12 months $100 $50 Bookings1 slightly down to $59.1M in Q3-FY25 $0 due to timing of or
Slide 6: Divestiture of Asbestos-Related Liabilities
Divestiture of Asbestos-Related Liabilities Agreement with an affiliate of Global Risk Capital, a company specialized in acquiring and managing legacy corporate liabilities • Provision of $78M for asbestos-related claims at last fiscal year end Removes all asbestos liabilities from financial sta
Slide 7: Sale of French Subsidiaries
Sale of French Subsidiaries Exclusive negotiations with Framatome SAS, an international leader in nuclear energy Our subsidiaries: Segault SAS and Velan France SAS • Main suppliers to EDF and the French Navy • Transaction valued at 192.5M euros Velan shareholders’ meeting to approve the transa
Slide 8: Velan Outlook Post Transactions
Velan Outlook Post Transactions Velan will remain a leader in flow control solutions driven by: • A strong brand • High-quality products • Superior market positioning Well-positioned for multi-year, nuclear power growth cycle • Proprietary valves for Small Modular Reactors (SMRs) • Extensive glo
Slide 9: In Summary
In Summary Strong momentum continued in the third quarter Confident to deliver sales growth year over year and enhanced profitability for FY 2025 Remain focused on maximizing profitable growth Committed to rewarding shareholders over the long term 9
Slide 10: Rishi Sharma, Chief Financial and Administrative Officer
Rishi Sharma Chief Financial and Administrative Officer 10
Slide 11: Third-Quarter Results
Sales ($US Millions) Third-Quarter Results +18% 73.4 62.2 Sales $73.4M $18.1% vs Prior Year $62.2M • Higher shipments from Italian and Chinese operations; partially offset by lower sales in other international Q3-FY24 Q3-FY25 markets • Stable sales from North American operations Gross Profit ($US Mi
Slide 12: Third-Quarter Results: Adj. EBITDA and Net Income
Third-Quarter Results Adj. EBITDA and Net Income (Loss) ($US Millions) Adjusted EBITDA 14.3 $14.3M $18.4M vs Prior Year ($4.1M) 8.5 • Higher sales and improved gross profit, partially offset by increased administration costs • Adjusted EBITDA excludes $69.1M of asbestos related costs • Other transac
Slide 13: Cash Flow and Financial Position
YTD Cash Flow from Operations ($US Millions) Cash Flow and Financial Position 19.9 YTD Cash from Operations $19.9M $27.5M vs Prior Year ($7.6M) • YTD strong cash flow from operating activities from improved profitability and working capital initiatives -7.6 Q3-FY24 Q3-FY25 • Cash from operating acti
Slide 14: Financial Impact of the Transactions
Financial Impact of the Transactions Divestiture of asbestos-related liabilities Sale of our U.S. subsidiary Velan Valve Corp. capitalized with: • $143M from Velan • $7M from the buyer Use available cash, partial proceeds from French transaction to fund the divestiture and/or other financing opt
Slide 15: Financial Impact of the Transactions
Financial Impact of the Transactions Sale of French subsidiaries Velan UK, a wholly-owned subsidiary, has entered a memorandum of understanding relating to the sale of 100% of the share capital and voting rights of its French subsidiaries, Segault SAS and Velan S.A.S. to Framatome SAS Purchase p
Slide 16: Transactions to Redefine Cash Deployment Strategy on Three Pillars
Transactions to Redefine Cash Deployment Strategy on Three Pillars Net Proceeds of Healthy Balance Opportunity to $30M -$32M from Sheet with minimal invest in growth both Transactions debt opportunities Post Sale of French subsidiaries and Asbestos liability, Expect Balanced Capital Allocation Betwe
Slide 17: Thank you for attending our Q3-FY2025 financial results investor call
Thank you for attending our Q3-FY2025 financial results investor call. We are happy to answer any questions. velan.com facebook.com/velan @VelanInc linkedin.com/VelanInc 17
Slide 18: Appendix
Appendix Additional Information
Slide 19: 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 20: www.velan.com
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