EnWave Corporation · TSXV:ENW
EnWave — Investor Presentation (November 2023)
21 slides from EnWave's investor presentation, November 2023
Slide 1: Fresh thinking. Fast drying. Fantastic results.
Fresh thinking. Fast drying. Fantastic results. Corporate Presentation November 2023
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: The Problem
The Problem Commercial drying is integral to food, cannabis, and pharmaceutical production, but the traditional methods of freeze-drying and air drying aren’t enough to meet industry needs. • There’s no room for innovation or growth • It takes too long • It requires too much space • The results are
Slide 4: EnWave's Patented REV Technology
The Solution EnWave’s Patented REV™ Technology REV™ stands for “Radiant Energy Vacuum” It’s our own patented process of vacuum microwave drying that dehydrates food and plants more efficiently and of a higher quality than ever before. Radiant Energy • Fast and uniform volumetric heating • Precise te
Slide 5: 9+ Ways REV Technology Wins
9+ Ways REV∅ Technology Wins Dry better, faster. Opportunity for Higher quality More control Reduced Fast, gentle Innovation products and consistency footprint drying Never-before-seen Better nutrition, taste, Precise, volumetric, Up to 30% less space About 5x faster than products texture, flavor, c
Slide 6: Where REV Fits in The Global Market
Where REV™ Fits in The Global Market • Nutritious powders • Chewy bites Fruits • Crunchy snacks & Veg Smoked • Superior taste/colour • Plant-based jerkies • Preserves taste, smell, appearance and flower Meats & • Retains up to 90% of Seafood • Premium, clean-label terpenes normally lost high protein
Slide 7: A Large and Growing Market Supported by Positive Trends
A Large and Growing Market Supported by Positive Trends Increased Consumer Health Awareness & Snacking • REV™-dried products retain more nutrients and have superior 7.1% CAGR taste than traditional freeze-drying methods • 56% of consumers switched to healthier snacks in 20215 • “Surging snack consum
Slide 8: Unique Technology, Unique Business Model: 3 Paths to Profit
Unique Technology, Unique Business Model: 3 Paths to Profit 1 Sales & Rentals 2 REV™ Royalties 3 Toll Drying Service Made up 85% of EnWave’s Source of perpetual cash Toll drying enables food total revenue in FY22. royalties for the life of the companies to launch REV- Includes both new and commercia
Slide 9: Why Do Customers Choose EnWave?
Why Do Customers Choose EnWave? EnWave is the global leader in the innovation and application of vacuum microwave dehydration, and the creator of REV™ technology. Since 2009, it has been our mission to partner with food and cannabis companies who are looking for a reliable, scalable solution to thei
Slide 10: Sales Process: Collaborative R&D, License & Roll Out, Royalties
3 Step Sales Process 1 Collaborative R&D 2 License & Roll Out 3 Royalties & Support Prospects visit our facility and REV machines (usually larger- Active REV units begin work with our team of experts scale units) are sold with a generating royalties to explore the possibilities. commercial license w
Slide 11: Traction - 50+ Established Partners Across 25 Countries
Traction - 50+ Established Partners Across 25 Countries
Slide 12: REV Machines
REV∅ Machines REV10 kW REV60 kW REV100 & REV120 kW Freq: 2450 mHz Freq: 2450 mHz Freq: 2450 mHz Vacuum: 12-300 Torr Vacuum: 25-300 Torr Vacuum: 22-300 Torr Size: 7.9 x 5.8 ft Size: 38.3 x 12.5 ft Size: 55.7 x 14.8 ft (2.4 x 1.8 m) (12.2 x 4.6m) (16.6 x 4.6 m) Ceiling: 10 ft (3.1 m) Ceiling: 15 ft (4
Slide 13: Natural Scalability, Recurring Revenue, Margin Growth
Expansive Scalable Business …Generates… …Creating… REV∅ Machine Incremental Robust EBITDA Sales Capacity Royalty Revenues Potential Natural Scalability Recurring & Stable Margin Growth Compact production footprint Smoothens quarter-over- Driven by high-margin royalties supports machine production qu
Slide 14: Growing Stream of Ongoing Revenue From REV Royalties
Growing Stream of Ongoing Revenue From REV∅ Royalties Key Royalty Growth Drivers • Sales of new REV™ machines • Commissioning of previously sold REV™ units (4 new large-scale machines coming online in near term) • Increased customer utilization of outstanding REV™ machines
Slide 15: Deployed REV Machine Base Growing
Deployed REV Machine Base Growing • Installed kW capacity is a key driver of royalty generation in addition to machine utilization • As of Q3 2023, 5 machines (1 large-scale) were awaiting commissioning and 2 more (one 60kW & one 120kW) were in the fabrication pipeline Source: EnWave's annual MD&A,
Slide 16: Recent Financial Highlights & Capital Structure
Recent Financial Highlights & Capital Structure Q3 2023 Highlights (Ended June 30, 2023) • Revenue of $2.5M, down 7% vs $2.7M in Q3 2022, attributable to a different sales mix of larger and smaller machines, partially offset by a 30% YoY increase in royalty revenue to $394K Capital Structure (Octobe
Slide 17: NutraDried Asset Sale: Refocus on Core Technology
NutraDried Asset Sale: Refocus on Core Technology and Renewed Capital Markets Effort • EnWave initially created NutraDried to demonstrate that its commercial-scale, continuous REV™ dehydration machinery could operate consistently and reliably. This demonstration de-risked the adoption of REV™, helpi
Slide 18: Go-Forward Strategy Highlights
Go-Forward Strategy Highlights Expected More sales of REV∅ machines Continued REVworx∅ toll drying 2024-2025 We have a robust pipeline of potential Our toll drying service offers low-risk orders from current partners and entry for companies, helping to prospective licensees. introduce new REV produc
Slide 19: Reasons to Invest in ENW
Reasons to Invest in ENW Three Paths to Profit Large, Diverse Market Clear Competitive Advantage 1. Machine rentals and sales Applicable in multiple Advanced REV™ technology 2. REV™ Royalties verticals within the global challenges old drying methods food, cannabis and with better, faster, consistent
Slide 20: Board of Directors
Board of Directors John P.A. Budreski, Executive Chairman Stephen Sanford, Director • 30+ years of extensive capital markets • Former Managing General Counsel at Fluor Corp • Executive experience including roles at Scotia • Lawyer licensed in Canada and USA Capital, Cormark Securities and multiple a
Slide 21: Management
Management Brent Charleton, President & CEO Mehmet Sucu, Chief Engineer • Accomplished leader with expertise in finance, • A registered Professional Engineer with EGBC business development, and capital markets who has been with EnWave since 2011 • Demonstrated ability to implement change • An academ