the global leader in vacuum-microwave … · growth, product development, marketposition,expected...

THE GLOBAL LEADER IN VACUUM-MICROWAVE DEHYDRATION TECHNOLOGY

JUNE 2017 www.enwave.net | TSX.V: ENW

This presentation contains forward-looking information based on management's expectations,estimates and projections about the future, including statements about EnWave’s strategy forgrowth, product development, market position, expected expenditures and operational and financialresults. There can be no assurance that such statements will prove to be accurate, as actual resultsand future events could differ materially from those anticipated and are not a guarantee of futureperformance and involve a number of risks, uncertainties and assumptions.All third party references to market information in this presentation are not guaranteed to beaccurate as EnWave did not conduct the original primary research.Please see “Risk Factors” in EnWave’s Management’s Discussion and Analysis for the year endedSeptember 30, 2016 available on EnWave’s website at http://www.enwave.net and on SEDAR underEnWave’s profile at www.sedar.com.Although EnWave has attempted to identify important factors that could cause actual results to differmaterially, there may be other factors that cause results not to be as anticipated, estimated orintended. Accordingly, readers should not place undue reliance on forward-looking statements.EnWave’s forward-looking information is based on the beliefs, expectations and opinions ofmanagement of EnWave on the date the statements aremade.EnWave does not assume any obligation to update forward-looking information, whether as a resultof new information, future events or otherwise, other than as required by applicable law.Amounts shown herein are in Canadian dollars unless otherwisestated.

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DISCLOSURES

THE CORPORATION

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Advanced technology company holding a suite of patented innovations, deployed in form of

state-of-the-art machinery:

EnWave’s mission is to build a diversified portfolio of royalty-bearing commercial licenses in the

food and pharmaceutical industries.

MARKET PROFILE

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Exchange Listings

Symbols

Share Price*

52 weekrange

Total Shares Outstanding

Daily Trading Average volume: Average value:

Market Capitalization

Enterprise Value

Shareholder Breakdown*

*All share price data as of May 31, 2017.*Shareholder breakdown is based on approximations.*Enterprise value = Market value of common equity + Market value of preferred stock + Market value of debt + Minority Interest − Value of cash and short‐term investments

Toronto Venture Stock Exchange (TSX.V) Frankfurt Stock Exchange (FSE)

TSX.V:ENW FSE:E4U

$1.03

$0.76 (May 2016) to $1.30 (October 2016)

90.8 mln basic101.4 mln fully diluted

51,510 shares$54,225

$98.5 mln

$97.3 mln

Management/Board – 7%Six major shareholders – 38%Distributed/Retail – 55%

COMPANY LEADERSHIP

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Board of Directors

John P.A. BudreskiExecutive Chairman

Proven history of advancing and accelerating businesses, as well as tangible engineering experience30+ years of extensive capital markets and executive management experience

Dr. Tim DuranceDirector, President & CEO

Inventor & company founderAuthor of 17 EnWave patents granted or pending Emeritus Professor Food ScienceUBC

Mary C. RitchieDirector, Chair of AuditCommittee

President and CEO of Richford Holdings Ltd., member of the Canadian Institute of CharteredAccountants

Dr. Stewart RitchieDirector

President of Canadian Poultry Consultants and S.J. Ritchie Research Farms

Hugh McKinnonDirector

Director & shareholder of Norscot Investments and a Director of Premium Brands

Dr. Gary SandbergDirector

Former long-time employee of Lipton Ph.D. in Food Science fromUBC

SUPERIOR TECHNOLOGY

Radiant Energy Vacuum (REV™) technology has disrupted the global dehydration industry by establishing itself as the new gold standard:

Five critical components that underpin the challenge to vacuum microwave drying:The design of the crucible which holds the organicmaterial The amount of vacuum and microwave energyThe time that the material is exposedThe delivery of microwave energy The shape of vacuum chamber

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NEW PRODUCT INNOVATIONSFLEXIBLE MOISTURE CONTENT ENHANCED PRODUCT ATTRIBUTES

HIGH SPEEDPROCESSING REDUCED ENERGY USAGE CONTINUOUS PROCESSING

Incumbent TechnologiesREV™ Technology Freeze Drying Air Drying

Better Product

Superior Color Stronger Flavor

High Nutritional RetentionHigh Nutritional Retention Heat & Oxygen Damages Color,

Flavor, Nutrients & Texture

Faster Process

Minutes or Hours (1.5 hours for Blueberries)

Hours or Days(24 – 36 hours for Blueberries)

Hours(6 hours for Blueberries)

Cheaper Cost

Up to 80% lower processing costs than freeze-drying

(combination of lower capital, labor and energycosts)

High Capital Costs High Energy Costs

Low Capital Costs Competitive Energy Costs

Result

REV™ is preferable because it is:

• Smaller – seamless integration, smaller footprint

• Continuous Process – reduces large batch write-offs

• Flexible – controllable moisture levels

• Cost Effective – Similar costs to spray / air drying and less than freeze drying

MATERIAL ADVANTAGES

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ADDRESSABLE MARKET

Applicable Consumer Product Market estimated at $400 Billion

Global Freeze Drying Market estimated at $1.9 Billion (EOY 2014), with a CAGR of 6.2% to reach $2.6 Billion by 2019

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TECHNOLOGY ON TREND

Radiant Energy Vacuum (“REV™”) technology allows EnWave’s partners to capitalize on thefollowing important global food processing market trends:

1. Snackification – snacks now account for one of every five ‘eating occasions’, driving thedemand for shelf-stable, healthy grab-and-go food choices. REV™ technology allows forthe development of many new innovative snacking options.

2. Naturally functional – global consumer trends are placing increased importance onthe inherent nutritional properties and the subsequent health claims of the foods they are consuming. REV™ allows food processing companies to retain high nutritionalvalue.

3. Protein - powered by the ‘naturally functional’ trend, consumers are looking for protein rich snack options in new forms. REV™ is being used by several partners to produce protein rich products in the dairy, meat and pulse crop industries.

4. Dairy 2.0 – companies are looking to make the most of dairy's natural advantagesand deliver new innovative products that coincide with the three other market trends listed above. REV™ can be used to process cheese, yogurt and milk snack products and ingredients.

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REVENUE MODEL

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Mutually Non Disclosure Agreement

(MNDA)

Technology Evaluation License Option Agreement

(TELOA)

Commercial License Agreement

(CLA)

Product SamplingFeasibility AssessmentCost Benefit Analysis

Product DevelopmentOn-Site TestingMachine Rentals

Product LaunchGrant of Exclusivity:

1. Product2. Geographic

The Royalty Structure:1. Term extends to EnWave’s Patent Portfolio Duration2. Rate ranges from 3% to 7% on the wholesale value of REV™ processed products3. Target annual royalty: Double digit percentage of machine sales price

Income from Client Directed Trials

Rental IncomeLicense Option Fees

Machine Purchase OrdersQuarterly Royalties

MOON CHEESE LEADS THE WAY

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Proven commercial viabilityAttractive production economicsProfitable business unitBrand Strength: Moon Cheese® Production: 100kW nutraREV

Dried crunchy, all-naturalcheese snack product in three flavours:

Cheddar, Gouda, Pepper jack

51% Stake

Fully ConsolidatedRoyalty Revenues: 5%

Widespread North American Retail Distribution

+30,000 Stores

PIPELINE OVERVIEW

Initial sampling of the technology

Collaboration, product development, market testing and de-risking

Small-scale REV™; commercial

Large-scale REV™; commercial

Duration Deals

1-2 months

6-12 months

6-12+ months

Years

85 companies

11 partners

15 partners

9 partners

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Fleet Deployment

0

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13

10

GROWTH IN ADOPTION

Total installed REV™ machine capacity improving; royalty streams initiating and buildingIncreased frequency of Technology Evaluation and License Option (TELOA) and Commercial License (CLA) agreements

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CLA

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SALES STRATEGY

PROACTIVE EFFORTS

Increased industry tradeshow attendance; from one to five peryear

Improved frequency of pilot plant and NutraDried LLP tours

Custom sample “care packages” sent to every qualified potentialpartner

High energy, high frequency prospecting; cold calling the C-suite and/or decisionmakers

Human resources expanded; targeted business development travel increasingdramatically

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RECENT PUBLICLY DISCLOSED PARTNER DEVELOPMENTS

EXECUTION PROGRESS

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Strategy execution is well underway:1. Machine sales begin to cover operating costs2. Base accumulation of royalty streams

Enhanced visibility of REV™ technology:1. Consumer front – Availability and awareness of REV™-dried retail products2. Industry front – Demonstrated commercial success of royalty partners

Expanding business development pipeline:1. Growing number of active relationships with prospective partners2. Increased frequency of wins

FINANCIAL PERFORMANCE

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REVENUE GROWTH

EnWave NutraDried

Second Fiscal Quarter Financials Comparison (2017 vs. 2016)

1. Consolidated Revenues for the six months ended March 2017 vs. 2016 increased by 6.4%2. Operating Efficiency: Current Working Capital Surplus of $6.76 Million3. Subsidiary’s profit increased to positive $218,000 from $105,000 in the prior year

WORLDWIDE TARGETTING

Meat

Dairy

Fruit & Veg

Pharmaceutical

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John P.A. Budreski

Executive Chairman

Phone: +1 (416) 930-0914

Email: jbudreski@enwave.net

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Brent Charleton

Senior Vice President, Business Development

Phone: +1 (778) 378-9616

Email: bcharleton@enwave.net

EXECUTIVE CONTACTS