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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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Tota
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Timeline
REV Technology Commercialization
REV
CLA
TELOA
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
John P.A. Budreski
Executive Chairman
Phone: +1 (416) 930-0914
Email: [email protected]
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Brent Charleton
Senior Vice President, Business Development
Phone: +1 (778) 378-9616
Email: [email protected]
EXECUTIVE CONTACTS