Corporate Presentation

THE GLOBAL LEADER IN VACUUM-MICROWAVE
DEHYDRATION TECHNOLOGY
June 2015
www.enwave.net | TSX.V: ENW
NOTICE
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 and financial
results. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated and are not a guarantee of future
performance and involve a number of risks, uncertainties and assumptions.
All third party references to market information in this presentation are not guaranteed to be
accurate as EnWave did not conduct the original primary research.
Please see “Risk Factors” in EnWave’s Management’s Discussion and Analysis for the period
ended December 31, 2014 available on EnWave’s website at http://www.enwave.net and on
SEDAR under EnWave’s profile at www.sedar.com.
Although EnWave has attempted to identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on forward-looking statements.
EnWave’s forward-looking information is based on the beliefs, expectations and opinions of
management of EnWave on the date the statements are made.
EnWave does not assume any obligation to update forward-looking information, whether as a result
of new information, future events or otherwise, other than as required by applicable law.
Amounts shown herein are in Canadian dollars unless otherwise stated.
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DEFINING THE CORPORATION
EnWave's mission is to disrupt the
global dehydration industry by establishing
Radiant Energy Vacuum technology as the
new standard:
Faster and cheaper than freeze drying;
Better quality than air drying.
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MARKET PROFILE
Exchange Listings
Toronto Venture Stock Exchange (TSX.V)
Frankfurt Stock Exchange (FSE)
Symbols
TSX.V:ENW
FSE:E4U
Share Price*
$1.00
52 week range: $0.99 (October 2014)
to $1.52 (July 2014)
Total Shares Outstanding
84,522,759 basic
92,117,716 fully diluted
Market Capitalization
$84.5 million
Enterprise Value
$87.7 million
Shareholder Breakdown*
Retail – 50%
Institutional – 43.5%
Directors & Officers – 6.5%
*All share price data as of closing price on May 31, 2015.Shareholder breakdown is based on approximations.
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COMPANY LEADERSHIP
Board of Directors
Mr. John P.A. Budreski
Executive Chairman
Proven history of advancing and accelerating businesses, as well
as tangible engineering experience
30+ years of extensive capital markets and executive management
experience
Dr. Tim Durance
Director, President & CEO
Inventor & company founder; author of 17 EnWave patents granted
or pending
Emeritus Professor Food Science UBC
Ms. Mary C. Ritchie
Director, Chair of Audit Committee
President and CEO of Richford Holdings Ltd., member of the
Canadian Institute of Chartered Accountants
Dr. Stewart Ritchie
Director
President of Canadian Poultry Consultants and S.J. Ritchie
Research Farms
Mr. Hugh McKinnon
Director
Director & shareholder of Norscot Investments and a Director of
Premium Brands
Dr. Gary Sandberg
Director
Former long-time employee of Lipton
Ph.D. in Food Science from UBC
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SUPERIOR TECHNOLOGY
Radiant Energy Vacuum (“REV™”) technology applies microwave energy to product loads under
vacuum to achieves fast dehydration at low temperatures with reduced oxidization
Better retention of flavor, biological activity and nutrients
Enhanced appearance and improved rehydration potential
Key patented discoveries:
1.
Methods for distributing microwave field to avoid plasma discharge in vacuum
2.
Means to achieving reliable, homogeneous dehydration across a large load
17 REV™ patents either issued or pending
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MATERIAL ADVANTAGES
Incumbent Technologies
REV™ Technology
Freeze Drying
Air Drying
Better
Product
Superior Color,
Stronger Flavor,
High Nutritional Retention
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 energy costs)
High capital costs,
High energy costs
Low capital costs,
Competitive energy costs
High Nutritional Retention
Heat & Oxygen Damages Color,
Flavor, Nutrients & Texture
REV™ is preferable because it is:
• Smaller – seamless integration, smaller footprint
Result
• Continuous Process – reduces large batch write-offs
• Flexible – controllable moisture levels
• Cost Effective – Similar costs to spray / air drying and less than freeze drying
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ADDRESSABLE MARKETS
Potential market for REV™ dehydration as a replacement for freeze, air and spray drying is
estimated at $ US400 billion*
$140B
Market Verticals with
Active REV™ Testing
• Dried Fruit Snacks
• Vegetable & Fruit
Powders
(Puree Substitutes)
• Cheese Snacks
• Pet Food
• Dried Meat Snacks
• Dairy Powders
• Beverage Ingredients
• Cereal & Cereal Bars
• Soup Ingredients
• Probiotics
• Proteins
• Biopharmaceuticals
• Enzymes
Fruit, vegetables, herbs, meat, soups,
sauces, purees, flavors, baby & pet
food
$31
Coffee & powdered drinks
Probiotic, food cultures & proteins
Biopharmaceuticals
Non-regulated biologics (Reagents)
$92
$61
$7 $5
$67
Enzymes
Other spray dried absorbent
polymers, dyestuffs, detergents,
fertilizers & agrochemicals
* Source: company data and industry reports. Data represents potential targets for REV™. There is no guarantee that EnWave can attract industry interest in
these areas, or obtain commercial licenses and machine orders without an industry partner capable of demonstrating technical and economic viability.
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PATENTED INNOVATIONS
Platform
Functionality
Dehydrates fruits, vegetables, herbs, dairy products, meats and seafood in a basket based system;
nutraREV®
quantaREV®
Dried products have higher nutritional content, improved appearance, flavour and texture over
conventional methods.
High-volume, low-temperature and gentle dehydration of solids, gels, liquids or encapsulated
products in a tray or belt based system.
Bulk dehydration of temperature-sensitive biomaterials such as bacteria and enzymes;
powderREV®
A high-speed, continuous, efficient alternative to lyophilisation.
freezeREV™*
(In Development)
High-speed continuous dehydration of biomaterials in vials.
*Platform in pre-commercialization stage
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ROYALTY DRIVEN BUSINESS
REV™ Technology Royalty Portfolio
Joint Partnership Revenue
(NutraDried LLP)
REV™ Machinery Revenue
Building a portfolio of aggressive,
incumbent or innovative royalty
partners
Partnership controlled by EnWave
(51%) to sell healthy dried cheese
snacks in North America
REV™ commercial machinery
sales (or leasing) and
maintenance
Royalty revenue is based on a
percentage of revenues or dollar
per lbs/kg of products produced &
sold
5% royalty paid to EnWave
EnWave and/or Binder work with
each commercial licensee to
ensure successful plant design,
installation and start-up
Target to have annual royalty at a
double digit percentage of
machine sales price
North American business can be
replicated in other jurisdictions
Traditional air dryer sales
Nutradried provides a showcase to
other prospective royalty partners
Cost-plus revenue model
Typical royalty rate on annual
revenues is between 3% - 5%
Royalty term extends to patent
portfolio term
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MEAT PRODUCTS
Commenced collaboration with Hormel Foods (producers of SPAM® and
Skippy® peanut butter) in 2011; commercial license signed in June 2013
Hormel submitted a purchase order for a 100kW nutraREV ® machine in Jan.
2015; focused on dried meat snack products; installation to be completed
Summer 2015.
Hormel Foods expects to start-up 100kW machine in 2015, enhancing its
commercial production and enabling the launch of new, innovative snack meat
products
Momentum building in market vertical – Campofrio (Europe), Perdue Farms
(USA) and Jack Link’s Beef Jerky (USA) collaborations.
Continuing business devlopment initiatives with several other interested Tier 1
and Tier 2 companies
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DEHYDROFROZEN PRODUCTS
Bonduelle is a dominant producer ($2+ bn in annual revenue) of canned and frozen
vegetables in North America and Europe
Bonduelle signed royalty-bearing license in November 2013 for exclusive right to produce
dehydrofrozen vegetables globally
Removal of one-quarter of moisture via REV™ technology prior to freezing reduces “sweating”
from thawed/cooked products
Material quality improvement; end products have texture, taste and color more similar to, or
better than, fresh products
Market test results illustrated that end consumers in many cases could not tell the difference
between fresh and frozen products after cooking
Lease agreement signed; 120kW quantaREV™ machinery delivered in May, 2015 with goal of
completing a 300-400kW quantaREV™ machine design to be available for purchase by end of
2015
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DAIRY PRODUCTS
EnWave Joint Partnership, NutraDried LLP, produces and sells 100% natural dried cheese snacks
in the North American market under the brand Moon Cheese®
100kW nutraREV® machine installed for Moon Cheese™ production at Ferndale, Washington
Distribution for Moon Cheese® in over 2,800 grocery stores in North America
Moon Cheese® to launch into 3,500 stores of a major coffee chain during summer 2015
Second license signed in November 2014 with Gay Lea Foods, a major Canadian dairy producer,
to produce, market and sell dried cheese snack products
Third license signed with Umland LLC to product high kosher dried cheese snacks
5% standard royalty paid to EnWave from licensees in this market vertical
EnWave pushing business development with several additional dairy product producing companies
in North America, Europe and Australasia; recent collaboration signed with Ultima Foods (Canada)
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FRUIT & VEGETABLES
Five royalty-bearing commercial licenses signed in this market vertical
First commercial-scale machinery sold (75kW nutraREV®) in 2009 to CAL-SAN, a B.C.-based
blueberry producer; major technology advancements since that time
Second commercial licensee, Milne Fruit, is a leading U.S. fruit processor; 118kW machine delivered
in Q2 calendar 2012 for production; now producing 11 natural dried fruit & vegetables in snack and
powdered form
Third commercial license licensee signed May 2014 with Canadian vegetable producer; 20kW
nutraREV® machine purchased
Fourth commercial license signed and purchase order received from Chilean fruit processor, Natural
Nutrition Ltd, in July 2014; machine installed in May 2015
Fifth license signed with undisclosed fruit producing company
Several additional companies currently engaged with EnWave to test products in this market vertical,
including Sun Maid Growers, Ocean Spray Cranberries and others
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HERBS & SPICES
Signed royalty-bearing commercial license with Napa Mountain Spice Company (NMSC) in
September 2013
Purchase order received for small commercial unit; delivered and installed February 2014
Commercial license (5% royalty) and trademark agreements signed with EnWave
Brighter color, stronger flavor and improved nutritional retention enabled by REV™
Attractive economics and increased capacity for NMSC
100% organic certification granted April 2014
EnWave is leveraging the success of NMSC into additional commercial opportunities in the global
spice & herb market vertical
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PHARMACEUTICALS
Independent testing of REV™ technology demonstrate significant reduction in drying times of
vaccines, antibodies, probiotics and enzymes when compared to lyophilization
Tests have also shown that REV™ technology preserves similar efficacy, stability and shelf-life to that
produced using lyophlization
Commercial license signed with Sutro Biopharma in May 2014 to use powderREV® for the
dehydration of a cell-free extract for their protein synthesis process
Non-exclusive license signed with Merck in December 2014; second generation non-GMP REV™
dryer for the pharmaceutical industry; Merck retains option to exclusively license REV™ for the drying
of several specific vaccines
EnWave signed a technology evaluation agreement in March 2014 with a third pharmaceutical
company to dry monoclonal antibodies
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MACHINE SALES PIPELINE
# of Near-Term Machines
Customer
Market
Sector
End Product
In
Operation
Ordered/ Anticipated
Market
Status
Hormel (2013)
Meat
Products
Snacks
10kW unit
One 100kW nutraREV
machine
U.S.
100kW installation and start-up expected in
2015; enhances production capabilities
Bonduelle
(2013)
Dehydro
Frozen
Frozen Vegetables
--
One 120kW
quantaREV
North
America
Commercial license signed Nov. 2013;
delivery of quantaREV expected early 2015
Milne
(2011)
Dried Fruit &
Vegetables
Snacks, Cereals,
Baking, Ingredients
118kW
machine
One 100kW nutraREV
North
America
Commercial plant started-up in April 2012
NutraDried LLP
(2013)
Cheese
Products
Snacks
100kW
nutraREV
One 100kW nutraREV
U.S.
Launched into Kroger, Overwaitea, etc.;
increased distribution and sales expected
Napa Mountain
(2013)
Spices &
Herbs
Bay Leaves
One 10kW
nutraREV
--
U.S.
Machine start-up and commercial
production in Feb. 2014
CAL-SAN
(2009)
Berries
Snacks & Ingredients
75kW
nutraREV
--
Canada
Modest production & royalties since
commercial start-up
Confidential
(2014)
Vegetables &
Herbs
Undisclosed
20kW
nutraREV
--
Canada
Delivery and start-up of 20kW nutraREV
machine complete; commercial sales
expected
Gay Lea Foods
(2014)
Cheese
Products
Snacks
10kW unit
One 100kW nutraREV
Canada
Commercial license and machine order
signed in November 2014
Natural Nutrition
(2014)
Dried Fruit
Products
Snacks,
Nutraceuticals and
Functional
Ingredients
10kW unit
2 nutraREV units
Latin
America
Commercial license and machine order
signed in July 2014; commercial start-up in
May 2015
Sutro Biopharma
(2014)
Pharma
Cell-Free Extract
Prototype
unit
One commercial
powderREV
U.S.
Merck (2014)
Pharma
Vaccines
Lab-scale
2nd generation nonGMP dryer
Global
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Prototype being used for testing and
commercial powderREV order mid 2015
expected
Signed 10 year R&D non-exclusive license
agreement; continued testing expected
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PARTNER LIST
Licensed Partners
Development Partners
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MOVING FORWARD
Focus on further development, contracting and advancement of existing partners
Significantly increased resources dedicated to broadening the prospect list and signing of new
partners
Continue with reactive partner development, driving on proactive partner development
Helping prospective partners to de-risk through process, product development and market efforts
Shortening the time frame from first contact to royalty paying
Highly scale-able business model
Target is build a massive and diverse portfolio of non-correlated royalties
2009
First License
Agreement
Signed
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2010
First Major
Research
Agreement
2013
Significant
Commercial
Momentum
2014
Building
Foundation
for Royalty
Growth
2015
Accelerate
Prospect
Conversion
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BUILDING MOMENTUM
Reasons to own ENW
Disruptive technology for massive
addressable market
Recent Progress
August 2014
Signed R&D agreement with Jack Link’s
Oct. 2014
Appointed new Audit Committee Chair
Proven royalty-based business
model; thirteen licensees and
growing
Dec. 2014
Signed non-exclusive R&D license with Merck
Jan. 2015
Received machine purchase order from Hormel
Commercialization inflection point
occurring in food processing
industry
Feb. 2015
Secured cheese snack distribution in major
coffee chain
April 2015
Started collaboration with Perdue Farms; signed
license and purchase order with Umland LLC
May 2015
Started collaboration with Ultima Foods
Recent milestones with
pharmaceutical partners; proving
technology value
Strong management team with
scientific, engineering and capital
market experience
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INVESTMENT HIGHLIGHTS
 Business is based upon building a substantial portfolio of diversified royalties
 Superior technology: better, faster, cheaper
 Signed royalty partners Hormel & Bonduelle (global businesses) validate core business model and
value of REV™ technology
 Additional commercial agreements represent near-term catalysts; current licensees also include Gay
Lea Foods, Milne, CAL-SAN, Napa Mountain Spice Co., Natural Nutrition Ltd, Sutro Biopharma,
Enzyme Partner, Vegetable Partner and NutraDried JP
 Merck moving forward with non-exclusive research license for vaccine dehydration
 Expanding I.P. enhances valuation and supports royalty model
 Significant increase in resources dedicated to royalty partner acquistion

Business model: machine sales cover overheads, royalty income fuels dividend growth
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CONTACT
John P.A. Budreski
Brent Charleton
Executive Chairman
Senior Vice President, Corporate Affairs
Phone: +1 (416) 930-0914
Phone: +1 (778) 378-9616
Email: [email protected]
Email: [email protected]
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