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THE GLOBAL LEADER IN VACUUM-MICROWAVE
DEHYDRATION TECHNOLOGY
August 2016 www.enwave.net | TSX.V: ENW
WWW.ENWAVE.NET 2
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, 2015 available on EnWave’s website at http://www.enwave.net and on SEDARunder EnWave’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 are made.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 otherwise stated.
NOTICE
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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 gold standard:
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NEW PRODUCT INNOVATIONSFLEXIBLE MOISTURE CONTENT ENHANCED PRODUCT ATTRIBUTES
HIGH SPEED PROCESSING REDUCED ENERGY USAGE CONTINUOUS PROCESSING
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MARKET PROFILE
Exchange Listings
Symbols
Share Price*
52 week range
Total Shares Outstanding
Daily Trading
Average volume:
Average value:
Market Capitalization
Enterprise Value
Shareholder Breakdown*
*All share price data as of August 26, 2016.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
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Toronto Venture Stock Exchange (TSX.V)
Frankfurt Stock Exchange (FSE)
TSX.V:ENW
FSE:E4U
$1.30
$0.65 (February 2016) to $1.30 (August 2016)
90.7 mln basic
98.7 mln fully diluted
106,737 shares
$116,770
$118 mln
$113.68 mln
Management/Board – 7%
Seven major shareholders – 42%
Distributed/Retail – 51%
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COMPANY LEADERSHIP
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Board of Directors
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
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
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 organic materials
under vacuum to achieve fast dehydration at low temperatures with minimal oxidization
EnWave has mastered the five critical components that underpin the challenge to vacuum
microwave drying:
The shape of vacuum chamber
The design of the crucible which holds the organic material
The amount of vacuum
The amount and delivery of microwave energy
The time that the material is exposed
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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Incumbent Technologies
REV™ Technology Freeze Drying Air Drying
Better
Product
Superior Color
Stronger Flavor
High Nutritional Retention
High Nutritional RetentionHeat & Oxygen Damages Color,
Flavor, Nutrients & Texture
Faster
ProcessMinutes 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
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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Platform Functionality
nutraREV®
Dehydrates fruits, vegetables, herbs,
dairy products, meats and seafood.
Dehydration achieved in high
volumes by way of a rotating basket,
continuous batch process.
quantaREV®
High-volume, low-temperature and
gentle dehydration of solids, gels,
liquids or encapsulated products.
Dehydration achieved by way of a
moving tray, continuous batch
process.
powderREV®
Bulk dehydration of temperature-
sensitive biomaterials such as
bacteria and enzymes.
A high-speed, continuous, efficient
alternative to lyophilisation.
freezeREV™ (Pre-commercialization)
High-speed continuous dehydration
of biomaterials in small vials below
freezing.
PATENTED INNOVATIONS
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ADDRESSABLE MARKET
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The global freeze drying machinery market was estimated to be worth $1.9 Bln at the end of 2014
and is expected to reach $2.6 Bln by 2019, at a CAGR of 6.2% from 2014 to 2019.
Estimated $400 Bln diverse consumer product market for technology application.
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TECHNOLOGY ON TREND
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Radiant Energy Vacuum (“REV™”) technology allows EnWave’s partners to capitalize on the
following important global food processing market trends:
1. Snackification – snacks now account for one of every five ‘eating occasions’, driving the
demand for shelf-stable, healthy grab-and-go food choices. REV™ technology allows for
the development of many new innovative snacking options.
2. Naturally functional – global consumer trends are placing increased importance on the
inherent nutritional properties and the subsequent health claims of the foods they are
consuming. REV™ allows food processing companies to retain high nutritional value.
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 advantages and
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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MOON CHEESE LEADS THE WAY
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Creation of NutraDried LLP to demonstrate commercial
viability of REV™ machinery; 100kW machine installed
Attractive production economics; profitable business unit
Moon Cheese® brand strength; dried crunchy, all-natural
cheese snack product in three flavours
Widespread North American distribution – led by
Starbucks Coffee corporate distribution in 8,900+ stores;
distribution in up to 20,000+ other stores
Replicable model through product iterations in other
geographies
ND pays 5% royalty to EnWave; EnWave consolidates
100% revenue and receives 51% of potential future
profit
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COMMERCIAL REV™ PRODUCTS
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PARTNER DEVELOPMENT
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PROACTIVE EFFORTS
Increased industry tradeshow attendance; from one to three per year
Improved frequency of pilot plant and NutraDried LLP tours
Custom sample “care packages” sent to every qualified potential partner
High energy, high frequency prospecting; cold calling the C-suite and/or decision makers
MOST RECENT WINS
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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
Royalty revenue is based on a
percentage of revenues or dollar
per lb/kg of products produced &
sold
Target to have annual royalty at a
double digit percentage of
machine sales price
Typical royalty rate on annual
revenues is between 3% - 7%
Royalty term extends to patent
portfolio term
Partnership controlled by EnWave
(51%) to sell innovative dried
cheese snack products
NutraDried, along with industry
partners, is expanding into other
innovative, REV™ dried snacks
5% royalty paid to EnWave
North American business can be
replicated in other jurisdictions
NutraDried provides a product and
operations showcase to other
prospective royalty partners
REV™ commercial machinery
sales (or leasing) and
maintenance
EnWave works with each
commercial licensee to ensure
successful plant design,
installation and start-up
Traditional pricing and profit model
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REV™ machines sold on a cost-plus model with the goal of machine contribution
covering operating expenses
Machine sales anticipated to accelerate; full business dev pipeline
Seek to maximize royalty streams associated with specific market vertical opportunities
BUSINESS STRATEGY
ROYALTY
BASEROYALTY
BASEROYALTY BASE
ROYALTY BASEROYALTY BASE
MACHINE
REVENUEMACHINE
REVENUEMACHINE
REVENUEMACHINE
REVENUEMACHINE
REVENUE
2016 2017 2018 2019 2020
BREAKEVEN
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BUSINESS DEV PIPELINE
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• Initial sampling of the technology
• Collaboration, product development, market testing and de-risking
• Small-scale REV™; commercial
• Large-scale REV™; commercial
Time at Stage Number of Companies
1-2 months
6-12 months
6-12+ months
Years
85 companies
22 partners
7 partners
5 partners
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GROWTH IN ADOPTION
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Increased frequency of Technology Evaluation and License Option (TELOA) and
Commercial License (CLA) agreements
Timeline
CLA
TELOA
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GROWTH IN ADOPTION
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Total installed REV™ machine capacity improving; royalty streams initiating and
building
0
100
200
300
400
500
600
700
800
900
Tota
l REV
Cap
acit
y In
stal
led
(kW
)
Timeline
REV Technology Commercialization
REV
CLA
TELOA
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MARKET VERTICAL BREAKDOWN
The chart below depicts the market vertical commercialization distribution of
EnWave’s Radiant Energy Vacuum (REVTM) technology based on REVTM
capacity.
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Fruits & Vegetables57%
Dairy23%
Meat18%
Other2%
Fruits & Vegetables Dairy Meat Other
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WORLDWIDE TARGETTING
Meat
Dairy
Fruit & Veg
Pharmaceutical
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ACCELERATING BUSINESS
Target is to build a massive and diverse portfolio of non-correlated royalties
Strategy execution is well underway; machine sales contribution beginning to
cover operating costs, base accumulation royalty streams
Visibility of REV™ technology improving in the consumer and industry
environments through:
Availability and awareness of REV™ retail products
Demonstrated commercial success of royalty partners
Expanding business development pipeline; increased number of active
relationships with prospective partners; increasing frequency of wins
Q3 fiscal 2016 YTD positive cash flow from operations
Positive net income from continuing operations for Q2 and Q3 fiscal 2016
Committed to growing a diversified, global portfolio of royalties in the food and
pharmaceutical processing industries
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John P.A. Budreski
Executive Chairman
Phone: +1 (416) 930-0914
Email: [email protected]
Brent Charleton
Senior Vice President, Business Development
Phone: +1 (778) 378-9616
Email: [email protected]
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CONTACT