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Q2-FY2027 Investor Presentation Results for the quarter ended August 31, 2026 TSX: VLN | October 8, 2026
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Q2-FY2027 Investor Presentation – October 8, 2026 IMPORTANT INFORMATION Disclaimer The following presentation provides an analysis of the consolidated operating results and financial position of Velan Inc. (“the Company”) for the quarter ended August 31, 2026. This presentation should be read in conjunction with the Company’s audited consolidated financial statements for the years ended February 28, 2026, and February 28, 2025. The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The significant accounting policies upon which these consolidated financial statements have been prepared are detailed in Note 2 of the Company’s audited consolidated financial statements. All foreign currency transactions, balances and overseas operations have been converted to U.S. dollars, the Company’s reporting currency. This presentation was reviewed by the Board of Directors of the Company on October 7, 2026. Additional information relating to the Company, including the Annual Information Form and Proxy Information Circular, can be found on SEDAR+ at www.sedarplus.ca. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES In this presentation, the Company has presented measures of performance or financial condition which are not defined under IFRS (“non-IFRS measures”) and are, therefore, unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company and are reconciled with the performance measures defined under IFRS. Reconciliations of these amounts can be found at the end of this presentation. The Company has also presented supplementary financial measures which are defined at the end of this presentation. FORWARD-LOOKING INFORMATION This presentation may include forward-looking statements, which generally contain words like “should”, “believe”, “anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue” or “estimate” or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties. These risks and uncertainties are disclosed in the Company’s filings with the appropriate securities commissions. While these statements are based on management’s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed, and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. 2
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Q2-FY2027 Investor Presentation – October 8, 2026 Q2-FY2027 at a Glance 3 A transition quarter. The foundation is being rebuilt. SALES $57.5M −14.9% y/y BOOKINGS¹ $47.9M timing of large awards BACKLOG¹ $262.5M 76.2% within 12 months ADJ. EBITDA¹ ($0.7M) ex-transaction costs CASH $28.2M plus $80M facility WHERE WE ARE Trailing prior year Sales down 14.9%, driven by execution and the timing of shipments rather than demand. WHAT IS SOLID Demand and liquidity Core nuclear, defense and energy markets remain solid. $28.2M cash and cash equivalents, an $80M facility to 2031 and total global available liquidity of $95.8M (comprised of availability on credit facility, cash on hand and short-term investments). WHERE WE ARE GOING Profitable growth Focused initiatives underway; a leaner cost base and a pipeline of larger core-market opportunities. ¹ Non-IFRS or supplementary financial measure – see Non-IFRS and Supplementary Financial Measures in the Appendix.
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Q2-FY2027 Investor Presentation – October 8, 2026 OVERVIEW Focusing Velan for Profitable Growth 4 NEAR-TERM PICTURE Solid underlying demand Core nuclear, defense and energy markets remain solid Bookings timing, not lost demand Second-quarter bookings reflect timing of large awards; a substantial pipeline of core-market opportunities remains in play Large opportunity pipeline Named opportunities across nuclear, defense and projects, several expected to convert in the near term OUR SIX PILLARS Cost Discipline Right-size the cost base and embed spend discipline across the organization Procurement & Value Engineering Optimize the supplier base and strengthen sourcing across the group Talent & Organization Build the capability and accountability to execute Manufacturing Footprint Make best use of the global footprint and modernize facilities Working Capital & Assets Release cash from inventory, receivables and underutilized assets Growth Acceleration Accelerate profitable growth in core markets, aftermarket and new opportunities
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Q2-FY2027 Investor Presentation – October 8, 2026 OVERVIEW Key Markets Overview Nuclear OUTLOOK Momentum building • Demand for reliable, low-carbon energy • Refurbishments, life extensions, small modular reactors and new builds • Canada’s Nuclear Energy Strategy supports refurbishment and new builds • Funded projects advancing through engineering and procurement Defense OUTLOOK Naval modernization spending rising • Leading position in nuclear propulsion valves • Naval modernization and fleet sustainment driving multi-year demand • Long qualification cycles create high barriers to entry • Aftermarket and spares support the installed fleet Power OUTLOOK Steady aftermarket demand; project bidding slowed by geopolitical uncertainty • Installed base across conventional and combined-cycle power • Deferred maintenance in North America • Longer-term infrastructure projects in the Middle East • Aftermarket and life-extension work underpin demand 5 MRO OUTLOOK Resilient through the cycle; held up through the quarter • Large global installed base • Aftermarket, spares and field service • Shorter cycle, faster-converting demand
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Q2-FY2027 Investor Presentation – October 8, 2026 FINANCIAL RESULTS Second Quarter Results HEADWINDS • Shipments delayed by tariffs and geopolitical tensions, and by certain operational and customer constraints • Bookings of $47.9M vs. $65.2M: timing of North American nuclear, power and process; stable China OFFSETS • MRO activity stayed strong • Backlog of $262.5M, 76.2% deliverable in 12 months • $28.2M cash and cash equivalents plus a new credit facility 6 Q2 SALES $57.5M Down 14.9% from $67.6M a year earlier
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Q2-FY2027 Investor Presentation – October 8, 2026 FINANCIAL RESULTS Backlog¹ and Bookings¹ Backlog ($US millions) Bookings and Sales (trailing 12 months, $US millions) $0 $50 $100 $150 $200 $250 $300 $350 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q2-27 Backlog < 12 months $0 $50 $100 $150 $200 $250 $300 $350 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q2-27 Bookings Sales DELIVERABLE WITHIN 12 MONTHS 76.2% of backlog Q2 BOOKINGS¹ $47.9M vs. $65.2M a year earlier ¹ Non-IFRS measure – see Non-IFRS and Supplementary Financial Measures in the Appendix of this presentation. 7 BACKLOG $262.5M
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Q2-FY2027 Investor Presentation – October 8, 2026 FINANCIAL RESULTS Sales Quarterly Sales ($US millions) Sales distribution by customer geographic location $67.6 $57.5 Q2-FY26 Q2-FY27 Q2-FY27 54.9% 4.2% 38.2% 2.4% 0.3% Q2-FY26 55.2% 11.6% 25.9% 4.7%2.6% North America Europe Asia Pacific Africa & Middle East South & Central America Shipments deferred Tariffs and geopolitical tensions, together with certain operational and customer constraints, pushed shipments out of the quarter Softer North America Trailing prior year due to operational and customer constraints; sales down $5.9M Asia Pacific grew Large offshore and floating production orders lifted share to 38.2% 8
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Q2-FY2027 Investor Presentation – October 8, 2026 FINANCIAL RESULTS Profitability Gross Profit ($US millions) Adjusted EBITDA¹ and Adjusted Net Income¹ (Loss) ($US millions) $15.7 $12.6 Q2-FY26 (23.2% margin) Q2-FY27 (21.9% margin) $3.4 ($0.7)($1.2) ($6.2) Q2-FY26 Q2-FY27 Adjusted EBITDA¹ Adjusted net income (loss)¹ Lower volume Gross profit and margin negatively impacted by lower absorption of fixed overhead due to lower volume and less favourable project mix Cost actions Costs being aligned with current volumes to protect H2 margins One-time transaction costs $14.9M of transaction-related costs drove the $15.1M net loss; excluded from adjusted results¹ ¹ Non-IFRS measure – see Non-IFRS and Supplementary Financial Measures in the Appendix of this presentation. 9
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Q2-FY2027 Investor Presentation – October 8, 2026 FINANCIAL RESULTS Cash Flow and Financial Position Cash Flow from Operating Activities ($US millions) Financial Position as at August 31, 2026 ($US millions) ($17.1) ($14.9) Q2-FY26 Q2-FY27 $28.2 $39.4 $5.5 Cash and cash equivalents Bank indebtedness Long-term debt NET DEBT $16.7M $44.9M1 debt less $28.2M cash and cash equivalents 10 CASH AND CASH EQUIVALENTS $28.2M plus an $80M facility to June 2031 $2.3 $3.2Current Portion Long-Term 1 Debt = Bank indebtedness and Long-Term Debt Total Global Liquidity $95.8M Comprised of availability on credit facilities, cash on hand and short-term investments
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Q2-FY2027 Investor Presentation – October 8, 2026 SUMMARY In Summary 01 Favourable long-term fundamentals Positive momentum in nuclear; second-half focus on growing bookings and optimizing costs 02 Focused initiatives for profitable growth Building a more efficient, competitive and faster-growing Velan. 03 Confident in our long-term outlook $262.5M backlog, 76.2% deliverable in the next 12 months, and a pipeline of large core-market opportunities 11 BACKLOG $262.5M 76.2% deliverable in the next 12 months
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Thank you for attending our Q2-FY2027 Financial Results Investor Call. We are happy to answer any questions. velan.com | facebook.com/velan @VelanInc | linkedin.com/VelanInc
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Q2-FY2027 Investor Presentation – October 8, 2026 APPENDIX Additional Information 13
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Q2-FY2027 Investor Presentation – October 8, 2026 APPENDIX Non-IFRS and Supplementary Financial Measures Non-IFRS measures The term “Adjusted net income (loss)” is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for costs related to restructuring and to the proposed transaction. The terms “Adjusted net income (loss) per share” is obtained by dividing Adjusted net income (loss) by the total amount of subordinate and multiple voting shares. The forward-looking statements contained in this MD&A are expressly qualified by this cautionary statement. The term “EBITDA” is defined as adjusted net income plus depreciation of property, plant & equipment, plus amortization of intangible assets, plus net finance costs, plus income tax provision. The term “Adjusted EBITDA” is defined as EBITDA plus adjustment for costs related to restructuring and to the proposed transaction. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Supplementary financial measures The term “Net new orders” or “bookings” is defined as firm orders, net of cancellations, recorded by the Company during a period. Bookings are impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the Company’s sales operation performance for a given period, as well as well as an expectation of future sales and cash flows to be achieved on these orders. The term “backlog” is defined as the buildup of all outstanding bookings to be delivered by the Company. The Company’s backlog is impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the future operational challenges of the Company as well as an expectation of future sales and cash flows to be achieved on these orders. Certain totals may not add up due to rounding. 14