Safe Harbor Statement Corporate Overview August - 2025 (All figures in USD) NASDAQ : ELVA TSX : ELVA Forward-looking statements: This presentation contains forward-looking statements and forward looking information (collectively, "forward-looking statements"), including statements that relate to, among other things, the size of the Company's addressable market and target verticals and applications, margin performance capabilities of new target operating segments, future operating jurisdictions including pla ...

Core Points - Apple will invest an additional $100 billion in the United States, raising its total commitment to $600 billion over the next four years [3][4] - This investment includes a significant increase in spending on the domestic supply chain, with a new production facility for iPhone screen glass in Kentucky [3][4] - Apple previously announced plans to invest $430 billion and create 20,000 jobs in the U.S. [4] Investment Details - The new investment builds on Apple's earlier commitment of over $500 billion and the creation of 20,000 jobs, which was announced in February [4] - In 2021, Apple had already pledged to invest $430 billion in the U.S. [4] - Apple is on track to have American manufacturers produce 19 billion chips across 24 factories in 12 states this year [4] Manufacturing and Tariffs - President Trump emphasized the importance of bringing manufacturing back to the U.S., stating that iPhones sold in the U.S. should also be made domestically [5] - While many components will be manufactured in the U.S., complete assembly of iPhones will still occur overseas [5] - Trump plans to impose a "100%" tariff on imported semiconductors, but TSMC will be exempt due to its U.S. factories [8] Future Plans - Apple will assist in developing and manufacturing semiconductors and semiconductor equipment in Texas, Utah, Arizona, and New York [9] - The company reported a quarterly profit of $23.4 billion, exceeding forecasts despite facing higher costs from tariffs [9]

Core Points - Apple (AAPL.US) shares rose by 3.6%, reaching $210.29 [1] - The White House announced that Apple has committed to invest an additional $100 billion in domestic manufacturing in the U.S. [1] - This investment is aimed at increasing the production capacity of Apple’s flagship products, particularly the iPhone, to avoid punitive tariffs [1] - With this latest commitment, Apple’s total investment pledge has now reached $600 billion [1]

Financial Data and Key Metrics Changes - Sales in Q2 2025 were down 20% compared to the prior year, with first half sales down 3% overall [6][11] - U.S. sales decreased by 10% year-over-year, while all other markets experienced a 33% increase [6][12] - Adjusted EBITDA for the quarter was $2.3 million, down from $12.3 million in the same quarter last year, but up from a loss of $4.9 million in the first half of last year [21] - Adjusted diluted EPS was $0.03 per share in the quarter, unfavorable compared to $0.65 per share last year [21] Business Line Data and Key Metrics Changes - Worldwide toy and consumer business was down 23% in the quarter, while the costume business was down 12% [11][12] - International growth was led by Europe, which grew by 65% in the first half of the year [12][25] - The company is focusing on maintaining a lean inventory, with a decrease of 8% year-over-year in the U.S. while international inventory is higher [45][62] Market Data and Key Metrics Changes - The company has seen limited increases in consumer prices in the U.S., but there are concerns about reduced unit sales due to these price hikes [10][11] - Major U.S. customers are delaying traditional second half planogram resets, impacting the productivity of new product introductions [26] Company Strategy and Development Direction - The company is taking a proactive approach to its manufacturing strategy, diversifying supply chains to mitigate risks associated with tariffs [7][8] - There is a focus on cash generation and prudent inventory management, especially in the U.S. market [45][72] - The company is exploring acquisition opportunities and remains cautiously optimistic about future growth despite current economic uncertainties [24][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictability of the U.S. market due to ongoing tariff changes and is adapting strategies accordingly [5][6] - There is a cautious outlook for the second half of the year, with a focus on profitability and cash generation rather than aggressive sales targets [50][51] - The company is optimistic about the upcoming holiday season, particularly with new product launches and strong consumer interest in established franchises [27][31] Other Important Information - The Board has approved a $0.25 per share dividend for the third quarter [21] - The company completed refinancing its credit facility, providing a predictable source of funds at attractive borrowing rates [20] Q&A Session Summary Question: Short-term levers to mitigate tariff impacts - The company is implementing a duplicate tool initiative to allow flexibility in manufacturing locations to reduce tariff impacts [38] Question: Adjustments to the supply chain - The company is focusing on manufacturing certain products outside of China, particularly in Vietnam, while maintaining quality and efficiency [40][41] Question: Comments on full year 2025 outlook - The company is taking a cautious approach, focusing on sell-through rates and profitability rather than aggressive inventory builds [49][50] Question: Potential for empty shelves during the holiday period - Management believes retailers will focus on proven products and lower price points, with a wait-and-see approach during the Halloween period [54]

Core Viewpoint - Williams-Sonoma is adapting to the impacts of tariff hikes by exploring flexible sourcing options and increasing domestic manufacturing capabilities, despite facing challenges in gross margins and a slight decline in share price [1][2]. Group 1: Financial Performance - The company reported quarterly results that exceeded earnings and revenue expectations, although it missed analysts' gross margin estimates, leading to a 4.48% drop in share price [1]. - Management maintained guidance for the year, indicating resilience in absorbing incremental costs from tariffs [2]. Group 2: Manufacturing Strategy - Williams-Sonoma is focusing on increasing domestic manufacturing, with a significant portion of its upholstery being produced and assembled in the U.S. [2]. - The home improvement brand Rejuvenation is highlighted as a key part of the strategy to enhance domestic production, being the fastest-growing small brand within the company [2]. Group 3: Operational Efficiency - The company has demonstrated significant progress over the years, with a more than doubling of its operating margin from 2019 to the present, while guiding for flat operating margins this year despite tariff impacts [3][4]. - The strength of the company's operating model, multichannel platform, and sourcing structure is emphasized as a source of flexibility and effective vendor communication [3].

Financial Data and Key Metrics Changes - The company reported a revenue growth of 6.8% in Q1 2025, marking the second consecutive quarter of year-over-year revenue growth [4] - First quarter net sales reached $13.4 million, with OEM net sales increasing by 10.8% to $8.1 million, while DTC segment revenue declined by approximately 3.6% to $5 million [18] - Gross profit increased by 12.5% to $3.9 million, and gross margin improved by 500 basis points to 29.4% [19] - The net loss for the quarter was $6.8 million, with a diluted loss per share of $0.93, compared to a net loss of $10.4 million and a diluted loss per share of $1.55 in the prior year [19] - Adjusted EBITDA improved to a loss of $3.6 million from a loss of $5.2 million in the previous year [19] Business Line Data and Key Metrics Changes - The OEM channel showed strong growth with a 10.8% increase in net sales, driven by broader integration of solutions at the factory level [4] - The DTC segment faced challenges, reflecting macroeconomic pressures that led to a decline in net sales [4][18] Market Data and Key Metrics Changes - The company highlighted its competitive advantage due to growing US-based production capabilities, which are crucial amid the volatile tariff landscape [8] - The strategic position is further strengthened by a lithium supply agreement with Pioneer, enhancing the company's ability to localize critical mineral supply chains [10] Company Strategy and Development Direction - The company is focusing on long-term growth through the OEM channel while optimizing its product development and rollout efforts [5] - A corporate optimization program has been launched to prioritize near-term revenue-generating opportunities and operational improvements [5][6] - The company aims to transition select components to North American-based sourcing and expand its domestic footprint [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing market volatility while delivering high-quality energy storage solutions [19] - The company anticipates net sales of approximately $14.8 million in Q2 2025, representing year-over-year growth of 12% [19] - Management acknowledged the impact of tariffs on operations and emphasized the importance of cash flow and profitability for future growth [28][30] Other Important Information - The company has increased production capacity without additional headcount through enhanced automation and operational efficiencies [6][7] - The dual flow power pack for the heavy-duty trucking market is highlighted as a key product that addresses current market needs [5][14] Q&A Session Summary Question: Updates on dry electrode manufacturing technology commercialization - Management confirmed ongoing development and interest from commercial partners, but emphasized a focus on near-term revenue and profitability [24][25] Question: Thoughts on cash balance and EBITDA guidance - Management indicated confidence in cash balance post-preferred equity deal and emphasized investments in near-term revenue growth [27][28] Question: Follow-up on EBITDA expectations for Q2 - Management explained that continued investments in product development and the impact of tariffs influenced the EBITDA guidance for Q2 [30]