Baylin Technologies (BYL) Micro-Cap Virtual Conference summary

Strategic overview and recent developments

• Achieved record CAD 61 million backlog following the acquisition of Kaelus, reflecting strong growth and improved gross margins.

• Benefiting from secular tailwinds in wireless demand, defense spending, and custom antenna markets.

• Wireless infrastructure business now delivers over 60% gross margins, driven by differentiated, patented products.

• Expanded into Europe with major wins, including Deutsche Telekom and Vodafone, through innovative multibeam antenna technology.

• Acquisition of Kaelus adds product, customer, and geographic diversity, with zero overlap and strong relationships with Ericsson and Nokia.

Kaelus acquisition and integration

• Kaelus brings unique cell tower antenna technology, including patented beam-through solutions, and is one of only three global providers.

• Products include anti-jamming synchronization equipment, already proven in Ukraine and demonstrated to NATO organizations.

• Kaelus’s core RF conditioning and test/measurement businesses are stable and well-known, with strong cross-sell potential in North America.

• Acquisition structured with 62.5% cash and the remainder in shares, reflecting long-term confidence from Kaelus’s founder.

• Integration enables cross-selling opportunities and margin expansion, with a focus on customer and product diversification.

Financial position and outlook

• Balance sheet significantly strengthened: net debt at CAD 11 million, lowest in recent years, with convertible debentures and preferred equity largely converted.

• Backlog conversion varies by business; most will convert to revenue within the year, with some extending into next year.

• Revenue growth expected from cross-selling Kaelus products in North America and continued SATCOM expansion, especially in defense.

• Margin expansion and customer diversification are key strategic thrusts, with further improvements expected through 2027.

• Board is considering a reverse stock split in the future to enhance shareholder value, but only under the right conditions.