Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION HALF YEAR ENDED 31 JANUARY 2019
Slide 2: Disclaimer
DISCLAIMER The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation doe
Slide 3: Highlights – Significant Progress
HIGHLIGHTS – SIGNIFICANT PROGRESS Operational highlights – hit all key milestones Final milestones Major extension Runcorn facility CFQD® Quantum completed under agreed with expansion complete, Dots performance original agreements US Customer commissioning and significantly with US Customer until 31
Slide 4: Electronics
NANOCO’: GROUP PLC? ELECTRONICS
Slide 5: Commercial Progress
COMMERCIAL PROGRESS • Proprietary platform technology - design, develop, and scale-up of nano-materials Unique • Exploiting the performance characteristics of the materials • Major re-allocation of resources to focus on near term revenue opportunities Resources • Exploiting the wide range of potenti
Slide 6: Nano Materials Focus
NANO MATERIALS FOCUS Products: CFQD® quantum dots IR quantum dots 2D Materials • Display • Drones • Catalysis Industry: • Lighting • Consumer electronics • Display • Life sciences • Automotive • Sensing Nanoco tunes the absorption and emission of our quantum dots to match specific applications 2019
Slide 7: Deep and Strengthening Relationship with US Strategic Customer
DEEP AND STRENGTHENING RELATIONSHIP WITH US STRATEGIC CUSTOMER February 18 – Material Development and Supply Agreement signed with US Company March 18 – Runcorn nano-materials manufacturing expansion commences April 18 – 2nd Contract signed with US Company May 18 – Milestone achieved with associated
Slide 8: Understanding the US Customer Contracts
UNDERSTANDING THE US CUSTOMER CONTRACTS FIRST AGREEMENT Contract 1 (~£8.0m cash) Contract 10 months1 (~£8.0m cash) 2018 to December 10 monthsoftoRuncorn Delivery December 2018 facility + three technical milestones Delivery of Runcorn facility + three technical milestones Extension 1 (~£8.0m cash) 12
Slide 9: Display
NANOCO’: GROUP PLC? DISPLAY
Slide 10: Evolving Display Strategy
EVOLVING DISPLAY STRATEGY • Nanoco manufacturing and supplying smaller quantities to market and licensees • DuPont (formerly Dow) focused on large volume opportunities • Nanoco working closely with DuPont, Merck and developing potential new partnerships Supply Supply Nanoco Runcorn Production Supply
Slide 11: QD Display Technology Roadmap Evolving
QD DISPLAY TECHNOLOGY ROADMAP EVOLVING • Rapid improvements in CFQD® quantum dot quality, performance, yield • New generation QD enabled displays being developed such as hybrid QD-OLED and QD-micro LED • New integrators entering the market with QD inks, photo-resists and film • QD-OLED • EL QD • QD
Slide 12: Lighting & Life Sciences
NANOCO’: GROUP PLC? LIGHTING & LIFE SCIENCES
Slide 13: Other Markets
OTHER MARKETS Horticultural Lighting • Market forecast growth from $3.8bn in 2017 to $17.0bn in 2027* • Partly driven by advent of high intensity vertical farming • QDs deliver precise spectrum light triggering: Flowering, Growth and Reproduction Photo-Dynamic Therapy • Nanoco customer, ‘CareWear’,
Slide 14: Financial Review
NANOCO’: GROUP PLC? FINANCIAL REVIEW
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS Billings • Billings and revenue vastly increased on H1 FY18 & • Reflects successful delivery of services and milestones to the US Customer Revenue • Expect continuing healthy billings in H2 FY19 with no contingent revenue • Pivoted production team to support US Customer while re
Slide 16: Income Statement
INCOME STATEMENT H1 19 H1 18 Change £m £m £m Revenue and other income 3.2 0.2 +3.0 Cost of sales (0.5) (0.1) (0.4) Gross profit 2.7 0.1 +2.6 R&D investment (1.6) (1.9) +0.3 Other administrative expenses (3.7) (2.5) (1.2) Loss Before Interest, Depreciation & Amortisation (2.6) (4.3) +1.7 Depreciation
Slide 17: Revenue and Billings in H1 FY19
REVENUE AND BILLINGS IN H1 FY19 £m Revenue £m Billings £3.2m* £4.2m 3.5 4.5 0.1 0.1 0.1 0.2 4.0 3.0 3.5 2.5 3.0 2.0 2.5 4.0 2.0 1.5 2.9 1.5 1.0 1.0 £0.1m £0.2m* 0.5 0.5 0.0 0.0 2019 2018 2019 2018 Electronics Display Other Electronics Display Other * excludes grants disclosed as other operating inco
Slide 18: Movement in Net Loss in H1 FY19
MOVEMENT IN NET LOSS IN H1 FY19 £m 4.5 4.0 3.5 3.0 3.0 2.5 4.2 2.0 1.2 1.5 0.4 0.3 2.5 1.0 0.5 0.0 H1 FY18 Net revenue CoS R&D Overheads H1 FY19 • Revenue growth drops strongly to the bottom line reflecting attractive GM% on services • Cost base grew to service US Customer – annualised costs still £
Slide 19: Movement in Cash H1-19
MOVEMENT IN CASH H1-19 £m 12.0 10.0 2.5 1.0 0.9 8.0 2.3 0.2 6.0 10.7 4.0 6.2 2.0 0.0 31-Jul-18 LBITDA Mvmt in DI Working capital Capex Other 31-Jan-19 • Cash flow to December 2019 expected to be broadly neutral • Cash inflows from US Customer contract extensions and R&D tax credits • Completion of R
Slide 20: Financial Summary
FINANCIAL SUMMARY Guidance • Contracted orders fully underpin the Board’s expectations for the full year Improved visibility • Improved visibility over a lengthening time frame Cash • Cash flow broadly neutral through to December 2019 2019 Interim Results 19
Slide 21: Summary
NANOCO’: GROUP PLC? SUMMARY
Slide 22: Summary
SUMMARY The Leader in Nano- Materials Technology Platform Technology Highly Experienced Addressing Diverse, Management and Large, and Rapidly Technical Team Growing Market Opportunities Strong Customer Volume Production Traction Large and Defensible Intellectual Property Portfolio (~730 Patents) 201
Slide 23: Q&A
NANOCO*: GROUP PLCe® Q&A 2019 Interim Results
Slide 24: About Nanoco
NANOCO’: GROUP PLC? ABOUT NANOCO
Slide 25: Nanoco Overview
NANOCO OVERVIEW Nano-materials pioneer Platform technology IP Leader c. 730 patents and patent applications 94 Employees 38 PhDs 11 Nationalities Global footprint HQ / R&D Manchester, UK Manufacturing Runcorn, UK FTSE: NANO.L 4 Major industries served 3 Major licensee 1 Major Supply Agreement 2019 I
Slide 26: Core Attributes
CORE ATTRIBUTES INNOVATION • Volume production • Cadmium free QD pioneer • Infrared quantum dots • Next generation 2D materials • c. 730 patents and applications Materials Process Surface chemistry Devices PARTNERSHIP • Licensees USA CORP • Customers • Technology • Universities LARGE MARKETS • Platf
Slide 27: Large & Growing Addressable Markets
LARGE & GROWING ADDRESSABLE MARKETS Electronics Display Lighting Biomedical Biological imaging Horticulture Application Infrared Sensing LCD backlighting Lighting In-vivo & in-vitro diagnostic Water soluble CFQD® quantum dots CFQD® Infrared Quantum CFQD® QD’s Technology CFQD® quantum dots quantum do
Slide 28: Leadership Team
LEADERSHIP TEAM Dr Christopher Richards • CEO, Non-Executive chairman, Arysta LifeSciences Non-Executive Chairman • 20 years of increasing management roles at Syngenta • Executive chairman of Plant Health Care • NED of Origin Enterprises plc Dr Michael Edelman • Led spin-out of Nanoco from Universit
Slide 29: Shareholder Analysis (as at 31 January 2019)
SHAREHOLDER ANALYSIS (AS AT 31 JANUARY 2019) Name Shareholding Percentage Lombard Odier 61,859,360 21.62% Hargreaves Lansdown Asset Management 24,249,739 8.48% M&G Investment Management 20,498,689 7.17% Baillie Gifford & Co 15,531,589 5.43% Miton Asset Management 15,036,025 5.26% Dr Nigel Pickett (C
Slide 30: Appendices
NANOCO’: GROUP PLC? APPENDICES
Slide 31: What is a Quantum Dot?
WHAT IS A QUANTUM DOT? • Tiny particles of a fluorescent semiconductor material • 1 to 10 nanometers in diameter • Size of the quantum dot determines the spectrum of light emitted • Smaller = blue; larger = red • Quantum dots can also be tuned to light beyond visible light into the Infra-red or ultr
Slide 32: Breakdown of a QD LCD Display
BREAKDOWN OF A QD LCD DISPLAY Film CFQD Quantum Dot (BLU) Back Light Unit Optical Films Pure White light LCD Panel LCD Filter Blue / White light Luminance Luminance Wavelength Wavelength Emits light – Light energises Quantum dots LCD panel creates the Each pixel / shutter is paired much more blue th
Slide 33: Benefits of CFQD Quantum Dot Film
BENEFITS OF CFQD® QUANTUM DOT FILM QD manufacture Resin Film Film stack Panel Display Better Colour Gamut Energy Efficient Minimal Process Much improved colour saturation Narrow bandwidth = more light Change Uses existing LCD extraction through colour filters manufacturing infrastructure Imp
Slide 34: Nanoco Group PLC contact details
Nanoco Group PLC 46 Grafton Street, Manchester, M13 9NT, United Kingdom, Tel: +44 161 603 7900 | Fax: +44 161 603 7901 info@nanocotechnologies.com www.nanocogroup.com 2019 Interim Results