Nanoco Group Plc · LSE:NANO
Nanoco — H1 2020 Earnings Presentation
26 slides from Nanoco's earnings presentation, April 2020
Slide 1: Interim results presentation
Interim results presentation For the six months ended 31 January 2020
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: Summary
SUMMARY Operational Runcorn facility All milestones Lawsuit filed increasing New IRQD POs completed for against capacity and received US Customer Samsung reducing cost Financial Period end Revenue in line monthly cash with Loss reduced by Cash runway burn £0.7m, expectations ~50%* to £1.1m extended
Slide 4: Priorities
PRIORITIES 1 Preserve cash Suspended all longer term development efforts Reduced monthly cost base to c. £400k Retained core operational capability to respond to future demand 2 Focus all operational activities on delivering near term revenue Ramping IRQD sales Negotiating IRQD sensor deve
Slide 5: COVID-19 Operations
COVID-19 OPERATIONS Protecting staff while continuing to service customers Two thirds of staff have been furloughed under UK Government scheme Safety focused lab operations on behalf of customers are being maintained: Social distancing enabled in labs and offices Increased use of PPE – much
Slide 6: IRQD Sensor Opportunity
IRQD SENSOR OPPORTUNITY US Customer contract ended 31 Dec. 20 All milestones delivered and paid for All exclusivity dropped away Busy working with key industry players IRQD Technology is highly relevant Facial recognition (front facing) Augmented reality (world facing) Autonomous vehicles
Slide 7: CFQD Display
CFQD DISPLAY Next generation CFQD for Improved red and green OLED-QD Hybrid system CFQD for LCD display film • Currently being trialled by • China, Japan, Korea and leading OEM’s in Kr and Taiwan focus CH Merck license up for renewal • Current license expires 30 June 2020 Interim Results 7
Slide 8: CFQD Volume Growth in Display
CFQD VOLUME GROWTH IN DISPLAY QD film technology introduced to Why Quantum Dots? mid-range TVs (sub $1,000 price) Improved colour saturation relative to LCD Will result in higher volumes Narrow bandwidth allows for more light extraction Nanoco pioneered the technology through color filters
Slide 9: Defending Our Extensive IP Portfolio
DEFENDING OUR EXTENSIVE IP PORTFOLIO Nanoco has one of the largest quantum dot IP portfolios with >750 patents and patents pending spanning geographies and market applications Issued Patents Key Patented Technologies and Applications Electrolumin- 2D escence (EL) Materials US: Fundamental Nanoco t
Slide 10: Samsung Litigation
SAMSUNG LITIGATION Aggressively defending Nanoco’s Intellectual Property to secure value for all stakeholders Retained IP litigation specialists ‘Mintz, Levin’ and strategic IP group, ‘Epicenter’ Filed patent infringement complaint, Eastern District of Texas, 14 February, 2020 Various Samsung
Slide 11: Financial Review
NANOCO:: GROUP PLC e® FINANCIAL REVEW
Slide 12: Financial Overview
FINANCIAL OVERVIEW Billings £1.3m - down on H1 FY19 following completion of US contract Billings & Revenue Revenue and other operating income £2.9m – 10% down on H1 FY19 Post period end, new orders and billings for sensing and display customers Cost base cut to £0.7m per month – 12.5% reduct
Slide 13: Income Statement
INCOME STATEMENT H1 20 H1 19 Change £m £m £m Revenue and other operating income 2.9 3.2 (0.3) Cost of sales (0.0) (0.5) +0.5 Gross profit 2.9 2.7 +0.2 R&D investment (1.7) (1.6) (0.1) Other administrative expenses (2.3) (3.7) +1.4 Exceptional items and share based payments (0.3) - (0.3) Loss Before
Slide 14: Revenue and Billings
REVENUE AND BILLINGS £m Revenue £m Billings 3.5 0.1 4.5 0.1 0.2 0.1 3.0 0.1 4.0 0.3 3.5 2.5 3.0 2.0 2.5 4.0 2.9 2.0 1.5 2.5 0.1 1.5 1.0 1.0 1.2 0.5 0.5 0.0 0.0 2020 2019 2020 2019 Electronics Display Other Electronics Display Other Electronics revenues driven by US Customer Large FY19 billings t
Slide 15: Movement in Net Loss
MOVEMENT IN NET LOSS £m 3.0 0.3 0.4 2.5 0.4 2.0 0.2 0.6 0.3 1.5 2.5 1.0 1.9 0.5 0.0 H1 19 Net revenue CoS Employee Other admin Runcorn Exceptionals H1 20 costs depc'n Improvement in loss position driven by significant reduction in most cost categories Cost of Sales fell with no repeat of Runcorn
Slide 16: Movement in Cash
MOVEMENT IN CASH £m 7.0 1.1 6.0 1.4 5.0 0.2 4.0 0.8 1.1 7.0 0.4 0.4 3.0 4.2 2.0 1.0 0.0 FY19 Adj LBITDA Deferred Working Provisions IFRS16 leases Capex R&D tax H1 20 income capital credit Adjusted LBITDA cut by 50% compared to H1 FY19 – includes benefit of change due to IFRS16 Changes in deferre
Slide 17: Financial Summary
FINANCIAL SUMMARY Withdrawing guidance except for cash, burn rate and runway Guidance Material new orders and agreements to be announced when won Working safely under Covid-19 restrictions to deliver customer orders Capability Protecting core assets, capabilities and significant installed re
Slide 18: Summary
NANOCO:: GROUP PLC e® SUMMARY
Slide 19: Summary: Preserving optionality to deliver maximum value
SUMMARY Preserve cash 1 Monthly cost base reduced to c. £400k Cash runway extended to Q2 2021, retaining stream-lined operational capability 2 Focus operations on near term revenue Customer operations continue safely under Covid-19 restrictions Advanced stage of negotiating IRQD sensor devel
Slide 20: Questions
NANOCO:: GROUP PLC e® QUESTIONS
Slide 21: Appendix
NANOCO:: GROUP PLC e® APPENDIX
Slide 22: Nanoco at a Glance
NANOCO AT A GLANCE Global leader in the R&D, licensing and manufacture of cadmium-free quantum dots and semiconductor nanomaterials Business Description Critical Technologies Status: Public (LON: NANO) Volume production Founded: 2001 Headquarters: Manchester, UK Cadmium-free QD pioneer Productio
Slide 23: Platform Technology
PLATFORM TECHNOLOGY Backed by leading IP portfolio of ~750 granted and pending patents Current Priorities Longer term Molecular Sensing Display Lighting Seeding CFQD Quantum Dot Grow Light for horticulture Unique molecular seeding Expanding the spectral lighting Superior displays with approach to ma
Slide 24: 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 25: Shareholder Analysis (As at April 2020)
Shareholder Analysis (As at 28 April 2020) Name Shareholding Percentage Lombard Odier Asset Management 66,700,015 23.50% Hargreaves Lansdown Asset Management 38,175,440 13.45% Mr Richard I Griffiths 36,983,341 13.03% Interactive Investor 16,695,439 5.88% Mr Nigel Pickett 11,074,119 3.90% Barclays We
Slide 26: 2020 Interim Results
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 2020 Interim Results 26