Nanoco Group Plc · LSE:NANO
Nanoco — H1 2021 Earnings Presentation
24 slides from Nanoco's earnings presentation, 2021
Slide 1: Interim results presentation
Interim results presentation For the period ended 31 January 2021
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
HIGHLIGHTS Operational highlights Multiple active Litigation All sensing JDA Innovate UK grant won commercial trial set for targets delivered and in delivery negotiations October 2021 Financial highlights Restructuring and cost Savings largely Cash runway maintained Earned JDA savings of £1.6m in th
Slide 4: Capabilities and cost base
CAPABILITIES AND COST BASE R&D capabilities Production revenue capacity R&D PRODUCTION Manchester Runcorn Sensing Display Life Sciences Sensing Display JDA work JDA work Grant work >£100m p.a. >£30m p.a. • Paid work underway in all 3 areas • Process gains in both plants in FY20 • Potential for mediu
Slide 5: Potential sources of value
POTENTIAL SOURCES OF VALUE Sensing IP (organic services and products) Litigation CFQD Licensing Display Life (organic Sciences services and (Pathogen products) detection) 5 Interim Results 2021
Slide 6: IR sensing opportunities
IR SENSING OPPORTUNITIES The Opportunity Rapid growth in a number of very large sectors Growth in applications that are hungry for sensors Silicon sensors have poor infrared range and efficiency Nanoco materials are a ‘value add’ component in sensors Why Quantum Dots Expand detection range
Slide 7: Display opportunities
DISPLAY OPPORTUNITIES The Opportunity Film based systems seeing broader adoption though still small Momentum building in Gen 2 supply chains (QD-OLED) QD-OLED utilises 5x – 10x more quantum dots than QD film Current opportunities include potential for meaningful revenue Why Quantum Dots Wi
Slide 8: Adjacent applications
ADJACENT APPLICATIONS QD platform technology has adjacent applications with low cost to transfer Nanoco Life Sciences Lighting (including horticultural) Versatile platform technology Non-toxic and strong safety profile Exceptional spectral properties enable: Pinpoint detection (tumour demarc
Slide 9: Samsung litigation - timeline
SAMSUNG LITIGATION - TIMELINE Trial Process 26 Mar 21 Apr – Sep 21 Oct 21 Nov 21 onwards Markman Trial Judge’s formal opinion, decision on (Claim construction hearing) Final discovery, expert reports and Delivers verdict and, if win, future royalty, Appeals Judge’s view on key terms other process ma
Slide 10: Samsung litigation
SAMSUNG LITIGATION Multiple claims under each patent – relating to Nanoco's unique QD capabilities Samsung estimated US sales of 14 million TVs by 2021 using Nanoco technology Litigation focuses on US sales (largest market), approximately one third of global sales Trial specifically consider
Slide 11: Financial review
NANOCO:: GROUP PLC e® FINANCIAL REVIEW
Slide 12: Financial highlights
FINANCIAL HIGHLIGHTS Adjusted LBITDA increased by 36% despite a 66% fall in revenue Operating Fall in revenue largely offset by cost reductions loss Maintained R&D, scale up and production capabilities Head count reduced to c. 40 FTE’s compared to c. 95 FTE’s in 2018 Costs Cost base reduce
Slide 13: Income statement
INCOME STATEMENT HY21 HY20 Change £m £m £m Revenue and other operating income 1.1 2.9 (1.8) Cost of sales (0.1) 0.0 (0.1) Gross profit 1.0 2.9 (1.9) R&D investment (1.2) (1.7) (0.5) Other administrative expenses (1.3) (2.3) (1.0) Adjusted LBITDA (1.5) (1.1) +0.4 Share based payments & Exceptional it
Slide 14: Revenue and billings
REVENUE AND BILLINGS £m Revenue £m Billings 3.0 0.1 1.4 0.1 0.3 2.5 1.2 1.0 2.0 0.8 1.5 0.1 1.2 2.5 0.6 0.1 0.1 0.1 1.0 0.4 0.4 0.5 0.9 0.2 0.0 0.0 2021 2020 2021 2020 Sensing Display Other Sensing Display Other Sensing revenue HY21 mainly one large sensing customer PY billings inflated by US Cu
Slide 15: Movement in net loss
MOVEMENT IN NET LOSS £m 4.0 0.1 0.5 3.5 3.0 1.8 1.0 2.5 2.0 1.5 2.3 1.0 1.9 0.5 0.0 HY20 Net revenue CoS R&D Admin costs HY21 Impact of lower revenue £1.8m Cost reductions, temporary salary cuts and government support reduced R&D and admin costs by £1.6m Monthly cash burn now c.£0.4m before re
Slide 16: Movement in cash
MOVEMENT IN CASH £m 6.0 5.0 1.5 4.0 0.6 3.0 0.5 5.2 0.4 0.9 0.2 2.0 2.9 1.0 0.0 FY20 Adj LBITDA Deferred income Working capital Operating leases Capex R&D tax credit HY21 The business consumed £2.3m of cash in the period Adverse working capital (creditor unwind - lower activity levels) and movem
Slide 17: Financial summary
FINANCIAL SUMMARY Contracted orders for H2 amount to c. £0.4m Guidance Potential upside from current active negotiations Further opportunities continue to be pursued in both sensing and display Our whole team is highly flexible to service different customers and applications Capability Ret
Slide 18: Summary
NANOCO:: GROUP PLC e® SUMMARY
Slide 19: Summary
SUMMARY Strong macro-growth in our target markets Opportunity We retain R&D and scale up skills, and significant production capacity Active opportunities under discussion in both sensing and display Cost base significantly reduced and being carefully managed Cash runway Monthly cash costs
Slide 20: Questions
NANOCO:: GROUP PLC e® QUESTIONS
Slide 21: Appendices
NANOCO:: GROUP PLC e® APPENDICES
Slide 22: Balance sheet
BALANCE SHEET HY21 HY20 Change £m £m £m PPE & ROU Assets 0.6 1.1 (0.5) Intangible Assets 3.4 3.9 (0.5) Non Current Assets 4.0 5.0 (1.0) Inventories 0.2 0.1 0.1 Trade and other receivables 1.0 1.4 (0.4) Cash and cash equivalents 2.9 4.2 (1.3) Current Assets 4.1 5.7 (1.6) Trade and other payables (1.1
Slide 23: Board members
BOARD MEMBERS Dr Christopher Richards • CEO, Non-Executive chairman, Arysta LifeSciences Non-Executive Chairman • 20 years of increasing management roles at Syngenta • CEO of Plant Health Care plc (AIM: PHC) and NED of Origin Enterprises plc (AIM: OGN) Brian Tenner • Experienced Quoted Company CFO w
Slide 24: 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 24