Slide 1: Preliminary Results Presentation
PRELIMINARY RESULTS PRESENTATION 13th October 2015
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: Preliminary Results Highlights
PRELIMINARY RESULTS HIGHLIGHTS • Substantial progress in the commercialisation of the company’s technology in the display industry in partnership with worldwide licensing partner The Dow Chemical Company (“Dow”) • Construction of Dow’s large-scale cadmium-free quantum dot manufacturing plant in Sout
Slide 4: Financial Highlights – Overview
FINANCIAL HIGHLIGHTS – OVERVIEW Year to Year to 31 July 2015 31 July 2014 £000 Change £000 Revenue 2,029 596 1,433 R&D Spend 5,580 662 4,918 EBITDA (8,077) (791) (7,286) Loss after tax (8,975) (1,164) (7,811) Cash & short term deposits 24,311 12,129 12,182 Net assets 29,100 12,207 16,893 Employees (
Slide 5: Nanoco Overview
NANOCO™: ° ©. 50° NANOCO
Slide 6: Company Overview
COMPANY OVERVIEW • A world leader in the development, manufacture and supply of fluorescent, heavy-metal-free semi-conducting materials called CFQD® quantum dots and other nano-particles (e.g. CIGS) • Nanoco has developed partnerships with leading global electronics and chemical companies in order t
Slide 7: Company Overview – Business Model
COMPANY OVERVIEW Business model Partnership License Revenue Material Sales Nanoco works in close collaboration License revenue from Nanoco’s licensee, Nanoco supplies materials to customers with companies developing quantum The Dow Chemical Company in the in the display (in coordination with dot bas
Slide 8: Nanoco's Patented Technology
NANOCO’S PATENTED TECHNOLOGY • Quantum dots are a platform technology • Unique “seeding process” developed enabling the mass production of quantum dots • World leader in heavy metal free quantum dot technology (CFQD® quantum dots) • Extensive & growing patent portfolio (ca. 360 patents and patent ap
Slide 9: Key Markets Are Large
KEY MARKETS ARE LARGE Application High CRI Biological imaging LCD backlighting Thin film solar LED lighting In-vivo & in-vitro diagnostic Technology Water soluble CFQD® quantum dots CFQD® quantum dots CFQD® quantum dots film CIGS nanomaterials Functionalized CFQD® CFQD® quantum dots resin quantum do
Slide 10: Value Creation
VALUE CREATION 1) CFQD® quantum 2) CFQD® quantum 3) CFQD® 4) CFQD ® dots dots + Resin quantum dots/Resin quantum dots in device product CORE BUSINESS CORE BUSINESS Developing & manufacturing Ensuring Nanoco’s CFQD® CFQD® quantum dots are Nanoco’s near term focus heavy-metal free quantum quantum dots
Slide 11: Key Partnerships / Route to Market
KEY PARTNERSHIPS / ROUTE TO MARKET Display Lighting Solar Life Sciences Key partners 11 display OEMs: • Korea: 2 USA Photo- • China: 4 therapy • Taiwan: 2 Company • Japan: 2 • USA: 1 Route to market Exclusive license Direct sales of CFQD UK Grant funded UK Grant funded with Dow for display materials
Slide 12: Display Business
DISPLAY BUSINESS 12
Slide 13: Display Market Trends Favour QDs
DISPLAY MARKET TRENDS FAVOUR QDs1,3 25m 471m 91.5m Units / year MAJOR DISPLAY TRENDS Units / year Units / year shipped of QD shipped of QD shipped of QD TVs in 20202 SMARTPHONES in TABLETS in • Rise of the 4K LCD TV 20202 20202 • OEMs losing interest in costly OLED TVs • Colour is the next battle-gr
Slide 14: Quantum Dots Explode Onto the Scene
QUANTUM DOTS EXPLODE ONTO THE SCENE • Quantum dot-based TVs from major manufacturers took centre stage at CES 2015 & IFA 2015 • Initial focus is on high end 4k LCD TVs • LG / Dow have announced that Dow will supply Nanoco licensed CFQD® quantum dots to LG • The directors believe that the company is
Slide 15: Clear Benefits for Our LCD Customers
CLEAR BENEFITS FOR OUR LCD CUSTOMERS Better Colour Gamut Energy Efficient Minimal Process Change • Much improved colour saturation • Narrow bandwidth = more light • Uses existing LCD manufacturing extraction through colour filters infrastructure • Improved colour enhancement over LCD similar to OL
Slide 16: CFQD Film on Back Light Unit
CFQD® FILM ON BACK LIGHT UNIT Red & Green CFQD® ready for processing into film CFQD® films assembled onto edge lit LCD backlight Finished 55 inch CFQD® films 16
Slide 17: The Dow Licensing Agreement
THE DOW LICENSING AGREEMENT • Dow and Nanoco signed a 15 year agreement in January 2013 whereby Dow has an exclusive global license to manufacture, market and sell Nanoco’s cadmium free quantum dot technology in the display industry • Dow’s electronic materials business gives Nanoco a significant ch
Slide 18: Dow Production
DOW PRODUCTION Dow’s Cheonan 3 Facility in Korea – cadmium free quantum dot manufacturing • The new Dow facility will enable mass production of cadmium free quantum dots to meet customers’ requirements and product launch • Capacity to support millions of large TVs • Commissioning in process; custome
Slide 19: Lighting Business
LIGHTING ° 5 50° NANOCO* 19
Slide 20: New Lighting Business
NEW LIGHTING BUSINESS • New Lighting business unit has been created • Nanoco will be selling directly to lighting OEMs • Initial sales starting to come in. Modest sales forecast for current year • Commercial partnerships in place $150m Application Advantages Areas Potential size for niche LED lighti
Slide 21: CFQD Lighting Products
CFQD® LIGHTING PRODUCTS High CRI, cool white panel light Orion lights high quality light for office & retail purposes used in plant growth 21
Slide 22: Lighting Value Chain
LIGHTING VALUE CHAIN 4 3 2 1 1. CFQD® quantum dots 2. CFQD® quantum dots resin 3. CFQD® quantum dots film 4. CFQD® quantum dots Linear Lighting 22
Slide 23: Other Applications
OTHER APPLICATIONS 23
Slide 24: Life Science Application
LIFE SCIENCE APPLICATION • Cancer imaging represents a significant opportunity for Nanoco • Proof of principle studies in conjunction with University College London have been successful and the work is ongoing • World leading team in the use of QDs in life science applications • The company is devel
Slide 25: CFQD at Work in Life Sciences
CFQD® AT WORK IN LIFE SCIENCES • Applications in cancer diagnostics, cancer imaging and bio sensing • Nanoco’s heavy metal-free CFQD® nanoparticles which can be tagged onto targeted cells • Advantages over fluorescent dyes include: – Photo-stable – High and broad light absorption, enabling intense i
Slide 26: Nanoco Thin Film Solar Progress
NANOCO THIN FILM SOLAR PROGRESS 16.70% 16% 14.20% 14% 12% 11.6% 9.7% 10% Efficiency 8% • Technology addresses a large and growing market for thin film solar technology 6% • Solar cells are based on Nanoco’s printable CIGS nano-particle ink • Produce a low cost printable solar cell with a world leadi
Slide 27: RoHS Update
RoHS UPDATE • On 20th May, European Parliament voted 618 to 33 to reject the Commission’s Directive to extend the ROHS exemption for cadmium QDs in display and lighting products, based on proven availability of cadmium-free alternatives and calling for swift action • The Commission response has been
Slide 28: Preliminary Financials
NANOCO™: PRELIMINARY .@) Doe 28
Slide 29: Financial Highlights – Overview
FINANCIAL HIGHLIGHTS – OVERVIEW Year to Year to 31 July 2015 31 July 2014 £000 Change £000 Revenue 2,029 596 1,433 R&D Spend 5,580 662 4,918 EBITDA (8,077) (791) (7,286) Loss after tax (8,975) (1,164) (7,811) Cash & short term deposits 24,311 12,129 12,182 Net assets 29,100 12,207 16,893 Employees (
Slide 30: Financial Highlights – Income Statement
FINANCIAL HIGHLIGHTS – INCOME STATEMENT Year to Year to 31 July 2015 31 July 2014 £000 Change £000 Revenue 2,029 596 1,433 Cost of sales (316) (12) (304) Gross profit/(loss) 1,713 584 1,129 Adjusted staff costs* (5,623) (1,089) (4,534) Adjusted overheads before depn / (4,167) (286) (3,881) amortn* A
Slide 31: Financial Highlights – Cash Flow
FINANCIAL HIGHLIGHTS – CASH FLOW Year to Year to 31 July 2015 31 July 2014 £000 Change £000 Adjusted EBITDA* (8,077) (791) (7,286) Costs of move to the main market (926) (926) - Working capital movement 256 524 (268) (Decrease)/increase in deferred (119) (126) 7 revenue Cash outflow from operations
Slide 32: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET Year to Year to 31 July 2015 31 July 2014 £000 Change £000 Tangible fixed assets 2,062 (721) 2,783 Intangibles (patents) 1,821 264 1,557 Cash & short term 24,311 12,129 12,182 deposits Other current assets 1,110 343 767 R&D tax debtor 1,800 590 1,210 Liabilities
Slide 33: Conclusion
CONCLUSION °) i‘) 33
Slide 34: Conclusion
CONCLUSION • Developed key "platform technology" with multiple markets and product applications in major growth markets • Extensive and growing patent portfolio • Key partnerships and routes to markets established • Dow licence in Display is a major endorsement • Lighting business unit is in place a
Slide 35: Appendices
APPENDICES °) i‘) 35
Slide 36: The Board
THE BOARD Anthony Clinch – Non Executive Chairman • 20 years private equity experience with CVC Capital Partners, Rolls Royce, experienced industrialist and financier Michael Edelman – CEO • Led spin-out of Nanoco from University of Manchester • GE / Bayer JV, founded www.yet2.com Europe, commercial
Slide 37: Potential for Large Volume of CFQD
POTENTIAL FOR LARGE VOLUME OF CFQD® LCD Display Volumes CAGR 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Mil units Mil units Mil units Mil units Mil units Mil units Mil units Mil units Mil units Mil units Mil units Mil units Smart Phone 5.3% 707 971 994 1,020 1,046 1,072 1,100 1,128
Slide 38: History Timeline
History Timeline stream or mile stone met First success Revenue Raised £10m Move to main production of 1kg TSB grant of Dow milestone through share market, raised of green quantum £308k received payment received placing £20m dots June 2014 September 2014 October 2013 May 2015 September 2011 R&D / bu
Slide 39: Risk Factors
RISK FACTORS • Technical milestones: customers’ requirements are challenging and may take more time and resource to be achieved and may not be achieved at all • Costs: manufacturing costs could be higher than anticipated • Timing: it may take longer for Nanoco’s technology to be adopted • Intellectu
Slide 40: Nanoco Group PLC
Nanoco Group PLC 46 Grafton Street, Manchester, M13 9NT, United Kingdom, Tel: +44 161 603 7900, Fax: +44 161 603 7901 Mail: info@nanocotechnologies.com www.nanocogroup.com 40