Nanoco Group Plc · LSE:NANO
Nanoco — Needham 20th Annual Growth Conference 2018
36 slides from Nanoco's conference presentation, Jan 18, 2018
Slide 1: Needham 20th Annual Growth Conference
NEEDHAM 20TH ANNUAL GROWTH CONFERENCE TICKER: NANO.L 18th January 2018
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: Company Overview
COMPANY OVERVIEW • Pioneer and world leader in the development and production of cadmium-free Display quantum dots (CFQDs) • Scalable "platform technology" with multiple markets and product applications • Extensive patent portfolio, c.600 patents granted / pending • Large addressable markets • Main
Slide 4: 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 • Can be tuned to light beyond visible light into the Infra-red or ultra- violet parts of
Slide 5: Display
(oo DISPLAY
Slide 6: Growing Display Market Opportunity
GROWING DISPLAY MARKET OPPORTUNITY • Benefits of CFQDs o Enables Wide Color Gamut (WCG) displays for 4K, UHD, HDR, gaming, streaming, photos o Integrated into existing LCD technology o Consistent and accurate colours across product range o Improved peak brightness and contrast o Lightning fast respo
Slide 7: Multi-Channel Strategy to Display Success
MULTI-CHANNEL STRATEGY TO DISPLAY SUCCESS Nanoco Non-exclusive Licensees • Licence fee, royalties on • Revenue from Runcorn • Royalty on Dow sales sales of Merck produced produced CFQD resin + • South Korean factory product royalty producing & selling • Merck buying Runcorn • Focus on Chinese and co
Slide 8: Expanding Capacity to Meet Forecast Demand
EXPANDING CAPACITY TO MEET FORECAST DEMAND • Runcorn ready to fulfil commercial orders • 10x increase in capacity through innovative technology improvements; cost reduced significantly • Enables rapid transition for new materials from lab to production • Awarded ISO 9001 certification in December 20
Slide 9: Display Commercialization
DISPLAY COMMERCIALIZATION • AUO showed line of next generation 8k and 4k TVs equipped with Nanoco CFQD Fine Colour Film at Touch Taiwan • Film produced from CFQD’s produced by Nanoco in the UK and coated onto film by Wah Hong in Taiwan 65” CFQD 4K TV 85” CFQD 8K TV 75” CFQD 4K TV 8
Slide 10: Continuous Innovation Critical to Success
CONTINUOUS INNOVATION CRITICAL TO SUCCESS Nanoco has led the development of CFQD technology with rapid improvements in quality, performance and yield Diminished R&D resource needs to be reinstated to keep up and stay ahead of competition and deliver improved technology • Continuous • QD enabled • EL
Slide 11: Other Markets
OTHER MARKETS
Slide 12: Horticultural Lighting
HORTICULTURAL LIGHTING • Focus on horticultural and photodynamic therapy • Tune light to match the ideal growing conditions for plants • Nanoco lights won CES 2017 Innovation Award • Commercial Supply and License Agreement with the Sports Turf Research Institute Horticultural lighting to enhance see
Slide 13: Medical Device / Lighting
NANOCO* Pain Relief & Recovery
Slide 14: Nanoco Life Sciences – Rapid Progress
NANOCO LIFE SCIENCES – RAPID PROGRESS • Focus on in vivo imaging, diagnostic and targeted therapy of In vivo cancer photoluminescence images of the 650 • Partnership in place with University College London, University emissive VivodotsTM of Manchester and University of Nottingham nanoparticles follo
Slide 15: 2D / Nano-Materials
2D / NANO-MATERIALS • Nano material development is a core competency of Nanoco o Complex particle design and development o Scale up o Manufacturing • 2D material development programme o Partnership between Nanoco and University of Manchester, National Graphene Institute o Collaboration between Nobel
Slide 16: Financial Review
FINANCIAL REVIEW
Slide 17: Business Model
BUSINESS MODEL Licence fees Royalties Sources of revenue Joint development and Sale of materials grant income 16
Slide 18: Financial Highlights (31st July 2017)
FINANCIAL HIGHLIGHTS (31ST JULY 2017) 2017 2016 Movement £m £m £m Revenue and other income 1.6 0.8 0.8 Billings 1.1 1.9 (0.8) R & D investment (5.5) (6.0) 0.5 LBITDA (9.7) (11.5 1.8 Loss after tax (9.1) (10.6) 1.5 Cash and short term deposits 5.7 14.5 (8.8) R &D tax credit 1.8 2.0 (0.2) Deferred rev
Slide 19: Summary
SUMMARY
Slide 20: Summary
SUMMARY • Platform technology with multiple, large addressable markets • Extensive and growing patent portfolio • Efficient mass production process with own manufacturing capability established and scaled • Display – first commercial market o Hybrid commercial model established with multiple routes
Slide 21: Questions & Q&A
NANOCO GROUP PLCe® QUESTIONS Q&A
Slide 22: Appendices
APPENDICES
Slide 23: 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 24: 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 25: What People Are Saying About QD Displays
WHAT PEOPLE ARE SAYING ABOUT QD DISPLAYS “A TV screen that is jaw-droppingly good” “TVs are entering a new era in 2017” - The Independent - Trusted Reviews “May be the holy grail “CF791’s pitch-perfect colors change the of gaming displays” game for ultrawides” - Forbes - Monitornerds.com Digital Tre
Slide 26: Cadmium-Free to Dominate Rapidly Growing Market
CADMIUM-FREE TO DOMINATE RAPIDLY GROWING MARKET 25
Slide 27: LCD TV Market Share 2016
LCD TV MARKET SHARE 2016 Samsung 22% Others 27% LG Changhong 12% 3% Haier 3% Vizio 4% TCL TPV 9% Source: Statista 4% Skyworth 5% Hisense Sony 6% 6% 26
Slide 28: RoHS Update
RoHS UPDATE • The European Commission (EC) has completed a lengthy review of the use of cadmium-based quantum dots in displays and LED lighting, following the rejection by the European Parliament in 2015 of their previous proposal to extend their use • The report from their consultants (Oeko-Institu
Slide 29: Leadership
LEADERSHIP 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 University of
Slide 30: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME 2017 2016 £’000 £’000 Revenue 1,326 474 Cost of sales (257) (177) Gross profit 1,069 297 Other operating income 281 284 Operating expenses Research and development expenses (5,508) (5,995) Administrative expenses (6,784) (7,367) Operating loss (10,942) (12,781) - be
Slide 31: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION 31 July 31 July 31 July 31 July 2017 2017 2016 2016 Group Company Group Company £’000 £’000 £’000 £’000 Assets Non-current assets Tangible fixed assets 865 - 1,260 — Intangible assets 2,619 - 2,423 — Investment in subsidiaries - 66,564 — 66,322 3,484 66,564 3,683 66,3
Slide 32: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION 31 July 31 July 31 July 31 July 2017 2017 2016 2016 Group Company Group Company £’000 £’000 £’000 £’000 Non-current liabilities Other payables - 450 — 450 Deferred revenue 552 - 648 — 552 450 648 450 Total liabilities 1,972 450 3,654 450 Net assets 10,447 118,741 18,7
Slide 33: Statement of Cash Flow
STATEMENT OF CASH FLOW 31 July 31 July 31 July 31 July 2017 2017 2016 2016 Group Company Group Company £’000 £’000 £’000 £’000 (Loss)/profit before tax (10,898) 30 (12,600) 167 Adjustments for: Net finance income (44) (30) (181) (167) Depreciation of tangible fixed assets 741 - 991 — Amortisation of
Slide 34: Statement of Cash Flow
STATEMENT OF CASH FLOW 31 July 31 July 31 July 31 July 2017 2017 2016 2016 Group Company Group Company £’000 £’000 £’000 £’000 Cash flow from investing activities Purchases of tangible fixed assets (374) - (189) — Purchases of intangible fixed assets (1,185) - (900) — Cash advance to subsidiary - (4
Slide 35: Shareholder Analysis (as at 16 November 2017)
SHAREHOLDER ANALYSIS (AS AT 16 NOVEMBER 2017) Name Shareholding Percentage Lombard Odier 57,191,058 20.00 Hargreaves Lansdown Asset Management 24, 973,401 8.73 Cogefi Gestion 21,859,271 7.64 Baillie Gifford & Co 18,051,750 6.31 Miton Asset Management 13,870,639 4.85 Dr Nigel Pickett (CTO) 11,112,347
Slide 36: 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 35
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