Nanoco Group Plc · LSE:NANO
Nanoco — H1 FY2024 Earnings Presentation
35 slides from Nanoco's earnings presentation, Mar 27, 2024
Slide 1: Interim results presentation
Interim results presentation GROUP e For the six months ended 31 January 2024 27 March 2024
Slide 2: Disclaimer
Disclaimer MANOCOS 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 presenta
Slide 3: Nanoco Team
Nanoco Team MANOCOS Brian Tenner, CEO e Joined Nanoco August 2018 as COO / CFO, appointed CEO in 2020 e 15 years UK public company board experience e Developed “dot only” strategy and Nanoco's current commercial relationships Liam Gray, CFO e Joined Nanoco March 2019 as Group FC, appointed CFO Novem
Slide 4: Introduction to Nanoco
NANOCO:: GROUP PLC e® INTRODUCTION TO NANOCO nterim Results FY24
Slide 5: Nanoco - who we are and what we do
Nanoco —- who we are and what we do cnour > °* Founded in 2001 by Dr Nigel Pickett (our CTO) and Professor Paul O’Brien - spin out from Manchester University ° Wearea materials science company ° Weare the leader in the R&D, scale up, manufacturing and licensing of high performing semiconductor nanop
Slide 6: UV energy
Core Shell • Surface ligands Blue Blue 2 nm Energy • UV energy (higher energy light Green Green (down converted) • or electricity) 5 nm • Red Red 10 nm • • UV: Ultraviolet Radiation VIS: Visible Radiation; Light IR: Infrared Radiation
Slide 7: Interim Results
NANOCO:: GROUP PLC e® INTERIM RESULTS nterim Results FY24
Slide 8: Highlights H1 FY24
Highlights H1 FY24 bxeNOCO: a » 4 » 4 » . > _ 4 a » 4 » 4 » . > _ 4
Slide 9: Markets and Opportunities Review
NANOCO:: GROUP PLC e® MARKETS AND OPPORTUNITIES REVIEW nterim Results FY24
Slide 10: Sensing - the market opportunities
Sensing - the market opportunities MANOCOS Camera and imager markets (within CIS) Revenue ($M) 2022 2028 Quality control Fog/smog FinTech Security * CIS market to reach $30bn by 2030 | ‘ ; * Multiple end use sensor applications » ° Needs break through adoption - QD CMOS sensors well positioned ADAS
Slide 11: Sensing - the case for quantum dots
Sensing — the case for quantum dots GROUP [ Silicon’s Problems [ QD Solutions } Increase efficiency to ~60+% Poor efficiency (~6-7%) Expand wavelength far into SWIR Tuned to sunlight “gaps” Needs less laser power QD CMOS price point for consumer Nanoco's Differentiation Vv Validated materials Vv IP
Slide 12: Sensing - product pipeline
Sensing - product pipeline MANOCOS “January 2024 By ell Legend (# = number of customers) Wavelength (<1.0 um) (1.0 -1.3 um) (1.3 -1.5 um) (>1.5 um) Material A B Cc A B Cc A A BC i) Development -— material at R&D scale 0} (2) Optimisation - application optimising Development ti) Scale Up-—scaling up
Slide 13: Display - the market opportunities
e ° e,e e Display - the market opportunities yen OCO fTVS mNon QD TVs mOtherQDTVs = Samsung QD TVs Mss of units Monitor mLaptop mTablet/Phablet = Other 800 350 700 600 500 400 300 200 j00 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 *
Slide 14: Display - the case for quantum dots
Display - the case for quantum dots MLYNOCO: [Clarity Sree tad i [Supply chain sg eso [Efficiency esas pe gy ec [Form factor sion ona cadena Nanoco's Differentiation Vv Cadmium free — usable in vivo Vv IP protected platform technology Vv Production ready red and green dots V High volume capacity alr
Slide 15: QD Display Technology Roadmap
QD Display Technology Roadmap MANOCOS Existing QD materials QD development required SS | —_ a 2 a peat on = a ee S.. ‘Glass LP Blue light EMITTED LIGHT ODTV™ sample material stack 4 | | | | | | | | } + T T 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ Conventional Film QD-OLED QD-yuLED QD-
Slide 16: IP Licensing
Interim Results FY24 NANOCO:: GROUP PLC e® IP LICENSING 16
Slide 17: Driving value from IP requires two fundamentals
Driving value from IP requires two fundamentals* MANOCOS *Ron Epstein, Epicentre Law Commanding IP Portfolio Valuable Addressable Market 27 March 2024 - Interim Results FY24 "7
Slide 18: 1st Fundamental - Commanding Patent Portfolio
1st Fundamental - Commanding Patent Portfolio NANOCO® Validated Patents Retained Patents Other Patents Patent Lives Samsung Licence 27 March 2024 Interim Results FY24 18
Slide 19: Non QD TVs Other QD TVs Samsung QD TVs
400 350 300 250 200 150 100 50 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Non QD TVs Other QD TVs Samsung QD TVs • • • •
Slide 20: Competitive IP moat
Competitive IP moat MANOCOS * Chart shows $ paid by Samsung for IP for cadmium free QDs in their TVs* ° Almost two thirds of external payments were to Nanoco * Opportunity for Nanoco to leverage Sa msu Ng validated IP for commercial advantage ° Work continues on IP licensing in support of commercial
Slide 21: Financial Review
NANOCO:: GROUP PLC e® FINANCIAL REVIEW nterim Results FY24
Slide 22: Financial highlights
Financial highlights yen OCO @ » 4 » 4 » w _ _ 4 @ » 4 » 4 » w _ _ 4
Slide 23: Income statement
Income statement MANOCOS e H1 FY24 H1 FY23 Change £m £m £m Revenue 4.0 1.6 +24 Cost of sales (0.5) (0.5) - Gross profit 3.5 11 +24 Other operating income 0.1 0.1 - R&D investment (0.8) (0.5) (0.3) Other administrative expenses (2.1) (1.8) (0.3) Adjusted EBITDA / (LBITDA) 0.7 (1.1) +18 Adjusting item
Slide 24: Adjusted EBITDA
Adjusted EBITDA MANOCOS £m 25 4 25 2.0 4 is 4 ; a : Op Profit D&A SBP's Hedge gain FX Adj EBITDA ° D&A and SBP in line with prior year * One off gain on hedge of litigation proceeds realised in February 2024 * Other FX gains relate to other trading balances at period end 27 March 2024 Interim Result
Slide 25: Movement in cash
Movement in cash MANOCOS £m 70.0 60.0 ox To" 03 50.0 40.0 30.0 20.0 0.0 FY 23 Litigation Withholding Adj EBITDA Working Operating Capex FX HI FY 24 proceeds tax capital leases ° Litigation proceeds (before hedge) £58.8m less Korean withholding tax (£2.6m) ° Working capital reflects prepayment by Sam
Slide 26: Anticipated use of cash H2 FY24
Anticipated use of cash H2 FY24 NANOCO'’s £m 60.0 50.0 40.0 soo “| 88 GD cp 20.0 10.0 0.0 H1 FY24 Tender Offer Buy back FX Hedge Repay debt H2 cash usage H2 FY24 ° Tender offer assumed to be fully subscribed ° Assume buy back completes by July 2024 (authority to December 2024) * Repayment of all deb
Slide 27: Financial summary
Financial summary MANOCOS Guidance 27 March 2024 Services and material revenue expected in line with FY23 Samsung IP licence income £6m p.a. for 8 years (prepaid) Cash costs increasing to c. £7.2m p.a. reflecting investments Increased Runcorn footprint to create wafer device fab New equipment allows
Slide 28: Outlook
Interim Results FY24 NANOCO:: GROUP PLC e® OUTLOOK 28
Slide 29: Priorities for CY24 - steady growth on a firm foundation
Priorities for CY24 - steady growth on a firm foundation yen OCO SG a | 27 March 2024 Interim Results FY24 29
Slide 30: Questions
NANOCO* GROUP e e QUESTIONS 27 March 2024 Interim Results FY24 30
Slide 31: Appendices
NANOCO* GROUP e e APPENDICES 27 March 2024 Interim Results FY24 3]
Slide 32: Glossary
GLOSSARY MANOCOS CMOS CIS Spectrum NIR SWIR POC PbS InAs InSb InGaAs DCI-P3 nm 27 March 2024 CMOS stands for Complementary Metal-Oxide-Semiconductor: technology used in the manufacturing of computer processors, memory chips, and other digital devices such as sensors. CMOS Image Sensor: a semiconduct
Slide 33: Board Members
BOARD MEMBERS Dr Christopher Richards Non-Executive Chairman Brian Tenner CEO Dr Nigel Pickett Co-founder & CTO Liam Gray CFO and Company Secretary Dr Alison Fielding Senior Independent Non- Executive (Remuneration chair) Chris Batterham Non-Executive (Audit chair) Dieter May Non-Executive 27 March
Slide 34: Shareholder Analysis (as at Feb 2024)
SHAREHOLDER ANALYSIS (AS AT 28 FEB 2024) MANOCOS Name Shareholding Percentage Hargreaves Lansdown Asset Management 56,054,440 17.28 Lombard Odier Investment Managers 53,933,433 16.62 Interactive Investor 29,089,418 8.97 Tariq Hamoodi 13,084,542 4.05 HSDL, Stockbrokers 12,009,964 3.70 Dr Nigel Picket
Slide 35: 27 March 2024 Interim Results FY24 35
27 March 2024 Interim Results FY24 35