Nanoxplore, Inc. · TSX:GRA
Nanoxplore — Investor Presentation (April 2023)
33 slides from Nanoxplore's investor presentation, April 2023
Slide 1: The Power to Transform
The Power to Transform Enabling Energy Transition & Sustainability TSX: GRA Investor Presentation OTCQX: NNXPF April 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains express or implied forward-looking statements, which are based on current expectations of management. These statements relate to, among other things, our expectations regarding management’s plans, objectives, and strategies. All statements other
Slide 3: NanoXplore at a Glance
NANOXPLORE AT A GLANCE Ticker TSX: GRA Advanced material company founded in ESG vision “Blue chip customers” Volvo Caterpillar Paccar GE Market Cap $550 million Ford Solmax March 31 Graphene-enhanced Daimler Itron certified Li-ion batteries Cash $39 million 2011 manufacturer Morgan Olson Gerdau 10 p
Slide 4: Diversity, Equity & Inclusion
DIVERSITY, EQUITY & INCLUSION Board of Directors Corporate Workforce Management Team 50% 45% 40% Multi-Cultural Women Multi-Cultural & Women & Women 61% Multi-Cultural Background 3 TSX: GRA - OTCQX: NNXPF
Slide 5: The Power of Graphene
THE POWER OF GRAPHENE US$3 billion* 39% CAGR 2020 2027 Since its recent discovery in 2004, graphene continues to amaze scientists and researchers of the superlative properties the material exhibits. 2010 Hailed as a “wonder material”, graphene is lauded for its durability, sustainability and potenti
Slide 6: Our Solution
OUR SOLUTION We leverage our patented technology to provide sustainable alternative Graphite EXFOLIATION Graphene Natural flake graphite via a mechanical-liquid 6-10 atomic layers (>100,000 layers of carbon) proprietary process in thickness with 96-98% purity More EFFECTIVE SAFE CO2 No Carcinogen &
Slide 7: Manufacturing Footprint & Process
MANUFACTURING FOOTPRINT & PROCESS GIMLI * High Low Environmentally BEAUCE* Volume Cost Friendly * CAMBRIDGE *Enhanced products in other form State-of-the-art graphene facility * SWITZERLAND factors (masterbatch and compounded MONTREAL producing graphene powder pellets, composite parts) NEWTON* 10 fa
Slide 8: Powering Key Global Megatrends
POWERING 2 KEY GLOBAL MEGATRENDS Our vision is to create a better tomorrow by providing innovative, sustainable products and solutions across multiple industries and applications PRODUCT PEOPLE PROCESS ENERGY TRANSITION SUSTAINABILITY ˜ 80% Carbon footprint vs. OTHER SOLUTIONS 7 TSX: GRA - OTCQX: NN
Slide 9: Long-Term Drivers
LONG-TERM DRIVERS Capacity Expansion EV Adoption Sustainability High Return Market Share on R&D spend Growth 8 TSX: GRA - OTCQX: NNXPF
Slide 10: FQ2 2023 Corporate Highlights
FQ2 2023 CORPORATE HIGHLIGHTS Quarterly Key Developments TOTAL REVENUES TOTAL REVENUES (in $000s) $31.7M up 69% $35,000 $30,000 Transportation $25,000 DRIVERS: • Large commercial OEM approved $20,000 graphene in all existing and potentiel • Positive product mix including graphene- $15,000 future pro
Slide 11: Highlights of Recent Developments
HIGHLIGHTS OF RECENT DEVELOPMENTS JUNE Agreement with Techmer PM (U.S.) to supply GrapheneBlackTM JUNE Multi-year supply and distribution agreement with Gerdau JULY Graduation to the Toronto Foundation Stock Exchange Martinrea Strategic 2011 2017 Investment 2018-2020 AUGUST EPA Approval CEBO Acquisi
Slide 12: Examples of Commercial Success
EXAMPLES OF COMMERCIAL SUCCESS LARGE GLOBAL OEM LARGE ASIAN ELECTRONIC COMPANY Graphene-enhanced plastics Graphene powder LARGE COMMERCIAL OEM MID-SIZED NORTH AMERICAN PIPE COMPANY Graphene-enhanced composite parts Graphene-enhanced plastics MID-SIZED LATIN AMERICAN PACKAGING COMPANY MID-SIZED NORTH
Slide 13: The Potential Evolution as a Leading Graphene Producer
THE POTENTIAL EVOLUTION AS A LEADING GRAPHENE PRODUCER THE SET-UP OUR PLAN OUR VISION PHASE 1 PHASE 2 PHASE 3 2017-2022 2023-2026 2026+ DE-RISKED & CAPEX GROWTH & POSITIONED FOR SUCCESS EXECUTION POSITIVE YIELDING RESULTS • Strengthened our balance sheet • $120M graphene and battery materials • Bene
Slide 14: Battery Materials - Executive Summary
BATTERY MATERIALS - EXECUTIVE SUMMARY EV Adoption Anode Active Material 1,000GWh* by 2031 Energy Transition/ Sustainability Anode Performance Capacity needed Additive (Gn + Si) of anode active material Inflation Reduction Act IoT Adoption/Electronic Cathode Conductive Additive 1,000ktpa Devices KEY
Slide 15: Battery Materials - NanoXplore Value Proposition
7 BATTERY MATERIALS - NANOXPLORE VALUE PROPOSITION Anode (-) Cathode (+) Silicon/other Anode: Enhanced capacity Enhanced conductivity resulting More consistent anode performance Improved safety due to versus other anodes in faster charging time in hot and cold temperature versus enhanced heat dissip
Slide 16: Battery Materials - Capex & Returns
BATTERY MATERIALS - CAPEX & RETURNS ASSETS: • 12,000 tpa graphene and battery materials facility • 100-200 tpa graphene-silicon line • R&D Facility 2023 2025 CAPEX: $100 million Start of buildout Commissioning POTENTIAL ANNUAL REVENUE: $100 million IRR: 25%+ REASONS TO INVEST/STRATEGY: • Large and g
Slide 17: Lightweighting Composites - Executive Summary
LIGHTWEIGHTING COMPOSITES - EXECUTIVE SUMMARY 9% EV Adoption Transportation External parts of vehicles 31% Sustainability Battery enclosures 26% US$3B in 2021 Construction Transportation industry Commercial and 34% CO2 Reduction Regulations Residential Applications * Transportation Electrical/Electr
Slide 18: Lightweighting Composites - NanoXplore Value Proposition
LIGHTWEIGHTING COMPOSITES - NANOXPLORE VALUE PROPOSITION Stronger, Lighter, Higher Quality Parts Using ICE EV 30% HEAVIER CURRENT SOLUTION LIGHTWEIGHTING IS A PRIORITY FOR OEMs up to 25% Lower Painting Cost Lightweighting Sustainability & Potential Reduced Emissions 17 TSX: GRA - OTCQX: NNXPF
Slide 19: Lightweighting Composites - Capex & Returns
LIGHTWEIGHTING COMPOSITES - CAPEX & RETURNS ASSET: 10M lbs SMC facility SMC Nameplate Capacity CAPEX: $50 million 12M lbs POTENTIAL ANNUAL REVENUE: $80 million IRR: 25%+ REASONS TO INVEST/STRATEGY: • Large and growing addressable market • Attractive EV adoption market • Undersupplied market • Furthe
Slide 20: Specialty Compounds - Executive Summary
SPECIALTY COMPOUNDS - EXECUTIVE SUMMARY Sustainability Concrete Market Penetration Polyurethane (PU) Foam Low-Cost Alternative Drilling Fluids Polyethylene (PE)/ Polypropylene (PP) Compound GRAPHENE TARGETED KEY DRIVERS VERTICALS 19 TSX: GRA - OTCQX: NNXPF
Slide 21: Specialty Compounds - NanoXplore Value Proposition
SPECIALTY COMPOUNDS - NANOXPLORE VALUE PROPOSITION VALUE PROPOSITION GRAPHENE ADDRESSABLE MARKET SIZE 6,000 ktpa1 Concrete CO2 EMISSION COST PERFORMANCE & SAVINGS DURABILITY Drilling Fluids 256 ktpa2 FASTER EXTENDED REDUCED DRILLING SPEED TOOL LIFE FLUID LOSS PU Foam BETTER THERMAL FLAME SUSTAINABIL
Slide 22: Specialty Compounds - Capex & Returns
SPECIALTY COMPOUNDS - CAPEX & RETURNS ASSET: 4,000 tpa GrapheneBlackTM module (in addition to existing 4,000 tpa) CAPEX: $20 million POTENTIAL ANNUAL REVENUE: $40 million IRR: 40%+ REASONS TO INVEST/STRATEGY: • Narrowing the scope to focus on highest probability of success applications • Focus on ap
Slide 23: VoltaXplore at a Glance
VOLTAXPLORE AT A GLANCE 100% VoltaXplore benefits TSX: GRA from NanoXplore’s proprietary graphene anode technology VoltaXplore, a wholly-owned subsidairy of NanoXplore, is a Canadian manufacturer of proprietary designed and VoltaXplore graphene-enhanced cylindrical lithium-ion batteries supporting c
Slide 24: Advantages of Graphene-Enhanced Battery Cells
ADVANTAGES OF GRAPHENE-ENHANCED BATTERY CELLS Regular Anode with Graphene Enhanced Anode with NMC Cathode * NMC Cathode 18650 Battery Cell KPIs Energy Density Increase X Up to 10% Improved range performance for the EV market Cycle Life at Normal Charge Rate Up to 1500 Up to 2000 Energy stability and
Slide 25: Benchmarking Lithium-Ion Batteries
BENCHMARKING LITHIUM-ION BATTERIES KPIs* COMPETITOR 1 COMPETITOR 2 Capacity (mAh) 2500-2600 2500-2600 2500-2600 Energy Density (Wh/Kg) 204 196 214 Cycle Life (@80%) 300 250 450 (@ 4A Charge Rate) (@ 4A Charge Rate) (@ 4A Charge Rate) Internal Resistance (mΩ) <30 <20 27.5 Mass (g) 45.8 47.8 43.7 Temp
Slide 26: Leadership Team
LEADERSHIP TEAM Dr. Soroush Nazarpour, Ph.D. Rocco Marinaccio Pedro Azevedo Nima Moghimian Vincent Livoti Darrin Hotts Founder & Chief Operating Officer Chief Financial Officer Global Director of R&D Global VP Sales & Marketing VP Sales & Business Chief Executive Officer Development Composites Ph.D
Slide 27: Key Takeaways
KEY TAKEAWAYS Enabling Sustainability and Energy Transition Targets Largest Graphene Production Capacity in the World at Lowest Cost Direct Exposure to the Large Li-ion Battery Market Focusing on Large and Promising Industrial Markets Strong Innovation Capabilities Strong Management Team 26 TSX: GRA
Slide 28: Appendix
APPENDIX
Slide 29: Analyst Coverage
ANALYST COVERAGE Rupert Merer Amr Ezzat MacMurray Whale Ahmad Shaath Marvin Wolff Michael Glen Ben Jekic 1/4 TSX: GRA - OTCQX: NNXPF
Slide 30: Acquisition of Martinrea's Stake in VoltaXplore
ACQUISITION OF MARTINREA’S STAKE IN VOLTAXPLORE 50% VoltaXplore founded in End Markets Purchase price Capacity EVs Energy storage $10 million 2GWh or up to 2021 Equity consideration only Issuance of 3.4 million shares to Martinrea 130 million cells/year Deal Rationale ▪ Simplifies the capital struct
Slide 31: XG Sciences - Asset Purchase
XG SCIENCES - ASSET PURCHASE Specialized in the production of graphene nanoplatelets in process US$3 million Majority of Assets 100-200 tpa line at our Graphene & Battery Acquisition - August 2022 Founded in 2006 R&D lab material facility END MARKETS Partnered with market leading companies in key en
Slide 32: Canuck Compounders Acquisition
CANUCK COMPOUNDERS ACQUISITION $9 million Paid 5x 40M lbs EBITDA annually Acquisition - December 2021 Founded 35 years ago Canuck is a plastic recycling compounder providing CANUCK sustainable and engineered compounds A C O M PA N Y NanoXplore is currently selling graphene-enhanced recycled plastic
Slide 33: 4500 Thimens Blvd, Montreal, QC H4R 2P2 www.nanoxplore.ca TSX: GRA | OTCQX: NNXPF
4500 Thimens Blvd, Montreal, QC H4R 2P2 www.nanoxplore.ca TSX: GRA | OTCQX: NNXPF Follow us