Nanoco Group Plc · LSE:NANO
Nanoco — H1 FY2023 Earnings Presentation
30 slides from Nanoco's earnings presentation, March 2023
Slide 1: Interim results presentation
Interim results presentation Norco: For the period ended 31 January 2023 possibilities
Slide 2: Disclaimer
DISCLAIMER NANOCO: 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: Highlights - Significant Opportunities
HIGHLIGHTS - SIGNIFICANT OPPORTUNITIES NANOCO: Significant forecast growth in core markets == ta: a: . Litigation proceeds ne valcateo ane underpin commercial P business Interim Results —January 2023 COATT
Slide 4: Value Opportunities
VALUE OPPORTUNITIES NANOCO™: Sensing \ Display Service and product revenue Service, product and licensing potential potential Multiple material Ip Increase engagement with validations FY23 display companies Order visibility Leverage validated core IP target H2 CY23 into new licenses Strong progress
Slide 5: Business Review - Sensing
NANOCO*: BUSINESS REVIEW - SENSING
Slide 6: IR Sensing Opportunities
IR SENSING OPPORTUNITIES NANO ce? The Problem Why Quantum Dots Nanoco's Differentiation Poor IR efficiency of silicon sensors v_ Expand sensor range into infra red Vv Proven data capture efficiency (~10x) Interference from natural light v Overcomes sunlight issues Vv Large production capability in p
Slide 7: High Growth Sensing Markets
HIGH GROWTH SENSING MARKETS NANO ce? Image sensor market expected to surpass $30bn by 2030° CMOS Image Sensors (CIS) forecasts” 35,000 e Growth in sensors driven by mobile, industrial, automotive applications e Technology supports drive for new materials to increase speed and sensitivity - QDs Reven
Slide 8: Sensing Product Development
SENSING PRODUCT DEVELOPMENT NANOCO:: Eye) we owik Wavelength (<10 pm) (10-13 um) (1315 um) (15 um) Material A B Cc A B C A B C A BC Development C1) Strong progress expanding wavelengths and base materials Legend (# = number of customers) 2) Development— material at R&D scale “January 2023 NIR SWIR O
Slide 9: Business Review - Display
NANOCO:: GROUP PLC e® BUSINESS REVIEW - DISPLAY
Slide 10: QD Display Markets - TV
QD DISPLAY MARKETS - TV NANOCO? QD share of flat panel TV market rises from~6% to ~34% Evolution of the Flat Panel TV Market 300 “TDR & Company Estimates 2020 021 2022 2023 2024 2025 2026 2027 Non QD TVs mOtherQDTVs mSamsung QD TVs Nanoco validated IP to access expanding purple wedge of ‘Other QD Tv
Slide 11: QD Display Markets - Other Devices
QD DISPLAY MARKETS - OTHER DEvices ‘ANOCO: Significant growth forecast in other devices using QD technology M's of units Other QD Display Devices 800 700 600, 500 300 200 10¢ *TDR & Company Estimates _ ee 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ™ Monitor = Laptop ablet/Phablet Smaller
Slide 12: Nanoco CFQD Opportunities
NANOCO CFQD ® OPPORTUNITIES NANOCO: e Significant growth forecasts for QD TVs, 38% CAGR to 2030 e Validated IP creates a significant technical and financial barrier to entry e Nanoco CFQD® cadmium free quantum dots on test with a major TV brand e Runcorn production capacity enough for new entrant vo
Slide 13: IP Transactions
NANOCO:: GROUP PLC e® IP TRANSACTIONS 13
Slide 14: IP Transactions - Financials
IP TRANSACTIONS - FINANCIALS Mee? Total - Nanoco share $90.0m (pre-tax) $150m - Funder + adviser costs $60.0m - Received March 23 - Funder + advisers $60.0m - Nanoco $15.0m (pre-tax) Tranche 1 $75m - Due by February 24 - Nanoco $75.0m (pre-tax) - Balance business needs and return of capital Tranche
Slide 15: IP Transactions - Accounting
IP TRANSACTIONS - ACCOUNTING NANOCO? e Structured as a Sale of IP and an IP Licence e Retain full freedom to operate in all products, markets, and geographies e Retain all patents linked to current commercial activity e Licence back on disposed patents (industry standard) e Sale of 18 non-core, non-
Slide 16: Board Litigation Risk Assessment
BOARD LITIGATION RISK ASSESSMENT NANOCO: Win (Their Low Damages) Minimal chance on appeal A% $150m gross, $90m net Win (Our High Damages) Win (Our Low Damages) Risk adjusted NPV assessments discount a ‘perfect’ outcome 16 Interim Results —January 2023 0 SS
Slide 17: Future Licensing Opportunities
FUTURE LICENSING OPPORTUNITIES NANOCO? e US PTAB validated Nanoco core patents e Nanoco retain all high value core process and composition of matter patents e Opportunity for proactive licensing approaches as QD display market grows e IP licensing team established to identify and pursue opportunitie
Slide 18: Financial Review
NANOCO:: GROUP PLC e® FINANCIAL REVIEW
Slide 19: Financial Highlights
NANOCO*: FINANCIAL HIGHLIGHTS GROUP PLCs li Cost base stable as Manchester savings offset inflation and additional Staff Cash £6.0m: net monthly We niene I Saget proceeds received post cash burn c. £0.1m . period end 19 Interim Results —January 2023
Slide 20: Income Statement
INCOME STATEMENT NANOCO: H1 FY23 H1 FY22 Change £m £m £m Revenue 1.6 11 +0.5 Cost of sales (0.3) (0.1) (0.2) Gross profit 1.3 1.0 +0.3 Other operating income (grants) 01 0.2 (0.1) R&D investment (1.0) (1.0) - Other administrative expenses (1.5) (1.3) (0.2) Adjusted LBITDA (1.1) (1.1) - Share based p
Slide 21: Movement in Net Loss
MOVEMENT IN NET LOSS NANOCO: £m 25 7 ar aD , aD (o2 J a 20) °° Ls J 18 | 4 | 2a 21 10 4 0s a 0.0 T T T T T T T ¥ FY22 Net revenue Opex Grants SBPs Litigation D&A FY23 — Revenue £0.5m higher with strong operational leverage from service income > Opex £0.3m higher - Manchester savings partly offset in
Slide 22: Movement in Cash
MOVEMENT IN CASH OUP sree £m 7.0 Mu | 60 OTT re a= (Gos J 5.0 4.0 68 30 6.0 2.0 1.0 0.0 FY22 Adj LBITDA Working capital Operating leases Capex Tax credit H1 FY23 — Underlying cash consumption £0.8m in the Period — R&D tax credit reduces as we reduce our cost base - future approach may change — Under
Slide 23: Financial Summary
FINANCIAL SUMMARY NANOCO: - Underlying revenue 20% ahead of FY22 plus £3.0m IP license income Guidance - Cash costs stable at ~£0.4m per month—savings offset cost increases - Activity levels increasing amidst preparations for commercial production —_ - Retained core capabilities through three very c
Slide 24: Summary
NANOCO:: GROUP PLC e® SUMMARY
Slide 25: Summary - Significant Value Potential
SUMMARY - SIGNIFICANT VALUE POTENTIAL NOC: - Nanoco active in high growth global markets Opportu nity - Validated IP creates barrier to entry in display markets + Novel high performing materials to exploit rapid growth in sensing FD - Most robust position in 20 year history | Platform - Core IP unde
Slide 26: Questions
NANOCO:: GROUP PLC e® QUESTIONS
Slide 27: Appendices
NANOCO:: GROUP PLC e® APPENDICES
Slide 28: Board Members
BOARD MEMBERS NANOCO:: GROUP PLC e*® Dr Christopher Richards Non-Executive Chairman Brian Tenner CEO Dr Nigel Pickett Co-founder & CTO Liam Gray CFO and Company Secretary Dr Alison Fielding Non-Executive (Remuneration chair) Chris Batterham Non-Executive (Audit chair) Interim Results —January 2023 M
Slide 29: Shareholder Analysis (as at January 2023)
SHAREHOLDER ANALYSIS (AS AT 31 January 2023) MES? Name Shareholding Percentage Hargreaves Lansdown Asset Management 57,596,986 17.86 Lombard Odier Investment Managers 38,847,752 12.05 Interactive Investor 32,197,693 9.99 Directors 12,994,799 4.03 HSDL stockbrokers 12,177,330 3.78 Barclays Smart Inve
Slide 30: Nanoco Group PLC contact details
Nanoco Group PLC &e 46 Grafton Street, Manchester, M13 9NT, United Kingdom, e Tel: +44 161 603 7900 | Fax: +44 161 603 7901 NANOCO ° info@nanocotechnologies.com ‘Www.nanocogroup.com e° 30