Canatu Plc · OMXHEX:CANATU
Canatu — Merger or Acquisition (September 2024)
51 slides from Canatu's merger presentation, September 2024
Slide 1: Company presentation
Company presentation September 2024
Slide 2: Disclaimer
Disclaimer Notice Lifeline SPAC I Plc (the “Company”) has prepared this presentation for information purposes only in connection with the propo sed acquisition of all the shares inCanatu Oy (“Canatu”) (the “Acquisition”) and contemplated listing on the First North Growth Market maintained by Nasdaq
Slide 3: Agenda
AGENDA Introduction 01 Introductory remarks CNT technology 02 CNT technology 03 Semiconductor Canatu business units 03 Automotive 03 Medical diagnostics Key strengths 04 Key strengths support moats Appendix 05 Appendix PUBLIC SEPTEMBER 2024 3
Slide 4: Today’s presenters
Today’s presenters Juha Kokkonen Tuomo Vähäpassi CEO,Canatu CEO, Lifeline SPAC I PUBLIC SEPTEMBER 2024 4
Slide 5: Canatu materially conforms to Lifeline SPAC I’s investment criteria
Canatu materially conforms to Lifeline SPAC I’s investment criteria boxes Investment criteria High growth pote ntial Market Highly favourable long-te rm tre nds Re cognise d position in a re le vant marke t Position Unfair compe titive advantage Prove n product-marke t fit Business model
Slide 6: Lifeline SPAC I team will continue to contribute to Canatu value creation
Lifeline SPAC I team will continue to contribute to Canatu value creation Phase 1 Search phase Completed Phase 2 IPO assistance phase Q3/2024 – Q2/2025 Phase 3 Continued value creation phase Q3/2024 - Board of Directors Timo Ahopelto Tuomo Vähäpassi Ari Ahola Thomas P. Lantzsch Anthony Cannestra Kai
Slide 7: Deep technology platform for advanced carbon nanotubes
Deep technology platform for advanced carbon nanotubes PUBLIC SEPTEMBER 2024 7
Slide 8: Rapidly growing deep technology company
Rapidly growing deep technology company CANATU HIGHLIGHTS STRONG REVENUE GROWTH AND OUTLOOK EURm EBITDA1) % CAGR Gross margin-%2) Revenue Specializes in applications of carbon nanotubes (CNTs) CNT technology applicable in semiconductor, automotive and medical diagnostic (2.9) (1.8) 0.3 industries 71
Slide 9: Canatu focuses on global niche industries with high margin potential
Canatu focuses on global niche industries with high margin potential Current Future Semiconductor Wave 1- Semiconductor Already a key focus industry CNTs are used to manufacture EUV ~80% pellicles and inspection membranes of 2023 essential in the EUV lithography revenue process 1) Automotive Wave 2
Slide 10: Canatu offers CNT consumables and manufacturing equipment
Canatu offers CNT consumables and manufacturing equipment CNT membrane and sensors CNT reactor PUBLIC SEPTEMBER 2024 10
Slide 11: Two business models with recurring elements
Two business models with recurring elements 1. CNT product 2. Equipment and Description sales licensing sales Semiconductor • Canatu collaborates with world leading companies and sells CNT-based products Inspection CNT S-100 • Inspection membranes (inspection membranes, i.e. membranes 1) reactors 3)
Slide 12: Strong prospects for existing business
Strong prospects for existing business COMBINED COMPANY'S FINANCIAL TARGETS Revenue (EURm) EBIT-%1) +30% >100 The key strengths enable Canatu to 20-25 reach its financial targets 2024E 2027 target Note: 1)Adjusted for goodwill amortisations under the Finnish Accounting Standards PUBLIC SEPTEMBER 202
Slide 13: Agenda
AGENDA Introduction 01 Introductory remarks CNT technology 02 CNT technology 03 Semiconductor Canatu business units 03 Automotive 03 Medical diagnostics Key strengths 04 Key strengths support moats Appendix 05 Appendix PUBLIC SEPTEMBER 2024 13
Slide 14: Carbon nanotubes’ unique characteristics require sophisticated material and process technology
Carbon nanotubes’ unique characteristics require highly sophisticated material and process technology CARBON NANOTUBES HAVE EXCEPTIONAL PROPERTIES AND ARE DIFFICULT TO PRODUCE ANDCUSTOMISE IN SCALE1) CONSIDERABLE STRENGTH WITH LOW DENSITY 25x stronge r than ste e l Half the de nsity of aluminium
Slide 15: Differentiated IPR-protected technology supporting a strong competitive position
Differentiated IPR -protected technology supporting a strong competitive position in a high-barrier -to -entry business 130 patents and over 50 patents pending in 1 2 CVD synthesis Transfer Canatu CNT production has 1) 38 families Lower duration and costs of manufacturing Dry Stronger, longer an
Slide 16: Agenda
AGENDA Introduction 01 Introductory remarks CNT technology 02 CNT technology 03 Semiconductor Canatu business units 03 Automotive 03 Medical diagnostics Key strengths 04 Key strengths support moats Appendix 05 Appendix PUBLIC SEPTEMBER 2024 16
Slide 17: Semiconductor
Semiconductor PUBLIC SEPTEMBER 2024 17
Slide 18: Pellicles act as a crucial part of chip manufacturing by protecting photomasks
EUV Pellicles Inspection Membranes Semiconductor Automotive Medical diagnostic Pellicles act as a crucial part of chip manufacturing by protecting photomasks WHAT ARE PELLICLES USED FOR? WHY ARE PELLICLES IMPORTANT? Pellicle 1 Protects expensive 2 Increases quality of the photomasks from end-product
Slide 19: Technology development is expected to further increase demand for high quality pellicles
EUV Pellicles Inspection Membranes Semiconductor Automotive Medical diagnostic Technology development is expected to further increase demand for high quality pellicles MORE ADVANCED EUVL MACHINES MEANS PELLICLES NEED TO WITHSTAND GHER HI HEAT LOADS1) WHAT HIGHER WATTS MEAN FORCANATU Canatu’s revenue
Slide 20: CNT seem to be superior material for pellicles
EUV Pellicles Ins pe ction Me mbrane s Semiconductor Automotive Me dical diagnos tic CNT seem to be superior material for pellicles and economically a more viable option SIGNIFICANT STEP CHANGE IN TRANSMITTANCE AND PRODUCTIVITY WHY CNT HAS THE POTENTIAL TO SURPASS COMPOSITE IN PELLICLES? EUV transmi
Slide 21: Quality control in EUV process with inspection membranes
EUV Pe llicle s Inspection Membranes Semiconductor Automotive Me dical diagnos tic Quality control in EUV process with inspection membranes INSPECTION MEMBRANES USED IN QUALITY CONTROL KEY ASPECTS OF INSPECTION MEMBRANES 1 Simplified illustration of chip manufacturing process Pre- lithography inspec
Slide 22: Business model with recurring elements
Semiconductor Automotive Medical diagnostic Business model with recurring elements EUV PELLICLES– ACHIEVING HIGHER YIELDS1) INSPECTION MEMBRANES– ENHANCING QUALITY CONTROL2) First customer deliveries Debris filters in mass - of reactors in 2024 production since 2021 Business model Business model Tec
Slide 23: Canatu is well positioned to capture future semiconductor market potential
Semiconductor Automotive Me dical diagnos tic Canatu is well positioned to capture future semiconductor market potential EXPECTED DEVELOPMENT OF ADDRESSABLE SEMICONDUCTOR MARKET 3) KEY MARKET DRIVERS3) Scenario: Selective adoption in logic and limited adoption in memory – focus on advanced machines
Slide 24: Automotive
Automotive PUBLIC SEPTEMBER 2024 24
Slide 25: Track record since 2015 and attractive potential in high-end automotive solutions
Semiconductor Automotive Medical diagnostic Track record since 2015 and attractive potential in high -end automotive solutions LiDAR heater RAMPING UP MASS PRODUCTION Film heaters for LiDAR systems Driven by ever increasing Canatu film heaters can keep Camera heater and cameras to enableaccurate dem
Slide 26: Clear market drivers support growth in Canatu’s target automotive markets
Semiconductor Automotive Medical diagnostic Clear market drivers support growth in Canatu’s target automotive markets EXPECTED DOUBLE-DIGIT GROWTH IN THE MEDIUM TERM 1,2) KEY MARKET DRIVERS2) EURm 813 Advanced driver assistance Each autonomous vehicle development stage requires increasingly numerous
Slide 27: Medical diagnostics
Medical diagnostics PUBLIC SEPTEMBER 2024 27
Slide 28: Quick and potentially inexpensive alternative for medical diagnostics with Canatu CNT
Se miconductor Automotive Medical diagnostic Quick and potentially inexpensive alternative compared to current methods for medical diagnostics with Canatu CNT RAPID ON-SITE DETECTIONWITH CANATU CNT4) POC TESTING INDUSTRY IS SUPPORTED BY STRONG TRENDS Potentially considerably more sensitive and accur
Slide 29: POC testing industry supported by strong trends
Semiconductor Automotive Medical diagnostic POC testing industry supported by strong trends MARKET SIZE EXPECTED TO REACH EUR ~400 -1,000M BY 20305) KEY MARKET DRIVERS5) Scenario: Replacement of current testing cycles 1) Scenario: Increased testing use 2) EURm 1 064 Shift from centralized to POC tes
Slide 30: Agenda
AGENDA Introduction 01 Introductory remarks CNT technology 02 CNT technology 03 Semiconductor Canatu business units 03 Automotive 03 Medical diagnostics Key strengths 04 Key strengths support moats Appendix 05 Appendix PUBLIC SEPTEMBER 2024 30
Slide 31: Strong moats are expected to support Canatu’s pricing power and gross margins
Strong moats are expected to support Canatu’s pricing power and gross margins GROSS MARGIN DEVELOPMENT PRICING POWER IN THE FUTURE SUPPORTED BY STRONG MOATS EURm Gross margin-%1) Revenue High barrier to entry –business 2) I Advanced CNTs are difficult to produce and customize in scale, and applicati
Slide 32: Financial targets of annual revenue over EUR 100 million and EBIT margin over 30% in 2027
Financial targets of annual revenue of over EUR 100 million and Adjusted EBIT margin 1) of over 30% in 2027 Revenue (EURm) • Revenue forecast primarily based on the current orderbook Net turnover in H1/2024 was EUR 11.1m, • Preliminary H1 revenue EUR 11.1m 2) based on orders and deliveries partially
Slide 33: Lifeline SPAC I capital offers potential for accelerated value creation
Lifeline SPAC I capital offers potential for accelerated value creation Canatu’s Potential Key investment Future investment investment Existing customer description developments amount period support Re actor te chnology Enhance d automation Carbon nanotube transistors EUR Semiconductor Se c
Slide 34: Canatu’s key strengths
Canatu’s key strengths 1 Rapidly growing deep technology company with attractive margins 2 Current, high -growth focus markets are estimated to grow to EUR 2 –4 billion by 2030 3 Customer relationships with leading global companies 4 Differentiated IPR -protected technology supporting a strong compe
Slide 35: Agenda
AGENDA Introduction 01 Introductory remarks CNT technology 02 CNT technology 03 Semiconductor Canatu business units 03 Automotive 03 Medical diagnostics Key strengths 04 Key strengths support moats Appendix 05 Appendix PUBLIC SEPTEMBER 2024 35
Slide 36: Transaction structure
Transaction structure PRELIMINARY KEY PARAMETERS OF TRANSACTION ILLUSTRATIVE POST-TRANSACTION OWNERSHIP4) Lifeline SPAC I to combine with Canatu via a 100% share exchange deal Canatu will receive up to EUR 105.6M in primary capital as a result of the transaction Fixed enterprise value for Cana
Slide 37: Timetable and process update
Timetable and process update Key dates 5 July 2024 • Announcement of transaction Past 20 August 2024 • Capital Markets Day 23 August 2024 • Lifeline SPAC I EGM resolved to approve of the acquisition of Canatu with no opposing votes (i.e. no redemptions) Future 17 September 2024 • Listing on First No
Slide 38: Lifeline SPAC I combination with Canatu offers multiple benefits
Lifeline SPAC I combination with Canatu offers multiple benefits 1 2 3 Transaction and listing will Access to highly experienced Lifeline SPAC I capital offers support Canatu’s strategy to team to support Canatu in future potential for accelerated value position itself as a manufacturer growth creat
Slide 39: Scale benefits from the OPEX base expected to support long-term EBIT margin target
Scale benefits from the OPEX base expected to support the long -term target of reaching >30% EBIT margin1) by 2027 OPERATING EXPENSES AND EBIT 2021 -2023 KEY COMMENTARY EURm EBIT2) Personnel expenses Other operating expenses Depreciation & amortisation Canatu expects that reaching the long -term fin
Slide 40: Current level of capital expenditure expected to be adequate for 2027 targets
Current level of capital expenditure expected to be adequate for reaching the long - term financial targets by 2027 CAPEX 2021-2023 AND OUTLOOK FOR 2024 CAPEX KEY COMMENTARY EURm 2021 Investments in tangible and intangible assets Current CAPEX level expected to be adequate • Canatu expects that the
Slide 41: Versatile platform technology for advanced applications
Versatile platform technology for advanced applications Current core focus business Examples of future applications Semiconductor Automotive Medical diagnostic Semiconductor Automotive CNT membranes Debris filters LiDAR heaters CNT test strips Optical filters Transistors Solar cells Higher optical H
Slide 42: Canatu has a strong position in a potentially multi-billion market
Semiconductor Automotive Medical diagnostic Canatu has a strong position in a potentially multi -billion market EXPECTED ANNUAL DEVELOPMENT OF ADDRESSABLE MARKET (EUR m)1) COMPETITIVE LANDSCAPE IN SEMICONDUCTOR INDUSTRY 1) 2024E 2027E 2030E Key CNT competitors CNT-based pellicles 2) Market in develo
Slide 43: Illustrative overview of full microchip manufacturing process
Semiconductor Automotive Me dical diagnos tic Illustrative overview of full microchip manufacturing process Silicon Wafer Deposition Lithography Cleaning Etching Blank mask Pattern mask Inspection Inspection Etching Inspection Inspection Metal electrode High k-dielectric Packaging Testing Deposition
Slide 44: Sub-7nm (EUV) chips are the fastest growing segment in semiconductor
Semiconductor Automotive Medical diagnostic Sub-7nm (EUV) chips are the fastest growing segment in semiconductor – high-end chip demand currently driven mainly by computing and high -end consumer devices 4) SEMICONDUCTOR END-PRODUCT MARKET SIZE AND GROWTH END-MARKETS FOR SEMICONDUCTORS1) Semiconduct
Slide 45: Three semiconductor manufacturers plan to invest USD >300bn in capacity
Semiconductor Automotive Medical diagnostic Three semic . manufacturers plan to invest USD >300bn in capacity to match demand USD >300bn ~70-80% planned investments in new of announced investments are production capacity announced estimated to be allocated to publicly by 1) semiconductor manufacturi
Slide 46: The versatile features of Canatu’s CNTs allow for multiple applications
Se miconductor Automotive Me dical diagnos tic The versatile features of Canatu’s CNTs allow for multiple applications RAMPING UP MASS MANUFACTURING RAMPING UP MASS MANUFACTURING IN MASS MANUFACTURING SINCE 2015 Camera heater LiDAR heater 3D touch sensors Camera heaters LiDAR heaters 3D touch sensor
Slide 47: CNT film heaters compared to traditional solutions
Semiconductor Automotive Medical diagnostic CNT film heaters compared to traditional solutions CANATU COMPETITORS Heat distribution Heat distribution of traditional wire heater of CNT film heater Of the recognized competitors, CHASM is the only one utilizing CNT-based film heaters 2) Higher energy c
Slide 48: Canatu aims to enable a quick and potentially inexpensive alternative to current testing
Se miconductor Automotive Medical diagnostic Canatu aims to enable a quick and potentially inexpensive alternative compared to current testing with industry -leading partners Medical diagnostics Highly sensitive POC market not yet established – Canatu aims to enable a quick and potentially inexpen
Slide 49: Multiple potential products in Canatu’s POC roadmap
Semiconductor Automotive Medical diagnostic Multiple potential products in Canatu’s POC roadmap CANATU’S POC ROADMAP – MARKET ENTRY FOR DIFFERENT PRODUCTS Illustrative 2020 2024 2025 2026 2027 2028 2029 2030 Estimated annual costs of current tests 2) First clinical trials Canatu already has mass pro
Slide 50: +1 EURbn market opportunity with only one CNT-based competitor identified
Se miconductor Automotive Medical diagnostic +1EURbn market opportunity with only one CNT -based competitor identified EXPECTED DEVELOPMENT OF TOTAL ADDRESSABLE MARKET (2030E) 4) COMPETITIVE LANDSCAPE IN POINT-OF-CARE MEDICAL DIAGNOSTICS4) EURm Scenario: Replacement of current testing cycles 1) Scen
Slide 51: Canatu
CANATU LIFELINE| 1 |