SSL Investor Forum st October 21 , 2014 Nanoco Confidential 1 DISCLAIMER The information contained in this presentation has been provided by the Company and has not been independently verified. Except in the case of fraudulent misrepresentation, no responsibility, liability or obligation is accepted by the Company or any of its officers, employees or agents in relation to the accuracy or sufficiency of this information and any such liability is expressly disclaimed. No representations or warranties, express or implied, are given as to the accuracy or completeness of any information contained in this presentation, any other written or oral information provided in connection with this presentation or any data which such information generates. The Company does not undertake to, and is under no obligation to, provide any additional information or to remedy any omissions in or from this presentation. This presentation does not constitute an offer or invitation by the Company or its financial advisers or any of their officers, employees or agents for the sale or purchase of securities or of any assets, business or undertaking, nor any form of commitment or recommendation by the Company or its financial advisers or any of their officers, employees or agents. Distribution of this presentation in or from certain jurisdictions may be restricted or prohibited by law and neither the Company nor its financial advisers accept liability to any person who does not comply with such restrictions or prohibitions. 2 NANOCO OVERVIEW 3 NANOCO OVERVIEW • A world leader in the development, manufacture and supply of heavy metal-free quantum dots and other semiconductor nanoparticles • Founded in 2001 out of University of Manchester, UK. • Key markets are display, lighting, solar and bio-imaging • Partnerships with leading global electronics giants to incorporate Nanoco’s materials into their products • Signed major licensing deal in January 2013 with Dow to supply the display industry • London Stock Exchange AIM listing since May 2009. • Market cap as of 21st October 2014: £245 Million Partnership Development Revenue KEY TERRITORIES & OPERATIONS China Dow Electronic Materials Nanoco US Inc. • Headquarters in Manchester, UK. Manufacturing in Runcorn, UK. • 111 employees and growing (R&D, Scale-up & Production, Bus. Dev, Finance/Admin) • Business development offices located in key markets 5 QUANTUM DOT PRIMER • Quantum dots are fluorescent semiconductor nanoparticles, typically 1-10nm in si ze. Due to their s mall si ze and unique properties they are ideal for many uses in displays and lighting. BlueBlue 2 nm Energy (higherUV energy energy light GreenGreen (down converted) or electricity) 5 nm RedRed 10 nm Quantum dot properties Core Shell • Broadband absorbers, narrow band emitters • Bright and energy efficient • Tuneable – QD size determines the color it emits • Surface passivated by organic ligands to provide stability, Surface solubility, chemical functionality ligands 6 NANOCO’S PATENTED TECHNOLOGY • Mass production methodology ‘Molecular Seeding Process’ • World leader in heavy metal-free technology (CFQD® quantum dots) • Extensive & growing patent portfolio (ca. 300 patents and patent applications) • 71 patent applications filed in 2014 to date • 17 patents granted in 2014 to date • Patents cover five key areas: Process Materials Surface Devices Solar chemistry 7 KEY MARKETS Biological LCD backlighting High CRI Thin film solar imaging LED Lighting In-vivo & in-vitro diagnostic CFQD® quantum dots CFQD® quantum dots CI(G)S Water soluble CFQD® CFQD® quantum dots CFQD® quantum dots nanomaterials quantum dots resin resin Functionalized CFQD® quantum dots 8 VALUE CREATION 1. CFQD® quantum 2. CFQD® quantum 3. CFQD® quantum 4. CFQD ® quantum dots dots + Resin dots/Resin in dots Product device CORE BUSINESS CORE BUSINESS Developing & Ensuring Nanoco’s CFQD® quantum dots Nanoco’s focus is on manufacturing heavy- CFQD® quantum dots are incorporated into film, backlighting for LCD metal free quantum work in customers’ resin lens, capillary, LED, etc. display, LED lighting and dots fit for purpose systems Nanoco partners with end solar cells. use customer or device producer such as a film Nanoco partners with end manufacturer user customer 9 CFQD® QUANTUM DOT DISPLAY 10 NANOCO AND DOW – AN IDEAL PARTNERSHIP • Leader in Cd-free quantum dot technology with proprietary composition, QD Technology synthesis technology • Strong IP around material and production process • World class experience and expertise of nano sized electronic materials Manufacturing • No other QD company can match the Excellence worldwide manufacturing capability of Dow • Strong relationship and partnership with Market leading display customers Presence • Leading material supplier of emerging display technologies CLEAR BENEFITS FOR OUR CUSTOMERS Better Color Gamut Energy Efficient Minimal Process Change • Much improved color saturation • Narrow bandwidth = more light • Uses existing LCD manufacturing extraction through color filters infrastructure • Up to 50% color enhancement over LCD similar to OLED • Enables use of blue LED • Uses existing LCD supply chain instead of less efficient white LED Dramatically improved Light source cost saving “Drop in system” for color quality Better 3D TV experience easy adoption Without the use of cadmium or heavy metals! CFQD® QUANTUM DOT FILM Roll-to-roll coating 21 inch CFQD® films assembled onto edge-lit LCD backlight ® Finished 21 inch CFQD films 13 DRAMATICALLY IMPROVED COLOR Standard LED BLU CFQDTM Quantum Dot LED BLU Luminance Luminance wavelength wavelength 1 MARKET TRENDS FAVOUR QUANTUM DOTS OLED TV Slowdown “The OLED TV market amounted to just 4,400 units in 2013” – DisplaySearch Picture quality most important for consumers Researchers find picture quality was the most influential factor in the purchase of a screen – DisplaySearch June 2014 Exciting Future for QDs “QDs are going to revolutionize and reenergize LCDs for the next 5+ years” – Ray Soneira, DisplayMate Higher than Expected 4K uptake 4K TVs will rollout much faster: reasonable price of 4K-capable TVs & fast availability of 4K content on the Internet– Business Insider 15 MARKET TRENDS FAVOR QUANTUM DOTS 25m 471m 166m Units / year Units / year Units / year MAJOR DISPLAY TRENDS shipped of QD shipped of QD shipped of QD TVs in 2020 2 SMARTPHONES TABLETS in in 2020 2 2020 2 • Rise of the 4K LCD TV • OLED TV slows down • Color is the next battle-ground • QDs to revolutionize and $7.5bn reenergize LCDs VALUE of QD 1 market by 2020 • Great picture quality most important for consumers • First QD products launched Source: 1) Market&Markets - Quantum Dots Market by Product, Application, Material & Geography - Forecast & Analysis (2013 – 2020) 2) DisplaySearch – Quantum Dot Technology and Market Forecast Report, 2014 16 3) WinterGreen Research – Quantum dot and QLED: Market Shares, Strategy & Forecasts, Worldwide, 2013-2019 CFQD® QUANTUM DOT LIGHTING 17 LIGHT PEOPLE LIKE Applications where color is important are well suited to Quantum Dot solutions. Produce & Deli Counters Museums & Art Galleries Photo & Video Restaurant & Hospitality Retail 18 IMPROVING LED GENERAL LIGHTING • CFQD®s allow lighting company to easily “tune” the shade of white light emitted − CRI equal or better than those of traditional LEDs with similar CCTs • Combination of a blue LED with commercially available yellow-green RE phosphor and red CFQD®s: • cool, neutral and warm white correlated colour temperature • high CRI: > 90 • high efficacy 2.0E-04 Warm White 0.8 Planckian Locus 1.5E-04 Neutral White CIE1931 2 0.6 Cold White degree observer Warm White 1.0E-04 y 0.4 Neutral White Intensity, W Intensity, 5.0E-05 0.2 Cool White 0.0E+00 0.0 400 500 600 700 800 0.0 0.2 0.4 0.6 0.8 Wavelength, nm x 19 IMPROVING LED GENERAL LIGHTING Warm red/white LED light using Cool blue/white LED Nanoco’s red CFQD® (CCT: light (CCT: 5900, CRI < 2700, CRI > 90) 70) 20 CFQD® QUANTUM DOT SIGNAGE Advantages of QDs for illuminated signage: • Possible to render any particular color (example: match a brand logo) • Low conversion loss (~ 10–20%) compared to color filters (~ 50–90%) • Solution processability allows QDs to be printed on a range of substrates Color filter v. QD phosphor 21 THIN FILM SOLAR 15.7% 16% 14% 12.5% 12% 11.4% 11.6% 10.6% 9.7% 10% 8.4% 8% Efficiency Thin film solar based on Nanoco’s printable CIGS nano- 6.7% particle ink 5.7% 6% Objective is to produce a low cost printable solar cell with a target module cost of < $0.40 / Watt 4% Nanoco currently evaluating its strategy on channels to 2% 1.0% market 0% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Year 22 PRODUCTION UPDATE 23 NANOCO RUNCORN PRODUCTION • CFQD® Quantum Dots –Green CFQD® Quantum Dots successfully scaled up at Runcorn –Latest Red CFQD® Quantum Dot recipes being optimised at Runcorn • Resin mixing and coating –Latest recipe being run at Runcorn –In-house coating equipment in place to test coating and produce films • Runcorn facility –Doubled capacity and space in late 2013 –Plans to increase capacity in 2014 to meet anticipated near term customer being finalised 24 DOW PRODUCTION Dow’s Cheonon 3 Facility in Korea - CFQD® quantum dot manufacturing site Korean facility • Equipment design complete • Orders placed for equipment • Plan to produce commercial quantities H1 2015 • Dow has invested over $400MM to create world-class electronic materials manufacturing and R&D infrastructure in Korea • Dow’s capital investments