Corporate presentation E - Nanoxplore · 2020-05-15 · Coatings and paints 9% TCF (non-ITO) incl....

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WELCOME Trading Symbol: GRA (TSX-V) Corporate presentation Q3-2018 1

Transcript of Corporate presentation E - Nanoxplore · 2020-05-15 · Coatings and paints 9% TCF (non-ITO) incl....

Page 1: Corporate presentation E - Nanoxplore · 2020-05-15 · Coatings and paints 9% TCF (non-ITO) incl. Flexible electronics 6% Photovoltaics 6% Lubricants 6% Printed Electronics 4% Water

WE

LC

OM

E

Trading Symbol: GRA (TSX-V)

Corporate presentation

Q3-2018 1

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D I S C L A I M E R

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 than statements of historical

fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends

for our business and results of operations; any statements of the plans, strategies and objectives of management for future operations, including the timing, funding and

construction of planned manufacturing facilities and sales offices; any statements of expectation or belief regarding future events, potential markets or applications, the

sizes of addressable markets, expected technology developments, strategic partnerships and collaborations, or enforceability of our intellectual property rights; any

statements about the projected or expected economic or other benefits of our products compared to petroleum-derived equivalents, future sales and any statements of

assumptions underlying any of the foregoing.

Forward-looking statements are subject to a number of risks, assumptions and uncertainties, many of which involve factors or circumstances that are beyond our control.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in

the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the

forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made,

and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Trademarks. Our trademarks may not be copied, imitated or used, in whole or in part, without our prior written permission. Other trademarks, registered trademarks or

logos, company names or logos displayed in this presentation are the property of their owners.

Q3-2018 2

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As a global graphene technology company with plants and offices in North America and Europe, we are determined to introduce our cutting edge technology to several

verticals, starting with transportation, industrial, and energy storage market.

Q3-2018 3

✓ A global leader in graphene market and largest Canadian producer of graphene, being traded in TSX Venture Exchange under symbol “GRA”.

✓ Currently employs approximately 400 people with 8 production plants in Canada and Switzerland and 2 plants under construction in Canada and US.

✓ Head-Quartered in Montreal, Market Cap ῀146M1

✓ Blue-chip clients: Volvo, Itron, Paccar, Oshkosh, Honeywell, JLG, General Electric, New Flyer Industries

✓ Strong strategic shareholder: Martinrea (MRE:TSX, Market Cap ῀ $1.15B1), one of the largest auto parts supplier in North America with $4B annual sales, 44 plants around the world and 15,000 employees. MRE is actively developing graphene enhanced products with NanoXplore.

✓ Significant financial growth YOY, unaudited 12-months forecasted revenue of approximately $70M.

✓ Strong presence in Transportation, Clean Energy and Industrial markets with versatility in product offering due to Vertically integrated business model from graphene production to final parts for OEMs

✓ Strong IP portfolio with several patents on graphene production and applications in composites and energy storage

✓ First mover advantage with significant market opportunity with graphene and graphene related products

✓ Lowest cost and largest graphene production facility in the world with upcoming 10,000 metric tonnes/year graphene production plant1

✓ Innovation driven with strong in-house R&D and engineering capabilities

(1) As of Oct 5, 2018

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Q3-2018 4

Soroush Nazarpour, Ph.D. President & CEO

President of Carbon Technology Business Unit

Soroush is a serial entrepreneur and thefounder of NanoXplore and has been President& CEO since 2011. He is an acknowledgedexpert in the field of graphene, and co-authorof “Graphene Technology From Laboratory toFabrication” published by Wiley & Co in 2016.Soroush holds a Ph.D in Nanotechnology fromthe University of Barcelona, Spain.

John KardosMBA

Vice President of SalesComposite Business Unit

John has over 25 years of experience ininternational sales, business development, long-term contract negotiations and projectmanagement. Prior to joining NanoXplorethrough Sigma Industries acquisition, Mr. Kardoswas VP Bus Dev at Nova Bus, VP Bus Dev atStantec au Quebec, and Director of Sales andDelivery at Bormbardier Transportation.During his career, Mr. Kardos was instrumental indeveloping new markets worldwide andmanaging teams in various countries, includingCanada, US, UK and Hungary. Mr. Kardos holdsan International Master of BusinessAdministration from York University in Toronto.

Denis BertrandB.Eng., MBA

President Composite Business Unit

Denis has more than 25 years of experiencein senior management and executive rolesin transportation industry. Prior to joiningNanoXplore, he has been the president andCEO of Sigma Industries (Acquired byNanoXplore). Prior to that, he served as theGeneral Manager of Société d'ingénierie devéhicules spécialisés (a division of DecomaInternational Inc.) which was acquired byMagna International at 2005.Mr. Bertrand holds certificates inInternational Commerce and Managementof Operations from École des hautes etudescommerciales (HEC) in Montreal.

Benoit Gascon CPA, CA

Chairman of the Board

Current President and CEO of Mason Graphite

Former SVP Sales and Bus Dev at Imerys carbon and graphite

Former Senior Manager at PwC

BOARD OF DIRECTORS

Cameron Harris Ph.D.

Current President of CAENG ltd,

former SVP and GM atSNC-Lavalin

Former Industry lead, Chemicals at Accenture

Former VP process Technology at WorleyParsons

Denis LabrecqueB.Eng.

President and founderof NorCap Canada Ltd

President and founder of Groupe Gestion GDL ltee

Luc Veilleux, CPA, CAChief Financial Officer

Luc has over 20 years of executivemanagement, financial and operationalexperience in manufacturing and miningindustries including CFO at Imerys Graphite& Carbon, COO and Vice-President ofFinance at Maxi Canada Inc. and seniorpositions at PricewaterhouseCoopers (PwC).

Louis Gaudreault

Vice President of Operation, Carbon Technology Business Unit

Louis has around 20 years of experience in operation and manufacturingmanagement in the fields of plastics and advance materials. Prior tojoining NanoXplore as VP of operation of powder business unit, Mr.Gaudreault was General manager of Unicor Industries and Director ofoperation and automation of Mega Brands. Louis is a seasoned executivewith outstanding achievements. As an example, in 2008, he was the keyagent in the repatriation of more than $100M in annual sales from Asia toQuebec through automation initiatives at Mega Brands Group.

Jean-Francois Dore, B.Eng., MBA,

Vice President of Operation Composite Business Unit

Jean-Francois (Jeff) has over 20 years experience in operation andmanufacturing management in the field of plastic and composite.Prior to joining NanoXplore, Jeff was chief operating officer of Sigmaindustries. He is currently responsible for the entire operation ofplastic division, running plants in Canada, US, and Switzerland.

EXPERIENCED, PASSIONATE LEADERSHIP TEAM

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A d v a n c e d m a t e r i a l s

a r e t h e D N A o f t h e

next Industrial Revolution

Q3-2018 5

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Q3-2018 6

GRAPHENE, APPLICATIONS AND MARKETS

• Transportation (Strength and weight reduction)

• Energy Storage (enhanced capacity and fast charging)

• Electronics (smaller and stronger processors)

• Tires and rubbers (enhanced rolling resistance and

durability)

• Paints and Coatings (faster curing and enhanced anti-

corrosion properties)

• Pipes and Tubes (Enhanced weatherability, durability and

strength)

• Electronic packaging (enhanced cooling and shielding)

• Chemical packaging (Improved impermability)

• Sport equipment (Weight reduction and enhanced

durability)

• Smart textiles (electrically conductive yarns and functional

fabrics)

• Water treatment (faster and lower energy desalination)

Composites48%

Energy storage

15%

Coatings and paints

9%

TCF (non-ITO) incl. Flexible electronics

6%

Photovoltaics6%

Lubricants6%

Printed Electronics

4%

Water treatment

4%

Electronics (other)

2%

Bulk graphene market in 2024 by industry application

(2017 BULK GRAPHENE PRICING REPORT by Fullerex Ltd)

GRAPHITE

GRAPHENE

Major challenge for graphene industry islarge volume production at low cost

Discovered at Manchester University at 2004, Nobel

Prize at 2010

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10,000 metric ton/year graphene production plantBased on Feasibility Report filed on Sedar at Aug 27th 2018

Q3-2018 7

4500 Thimens Blvd at Ville St- Laurent, Montreal, is the location of NanoXplore’s future

10,000 metric tons per year graphene production plantPermits received for current facility

- MDDELCC

- Ville de Saint-Laurent

- Ville de Montreal

ALL CAD Feasibility Pre-feasibility Change

Total CAPEX $40.1M $81.2M 50% less dilution for shareholders

Average selling price $10,000 per metric ton $10,000 per metric ton No change

Average operating Cost $4,042 per metric ton $4,500 per metric ton 10% lower cost to produce graphene

Average gross margin 59.6% 55% Faster payback

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Vertically integrated business model

Mine

First Transformation

Commodity Customers

Second Transformation

R&D and Product

Validation

Technology Customers

High Value

High Volume

Transportation

Piping

Sport goods

Batteries

Telecommunication

Q3-2018 8

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Disrupting Carbon Black’s $14B market

Q3-2018 9

✓ Superior performance and costreduction

✓ Significant processability advantage✓ An environmentally friendly

alternative✓ No dependency on oil price and

avoids oil market volatility

Perf

orm

ance

$/kg of final product

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Graphene enhanced plastic automotive parts

✓ TPU-Graphene for dashboards soft skins

✓ PP-Graphene for bumpers✓ PE-Graphene for fuel

systems✓ Nylon-Graphene for under

the hood parts✓ Rubber-Graphene for tires✓ Epoxy-graphene conductive

gel coats for class A paints

Graphene enhanced PE pipes

✓ Storm ✓ Drainage✓ Oil and gas✓ Conduits✓ Irrigation✓ Industrial processing✓ Corrugated pipes✓ Structural OEMs✓ Geothermal pipes

Q3-2018 10

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Q3-2018 11

GrapheneBlack 3X

has been compounded with a variety of HDPE neat and recycled

polymers and has shown a significant improvement in

mechanical, thermal and electrical properties, while improving

material processability, specifically in flood management pipes.

CA

SE

ST

UD

Y

Flo

od

Man

agem

ent

Pip

e

Property

High Performance

Formula (5 wt.%)

Low Cost Formula(1 wt.%)

Tensile Strength (MPa)

20% 12%

OIT ( min) 250% 102%

Young’s Modulus (MPa)

59% 20%

Barrier Properties

30% 28%

MFI (g/10 min) 0.5 3%

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Q3-2018 12

Plastic and Composite forming capabilities

• Robotized Hybrid Resin Transfer Molding (HRTM)• Reaction Injection Molding (RIM PU and DCPD)• Vacuum-assisted Resin Transfer Molding (VARTM)• SMC• Pultrusion• Structural Injection Molding• Precision Injection Molding• Small to medium size blow molding • Extrusion and compounding• Trimming, precision machining, & testing• Primer/paint line with oven• Assembly line sequenced through EDI

Example of Parts

• Volvo Mack CH & CX Sleeper transition panels• Kenworth T660, T800, or W900 with 62''Sleeper• Itron fluid meter precision blades • Kenworth and Peterbilt Day Cab Roof Fairing• Nova Bus composite floor• Mack Pinnacle Class 8 Flat Top Roof• GE (LM Wind) wind mill structural parts• JLG Telehandler and Boom Lift Engine and Tank Hood• MCI J 4500 coach bumper• Prevost Car, Rear Tail Light Bezels• Volvo 990 Grader Roof and Hood • Navistar MXT Hood

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Targeting acquisitions in plastic

and composite compounding and

forming businesses

OPERATIONAL SYNERGY

- Opportunity in cost reduction through administration consolidation (e.g. ERP and IT)

- Access to skilled human resource and certifications- Risk mitigation in order delivery

SALES SYNERGY

- Enhanced product offering, from powder supply to compounding, and plastic shaping

- Diversification of customers- Cost reduction with innovative shipping solutions- Opportunity for add-on sales due to increase in

production volume and capabilities

RADA Plastics: Plastic Injection and Blow Molding (Quebec)

CEBO Injection: Precision Injection Molding (Switzerland)

Sigma Industries: Composite forming (Quebec and Winnipeg)

TECHNICAL SYNERGY

- Performance and cost reduction through graphene addition

- Light-weighting using graphene-foam technology (NanoXplore’sproprietary technology developed at University of Toronto)

Rapid growth through Acquisition

Q3-2018 13

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GROWTH THROUGH INNOVATION

Q3-2018 14

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GRAPHENE FOR ELECTRIFICATION

• RANGE INCREASE BY LIGHT WEIGHTING

- Electric motor structural components

- Heavy duty commercial vehicle components

• IMPROVING THE SAFETY BY EMI SHIELDING

ENCLOSURES AND ADVANCED ELECTRONIC PACKAGING

- Sensors and Data links

- Battery packaging

• RANGE INCREASE BY IMPROVING THE BATTERIES

- Silicon-Graphene anodes for Li-ion batteries

- Sulphur-graphene cathodes for Li- Sulphur batteries (Next Gen Batteries)

• MULTIFUNCTIONALITY WITH PAINTS AND COATINGS

- De-icing and anti-electrostatic paints

- Corrosion resistant paints

Q3-2018 15

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Q3-2018 16

Corporate Structure

Basic Shares 93,631,327Warrants 14,538,969Options 1,317,133Fully Diluted 109,487,429

Capital Structure(1)Trading Symbol

TSX.V: GRA (Listed Since Sep 11, 2017)

Analyst Coverage (1)

Marvin Wolff $3.45

Ben Jekic $2.75

Amr Ezzat $3.50

Ahmad Shaath $3.25

(1) As of Oct 5, 2018.

Recent Financings

Private Placement $10M• March 2018: $1.65/Share• Lead Underwriters: GMP and Paradigm Capital

Private Placement $9.7M• September 2017: $0.45/Share• Lead Underwriters: Paradigm Capital

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TH

AN

K

YO

U

Trading Symbol: GRA (TSX-V)

Q3-2018 17

G r o u p N a n o X p l o r e

2 5 M o n t p e l l i e r B l v d ,

M o n t r e a l , Q C , H 4 N 2 G 3 , C A N A D A

Te l : + 1 ( 5 1 4 ) 9 3 5 - 1 3 7 7

w w w . n a n o x p l o r e . c a