Corporate presentation E - Nanoxplore · 2020-05-15 · Coatings and paints 9% TCF (non-ITO) incl....
Transcript of Corporate presentation E - Nanoxplore · 2020-05-15 · Coatings and paints 9% TCF (non-ITO) incl....
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Trading Symbol: GRA (TSX-V)
Corporate presentation
Q3-2018 1
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
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
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
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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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
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
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
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
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
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
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Flo
od
Man
agem
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Pip
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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%
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
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
GROWTH THROUGH INNOVATION
Q3-2018 14
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
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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Trading Symbol: GRA (TSX-V)
Q3-2018 17
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