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TEst

Jamesm
February 13, 2017
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 TEst

TESt

Jamesm

February 13, 2017
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  1. 1 www.appliedgraphenematerials.com Applied Graphene Materials Full year results Year ended

    31 July 2016 Applied Graphene Materials Full year results Year ended 31 July 2016
  2. 2 Overview Solid progress against milestones Value creation through improving

    the performance of our customers’ materials and products ► Strategic approach to commercialisation of graphene through customer collaborations is proving effective and on track: ► First production order received from Century Composites for use of graphene in fishing rods ► Accelerated product development programme with James Briggs with an expectation of product launch in early 2017 ► Further products and applications anticipated for launch in 2017 ► Modular production capacity expansion – first phase commissioned and operational ► Continued focus on three core target markets of paints and coatings, composites/polymers, and functional fluids Tomorrow’s material. Today
  3. 3 Overview of commercial progress Value creation through improving the

    performance of our customers’ materials and products ► First production order received from Century Composites ► Over 120kg of graphene dispersions across 170 evaluation samples provided to customers in the year ► Continuing to target end applications where our graphene can have greatest benefit – other end products and applications anticipated for launch in 2017 ► £8.5m equity raise to fund collaborations, working capital and to expand manufacturing capacity, underpinned by momentum of customer development work Greatest priority – securing further production orders
  4. 4 2016 Financial overview 2016 2015 £’000 £’000 ► Revenue

    & other income 252 101 ► EBITDA loss (4,155) (3,860) ► Loss before tax (4,269) (3,909) ► Basic & diluted EPS (22.0p) (22.9p) ► Adjusted diluted EPS (20.8p) (22.4p) ► Cash at bank 7,702 4,709 ► Capital expenditure (1,087) (385) ► Cash used in operations (4,184) (3,589)
  5. Solid progress against milestones Expected time to adoption Complexity of

    opportunity Automotive coatings Size and range of opportunity Lubricants Thermoplastic parts Formulated greases Prepregs Composite sports goods Coatings for harsh environments Toughening of composites for aerospace Market opportunity significant and AGM is very well positioned 2016 2017 2018 2019 2020 2021 future Source: Directors’ best estimates Size of opportunity 5 Aeorosol paints Other sports goods Top ten current customer opportunities Range of opportunity Product orders
  6. 6 Century Composites case study Solid progress against milestones Commence

    capacity expansion now ► Collaboration extending over c12 months with established specialist fishing rod manufacturer ► Launch of new range of performance Graphex fishing rods containing carbon fibre prepreg incorporating AGM graphene ► Products have improved mechanical performance and are able to be marketed at a premium ► Property enhancements attributed to graphene’s high specific surface area and mechanical properties Planned capacity expansion to six tonnes per annum First production application for graphene
  7. 7 Paints and Coatings Solid progress against milestones Commence capacity

    expansion now ► Sixfold improvement in barrier and anti-corrosion properties in independent trials ► Accelerated product development programme with James Briggs ► Inclusion of graphene in aerosol paints with expectations of launch early in 2017 ► End applications affordable through use at low loading levels in existing formulations to benefit barrier performance ► Ongoing collaboration with Sherwin-Williams Planned capacity expansion to six tonnes per annum Launch expected early in 2017
  8. 8 Composites Solid progress against milestones Commence capacity expansion now

    ► Development programme with Airbus Defence and Space for use of graphene in satellites ► Prepreg is one of several formats of intermediate materials used in the composites industry ► Working with a leading innovator in EU composites to produce a graphene enhanced prepreg – marketing across the composites sector including sporting goods, motorsport and industrial sectors Planned capacity expansion to six tonnes per annum Multi-functional properties of graphene
  9. 9 Functional fluids Enhanced performance in volume applications ► Ongoing

    collaboration with Puraglobe to incorporate graphene into products based on SYNTAINICS® technology, with initial focus on metalworking and cutting fluids and adjacent markets ► Establishment of performance database for several of Puraglobe’s products containing graphene, by independent German test house, to speed up customer adoption
  10. 10 Customer engagement Ongoing collaboration and data generation on multiple

    graphene formats. Optimisation of graphene dispersions > 300 samples provided: Supply of sample quantities of graphene dispersions primarily into three core target market sectors Current position > 20 partners: JDAs, application development work, near term production opportunities, repeat supplies and pre- production sampling Leading to first production orders: Century Composites Traction with commercial partners Volume production Other opportunities for product launch in 2017
  11. 11 Development of manufacturing capacity Solid progress against milestones Commence

    capacity expansion now ► Conditions of manufacture impact properties of graphene ► Essential to be able to modify manufacturing conditions to augment properties for specific end applications ► Significant know-how, understanding and ability has been built up to deliver specific property enhancements. US patent awarded ► Capacity expansion following modular approach – creates greater flexibility and also prudent ► First phase of capacity expansion completed and commissioned ► Combined nameplate production capacity extended to 1.5 tonnes Planned capacity expansion to six tonnes per annum Expansion of capacity to support anticipated demand
  12. 12 Income statement summary ► Higher operating costs reflecting ongoing

    costs of working with and supporting commercial partners including headcount ► Exceptional costs relate to placing and open offer 2016 2015 £'000 £'000 Revenue 75 41 Other income 177 60 252 101 Cost of sales (397) (341) Gross loss (145) (240) Operating expenses (4,429) (3,822) EBITDA (4,155) (3,860) Exceptional costs (250) (91) Depreciation (169) (111) Operating loss (4,574) (4,062) Net finance income 55 62 Loss before tax (4,519) (4,000) Tax on loss 175 100 Loss for the period (4,344) (3,900) Diluted EPS (pence) (22.0) (22.9) Adjusted diluted EPS (pence) (20.8) (22.4)
  13. 13 Cash flow summary ► Net £7.9m placing proceeds placed

    on deposit for maturities of less than one year ► Increase in capital expenditure for development of production processes and related assets 2016 2015 £'000 £'000 Operating loss (4,574) (4,062) Depreciation 169 111 IFRS 2 Share based payments 235 156 Net working capital movement (14) 206 Cash used in operations (4,184) (3,589) Interest received 44 82 Tax received 189 111 Capital expenditure (1,087) (385) Free cash flow (5,038) (3,781) Proceeds from issue of shares 8,031 13 Opening cash at bank 4,709 8,477 Cash at bank 7,702 4,709
  14. 14 Summary and outlook Aim is to become global graphene

    market leader ► First production order and other near term opportunities give confidence that strategic approach to commercialisation of graphene is effective and on track ► Focus on supplying formatted graphene into applications requiring minimal change to existing production processes ► Securing further production orders remains greatest ongoing priority