Nanoco Regulatory News (NANO)

Nanoco Group PLC

("Nanoco", the "Group", or the "Company")

8 February 2024

Half Year Trading Update

Performance in line

Continued strategic progress towards commercial production at scale

Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, today provides the following trading update ahead of the announcement of its Half Year results for the six months ended 31 January 2024, which are set to be released on 27 March 2024.

Operational overview

· Critical milestone of first ever commercial production order achieved with shipment of two first-generation materials for use in infra-red sensing applications in electronic devices.

· Significant progress with our two global electronics supply chain customers:

o  Joint Development Agreement with STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, to optimise the performance of a second-generation sensing material over a two year period.

o  Joint Development Agreement lasting two years with an important Asian Chemical customer to optimise a novel high performing nano-material for potential use in a number of global electronics applications.

· Building and fit out underway for new 300mm wafer device development and testing capability to shorten product research cycles and to support new customer engagement.

Financial overview

· Second and final tranche of litigation proceeds (net $71.75m) received from Samsung after settling last year on a no-fault basis for the alleged infringement of the Group's IP. Net proceeds hedged at a rate of $1.22 / £1.00, generating £58.8m including a net gain of £2.1m compared to spot rates on the date of receipt.

· Set to return capital to shareholders, in line with previous commitments, in the range of £33.0-40.0m. The Group will announce its proposals for the amount and structure shortly.

· As previously communicated, retained proceeds will be invested in commercial opportunities and further expanding R&D activities through to the self-financing position that is expected during CY25.

· Revenue and Adjusted EBITDA remain in line with the Board's expectations.

Brian Tenner, Chief Executive Officer of Nanoco, said:

"With the second tranche of litigation proceeds received, Nanoco will soon be able to make the promised return of capital to shareholders. The retained proceeds will then allow us to face the future on a fully funded basis, enabling careful strategic investment in R&D and expanded device capabilities and building on the commercial products that we have already delivered to market. The Group is well placed at the forefront of quantum dot technology to generate increases in shareholder value in the medium term. We look forward to announcing further progress, including the opening of our new fab."

- Ends -

For further information, please contact:

Nanoco Group plc:

Brian Tenner, CEO 44 (0)1928 761 404

Liam Gray, CFO & Company Secretary

Cavendish Capital Markets Limited (Financial Adviser & Joint Corporate Broker):

Ed Frisby / George Lawson (Corporate Finance) 44 (0) 20 7220 0500

Tim Redfern / Charlie Combe (Corporate Broking)

Jasper Berry (Sales)

Turner Pope Investments (Joint Corporate Broker):

Andrew Thacker 44 (0) 20 3657 0050

James Pope

Powerscourt (Public Relations) 44 (0)7970 246 725

Elly Williamson

Ollie Simmonds

Nanoco@powerscourt-group.com

The person responsible for arranging for the release of this announcement on behalf of Nanoco is Liam Gray, Chief Financial Officer.

FORWARD LOOKING STATEMENTS

This announcement (including information incorporated by reference in this announcement) and other information published by Nanoco may contain statements about Nanoco that are or may be deemed to be forward looking statements. Such statements are prospective in nature. All statements other than historical statements of facts may be forward looking statements. Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or "considers" or other similar words may be forward looking statements.

Forward looking statements inherently contain risks and uncertainties as they relate to events or circumstances in the future. Important factors such as business or economic cycles, the terms and conditions of Nanoco's financing arrangements, tax rates, or increased competition may cause Nanoco's actual financial results, performance or achievements to differ materially from any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. Nanoco disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.

About Nanoco Group plc

Nanoco (LSE: NANO) is a nano-material production and licensing company, specialising in the production of its patented cadmium free quantum dots (CFQD®) and other patented nano-materials for use in the electronics industries.

Founded in 2001 and headquartered in Runcorn, UK, Nanoco continues to build out a world-class, patent-protected IP portfolio alongside the scaling of the production for commercial orders.

Nano-materials are materials with dimensions typically in the range 1 - 100 nm. Nano-materials have a range of useful properties, including optical and electronic. Quantum dots are a subclass of nano-material that have size-dependent optical and electronic properties. Within the sphere of quantum dots, the Group exploits different characteristics of the quantum dots to target different performance criteria that are attractive to specific markets or end-user applications such as the Sensor, Electronics and Display markets. Nanoco's CFQD® quantum dots are free of cadmium and other toxic heavy metals, and can be tuned to emit light at different wavelengths across the visible and infrared spectrum, rendering them useful for a wide range of display applications. Nanoco's HEATWAVE? quantum dots can be tuned to absorb light at different wavelengths across the near-infrared spectrum, rendering them useful for applications including cameras and image sensors.

Nanoco is listed on the Main Market of the London Stock Exchange, holds the LSE's Green Economy Mark, and trades under the ticker symbol NANO. For further information please visit: www.nanocotechnologies.com