Questions and answers

The most frequently asked questions and answers regarding the introduction to the stock exchange.
Simply click on one of the questions and the respective answer is underneath.

What does the Nanogate AG have in its favor?

Nanogate is a successful nanotechnology company and one of the leading European suppliers in its field. In the 2009 financial year, Nanogate clearly exceeded forecasts, recording sales of EUR 10.7 million. The application areas of sport/leisure and functional textiles provided important momentum in the Group. However, the Automotive/Mechanical Engineering and Buildings/Interiors divisions saw customers – especially from the SME sector – reducing their orders and postponing projects. Overall demand revived substantially in the second half of the year. Overall performance totalled EUR 14.2 million. Due to the temporary sales slump and the sharp rise in expenditure for technological development and opening up new markets, the operating result (EBIT) came to EUR -2.2 million for the full year. Profitability improved considerably in the second half of the year. EBIT totalled EUR -0.2 million, while half-yearly sales amounted to EUR 6.6 million. Nanogate recorded a consolidated net loss of EUR -1.4 million in the reporting year. Earnings per share (basic) were EUR -0.72. Despite high investments of EUR 4.2 million, Nanogate had cash and cash equivalents worth EUR 5.9 million as of the balance sheet date. The equity ratio remains high at 61.4 %.

The Nanogate AG has a large product and application portfolio for numerous sectors and successful, established partnerships / involvements. Nanogate is one of the few nanotech companies in the world that has already got together with industrial partners (among others, ABB, Bosch-Siemens Haushaltsgeräte, Kärcher, Koenig & Bauer, REWE Austria und Opel) and put products on the market. The introduced technology platforms cover a multitude of functions and substrates. With this broad selection and profitable growth, Nanogate sets itself apart from other companies both at home and abroad.

How will the number of employees develop?

The Nanogate Group has 82 (as of April 2010) employees at present.

So how does the international business development look at present?

With regard to the regional distribution, Nanogate is currently bringing in the greatest part of turnover in Germany. In 2009, International sales increased to 47%..

So how does the net profit structure look at present? What is the influence of milestone payments?

Hardly any influence, we achieve our turnover primarily from the continuous business.

What is nanotechnology?

Nanotechnology is a cross-sectional technology. The advantages can be seen in many areas. By means of nanotechnology surfaces can be modified and given new properties or functions. Nanotechnology has become an innovative driver, creating an increase in value / a competitive edge.

What does enabling mean?

As a cross-sectional technology, nanotechnology is a broad field. We offer our customers access to nanotechnology by closing the gap between the manufacturers of basic materials and their industrial application. In other sectors we would be called a service provider or systems integrator. Nanogate hence portrays the crucial interface for the commercialization of chemical nanotechnology. Nanogate lends its customers a competitive edge by enhancing products with the aid of nanotechnology, and enables the programming and integration of additional functions (e.g. antibacterial, corrosion protection, ultra low friction) in materials. We use a consistent platform concept which enables a very quick speed of implementation for Nanogate´s customers. Compared to other nanotechnology companies, Nanogate covers a broad portfolio in terms of sector, function and substrate.

What competition is there from other companies in the sector?

The nanotech market is on the move. Lots of companies on the demand side want to use nanotechnology and try to gain access to this technology. Nanogate can help these companies. Nevertheless, individual companies also want to develop their own competence and possibly compete for our customers. With regard to the provider of starting materials, they also want to integrate their raw materials into products. Nanogate can also help here. Moreover, some companies want to go their own way. In the years to come we will see the expansion of this dynamically growing market and a competitive environment in which the fastest will win. Nanogate will use its prospects as a pioneer.

Your marketing is based on a partner model. How will this develop?

We expect also in this year a expansion of our regular customers.

Which innovations are planned?

Nanogate – one of the leading European suppliers in its field – has so far realised approximately 200 applications in mass production. In the financial year 2008 alone, Nanogate introduced more than 30 innovations to customers’ products and processes. Alongside these activities, we are developing three new technology platforms on whose basis the first applications are already being marketed successfully and which, in the long term, should open up substantial sales and earnings potential for us. We aim to act in an environmentally friendly way with all of our applications and solutions. With its brand GreenNano®, Nanogate is concentrating on ensuring the sustainable use of nanotechnology, improving energy efficiencies and minimising resource consumption.

What is Nanogate´s patent strategy?

We have a well-founded IP basis with different patent families. At present we have more than 60 patents granted on the basis of the most varied of patent families in various countries. Lots of extra innovations are currently patent pending and we are sure that our patent basis will continue to expand in the near future.

To which extent can applications, procedures or properties and functions be scaled?

As we work with technology platforms we can very quickly transfer a new function or combination of several functions to other applications. This way we can drastically increase the innovation speed and hence minimize the “time-to-market”. This has vital benefits for our partners.

How safe is nanotechnology?

Nanogate considers the safety of our products and applications to be paramount. We also work closely with renowned, independent testing institutions, institutes and laboratories like Fraunhofer, safety standards authority, TNO, FILK, ITV Denkendorf, Fresenius and many more, so as to guarantee maximum product safety. Varied measures and internal standards, which usually surpass the legal guidelines and customer requirements, maintain the quality and harmlessness of our products. All the same, it is true to say that we have no long-term experience on account of the relative history of nanotechnology.

For which companies does Nanogate work?

Nanogate has a broad basis. So far, a number of products / applications have been developed together with partners and put on the market. References are varied. Examples of these being ABB, Bosch-Siemens Haushaltsgeräte, Kärcher, Koenig & Bauer, REWE Austria und Opel.