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 sets Nanogate AG apart?

Nanogate is the the leading international integrated systems provider for nanosurfaces. We enhance, in particular, high-performance surfaces in the target sectors of automotive/mechanical engineering, buildings/interiors, sport/leisure and functional textiles. As a Group, we offer unparalleled expertise in the development of materials and in process integration and production. In conjunction with our equity holdings, we have put well over 200 projects into mass production for our customers, including Bosch-Siemens Haushaltsgeräte, Kärcher, Koenig & Bauer, REWE International AG, GEA, AUDI, BMW and Opel. We focus on three main growth engines: opening up international markets, developing new applications for the growth markets of plastics and energy efficiency, and external growth.

How is business developing at the moment?

Nanogate is expecting record sales this year, continuing the growth trend of many years. It is our goal to achieve sales of over EUR 30 million and an EBITDA margin of at least 10 %. We are currently registering great interest in end-user product business and the energy efficiency division in particular. This includes, for example, heat exchangers for heating systems which Nanogate enhances for Bosch. We have also already been commissioned for new projects by Audi, BMW and GEA Air Filtration for the new financial year 2011. In 2010 we were able to strengthen our market position with new projects for REWE in Austria and a leading European shoe retailer, for instance.

Why has Nanogate acquired Eurogard B.V.?

Eurogard specialises in enhancing surfaces on two-dimensional components and is the global market leader in the lucrative specialist sector of transparent plastics. Thanks to additional competencies provided by our new equity holdings in Eurogard and GfO, we now cover the entire value chain. As the leading international integrated systems provider for nanosurfaces, we occupy the market for high-performance surfaces like no other. The combination of materials expertise with years of experience in process integration and mass production for all surface geometries is unique in Europe.

Why did Nanogate acquire a 51 % equity holding in GfO?

With its equity holding in GfO, Nanogate can offer an integrated range of products for high-performance surfaces which can be given new or improved functions and properties by means of nanotechnology. The company can draw on a unique combination of extensive materials expertise paired with GfO’s comprehensive process and production know-how. Customers of both companies stand to benefit from this in equal measure. Nanogate now controls the entire value chain, from the purchasing of raw materials, to the synthesis and formulation of the materials systems, right through to the enhancement and production of the finished surfaces. With integration having been completed in February, development, production and distribution are carefully coordinated. The two companies already presented their first joint project in the autumn of 2010 at the world’s leading trade fair for plastics and rubber – K in Düsseldorf.

For which companies does Nanogate work?

Nanogate has a broad customer base. Numerous products and applications have been developed in collaboration with partners and launched on the market. References are varied: examples include Bosch-Siemens Haushaltsgeräte, Kärcher, Koenig & Bauer, GEA, REWE International AG, AUDI, BMW and Opel.

How will the number of employees develop?

The Nanogate Group has about 250 employees at present (as of May 2011).

How is international business developing at the moment?

In 2010, the proportion of Group sales accounted for by international business was around 40 %, a considerable increase compared with several years ago. Nanogate is active in around 30 countries.

How does the net profit structure look at present? How do milestone payments influence it?

We generate our revenues primarily from ongoing business operations, for which we generally have long-term customer relationships.

What is nanotechnology?

Nanotechnology is a cross-sectional technology. It can provide benefits in a wide variety of areas. Nanotechnology can be used to modify surfaces and equip them with new properties or functions. This means that nanotechnology is an innovation driver and creates added value and/or a competitive advantage.

Nanotechnology (“nano” is Greek for dwarf) is a comparatively young technology. It is concerned with researching into, processing and producing objects and structures which in at least one dimension are smaller than 100 nanometres (nm). A nanometre is one billionth of a metre (10-9 m) and around 50,000 times finer than an average human hair. The small size of the nanoparticles or nanostructures is one of the main reasons behind their special properties. The relative surface area increases as the size of a particle decreases. As a result, nanostructures have an extremely large surface area, which in turn has a decisive influence on their behaviour.

What are the benefits of being positioned as an integrated systems provider?

Nanogate looks after customers along the entire value chain, from the purchasing of raw materials, to the synthesis and formulation of materials systems, right through to the enhancement and production of the surfaces. This enables us to carry out large mass-production projects for our customers – a crucial factor in our high level of competitiveness. It also makes it possible for us, as an integrated systems provider, to establish ourselves as an innovation partner that enables customers to achieve crucial competitive advantages. We are successful at this because we have many years of experience with both innovative materials and process integration for mass production. As a systems provider, we have the basis for faster growth.

What does enabling mean?

As a cross-sectional technology, nanotechnology covers a wide variety of applications. We offer our customers access to nanotechnology by closing the gap between manufacturers of source materials and application in an industrial setting. In other sectors we would be described as a solution provider or systems integrator. In this way, Nanogate is the decisive interface for the commercial exploitation of chemical nanotechnology. For its customers, Nanogate generates competitive advantages by enhancing products with nanotechnology and thus enables the programming and integration of additional functions (e.g. antibacterial, anti-corrosive and ultra-low friction) in materials. To do so, we use an end-to-end platform concept, which facilitates a very high speed of implementation for Nanogate’s customers. As a result, in contrast to other nanotechnology companies, Nanogate covers a broad range of industries, functions and substrates.

What competition is there from other companies in the sector?

The nanotechnology market is constantly changing. Many companies on the demand side want to use nanotechnology and are trying to gain access to this technology. Nanogate can help these companies. Nevertheless, some individual companies will build up their own areas of competence and possibly compete for our customers. Suppliers of source materials, too, are finding it necessary to integrate their raw materials into products. Nanogate can help here as well. Still other companies will go their own way entirely. Over the next few years, on a dynamically growing market, a competitive environment will develop in which the faster and better suppliers are going to be the winners. Nanogate is going to make the most of its opportunity as a trailblazer and leading integrated systems provider.

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

We are expecting to increase our customer base again this year. In recent months, for example, we have intensified our cooperation with GEA and launched a collaboration with the Swiss company Kapyfract in the field of tunnel coating. Nanogate is active in around 30 countries.

What innovations are planned?

As one of the leading European suppliers in its field, Nanogate has so far realised approximately 200 applications in mass production. Alongside these activities, we are continuously developing new applications which, in the long term, should open up substantial sales and earnings potential for us. We see particularly promising opportunities in the plastics and energy efficiency areas. We strive to ensure that all of our applications and solutions are environmentally friendly. With its brand GreenNano®, Nanogate is concentrating on achieving the sustainable use of nanotechnology, improving energy efficiency and minimising resource consumption.

What is Nanogate’s strategy in terms of patents?

We have a sound IP base spread over numerous patent families. Currently, we have more than 90 patents, granted based on patent families of all kinds in various countries. Many further innovations are currently at the application stage, and we are certain that our patent base will continue to expand in the near future.

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

As an integrated systems provider, we support our customers at all stages of the value chain. Together with our equity holding GfO, we have a great deal of experience in large-scale mass production, particularly in the areas of process integration and production. Moreover, since we work on the basis of technology platforms, we can transfer a new function or a combination of several functions to other applications very quickly. This enables us to speed up the pace of innovation and drastically reduce the time to market as a result, which generates crucial advantages for our partners.

How safe is nanotechnology?

The safety of products and applications has the utmost priority in terms of our responsibility towards people and the environment. Our products are therefore tested by independent institutes such as Fraunhofer Gesellschaft and TÜV to ensure that they are harmless. Nanogate has been certified under ISO 9001:2000 (quality management) since 2000 and was the first nanotechnology company in Germany to obtain certification. In 2007 we also received certification for comprehensive environmental management under ISO DIN 14001:2004. All systems were audited again in January 2010 and their effectiveness was confirmed in full. At the same time we are involved in several industry associations and in the NanoKommission, a commission set up by the German federal government to implement integrated research into safety and risks. For many years, Nanogate has also taken part in international research programmes such as Nanosafe (safe handling of nanomaterials, completed in 2009) and NanoSustain (sustainability analysis of the entire lifecycle of products enhanced using nanotechnology, begun in 2010).

Furthermore, the nanomaterials used at Nanogate are processed in liquid form, are always embedded in what is known as a binder matrix and are applied in practice as a hardened surface coating. All the investigations currently available worldwide confirm unequivocally that based on current findings, nanomaterials permanently embedded in a matrix (comparable to a paint or lacquer) throughout their lifecycle do not constitute a danger to people or the environment.