and end use applications.

Our leading edge R&D team exploits both the

emissive and absorptive properties of the materials

we design. These are critical properties in electronics

markets for sensing, imaging and display uses.

Our CFQD

quantum dots are free of the toxic

manufacturers still use today despite the expected

 Our materials can be

 Continuous expansion of

US to Europe to Asia

production facilities all

located in Runcorn, UK

 Customers operate in

$multi-billion markets with

wide range of applications

Platform technology gives access to a wide range of large and rapidly growing end markets with our focus currently on

consumer electronics, Internet of Things, automotive and multiple display devices.

 CFQD

film

 QD on microLED

 Electro-luminescence

 Consumer electronics

 Automotive applications

to build on and extend our foundational

intellectual property. Our sensing

litigation delivered a gross

$150 million for the Company,

and $90 million after litigation costs

opportuntity in sensors, with

Nanoco technology in forefront;

mid-term potential

in Runcorn, investing to accelerate

product development and create

in Q1 CY24

Yole Intelligence forecast growth in SWIR imaging

from $322 million in 2022 to $2,899 million in 2030.

This is due to emerging markets in consumer

The CMOS imaging sensor market is forecast to

increase from revenues of $21.3 billion in 2022

to $28.8 billion in 2028.

Infinity business insights estimates the

Quantum Dot and Quantum Dot display

Dot display market forecast

can provide significant improvements

over existing technologies at a

competitive price point while our display

materials offer performance and clear

environmental benefits over highly toxic,

A number of staff have also relocated

as part of the consolidation of our

operations to our Runcorn production

facility. Our employees have continued

to work hard throughout this period,

and deserve special recognition for

where we are today. We are now able

to increase our investment in our staff,

including expanding their training and

career development, and thereby

end, we have set ourselves the target of

achieving ISO 14001 accreditation

(Environmental Management) in the

financial year ending 31 July 2024.

We are also pursuing accreditation to

ISO 45001 (Occupational Health and

Safety). Post year end, we have

appointed an ESG steering committee

with a wide remit to support the

we comply with all of the provisions of

the UK Corporate Governance Code

As the majority of stakeholders will be

aware, during the year a small group of

activist shareholders called a general

meeting in August 2023 with the aim of

removing the entire Board and

instead. All of the activists’ resolutions

were emphatically voted down. Voting in

favour of the Board ranged from 80.8% to

89.1% of votes cast. I strongly believe that

these votes reflect shareholders’

confidence in the current Board and

its strategy.

background in commercialising

technology in consumer electronics

markets. We expect to update the

market on an appointment in the

short term.

No dividend is proposed for the year

(2022: none).

As announced in February 2023 at the

Accordingly, the Board resolved to

return between £33-40 million (or

approximately 10-12 pence per share)

to shareholders, using some of the

second tranche of the proceeds of

the litigation (net $71.75 million), which

is expected to be received during

February 2024.

In July 2023 a capital reduction was

due course.

Our near-term goal remains to achieve

the transition to commercial production.

We expect our technology to gain

traction in a number of different

electronics applications after an

expected initial low volume use case.

Ultimately, our medium-term goal is to

achieve adoption in high volume use

product in commercial production with

a world leading customer operating in

electronics markets. A significant

validation of our technology and

production capacity. There is then clear

scope for growth to other use cases.

We also made progress throughout the

year on a number of sequential short

term development projects for our major

Asian chemical customer. Material

technology could lead to significant

revenue growth for Nanoco.

Following the validation of our IP in

the Samsung litigation process, we have

received inbound enquiries not just for

display applications but also for sensing

applications. This reflects the fact that

our scale up IP is equally applicable to

a range of sensing materials.

Enquiries have ranged in size from

Electronics continued

We started FY24 with a limited short term

order book for development work due to

the successful completion of the large

contract with the European customer

in April 2023. Discussions are ongoing

with our European customer on the

the European customer, in combination

with other revenues, we expect our order

book to rise to deliver similar services

and material revenue to that seen

in FY23.

The Board recognises that the adoption

of nano-material technology has taken

longer than expected for both Nanoco

and its competitors, creating commercial

challenges. Shareholders will be aware

Vision worked for almost ten years to

commercialise a technology that was

withdrawn after only one year.

The development cycles tend to be long

because the whole supply chain often

needs to be re-engineered on top of

developing QD material. One of the

advantages of the QD enhanced

CMOS sensors that Nanoco specialises

in is that the material represents an extra

layer in a pre-existing material stack.

Reaching final product validation testing

within six years demonstrates Nanoco’s

As shown in the infographic on page 13,

sensing applications continues to

progress from a single customer/single

product offering in early 2018 to a

position today where we are engaged

with multiple customers and are working

with many distinct materials and

As previously announced, already

published customer plans for a product

launch in 2024 support our goal of a

commercial production order by the

end of calendar year 2023, though,

as always, the final decision to adopt

the technology lies with the customers

of our customer and this cannot be

taken for granted. Our task is to ensure

that our materials consistently perform

competitors. The in-depth nature of our

do tend to “punch above our weight” in

terms of direct engagement with very

large end customers and their

technology teams. Conversely, given our

small scale, we work proactively to agree

commercial solutions of our customers to

the issue of supply chain risk.

Display materials remain a key focus

quantum dot technology in the flat

and environmental concerns mean that

cadmium free solutions are much

preferred (source: Omdia, TDR).

The forecast combination of cadmium

free systems taking a larger share of

the overall market, together with a fall

in Samsung’s relative share, is expected

to create two opportunities for Nanoco:

The first half of 2023 saw further

equipment and processes in our

Runcorn production facility, having

completed the exit from our Manchester

facility at the end of CY22. The display

facility in Runcorn was taken out of

“mothball” and now hosts the R&D teams

management system we are

implementing electronic batch recording

and line side systems to match our

position in important electronics supply

chains. As with our staffing profile,

we expect to increase our capital

expenditure from the absolute minimum

levels of the last three years of

extremely tight cash management.

This will proceed in parallel with projects

We continue to proactively manage

our IP portfolio to maximise value and

protect our core competencies.

We finished the year with 375 patents

and patents pending (2022: 503). The

Group has retained its most strategic IP,

including both of the patents that had

been scheduled to go to trial and two

others included in earlier stages of the

claim from the total of 47). This patent

had an unfavourable outcome in the

Markman hearing. As a film patent,

it was also outside the scope of our

“dot only” strategy.

The remainder of the patents sold to

Samsung (excluding the film family

which had 23 patents), made up of 95

individual patents, included patents for

includes a licence back to Nanoco so

that it retains the right to utilise the IP in

those same patents if so required. The IP

licence granted to Samsung is a non-

exclusive licence and hence does not

impede Nanoco’s current or planned

commercial activities.

Our employees continue to provide

great service to our customers in

that the workload for staff

is manageable.

Our Employee Voice Committee (“EVC”)

to support the Group and all staff on

matters of stress, mental health and

general well-being at a time of

During the year the majority of staff

have been trained on LEAN techniques

further training and development for all

staff as part of their career development

and our staff retention aims. This includes

general management training that feeds

Retaining and incentivising our highly

skilled team is key to delivering organic

value and growth from the business. We

have awarded a general cost of living

increase for all staff for FY24 of 5% of

benchmarks (excluding London) in FY22,

we believe that all staff are now paid

around median salaries or higher. Upside

potential comes from bonuses linked to

Company-wide performance objectives

covering revenue, health and safety,

quality, and LEAN improvement

initiatives. All staff are also eligible to

participate in the Group’s Deferred

development of new generation

sensing materials;

 capital investments to improve

production efficiency;

 capital investment to expand our

footprint at Runcorn by creating

in-house device capability;

 self-financing the IP licencing

programme while retaining ownership

and control of the Group’s core IP

buffer for working capital and to

mitigate the risk of unforeseen events.

We previously reported that the

European Commission (“EC”) received

a recommendation that the exemption

to allow cadmium (>100 ppm) in QD films

for display is no longer justified and

should be phased out by 31 October

exceed the limits shown above.

In December 2022, the EC received

 a request to allow cadmium

(> 100 ppm) in solid-state lighting

should be denied; and

 a new exemption should be granted

for on-chip QD applications until

30th November 2027.

Ahead of nations passing the required