Cap-xx Limited · LSE:CPX
Cap-xx — Nanotech Northern Europe 2008
23 slides from Cap-xx's conference presentation, Sep 2, 2008
Slide 1: A Case Study in Commercialising Nanotechnology
A Case Study in Commercialising Nanotechnology Anthony Kongats, CEO, CAP-XX Ltd Nanotech Northern Europe 2008 © CAP-XX 2 SEPTEMBER 2008 1
Slide 2: Disclaimer
Disclaimer • This presentation and its enclosures and appendices (the “presentation”) have been prepared by CAP-XX Limited (the “Company”) exclusively for information purposes and does not constitute an offer to sell or a solicitation of an offer to buy any securities. This presentation has not been
Slide 3: Outline
Outline • Introduction to CAP-XX Ltd • Brief history • Examples: value proposition for mobile phones and solid state drives • Issues encountered • Lessons learnt • What‟s next? • Q&A © CAP-XX CONFIDENTIAL 2008 3
Slide 4: Overview of CAP-XX Ltd
Overview of CAP-XX Ltd • Australian “Born Global” supercapacitor manufacturer • Founded 1997 • IPO on LSE (AIM) in April 2006 • A unique technology position - World‟s best thin prismatic supercapacitors with strong IP • Focused on space-constrained electronic devices • Sold over 3 million devices •
Slide 5: CAP-XX Worldwide
CAP-XX Worldwide Headquarters Manufacturing, Factory R&D Local Sales Office Reading, UK Myrtle Beach South Carolina, USA Penang, Malaysia HQ in Sydney, Australia Approx. 50 direct employees Volume Manufacturing outsourced employing around 500 people Sydney, Australia Extensive network of sales repre
Slide 6: What is a Supercapacitor?
What is a Supercapacitor? 10,000,000 Capacitors 1,000,000 100,000 10,000 Specific Power W/l 1,000 Supercapacitors 100 Batteries 10 1 Fuel Cells 0.01 0.1 1 10 100 1,000 10,000 Specific Energy Wh/l © CAP-XX CONFIDENTIAL 2008 6
Slide 7: What is a supercapacitor?
What is a supercapacitor? Capacitor Supercapacitor Battery Stores a small amount of Stores a moderate amount of Stores a large amount of electrical energy electrical energy electrical energy Static electricity Static electricity Chemical reaction Releases energy very quickly Releases
Slide 8: Role for nanotechnology at CAP-XX
Role for nanotechnology at CAP-XX Aluminium Carbon Separator Carbon Aluminium Nano-structured materials increase energy (capacitance) and decrease impedance (ESR) + - 1.E+03 CAP-XX 1.E+02 Power Density (kW/kg) 1.E+01 Capacitors Nanoporous carbon 100 nm 10 nm thick oriented modified layer with fibres
Slide 9: Brief history of CAP-XX
Brief history of CAP-XX • 1994-99 Partner with CSIRO to research supercapacitors; US$2.5m in seed capital & grants • 2000 Raise US$6.6m from VCs; First mobile wireless product; Business agreement with Intel for Notebook PCs • 2001 Raise US$17m from Intel, Acer & VCs; Develop pilot production plant w
Slide 10: Brief history of CAP-XX (continued)
Brief history of CAP-XX (continued) • 2004 Establish contract manufacturing in Malaysia; Shipping production quantities; Nokia contacts us re LED flash; First distributors appointed • 2005 Toshiba demos CAP-XX at 3GSM; Focus moves to camera phones • 2006 US$31m IPO on London Stock Exchange (AIM) • 2
Slide 11: Improving mobile phone performance
Improving mobile phone performance • Brilliant flash photographs – BriteFlash™ - Xenon performance - Ultra thin, small size flash solution - Familiar “true flash” appearance - Simple integration into camera phone Industrial Design • Captivating audio performance – BriteSound™ - Louder, cleaner music
Slide 12: BriteFlash: The best flash option
BriteFlash™: The best flash option Standard Nokia N73 BriteFlash™ N73 SonyEricsson K800i (N73 refitted with CAP-XX (xenon strobe) Supercapacitor) © CAP-XX CONFIDENTIAL 2008 12
Slide 13: Electrolytic or supercapacitor
Electrolytic or supercapacitor SonyEricsson K800i © CAP-XX CONFIDENTIAL 2008 13
Slide 14: BritePower: The best SSD option
BritePower™: The best SSD option • SSDs (Solid State Drives) are replacing HDDs (Hard Disk Drives) in computers etc., offering faster access, improved reliability & smaller size • Market size estimated at close to 100m units by 2010 • Problem is that if power fails (battery or mains) the cache memor
Slide 15: Some of the issues encountered so far
Some of the issues encountered so far • Raising capital – seed / VC / public • Dealing with “Investment Bubbles” • Time taken to find the right people • Turning R&D into a product ready for mass production • Building custom production processes & lines • Selling a new technology into a new applicati
Slide 16: Lessons learnt
Lessons learnt 1. R&D is just a v small part of the effort required for commercialisation 2. Focus on an end market - Don‟t push a technology 3. Keep the business plan simple & flexible 4. It will take longer & cost more than forecast 5. Take the funding when offered – it may not be available when y
Slide 17: Focus – The Bowling Alley Concept
Focus – The Bowling Alley Concept … and a logical strategy for acquiring them Automotive, Fuel Cells Toll Tags AMR Ruggedised UPS, PDA Toys DSC Symbol Wireless RPDA PDA Smart Sierra Phones Medical Wireless PCMCIA Devices PCMCIA CF GPRS USB, RS232 CDMA Cell Phones circa 2002 Small Market Large Market
Slide 18: Why the Stock Exchange?
Why the LSE: AIM Stock Exchange? • Australian Stock Exchange is dominated by resource & financial stocks – poor coverage of technology • Cost of NASDAQ prohibitive post-SOX • AIM is the largest technology exchange in terms of available capital & analyst coverage after NASDAQ • Cost of listing on AIM
Slide 19: The partnership with Murata
The partnership with Murata The Deal in Brief • Non-exclusive licence • Licence is for small prismatic supercapacitors only • Term is for life of current patents • Cash up-front • Royalty fee as a % of sales plus a share of operating profit over a threshold • On-going cooperation thru R&D and cross
Slide 20: The partnership with Murata secures CAP-XX's future
The partnership with Murata The partnership with Murata secures CAP-XX‟s future About Murata • Established 1944 • Listed on Tokyo & Singapore Stock Exchanges • Market Capitalisation £5.8b • Sales £2.4b • R&D expenses (p.a.) £200m - as % of sales 7% • Capacitors produced / day 1.3B • Employees 29,000
Slide 21: What's next? – the business model
What‟s next? – the business model Mobile Phones Murata Murata + Other Manufacturing Marketing & Distribution Solar Panels, wind farms, renewable energy CAP-XX Automobile Manufacturing Manufacturing Contract / JV Applications Electrode CAP- XX In-house Sales Organisation Fuel Cells Medical, Military
Slide 22: What's next? – engines of growth
What‟s next? – 3 engines of growth Normalised Market Demand (Units) Supercapacitors for: - Renewable Energy - Automotive - Memory Backup - Fuel Cells Plus new materials for: - Electronic Industry - New Batteries Existing Products Surface Mount Supercapacitors 2008 2011 2013 2015 © CAP-XX CONFIDENTIA
Slide 23: Anthony Kongats, CEO, CAP-XX Ltd
Anthony Kongats CEO, CAP-XX Ltd [email protected] © CAP-XX 2 SEPTEMBER 2008 23