August 31, 2011

Dear Readers,

the saying “a bag of rice falls over in China“ refers to an uninteresting or insignificant event. Read how and why the meaning of this metaphor has become less and less self-explanatory in recent years. After all, China is moving further and further center-stage and is fast developing into the next economic power. As such, it long since recognized the significance of nanotechnology for its development and is now one of the most enthusiastic promoters of the technology on the international stage.

Another country that greatly promotes nanotechnology as the key to economic modernization is Russia. The US business magazine, Forbes, confirms that there is enormous economic potential in this country in which Nanostart is preparing to enter the market this year. It is this potential that makes the country interesting for investors. In Singapore, another country that attaches great importance to nanotechnology, Nanostart has operated as a government partner since 2008. The Managing Director of Nanostart Asia, Andreas Kröll, provides some information about one of its holdings, BioMers.

We hope you enjoy reading it.

Yours sincerely,

Dr. Hans Joachim Duerr
Head of Corporate Communications

• “Our investments in Singapore are developing favourably” – An interview with Andreas Kröll, Managing Director of Nanostart Asia, Singapore
  With SimpliClear®, the Singapore-based start-up company BioMers Pte Ltd sets out to conquer the growing market segment of aesthetic orthodontics. Dental Tribune Asia Pacific spoke with the Managing Director of German investor Nanostart Asia, Andreas Kroell, about the company and its long-term prospects in the global market for orthodontic applications. >>

• Nanosys technology for U.S. electric cars
  It was reported early August that Nanostart holding Nanosys is to receive a subsidy of USD 11 million from the U.S. Department of Energy. This is primarily connected with the optimization of lithium-ion batteries used in electric vehicles, and therefore an important step towards large-scale introduction of electric cars. The subsidy is part of a program headed by the U.S. president. >>

• ″With our outdoor range we are moving away from the focus on winter business”
  In August, Nanostart holding Holmenkol AG and Sabu Schuh- und Marketing GmbH announced their cooperation in the area of shoe and textile care. With 930 members, Sabu is the leading specialist shoe trade association and as such provides support for approximately 1,000 shoe retailers, mainly in Germany. We spoke with Karim Grueber, CEO of Holmenkol, about the strategic background to the move. >>

• China - emerging nanotechnology innovation hub
  Governments around the world are currently investing USD 10 billion per year in nanotechnology research and development with an annual growth rate of 20%. According to the nanotechnology consulting firm Cientifica, total government funding to date will amount to USD 65 billion by the end of 2011, by 2014 it will be USD 100 billion. The highest growth rates will be seen in Asia and in particular China. We want to take a look at developments there, a piece by NanoGlobe Pte Ltd, strategic partner of Nanostart AG. >>

• “Forbes:” Russia Makes a Successful Comeback as a Technology Location
  Russia’s researchers were always among the world’s best. During the Cold War, Russia and the U.S. competed in the race to the moon. After the fall of the Iron Curtain, many top Russian scientists left their home country to contribute to groundbreaking developments, e.g. in California’s Silicon Valley. Now the tables have turned again and Russia has long been an international pioneer in promoting progressive technologies >>

• Annual General Meeting of Nanostart AG: Focus on MagForce subsidiary
  This year’s Annual General Meeting of Nanostart AG was held on August 8, 2011. Around 50 shareholders and shareholder representatives attended the event at the Japan Center in Frankfurt/Main >>

• Media coverage >>

• Press releases >>

• Upcoming events >>

“Our investments in Singapore are developing favourably” - An interview with Andreas Kroell, Managing Director of Nanostart Asia, Singapore

With SimpliClear®, the Singapore-based start-up company BioMers Pte Ltd sets out to conquer the growing market segment of aesthetic orthodontics. Dental Tribune Asia Pacific spoke with the Managing Director of German investor Nanostart Asia, Andreas Kröll, about the company and its long-term prospects in the global market for orthodontic applications.

Mr. Kroell, your fund is currently invested in four technology-based companies in Singapore including BioMers. What was the reason behind this investment?

Andreas Kroell: BioMers is a National University of Singapore spin-off that was founded about five years ago. We have had an eye on the company for quite some time and finally decided to invest in the SimpliClear® technology in 2009, which in our opinion offered a very interesting treatment option that provided a unique combination with a of clear aesthetics and excellent clinical outcomes. At this time, the product did already exist, however, in a slightly different form, with standardised archwires. A few months later the product development of SimpliClear® was completed. Since then, the company has been focussing on the marketing side and how to manage its expansion.

How does SimpliClear wants to position itself in the market?

Andreas Kroell: The core proposition behind the SimpliClear® technology is its unique and almost invisible archwire that is made of a specifically designed composite that qualifies the product notably for use within the aesthetic segment. The aesthetic market is recognised as a large growth market in which there are a number of solutions available. Many of the current solutions, however, have limitations in terms of the patient cases that can be addressed, due to limitations in terms of clinical effectiveness. SimpliClear®, with its effectiveness in addressing a broad range of patient cases, offers a new standard of care in the aesthetic segment. The goal is to capitalize on the opportunity to combine a product delivering aesthetic benefit and predictable clinical outcomes.

Currently, your company owns 25 per cent of BioMers. What is your role in the company ?

Andreas Kroell: As a Venture Capital investor, the main focus has to be on the structures that make a company work. A vast part of this responsibility is to build  an appropriate organization and team. Currently, about twenty-five people, including company founders Dr. Mervyn Fathianathan and Renuga Gopal, are working for BioMers, but we assume that staff will almost double by the end of the year. With David Edwards as the new CEO, we now also have an experienced executive on board who will further help with the commercialization path of the technology.

What kind of impulses will Edwards be able to give to the company?

Andreas Kroell: Owing to his previous executive positions in global companies such as Johnson & Johnson and eye care manufacturer Bausch & Lomb, Edwards brings a lot of experience to BioMers in terms of developing successful business strategies, building strong teams and driving execution. This complements well with the excellent technical and industry knowledge of the founders' team. With his help, the team will manage the overall commercialization process from Singapore and gradually develop structures for global distribution.

Which advantages does Singapore offer as a development site for nanotechnologies?

Andreas Kroell: It is common knowledge that during the last decade the Singaporean government has put a lot of resources into research and development. In fact, the development of Singapore as a leading hub for life sciences and medtech innovation is one of the top economic priorities. In this context, the Singapore government provides considerable support to companies such as BioMers. Through this support, numerous innovations such as SimpliClear® have emerged that are now in the process of being released onto the market.

Moreover, the city state offers an excellent market environment for commercial enterprises including such things like legal security for the protection of intellectual property, the ease to do business or the availability of talent. On top of this, two of the world's largest growth markets, China and India, are lying at Singapore’s doorstep.

In which markets is the product already available?

Andreas Kroell: We recently completed the initial test marketing phase successfully. As a result, a large number of orthodontists in Singapore and the United States are already familiar with SimpliClear®. However, the market in Singapore with only approximately five million people offers limited opportunities for growth and so we are planning to further expand into key markets such as Europe and the US within the next 12 months. In those areas, we have also received market approval by the U.S. Food and Drug Administration and the European Union.

Do you intend to invest into other dental technologies?

Andreas Kroell: We are certainly looking into two or three other technologies, but will also focus on the current portfolio involving BioMers and three other companies in the nanotechnology segment. All our investments are developing favourably. At the moment, we are working on another round of financing for BioMers for the end of this year, which will give the company the financial capacity to build a larger production site in Singapore.

Thank you for the interview Mr. Kroell.

Nanosys technology for U.S. electric cars

Driving 55 miles on one gallon of petrol – at present, that seems quite a long way. After all, it corresponds to 4.3 liters per hundred kilometers. And this is the figure the U.S. president is aiming for with regard to the fleet consumption of U.S. car manufacturers for cars and pick-up trucks by 2025. These are responsible for 50% of U.S. oil consumption. Background: The aim is to reduce U.S. dependence on oil imports; positive side-effects will be lower CO2 emissions and less pollution. The new targets were announced at the end of July by Barack Obama and leading car manufacturers.

To achieve these targets, it will be necessary to optimize existing technologies and develop new ones. The Department of Energy has set aside a total of USD 175 million for the next three to five years in order to accelerate the development and application of new vehicle technologies. The sum will be used to support 40 projects in 15 States. The main goal is to optimize fuel consumption. The focuses will be better fuels and lubricants, lighter materials, longer-life and cheaper batteries for electric vehicles and components, more efficient drive technologies and much more. The project in which Nanosys is involved investigates ways of improving batteries for electric cars.

The initiative also hits home with the population since, according to a recent survey by Maritz Research, more than 40% of U.S. consumers consider their next car’s fuel consumption to be extremely important. The government’s program also hopes that the lower gas costs will compensate consumers for the acquisition costs of the low-consumption vehicles.

Nanostart press release on its holding Nanosys >>

Announcement by President Obama on improved fuel efficiency >>

Press release from the U.S Department of Energy on the subsidy program >>

″With our outdoor range we are moving away from the focus on winter business”

The outdoor market is growing. By its own definition, Holmenkol is an outdoor specialist whose products provide care for high-quality outdoor clothing as well as protection from water and dirt. The outdoor shoe area is another growing market segment.

What role does this outdoor orientation play in the cooperation with Sabu?

Grueber: This is a crucial factor. Our orientation towards the outdoor area is a shift away from the traditional focus on the winter business. And, of course, shoes are key part of the outdoors. Shoes are similar to outdoor clothing in that we experience a great differentiation between the models. The correct shoe depends on the activities and uses for which it is required. Proper care and cleaning are just as important for high-quality outdoor shoes, which can cost up to €300, as they are for outdoor clothing. Ultimately, the term ‘outdoor’ covers a very wide area. As soon as I put my shoes on and leave the house, I am “outdoors.” And these shoes have to be cared for. Of course, since many Sabu members sell sports and hiking shoes as well as normal shoes, we are not really penetrating whole new areas.  

Is good old-fashioned shoe polish in a can no longer up to the job?

Grueber: Conventional shoe polish in the can certainly does have a role to play. However, our portfolio is also concerned with effectiveness, intensity and how long the shoe care is effective. In other words, it depends on the type of care the customer is looking for and whether the external materials are high-quality ones such as a leather/textile mix. When it comes to complex mixed fabrics (Goretex/leather), traditional shoe polish is no longer suitable. Feet should also stay dry during activities in the rain; shoes should repel water and dirt. For this reason, we offer special waxes and sprays for waterproofing, care and cleaning.

Another advantage of our care range is application. A wax leather spray is sprayed on and not applied using a cloth. Our shoe cleaners with innovative brush/sponge applicators make it easier to clean shoes without actual direct hand-to-shoe contact. Convenience of application is just as important to us as good quality care and repelling water.

What expectations do you have of the new cooperation with Sabu?

Grueber: For us, it is primarily a strategic continuation of our care concept which we are already implementing successfully for the sports and outdoor markets. It is logical that we should systematically expand the concept to the shoe market where there is already a lot of overlap. After all, sports shoes, outdoor shoes, lifestyle and retro shoes are available in sports shops as well as specialized shoe shops. We also expect this cooperation to result in significant revenue growth during the 2012 fiscal year. We are well aware that by taking this step we are entering a market which is mainly served by traditional German shoe care companies. Our target is simply to offer the end consumer more alternatives.

Is the cooperation with Sabu concerned only with shoe care or also with care for outdoor clothing?

Grueber: There are of course a number of shoe retailers that devote part of their store space to textiles. We will of course also be offering our successful textile detergents and waterproofing solutions to such retailers.

Are you working on other forms of cooperation with sales partners?

Grueber: Yes. We are preparing to collaborate with a key player in the specialist sports trade in another German-speaking country.

Thank you for the interview Mr. Grueber.

Picture: Suzhou complex

China - emerging nanotechnology innovation hub

Governments around the world are currently investing USD 10 billion per year in nanotechnology research and development with an annual growth rate of 20%. According to the nanotechnology consulting firm Cientifica, total government funding to date will amount to USD 65 billion by the end of 2011, by 2014 it will be USD 100 billion. The highest growth rates will be seen in Asia and in particular China. We want to take a look at developments there, a piece by NanoGlobe Pte Ltd, strategic partner of Nanostart AG.

The Asia-Pacific region is one of the largest and fastest growing nanotechnology markets in the world. In the last five years, R&D spending in nanotechnology by governments within the Asia-Pacific region has reaches over nine billion dollars, with even stronger commitment for the next five years.

Today, China is advancing rapidly in nanoscience and technology. In particular, Chinese government launched major initiatives in areas of Energy, Manufacturing and Electronics in the past few years funded by the main government funding agencies, including the Ministry of Science and Technology (MOST), the National Science Foundation of China (NSFC) and the Chinese Academy of Sciences (CAS). In 2009, CAS launched “Solar Cell Action Plan” toward realizing solar cell as the main energy source by 2050. Printed electronics is emerging as a future electronics manufacturing focused area in China. With the support of CAS and Suzhou Industry Park (SIP), a comprehensive printed electronics R&D platform was established in Suzhou Institute of Nanotechnology and Bionics (SINANO). The Institute of Chemistry of CAS set up a pilot production line for nanotech-enabled printing plate technologies in 2009, showcasing the emerging low-cost and green printing electronics industry in China. To advance the fundamental research on nanomanufacturing, NSFC launched a program committed 150M RMB (25M USD) over 8 years to develop MEMS technology & system integration, characterization instrumentation, nano-carbon, and other cutting edge areas to fill the technology gaps in China advanced manufacturing today .

The city of Suzhou has been designated by MOST as "China's Nanotech International Innovation Cluster" and is emerging as the Silicon Valley in China. In the past five years, regional and provincial governments have invested substantially, built world-class infrastructure, and provided attractive incentives for international companies and high-tech entrepreneurs to establish R&D, manufacturing and business in the China-Singapore jointly developed SIP. Nowadays, SIP has housed 20,000 multinational and national companies, and is now home to Nanopolis Suzhou, a focal point for nanotech commercialization in China. A 10 billion RMB (about 1.5B USD) investment has been committed to build Nanopolis Suzhou (total one square kilometer in size) to further develop Suzhou's high-tech and nanotech enabled industries, including Printed Electronics, MEMS, Water Treatment, Electric Vehicle, LED/OLED and others. For more details, please download Suzhou Nanotechnology Capabilities Report from here >>

“Forbes:” Russia makes a successful comeback as a technology location

The U.S. business magazine, “Forbes”, recently revealed that Russia is increasingly using its enormous scientific potential to its own benefit, therefore offering investors promising investment opportunities.  
This trend has been observed for some years now. For example, the Russian government is making enormous sums of money available in order to develop the country into a leading technology nation.

Experts agree: There is no shortage of expertise in Russia. “Of all the major emerging nations, we prefer Russia when it comes to investment. However, what we especially like about Russia in terms of long-term investment is the fact that the country continues to have an excellent technological basis combined with an outstanding scientific background,” commented U.S. fund manager, Chris Laine.
 
On the other hand, the country still has some way to go with respect to successfully commercializing research results, in other words converting knowledge into marketable products and technologies. The challenge now is to fully realize the existing potential.

In order to utilize the enormous opportunities in the nanotechnology sector, the Russian government has established the joint-stock company, RUSNANO, which initiates projects on various levels and has, for example, created the nanotechnology fund “Kama Fund First” together with the governor of the Russian administrative region Perm and Nanostart AG. This is expected to result in new products and procedures based on nanotechnology that will find resonance on the international market.
 
Global groups including Boeing, Intel, Microsoft and Motorola have also long since relocated large sections of their development departments to Russia so as to benefit from the spirit of research there. Other international companies are planning to invest here in the years to come. Russian companies, too, are once again among the top players in the development of new technologies: antivirus software from Kaspersky Lab in Moscow, for example, is very popular among private users as well as companies throughout the world.
 
Go to “Forbes” online to find out why investors are increasingly turning their sights to Russia again following its comeback as a research and development location. >>

Annual General Meeting of Nanostart AG: Focus on MagForce subsidiary

The main topic at this year’s event was the performance of the share price. A key aspect of the speech by CEO Marco Beckmann was the Nanostart subsidiary MagForce. Developments in the portfolio, new developments in Asia and the planned market entry in Russia were also discussed.

Overall, Beckmann was optimistic regarding the condition of the company, which is being run cost-consciously and with the necessary foresight. The goal is to further advance the international expansion of the company.

After the speech by the CEO, the floor was taken by shareholders and shareholder representatives a total of eight times. Here, interest also focused on the Nanostart subsidiary MagForce AG and the company’s ongoing commercialization and financing strategy in particular.

There was also interest in the progress in the commercialization of other equity investments, such as Lumiphore, Namos and ItN Nanovation AG.
Furthermore, there were questions on the annual financial statements – including in particular the amount of write-downs and personnel expenses – and on the company’s dividend policy and the ADR program in the U.S. Interest was also expressed in business developments in Asia.

After voting, the Chairman of the Supervisory Board Dr. Alfred Krammer ended the Annual General Meeting around 5:30 pm. At the time of voting, 3,756,968 shares and the same number of votes were represented, corresponding to 63.25% of the share capital.

Nanostart would like to thank its shareholders for their participation in the Annual General Meeting and their confidence in the employees of Nanostart AG.

• Singaporean Prime Minister presents BioMers to the nation: In his speech to the nation on August 14, Lee Hsien Loong, Prime Minister of Singapore, introduces Nanostart-holding  BioMers as success story for Start-Up-companies, that was founded by students of the National University of Singapore (NUS). (BioMers at min 12:50). Video >>

• “Bracing success story with local, foreign student mix“: In the context of the Prime Ministers speech to the nation, the Singaporean daily newspaper reports about the success story of Singaporean Nanostart-holding BioMers.
  PDF Download (767 kB) >>

• August 05, 2011
  Nanostart AG publishes 2011 half-year figures >>

• August 11, 2011
  Nanostart-holding Nanosys: 11-million-USD-funding by U.S. Department of Energy >>

• August 15, 2011
  Singapore’s Prime Minister presents Nanostart holding BioMers to the nation >>

• August 22, 2011
  Holmenkol announces cooperation with Sabu >>

• September 06, 2011
  Zurich Capital Market Conference; Zurich/Swiss >>

• September 11 - 13, 2011
  Rodman and Renshaw Annual Investment Conference; New York >>

• September 21, 2011
  Nanotechnology: Research and Appication; Wiesbaden/Germany >>

• September 29, 2011
  Hamburg Investment Conference; Hamburg/Germany >>

Contact

Dr. Hans Joachim Duerr
Head of Corporate Communications

e-mail: presse@nanostart.de
website: www.nanostart.de

Nanostart AG
Goethestrasse 26-28
D-60313 Frankfurt am Main
Germany

CEO: Marco Beckmann
Supervisory Board: Dr. Alfred Krammer (chairman),
Prof. Wolfgang M. Heckl (vice chairman), Achim Lindner
Commercial register: Frankfurt am Main, HRB 74535

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