rusnano as a promoter of russian nanoindustry development

RUSNANO as a promoter of Russian nanoindustry development

Prof. Sergey Kalyuzhnyi, Head of Department of Scientific & Technical Expertise, Member of the Executive Board

Visit to Germany, May 2011 Sergey Kalyuzhnyi

JSC Rusnano - fabrication of nanoproducts

Established in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies

RUSNANO: facts and figures

Mission: to implement the state policy in the field of nanotechnology

Application task: commercialization of nanotechnology projects,

modernization of Russian industry, “smart jobs” creation

2

Russian Federation’s asset contributions in RUSNANO: $ 4.6 blnState guaranteed debt financing (bonds issuance): $ 5.7 bln

Russian Corporation of Nanotechnologies

Non-profit foundation - infrastructure, education, etc.

2007 – 2010 2011 -2015 2016 - …

Meeting with Scientific American representatives, May 2011 Sergey Kalyuzhnyi

Nanoindustry development

NANOINDUSTRY

Infrastructure

Investment projects

Education

Standardization/certification

Popularization

3

Motivation to invest

Motivation to research

Legal basis development

Motivation to be technically

competent


Russian Venture Company (RVC)

Bank for Development and Foreign Economic Affairs (Vnesheconombank)

RUSNANO

Investment fund of the Russian Federation, etc.

RUSNANO serves as the base institute of the innovation pipelines in the field of nanoindustry development

Innovations in RussiaInvestment block Target research

Federal Target Program

Russian Academy of Science etc.

Kurchatov’s Institute (Scientific coordinator of nanotechnologicalnetwork)

Government regulation

Special Economic Zones

Skolkovo

Priority areas, etc.

Business educationsystem development

Ministry of Science&Education

Presidential Academy of National Economy and Public Administration

RUSNANO


cash

flow

time

Project development: RUSNANO investment

start-up early growth mezzanineexpansiontest salesseed

stage IPO

VnesheconombankRussian Bank for Development

RUSNANO

RVC Seed Fund

“Bortnik Fund”, program START

Russian Venture Company

grants

Death valley


Financial support Non-financial support

Infrastructure: Equipment as service,

start-up incubation

Technical and investment expertise

at the pre-design stage; Certification and foresight

Management:Scheduled work with the project

company, assistance in marketing controlling the disposal of

investment in the interests of all shareholders

Corporate: RUSNANO’s minority share in all projects

Credit:Long-term and comparatively cheap money. Guarantee for loans

Friendly exit strategy:RUSNANO is not a VC fund

Requirement: (part of) business location in Russia

Support for co-investors: advantages and benefits

6


Debt Instruments

Project Financing

Equity Financing

n RUSNANO stake in a project company does not exceed 50% - 1 sharen Upon decision of the Supervisory Council at RUSNANO (exceptional cases) does not exceed 75% - 1 share

n Provision for a loan or a loan guarantee on preferential termsn Use of various forms of debt to finance project company operations (bonds, convertible bonds)n Leasing operations

Investment Period Up to 10 years (usually 4-6 years)

Co-investment Engagement

n State and private institutionsn Individual investorsn Financial institutionsn Private equity and venture funds

Provision of a Favorable Exit

n M&A with a strategic investorn IPOn Management/other stakeholders buyout and other

strategies

RUSNANO’s key services in financing

7

Meeting with Scientific American representatives, May 2011 Sergey Kalyuzhnyi 8

Mechanism of RUSNANO projects development

Proposal

Preliminary expertise

Technical and scientific expertise, control

measurement, worksite expertise, market research, patent

expertise, due dilligence

Scientific Council Committee of the investment policy

Supervisory Board Advisory Board< <

RUSNANO-RAS technology transfer center

Open window mechanism

Investigation of industry expectations

Analysis of RUSNANO projects

Analysis of world experience

Analysis of current technological trendsInternal scientific and

technological experts incl. experts working abroad

Executive Board

Board of directors

Potential

risks


S&T expertises held: 947Rejected at early stage: 238

Internal expertises: 616 (rejected: 220)Panel discussions: 56

Recommended for further consideration: 411At expertise or revision stage: 185

Supervisory Board< <

RUSNANO expertise: statistic data

Total proposals=1976

Analyzed by the Scientific Council: 249

Recommended for further consideration: 232Rejected: 18

Approved by the Board of Directors: 111* *including infrastructure projects


RUSNANO S & T experts by field

physicsmaterial sciencebiology and medicineenergy efficiencymeasurement methodsother

30

2619

17

5 3

12

159

75

57

24

11

12

by field (%, total 636)

by geography :international experts (total 95)

by geography :Russian experts (total 541)

USGermany

Franceother

4229

136

5

Israel

310

4727

161110

120

Moscow districtSPb districtNovosibirskKazanEkaterinburgTomskother


Priority areas of Russian Nanotechnology

Energy efficiency & Clean Tech.

Optics & Electronics

Nanomaterials

Coatings & surface

modification

Medicine & Pharmaceut

icals

q Energy productionq Energy usageq Energy storageq Energy transfer

q Molecular/clinical Diagnostics q Therapyq Surgery

q Optoelectronics q Microelectronicsq Supply/microwave electronics

q Metals and alloysq Ceramic materialsq Semiconductorsq Carbon materialsq Plastic materialsq Composite materials

q Physical methodsq Chemical methodsq Electrochemical methods q Traditional coatings


RUSNANO projects by field

nanomaterialsoptics and electronicsmedicine and pharmacologyenergy efficiencycoatings/surface modificationother

under financing(total 47)

approved by theBoard of Directors,pending for financing(total 50)

approved by the Scientific council,pending for further consideration (total 131)

14

983

94

12

159

75 2

57

20

24

11

1012


0,81,7

3,96,5

10,0

0,52,4

4,7

8,0

11,3

15,7

19,3

30,0

2008 2009 2010 2011 2012 2013 2014 2015

0,03

Sales Targets of Russian Nano-Enabled Products

Total sales of Russian nano-enabled products

Sales of companies financed by RUSNANO

RUSNANO: key goal – portfolio company sales growth

13

bln. $


RUSNANO investment projects by geography


Thank you for attention!

rusnano as a promoter of russian nanoindustry development

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