General Announcement::Sustainability Report 2020 & Business Update 4Q 2021

SUSTAINABILITY REPORT 2020

CONTENTS

1	2	3	5
Corporate	Our	Sustainability	Chairman
Profile	Business	Journey	Statement

8	14	15	27
Approach	Our	Sustainable	Environment
to Sustainability	Performance	Innovation

31	35	37	41
Social	Governance	Sustainability	GRI index
		Scorecard

View our report online: http://www.nti-nanofilm.com/

Credit Suisse (Singapore) Limited and Oversea-Chinese Banking Corporation Limited are the Joint Issue Managers for the initial public offering of shares in, and listing of, the Company on the Mainboard of the SGX-ST on 30 October 2020.

CORPORATE PROFILE

Nanofilm Technologies International Limited ("Nanofilm" or the "Company"), together with our subsidiaries (the "Group") is a leading provider of nanotechnology solutions, leveraging on our proprietary technologies and core competencies in research & development ("R&D"), engineering and production, to provide technology-based solutions across a wide range of industries. Nanofilm's solutions serve as key catalysts, enabling our customers to achieve high value-add advancements in their end-products in an environmentally sustainable manner.

Nanofilm offers surface solutions based on vacuum deposition, including using our patented Filtered Cathodic Vacuum Arc ("FCVA") technology. Nanofilm's nanotechnology-based solutions are utilised in a wide range of industries such as computer, communications and consumer electronics ("3C"), automotive, precision engineering, printing and imaging, and new energy.

Listed on the Mainboard of Singapore Exchange Securities Trading Limited ("SGX-ST") on 30 October 2020, Nanofilm is a constituent of the FTSE ST China Index, FTSE ST Large & Mid Cap Index, FTSE ST Mid Cap Index and MSCI World Small Cap Index.

Currently, Nanofilm owns more than 70 patents and trademarks, not including over 20 applications which are pending. The Group has over 270 employees worldwide who are engaged in R&D and engineering and it has achieved a daily turn-around of high volume, high mix parts capacity of over 5 million.

VISION

Integrating nanotechnology in advanced

materials and nanoproducts into our daily lives.

MISSION

The key catalyst to enable advancement of our customers' products in a sustainable manner.

		VALUES
SINCERITY		SERVICE		INNOVATION		EFFICIENCY
Our stakeholders are our		Top class consistent service		Continuous innovation		Efficiency and effective
partners. We value long-		and quality to all our		is in our DNA, creating		processes to maximise
term relationships and		stakeholders.		unparalleled value in a		outputs with best use of
stay our course as trusted				responsible sustainable		resources, underpinned by
technological partners.				manner for our stakeholders.		our solid scalable production
						system with high variability
						capability to cater for high
						volume, high mix projects.

CONNECTING DEEP TECH WITH	1
THE COMMERCIAL WORLD

OUR BUSINESS

Nanofilm is a global leading technology solutions provider with strong innovation DNA. Innovation has been ingrained since 1999 as a high-tech spinoff from Nanyang Technological University ("NTU"), focused on advanced material science and nanotechnology. In the beginning, with virtually no market positioning and limited capital, our Group succeeded where many thought we could not when we successfully competed against technology giants from America, Europe and Japan, whose customers were accustomed to proven conventional technologies.

Against all odds, we overcame numerous fate-defining challenges and went on to revolutionise the industry by redrawing material science boundaries, exceeding all expectations.

Our business model has been constantly evolving in accordance with our strategy, and it is designed and crafted for business excellence.

BUSINESS UNIT #1: ADVANCED MATERIALS

Provides advanced materials through surface solution services based on our proprietary vacuum coating technologies and processes. Our surface solution services involve the use of our FCVA and FCVA-hybrid with physical vapour deposition ("PVD") coating equipment to deposit our proprietary advanced materials on key components and parts of the global supply chain, enabling our customers to achieve their desired functional and/or decorative requirements for their end- products.

BUSINESS UNIT #2: NANOFABRICATION

Manufacturer and supplier of nanoproducts, which are used by our customers as components for the smooth functioning and performance of certain parts of their end-products, due to their nanoscale and/or nanofeatures. We utilise our nanofabrication technology and software to fabricate nanoproducts which are designed to fit the specific size and shape requirements specified by our customers as well as to provide the required functional properties to their end- products.

BUSINESS UNIT #3: INDUSTRIAL EQUIPMENT

Manufactures and sells turnkey equipment systems ranging from coating equipment to auxiliary equipment, such as cleaning lines to automation systems, which are installed at our customers' production lines. We provide our customers with not just the physical equipment, but also customised operating software for our systems and training, as well as spare-parts, customer service and other forms of after-sales support.

NANOFILM'S TECHNOLOGY-BASED SOLUTIONS ARE AN INTEGRAL PART OF OUR DAILY LIVES

Today, our technology-based solutions are utilised in a wide range of industries such as 3C, automotive, precision engineering, and printing and imaging. Our products and services are integral to the smooth functioning of many technologies and tools which are essential to our modern daily lives.

2	NANOFILM TECHNOLOGIES	SUSTAINABILITY
	INTERNATIONAL LIMITED	REPORT 2020

SUSTAINABILITY JOURNEY

Since 1999, Nanofilm has shown a strong track record in acquiring and retaining customers, including market leading blue-chipend-customers. Our solutions serve as key catalysts that enable our customers to achieve high value-add advancements in their end-products, in an environmentally sustainable manner.

It has been a transformational journey for us, one after another, to deliver solutions for a greener better world. Grounded by our deep nanotechnologies ("Deep-Tech") and facilitated by our strong governance and operational systems, we have repeatedly redrawn material science boundaries by embedding our technology-based solutions, as enabling catalyst, in a wide number of mission critical applications of both depth and breadth, not limited by any industry or product.

HOW WE DELIVER

We place a high emphasis on research and development ("R&D") in fundamental research and are technologically-focused through our proprietary equipment, FCVA advanced materials and nanofabrication.

We have grown and developed alongside our customers, through our continuous focus on R&D and innovation, often with R&D initiatives being undertaken in joint collaboration with our customers, and by leveraging our strong in-house engineering capabilities as well as our solid efficient production capabilities.

PROPRIETARY FUNDAMENTAL

RESEARCH PLATFORM

Biomedical

IoT Optics

• Strengthen in-house proprietary research platform to develop next generation technologies
• Build sustainable competitive advantage by maintaining our IP rights
• Continue to innovate on existing technology (e.g., copper plasma) to further improve their scope into new applications and end-markets

CUSTOMER-CENTRIC

CO-DEVELOPMENT MODEL

3C	FMCG
Existing end-markets	New end-markets

• Customer-focusedapproach to accelerate time to market for innovative offerings
• Seek to engage at an early stage of customers' product development and design process
• Collaboration enables pioneering of value-added solutions and provides access to a ready market

Strong IP Platform		Pipeline Quality		Customer-focused R&D Spend
>70 existing patents and		Multiple innovative products in		>60% of R&D and engineering
trademarks; additional >20		pipeline		projects in 2020 initiated as a
patents under application				result of customers' requests

CONNECTING DEEP TECH WITH	3
THE COMMERCIAL WORLD