2021 Full Year Annual Report

HIGHLIGHTS

OPERATIONAL AND COMMERCIAL HIGHLIGHTS

CONTENTS

Strategic report

1. Highlights
2. At a glance

1. Our products

1. Chairman's statement

08 Chief Executive Officer's review

Coatings:

• Approval for use of a new graphene- enhanced primer with Blocksil, to complement use of its AGM graphene- enhanced Top Coat MT product launched to consumers in January 2020. This system is being used with Network Rail and RTE
• Strong customer uptake expected from products being developed with Stanvac and a leading floor coatings manufacturer
• New customer product launches:
  y Two new wax based car care products from EZ Car Care
  y Two new wax based car care products from Infinity Wax
  y Two new wax based car care products from Constellation Chemicals
  y Tru-Tension launched new detailing spray product
• AGM product launches:
  y A ground-breaking new range of eco-friendly graphene nanoplatelet dispersions that will enable paints, coatings and composite materials customers to improve the sustainability of their product formulations in response to growing market pressures
  y Launch of Innovation Accelerator programme
• Scale up validation is due to commence with the UK Environment Agency at sites in the UK whereby our formulated products will be tested on structure applications for environmental exposure. A longer-range environmental exposure plan has also been started with French environmental testing site, Institut de la Corrosion
• Growth in total pipeline engagements to 200 (2020: 117), including 19 completed developments (2020: 8), and resulting revenue potential to £3.7 million (2020: £3.6 million)

Composites and functional materials:

• Positive continuing progress with core composites customer
• Potential for TP300 product for thermal adhesive and heat-dissipation applications

Distribution:

• Further distributors added to enhance our regional presence in Turkey (Gobarr) and South Korea (ManHo Polymers) and growth of our customer-facing representation headcount to around
  89 including AGM's direct sales team

Strategic highlights:

• Fundraise of £5.5 million (net) announced in January 2021 and successfully completed in February 2021, extending the Group's cash runway beyond 31 January 2023
• In partnership with the EU REACH Graphene Consortium, achieved ECHA accreditation for volume supply of graphene powder (up to 10 tonnes' volume), addressing a significant barrier to deployment at scale. Central regulatory workstream with EPA for USA market
• Green energy applications identified as a new area of opportunity for our platform dispersion and application technology with initial focus on hydrogen/battery applications
• Branding refresh completed together with new website and improved communications platform
• Continuing IP development
• Cross-tradingof shares in USA on OTCQX Best Market in USA from July 2021

Post year end

• Four new customer product launches were announced on 20 September 2021 - one of which was before 31 July 2021 and is included in the numbers above
• Joined the Graphene Engineering and Innovation Centre (GEIC) at the University of Manchester as an associated Tier II Partner through the special conditions offered exclusively through The Graphene Council

1. Technology development roadmap
2. Sustainability

33 Principal risks and uncertainties

36 Financial review

1. Key performance indicators
   Corporate governance
2. Board of Directors

1. Senior management team

1. Corporate governance

1. Audit Committee and Nomination Committee reports
2. Remuneration report

1. Directors' report

57 Statement of Directors' responsibilities

Financial statements

58 Independent auditor's report

1. Consolidated income statement and statement of comprehensive income
2. Consolidated and Company statement of financial position
3. Consolidated statement of changes in shareholders' equity

1. Company statement of changes in shareholders' equity
2. Consolidated and Company cash flow statement
3. Group and Company accounting policies

72 Notes to the consolidated financial statements

85 Corporate information

Industry leader

We're proud to be members of the British Coating Federation, the North East England Chamber of Commerce, The Graphene Council, the American Coatings Association, OCCA, NEPIC and the Nanotechnology Industries Association (NIA).

Smaller particle size

AGM's graphene nanoplatelets

3,000 times thinner

Just 1g contains more 11,200,000,000,000

individual particles

Reduced water permeability

The addition of just 0.1% graphene can increase a water particle's journey through a single coat of standard industrial

paint by 120 times!

Paints and coatings Unique graphene additives dispersed in a range of resins and solvents offer outstanding performance in industrial coatings for longer lasting protection

Polymers and composites High aspect ratio graphene nanoplatelets enhance key properties through advanced materials engineering

Batteries and energy storage

The large surface area, high levels of thermal and electrical conductivity, low density, mechanical strength and morphology of AGM's graphene nanoplatelets, make them ideal for electrochemical energy storage systems

Car care

The addition of graphene into car care systems can significantly enhance the properties of waxes, polishes and detailing products, offering increased protection over time

Thermal adhesives A range of thermally conductive, low density resin paste adhesive systems can also be designed for bonding, potting, sealing and encapsulation for aero, space, electronics and green energy