Why invest in Canatu?

Canatu is a fast-growing deep technology company that creates advanced carbon nanotubes (Canatu CNTs), related products, and manufacturing equipment for the semiconductor, automotive, and medical diagnostics industries. These industries require very high-quality carbon nanotubes and offer Canatu strong growth and profitability potential.

Canatu’s key strengths

1. Canatu is a rapidly growing deep technology company with attractive margins
2. Current, high-growth focus markets are estimated to grow to EUR 2–4 billion by 2030
3. Customer relationships with leading global companies
4. Differentiated IPR-protected technology supporting a strong competitive position
5. Proven and efficient mass manufacturing capability
6. Business model enabling scalable, asset-light growth with high-margin potential
7. Technological expertise with experienced management attracting global talent

Relying on these key strengths, Canatu has set long-term financial targets of annual revenue of over EUR 100 million and adjusted¹⁾ EBIT margin of over 30 per cent of revenue in 2027.

1. Canatu is a rapidly growing deep technology company with attractive margins

Canatu is a rapidly growing deep technology company that uses its carbon nanotube (Canatu CNT) technology platform to create advanced CNTs for products that significantly transform industries.

Canatu’s net turnover has grown strongly from EUR 1.5 million in 2020 to EUR 13.6 million in 2023, reflecting a compound annual growth rate of 108 per cent. The high net turnover growth has been paired with an attractive gross margin development, reaching 71 per cent in 2023 compared to 61 per cent in 2021.

2. Current, high-growth focus markets are estimated to grow to EUR 2–4 billion by 2030

Canatu’s carefully selected focus industries (semiconductor, automotive and medical diagnostics) are all experiencing technological disruption. Semiconductor must service the growing demand for high-end chips driven by advancements in artificial intelligence and computing, automotive is seeking to shift into autonomous and assisted driving and electric vehicles, and medical diagnostics is in some parts of the care chain aiming to increasingly transition to point-of-care testing from laboratory-based testing. Canatu is well-positioned to support the industry shifts and provide high value-add via CNT solutions.

3. Customer relationships with leading global companies

Canatu’s customers are typically large global companies that hold strong market positions within their respective fields of business.

The potential customer universe in semiconductor includes foundries, i.e. manufacturers of EUV semiconductors whilst others are manufacturers of EUV pellicles or photomask inspection machinery.

In automotive, the potential customer universe includes OEMs, i.e. car manufacturers under a certain brand whilst others are component or sub-system suppliers to the industry.

The potential customer universe in medical diagnostics is only emerging, given that Canatu expects the first product to enter the market in 2025-2026. However, as a key part of its go-to-market strategy, Canatu is in and extending discussions with certain leading global companies in the human health and veterinary sectors to find suitable partners.

In 2023 and 2024 the company has invoiced almost 50 customers most of which are engaged either in semiconductor or automotive. All customers who have entered into mass-manufacturing relationships with Canatu remain customers.

4. Differentiated IPR-protected technology supporting a strong competitive position

Advanced CNTs required in products that Canatu manufactures to its focus industries are in Canatu’s view difficult to manufacture and customise in scale, as the applications require highly sophisticated material and process technology. These requirements characterise advanced CNTs as a high barrier of entry industry where there are only few or no capable competitors in each of Canatu’s focus areas.

Canatu’s intellectual property assets include 130 patents and over 50 patents pending across 38 distinct families, as well as several trade secrets pertaining to Canatu’s Dry Deposition™ method, manufacturing (reactor) technology and different applications for semiconductor, automotive, and medical diagnostics industries.

5. Proven and efficient mass manufacturing capability

Canatu started to mass manufacture its first CNT products (touch sensors for automotive) in 2015 and has since then manufactured nearly 1 million such sensors with no field returns, according to Canatu’s management’s information. The company can commit to manufacturing high quality CNTs in high volumes to critical applications trusting its mass manufacturing experience and efficiency.

6. Business model enabling scalable, asset-light growth with high-margin potential

Canatu’s business model builds on and leverages its efficient and proprietary Dry Deposition™ CNT technology platform that is expected to support asset-light growth and attractive gross margin potential in both semiconductor and automotive.

Canatu operates through two business models: either selling CNT products directly or selling CNT reactors and licensing the related technology so that customers can produce CNT products under a limited license.

7. Technological expertise with experienced management attracting global talent

Canatu’s success is built on experienced management and highly skilled employees. At the end of June 2024, Canatu had 127 employees from around 30 countries, with approximately 20 per cent holding a doctorate or being doctoral candidates.

The success has been demonstrated by technological advancements in CNT membranes and film heaters for ADAS and the rapid growth in net turnover in recent years. The management’s commitment to building a supportive and inclusive workplace culture ensures that employees are not only skilled but also highly satisfied and engaged. In addition to the financial performance, the Management Team has demonstrated its effectiveness by building long-term relationships with key players within Canatu’s respective industries.

¹⁾ adjusted for goodwill amortisations under the Finnish Accounting Standards