General Announcement::Utilisation of Proceeds

NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (THE UNITED STATES), EUROPEAN ECONOMIC AREA, THE UNITED KINGDOM, CANADA, JAPAN, AUSTRALIA OR ANY OTHER JURISDICTION OUTSIDE SINGAPORE

THE SECURITIES OF NANOFILM TECHNOLOGIES INTERNATIONAL LIMITED HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

NANOFILM TECHNOLOGIES INTERNATIONAL LIMITED

(Company Registration Number 199902564C) (Incorporated in Singapore on 13 May 1999)

ANNOUNCEMENT ON UTILISATION OF PROCEEDS

Capitalised terms used herein, unless otherwise defined, have the meanings as defined in the prospectus of the Company dated 23 October 2020 and registered by the Monetary Authority of Singapore on 23 October 2020 (the "Prospectus").

The Board of Directors of Nanofilm Technologies International Limited (the "Company") wishes to update the utilisation of the gross proceeds of S$200.0 million ("Gross Proceeds") raised from the initial public offering ("IPO") and listing on the Main Board of Singapore Exchange Securities Trading Limited as follows:-

	Amount	Last
	allocated (as	announced	Amount utilised
	disclosed in the	balance as at	from 1 July 2021
Use of Proceeds	Prospectus)	30 June 2021	to 31 August 2021	Balance
Capital expenditure on development and	S$'000	S$'000	S$'000	S$'000
building of new machinery for the
Company's Advanced Materials BU and
purchase of new machinery to support
the Company's Nanofabrication BU	90,000	85,104	8,116	76,988

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 ("Offering"). Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Limited and Oversea-Chinese Banking Corporation Limited are the Joint Global Coordinators for the Offering. Citigroup Global Markets Singapore Pte. Ltd., CLSA Singapore Pte Ltd, Credit Suisse (Singapore) Limited and Oversea-Chinese Banking Corporation Limited are the Joint Bookrunners and Underwriters for the Offering.

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Use of Proceeds

R&D and engineering for entry into new end industries and new areas and/or products in existing business segments

Construction, refurbishment and renovation of new and existing production facilities

• Renovation (including refurbishment, furniture and fittings) of Shanghai Plant 2
• Construction, refurbishment and renovation of new and existing production facilities

General corporate and working capital purposes(1)

Payment of underwriting commissions and offering expenses

TOTAL

Note:

Amount	Last
allocated (as	announced	Amount utilised
disclosed in the	balance as at	from 1 July 2021
Prospectus)	30 June 2021	to 31 August 2021	Balance
S$'000	S$'000	S$'000	S$'000
50,000	40,716	2,634	38,082

20,000	15,480	2,013	13,467
10,000	7,971	426	7,545
20,900	11,109	2,342	8,767
9,100	(505)	-	(505)
200,000	159,875	15,531	144,344

1. Usage for general corporate and working capital purposes comprised the payment of salary related costs.

Except as previously announced, the use of the proceeds is in accordance with the intended use as disclosed in the Prospectus. The Company will make periodic announcements as and when the balance of the Gross Proceeds is materially utilised.

BY ORDER OF THE BOARD

NANOFILM TECHNOLOGIES INTERNATIONAL LIMITED

Kay Lim Kian Onn

Chief Financial Officer

11 October 2021

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IMPORTANT NOTICE

This announcement is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of securities of the Company in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or to be relied upon in connection with, any contract or commitment whatsoever.

The value of the Shares and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, the Company or the Joint Bookrunners and Underwriters or any of their respective affiliates. An investment in the Shares is subject to investment risks, including the possible loss of the principal amount invested. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.

This announcement is not an offer or sale of the Shares in the United States. The Shares have not been and will not be registered under the Securities Act, or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. Any public offering of the Shares in the United States would be made by means of a prospectus that would contain detailed information about the Company and their management, as well as financial statements. The Company does not intend to conduct a public offering of the Shares in the United States. The Shares are being offered and sold outside the United States (including to institutional and other investors in Singapore) in reliance on Regulation S under the Securities Act.

This announcement is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of the Securities Act or the applicable laws of other jurisdictions.

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