Slide 1: Integrated Photonics: The Next Wave in Photonics Growth
Integrated Photonics The Next Wave in Photonics Growth Dr. Suresh Venkatesan, CEO POET Technologies May 2016
Slide 2: Safe Harbour
Safe Harbour This material will provide “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward -looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and the Company is relying on the protections of the s
Slide 3: Agenda
1. Executive Summary 2. POET Technologies ﹘ Update and Outlook Agenda 3. Acquisitions 4. Creating shareholder value 5. Conclusion © POET Technologies Inc.
Slide 4: Executive Summary
Executive Summary • POET team executing to plan on Lab to Fab to Monetization of it’s highly disruptive integrated opto-electronic technology • Diversified business plan supporting monetization strategy to address large total available market • DenseLight (Closed) and BB Photonics (Ongoing) acquisit
Slide 5: The Business
The Business • POET will manufacture and market Integrated Opto-Electronic solutions - Broad applications inclusive of sensing and display Our Business • DenseLight designs, makes and markets Photonics devices to sub-system solutions for test & measurements, structural health monitoring, healthcare,
Slide 6: A Compelling Business Investment Proposition
A Compelling Business Investment Proposition Global • Well established presence through the DenseLight acquisition Footprint • Global manufacturing partnership enables scalable growth • Strong and experienced leadership team in place with extensive technological, industrial People and commercial exp
Slide 7: POET Technologies Update and Outlook
POET Technologies Update and Outlook © POET Technologies Inc.
Slide 8: The Technology - POET puts the pieces together
The Technology - POET puts the pieces together Transmission Electron Micrograph • First gallium arsenide semiconductor technology to support integration of high speed electronics and high speed photonics • POET enables a Moore’s Law like functional integration to the field of optics • Compatible wit
Slide 9: POET adds to its portfolio through DenseLight and BB Photonics acquisitions
POET adds to its portfolio through DenseLight and BB Photonics acquisitions • InP based Photonics Sensing and Laser Technology • InP manufacturing capability with scalable technology • Unique and differentiated IP that allows POET to expand its reach to Data Center and Long Haul applications ﹘ Wavel
Slide 10: Key Recent Accomplishments
Key Recent Accomplishments • Completed process transfer from lab to high volume manufacturing foundry on 6” wafer substrates ﹘ Process optimization for some critical process steps underway • Results from first 6” foundry processed wafers demonstrated best in class small signal Resonant Cavity Detect
Slide 11: Work in Progress – Key Current Activities
Work in Progress – Key Current Activities • Lab to 6” volume manufacturing fab transition continues per plan ﹘ Optimize Resonant Cavity processing and performance ﹘ Improve characterization capabilities ﹘ Test Automation, Database and Data analytics in support of increased wafer volumes from foundry
Slide 12: POET Technologies Update and Outlook
POET Technologies Update and Outlook © POET Technologies Inc.
Slide 13: Rapid Growth in Global Network Traffic Is Helping Fuel A Significant Growth Cycle
“SMAC” Rapid Growth InDriving Hyper Global Network Network Traffic Is Helping Fuel A Expansion Significant Near‐Term Growth Cycle INTERNET OF THINGS Global Carrier Capex Spending(5,6) Data Center Network Equipment Spend(7) ’13 ‐’18 ’13 ‐’18 CAGR: $13.2B CAGR: $378.3B 1.7 14.5 9.2% 145.7% 25B $350.8B
Slide 14: The need for Integration in Data Centers
The need for Integration in Data Centers POET is designed to enable true integration of photonics and/or electronics, providing smarter system partition capabilities Data Centers are primarily about Why is Integration Important ? $/Gbit for getting data from point A • Integration enables new and inn
Slide 15: POET offers a superior solution relative to Copper
POET offers a superior solution relative to Copper • POET integrates electronics and optics on a single chip, significantly improving data center links ﹘ Up to 30X lower power per link (compared to copper) ﹘ Up to 10X decrease in size ﹘ Up to 10X lower cost Higher Margins Lower For Data Center POET
Slide 16: Value Proposition
Value Proposition • Disruptive reduction in both component cost, module cost and form factor • Initial focus on 10G,/40G solutions with Short Reach (< 100m) Direct Attach Copper Conventional AOC POET Optical Engine Power! 3W! 0.5W! <0.5W! Cost! X! 3X! 1.5X! Form Factor! -! 25mm2! ~5mm2! Weight, Flex
Slide 17: POET – Component Cost against Competition
POET – Component Cost against Competition Component Example Opto-Electronic Components Benchmark Die Cost (‘$) Single Detector/TIA 1 33X Quad Detector/TIA 1 27X Single Channel Transceiver (Design I) 1 2X Single Channel Transceiver (Design II) 1 19X Quad Channel Transceiver (Design I) 1 4X Quad Chann
Slide 18: POET can enable “on-chip” optics
POET can enable “on-chip” optics On the Chip $50+ billion market Inside the Box ASIC/uP/Router/Switch On the Board $25+ billion market t arke ASIC/uP/Router/Switch 2X M Outside the Server Server to Server $5+ billion market ASIC/uP/Router/Switch POET’s unique value proposition could enable an attach
Slide 19: Short Reach Communications
Short Reach Communications Transceiver Product Development Roadmap Today Single and Quad Transceivers Line Speed : 25G Single and Quad Transceivers Line Speed : 10-12.5G Single and Quad Detectors Line Speed : 10-12.5G / 25G POET Op:cal Engines Detector + TIA Technology Transfer 2015 2016 2017 2018 ©
Slide 20: Pursuing New Opportunities
Pursuing New Opportunities • Announced JDA with IMRE Singapore ﹘ Enables the creation of smart pixels for potential AR (augmented reality) / VR (virtual reality) applications ﹘ Evaluating translation of the POET epitaxy stack to GaN • Advanced stage discussions for NRE revenues over next 12 months ﹘
Slide 21: Acquisitions
Acquisitions © POET Technologies Inc.
Slide 22: DenseLight and BB Photonics Acquisitions
DenseLight and BB Photonics Acquisitions Revenue & Fab Technologists Technologies, IP/Know How Immediate access to Product Tripling number of Doubling of the technology Revenue and Qualified Fab technologists portfolio Operations SLED, NLL Product Operations Infrastructure for further Infrastructure
Slide 23: Expansion of Operations and Product Portfolio
Expansion of Operations and Product Portfolio Operations Business • 2inch InP & GaAs • Broadband Super Lumiscent LED (SLED) • Upgradeable to 3” or 4” [US$1.6M in upgrade costs] • Narrow Line Width Lasers (Gain Chip + FBGL) • Total past investment – S$37M • Programmable IR Light Sources • Wafer capac
Slide 24: Facility Ownership
Facility Ownership • Ownership of fully functional ISO9000 compliant facility • Reduces manufacturing and sales learning curve • Reduces future capex • Faster development of POET technology • Sales channels and sales team in place • Negotiating government support for technology © POET Technologies I
Slide 25: Applications of Photonics Sensing
Applications of Photonics Sensing Test & Measurements [TAM : $10B] Structural Health Monitoring [TAM : $6B] Monitoring • Smart Grid – Current Sensor for Power Grid • Communication and Test – CommTest • FBG-sensor based Fiber Optic Sensing • Component-Material Testing / Metrology – CMT • BOTDR based
Slide 26: Expanded Available Markets in Data Communications
Expanded Available Markets in Data Communications POET POET + ACQUISITIONS REACH! 0-100m! 100m-2km! >10km! Data Centers! Data Centers! Metro / LAN! - DAC replacement, AOC’s! Pluggable Modules! FTTH / PON! APPLICATIONS! Consumer! Telecom! - Thunderbold, HDMI! On Board / On Chip! VCSEL / InP PIC InP I
Slide 27: Acquisitions enhance the total POET SAM
Acquisitions enhance the total POET SAM Short Reach SAM $0.5B – $1B ▪ DenseLight and BB Photonics provide single mode InP technology, extending POET’s reach in Data Center market $600M $2.3B ▪ Numbers do not include DAC TAM Long Reach SAM $2B – $3B © POET Technologies Inc. 27
Slide 28: Long Reach Communications
Long Reach Communications Laser & Transceiver Product Development Roadmap Telecom ONU 2.5G DFB (1310nm) Access OLT 2.5G DFB (1490nm) Networks [GPON, 10G EML (1310nm) EPON, NG- PON] Cost Efficient 2.5G & 10G Solu:ons CWDM and DWDM CWDM and DWDM PIC Solu:ons Solutions (CW) DataComm 10G/40G ROSA/TOSA 10G
Slide 29: Highlight of the Acquisitions
Highlight of the Acquisitions • Immediately revenue accretive to POET’s financial results • Establishes immediate product and market presence • Path to EBITDA positive for combined company in latter half of 2018 • Enhances factory utilization, Reduces total cost of development, Leverages shared serv
Slide 30: Summary
Summary © POET Technologies Inc.
Slide 31: Enhancing Shareholder Value
Enhancing Shareholder Value • Highly disruptive opto-electronic semiconductor technology and broad IP portfolio • Broad Product Portfolio and Application Space - Expanding reach in Data communications and Sensing markets • Expanded III-V material base including factory operations • Customer Focus an
Slide 32: Thank You
POET technologies =Thank You