POET Technologies Inc. · NASDAQ:POET
POET Technologies — Needham Technology & Media Conference 2021
38 slides from POET Technologies's conference presentation, May 18, 2021
Slide 1: POET Technologies Inc. Investor Presentation
Investor Presentation May 2021 POET Technologies Inc. Needham Technology & Media Conference May 18, 2021 11:00 a.m. EDT
Slide 2: Safe harbor
Safe harbor This presentation contains forward-looking statements and forward-looking information within the meaning of U.S. and Canadian securities laws, including but not limited to statements relating to revenue potential, growth and/or projections, as well as the expected performance of products
Slide 3: Presentation Outline
Presentation Outline Photonics and POET Technologies Overview Strategy, Markets and Products Operations, Growth and Revenue Plan Investment Highlights PTK: TSXV | POETF: OTCQX © POET Technologies Inc. | PUBLIC 3
Slide 4: Photonics is an Enabling Technology
Photonics is an Enabling Technology Photonics is the technology of generating and harnessing light Cutting-edge uses of lasers, optics, fiber-optics, and electro-optical devices in numerous and diverse fields Photonics applications and devices require the integration of electronic, photonic and opti
Slide 5: Photonics End Market Applications & Market Size
Photonics End Market Applications & Market Size Communications Computing Sensing Data and Tele- Edge Artificial Medical Autonomous Communications Computing Intelligence Technology Vehicles Data Centers Machine to Machine Neuromorphic Point-of-Use LIDAR Systems Switching / 5G Networks Internet of Thi
Slide 6: Conventional Approaches to Assembling Photonics Devices are Expensive
Conventional Approaches to Assembling Photonics Devices are Expensive in Both Capital and Labor Assemble multiple components and sub-assemblies one at a time - align and optimize signal (“active alignment”) with each component and sub-assembly placement No Economies of Scale - linear (1 to 1) relati
Slide 7: POET's Technology Solution
POET’s Technology Solution Adding a Novel, Patented Waveguide Layer on a Conventional Semiconductor Wafer Enables the Integration of Electronic and Photonic Components at Wafer-Scale Electrical Typical electrical interposer with high-speed electrical connections among devices has been commonly used
Slide 8: POET Fully Integrates Components at Wafer Scale
POET Fully Integrates Components at Wafer Scale Full integration of multiple active components with passive alignment at wafer scale using semiconductor assembly techniques Large Economies of Scale - non-linear (> 1 to 1) relationship between unit output and capital invested How POET Wins ✓ Simplifi
Slide 9: POET's Optical Interposer Platform
POET’s Optical Interposer Platform Low loss Self Aligned CMOS Compatible Micro Mirrors and Low Loss for out of Mechanically Waveguides plane Interlocking - Compatible with a coupling Fiducials wide range of l Multiple External Cavity Eutectic Solder Athermal Lasers - Low Loss Configurations - High D
Slide 10: From Technology to Product | POET Optical Engines
From Technology to Product | POET Optical Engines Multiple years of development and interrelated projects yielded several industry-first achievements by POET and a fully-functional OPTICAL ENGINE INTERPOSER PASSIVE DEVICES ACTIVE DEVICES ASSEMBLY & BACKEND OPTICAL ENGINE Architecture & Mutiplexers F
Slide 11: Benefits of POET's Optical Interposer Platform
Benefits of POET’s Optical Interposer Platform The benefits of POET’s Optical Interposer add up to a truly disruptive entry into large-scale photonics markets Module cost 20-40% Lower CAPEX investment for module 10X Lower assembly & test Chip-scale package 20% Lower Power Wafer-level assembly and te
Slide 12: Most Versatile, Lowest Cost and Most Scalable Integration Platform
POET’s Interposer Platform is the Most Versatile, Lowest Cost and Most Scalable Integration Platform Traditional Micro-optics Silicon Photonics Assembly Low-Loss Athermal Waveguides ✓ N/A Integrated RF Interposer for ✓ ✓ Electronics Integration Visible to Near InfraRed (IR) ✓ ✓ Compatibility W
Slide 13: POET has been steadily building a world-class team
POET has been steadily building a world-class design and development team Team focused on design and marketing of products based on the Optical Interposer platform Pivot from Monolithic GaAs Adoption of Fab- Integration to Hybrid Signing of JV Suresh Light Strategy Integration (GaAs, InP, GaN, with
Slide 14: JV With Sanan IC: Super Photonics Xiamen
Culminating in a JV With Sanan IC Adding World-Class Manufacturing and Scale Super Photonics Xiamen – POET and Sanan IC Joint Venture (JV) Virtual vertical integration of manufacturing for Optical Engines Ability to rapidly scale production to thousands of devices per month Sanan IC | Xiamen Sanan I
Slide 15: Presentation Outline
Presentation Outline Photonics and POET Technologies Overview Strategy, Markets and Products Operations, Growth and Revenue Plan Investment Highlights PTK: TSXV | POETF: OTCQX © POET Technologies Inc. | PUBLIC 15
Slide 16: POET's Vision and Mission
POET’s Vision and Mission | A True Platform Technology Vision: To become the global leader in chip- POET Objectives: scale integrated photonics solutions by Develop a true platform technology for ease of deploying our Optical Interposer technology, reuse, design efficiency and cost enabling seamless
Slide 17: Overall Business Strategy
Overall Business Strategy Support SPX as an independent company to drive growth in optical transceivers and deliver maximum cash 1 flow to partners Continue to engage with industry leaders and incumbents to design, develop and sell devices based 2 on the Optical Interposer Exploit “localization” imp
Slide 18: Initial Target Markets in Optical Transceivers
Initial Target Markets in Optical Transceivers Even as 400G emerges, the100/200G segments continue to be large and attractive served markets for POET TAM = Total Available Market; SAM = Serviceable Available Market Billions of US$ Optical Transceiver Market Forecast - SALES Optical Transceiver Marke
Slide 19: Product Development Cycle
Product Development Cycle In mid-2020 POET moved decisively from technology to product development - driven by customer engagements Alpha Prototypes Production • Platform Validation • Meets All Customer • Feasibility of design • Meet Key Customer Specs to meet requirement Specs • Beta Prototypes • S
Slide 20: Customers drive Transition to Specific Product Developments
Customers drive Transition to Specific Product Developments Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 100/200G CWDM4 & Beta Pre-Alpha Alpha Production LR4 Optical Engines Optical systems and multiple module customers 400G LightBar™ Pre-Alpha Alpha Beta Production Leading optical systems customer 400G
Slide 21: POET's 100G/200G Datacom/Telecom Solutions
POET’s 100G/200G Datacom/Telecom Solutions Industry Leadership Products Wafer Scale Hybrid Integrated Photonics Packaging Platform Low Loss Transmission and Coupling DeMux and Mux monolithically integrated into Interposer 25G Flip Chip compatible CWDM and LR4 Lasers Markets CWDM4 and LR4 Data Center
Slide 22: POET's 400G Datacom Solutions
POET’s 400G Datacom Solutions Industry Leadership Products Wafer Scale Hybrid Integrated Photonics Packaging Platform Low Loss Transmission and Coupling W20370BZ-01 CB4a-D C DeMux and Mux monolithically integrated into Interposer 150 100 Power (mW) Up to 55mW CW Lasers (@75C) for both DR and FR 50 a
Slide 23: POET Health: SD-OCT
POET Health : Spectral Domain Optical Coherence Tomography (SD-OCT) Transmit (SLEDs) (hybrid integrated) ROIC (flip chip Si FAU TO SAMPLE chip) Photodetector Array AWG/Echelle Diffraction (hybrid integrated) Grating Fully hybrid integrated ”SD-OCT” on a chip utilizing POET’s Optical Interposer Elimi
Slide 24: Asset and Capex Lite Manufacturing Strategy
Asset and Capex Lite Manufacturing Strategy POET Owned Processes and Design including Consigned Equipment High-Volume Wafer Foundry (Silterra) High-Volume III-V Semiconductor Foundry (SAIC) Optical Interposer III-V Semiconductor Active Fabrication Optics ✓ 30 K+ wafers per ✓ Largest III-V Compound m
Slide 25: Presentation Outline
Presentation Outline Photonics and POET Technologies Overview Strategy, Markets and Products Operations, Growth and Revenue Plan Investment Highlights PTK: TSXV | POETF: OTCQX © POET Technologies Inc. | PUBLIC 25
Slide 26: World Class Management Team
World Class Management Team Executive Team Dr. Suresh Venkatesan Vivek Rajgarhia Thomas Mika CEO and Chairman President & General Manager Executive Vice President & CFO • SVP Technology at • SVP and GM, MACOM • Chairman, Rennova Health GlobalFoundries • CEO and Co-Founder, Optomai • Chairman & CEO,
Slide 27: Global Development and Manufacturing
Global Development and Manufacturing SZHENZHEN, CHINA Applications Engineering TORONTO, CANADA Corporate Headquarters XIAMEN CHINA Joint Venture ALLENTOWN, USA Assembly, Test, Sales Optical Engine KULIM, MALAYSIA Product Development Silterra Interposer Manufacturing SINGAPORE Interposer Development
Slide 28: Growth for Product Roll Outs
Growth for Product Roll Outs Planned Manpower & OpEx* Growth to Execute Product Roll Out January 2021 $4.8M $10.8M Annualized OpEx $6.0M Failure HR, Finance Analysis 31 HC and Admin GUI Firmware and Optical Engine and MCAD Engineer Photonics Design Director of Product Release Engineering and Project
Slide 29: Supply Chain Licensed to Produce Optical Engines for Transceivers
Supply Chain Licensed to Produce Optical Engines for Transceivers POET Device and Process IP Optical Assembly & Licensed to Interposer Test Manufacture Only Production Super Photonics POET Device Active Devices Xiamen Design IP for Optical Licensed to Manufacture Only Engines Vendor-Owned IP Multipl
Slide 30: Strong Customer Engagement across multiple verticals
Strong Customer Engagement across multiple verticals Customer Traction at Leading Module and System Companies Illustrative Pipeline of Customers Targeted 28 14 Active Discussion Requested Samples 6 3 Finalizing Project Plan 2 Contracted PTK: TSXV | POETF: OTCQX © POET Technologies Inc. | PUBLIC 30
Slide 31: Range of Forecasted Revenue for SPX
Range of Forecasted Revenue for SPX On a unit basis, the SPX forecast is based on market share estimates in each segment ranging at the highest estimate from 18% to 30% US$ Millions JV Forecasted Revenue Range in 100/200/400G Optical Engines 350 300 300 250 240 200 180 150 140 150 100 90 50 15 25 1
Slide 32: POET and SPX Size of Annual Opportunity
POET and SPX Size of Annual Opportunity >$1 Billion Annual Revenue Potential Optical Transceivers 5G Co-Packaged Computing for Datacom Networks Optics and Edge Applications Market Size SAM $3-5B $2-3B $3-5B $2-3.5B annually (peak 2021-28) : annually annually annually Development Partners: Tier 1 NA
Slide 33: Presentation Outline
Presentation Outline Photonics and POET Technologies Overview Strategy, Markets and Products Operations, Growth and Revenue Plan Investment Highlights PTK: TSXV | POETF: OTCQX © POET Technologies Inc. | PUBLIC 33
Slide 34: POET Technologies at a glance
POET Technologies at a glance ◼ POET Technologies has developed a unique hybrid photonics packaging platform targeting Optical Interposer Platform applications in high-speed data communications for the large Datacom / Telecom markets Superior Cost and Scalability 20-40% Lower ◼ Built on its highly d
Slide 35: Stock Price and Key Parameters
Stock Price and Key Parameters Total common shares 343,680,101 outstanding Warrants & Options 96,396,458 Outstanding Recent Share Price CA$1.00 US$0.80 Market Cap CA$343.7M US$275M 52 Week High CA$1.49 US$1.17 52 Week Low CA$0.385 US$0.29 Cash and short-term CA$30.4M US$23.7M investment (3/30/21) PT
Slide 36: POET Capital Structure and Warrant & Option Values
POET Capital Structure and Warrant & Option Values Capital Structure Value of Warrants & Options 10% 5% $11.6M $14.2M 7% Cash at 3/30/21 US$45.3M ~440M Fully- Diluted Shares US$23.7M TOTAL 78% $19.5M ITM Options OTM Warrants & Options ITM Warrants ITM Options OTM Warrants & Options ITM Warrants & Op
Slide 37: Investment Thesis
Investment Thesis Robust product 1 POET Optical Interposer capabilities are now proven Multi-Billion $ high-growth development market opportunity pipeline strong IP position 2 Now in Product Development with several customers Able to High-margin 3 Alpha Prototypes are weeks away leverage Business ex
Slide 38: POET
POET ae, NOR 1 oo es
POET Technologies — Needham Technology & Media Conference 2021 on 6ix