Research Frontiers Incorporated · NASDAQ:REFR
Research Frontiers — Investor Presentation (May 2006)
27 slides from Research Frontiers's investor presentation, May 2006
Slide 1: Research Frontiers Incorporated
Research Frontiers Incorporated Nasdaq: REFR SPD-Smart™ Technology To Control Light
Slide 2: Overview
Overview Research Frontiers Incorporated (Nasdaq: REFR) is a technology leader in the field of electrically operated light-control devices. RFI develops and markets SPD-Smart glass technology to numerous industries using a licensing business model. SPD-Smart products switch almost instantaneously an
Slide 3: SPD History
SPD History 1965: Research Frontiers Incorporated formed 1991: SPD film invented 1999: Emulsion and film production licensed 2002: Commercialization of film and end-products using first generation film 2002: SPD-Smart products sold/installed in various applications: - architectural - automotive - ai
Slide 4: SPD-Smart Technology
SPD-Smart™ Technology Light control film that: n Works on glass or plastic n Allows you to control light levels instantly n Is tunable over a wide range of light transmission n Offers consistent switching regardless of panel size n Blocks more than 99% of all UV light n Is safe n Uses very little po
Slide 5: How SPD-Smart film works
How SPD- Smart film works Glass or Plastic Wall Glass or Plastic \Nal\ NY NWS t a Transparent Electrically Conductive Coatings Electrical Leads Film incorporating droplets of liquid suspension OFF Unactivated State. Particles in random positions and light is absorbed. Activated State. Particles alig
Slide 6: Markets for Light-Control
Markets for Light-Control Numerous applications exist: n Architectural n Automotive n Aerospace n Marine n Eyewear n Displays/filters n Others
Slide 7: Many Benefits
Many Benefits § Aesthetics § Comfort § Energy savings SPD-Smart § Glare reduction Products § Increased productivity § Noise reduction § Security § UV protection
Slide 8: REFR's Business Plan Strategy
REFR’s Business Plan Strategy Attract world class licensees: n Non-exclusive agreements with industry leaders n Leverage of expertise, resources and industry reputation n Pursue a wide variety of vertical markets w Auto, Aircraft, Architectural, Marine, Eyewear n Ensure licensees have commitment and
Slide 9: Virtual Business Model
Virtual Business Model Licensing vs. Manufacturing n Leverages personnel and resources n Fosters a cooperative partnership with and among licensees n Diversified industries/products Protection of Intellectual Property n More than 450 patents and patent applications worldwide Revenues derived from: –
Slide 10: RFI's Business Model
RFI’s Business Model RFI owns technology n More than 450 patents and pending patents worldwide Licensees manufacture and market products n Licensees - produce SPD Emulsions n Licensees - manufacture film n Licensees - develop and market end-products n RFI currently has 35 licensees REFR conducts bro
Slide 11: SPD-SmartGlass on ABC Television's Extreme Makeover: Home Edition
SPD-SmartGlass on ABC Television’s Extreme Makeover: Home Edition May 6, 2004 Other Industry Acclaim • Popular Science magazine presented REFR the “Best of What’s New” award in the home technology category • The Society of Automotive Engineers Aerospace Engineering magazine selected SPD-Smart aircra
Slide 12: Competitive Smart Window Technologies
Competitive Smart Window Technologies Liquid Crystal • on-off only • does not block light-merely scatters it • primary application: privacy Electrochromic • slow switching speed • non-uniformity • mostly small, flat, surface areas Suspended Particle Device (SPD) • fast switching speed • uniform swit
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS Licensing business model leverages relative strengths and minimizes risks and capital requirements World-class licensees n Pace of licensing activities accelerating n Currently 35 companies licensed Extensive patent portfolio (450+ patents and applications) Technical and market
Slide 14: Infrastructure for Production of SPD Products
Infrastructure for Production of SPD Products SPD emulsion licensees sell chemicals to SPD film manufacturers SPD film licensees coat emulsion into film and sell film to end-product licensees n Rolls of SPD film can be mass-produced on high-speed coaters and can easily be shipped to production sites
Slide 15: Licensee Supply Chain
Licensee Supply Chain Light Control Chemical SPD Film SPD End-Product Technology Emulsion Suppliers Manufacturers Supplier Suppliers AGC Automotive Americas American Glass Products Asahi Glass Company Avery-Dennison Air Products and Bekaert SA Chemicals BOS Automotive Air Products and BRG Group/Reid
Slide 16: Range of Light Transmission
Range of Light Transmission New SPD-Smart Film has much wider range and lower haze Ultra- Dark Light . — . Emulsion : Electrochromic
Slide 17: Markets for SPD Light-Control Technology
Markets for SPD Light-Control Technology 40+ billion ft2 (new glass production) 20% 18% 290 billion ft2(existing glass) 22% 40% 1% of new glass production = 400 million ft2 of SPD film annually Market studies indicate that: Asia • 3.6% of all residential windows, and… North America • 6.2% of all com
Slide 18: Glass is Getting Smarter
Glass is Getting Smarter Advanced flat glass: $6.8 billion in U.S. by 2008 Smart glass: $445 million by 2006 Smart Glass: US (through 2006) 25% 20.0% 20% Advanced Flat Glass (through 2006) 15% Flat Glass 9.6% 10% (1997-2002) 4.3% 5% 0% Projected Annual Growth Rates Source: US Census Bureau; Freedoni
Slide 19: Driving Market Forces
Driving Market Forces Greater use of glass for aesthetic and functional purposes in architectural applications Recognition of the relationship between daylighting and employee productivity n Quality of lighting n High levels of daylighting n Increased individual control over the workplace, including
Slide 20: Number of SPD Licensees
Number of SPD Licensees 40 34 35 35 29 30 25 21 20 15 13 8 10 10 5 0 1999 2000 2001 2002 2003 2004 2005
Slide 21: SPD-Smart Architectural Windows
SPD-Smart Architectural Windows • Worldwide demand for windows and doors to rise 5.7%/yr to $147 billion by 2007 (Freedonia Group (Cleveland, OH)) • US home improvement spending to rise 4.6%/yr through 2007 (Home Improvement Research Institute)
Slide 22: Aircraft Windows
Aircraft Windows • Fixed-wing airplanes • Helicopters • Reduced weight • Fuel Savings • UV-blocking capabilities
Slide 23: SPD-Smart windows installed or engineered for the following aircraft
SPD-Smart windows installed or engineered for the following aircraft: • Airbus A319/A320/A380 • Bell/Textron 430 Helicopter • Boeing 737,747,757,BBJ, 787 • Bombardier Global Ex and Challenger 601,604 • Bombardier LearJet 24,25,31,35,36,45,55,60 • Cessna Citations I, II,III,525,525A,550,Excel,5,CX •
Slide 24: Automotive Markets
Automotive Markets Rear-view mirrors 150 million units SPD sunvisors SPD sunroof (13.3 million currently SPD upper windshield electrochromic) SPD side windows Sun Roofs SPD dashboard display and navigation system ~15 million units in 2006 (25% of 54 million cars and SUVs have factory installed sun r
Slide 25: Other Applications: Eyewear
Other Applications: Eyewear • Prescription and non-prescription sunglasses • Prescription: $60 billion • Non-prescription: $8.75 billion • Adjustable: 8.85 million pairs (out of total market of 68.1 million pairs (USA) (Trend: 7.9% in 1999; 13% in 2003) • Sports and ski goggles • Helmets • Space uni
Slide 26: Future Applications: SPD Flat Panel Displays
Future Applications: SPD Flat Panel Displays Computers (laptops and desktops) PDAs (e.g. Palm Pilots) Beepers Cellular Telephones (especially “smart” phones) Instrument Panels and Navigation Systems Aircraft Cockpits Televisions Handheld Computer Games Other Information Appliances Signage Digital Ph
Slide 27: Research Frontiers Incorporated
Research Frontiers Incorporated Nasdaq: REFR For more information, please contact: Patricia A. Bryant Manager of Investor Relations Research Frontiers Incorporated Bryant@SmartGlass.com www.SmartGlass.com Note: From time to time Research Frontiers may issue forward looking statements which involve r
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