Poet Technologies Inc. · NASDAQ:POET
Poet Technologies — Investor Presentation (October 2016)
38 slides from Poet Technologies's investor presentation, Oct 12, 2016
Slide 1: Integrated Photonics: The Next Wave in Photonics Growth
Integrated Photonics The Next Wave in Photonics Growth Dr. Suresh Venkatesan, CEO POET Technologies OCTOBER 2016 |v POET technologies v|
Slide 2: Safe Harbor
Safe Harbor - 1 POET Technologies Inc. (the Company) has filed a final base shelf prospectus containing important information relating to the securities described in this presentation with the securities regulatory authorities in each of the provinces of Canada (other than Quebec). A copy of the fin
Slide 3: Safe Harbor
Safe Harbor - This presentation and the stai 2 by representatives of the Company it statements and forward-leoking information within the meaning of U.S. and Canadian secur ements ecasted revenue & market growth and other project of this presentation. Forward-locking statements and information can g
Slide 4: Offering Summary
Offering Summary Expected Pricing Late October / Early November 2016 Settlement T+3 ; Shares will be fully registered in both Canada and US Listing / Ticker TSX Venture (Canada) — PTK , OTC QX - POETF Offering Contemplated Offering will consist of Common & Warrants Capital expansion, product and sal
Slide 5: We Enable Opto-Electronic Integration
We Enable Opto-Electronic Integration ° L = ® & TOOGbps Solution
Slide 6: Company Overview
Company Overview a | * Developing highly disruptive semiconductor technology: * Industry's first monolithic integration of high speed electronics and photonics = Applications across multiple market verticals "= Transitioning from Technology Development to Commercialization = $100M invested resulting
Slide 7: Experienced Management Team
Experienced Management Team Dr. Suresh Venkatesan, CEO + 25 years semiconductor industry experie Motorola, Freescale & GLOBALFOUND! + Technology Development & Commercialization William “Bill” Ring, Product dustry experience yet * Optical technology, product and business development ~ Dr. Subhash Des
Slide 8: Seasoned Board of Directors
Seasoned Board of Directors Ajit Manocha, Exec. Chairman Todd A. bemphintyis Director + CEO of Pix operations John F. O’Donnell, Director David E. Lazovsky, Director ‘cunsel to Stikemian Keeley Spiegel mack LLP rorney with 43 years of ex f semiconductor industry experience including MI and Applied s
Slide 9: Investment Highlights
Investment Highlights r = Poised to disrupt the market with Integrated Photonic solutions \ = Acceleration of revenue and time to market expected with acquisitions = High customer demand for Integrated Photonics solutions » Relieves current cost and power pain points in data communications = High ca
Slide 10: Targeting a Large and Growing Photonics Market
Targeting a Large and Growing Photonics Market Photonics Market Forecasted 8-12% CAGR through 2021 Mark Test and Measurement Navigation Lidar Spectroscopy Heath Care wOil and Gas j@ Structural Health Monitoring Laser Light Sources & Data Communications Me: (= Sensing a) * Test and Measurement + Navi
Slide 11: Data Communications: Cloud Growth Driving Hyper Network Expansion
Data Communications: Cloud Growth Driving Hyper Network Expansion “TTERNET OF THINGS) (apps /socia, jaas =} | a2. G —_* 1.8 Billion and snared very day a * Traditional Data Centor (5% CAGR) seas "Cloud Data Center (33% CAGR) z 25B corned ty 2098 (( SMARTPHONES ~) 6 1M Minutes a a i ! l veo conte wi
Slide 12: POET's Proprietary Platform for Opto-Electronic Integration
POET's Proprietary Platform for Opto-Electronic Integration 4 POET (Planar Opto-Electronic Technology) Platform is a novel Gallium Arsenide (GaAs) III-V compound semiconductor process technology = Moore's Law like functional integration to the field of optics First GaAs process technology to support
Slide 13: Creating Value Through Photonic Integration
Creating Value Through Photonic Integration ® Only technology to integrate* photonics and electronics, including light sources = Platform to accelerate growth " World-class technical team "= First mover advantage = 58 patents granted or filed * Integration: move up the value chain from components to
Slide 14: POET: Developing A Disruptive Integrated Solution
POET: Developing A Disruptive Integrated Solution Conventional Solutions (— POET e Detectors Integrated Optical Engine Drivers Lasers and TIAs Comprised of 4-5 different nalicehia Salad hi Ienod together * Single Chip Solution cps packag! 9 : Monolithic 1) Lasers or Laser Arrays Integration of Laser
Slide 15: Broad Patent Portfolio
Broad Patent Portfolio ; » ( Patent Portfolio » United States Patent IS 6,936,839 B2 hae oe [Bh Device Structure I Technology Process Applications \a LI J 58 Patents Granted/Filed
Slide 16: Recent Acquisitions: Expanded Capabilities
Recent Acquisitions: Expanded Capabilities — POET + Acquisitions ocr) EE Meum omit | tone bib) | , + Metro / LAN Repeated S/n ate + Fiber to the Home/ a Cc tions APPLICATIONS places ~Pluggatle Medes PON IN + Telecom PRODUCTS & SOLUTIONS MANUFACTURING & SALES Market see numbers represent p ns/ fore
Slide 17: Data Communications — Expanded Reach
Data Communications — Expanded Reach Long, Medium & Short Applications Roadmap Expansio Long Reach Very Short Reach Chip to Chi Metro and Leng Haul > 10km ort Within Data Center <2km Board to Board 50-100em ’ Within Rack
Slide 18: Strong and Growing Customer Base
Strong and Growing Customer Base APPLICATIONS CURREN ISTOMERS Test and Measurement @TRIOPTICS HEXAGON GEOSYSTEMS fix @ecomet Structural Health |] FBGS s eanweaver CEKO™ Armonics (scare = Stabilization @ optTo.Link weath cae || ONO Ch afb Aaweon wlll, IX] wttnis P ~ Data tances GSOPLINK + id amolex c
Slide 19: The Opportunity
The Opportunity BO Go-to-Market Strategy »% ~ Established Foundation for Su
Slide 20: Growth of Integrated Photonic Solutions in Data Communications
Growth of Integrated Photonic Solutions in Data Communications Discrete and Integrated Solutions Market Forecast The need for INTEGRATION Data Centers are primarily about $/Gbit for moving data from point A to point B: = Low Power Dissipation ® Ability to deliver high volume solutions = New solution
Slide 21: Recent Acquisitions: Expanded Market in Data Communications
Recent Acquisitions: Expanded Market in Data Communications Market Forecast Market Forecast 2016 : $6.4B 2021 :$10.2B SILICON PHOTONICS c> mw INDIUM PHOSPHIDE = GALLIUM ARSENIDE Expanded Market Opportunities = Leveraging both GaAs and InP processing provides ability to address broader Data Communica
Slide 22: A Platform for Broader Market in Adjacent Verticals
A Platform for Broader Market in Adjacent Verticals Initial Focus Areas Future Opportunities Data Communications + Long & Short Reach i - Discrete & Integrated Health Care + Short Wavelength ty Sensing + Ophthalmic OCT + 830-850nm
Slide 23: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Long Reach Transceivers + TOSA/ ROSA + Data Centers LF + Metro / LAN + Test and Measurement * Navigation + LIDAR systems + Medical and Health Care 3 oye + Oil and Gas OPM Active Optical Cables + Data Centers (Se + Consumer T + Direct Attach
Slide 24: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Photonic Sensing + Test and Measurement * Navigation + LIDAR systems Medical and Health Care : Oil and Gas ——— SS ae
Slide 25: Photonic Sensing — Products Driving Current Revenue
Photonic Sensing — Products Driving Current Revenue Key Products Ady = 1550nm SLED Long Wavelength (1.2um-1.7um) Broadband Light Sources Significant Opportunity Across Multiple End Markets /— Test & Measurement ~ TAM lar $10B ——___/ (Guidance & Navigation TAM +e Y $4.5B u -—— Structural Health ——~ E
Slide 26: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Discrete and Integrated Lasing & Receiving Solutions + FTTX GPON and NGPON + Data Centers a + Si Photonics Coarse Wavelength Division Multiplexing
Slide 27: InP Lasing and Receiving Solutions
InP Lasing and Receiving Solutions - Fiber to “X" (FTTX) and Data Centers InP lasers power InP and Silicon Photonics platforms POET enables differentiated lasing solutions: * CWDM and WDM integrated gain chips > Single chip solutions; lower cost * Athermal gratings and waveguides > Reduced or no nee
Slide 28: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Long Reach Transce! + TOSA/ ROSA 2 + Data Centers LF + Metro / LAN Active Optical Cables + Data Centers (Se + Consumer r + Direct Attach Copper Replacements
Slide 29: Commercialization of POET Optical Engine
Commercialization of POET Optical Engine Expected in 2018 - First Target Market: Active Optical Cables Market continuously seeking to cost effectively replace traditional copper- based links with optical interconnects at increasingly shorter transmission distances * Enables disruptive reductions: co
Slide 30: Creating and Capturing Value Through Integration
Creating and Capturing Value Through Integration POET's unique value On the Chi proposition enables an P attach rate directly to the silicon chip Inside the Box On the Board Outside the Server Server to Server Creating and Capturing Value Through Integration
Slide 31: Financial Overview
Financial Overview PET techncio
Slide 32: Monetization Strategy - Multiple Potential Sources of Revenue
Monetization Strategy - Multiple Potential Sources of Revenue Product Sales Direct Sales of Transceiver Chipsets for Data Center and Consumer (Direct Attach Cables) applications Initial end customer NRE and/or foundry NRE NRE Revenue + Advanced stage discussions for NRE; expect first NRE revenue in
Slide 33: Forecasted Growth of Initially Targeted Markets
Forecasted Growth of Initially Targeted Markets - Photonic Sensing and Data Communications only (svitions) ) __/ @SHORT REACH $3,500 7s ACTIVE OPTICAL CABLES _) tw LONG REACH $3,000 +" w DISCRETE LASERS _ w PHOTONIC SENSING $2,500 Fy $2,000 - $1,500 + $1,000 -~ $500 $ + : ‘< 2017 2018 2019 2020 2021
Slide 34: Summary & Investment Highlights
Summary & Investment Highlights (= Product sales established in large and high growth photonic market segments ) with recent acquisitions ™ Revenue expected to exceed $2M in 2H'16 driven by sale of sensing products = Expected 2017 revenue growth year/year to be driven by component sales = DenseLight
Slide 35: POET Technologies
IR POET technologies | www.poet-technologies.com
Slide 36: We Enable Photonic Integration
We Enable Photonic Integration
Slide 37: Company Background and Milestones
Company Background and Milestones 2013: 2014: ‘Apr. 2016: Demonstrated t $4.5M Private Goce resonant cavity detector manufactured at 6" volume placement financing placement financing production foundry Jun, 2013: Demonstrated Complementary HFET June. 2015: Feb. 2014: New Jan. 2016: Fabricated IR Man
Slide 38: Balance Sheet and Capitalization
Balance Sheet and Capitalization In '000s of USD Cash 10,900 Other current assets 1,400 Total assets 30,250 Current liabilities 1,500 Other non-cash liabilities 1,800 Share capital 100,400 Capitalization Summary fas of August 31, 2016] Number outstanding Price in $CDN* Common shares 224,338,852 Exer
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