Akoustis Technologies — Investor Presentation (October 2018)
24 slides from Akoustis Technologies's investor presentation, Oct 26, 2018
Slide 1: Akoustis Investor Presentation October 2018
O CTOBER 2018 INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKTS Investor Presentation 1
Slide 2: Forward-Looking Statements
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY FORWARD - LOOKING STATEMENTS This document includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act, and Section 21 E of the Securities Exchange Act of 1934 , as amended, that are intended to be covered by the
Slide 3: Akoustis at a Glance
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKOUSTIS AT A GLANCE 3 • Ticker: AKTS (NASDAQ) • Corporate HQ: Huntersville, NC • Manufacturing (fully integrated): Canandaigua, NY • Founded: 2014 • Employees: 76 • $2.6 billion addressable market in 2017 , and expected to grow to $4.8B by 2021 – th
Slide 4: Executive Leadership & Partners
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY JEFF SHEALY FOUNDER & CEO Former VP & GM at RFMD (Qorvo) Co - founded RF Nitro (sold to RFMD) 22 YRS Industry Exp., MBA & PhD JOHN KURTZWEIL CFO Former CFO at Wolfspeed CREE, Extreme Networks; 30 YRS Industry Exp., CPA & MBA DAVID AICHELE VP BUS DEV
Slide 5: Seasoned Board Members
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY JERRY NEAL CO - CHAIRMAN, DIRECTOR ART GEISS CO - CHAIRMAN, DIRECTOR STEVE DENBAARS DIRECTOR JEFF MCMAHON DIRECTOR SUZANNE RUDY DIRECTOR STEVE MILLER DIRECTOR SEASONED BOARD MEMBERS 5 Founded RFMD (now Qorvo) ; 35 YRS+ RF and Wireless Industry Experi
Slide 6: Mobile Devices Require RF Filters to Connect
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY Mobile device RF complexity increasing: Multiband • Today greater than 40 bands • Next generation up to 100 bands • More bands drive greater co - existence needs Multimode • Next generation includes 2G, 3G, 4G, 5G • Expanding high band spectrum Multi
Slide 7: RF Market Dynamics
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY (1) Source: Barclays, Semiconductor Market Perspectives, 2017 . (2) Source: Mobil e Experts 201 8. RF Filter – FASTEST Growing Segment in the RF Front End (RFFE) $24.50 Early 5G Content 2020 RF MARKET DYNAMICS 7 RFFE values signal ‘selectivity’ over
Slide 8: Akoustis Target End Markets
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKOUSTIS TARGET END MARKETS 4G LTE MOBILE 5G MOBILE WiFi BTS Military (1) Source: Mobile Experts 20 18. (2) Source: Mobile Experts 2018, ABI 2017, Akoustis . 1.8 - 3 GHz BAW Discrete/Multiplex Filter 3 - 6 GHz BAW Discrete/Multiplex Filter 2.4/5.2/5.
Slide 9: Why Single Crystal for BAW?
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY WHY SINGLE CRYSTAL FOR BAW? 9 High power, wide bandwidth RF filters operating at high frequency High s ound v elocity High m echanical c oupling High power handling Piezo Thickness (A) Sound Velocity Poly Piezo Higher Single Crystal Piezo Admittance
Slide 10: Competing BAW Filter Technology
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY COMPETING BAW FILTER TECHNOLOGY 10 Polycrystalline Piezo Single Crystal Piezo Topside Air Cavity Topside Air Cavity Topside Air Cavity Backside Parasitic Backside Air Cavity Backside Air Cavity Polycrystalline Piezo Single Crystal Bulk Acoustic Reson
Slide 11: Single Crystal BAW (XBAW) Technology
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY SINGLE CRYSTAL BAW (XBAW™) TECHNOLOGY: 1 to 7 GHz 11 FOM - Power Performance Frequency (GHz) 1 5 2 3 4 6 0 7 8 TC - SAW SAW Poly Crystal BAW • Single crystal XBAW enables high power performance RF filters from 1 to 7 GHz • Akoustis is first in market
Slide 12: Expanding Intellectual Property (IP) Portfolio
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY EXPANDING INTELLECTUAL PROPERTY (IP) PORTFOLIO • Foundational single crystal BAW devices and RF filters • Vertical portfolio from platform substrates to system application • 1 8 Patents (1) , 38 patents pending plus numerous trade secrets • Key Unive
Slide 13: Qualified XBAW Wafer Fab – Canandaigua, NY
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY • Acquired 122,000 sq. ft. Silicon MEMS Wafer Fab Facility (June 2017), including 30,000 sq. ft. class 100/1000 clean room, 150 - mm wafer fab tools, 57 - acres of real property and MEMS Operations team • Consolidated Company’s supply chain (piezo ma
Slide 14: Target Milestones (by Market)
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY TARGET MILESTONES (BY MARKET) 14 • Q4 CY18: First 5.2 GHz WiFi pre - production order • Q4 CY18: Deliver 5.6 GHz samples to target customers • 1H CY19: Complete wafer - level packaging design • 2H CY19: Design win from mobile customer • 1H CY19: Deli
Slide 15: Recent Developments
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY RECENT DEVELOPMENTS 15 • October 4, 2018 – Recorded first RF BAW filter product revenue in September and received second production order for the AKF - 1938 (3.8 GHz) from a military OEM specializing in non - mobile communication systems • October 1,
Slide 16: Growing, High-Frequency Product Portfolio
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY GROWING, HIGH - FREQUENCY PRODUCT PORTFOLIO Band n78 Band n79 Band n77 Center Frequency (GHz) 3 6 AKF - 1335 AKF - 1652 AKF - 1252 AKF - 1125D AKF - 1125U AKF - 1256 AKF - 1938 AKF - 1336 Mobile Defense/Radar Infrastructure WiFi Bandwidth Performance
Slide 17: Mobile Wireless / Smartphone
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY MOBILE WIRELESS / SMARTPHONE • Focus on new 3 - 6 GHz spectrum for 5G • 5G mobile design cycles ongoing to support late CY19 handsets launch • WiFi shift from dual - band to tri - band • MIMO/MU - MIMO architectures growing; driving radio content inc
Slide 18: BAW Can Address High-Frequency WiFi Bands
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY Application BAW CAN ADDRESS HIGH - FREQUENCY WIFI BANDS • First to market with 5.2 GHz RF filter to replace larger dielectric resonator (DR) discrete RF filters • 5.6 GHz RF filter product samples expected Q4 CY18 • Focus on retail and enterprise mod
Slide 19: 5.2 GHz BAW RF Filter Product Available
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY 19 Addresses 5 GHz co - existence in Tri - Band WiFi routers Industry Leading 5 GHz BAW Performance AKF - 1252 RF Product Features Reduced Size Ultra - small footprint 2.5 x 2 x 0.9 mm Laminate module Size reduction supports growing MU - MIMO complex
Slide 20: Key Advantage for WiFi: Size Reduction
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY KEY ADVANTAGE FOR WIFI : SIZE REDUCTION Tri - band WiFi Architecture 3.0mm 8.2mm AKF - 1252 Akoustis Akoustis 5 GHz BAW filter is 2 3 x smaller : 103 mm 3 vs. 4.5 mm 3 4.2mm 2.5mm x 2.0mm x 0.9mm Source: Link - Sys AC2200 MU - MIMO Tri - Band Router
Slide 21: Historical Financials
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY HISTORICAL FINANCIALS
Slide 22: Income Statement
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY INCOME STATEMENT 22 Fiscal Year Ended June 30, ($ in thousands, except per share data) 2018 2017 Revenue $1,208 $486 Cost of revenue 1,019 - Gross profit $188 $486 Operating expenses Research and development $13,267 $5,013 General and administrative
Slide 23: Balance Sheet
INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY BALANCE SHEET 23 June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Assets Liabilities Cash and cash equivalents $14,817 $9,632 Accounts payable and accrued expenses $2,593 $1,336 Accounts receivable 215 - Deferred revenue 53 15 Inventory 58 188
Slide 24: Akoustis Technologies
AKO STIS TECHNOLOGIES A leading, fully-integrated designer & manufacturer of patented, single crystal BAW FF filters for large, rapidly growing markets.
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