Poet Technologies Inc. · NASDAQ:POET
Poet Technologies — Investor Presentation (October 2016)
38 slides from Poet Technologies's investor presentation, October 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
Slide 2: Safe Harbor - 1
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 f
Slide 3: Safe Harbor - 2
Safe Harbor - 2 • This presentation and the statements made by representatives of the Company in connection herewith contain 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 forecas
Slide 4: Offering Summary
Offering Summary Expected Pricing Late October / Early November 2016 Se[lement T+3 ; Shares will be fully registered in both Canada and US Lis>ng / Ticker TSX Venture (Canada) – PTK , OTC QX - POETF Offering Contemplated Offering will consist of Common & Warrants Capital expansion, product and sales d
Slide 5: We Enable Opto-Electronic Integration
We Enable Opto-Electronic Integration Current Solutions – Conventional, Complex and Costly POET Integrated Solution 100Gbps Solu>on § Improves cost, space, power, reliability § Makes opto-electronics economical © POET Technologies Inc. 5
Slide 6: Company Overview
Company Overview § 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 in d
Slide 7: Experienced Management Team
Experienced Management Team Dr. Suresh Venkatesan, CEO William “Bill” Ring, Product • 25 years semiconductor industry experience Development Motorola, Freescale & GLOBALFOUNDRIES • 20 years semiconductor industry experience • Technology Development & – HP, Tyco, BB Photonics Commercialization • Opti
Slide 8: Seasoned Board of Directors
Seasoned Board of Directors Ajit Manocha, Exec. Chairman Todd A. DeBonis, Director • Most recently CEO of GLOBALFOUNDRIES • CEO of Pixelworks (NASDAQ: PXLW) • 35 years of semiconductor experience with • Semiconductor veteran with over 27 years of deep knowledge of the technology and expertise in sal
Slide 9: Investment Highlights
Investment Highlights § 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 Ø Relieves current cost and power pain points in data communications § High capita
Slide 10: Targeting a Large and Growing Photonics Market
Targeting a Large and Growing Photonics Market Photonic Sensing Photonics Market Test and Measurement Forecasted 8-12% CAGR • Test and Measurement through 2021 Navigation • Navigation • LIDAR systems Lidar $10.2 $10.0 • Medical and Health Care Spectroscopy • Oil and Gas $54B $4.5 Heath Care TAM $10.
Slide 11: Data Communications: Cloud Growth Driving Hyper Network Expansion
Data Communications: Cloud Growth Driving Hyper Network Expansion Forecasted New Phase of Photonics Growth driven by Consumer Applications Market size numbers represent projections / forecasts / estimates © POET Technologies Inc. 11
Slide 12: POET's Proprietary Platform for Opto-Electronic Integration
POET’s Proprietary Platform for Opto-Electronic Integration § POET (Planar Opto-Electronic Demonstrated Results Technology) Platform is a novel POET Thyristor VCSEL Gallium Arsenide (GaAs) III-V compound semiconductor process technology § Moore’s Law like functional integration to the field of optic
Slide 13: Broad Patent Portfolio
Broad Patent Portfolio Patent Por)olio 11 14 7 26 Device Structure Technology Process Applications 58 Patents Granted/Filed © POET Technologies Inc. 13
Slide 14: Creating Value Through Photonic Integration
Creating Value Through Photonic Integration § Only technology to integrate* photonics and electronics, including light sources Integrated systems $$$$$$ § Platform to accelerate growth Sub-system level devices: PCB/SMT $$$$$ § World-class technical team Packages devices & modules § First mover advan
Slide 15: POET: Developing A Disruptive Integrated Solution
POET: Developing A Disruptive Integrated Solution Conventional Solutions POET Detectors Integrated Op>cal Engine Mux & De-Mux Drivers Lasers Advantages and TIAs Comprised of 4-5 different § Lower Cost § Single Chip Solution chips packaged together: Monolithic § Lower Power 1) Lasers or Laser Arrays
Slide 16: Data Communications – Expanded Reach
Data Communications – Expanded Reach Long, Medium & Short Applications Ini>al Focus Areas Roadmap Expansion Long Reach Medium Reach Short Reach Very Short Reach Chip to Chip 1-50cm Metro and Long Haul > 10km Rack to Rack Volume < 100m Within Data Center < 2km Board to Board 50-100cm Within Rack < 5m
Slide 17: Recent Acquisitions: Expanded Capabilities
Recent Acquisitions: Expanded Capabilities POET POET + Acquisitions REACH Short (0-100m) Medium (100m-2km) Long (> 10km) Data Centers • Active Optical Cables • Metro / LAN! Expanded SAM in Data (AOC) - Direct Attach Communications • Fiber to the Home/ ! APPLICATIONS Copper replacement - Pluggable Mo
Slide 18: 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 INDIUM PHOSPHIDE GALLIUM Source : Light Counting ARSENIDE Expanded Market Opportunities § Leveraging both GaAs and InP processing provides ability to address broad
Slide 19: Strong and Growing Customer Base
Strong and Growing Customer Base APPLICATIONS CURRENT CUSTOMERS Test and Measurement Structural Health Stabilization Health Care Data Communications © POET Technologies Inc. 19
Slide 20: The Opportunity & Go-to-Market Strategy
The Opportunity & Go-to-Market Strategy Established Founda0on for Success © POET Technologies Inc.
Slide 21: Growth of Integrated Photonic Solutions in Data Communications
Growth of Integrated Photonic Solutions in Data Communications Discrete and Integrated Solutions Market Forecast Source : Light Counting The need for INTEGRATION $6,000 Discrete Data Centers are primarily about $/Gbit for moving data from point A Integrated millions) millions) to point B: $4,000 § L
Slide 22: A Platform for Broader Market in Adjacent Verticals
A Platform for Broader Market in Adjacent Verticals Initial Focus Areas Future Opportunities Consumer Solutions Data Communications • • USB4.0 / HDMI Smart Pixel Arrays • Short Reach High Speed • Long & Short • Cables Reach • Discrete & Integrated Automotive • MOST Networks • LIDAR Mobility • Gestur
Slide 23: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Near-Term (2016-2017) Longer Term (2018+) Photonic Sensing Long Reach Transceivers • Test and Measurement • TOSA / ROSA • Navigation • Data Centers • LIDAR systems • Metro / LAN • Medical and Health Care • Oil and Gas Active Optical Cables •
Slide 24: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Near-Term (2016-2017) Longer Term (2018+) Photonic Sensing Long Reach Transceivers • Test and Measurement • TOSA / ROSA • Navigation • Data Centers • LIDAR systems • Metro / LAN • Medical and Health Care • Oil and Gas Active Optical Cables •
Slide 25: Photonic Sensing – Products Driving Current Revenue
Photonic Sensing – Products Driving Current Revenue Significant Opportunity Across Key Products Multiple End Markets 1550nm SLED Test & Measurement Long Wavelength TAM (1.2um-1.7um) Broadband $10B Light Sources Guidance & Navigation ELEDs (TO Cans) TAM $4.5B Fiber Bragg Grating Lasers Structural Hea
Slide 26: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Near-Term (2016-2017) Longer Term (2018+) Photonic Sensing Long Reach Transceivers • Test and Measurement • TOSA / ROSA • Navigation • Data Centers • LIDAR systems • Metro / LAN • Medical and Health Care • Oil and Gas Active Optical Cables •
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 Forecasted InP Unit POET enables differentiated lasing Shipments solutions: 2018 : 133M § CWDM and WDM integrated gain chips Ø Single chip solutions; lower cost § Athermal g
Slide 28: Overview of Addressable Markets
Overview of Addressable Markets - Diverse Market Verticals Near-Term (2016-2017) Longer Term (2018+) Photonic Sensing Long Reach Transceivers • Test and Measurement • TOSA / ROSA • Navigation • Data Centers • LIDAR systems • Metro / LAN • Medical and Health Care • Oil and Gas Active Optical Cables •
Slide 29: Commercialization of POET Optical Engine Expected in 2018
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:
Slide 30: Creating and Capturing Value Through Integration
Creating and Capturing Value Through Integration POET’s unique value On the Chip proposition enables an 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 © POET Technologies Inc. 30
Slide 31: Financial Overview
Financial Overview Established Founda0on for Success © POET Technologies Inc.
Slide 32: Current Monetization Strategy - Multiple Potential Sources of Revenue
Monetization Strategy - Multiple Potential Sources of Revenue Current Direct Sales of Transceiver Chipsets for Data Center Product Sales and Consumer (Direct Attach Cables) applications Initial end customer NRE and/or foundry NRE NRE Revenue • Advanced stage discussions for NRE; expect first NRE rev
Slide 33: Forecasted Growth of Initially Targeted Markets
Forecasted Growth of Initially Targeted Markets - Photonic Sensing and Data Communications only ($’Millions) SHORT REACH $3,500 ACTIVE OPTICAL CABLES LONG REACH $3,000 DISCRETE LASERS PHOTONIC SENSING $2,500 $2,000 $1,500 $1,000 $500 $- 2017 2018 2019 2020 2021 Source : Light Counting Represents fut
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 bu
Slide 35: www.poet-technologies.com
www.poet-technologies.com
Slide 36: We Enable Photonic Integration
We Enable Photonic Integration © POET Technologies Inc. 36
Slide 37: Company Background and Milestones
Company Background and Milestones Apr. 2016: Demonstrated 2013: 2014: resonant cavity detector $7.2M Private $4.5M Private manufactured at 6” volume placement financing placement financing production foundry Jun. 2013: Demonstrated June. 2015: Feb. 2014: Jan. 2016: New Complementary Fabricated IR De
Slide 38: Balance Sheet and Capitalization
Balance Sheet and Capitalization In ‘000s of USD As at August 31, 2016 In $USD Cash 10,900 Other current assets 1,400 Total assets 30,250 Current liabili>es 1,500 Other non-cash liabili>es 1,800 Share capital 100,400 Capitalization Summary [as of August 31, 2016] Security Number outstanding Price in
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