Research Frontiers Incorporated · NASDAQ:REFR
Research Frontiers — Investor Presentation (2004)
13 slides from Research Frontiers's investor presentation, 2004
Slide 1: 2004 Survey of US Architects on the Subject of Switchable Glazings
2004 Survey of US Architects on the Subject of Switchable Glazings For more information, please contact: Gregory M. Sottile, Ph.D. Director or Market Development Research Frontiers Incorporated Sottile@SmartGlass.com www.SmartGlass.com Research Frontiers Incorporated 1
Slide 2: Research Methodology
Research Methodology Design: Exploratory/Qualitative Attitudes of US architects: n SIC 8712 (architectural services) n Random selection n Study period: Jan/Feb 2004 n In-depth telephone interviewing (n=16) n Blend of open- and closed-ended questions 2
Slide 3: Sample Characteristics
Sample Characteristics Measure Population Sample Firm size, employees 18.0 16.5 (median) Firm size, revenue $1,930,000 $1,860,000 (median) % of firms serving only NA 87.5% US clients % of firms offering NA 56.3%/93.4% res./comm. services 3
Slide 4: Switchable Glazings (SG)
Switchable Glazings (SG) A “smart” material Uses electrical voltage or current to manage light passing through glass or plastic Examples of application markets: - windows - skylights, sunroofs - interior partitions - displays, signage - mirrors, sunvisors - eyewear 4
Slide 5: Smart Glass: Forecast of Demand
Smart Glass: Forecast of Demand Projected Annual Growth Rates 25.0% Advanced flat glass: 22% of total by 2006 20.0% 20.0% Smart glass: $445 million by 2006 15.0% 9.6% 10.0% 4.3% 5.0% 0.0% Flat Glass: US Advanced Flat Smart Glass: (1997-2002) Glass: US US (through (through 2006) 2006) Sources: U.S. C
Slide 6: Driving Forces
Driving Forces Large-Scale • Increased promotional expenditures; Product Growing sales volumes should support Introductions investments in distribution infrastructure Rising Demand • Worldwide: 5.7% CAGR through 2007 for Windows and Doors • US: 2001 - 52.3% of households have a PC (3X the 1990 rate)
Slide 7: Driving Forces (cont.)
Driving Forces (cont.) • Factors that improve worker productivity Positive Impact of Daylighting 1.) Quality of lighting 2.) High levels of daylighting 3.) Increased individual control over workplace environment • US: 1990 to 2002 – 1.8%/2.3% CAGR in Pressure to Increase Energy residential/commercia
Slide 8: Attitudes of US Architects
Attitudes of US Architects • Majority: same amount or more Use of Glass vs. 5 Years Ago • Determining factors 1.) Consumer desire for more glass 2.) Improvements in glazing materials 3.) Building/energy code requirements Satisfaction with • Residential focus: highly satisfied (but still Existing Lig
Slide 9: Attitudes of US Architects (cont.)
Attitudes of US Architects (cont.) Awareness and • Approximately 75% are aware Usage of SG • 2000: 71.7% awareness among decision makers at US window manufacturers* • Among US Architects - Low awareness of specific types of switchables (EC, LC, SPD) - Limited specification activity due to: + Lack of
Slide 10: Attitudes of US Architects (cont.)
Attitudes of US Architects (cont.) Current • Moderate to high Interest in SG • Reasons - More aesthetic/functional design flexibility - Viewed as a substitute or complement to existing light-management products/systems - Added utility for areas that are difficult to shade and/or hard to clean SG • M
Slide 11: Attitudes of US Architects (cont.)
Attitudes of US Architects (cont.) Variances in • Residential focus Importance of - Instant switching speed SG Attributes - Noise attenuation • Commercial focus - Ability to block all light and eliminate need for window coverings SG Expected • US, 2009 median: 13.5% Market - All windows, doors and s
Slide 12: SPD Light Control Technology
SPD Light Control Technology 12
Slide 13: Conclusions
Conclusions Smart glass demand expected to grow rapidly Various driving forces support demand US architects n Awareness of SG moderately high; current usage low n Interest in SG moderate to high n Key attributes: light control, warranties, heat gain, switching speed (res.), light blockage (comm.) n