Akoustis Corporate 12Mar2018Akoustis’ business is subject to numerous risks and uncertainties, ......

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M A R C H 1 2 , 2 0 1 8 INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY AKTS 1 Corporate Presentation

Transcript of Akoustis Corporate 12Mar2018Akoustis’ business is subject to numerous risks and uncertainties, ......

  • M A R C H 1 2 , 2 0 1 8

    INNOVATION IN SINGLE CRYSTAL BULK WAVE

    TECHNOLOGY

    AKTS

    1

    Corporate Presentation

  • This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as may, will, should, could, expect, plan, anticipate, believe, estimate,forecast, predict, potential, continue and similar words, although some forward-looking statements are expressed differently. You should be awarethat the forward-looking statements included herein represent managements current judgment and expectations, but our actual results, events andperformance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward lookingstatements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federalsecurities laws. Akoustis business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results, ourdependence on a few large customers for a substantial portion of our revenue, a loss of revenue if contracts with the U.S. government or defense arecanceled or delayed, our ability to implement innovative technologies, our ability to bring new products to market, achieve design wins versus ourcompetitors and the rate of acceptance of our products in the market, the efficient and successful operation of our wafer fabrication and other facilities,our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, our recent acquisition of STC-MEMS coulddisrupt our business and may not be successfully integrated, variability in manufacturing yields, our ability to retain the Trusted Foundry accreditationfrom the STC- MEMS acquisition, industry overcapacity, inaccurate product forecasts and corresponding inventory and manufacturing costs, dependenceon third parties, our dependence on international sales and subcontract operations, our ability to attract and retain skilled personnel and develop leaders,our need for substantial additional funding may dilute our stockholders ownership and cause us to incur debt and other contingent liabilities, fluctuationsin the price of our common stock, our ability to protect our intellectual property, claims of intellectual property infringement and other lawsuits, securitybreaches and other similar disruptions compromising our information, and the impact of government or environmental regulations. These and other risksand uncertainties, which are described in more detail in Akoustis most recent Annual Report on Form 10-K and in other reports and statements filed withthe Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by anyof these forward-looking statements.

    THESE MATERIALS DO NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF ANY OFFER TO BUY, ANY SECURITIES OF AKOUSTIS, INC., OR OF ANY OTHER ENTITY WHATSOEVER. ANY REPRESENTATION TO THE CONTRARY SHOULD BE IGNORED.

    Akoustis the Akoustis logo and BulkONE are registered trademarks of Akoustis Technologies, Inc.

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    FORWARD-LOOKING STATEMENTS

  • MISSION - STOCK - INVESTMENTS - PROGRESS

    OUR MISSION DELIVER DISRUPTIVE RF FILTERS FOR NEXT GENERATION MOBILEWIRELESS USING PATENTED, SINGLE CRYSTAL PIEZOELECTRIC MATERIALS

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    May '14Company founded

    Aug 16 Agreements w/ Tier 1 Chinese RFFE Module MFR

    May15Company goes public (AKTS),

    Dec 16 Add 2nd customer PO

    Jul '14First BulkONE patents filed

    Jul 16 Produced worlds first single-crystal BAW RF Filters

    Oct 16Achieve milestone resonator Q=2914

    Nov 16 First2.5GHz, 3.7GHz single crystal filters

    May 17First 5.8GHz BAW demo wafer from N.Y. STC Fab

    June 17Closed Acquisition of 150-mm STC N.Y. Fab

    June 17Added to the Russell 2000

    Aug 17First BAW product prototypes shipped from N.Y. Fab to Mobile & Radar Customers

    Mar 17Began trading on NASDAQ exchange

    Sep 17Industrys first Single Crystal 5GHz WiFi BAW RF Filter protos to multiple clients

    Nov 17First PO from Top-5 Mobile OEM for LTE & 5GHz WiFi filter samples

    Jan 18Complete capital buildout of 1stBAW filter line in N.Y. to support 5G

    Key Event

    New

    =Received Contract R&D award from National Science Foundation (NSF)

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    Mar 18XB1 Process frozen, begin qualification

    New

    Mar 18AKF-1252 5.2GHz BAW RF filter product announcement

  • MOBILE DEVICES REQUIRE RF FILTERS TO CONNECT

    Mobile device RF complexity increasing:Multiband- Today greater than 40 bands- Next generation up to 100 bands

    Multimode- Next generation includes 2G, 3G, 4G, 5G- Expanding high band spectrum

    Multi Connectivity- Data speeds driving architecture- Utilizing unlicensed 5GHz spectrum

    Akoustis single crystal RF filter technology supports the high band spectrum in smartphones enabling high internet speeds

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

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  • RF Front End (RFFE) valued for signal selectivity over signal manipulation

    (1) Source: Barclays, Semiconductor Market Perspectives, 2017(2) Source: Mobility Experts 2016, March 2017 Update

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    RF MARKET DYNAMICS

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  • BAW segment is the fastest growing RF filter opportunity (>16% CAGR)

    Wide bandwidth, higher frequency innovation enables new BAW player

    Source: Mobility Experts 2016, March 2017 Update INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    $12.4B ACOUSTIC WAVE FILTER MARKET IN 2021

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  • 5G Band Specification

    New sub 6GHz 5G bands: Band n77 at 3.3-4.2GHz Band n78 at 3.3-3.8GHz Band n79 at 4.4-5.0GHz(Source: Huawei, 2017)

    Global Snapshot of 5G Spectrum

    Licensed spectrum for 5G is 3.3-5.0GHz, and new unlicensed activity for 5.9-7.1GHz(Source: Qualcomm, Oct 2017)

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    EMERGING 5G PUSHING SPECTRUM HIGHER

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  • High Sound VelocityHigh Mechanical Coupling High Thermal Conductivity

    >10W

    Input Power (Watts)

    Out

    put P

    ower

    (Wat

    ts)

    Loss (dB)

    High power, wide bandwidth RF filters operating at high frequency

    Thickness (A)

    V ac

    (km

    /sec

    )

    Poly-AlN

    Single Crystal AlN (GEN2)

    BETTER

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    WHY SINGLE CRYSTAL FOR BAW?

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  • XB1 process qualification ongoing, Expect production process in-place to support product ramp in 2HCY18

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

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    Internal ManufacturingCanandaigua, NY

    XB1 Process to support RF Filters up to 7GHz

    Single Crystal BAW Resonator(XB1 Process)

    XB1: Silicon wafer platform

    SINGLE CRYSTAL BAW RF FILTER PROCESS (XB1)New

  • VERTICALLY-INTEGRATED DESIGN & MANUFACTURING

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    Akoustis FacilityCanandaigua, NY

    Acquired in June 2017 a 120,000 sq. ft. Wafer Fab,Class 100 Clean Room (30k+ sq. ft.), 150-mm Wafer Tools, 57-acres of real property and ongoing MEMS operation

    Transitioning existing DoD Trusted Foundry accreditationfor MEMS

    Consolidates Companys supply chain into NY Facility and internalizes single crystal BAW RF filter production with shorter cycle time and higher manufacturing capacity

    Advances Company transformation into an Integrated Design and Manufacturer (IDM) of patented, single crystal BAW RF filters

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  • FIRST TO ANNOUNCE 5.2GHZ BAW RF FILTER PRODUCT

    Addresses 5GHz co-existence in Tri-Band WiFi routers, Size reduction supports growing MU-MIMO complexity

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

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    Frequency (GHz) 5.95.0

    Perfo

    rman

    ce

    Industry Leading 5GHz BAW Performance

    AKF-1252 RF Filter solution optimized for Tri-Band WiFi Routers

    AKF-1252 RF Filter Product Reduced Size

    Ultra-small footprint 2.5 x 2 mm2Laminate module

    q Wide BandwidthSolution for U-NII-1+2A Band

    q Low Loss

    ~2dB in U-NII-1+2A band

    q High Rejection

    >54dB in U-NII-2C+3 bandq High Power Rating

    +32dBm maximum

    New

  • AKOUSTIS IP PORTFOLIO Foundational single crystal BAW devices

    and RF filters Vertical portfolio from platform substrates to

    system application 15 Patents(1), 22 patents pending plus

    numerous trade secrets Key University IP from Cornell and UCSB in

    materials

    (1) Includes Akoustis issued patents, Cornell patent under license (see PR 9-7-16), andUCSB patents under agreement (see PR 9-22-15)

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    http://www.akoustis.com/patents/

    IP GROWING PORTFOLIO OF KEY PATENTS

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  • AKOUSTIS TARGET END MARKETS

    (1) Source: Mobile Experts 2016, March 2017 Update(2) Source: Akoustis, Dedalus Consulting

    AKOUSTIS SOLUTION

    1.8-3GHz BAW Discrete/Multiplex Filter

    3-6GHz BAW Discrete/Multiplex Filter

    2.4/5.2/5.7GHz BAW Discrete Filter

    1.8-6GHz BAW Discrete/Multiplex Filter

    VALUE PROPOSITION

    Improve battery life & reduce dropped calls

    Size reduction, Improve battery life & reduce dropped calls

    Size reduction support 5GHz, multiband

    simultaneous operation

    Size reduction support higher power, improve receive

    sensitivity

    2017 FILTERMARKET SIZE $8.3 Billion(1) $2.2 Billion(2)

    4G LTE MOBILE 5G MOBILE WiFi INFRASTRUCTURE

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

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  • Future

    MOBILE WIRELESS / SMARTPHONE

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    Focus on mid-tier & high-tier smartphone models

    New smartphone models annually; model updates every 6 months

    Tier-1 use integrated Front End, more complex, longer design cycle (12-18 months)

    Tier-2 use partial Front End, utilize discrete filters, shorter design cycle (6-12 months)

    APPLICATION PRODUCT/CYCLE TIME

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  • MOBILE WIRELESS / SMARTPHONE

    OEM/Transceiver:

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    RFFEModule:

    RF filter performance drives data speed, phone heat and battery lifeVALUE PROPOSITIONS

    TARGET CUSTOMER

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  • WIFI

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    Focus on retail & enterprise models Most platforms utilize discrete RF filters New retail models every 6 months,

    Enterprise models every 12-18 months

    APPLICATION PRODUCT/CYCLE TIME

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  • WIFI

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    TARGET CUSTOMER VALUE PROPOSITION

    High Q, small form factor filters are necessary

    High frequency coexistence RF filters support Tri-Band

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    3.0mm

    8.2mm

    AKF-1252Akoustis

    2.5mm x 2.0mm x 0.9mm

    Akoustis5GHz BAW filter

    is23x smaller

    Single Crystal BAW Filter

    4.2mm

  • CUSTOMER ENGAGEMENTS - 1.5 to 5.2GHz

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    Chinese RFFE Manufacturer for Asia OEMs Multiple agreements signed Alpha filter samples shipped

    Customer #1 (Mobile 4G/LTE )

    $1B+ non-mobile company PO for military radar Alpha filter samples shipped

    Customer #2 (Radar)

    Fortune 500 company PO for Multiple bands, multiplexers Beta filter diplexer shipped

    Customer #3 (Milcom) Customer #4 (Mobile/5GHz WiFi)

    First PO received from Top-5 Mobile phone OEM Evaluation of LTE, 5GHz WiFi samples

    FREQUENCY1GHz 2GHz 3GHz 4GHz 5GHz 6GHz

    Several OEMs sampled

    New

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  • AKOUSTIS AT A GLANCE

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    $42.0M OF INVESTMENTS AND GRANTS IN USE

    AKTS

    Average Volume (Tr. 3 Months) 107.86k

    Shares Outstanding (12/31/17) 20.2M

    Market Cap (12/31/17) $125.8M

    Debt (12/31/17) $0.0M

    Cash (12/31/17) $11.7M

    Insider Ownership 23%

    Fiscal Year End June 30

    FINANCING ACTIVITIES

    Activity Latest Transaction Amount ($M USD)

    Seed 2014 $0.5M

    Financing 2015 $5.7M

    Financing 2016 $3.6M

    R&D Grants 2017 $1.1M

    Financing 2017 $31.1M

    Total $42.0M

  • SUMMARY

    INNOVATION IN SINGLE CRYSTAL BULK WAVE TECHNOLOGY

    Experienced and diverse team of RF & MEMS leadershighly capital efficient and significantly invested in Company

    Addressing fastest growing segment of $14.1 billion RF Front End total market(1)

    5G accelerating and 5GHz WiFi growingPositioned to benefit from escalating demands for mobile data requiring higher frequency operation

    Completed capital buildout of 1st BAW RF manufacturing line to support 5G, 5GHz bands

    Significant traction and engagement with large customers across focus markets

    Vertically-integrated design and manufacturingbusiness model in premium RF filter market enables highest value cross section

    (1) Source: Mobility Experts 2016, March 2017 Update

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  • A leading, fully-integrated designer & manufacturer of patented, single crystal BAW RF filters for large,

    rapidly growing markets.

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