Akoustis Corporate 12Mar2018Akoustis’ business is subject to numerous risks and uncertainties, ......
Transcript of 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
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Corporate Presentation
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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
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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
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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
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WHY SINGLE CRYSTAL FOR BAW?
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XB1 process qualification ongoing, Expect production process in-place to support product ramp in 2HCY18
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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
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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
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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
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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
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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
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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
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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
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SUMMARY
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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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