akoustis technologies, inc....2018/01/17 · akoustis technologies, inc. investor presentation...

INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

Akoustis Technologies, Inc.

Investor PresentationJanuary 17, 2018


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 aware that the forward-looking statements included herein represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Akoustis’s business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results, our dependence 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 are canceled or delayed, our ability to implement innovative technologies, our ability to bring new products to market, achieve design wins versus our competitors 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 could disrupt our business and may not be successfully integrated, variability in manufacturing yields, our ability to retain the Trusted Foundry accreditation from the STC- MEMS acquisition, industry overcapacity, inaccurate product forecasts and corresponding inventory and manufacturing costs, dependence on 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, fluctuations in the price of our common stock, our ability to protect our intellectual property, claims of intellectual property infringement and other lawsuits, security breaches and other similar disruptions compromising our information, and the impact of government or environmental regulations. These and other risks and uncertainties, which are described in more detail in Akoustis’ most recent Annual Report on Form 10-K and in other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of 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, Inc.

FORWARD LOOKING STATEMENTS

1


EXECUTIVE LEADERSHIP & PARTNERS

2

JEFF SHEALYCEO, FOUNDER

DAVID AICHELEVP BUS DEV

Former Director RFMD (Qorvo) & Exec VP Private Company

23 YRS Industry Exp.,BSEE & MBA

University Partners

Commercial Partners

National Science Foundation (NSF)

Former VP & GM at RFMD (Qorvo)Co-founded RF Nitro (sold to RFMD)

22 YRS Industry Exp., MBA & PhD

ROHAN HOULDENVP ENG

Former GM at Qorvo & Eng. Mgr at Skyworks27 YRS Industry Exp.,

BSEE & MBA

JOHN KURTZWEILCFO

Former CFO at WolfspeedCREE, Extreme Networks;

30 YRS Industry Exp.,CPA & MBA

MARY WINTERSVP WAFER FAB

Former Director MEMS ITC & Sr. Eng. Eastman Kodak18 YRS Industry Exp.,

BSCE & MS


SEASONED BOARD MEMBERS

3

JERRY NEALCO-CHAIRMAN,

DIRECTOR

ART GEISSCO-CHAIRMAN,

DIRECTOR

STEVE DENBAARSDIRECTOR

JEFF MCMAHONDIRECTOR

Founded RFMD (now Qorvo), 35 YRS+ RF and

Wireless Industry Experience

Former VP Operations RFMD (now Qorvo),

previous Alpha mgmt. (now Skyworks)

Co-founded Nitres, Soraa, Soraa Laser Diode; UCSB Professor; Expert in III-N

Materials

Director at North Highland, 17 YRS+ Mgmt. Consulting

Experience

SUZANNE RUDYDIRECTOR

Former VP of Tax and Treasurer at Qorvo,

UNC, UCSB degrees; Financial Expert

STEVE MILLERDIRECTOR

Former President/CEO and Chairman at Sawtek. Former

Director at TriQuint


Our mission Deliver disruptive RF filters for next generation mobile wireless using patented, single crystal piezoelectric materials

4

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

May '14Company founded

May '15First resonators, transfer process to Foundry partner

Aug ‘16 Agreements w/ Tier 1 Chinese RFFE Module MFR

May‘15Company goes public (AKTS),

Dec ‘16 Add 2nd customer PO

Jul '14First BulkONE® patents filed

Jul ‘16 Produced world’s first single-crystal BAW RF Filters

Oct ‘16Achieve milestone resonator Q=2914

May '16First single crystal AlN resonators

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

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

May ’17Added 3rd

Customer PO

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

Key EventMar ‘17Began trading on NASDAQ exchange

Sep ‘17Shipped Industry’s first Single Crystal 5GHz WiFi BAW RF Filter protos to multiple clients

AKOUSTIS MISSION AND PROGRESS

Nov ’17Shipped 1st

diplexer; Improved 5GHz WiFiProtos

Nov ’17First PO from Top-5 Mobile OEM for LTE & 5GHz WiFifilter samples

Jan ’18Complete capital buildout of 1st

BAW filter line in N.Y. to support 5G

New

INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY5

MOBILE DEVICES REQUIRE RF FILTERS TO CONNECT

Mobile device RF complexity increasing:

q Multiband Ø Today greater than 40 bands Ø Next generation up to 100 bands

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

q Multi Connectivity Ø Data speeds driving architecture Ø Utilizing unlicensed 5GHz spectrum

WiFi

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

speeds…


q RF Front End (RFFE) valued for signal ‘selectivity’ over signal ‘manipulation’

RF FILTER MARKET DYNAMICS

(1) Source: Barclays, Semiconductor Market Perspectives, 2017(2) Source: Mobility Experts 2016, March 2017 Update(3) Source: No. 196 of the Constitution of the International Telecommunication Union

“Radio frequencies are limited natural resource and that they must be used rationally, efficiently and economically…” (3)

$0 B

$2 B

$4 B

$6 B

$8 B

$10 B

$12 B

$14 B

$16 B

$18 B

$20 B

2015 2016 2017 2018 2019 2020 2021

Ann

ual R

even

ue ($

M)

Filter

MIPI/CMOS ControllersAntenna

Tuning

Switches

LNA

Power AmplifierA

nnua

l Rev

enue

($B

)(2)

RF Frontend (RFFE) TAM

RF filter: FASTEST growing segment in RFFE

RF Content Growth per Device


$12.4B MARKET IN 2021

Source: Mobility Experts 2016, March 2017 Update

q BAW segment is the fastest growing RF filter opportunity (>16% CAGR)q Wide bandwidth, higher frequency innovation enables new BAW player

2 dominantsuppliers(duopoly)

$0

$2

$4

$6

$8

$10

$12

$14

~$2.6B

SAW Filters (Low Band)Multiple Suppliers (Commodity)

BAW Filters (High Band)2 Dominant Suppliers (Duopoly)

Market for AKTS’ patented, single-crystal

piezoelectric BAW RF filter technology

2016 2021

~$4.8B


q 3GPP approved first release of 5G standard (Dec 2017)q Key drivers include massive data requirement to

support Artificial Intelligence (e.g. autonomous vehicle)q More data in 5G requires 30x reduced latency (1msec) q Verizon deploying 5G mm-Wave for residential

broadband in 3-5 US markets (2018) q AT&T deploying 5G Mobile in 12 US markets (2018)q China focusing on C-V2X for automotive, IoTq Last mile to include new 3.5GHz wireless spectrum q Flagship phones in early 2019 (LTE to coexist with 5G)

5G Accelerating in 2018

(1) Source: “Mobile Innovation: How 5G will Enable the Future”, CES. January 10, 2018, Las Vegas, NV.

CES 2018 Mobile Innovation Forum


EMERGING 5G PUSHING SPECTRUM HIGHER 5G Development in China

”China’s Ministry of Industry andInformation Technology (MIIT) hasofficially reserved 3.3-3.6 GHz and4.8-5 GHz for 5G service, and it willlikely free up 3.6-4.2 GHz for future5G allocation…”

(Source: MIIT, 9.11.17)

(Source: Fierce Wireless, 11.15.17)

”Applying for 5.905-5.925 GHz LTEV2X trial” for vehicular applications.

Global Snapshot of 5G Spectrum

(Source: Qualcomm, Oct 2017)

Licensed spectrum for 5G is 3.3-5.0GHz, and new unlicensed activityfor 5.9-7.1GHz

5G Band Specification

(Source: Huawei, 2017)

New sub 6GHz 5G bands:Band n77 at 3.3-4.2GHzBand n78 at 3.3-3.8GHzBand n79 at 4.4-5.0GHz


IP – BARRIERS TO ENTRY

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

SystemApplication

HighSelectivity

Filters

Package Technology

AcousticDevices

& Manufacturing

Piezo Materials

PlatformSubstrates

AKOUSTIS IP PORTFOLIO

q Foundational single crystal BAW devices and RF filters

q Vertical portfolio from platform substrates to system application

q 15 Patents(1), 22 patents pending plus numerous trade secrets

q Key University IP from Cornell and UCSB in materials

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

Akoustis IP Coverage


High Sound VelocityHigh Mechanical Coupling High Thermal Conductivity

ADVANTAGES OF AKTS’ SINGLE CRYSTAL BAW

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

25

27

29

31

33

35

37

39

41

25 27 29 31 33 35 37 39 41

Loss(dB)

Outpu

tPow

er(W

atts)

InputPower(Watts)

>10W

Input Power (Watts)

Out

put P

ower

(Wat

ts)

Loss (dB)

Adm

ittan

ce (S

)

Frequency (GHz)

High power, wide bandwidth RF filters operating at high frequency

Thickness (A)

V ac

(km

/sec

)

Poly-AlN

Single Crystal AlN (GEN2)

BETTER


EXPANDING BAW CAPABILITY BEYOND 6GHz

Frequency (GHz)

RF F

ilter

Tec

hnol

ogy

Perf

orm

ance

Single Crystal BAW (Extends up

to 20GHz)

TC SAWSAW

Poly Crystal BAW

LB MB, HB, UHB & Beyond – WiFi, LTE, LTE A/Pro, Emerging 5 G

Deploying EmergingLegacy

0 1 2 3 4 5 6

FocusAkoustis focused on 2-6GHz Rangeq Opportunity for single

crystal BAW to dominate 5GHz Wi-Fi and emerging 5G Mobile where higher performance RF filters are required

q Focus on High Band solutions to differentiate on performance


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

‘17 FILTER MARKET SIZE $8.3 Billion(1) $2.2 Billion(2)

4G LTE MOBILE INFRASTRUCTUREWiFi5G MOBILE


Target Customer Application Product/Cycle Time

14

Value Proposition

OEM/Transceiver:

RFFE Module:

RF filter performance drives data speed, phone heat and battery life

Future

q Focus on mid-tier & high-tier smartphone models

q New smartphone models annually; model updates every 6 months

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

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

MOBILE WIRELESS / SMARTPHONE



Value Proposition

High Q, small form factor filters are necessary

High frequency coexistenceRF filters support Tri-Band

WIFI

q Focus on retail & enterprise models

q Most platforms utilize discrete RF filters

q New retail models every 6 months, Enterprise models every 12-18 months


5GHz BAW ENABLES WiFi SIZE REDUCTION

5.2GHz Radio

3.0mm

8.2mm 4.2mm

AKF-1252Akoustis

2.25mm x 2.0mm x 0.8mm

Volume = 103 mm3 Volume= 3.6 mm3

FILTER Akoustis5GHz

BAW filter is 28x

smaller

Tri-Band2.4/5.2/5.7GHz WiFi Router(2x2 MIMO)

Single Crystal BAW Filter

Source: Link-Sys AC2200 MU-MIMO Tri-Band Router



Value Proposition

Future

BTS RF filter performance drives efficiency & sensitivity

WIRELESS INFRASTRUCTURE

q Focus on small cells & massive MIMO Base Station (BTS)

q More demanding environment, longer end product life cycle

q Field trials leading to mass scale deployment

q Reliability testing, longer design cycle (15-24 months)


CUSTOMER ENGAGEMENTS - 1.5 TO 5.2GHz

q Chinese RFFE Manufacturer for Asia OEMs

q Multiple agreements signed

q Alpha filter samples shipped

Customer #1 (Mobile 4G/LTE )

q $1B+ non-mobile company

q PO for military radar

q Alpha filter samples shippedCustomer #2 (Radar)

q Fortune 500 company

q PO for Multiple bands, multiplexers

q Beta filter diplexer shipped

Customer #3 (Milcom) Customer #4 (Mobile/5GHz WiFi)q First PO received from Top-5 Mobile phone OEM

q Evaluation of LTE, 5GHz WiFi samples

q First filter sample shipment expected Dec 2017

FREQUENCY1GHz 2GHz 3GHz 4GHz 5GHz 6GHz

Several OEMs sampled

New

New


q Acquired in June 2017 a 120,000 Sq. Ft. Wafer Manufacturing Facility, Class 100 Clean Room, 150-mm Wafer Fab Tools, 57-acres of real property and ongoing MEMS operation

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

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

q Transitioning existing DoD Trusted Foundry accreditation for MEMS

Akoustis Facility—Canandaigua, NY

BAW Filter Vertical Capabilities

INTEGRATED DESIGN & MANUFACTURING


Mapping Akoustis BAW to NY MEMS Factory

q Limited outsourced wafer processingq R&D process developed to optimize

single crystal piezoelectric materialq Achieved first 2.6GHz, 3.8GHz and

5.2GHz filters

SINGLE CRYSTAL PIEZOELECTRIC LAYER

AIR CAVITY

BOTTOM ELECTRODE

TOP ELECTRODE

SUBSTRATE


AIR CAVITY

BOTTOM ELECTRODE

TOP ELECTRODE

SUBSTRATE

q RF MEMS manufacturing flowq Flexible substrate platform (thermal, frequency & cost)q In-house Epi manufacturingq High manufacturing precision recipeq Frequency trimming capability

AKOUSTIS NY FAB TECHNOLOGYORIGINAL TECHNOLOGY

Manufacturing Focus


Single Crystal Bulk Acoustic Resonator (BulkONE®)

COMPETING BAW FILTER TECHNOLOGIES

Poly Film Bulk Acoustic Resonator (FBAR)

Poly Solidly-Mounted Resonator (SMR)

Bragg Reflector


AIR CAVITY

BOTTOM ELECTRODE

TOP ELECTRODE

SUBSTRATE

Polycrystalline Piezo Polycrystalline Piezo Single Crystal Piezo

Topside Air Cavity Topside Air Cavity Topside Air Cavity

Backside Parasitic Backside Air Cavity Backside Air Cavity


FINANCING ACTIVITIES

Activity Latest Transaction Amount ($M USD)

Seed 2014 $0.5M

PIPE 2015 $5.7M

PIPE 2016 $3.6M

R&D Grants 2017 $1.1M

PIPE 2017 $31.1M

Total $42.0M

$42.0M OF INVESTMENTS AND GRANTS IN USE

AKTS

Share Price (11/10/17) $5.50

Shares Outstanding (11/13/17) 19.3M

Market Cap (11/10/17) $105M

Debt (11/13/17) $0.0M

Cash (11/13/17) $4.7M

Insider Ownership (9/30/17) 38%

Fiscal Year End June 30

22Source: 10-Q (filed 11/13/17) and Akoustis management as of 11/13/17

AKOUSTIS AT A GLANCE


q Experienced and diverse team of RF & MEMS leaders—highly capital efficient and significantly invested in Company

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

q 5G accelerating and 5GHz WiFi growing—Positioned to benefit from escalating demands for mobile data requiring higher frequency operation

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

q Significant traction and engagement with large customers across focus markets

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

SummaryA leading, fully-integrated designer & manufacturer of patented, single crystal BAW RF filters for large, rapidly growing markets.Akoustis

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

akoustis technologies, inc....2018/01/17 · akoustis technologies, inc. investor presentation...

Documents