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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY Akoustis Technologies, Inc. Corporate Presentation September 2017

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Page 1: Akoustis Technologies, Inc.ir.akoustis.com/assets/uploads/kit/f840dfa9a1bedc1bce12432f629f71e... · Akoustis Technologies, Inc. ... looking statements included herein represent management’s

INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

Akoustis Technologies, Inc.

Corporate PresentationSeptember 2017

Page 2: Akoustis Technologies, Inc.ir.akoustis.com/assets/uploads/kit/f840dfa9a1bedc1bce12432f629f71e... · Akoustis Technologies, Inc. ... looking statements included herein represent management’s

INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

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

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

M A J O R P R O G R E S S S I N C E 2 0 1 4 .

MISSION – PROGRESS

Our mission Revolutionize the RF filter for mobile wireless using patented, single crystal piezoelectric materials.

3

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

May '14Company founded

Dec '14National Science Foundation (NSF) Phase 1 awarded

May '15First resonators, transfer process to Foundry partner

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

May‘15Company goes public, $5.7M PIPE (OTCQB: AKTS),

Dec ‘16 Add 2nd customer PO

Apr ‘16 $3.6M PIPE

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 AlNresonators

Nov ‘16 First 2.5GHz, 3.7GHz single crystal filters

Feb ‘17Closed $10.7M PIPE @ $5

Jul ’17John Kurtzweil named CFO, Expanded Board

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

May ’17Added 3rd

Customer PO

New

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

May ‘17Closed $5.96M PIPE @ $9

June ‘17Added to the Russell 2000

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

New

Mar ‘17Began trading on NASDAQ exchange

Sep ‘17Shipped Industry’s first Single Crystal 5GHz WiFiBAW RF Filter protosto multiple clients

New

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

AKOUSTIS SOLUTION

2-6GHz BAW Discrete/Multiplex Filter

2-6GHz High Power BAW Discrete Filter

2.4/5.2/5.7GHz BAW Discrete Filter

2-6GHz BAW Discrete Filter

VALUE PROPOSITION

Improve battery life & reduce dropped calls

Size reduction support higher power, improve

receive sensitivity

Size reduction support 5GHz, multiband

simultaneous operation

Size reduction support higher power, improve

receive sensitivity

FILTER MARKET SIZE $8.3 Billion $2.2 Billion

AKOUSTIS SINGLE CRYSTAL RF FILTER SEGMENTS

4

MOBILE INFRASTRUCTURE WiFi RADAR

Source: Mobile Experts 2016, Akoustis, Dedalus Consulting 2015

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY5

Target Customer

WiFi PREMISE EQUIPMENTApplication Product/Cycle Time

Value Proposition

High Q, small form factor filters are necessary

High frequency coexistenceRF filters support Tri-Band

Ø Focus on retail & enterprise models

Ø Most platforms utilize discrete RF filters

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

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY6

Target Customer

WIRELESS INFRASTRUCTUREApplication Product/Cycle Time

Value Proposition

Future

BTS RF filter performance drives efficiency & sensitivity

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

Ø More demanding environment, longer end product life cycle

Ø Field trials leading to mass scale deployment

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

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY7

Target Customer

MOBILE WIRELESSApplication Product/Cycle Time

Value Proposition

OEM/Transceiver:

RFFE Module:

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

Future

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

Ø New smartphone models annually; model updates every 6 months

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

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

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY8

q Global mobile traffic growth requires increase in spectrum q As spectrum allocation grows, the requirement for RF filters growsq RF Filters are the only growing segment in RF frontendq TAM suggests signal ‘selectivity’ valued over signal ‘manipulation’

RF FILTER LANDSCAPE

$0 B

$5 B

$10 B

$15 B

$20 B

$25 B

2015 2016 2017 2018 2019 2020 2021

Annu

al R

even

ue ($

M)

Filter

MIPI/CMOS ControllersAntenna

Tuning

Switches

LNA

Power Amplifier

RF Filter: fastest growing segment in RFFE

Source: Mobility Experts 2016

Ann

ual R

even

ue ($

B)

12X growth in smartphone traffic

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

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

multiple suppliers

(commodity)

2 dominantsuppliers(duopoly)

$12.4B MOBILE ACOUSTIC RF FILTER MARKET IN 2021

Source: Mobile Experts 2016

9

$0

$2

$4

$6

$8

$10

$12

$14

~$2.9B

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

BAW RF filter markets expected to grow from approx. $2.9 billion in

2017 to approx. $5.3 billion by 2021

~$5.3B

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY10

ADVANTAGES OF AKTS SINGLE CRYSTAL BAW

Inte

nsity

(au)

Delay Time (ps)

High Sound VelocityHigh Mechanical Coupling High Thermal Conductivity

High power, wide bandwidth RF filters operating at high frequency

-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

Adm

ittan

ce (S

)

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY11

FILTERS IN SUB 6GHz SPECTRUM FOR 5G Licensed Spectrum>40 LTE TDD & FDD bands

Shared & Unlicensed Spectrum2.3GHz Europe, 2.4GHz Wi-Fi, 3.5GHz USA

Unlicensed SpectrumNew U-NII 5GHz Wi-Fi

Potential New 5G BandsRegions Looking at 3.3 to 4.9GHz

0.4GHz 6GHz

BAW Offers 6 to >40 Times Reduction in Size (2 to 6GHz range)

Akoustis FocusCavity

Ceramic

SAW

IPD

BAW

INFRASTRUCTURE FILTER TECHNOLOGY

MOBILE FILTER TECHNOLOGY

BAW Offers >2 to 3 Times Improved Performance (2 to 6GHz range)

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY12

THREE CUSTOMER ENGAGEMENT ANNOUNCED

q Chinese RFFE Manufacturerq Multiple agreements signed q Approved supplier to Asia OEMsq Strong channel established

Akoustis Delivering Customer Product Prototypes from its NY Wafer Fab

Customer #1 (Mobile 4G/LTE ) Customer #2 (Non-mobile)

q $1B+ non-mobile companyq PO to develop BAW filter >3.5GHzq Supports military radar applicationq Additional filter design opportunities

Customer #3 (Non-mobile)

q Fortune 500 companyq PO for BAW opportunity <1.5GHzq Filter prototypes 2nd half CY2017q Integrated design manufacturer (IDM)

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

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AKOUSTIS FILTER CUSTOMER SAMPLINGS2

1(d

B)

2.6GHz LTE B41 3.8GHz Ultra High Band 5.3GHz WiFi

Filter Simulated

q First protos shipped to Cust. #1q Addt’l samples shipping to Mobile and

Infrastructure clients this quarterq Low passband loss with excellent out-

of-band isolation

q First protos shipped to Cust. #2q Expand designs to cover LTE B42 &

B43 and CBRS infrastructureq Low passband loss with excellent out-

of-band isolation

q Shipped first 5.3GHz WiFi protosq First commercially available BAW RF

filter available to 5GHz WiFi marketq Supports coexistent 5.2 & 5.7GHz

requirements for Tri-band routers

FilterMeasured

S21

(dB)

S21

(dB)

Packaged FilterMeasured

New

Packaged BAW filter

New New

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY14

q Acquired 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 NY WAFER OPERATIONS

Akoustis Facility—Canandaigua, NY

BAW Filter Vertical Capabilities

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

AKOUSTIS IP – BARRIERS TO ENTRYSystem

End user

HighSelectivity

Filters

Package Technology

AcousticDevices

& Manufacturing

PiezoMaterials

PlatformSubstrates

IP PORTFOLIO

q Foundational single crystal

BAW devices and RF filters

q 14 Patents , 17 Pending

and numerous applications

q Numerous trade secrets

q Key University IP from

Cornell and UCSB

“MOBILE COMMUNICATION DEVICE CONFIGURED WITH A SINGLE CRYSTAL PIEZO RESONATOR STRUCTURE”

“WAFER SCALE PACKAGING”

“INTEGRATED CIRCUIT CONFIGURED WITH TWO OR MORE SINGLE CRYSTAL ACOUSTIC RESONATOR DEVICES”

“METHOD OF MANUFACTURE FOR SINGLE CRYSTAL CAPACITOR DIELECTRIC FOR A RESONANCE CIRCUIT”

“METHOD OF MANUFACTURE FOR SINGLE CRYSTAL ACOUSTIC RESONATOR DEVICES USING MICRO-VIAS”

“RESONANCE CIRCUIT WITH A SINGLE CRYSTAL CAPACITOR DIELECTRIC MATERIAL”

“MEMBRANE SUBSTRATE STRUCTURE FOR SINGLE CRYSTAL ACOUSTIC RESONATOR DEVICE”

“SINGLE CRYSTAL ACOUSTIC RESONATOR AND BULK ACOUSTIC WAVE FILTER”

“COMMUNICATION FILTER FOR LTE”

15(+)-Includes Akoustis issued patents, Cornell patent under license (see PR 9-7-16),

and UCSB patents under agreement (see PR 9-22-15)

(+)

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

FINANCING ACTIVITIES

Activity Latest Transaction Amount (US$)

Seed JUN 2014 $0.53M

R&D Grants JAN 2017 $1.11M

PIPE 1 JUN 2015 $5.70MPIPE 2 APR 2016 $3.60M

PIPE 3 FEB 2017 $10.61M

PIPE 4 MAY 2017 $5.96M

TOTAL $27.51M

$27.5M OF INVESTMENTS AND GRANTS IN USE

STOCK - INVESTMENT

AKTSShare Price (9/1/17) $7.25

Market Cap (9/1/17) $138MIssued and Outstanding Shares (5/25/17) 19.1M

Insider Ownership 28%

Fiscal Year End June 30

Legal Counsel Womble Carlyle Sandridge & Rice LLP

Auditor Marcum LLP

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

SUMMARYq Fast growing high band RF filter market; Only growth segment in RF

Front end is acoustic wave filters

q Rapid development of patented, single crystal BAW technologyØ Numerous issued patents covering from raw materials to BAW RF FiltersØ Producing RF filter chips and packaged solutions at 2.5GHz, 3.8GHz & 5.3GHz

q Internalized Manufacturing producing Single Crystal BAW RF FiltersØ BAW manufacturing control, IP containment, consolidated RF Filter

manufacturing in Akoustis-owned N.Y. Production FacilityØ Vertically-integrated; Design and Manufacturing business model

q RF filter product protos shipped for Mobile, Radar and 5GHz WiFi ClientsØ Customers include Chinese front-end module manufacturer & two large, non-Mobile

commercial customersØ Continue to pursue new premium RF filter opportunities from 1-6GHz

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INNOVATION IN SINGLE CRYSTAL BULK ACOUSTIC WAVE TECHNOLOGY

9805-H Northcross Center CourtHuntersville, NC 28078www.akoustis.com

Contact CONTACT US

Bob PragDel Mar Consulting Group

Investor Relations(858) 794-9500

[email protected]

Jeff ShealyPresident & CEO

(704) [email protected]

Dave AicheleVP of Business Development

(704) [email protected]

John KurtzweilChief Financial Officer

(704) [email protected]

EXECUTIVE

PRODUCTS

INVESTORS

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