airgain –a leading provider of advanced antenna...

NASDAQ:AIRG © Copyright 2017 Airgain, Inc. All Rights Reserved.

Airgain – A leading providerof advanced antenna technologies

Investor presentationSeptember 2017


This presentation contains forward-looking statements.

All statements other than statements of historical facts contained in this presentation, including statements regarding our future operating results, financial position and cash flows, our business strategy and plans andour objectives for future operations are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “plan,” “target,” “project,” “contemplate,” “predict,” “potential,” “would,” “could,” “should,” “intend” and “expect” or the negative of these terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievementsto be materially different from any future results, performance or achievements expressed or impliedby the forward-looking statements. These risks, uncertainties and other factors include, without limitation: the market for our antenna products is developing and

may not develop as we expect; our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations or our guidance; our products are subject to intense competition, including competition from the customers to whom we sell, and competitive pressures from existing and new companies may harm our business, sales, growth rates and market share; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers; our business is characterized by short product development windows and short product lifecycles; we sell to customers who are extremely price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a few contract manufacturers to produce and ship all of our products, a single or limited number of suppliers for some components of our products and

channel partners to sell and support our products, and the failure to manage our relationships with these parties successfully could adversely affect our abilityto market and sell our products; if we cannot protectour intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; our international salesand operations subject us to additional risks that can adversely affect our operating results and financial condition; our ability to identify and consummate strategic acquisitions, and risks associated with completed acquisitions adversely affecting our operating results and financial condition; and other risks described in our filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date here of, and we undertake no obligation to

revise or update this presentation to reflect eventsor circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under thesafe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995.

This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of themarkets in which we operate are necessarilysubject to a high degree of uncertainty and risk.

Important caution regarding forward looking statements

2


Who we are

212 patents & applications worldwide

Optimal antenna pattern selection

Dynamic selection for MIMO systems

Point-to-multipoint antenna selection

Switched directional antennas

3


Global engineering and solutions

Airgain’s worldwide service offerings are more relevant than ever

• The necessity for real world performance testing, validation services, and device characterization has become a requirement, not just a benefit

• Unique customer support across sales, design, supplychain and delivery

Scottsdale, AZDesign, manufacturing & sales office

San Diego, USAHeadquarters,sales & design offices

London, UKSales & design office

Melbourne, FLDesign office

Suzhou, ChinaSales & design office

Shenzhen, ChinaSales & design offices

Seoul, South KoreaSales office

Taipei,TaiwanSales office

4


Strengthened financial position

Well-positioned for growth

Asset light operatingmodel utilizing third-party,

contract manufacturing

Product suite wellpositioned within high

growth segments

Highly scalable platform for organic

and inorganic growth

Our global presence is paramount to

our success

Customer supportacross sales, design,

supply chain, anddelivery are unique

to Airgain

Regional presenceincludes sales,

design, integration,and technical support

Business model

Diversified, broad base of bluechip customers driving consistentrevenue growth

Long product lifecycles

5


Who wework with

6


GlobalMegatrends– ConnectedEverythingBy 2020 there will be close to 7 times the numbers

of connected devices as people on the planet*

*Source: PwC, Technological Breakthroughs: https://www.pwc.co.uk/issues/megatrends/technological-breakthroughs.html

7


Our opportunity

New technologies and end applications are increasing the need for better throughput tosupport and connect multiple types of devices, with a multitude of complex technologies

Strong customer base in the connected home, with

a refresh cycle being drivenby new technologies, namelyDocsis 3.1 and 802.11ac, and

a multi-year 802.11axfollow-on cycle

The need for improved connectivity is acceleratinggrowth in public and privatefleets, and driving innovation

in connected cars

Connectivity is movingbeyond the need to accessdata, as end points become

creators of data andnot consumers

Through our earlyinvolvement in new

technology trials andreference designs, we

believe we have effectivelypositioned ourselves to take

advantage of anticipatedgrowth in new markets

Strategic Alliance memberships further enhance our business

and products throughthe acquisition of technical

knowledge and collaboration, while working globally with

innovative partners and majormobile network operators

New Technology Alliance Memberships

8


Addressable market for Airgain (2017 to 2022 CAGR)

Enterprise Connected home IoT Auto

10% 12% 19% 21%

Projected total market growth from 2.5b to 4.8b*

*Sources: ABI and Machina Forecasts, 20169


Fleet management Safety, infotainment, internet and navigation

Connected car market opportunity

Aftermarket 55M in 2020* Auto OEM 100M in 2020*

• Outdoor antennas• Dual-LTE, Dual-

Wi-Fi, GPS

• Components forTier 1 & 2 suppliers

• Embedded & external antennas

*Source: Machina Research IoT Forecast, 201610


Leveraging our core technologies into new automotive opportunities

Aftermarket: Fleet Connectivity

• Mobile fleets require rugged external solutions for data, telematics and asset track connectivity

• Rugged external multi-technology antennas provide connectivity forpublic safety and private fleets

OEM: Connected Car

• Connected Cars require internal and external antennas for a complete solution

• Internal: In-car infotainment, gateways and driver interface

• External ‘Shark fin’: Driver assistanceand safety, vehicle to vehicle and infrastructure, vehicle softwareupdates and driver behavior

Our multiple RF Technology capabilities enable a complete solution

Embedded and external connectivity solutions for Cellular/LTE,5G, GNSS (GPS), Wi-Fi, Bluetooth, UHF and more

Fleet management SafetyWell-being

Drive assistance Mobility management Infotainment

11


Expanding opportunity for IoT (Internet of Things) connectivity

The proliferation of IoT devices continues to create profit and growth potential, with a projected 1.5b in 2020*

M2M and Industrial IoT

• In-building, Out-building andOn-building connectivity solutionsfor commercial, retail and office

• Outdoor kiosk, signage and asset connectivity and tracking

Connected Smart Homeand Smart City

• Embedded and external connectivity solutions for low power wide area networking, such as NB-IoT and LoRa

• Seemingly endless connectivity options from people and animals, to in-home gateways to city man-hole covers

*Sources: ABI and Machina, 201612


Airgain’s critical position in value chain

Airgain continues to be the essential value-added partner that our customers rely on,and our strong reputation is highly valued within the customer ecosystem

13

Influence Partner

Engage

CarriersClient

Objective

Key Accounts

Influence

Client OEMs & ODMs

Objective

Key Accounts

Engage

Chipset SuppliersClient

Objective

Key Accounts

Partner


6930 Mbps

4-12 antennas

Today

802.11 AC (II)

1750 Mbps

4-12 antennas

2014-Today

802.11 AC (I)

600 Mbps

2-4 antennas

2007-2013

802.11 N

54 Mbps

1-2 antennas

2003-2006

802.11 G

Highlights

Downstream Capacity

Production Date

Next Generation

Wi-Fi(2)

Full

The evolution of in-home cable bandwidth

DOCSIS 2.0(1) DOCSIS 3.0 DOCSIS 3.1 DOCSIS 3.1 Full Duplex

Higher upstream speed Greatly enhances capacity Capacity & efficiency progressionSymmetrical streaming &increased upload speeds

40 Mbps 1 Gbps 10 Gbps 10 Gbps

2002 2008 2016 TBD

Number of potential U.S. subscriber units to be upgraded: 178million(3)

Sources: 1-CableLabs / 2-Wi-Fi Findings by D-Link, Sept 2014 / 3-Leichtman Research: 59 mil Cable Broad Band subscribers and 48.6 mil TV viewers with on average 1.5 STBs

14


$27.8

$43.4

$24.3

2015 2016 Through Q2

$5.7$8.5 $11.3

$6.1

$9.9

$13.0$6.7

$12.4$9.3

$12.6

2015 2016 2017

Revenues

Annual revenue ($M) Quarterly revenue ($M)

Q1 Q2 Q3 Q4

15


Potential growth opportunities

Favorable market tailwinds

• 802.11ac wireless networking standard requires more antennas per device and natural replacement cycle

Create additional pull from carriers

• Demonstrate continued ROI of solutions to drive adoption

Geographic expansion

Leverage wins in emerging devices such as Smart metering and IoT

New market expansion such as automotive, enterprise and small cell

New products such as SaaS-based Wi-Fi monitoring solution for carriers

16


Key takeaways

• Leader in high performance antenna solutions for heterogeneous next-gen wireless devices and networks

• Growing addressable market, driven by proliferation of Wi-Fi connected devices,data intensive applications, streaming video and multiple connectivity standards for a “connected planet”

• Compelling business model with history of predictable revenue growth and profitability

• Strong outlook for potential growth and total market expansion

• Well protected technology position with212 patents and applications worldwide(June 30, 2017)

• Seasoned management team with 20+ years of average industry experience

Key Stats*

Shares outstanding Institutional holdings

IPO

9.5MFree float (est.)

7.5M 40%

Cash and equivalents (mrq)

$36.5MFounded

1995 2016

*As of June 30th 201717


Contact us

Chuck MyersCEO & President

Alexis WaadtDirector of Investor [email protected]

Airgain, Inc.3611 Valley Centre DriveSuite 150 San Diego, CA 92130

18

airgain –a leading provider of advanced antenna...

Documents