© POET Technologies Inc. | PUBLIC 1© POET Technologies Inc. | TSXV: PTK.V | PUBLIC
POET Technologies, Inc.
Company Overview
December 2018
© POET Technologies Inc. | PUBLIC 2© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 2
Safe HarborThis presentation contains forward-looking statements and forward-looking information within the meaning of U.S. and Canadian securities laws, including but not limited to statements relating to revenue potential, growth and/or projections such as those included at slides 7, 11, 14 - 19 of this presentation. Forward-looking statements and information can generally be identified by the use of forward-looking terminology or words, such as, "continues", "with a view to", "is designed to", "pending", "predict", "potential", "plans", "expects", "anticipates", "believes", "intends", "estimates", "projects", and similar expressions or variations thereon, or statements that events, conditions or results "can", "might", "will", "shall", "may", "must", "would", "could", or "should" occur or be achieved and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends. Forward-looking statements and forward-looking information are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.
The forward-looking statements and information in this presentation are subject to various risks and uncertainties, including those described under theheading "Risk Factors" in the Corporation's annual information form, many of which are difficult to predict and generally beyond the control of theCorporation, including without limitation risks: associated with the Corporation's limited operating history; associated with the Corporation's need foradditional financing, which may not be available on acceptable terms or at all; that the Corporation will not be able to compete in the highly competitivesemiconductor market; that the Corporation's objectives will not be met within the time lines the Corporation expects or at all; associated with research anddevelopment; associated with the integration of recently acquired businesses; associated with successfully protecting patents and trademarks and otherintellectual property; concerning the need to control costs and the possibility of unanticipated expenses; associated with manufacturing and development;that the trading price of the common shares of the Corporation will be volatile; and that shareholders' interests will be diluted through future stock offeringsor options and warrant exercises. For all of the reasons set forth above, investors should not place undue reliance on forward-looking statements.
Other than any obligation to disclose material information under applicable securities laws or otherwise as may be required by law, the Corporationundertakes no obligation to revise or update any forward-looking statements after the date hereof.
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© POET Technologies Inc. | PUBLIC 33© POET Technologies Inc. | TSXV: PTK.V | PUBLIC
POET Technologies, Inc.• Innovators in chip-scale integration of photonics products
• Company at an inflection point for rapid growth
• Received first orders for Optical Interposer solutions from leading global
networking companies valued at over $3M – doubling revenue
• TTM Revenue $3.1M as of Sept. 30, 2018
• Guiding to $8-10M Revenue for 2019, with only marginal increases in OpEx
• $2M CAPEX in 2019; no major additional to meet demand for 2-3 years
POET Optical Interposer Platform• Meets a long-standing industry need to integrate photonics and electronics
in the same chip-scale package
• Proprietary technology dramatically reduces cost of key components in
optical transceivers and ASIC’s
• First and only company to introduce true chip-scale integration and wafer-
scale assembly and test of photonics devices
• Minimal engineering risks to completion of platform applications
Markets / Applications / Customers• Fast growth, multi-billion $ markets driven by Internet traffic and hyperscale
data center development
• First application area is Optical Engines for transceivers for use in
datacenters; telecom and 5G cell networks to follow
• Customers are large, global Networking, Data Communications,
Telecommunications and Electronic Component companies
POET Technologies
Summary
© POET Technologies Inc. | PUBLIC 4© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 4
Gaming (1%,4%)
File Sharing(8%,3%)
Web/Data(18%,11%)
IP VOD(22%,14.5%)
Internet Video(51%,67.4%)
Source: Cisco VNI Global IP Traffic Forecast; 2016-2021
300
250
200
100
50
0
2016 20212020201920182017
Exab
ytes
per
mon
th
24% CAGR2016-2021
Data Communications market fueled by growth of the Internet
90% of the world’s data was created in the past two years alone*
*Source: IBM, Big Data Analytics, https://www.ibm.com/analytics/hadoop/big-data-analytics
© POET Technologies Inc. | PUBLIC 5© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 5
Photons and light waves compared to copper:• 100X more data per second• 10X lower power consumption• 10X less heat produced
Photonic Transceivers convert digital electric signals into light signals and back again
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• Need smaller, faster, cheaper and lower power integrated photonic transceivers
Data centers require new technology
• 5X more traffic in the Data Center than from the Data Center to the Internet
• Hyperscale Data Centers*:• Growing from 338 in 2016 to 628 by 2021• 53% of all installed data center servers in 2021• Global Internet Protocol (IP) traffic growing at 25% CAGR
* Source: Cisco Global Cloud Index, February 1, 2018
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Integrated photonic transceivers will dominate the market
Integrated transceivers forecast to
$20 Billionby 2025
from
$3.2 Billion todaysurpassing current discrete-
based devices in 2021
25,000
20,000
15,000
10,000
5,000
0
2012 2024202320222021202020192018201720142013 20162015 2025
PIC Transceivers
Discrete Transceivers
Sal
es R
even
ue ($
Mill
ions
) $3.2 Billion2017 $20 Billion
2025
Integrated Transceivers Sales Forecast
Source: Oculi, llc, Report Commissioned by POET
© POET Technologies Inc. | PUBLIC 8© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 8
Three types of Photonic Transceivers – two are Integrated
Conventional
“Silicon Photonics POET Optical Interposer™
Integrated
Photonic Integrated Devices (PICs) are rapidly replacing Conventional Photonics
Devices because of the lower cost of components, assembly and test
Built and tested one at a time
Built at wafer scale – hundreds at a time
Majority of transceivers sold today
© POET Technologies Inc. | PUBLIC 9© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 9
A novel approach to photonics device integration
Electrical Interposer
Electrical Die 1
Electrical Die 2
Electrical Interconnections
Electrical Die 1 Electrical Die 2
Optical Layer
Electrical Layer
Electrical Die 1 Electrical Die 2
Optical Die 1
Optical Die 2
WaveguidesElectrical Die 1
Electrical Die 2
Optical Die 1,2
POETOptical Interposer
• Massively lower cost than Conventional Photonics• Can both improve and complement Silicon Photonics• Provides a flexible and scalable Platform to replace
Silicon Photonics
• Electrical interposers are used today in high-speed computing
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The POET Optical Interposer excels by lowering costs
Rank Cost Driver Conventional Silicon Photonics POET Optical Interposer
1 Component Materials 0 ++ ++2 Passive Alignment 0 0 ++3 Pick and Place 0 + ++4 Wafer-level fabrication 0 ++ ++5 Waver-level testing 0 + ++6 Chip-scale integration 0 0 ++7 Known Good Die ++ + ++
• First company to offer true chip-scale integration and wafer-level assembly and test in photonics
© POET Technologies Inc. | PUBLIC 11© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 11
POET’s Optical Engine reduces Transceiver BOM Cost by more than 50%
• Translates into >100% increase in Transceiver Module Profit Margin
POET Optical Engine
Transceiver Module
Optics
Packaging & Test
Electronics 25%
40%
30%
% of BOM
Margin30%
BOM70%
% of Selling Price
Margin60%
BOM40%
$150
Current POET
$50 $50
$50
100G CWDM Price $250Approx. BOM Costs
Product Margin $50 $150
*modeled at production volumes
On Interposer
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POET’s Optical Interposer is a true platform technology
Photonics-in-a-Package• Optical Engines – receive and transmit • Light Bars – multiple lasers• Receivers – multiple detectors• Passive Assemblies – filters and
waveguides
Optical Engines for Datacom and Telecom
Transceivers
Photonics-integrated ASICs Switches, Graphics Generators,
Microprocessors
ASIC/uP/Router/Switch
Photodetectors for IOT and Industrial
SensingCWDM Laser Modules
Automotive LIDAR
Presentations at OFC 2018Microsoft and Arista looking for an Optical Interposer
Multiple Applications because of platform flexibility
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POET Technologies
Applicationsand Markets
Optical Engines for Datacom (Data Centers)
• 100G CWDM• 400G
Optical Engines for Telecom
• 10G PON ONU – end point of Fiber To The X (home, office, IoT)
• 10G PON OLT (Combo PON 10G/2.5G) – backward compatible central office to distribution point
• CPRI 25G B/H – cell network Radio Control Unit (RCU) to Radio Equipment (RE)
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2%
49%
12%
37%
TOTAL DATACOM REVENUE TAM* CUMULATIVE 2019-2023
100G Short Range 100G Medium Range
100G Long Range 400G All Ranges
5%
69%
14%
12%
TOTAL DATACOM UNIT SHIPMENT TAM*CUMULATIVE 2019-2023
100G Short Range 100G Medium Range
100G Long Range 400G All Ranges
Target Markets for POET Optical Engines will be 100G CWDM (second generation) and 400G (first generation)
51M Units $19 Billion
*TAM is Total Available MarketSource: LightCounting, “Mega Datacenter Optics”, June 2018. Unit Shipments and Revenue TAM for Indium-Phosphide-based transceivers only.
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100G CWDM market is in rapid growth phase – POET can address with second generation cost reduction – 400G now being designed
100G CWDM
400G
100G CWDM
400G
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Datacom Unit Shipment TAM*by Reach and Speed
100G Short Range 100G Medium Range
100G Long Range 400G All Ranges
*TAM is Total Available Market
$-
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
$3,000.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Datacom Revenue TAM*by Reach and Speed
100G Short Range 100G Medium Range
100G Long Range 400G All Ranges
UNITS US$Millions
Source: LightCounting, “Mega Datacenter Optics”, June 2018. Unit Shipments and Revenue TAM for Indium-Phosphide-based transceivers only.
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59%18%
23%
TELECOM UNIT SHIPMENT TAM*CUMULATIVE 2019-2023
10G PON ONU 10G PON OLT CPRI 25G B/H
110M Units
POET Optical Engines address top three Telecom market segments
• 10G PON ONU – end point of fiber To The X• 10G PON OLT (Combo PON 10G/2.5G) – backward compatible central office to distribution point• CPRI 25G B/H – cell network Radio Control Unit (RCU) to Radio Equipment (RE)
$4.8 Billion
34%
47%
19%
TELECOM REVENUE TAM*CUMULATIVE 2019-2023
10G PON ONU 10G PON OLT CPRI 25G B/H
Source: LightCounting, “Mega Datacenter Optics”, June 2018. Unit Shipments and Revenue TAM for Indium-Phosphide-based transceivers only.
*TAM is Total Available Market
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POET’s Business Model
Component Makers Module Makers System Integrators End Users
Optical Systems Ecosystem
• POET• Macom• Avago• Lumentum• Applied
Optoelectronics• Neo Photonics• Others
• Accelink• Finisar• Oclaro• Applied
Optoelectronics• Molex• Dongguan Mentech• Innolight• Source Photonics• Intel• Kaiam• Luxtera• Others
• Acacia• Ciena• Arista Networks• Infinera• Huawei• Nokia• ZTE• Fujitsu Networks• Coriant• Cisco• Others
Telcos• AT&T• Verizon, OthersCable Operators• Comcast• Warner, OthersData Centers• Microsoft• Google• Facebook• Baidu• Alibaba• Tencent• Others
• POET designs, manufactures, markets and sell its Optical Engines leveraging its proprietary Optical Interposer Technology to either “sub-assembly” makers or directly to module makers
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POET strategy for achieving growth
ACQUIRED DENSELIGHT
AND BB PHOTONICS
RECEIVED FIRST
INTERPOSER ORDERS
STRATEGIC DESIGN WINS FOR OPTICAL
ENGINES
ORDERS FOR PRODUCTION
DEVICES
2016
2020
2019
2018
2017
• Continued focus on Optical Interposer-based solutions
• Demonstrate device performance with existing key strategic customers
• Win orders for production quantities in datacom / telecom
• Expand co-development to other applications (ASICs)
• Expand customer base
$0
$8-$10M Est.
$4M Est.
$3M
REVENUE
GROWTH
INFLECTION POINT
© POET Technologies Inc. | PUBLIC 19© POET Technologies Inc. | TSXV: PTK.V | PUBLIC 19
1H 2018 2H 2018 1H 2019 2H 2019
Optical Interposer Platform Development
• Process transfer to SilTerra (Completed)
• Interposer module qualification (Started)
• Portfolio expansion in datacom• Portfolio expansion to telecom
• Portfolio expansion to sensing
100G Product Milestones
• Quad PIN device qualification (Completed)
• ROE prototype sampling• ROE qualification Start
• TROE prototype sampling• TROE qualification Start
• ROE qualification End• ROE customer orders
• TROE customer orders
400G Product Milestones
• ROE prototype sampling• ROE qualification Start
• ROE qualification End• ROE customer orders
• TROE prototype sampling• TROE qualification Start
POET Prototype and Qualification Roadmap
ROE = Receive Optical Engine TROE = Transmit and Receive Optical Engine
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POET Technologies
Company
POET Technologies, Inc.• Public by reverse merger in 2006• Name change to POET Technologies, Inc. in 2013• Ontario-based Corporation• Canadian OSC and US SEC compliant
Operating Subsidiaries:• DenseLight Semiconductors, Pte. Ltd. Singapore
• Compound semiconductor fab manufacturing chip-based light sources and detectors for the photonic sensing market
• BB Photonics, Inc. USA and UK• Source of proprietary dielectric material and waveguide technology
• Both companies acquired with stock in mid-2016
Locations:• Toronto, Ontario, Canada – Corporate HQ• San Jose, California, USA – Admin, design and lab• Singapore - design, fabrication and testing
100 Employees as of December 2018, located primarily in Singapore
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Senior Management Team
Dr. Suresh VenkatesanCEO
25 years semiconductor industry experience Motorola, Freescale & GLOBALFOUNDRIES
Technology Development & Commercialization
Thomas R. MikaEVP & CFO
25 years semiconductor industry experience, Tegal Corporation (NASDAQ: TGAL)
CEO and CFO leading IPO, several follow-on financings and restructurings
Rajan RajgopalGM and President, DenseLight
Over 28 years of semiconductor industry experience
Former VP at Global Foundries and Micron
David E. LazovskyExecutive Chairman
Founder, CEO and Director of Intermolecular (NASDAQ: IMI)
20 years of semiconductor industry experience - IMI and Applied Materials
Dr. William “Bill” RingSVP
20 years semiconductor industry experience: HP, Tyco, BB Photonics
Optical technology, product and business development
Dr. Yee-Loy LamCTO DenseLight
Co-founder of DenseLight Semiconductors
Professor Nanyang Technological University
Specialist in optoelectronics, fiber-optics sensors and photonics systems applications
Richard ZoccolilloSVP Strategic Marketing & Product Management
25 years optical networking operations experience AT&T, Lucent, Opnext, Infinera
Business Unit President, SVP Operations, Product and Technical Management
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Board of Directors
Peter D. Charbonneau
Director
Former General Partner, Skypoint Capital ,
funding early stage data and telecom co’s.
Board Member, Mitel and Teradici
John F. O’Donnell
Director
Counsel to Stikeman Keeley Spiegel
Pasternack LLP
Canadian attorney with 43 years of
experience specializing in corporate and
securities law
Chris Tsiofas
Director
Partner at Toronto Chartered Professional
Accountancy firm Myers Tsiofas Norheim LLP
25 years of experience on both financial and
operational issues
Jean-Louis Melinge
Director
Partner with ARCH Venture Partners
Managing Director, YADAIS
Former CEO, Kotura
Leading expert in silicon photonics and optical components
Don Listwin
Director
Founder, Listwin Ventures
Former CEO, Openwave Systems
CEO, Canary Foundation
Former EVP, Cisco Systems
Consulting Professor, Stanford School of Medicine
Mohandas Warrior
Director
President & CEO of Alfalight, 2004-2016
15 years at Motorola Semiconductors (Freescale)
leading test and assembly operations
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Multi-Billion $high-growth
market opportunity
Robust product development
pipelinestrong IP position
Able to leverage
existing design, manufacturing and sales capabilities
High-margin Business
Model with sustainable cost advantages
Paradigm Shift Photonic Integrated Circuits – only path
to dramatic cost reductions
Technologydeveloping for
for mass market commercialization
Investment Highlights
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