Metamaterial Technologies Inc. Light
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MASTERING LIGHT DRIVING INNOVATION CSE:MMAT JULY 2020 FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” looking statements are reasonable, such statements under applicable securities laws with respect to involve risks and uncertainties and are based on Metamaterial Inc. (“Metamaterial” or “the Company”) information currently available to the Company. Actual including, without limitation, statements regarding results or events may differ materially from those adjusted, estimated, forecasted, pro-forma, projected or expressed or implied by such forward-looking intended or anticipated future operations and/or statements. Factors that could cause actual results or financial performance, and all other statements that are events to differ materially from current expectations, not historical facts, statements regarding the among other things, include research and development Company’s priorities, the business strategies and risk associated with the Company’s product roadmap, operational activities of Metamaterial and its the Company’s ability to find investment partners and subsidiaries, the markets and industries in which the the timing and ability to get government approval for Company operates, including market opportunities for medical applications. These forward-looking the Company’s products and technology, environmental statements reflect various assumptions made by the benefits the Company’s development and production Company, are made as of the date hereof, and the pipeline and revenue potential, and the growth and Company assumes no obligation to update or revise financial and operating performance of Metamaterial, its them to reflect new events or circumstances, except as subsidiaries, and investments. Although the Company required by law. believes that the expectations reflected in such forward- CSE:MMAT 2 Summary 1. Platform Technology for broad market applications ripe for disruption; automotive, aerospace, medical devices and consumer electronics – blue ocean 2. Aggressive Growth in Intellectual Property and two M&As to date (51 Patents Granted in 28 Patents families, 38 patents pending) 3. Purpose Built Proprietary Manufacturing – highly scalable and sustainable products which we believe outperform the competition. Acquired world’s 1st roll-to-roll holographic processing pilot and manufacturing lines (developed by Intel). 4. Global Blue-Chip Customers are Co-investing / becoming Commercialization Partners 5. High Target Margins (>50%) and room to increase with economies of scale. CSE:MMAT 3 Changing the way we use, interact and benefit from light and other forms of energy CSE:MMAT 4 WHO WE ARE Design & Nanofabrication Developed Platform 3 Core Capabilities Large Patent Portfolio Strategic Partnerships Experts $60M Invested Since Holography, 51 Granted Patents in Relationships with Breakthrough performance 2011 Lithography & 28 Patent Families. Fortune500 Companies across a wide range of Wireless Sensing 38 Patents Pending across multiple applications, driven by industries; Automotive, customer requests Consumer Electronics, Medical, & Aerospace CSE:MMAT 5 META is a Key Player in the Value Chain Design/Software Driven Final Product Nanofabrication & Testing Assembly Consumer Raw Materials Large Area Nano-patterning META works with raw material vendors and Original Equipment Manufacturers. META has a library of proprietary CSE:MMAT 6 materials META’s Platform Technology Key Advantages vs. Competition: • Lower Production Cost + = • Flat & Scalable Manufacturing • High Production Yield • Precise Control • Higher Performance • Customizable Designs Manufacturing & Platform Scalable & Sustainable • Production in minutes vs. Design Process Technology Products competitors taking hours • Sustainable Raw Materials A leader in metamaterials design and manufacturing moving the technology from R&D to commercialization CSE:MMAT 7 COMPANY TIMELINE Series A and OEM Key supply and Product Launch University Collaborations 1st Major OEM Deal licensing partnerships UNB, UdeM Prototype, Proof of Platform with Boeing, Artemis optical and Covestro MRI & GlucoWise began Partnership with Human Testing 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NRC & NSERC Grants 1st Patent Filed New Head Office Acquisition and OEM Partnership with Acquisition and OEM Listed to Trade Algorithm Developed Halifax, NS Canada Acquired Rolith Inc. Lockheed Martin Acquired Mediwise. on CSE (Pleasanton, CA, USA) (London, UK) 20 Patents families 28 Patent Families Global Distribution Agreement with SATAIR CSE:MMAT 88 MARKET OPPORTUNITIES Forecast of Revenues from Metamaterials by Application/End Segment ($ Millions) $4.1B by 2025 Metamaterials Market (Emerging Market 43% CAGR) Lux Research commented in their June 2019 Report, they expect “ the Meta Materials market to move towards $10.9bn by 2030. CSE:MMAT 9 Source: n-tech Research, Lux Research, Internal META Estimates MARKET SCOPE & BEYOND Medical Devices Energy Med-tech is ready for disruption. The solar industry awaits the Medical device market sales worth next major breakthrough $529 Billion by 2022 (5.2% CAGR) Photovoltaic (PV) market $333 Billion (25.1% GAGR) MISSION To Make Products Smarter and More Sustainable by Utilizing Light and Consumer Electronics Advanced Materials Electronics/displays & Consumer Electric Everything Coms sectors are growing Vehicle Electrification massively with market sales of has just begun. Photovoltaic (PV) $3+Trillion (23% CAGR) market $567 Billion (22% CAGR) Source: IDTechEx, Allied Market Research, Evaluate Ltd. & Internal META estimates CSE:MMAT 10 Value Proposition: Higher Performance + Environmental Benefits Example of Environmental & Energy Benefits NanoWeb® is the best alternative to compared to ITO (Indium Tin Oxide) substrates Indium Tin Oxide 97% 90% 86% META’s products can offer Reduction Savings Reduction in mining wastes in raw materials in the air pollution up to 40x performance used produced improvements, are sustainable and cost effective. 76% Up to 7,000% 40% Reduction Reduction Savings in the water in energy in the amount of pollution consumption water used CSE:MMAT 11 Source: IDTechEX, Internal META estimates Wireless Sensing COMPETITIVE ADVANTAGE In 2019, META partnered with Samsung’s Advanced Institute of META’s Wireless Sensing capability enables fabrication of Technology team, to develop sensors & antennas completely invisible to the human eye. transparent fingerprint sensors META’s touch sensors can be placed below smartphone suitable for next generation displays, on windows of vehicles or buildings and home smartphones and tablets. appliances. META’s antennas can operate from low to high frequencies “Transparent fingerprint sensors were fabricated to have lower resistance and higher (2G, 3G, 5G and beyond) and provide communication transmittance compared to the conventional systems for conventional, EV and autonomous vehicles. sensors.” “Fingerprint sensors made with RML can have lower sheet resistance and higher visible light transmittance than the sensors made of conventional transparent conductor materials, such as ITO and silver nanowires” Source: Conference of the Next Generation Lithography 2019 (public information) Hyun-Joon Kim-Lee1. CO-DEVELOPMENT PARTNER 12 Source: Internal META estimates CSE:MMAT KEY INVESTORS & PARTNERS Major global corporations and top national labs & granting organizations in the U.S., U.K. & Canada have validated META’s robust, proprietary tech platform. CSE:MMAT 13 Product Roadmap – Near Term Focus on Aerospace & Defence and Consumer Electronics /IOT markets Augmented Reality Optical Filters and Laser Protection Transparent Heaters Transparent Antennas Optical components for metaVISIONTM Advanced Optical metaAIR® eyewear laser protection NanoWeb® film-based NanoWeb® film-based antennas Augmented Reality systems and Components heating/defogging casted into glass for 5G sensor head-up displays PARTNERS: Satair, Airbus, comms PARTNERS: OEM eyewear Covestro, RCMP, Lufthansa PARTNER: Eyewear OEMs, PARTNERS: Leading AR manufacturers, Law Technik Government Agencies, Headgear companies, Top Automotive enforcement agencies, OEMs PARTNERS: OEMs, Tier 1 Automotive suppliers Commercial optical component Tier 1 Glass OEMs and TelCo marketplace CAPEX INVESTMENT / CAPEX INVESTMENT / SOURCE: SOURCE: Existing In-house, new CAPEX INVESTMENT / Existing In-house CAPEX INVESTMENT / SOURCE: CAPEX INVESTMENT / roll-to-roll production to be installed SOURCE: Existing In-house In progress (installation Q4 2020) SOURCE: In progress in 2021 PRODUCTION CAPACITY: (installation Q4 2020) PRODUCTION CAPACITY : High volumes PRODUCTION CAPACITY: PRODUCTION CAPACITY: High volumes Low volumes until 2021 PRODUCTION CAPACITY: Very High volumes Low volumes until 2021 REVENUE POTENTIAL* REVENUE POTENTIAL* REVENUE POTENTIAL* REVENUE POTENTIAL* $50.0M/yr REVENUE POTENTIAL* $38.4M/yr $10.0M $3.0M/yr 1,000,000 units @ $50 / Unit $20.0M/yr 48,000 units @ $800 / Unit 25,000 units @ $400 / Unit 100,000 units @ $30 / Unit 200,000 units @ $100 / Unit *Internal META estimates based on META’s forecasted annual manufacturing capacity (5days, 2 shifts) and avg. selling price per unit (pricing may vary depending on volume orders) CSE:MMAT 14 MTI Core Lithography Technology Product Roadmap – Mid Term to Long Term 1/2 NanoWeb® product line expansion towards Automotive, 5G and Energy applications Displays Solar Transparent Transparent Touch Sensor for Optical components for Coating that improves solar Heaters EMI Shielding Flexible