A Leading Provider of Embedded Antenna Technologies - NASDAQ: AIRG Investor Presentation - AWS
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NASDAQ: AIRG
A Leading Provider of Embedded Antenna Technologies
Investor Presentation June 2017
Important Cautions Regarding Forward-Looking Statements NASDAQ:AIRG
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 and our 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 achievements to be materially
different from any future results, performance or achievements expressed or implied by 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 ability to market and sell our products; if we
cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; our international sales
and operations subject us to additional risks that can adversely affect our operating results and financial condition; the Antenna Plus acquisition may negatively affect our
operating results, financial condition or cash flows, including as a result of the assumption of known and unknown liabilities; risks associated with integrating the Antenna
Plus business into our current business; 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 hereof, and we undertake no obligation to revise or update this presentation to reflect events or circumstances after the date hereof. All
forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation
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 the markets in which we operate are necessarily subject to a high degree of
uncertainty and risk.
© Copyright 2017 Airgain, Inc. All Rights Reserved.
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Who We Are NASDAQ:AIRG
• Airgain is a leader in high performance, integrated solutions for next
generation wireless networking
• Design, integrate, test and deliver high-performance embedded
radio frequency (RF) and antenna technology
• Shipped into approximately 54 million devices in 2016, and 13
million devices in Q1 2017
• Profitable company with 10+ years of device/chipset performance
data and diverse partner and revenue base
• 185 patents and applications worldwide (Mar. 31, 2017)
Blue Chip Customers
33
Evolving & Growing Addressable Markets NASDAQ:AIRG
• Increased complexity within RF technology further strengthens Airgain’s value
• Device proliferation in emerging segments presents attractive high growth opportunity
Projected
Projected Number of Devices in Millions
Category CAGR(1) 30,000
Smart Home 37% 25,000
IoT 35% 20,000
Wearables 16% 15,000
Other Consumer 16% 10,000
Networking 3% 5,000
Automotive 3% -
2017 2018 2019 2020 2021 2022 Cumulative
Home Entertainment 2% units
Home Entertainment Automotive Networking
Other Consumer Wearables IoT
Smart Home
Source: ABI Research Wi-Fi Market Data Q2 2017, Excludes Cellular, PC’s, and tablets (not presently addressed by Airgain)
(1) Based on projected device sales for the period 2017 – 2022E
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Airgain’s Critical Position in Value Chain NASDAQ:AIRG
Client Carriers Client Chipset Suppliers
Objective Influence Objective Partner
Influence Partner
Key Key
Accounts Accounts
Engage
Client OEMs & ODMs
Objective Engage
OEMs ODMs
Key
Accounts
5
Business Model NASDAQ:AIRG
Strengthened Financial Position
• Diversified, broad base of blue chip customers driving consistent revenue growth
• Long product life cycles allow for predictable revenue streams
Well-Positioned for Growth
• Asset light operating model utilizing third-party, contract manufacturing
• Product suite well positioned within high growth segments
• Highly scalable platform for organic and inorganic growth
• Our global presence is paramount to our success
• Customer support across sales, design, supply chain and delivery are unique to Airgain
• Regional presence includes sales, design, integration and technical support
6Proven Track Record NASDAQ:AIRG
Annual Revenue ($M) Quarterly Revenue ($M)
$45.00
$14
$12.4 $12.6
$40.00
$12 $11.3
$35.00 $9.9
$10 $9.3
$30.00 $8.5
$8
$25.00 $6.8 $6.7
$6.4 $6.1 $6.2
$5.7 $6.0
$6
$20.00
$4
$15.00
$10.00 $2
$5.00 $-
2014 2015 2016 2017 2017
$-
2014 2015 2016 Q1 Q2 Q3 Q4
7Growth Opportunities NASDAQ:AIRG
• Favorable Market Tailwinds
• Technology driven upgrade cycle
• 802.11ac wireless networking standard and Docsis 3.1 devices require more antennas per device
• Create Additional Pull from Cable and Satellite Carriers
• More bandwidth and in home throughput drives customer retention
• Leverage Wins in Emerging Devices: smart metering, IoT, Fleet Connectivity
• New Market Expansion: automotive, enterprise, and Industrial IoT
• New Products: SaaS-based Wi-Fi monitoring solution for carriers to improve customer
experience and reduce support costs
8The Evolution of In-Home Cable Bandwidth NASDAQ:AIRG
Full
DOCSIS 2.0(1) DOCSIS 3.0 DOCSIS 3.1 DOCSIS 3.1 Duplex
Capacity & efficiency Symmetrical streaming &
Highlights Higher upstream speed Greatly enhances capacity progression increased upload speeds
Downstream Capacity 40 Mbps 1 Gbps 10 Gbps 10 Gbps
Production Date 2002 2008 2016 TBD
802.11 802.11 802.11 802.11 802.11
Next B G N AC (I) AC (II)
22 Mbps 54 Mbps 600 Mbps 1750 Mbps 6930 Mbps
Generation 1999-2002 2003-2006 2007-2013 2014-Today Today
Wi-Fi(2) 1–2 1–2 2–4 4 – 12 4 – 12
Antennas Antennas Antennas Antennas Antennas
Number of potential U.S. subscriber units to be upgraded: 178 million(3)
(1) CableLabs
(2) Source: Wi-Fi Findings by D-link, Sept 9, 2014
(3) Leichtman Research: 59 mil Cable Broad Band subscribers and 48.6 mil Tv viewers with on average 1.5 STBs
9Leveraging Our Core Technologies Into New Automotive Opportunities NASDAQ:AIRG
OEM: Connected Car Aftermarket: Fleet Connectivity
• Connected Cars require internal and external • Mobile fleets require rugged external solutions
Antennas for a complete solution for data, telematics and asset tracking
• Internal: In-car Infotainment, Gateways, Driver Interface connectivity
• External ‘Shark fin’: Driver assistance and safety, vehicle • Rugged external multi-technology antennas provide
to vehicle and infrastructure, vehicle software updates and connectivity for public safety and private fleets
driver behavior
Our multiple RF technology capabilities are required for a complete solution
Embedded and external connectivity solutions for Cellular/LTE, GNSS (GPS),
Wi-Fi, Bluetooth, UHF, and more
Infotainment Well-Being Safety Drive Assistance Mobility Fleet
Management Management
10Expanding Opportunity for IoT (internet of things) Connectivity NASDAQ:AIRG
M2M and Industrial IoT
• M2M and Industrial IoT
• In-building, Out-building and On-building
connectivity solutions for commercial,
retail, and office
• Outdoor kiosk, signage, and asset
connectivity and tracking
• Connected Smart Home and Smart
City
• Embedded, and external connectivity
solutions for Low Power Wide Area
Networking, such as NB-LTE and LoRa
• Seemingly endless connectivity options
from people and animals, to in-home
gateways to city man-hole covers
11Key Takeaways NASDAQ:AIRG
• Leader in high performance antenna solutions for next-gen
wireless networking
Key Stats
• Growing addressable market, driven by proliferation of Wi-
Fi connected devices, streaming video and multiple Shares Outstanding 9.3M
connectivity standards for a “connected planet” Free Float (est.) 7.3M
• Compelling business model with history of predictable Institutional Holdings 40%
revenue growth and profitability Cash and Equivalents (mrq) $41.8M
• Strong outlook for growth and market share expansion Founded 1995
IPO 2016
• Well-protected technology position with 185 patents and
applications worldwide (Mar. 31, 2017)
• Seasoned management team with 20+ years of average
industry experience
12Contact Us NASDAQ:AIRG
Company Contacts:
Chuck Myers
CEO & President
Alexis Waadt
Director of Investor Relations
Alexis@Airgain.com
(760) 932-0717
Airgain, Inc.
3611 Valley Centre Drive, Suite 150
San Diego, CA 92130
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