Arasor International Ltd. Jeffrey Cheng, EVP Corporate Development Scott Wilkie, VP Investor Relations
Important Information This presentation is provided to you for information purposes only and should not be construed as and shall not form part of an offer or solicitation to buy or sell securities or derivatives. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the company will be entered into on the basis of this presentation. To the maximum extent permitted by applicable laws, the Company makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no responsibility for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. This presentation contains forward looking statements that are subject to risk factors associated with technology and manufacturing companies. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a number of variables and changes in underlying assumptions which may cause results or trends to differ materially, including but not limited to: input price fluctuations, future product demand, currency fluctuations, industry competition, manufacturing risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks and cost estimates.
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Summary
Arasor International Ltd (“Arasor”) is a global developer of optoelectronic and wireless solutions for the telecommunications and consumer optoelectronics markets – Vertically integrated platform, with wafer fabrication, packaging and manufacturing – Headquarters in Silicon Valley (USA), with facilities in China, India, Japan and Australia
Arasor sells products for: – Telecommunications: • “Radio over Fiber” broadband wireless systems and access terminal solutions • Advanced optical transport components, modules and subsystems – Consumer Optics: • Laser light sources that enable next generation laser-based displays
Arasor is publicly listed on the Australian Stock Exchange (ASX) and has raised ~A$80m in public capital. – ASX ticker symbol: ARR – Market Capitalization: ~A$200m 3
Company Highlights
Tier 1 customers
End customers are global industry leaders such as Huawei Technologies, Pirelli Broadband Solutions, China Netcom (China), BSNL (India) and others.
Established operations
Significant asset base comprised of state of the art fabrication and automated production equipment
Significant market opportunities
–
Chip FAB and R&D in Silicon Valley, Japan and Australia
–
World-class production facility in China
Large addressable market as optical and wireless infrastructure is upgraded throughout China and India Marketplace for laser display is an emerging opportunity
Proprietary technology platform
Leads to significant cost and performance advantages for our products and solutions
Experienced management team
Management team is comprised of recognized industry leaders in optoelectronics whose previous companies have created billions in value through IPOs & trade sales
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Company Background
Established in late 2001
Initially, significant private funding from founders, VCs, and support from local governments
IPO in October 2006 on the ASX
Evolved into a vertically integrated supplier of optoelectronic and wireless solutions with a global presence
Over 300 employees in 5 locations worldwide
Research & Development
Production & Packaging
Wafer & chip fabrication
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Sales & Marketing
Our Goal
Become a Market Leader in Three Application Verticals Optical Transport 10Gb/s DWDM TXP
Broadband Wireless Access Backhaul + Terminal
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Consumer Optics Laser-based Display
Significant Addressable Market Opportunities
Optical
Wireless
Consumer *
7,000
Revenue ($A Millions)
6,000 5,000 4,000 3,000 2,000 1,000 0 2005
2006
2007
Sources: Ovum, ABI, Insight Media and company estimates
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2008
2009
* LTV market evolves from Plasma & DLP
Arasor’s Target Markets: China and India
China ~ “Government plans to spend $10B on wireless over next 5 years” (Australian Financial Review, Jun. 21st) – Arasor is currently in outdoor field trials with China Netcom • China Netcom selected Arasor after extensive process due to Arasor’s unique product advantages and local presence
India ~ Government plans to spend $5B on wireless over next 5 years (Australian Financial Review, Jun. 21st) – Like China, India has no copper infrastructure, so wireless is obvious winner – Arasor’s customer is BSNL, India’s largest telecommunications player – Arasor is supplying components for a wireless CPE
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Macro Growth Drivers - “Thirst for Bandwidth”
Bandwidth
IPTV
3G+ / WiFi / WiMax
ple i r T
ua Q /
lay P ple u r Mobile d Internet
VoIP Telephony
Feature - Rich Content
“Pull” Factors – Consumers and Enterprises Demand for High Bandwidth Applications 9
Arasor’s Product and Solutions Broadband Wireless Tower
Broadband Wireless Tower
Long Haul Core Network
Metro Network Access Edge
Satellite
Consumer’s Living Room
Arasor’s Unique Products Enable High Speed Wired and Wireless Communications and Laser Display Technology 10
Optical Transport
Tx
Tx
Tx
Tx . . . .
Optical fiber link
Tx
Tx = Arasor’s product
Arasor provides advanced optical networking components, modules and subsystems –
LiN modulators, receivers and transponders bridge the gap between optics and electronics
–
AOFR, a wholly owned subsidiary of Arasor, provides a full range of couplers, splitters, WDM solutions and other passive components
Through integration, Arasor’s optical solutions provide lower costs, smaller footprint
Partnership with Pirelli/Huawei to produce advanced integrated optical solutions and to penetrate the China marketplace 11
Broadband Wireless Access and Backhaul Arasor Products Antenna array
CPE
Central Office IPTV
Optical Link
“Radio over Fiber” allows the use of an optical link instead of RF coaxial cable to transmit analog signals through the wireless network – Previously using optical links has been too expensive
Arasor provides end to end broadband wireless systems to telco service providers – Central stations and antennas – Wireless CPE and access terminals 12
Consumer Optics: Laser Light Sources Mass produce and sell lasers modules directly
ZTE-Arasor Joint Venture Arasor Lasers
Selected Licensees
CM
Epi Growth
Wafer Process
Brands
Die Attach
Arasor
PPLN Key Components
Partners (licensed to assemble RGB per market segment) or company supplies directly 13
Brands design laser in TV and go to market
Laser Displays have a Wide Range of Applications
Lasers are a platform for all types of displays: In your
In the
In your
In your
In your
phone…
cinema…
pocket…
home…
car…
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End Customers Optical Transport
Broadband Wireless
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Consumer Optics
Substantial R&D, Fabrication and Manufacturing Facilities
Guangzhou, China Production & Packaging
200,000 ft2 state-of-the- art manufacturing and packaging facility with capacity to expand
Mountain View, USA Display Chip Fabrication
Yokohama, Japan Optical Chip Fabrication
Specialized wafer and chip fabrication for optical networking solutions
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Sydney & Canberra, Australia R&D, Optical & Chip Fabrication
Specialized lithium niobate wafer fabrication facility for consumer optoelectronic applications
Specialized lithium fabrication facility & Research & Development
A Highly Experienced & Successful Team… Board of Directors Simon Cao
Larry Marshall
Chairman and CEO
Executive Director
Founder of Arasor, personally funded over A$13m Previously founder and key executive of Avanex and Oplink Recognised by Forbes as “Godfather of WDM” Chairman AOC Techologies Previously co-founder/key executive at Iridex (Nasdaq)
Simon Eckersley
Non-executive Director
Partner, Hao Capital Charterhouse Group, Goldman Sachs
Tony Surtees
Non-executive Director
Director Santa Clara Group, former VP of Yahoo Inc
Ian Neal
Non-executive Director
Director Management Abroad Former National President of the Securities Institute
Laurie Kan
Non-executive Director
On Capital Group; Hao Capital
George Sycip
Non-executive Director
Galaxco China Group
Zhu Xin Kun
Non-executive Director
Shenzhen Venture Capital
Parviz Tayebati (TBC)
Non-executive Director
Founder of CoreTek and AZNA LCC
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Company Highlights
Tier 1 customers
End customers are global industry leaders such as Huawei Technologies, Pirelli Broadband Solutions, China Netcom (China), BSNL (India) and others.
Established operations
Significant asset base comprised of state of the art fabrication and automated production equipment
Significant market opportunities
–
Chip FAB and R&D in Silicon Valley, Japan and Australia
–
World-class production facility in China
Large addressable market as optical and wireless infrastructure is upgraded throughout China and India Marketplace for laser display is an emerging opportunity
Proprietary technology platform
Leads to significant cost and performance advantages for our products and solutions
Experienced management team
Management team is comprised of recognized industry leaders in optoelectronics whose previous companies have created billions in value through IPOs & trade sales
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