November December 18, 2015 2015
Disclaimer The information contained in this presentation has been provided by the Company and has not been independently verified. Except in the case of fraudulent misrepresentation, no responsibility, liability or obligation is accepted by the Company or any of its officers, employees or agents in relation to the accuracy or sufficiency of this information and any such liability is expressly disclaimed. No representations or warranties, express or implied, are given as to the accuracy or completeness of any information contained in this presentation, any other written or oral information provided in connection with this presentation or any data which such information generates. The Company does not undertake to, and is under no obligation to, provide any additional information or to remedy any omissions in or from this presentation. This presentation does not constitute an offer or invitation by the Company or its financial advisors or any of their officers, employees or agents for the sale or purchase of securities or of any assets, business or undertaking, nor any form of commitment or recommendation by the Company or its financial advisors or any of their officers, employees or agents. Distribution of this presentation in or from certain jurisdictions may be restricted or prohibited by law and neither the Company nor its financial advisors accept liability to any person who does not comply with such restrictions or prohibitions. 2
Quantum Materials Corp. (OTCQB: QTMM) Founded January 2007. 12 Employees. Located din San Marcos Texas (Austin Metroplex). Products include Quantum Dots and other nanoparticles. Industry-leading production technology. Strong Intellectual Property Portfolio, Patent portfolio acquired from Bayer AG, Technology licensed from Rice University and University of Arizona, Quantum Materials Corp proprietary intellectual property. 3
What are Quantum Dots? Nanoscale semiconductor crystals. (Approximately 10,000 would fit across the diameter of a human hair). QDs emit either photons or electrons when excited. The color of light emitted can be precisely controlled making them the ideal solution for taking flat panel displays and TVs to the next level. Source: Discovery.com Photoluminescence Source: IEEE Spectrum Electroluminescence 4
The LCD TV/Display Market LCD TV/Displays make up the lion s share of a $100 billion+ market. The industry has pushed growth recently by selling us higher resolution. The 4K TV market share is exploding. The next consumer purchase driver will be vivid color. LCD Shipments of LCD displays with QDs forecast to rise from less than 1mm units last year to more than 135mm by 2020. 5
Vivid COLOR is the Next Big Thing Consumers love vibrant color, and manufacturers thought OLED was the answer, But OLED manufacturing is too expensive, And OLED requires massive infrastructure CAPEX. Photo: TCL Fortunately, we have the answer: QDs are a drop-in solution with existing infrastructure, QDs allow for OLED-like color performance at about half the price while maintaining the manufacturer s margins, Our QDX TM QDs have unique advantages. 6
QD vs. Conventional TVs and Displays White LED Green Channel QDs Produce Truly Vibrant Colors QD Green Channel A typical flat-screen TV can only express about 20% of the colors the human eye can detect. QD-enhanced TVs can produce over 60% of the spectrum the human eye sees. 7 Photo: Nanosys
QDX TM High-stability Quantum Dots Manufacturers are moving quickly to get ahead of ROHS restrictions on heavy metals like cadmium in TVs, Governments are mandating ever higher energy efficiency, Poor temperature and environmental resistance have historically been a problem requiring sub-optimal integration of QDs into electronic devices, Better color is needed, d but OLED is too expensive. We have solved these key problems. Introducing High-heat and Environmentally Stable Cd-free Quantum Dots. 8
QTMM Volume QD Manufacturing Industry-leading capacity today (>2,000kg/yr), Patented high volume production process, Efficient automated production equipment, Real-time quality control, Low production costs and high product yield. 9 Not how we do it Original Photo: 3M
OEMs are Rapidly Adopting QDs [The] quantum dot is gonna be the next big thing in TVs, bringing better image quality to cheaper sets Quantum dots promise to solve a very fundamental problem with modern LCD TVs 10
QD Market Size 11 Sources: http://www.bccresearch.com/market-research/nanotechnology/quantum-dots-nanomaterials-nan027d.html com/market-research/nanotechnology/quantum-dots-nanomaterials-nan027d html http://news.sys-con.com/node/3132375 http://www.transparencymarketresearch.com/quantum-dots.html https://www.alliedmarketresearch.com/quantum-dots-market http://www.marketsandmarkets.com/pressreleases/quantum-dots.asp http://www.prnewswire.com/news-releases/quantum-dots-market-worth-470486-million-by-2020-291379991.html http://touchdisplayresearch.com/?page_id=1534 http://wintergreenresearch.com/index.php?route=product/product&product_id=2082 A compilation of six research reports shows strong agreement that the global QD market is expected to grow by about $1 billion/year starting in 2016. The Company believes global capacity might be 8 metric tons/yr by the end of 2015. We estimate that industry capacity will need to increase by about that much every year for the next few years then faster.
Other Applications: Solid-state Lighting Incandescent LED LED + QDs Source: Economist.com QDs allow manufactures to tune the shade of white LED light to more pleasing colors. More energy efficient than using phosphors as done currently. QDX TM heat resistance will further increase energy efficiency and lower manufacturing costs. LEDs are expected to dominate the ~$100B lighting market over the next five years. 12
Other Applications: QD Solar Cells Traditional solar Cells Only 33% of total solar energy is available for conversion by traditional solar cells. Source: spie.org Tetrapod QDs QD solar cells have 2X the maximum efficiency of traditional solar cells - theoretical maximum is 66%. QTMM Tetrapod QDs increase conversion efficiency and enhance charge transport (patent licensed from Rice U.). QTMM low cost R2R printing at speeds up to 600m/min (patent licensed from U of A). Manufacturing CAPEX is 10% of traditional solar cell plant. 13
Other Applications: Anti-counterfeiting Piracy and counterfeiting cost businesses more than $200 billion annually and account for the loss of more than 750,000 jobs in the US alone 1. Counterfeit drugs cost the global pharmaceutical industry approximately $18 billion in lost profits annually 1. According to Interpol, as many as one million people die annually from counterfeit drugs 2. Quantum dot ink can be used to create a unique unclonable fingerprint for every package using existing printing technology. Packaging can be quickly verified with a smart phone and adapter. Concept illustration only. 14 1 http://www.ncbi.nlm.nih.gov/pmc/articles/pmc4105729/ 2 http://www.insightcrime.org/news-briefs/counterfeit-drugs-kill-1-million-annually-interpol
Other Applications: Biomedical In vivo imaging of tumor in live mouse Source: ieee.org ov/ Source: http://openi.nlm.nih.go Photostability of QDs (red) vs. organic dye (green) Detection of HER2 cancer biomarker (red) Source: nist.gov Advantages include highh fluorescence intensity, it long lifetime, and good resistance to photobleaching and chemical degradation. QD fluorescence in near infrared can be detected in deep tissues, making them suitable for both in vivo and in vitro imaging. 15
Our Pipeline Our pipeline includes many of the world s largest display manufacturers, electronic material manufacturers, and solid-state lighting g manufacturers. Applications currently under QTMM development include displays, lighting, solar, anti-counterfeiting, and biomed. Recently signed a joint development agreement with a major flat panel display manufacturer. As of 6/30/15: Universities, Product Researchers, Manufacturers Other NDAs 40 12 Sample Agreements 13 3 Initial Samples Delivered 14 3 Total Samples Delivered 47 3 Commercial Discussions Underway 33 5 16
Key QTMM Value Drivers 1. Vivid color represents the next step forward in the $100 billion TV/display market. OLED is too expensive for mass market acceptance. 2. Our QDX TM quantum dots are uniquely positioned to solve the color problem (and similar problems in the SSL industry). 3. QTMM is a low cost producer and can scale up quickly and efficiently. 4. QTMM has a patented high-volume production process and Industry-leading manufacturing capacity of >2,000kg/yr. 5. Displays are just the first of many markets to be disrupted by QDs which are expected to grow by $1billion/year through at least 2025. 17
Key Milestone Estimated Timelines Calendar Q1-2016 (January 1 March 31) Implement enhanced corporate visibility strategy Gain one or more financial industry research coverage/analyst reports Complete one or more strategic partnerships Convert one or more existing MTA relationships to funded joint development agreements (JDA) (MTA Material Transfer Agreement JDA Joint Development Agreement) Calendar Q2-2016 (April 1 June 30) Complete commercial design of cadmium-free quantum dot film for OEM display panel industry (with partner) Complete commercial design of cadmium quantum dot film for OEM display panel industry (with partner) Expand product offering to introduce nano-material solutions for broader opto-electronics markets Calendar Q3-2016 (July 1 September 30) Begin generating revenues from quantum dot material sales Establish offshore manufacturing capacity Calendar Q4-2016 (October 1 December 31) Accelerate optimization of quantum dot solar cell Double existing quantum dot production capacity to 4+ metric tons/year Increase I.P. portfolio Up list the Company to NASDAQ 18
OTCQB: QTMM Star Park 3055 Hunter Road San Marcos, TX 78666 Business Inquiries info@qmcdots.com www.qmcdots.com Thank You Investor Relations Torrey Hills Capital Clay Chase (858) 456-7300 19