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Powerful, balanced sound in every context

AXIGN AUDIO AMPLIFIER CONTROLLER IC WITH DIGITAL FEEDBACK LOOP

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Wireless Streaming

MAIN CONSUMER TRENDS IN AUDIO

High Resolution Audio

Adaptive Sound Technology

Small and Portable

Source: IHS Technology 2015, CE Pro 2015, Grand View Research 2015, XMOS Blog 2015

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Axign offering

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• Axign solves the market problem of creating smaller speaker systems and not compromising on sound experience.

• Audio provides a solution for audio system producers who are challenged to create smarter products by aiming on intelligence and personalization (CEO Dinesh Paliwal of Harman International)

• We do this by providing a modular and programmable IC to introduce intelligence into audio systems

• We make money by selling ICs and services

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Programable system

INTELLIGENT AUDIO SYSTEMS

Interacting with listener

Adjusting to the room

Knows what you want to listen

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Market in volume and segmentation

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• The Wireless Audio Device Market is expected to increase to $23.89 billion by 2020 at a CAGR of 24.9% over the period 2014 - 2020

• In application segment, commercial application sector accounted for the largest market revenue

• The US and EU still have the largest market share revenu but Asia is likely to grow at the highest CAGR

Sale

s €

0

3.500.000

7.000.000

10.500.000

14.000.000

Year

2014 2015 2016 2017 2018 2019

Audio revenu accordance plan

Revenue forecast is based on a quoting to a customer• Pricing $4.7 per IC• Gross Margin 65%• Quantity > 1K < 1M ICs

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Scalability of the Axign technology

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Audio

• First target market is mid / higher level of the consumer segment in the audio market (Sonos, Bose and Harman)

• Second target market is low / mid level of the consumer segment in the audio market (Samsung and Logitech)

• Within 3 years from starting production Axign is able to achieve an annual revenu of $15M - $20M and targeting on an annual revenu of $50M within 7 years

Connected devices

• Axign technology is also usable for controlling digital signal processing in connected devices. For example motor control in automotive, climate control, washing machines, LED etc.

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Intellectual Property

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IP

• Axign has an unlimited license in both time and applications for the LLADC technology from Teledyne DALSA

• Successor to LLADC scheduled for development in cooperation with University of Twente over the coming two years

• Axign is in process of applying IP rights based on the current technology• Axign will invest in its own IP portfolio

Algorithms

• Algorithms and software codes are main part of Axign IP and are embedded on the Axign ICs

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Axign team

Director Jeroen Langevoort

Marketing & sales Hette Elgersma

Research & Development Daniel Schinkel

Application & Reference design Remco Stoutjesdijk

Resume:

• Jeroen Langevoort http://goo.gl/uMUFsM

• Hette Elgersma http://goo.gl/vjMcSG

• Daniel Schinkel http://goo.gl/gGdAap

• Remco Stoutjesdijk http://goo.gl/8TuLLF

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Team

• The Axign team consists a total of 7 members and will grow in 2016 to a total of 10

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Axign origin

• Design house with date converter specialty

• IC design group from Bram Nauta • Foundry partner

• Acquired Axiom IC• Digital Imaging Specialist

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Competition

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Main competitive solutions

• The market is looking for a total digital solution for years but Axign is at least 3 to 4 years ahead (confirmed by market contacts) Most providers of class D audio amplifiers with feedback loops have analog solutions. Examples are TI, ST, Cirrus and NXP.

• Merus Audio located in Kopenhagen can be seen as a similar startup like Axign but has a complete different approach for a different market segment

• Axign is considered as the only truly digital solution available in the market (quote by Arnold Knott, Associate Professor at Technical University of Denmark)

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Status

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✔

✔✔

✔ -Raisedseed

Validatedmarketand realizedproof ofconcept

Buildcoreteam Tape out

of first productand gaintraction withmajor customers

Raisedseries Ainvestment

Raised: €300K in loans (2014) and €450K in equity (2015)Shares:Founders 70% and Innovation Fund Twente 30%

Investors: Founders, Rabobank, Region of Twente and Innovation Fund TwenteGoals: Proof of Concept, validate market, build core team, tape out first product and gain traction with major potential customers

Current product development will result in a design-in with a major customer in Q3 2016 (cooperation agreement is in process at this moment)Mass production and sales of first product will start in Q1 2017

Development of a second product in close cooperation with a major customer will start in Q2 2016 (part of cooperation agreement incl. a NRE)Mass production and sales of second product will start in Q1 2018

Total funding needed is €1.2M

Getting current product into production - €400K

Scaling Axign organization - €300K

Development 2nd product - €500K

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AXIGN IS THE NEW KID ON THE BLOCK AND WE ARE ALWAYS LOOKING TO PUSH BOUNDARIES AND TACKLE PROBLEMS THAT SEEM IMPOSSIBLE.

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+31 53 820 09 48info@axign.nlwww.axign.nl

The Axign Team