Bluglass Ltd · ASX:BLG
Bluglass — Investor Presentation (September 2006)
32 slides from Bluglass's investor presentation, Sep 27, 2006
Slide 1: Investor Presentation
tb we c * “ w eg ate OE @ ww « SLI ASs Investor Presentation David Jordan, CEO / MD 27 September 2006 bgt Commercial in confidence ea]
Slide 2: Index
Index e Introduction ; ¢ Investment Opportunity 7 ¢ Technology | e Business Strategy e IP Position _ ¢ Team — e Review wire Commercial in confidence ea]
Slide 3: Nature Of The Business
Nature Of The Business The development and commercialisation of breakthrough Australian technology for lower cost production of the semiconductor material gallium nitride (GaN) bgt Commercial in confidence ea]
Slide 4: Market / Environment
Market / Environment ¢ Global Market $3BN / 2004 => $7BN / 2009 ¢ Typical 20% electricity used in general | lighting, with significant use of low efficiency incandescent bulbs ¢ Potential avoidance of millions of tonnes of CO, pa by replacement with Light Emitting Diodes (LED’s) wire Commercial in c
Slide 5: Company Overview
Company Overview ¢ Incorporated in June 2005 as a spin-off from Macquarie University ¢ Commenced through sophisticated investor seed funding of $6m e Listed on the ASX on 22 September 2006 after raising $10m in IPO bgt Commercial in confidence ea]
Slide 6: Investment Opportunity
Investment Opportunity & Market Potential bgt Commercial in confidence ea]
Slide 7: Core Concept
Core Concept e Reduce the cost of manufacture of GaN e Supply into existing markets eg used in manufacture of LED’s ¢ Open emerging markets bgt Commercial in confidence ea]
Slide 8: Investment Opportunity
Investment Opportunity ¢ The global GaN market has grown from: ~ US$25M in 1994 to US$3.2B in 2004* ~ Market expected to reach US$7.2B by 2009 e Lower cost manufacture will open up significant, emerging markets, in particular general lighting *Source: Strategies Unlimited 2005 wire Commercial in con
Slide 9: Market Potential
Market Potential @ Total GaN sales @ Total LED sales revenue (US$ billion) 95 96 97 98 99 OO O1 62 03 04 OS O06 OF O8 59 vie Commercial in confidence ESL AWJCSL_ ASS
Slide 10: Blue LED Applications (2004 data)
Blue LED Applications (2004 data) ¢ Backlights for mobile phones, cameras etc. (68%) e Large full-colour video signage (9%) ¢ Automotive instrument cluster lighting (8%) ¢ Traffic lights (1%) ¢ General Lighting (4%) — The big opportunity bgt Commercial in confidence ea]
Slide 11: General Lighting Market
General Lighting Market ¢ High Brightness (HB) White LEDs — Blue HB LEDs in a phosphor coated package — Mixed RGB LED's ¢ More efficient than incandescent, similar to fluorescent — Longer lifetime — Lower energy / reduced greenhouse gas emissions o _ ¢ Safer - low voltage / low temperature ¢ Flexibl
Slide 12: Blue Laser Diodes
Blue Laser Diodes ¢ Blue laser diodes (LD’s) critical to Blu-ray and other successors to DVD e¢ Capacity up to 50GB — about 10x DVD, 70x CD ¢ Widespread adoption limited by current high cost of blue laser diodes wire Commercial in confidence ea]
Slide 13: Potential Revenue Streams
Potential Revenue Streams ¢ Technology licensing to device and equipment manufacturers ¢ Joint venture of manufacturing capability ¢ Sale of GaN wafers ¢ Equipment manufacturing and sale e Sale of unpackaged LED and LD chips bgt Commercial in confidence ea]
Slide 14: Technology
Technology bat Commercial in confidence ES JOS Ase
Slide 15: LED Structure
LED Structure metal p-GaN n-GaN buffer glass Commercial in confidence voltage ~ @ electron photon (ight rae ee
Slide 16: Conventional Technology
Conventional Technology e Majority of GaN grown on 2” sapphire wafers ¢ Process of Metal-Organic Chemical Vapour Deposition (MOCVD) e Temperatures of ~1000°C ¢ Use of highly toxic ammonia gas (NH,) heater aie Commercial in confidence ea]
Slide 17: BluGlass Technology
BluGlass Technology ye Remote ui iinet Plasma Chemical tMGa [oe a a] wis Vapour Ce Deposition wire Commercial in confidence ea]
Slide 18: Competitive Advantages
Competitive Advantages e Process temperatures <700°C — cheaper wafers (glass vs sapphire) — reduced lattice strain (zinc oxide buffer layer) — Reduced impurity diffusion / sharper layer interfaces — Reduced thermal stress (film © substrate) in growth ¢ Scalable - larger wafers / higher throughput ¢
Slide 19: Technology Achievements
Technology Achievements e First RP-CVD GaN LED on sapphire e First ever GaN LED on glass e Improved GaN crystallinity / uniformity ¢ Optically uniform GaN on 4” glass bgt Commercial in confidence ea]
Slide 20: Improved Crystallinity
Improved Crystallinity ¢ GaN surface roughness decreased from ca 10nm to inm by optimised deposition and low oxygen inclusion * Low surface roughness indicates a high degree of ordered crystallinity and high quality GaN layer wire ~ ss Commercial in confidence ea]
Slide 21: Wafer Size Scalability
Wafer Size Scalability ¢ No theoretical limit ¢ Majority of conventional technology uses 2” sapphire * BluGlass technology scalable to 8” plus wafers (8x area increase) ° Larger wafers — higher throughput / lower cost ¢ RP-CVD potential for continuous deposition (cf silcon nitride in solar cell indu
Slide 22: Business Strategy
Business Strategy bgt Commercial in confidence ea]
Slide 23: Business Strategy
Business Strategy ¢ Build pilot plant and commercial tool to: — demonstrate technology on commercial scale - produce GaN materials and devices for Sale ¢ Fast track device technology into relevant markets ¢ Commercialise through licensing / strategic partnering / other wire Commercial in confidence
Slide 24: Funding Achievements
Funding Achievements ¢ $6M seed investment ¢ $650,000 raised through federal funding — AusIndustry Commercial Ready grant ¢ $10M raised in IPO ¢ Anticipated $5M Commercial Ready II federal funding wire Commercial in confidence ea]
Slide 25: Strategic Alliance
Strategic Alliance mw zander e¢ World-leaders in design and construction of high technology production plants ¢ Annual global turnover >US$2B / 8,000 staff ¢ Assisting BluGlass with: ~ development of pilot plant ~ establishment of strategic relationships wire Commercial in confidence ea]
Slide 26: IP Position
IP Position bat Commercial in confidence ES JOS Ase
Slide 27: IP Position
IP Position ¢ Strong IP position, reviewed by Blake Dawson Waldron ¢ Aggressive forward protection ¢ Two patents lodged and in National Filing bgt Commercial in confidence ea]
Slide 28: Team
Team bat Commercial in confidence ES JOS Ase
Slide 29: Board and Management Team
Board and Management Team ¢ Directors — Chairman — CEO/MD — Non-executives e Research team - CTO — R&D team Commercial in confidence Dr Mike Taverner David Jordan Greg Cornelsen Chandra Kantamneni Dr Scott Butcher Dr Marie Wintrebert Patrick Chen bgt FE beamed COE Lamm, Se
Slide 30: CEO: David Jordan
CEO: David Jordan e¢ 25+ years in semiconductor industry e Previously from BP Solar — Managed global link between R&D and high volume manufacturing — Background in implementing new production processes based on novel technology ¢ Former Business and Technology Manager for solar cell Special Research
Slide 31: In Review
In Review e Reduced cost of manufacture of GaN e Environmental benefit underpinning market growth ¢ Pilot plant to prove technology - ° Potential near-term revenue streams || © World-class research team I) » Management with relevant experience bgt Commercial in confidence ea]
Slide 32: www.bluglass.com.au
www.bluglass.com.au bgt Commercial in confidence ea]