Slide 1: Investor Presentation May 2009
For personal use only INVESTOR PRESENTATION May 2009
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by BluGlass Limited to provide existing and prospective investors in BluGlass Limited with an update. Any statements, opinions, or other material contained in this document do not constitute any commitments, representations or warranti
Slide 3: Introduction
Introduction For personal use only BluGlass Limited was BluGlass aims to be a key player in the global formed to develop and semiconductor industry and contribute to the expansion commercialise a of major niche markets by making end products breakthrough low- cheaper temperature semiconductor Presen
Slide 4: Overview
Overview For personal use only BluGlass (ASX: BLG) has been established to commercialise a RPCVD appears to breakthrough semiconductor technology resulting from more than 15 years have significant cost research at Macquarie University advantages over The BluGlass Remote Plasma Chemical Vapour Deposi
Slide 5: Announcements
Announcements For personal use only Nitrides are emerging RPCVD in the sunlight as one of the most exciting materials BLUGLASS LIMITED SEEKS TO EXPAND MARKET since the invention of POTENTIAL WITH EXPLORATION OF NITRIDE the solar cell SOLAR CELLS BLK Korea BLUGLASS LIMITED SIGNS TERM SHEET FOR LICENC
Slide 6: Achievements
Achievements For personal use only Purpose built, 1,260m2 demonstration facility, opened July 2008 by Appointed distribution Federal Minister for the Environment, Peter Garret agents in key markets: Demonstrated world’s first GaN blue LED on glass Japan and GaN deposition wafer size increased; from
Slide 7: Progress Update
Progress Update For personal use only Since listing in September 2006 spending has been in line with the IPO Industry collaboration prospectus estimates on process and Industry is taking note of developments technology Additional technology discoveries have been made presenting BluGlass development
Slide 8: LED Update
For personal use only LED Update GaN is considered to be one of the most commercially-important semiconductor material developed since silicon With broadening of the market, sales are expected to grow at an average annual rate of 20.3% over the next five years to reach US$11.6 billion by 2013 * Sour
Slide 9: How LEDs are made
LED For personal use only How LEDs are made An LED consists of a chip of semiconducting material Commercial in Confidence
Slide 10: Why Light Emitting Diodes?
LEDs For personal use only Why Light Emitting Diodes? LEDs are revolutionising the way we think about High efficiency by a factor of 10+ x over incandescent light bulbs lighting Long life Compact Non toxic, throw away safe Ready made market LEDs are currently used in traffic signals, signage, mobile
Slide 11: Environment
Environment For personal use only Globally it is estimated that LEDs could save 30% of the “ It is possible to electricity used in general lighting alleviate the need for 133 nuclear power Our pilot plant is designed as an environmentally safe facility stations in the US by RPCVD does not require th
Slide 12: Market
Market For personal use only LEDs in lighting Application market applications have Low performance (e.g. mobile phone keypads) an expected CAGR CAGR 8.3%* of 31.5%* Med – high performance (e.g. LCD backlights) CAGR 31.4%* High power (e.g. lighting) CAGR 31.5%* 69.7 B 22.3 B 2.3 B * Source: Strategie
Slide 13: Market: Equipment market
Market For personal use only Equipment market As the LED market RPCVD is an alternative to the current equipment and expands, so to will the manufacturing standard, MOCVD deposition tool market The MOCVD deposition tool market is currently worth in excess of US$ 300 million* Dominated by two major p
Slide 14: Industry Limitations
Industry Limitations For personal use only LEDs are currently Current limitations in LED production limited by their high cost and their difficulty of manufacture High cost of production Relatively low volume production due to scalability challenges in the size of the wafers used Complex and expensi
Slide 15: The BluGlass Solution
The BluGlass Solution For personal use only RPCVD - A new technology Freedom through New IP approach novelty resulting in lower licensing fees to device manufacturers Environmentally sensitive production Inert/abundant source of active nitrogen No toxic waste Efficient use of metal organics Advanced
Slide 16: The advantages of RPCVD
RPCVD For personal use only The advantages of RPCVD Significantly less wafer cost Nitrogen vs. Ammonia Nitrogen is inert and abundant and cheap Ammonia is expensive, extremely toxic and requires scrubbing RPCVD is a cleaner process than industry standard Low temperature Current standard uses temps o
Slide 17: Value Chain
Value Chain For personal use only The LED manufacture value chain Equipment supply, BluGlass is currently addressing two aspects of the value Process Licensing, chain as well as exploring device manufacture: Epitaxial IP Equipment manufacture Process Licensing
Slide 18: LED Wafer Manufacturers
LED Wafer Manufacturers For personal use only United States Europe China Capture value from BridgeLux Osram Opto Aqualite the rapidly growing Cree* Semiconductors* Huinen GaN LED market by Philips Lumileds* Taiwan Lanbao sales, royalties and Japan Arima Lian Chuang strategic partnerships Nichia* AU
Slide 19: IP Landscape
IPLandscape IP Landscape For personal use only The semiconductor industry is governed by IP and strategic An industry where relations knowledge and IP is key There exists a multitude of licensing, cross licensing and royalty agreements between the majority of companies BLG has a new process using a
Slide 20: Strategy
Strategy For personal use only Generating value REVENUE MODEL – Reactor sales and royalties from ongoing royalty BluGlass intends to address the growing GaN LED market as follows: stream by process Manufacturing and sell reactors & process licenses licensing Investigating the merits of moving furthe
Slide 21: Products
Products For personal use only BluGlass offers two deposition tools with associated licensing BLG – 150 and royalties BLG – 300 The BLG – 150 This is our market enabling strategy The BLG – 150 deposition tool has been developed as a versatile tool for low volume production and R & D applications sui
Slide 22: Solar Update
For personal use only Solar Update Solar photovoltaics will grow from a $20.3 billion industry in 2007 to $74 billion by 2017 Energy Business Reports
Slide 23: Nitrides in Solar
Nitrides in Solar For personal use only There is one emerging solar material that has the capability of Nitrides have the covering almost all of the usable solar emissions range – potential to increase Indium Gallium Nitride (InGaN) efficiency, durability, and applications for InGaN for solar cells
Slide 24: RPCVD Advantages
RPCVD Advantages For personal use only Low temperature, low cost, inherent scalability InGaN solar cells have a theoretical high efficiency RPCVD has the potential to offer several advantages to performance of the growth of InGaN for solar cells more than 50%* Low temperature During the growth phase
Slide 25: Market
Market For personal use only Thin film technology Solar market is the fastest Grid connected photovoltaics (PV) continues to be the fastest growing solar growing power generation technology in the world with 50% market at 75% pa annual increases in cumulative installed capacity over the past 4 PV is
Slide 26: Strategy
Strategy For personal use only Generating value Market enabling plan: high efficiency solar cells from ongoing royalty BluGlass intends to explore RPCVD as a growth process for stream by process the production of high efficiency solar cells licensing Phase One of its exploration will be to produce a
Slide 27: BluGlass in 2009 and beyond
For personal use only BluGlass in 2009 and beyond BluGlass will position the RPCVD technology for entry into both the LED and PV industries and will pursue the market with the best shareholder return
Slide 28: The State of Play
The State of Play For personal use only LED industry is emerging as next ‘star’ industry BluGlass is well LED: Expected CAGR of + 20% to 2013 positioned to enter this rapidly growing market PV: Global growth in sales of PV is 37% CAGR over 14 years with its breakthrough The RPCVD process appears to
Slide 29: The Team
The Team For personal use only Many years experience in: The BluGlass team incorporates vast Thin film nitride semiconductors experience in both the Commercialisation and international business development commercial and Research and Development technical fields BluGlass staff are world leaders in t
Slide 30: Financials
Financials For personal use only IPO 2006 $10 million Twice over- subscribed IPO in 2006 accepting $10 Seed Capital $5 million million Government $5.6 million Support Granted Market Cap $38 million (17 April 2009) Shares on issue 167m Top 20 hold 48% Cash in hand $2.4 million
Slide 31: The Future
The Future For personal use only Further development of the RPCVD technology Generating value from ongoing royalty Optimisation of equipment stream by process Optimisation of deposition process licensing Commercial sample production Sell process licenses and reactors to global LED manufacturers Inve
Slide 32: Korean License Agreement
Korean License Agreement For personal use only Objective of collaboration with BLK BLK will collaborate to commercialise the BLK has signed a term sheet to become a licensee of RPCVD technology in BluGlass Limited for the Korean market the Korean Market Using in-house engineering know-how and co-wor
Slide 33: Introducing BLK
BLK For personal use only Introducing BLK BLK are a dynamic new LED company Newly established Korean company (Aug 2008) by CNT International Pty Ltd (Korean agency) to expedite employing leading commercialisation of RPCVD technology in Korea market industry experts Located in Gwangju Techno Park (Gw
Slide 34: Korean Market
Korean Market For personal use only The South Korean The importance of the Korean Marketplace Government has claimed strong support of the LED business, investing Highly advanced processing market for Epi Growth / Chip / AUD $542.5 million in the Package / Power LED / Array / Module next 5 years to
Slide 35: Thank you
For personal use only THANKYOU Giles Bourne Chief Executive Officer BluGlass Limited P +61 2 9334 2300 E qbourne@bluglass.com.au 74 Asquith Street NSW, 2128 Australia www.bluglass.com.au