Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (December 2006)
49 slides from Silex Systems's shareholder meeting presentation, Dec 1, 2006
Slide 1: Annual General Meeting
yj - Annual General Meeting = 4 December 2006= Dravantatian 9419:
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Silex is a research and development Company whose assets are its proprietary rights in technologies, including, but not limited fo, the SILEX technology, Translucent technology and Fiberbyte technology. In general, the Company's technologies are in the development stage an
Slide 3: Disclaimer
DISCLAIMER Silex has prepared this presentation based on information available to it. The information in this presentation does not purport to be a complete: description of Silex. Except as required by law, no representation or warranty, express or Implied, is made by Silex as to the fairness, accur
Slide 4: Our Mission
OUR MISSION : To become a world leader in technology innovation for: 1) Alternative Energy Technologies » Nuclear Energy » Solar Energy » Thermoelectric Energy 2) Advanced Semiconductor materials » Optical Silicon / Photonics » Silicon-on-Insulator (SOl) substrates & ‘“High-k’ dielectric materials »
Slide 5: Our Technology - in summary
OUR TECHNOLOGY — in summary: Based on two sets of advanced materials » Isotopically engineered materials (SILEX Technology) » Band-gap engineered materials (Translucent Technology) Applied to two industries — » Alternative Energy (Uranium Enrichment, Solar Energy, Thermoelectric Power) » Semiconduct
Slide 6: Alternative Energy Technologies
1) ALTERNATIVE ENERGY TECHNOLOGIES ¢ The SILEX Technology — Uranium Enrichment ¢ Translucent Solar Energy Technology ¢ Translucent Thermoelectric Power Technology
Slide 7: What is the SILEX Technology?
What is the SILEX Technology? Separation of Isotopes using Laser EXcitation. Changing ‘isotopic’ composition of elements (enrichment) creates new ultra-pure materials with unique qualities. isotopes are different forms of the same element (different number of neutrons). eg. Uranium Silicon Carbon Ox
Slide 8: A Global Nuclear Power Renaissance is Underway
A Global Nuclear Power Renaissance is Underway: = Currently 17% of world’s electricity supplied by nuclear power 8 440+ reactors currently operating (103 in the USA) a 70+ being built / planned + accelerated development in Asia = No greenhouse gas emissions — minimal expected impact on global climat
Slide 9: Uranium Enrichment - a key part of the Nuclear Fuel Industry
Uranium Enrichment - a key part of the Nuclear Fuel Industry O.7% W236 99.3% U238 3:6% U235 Uranium Mining Conversionto UF& = Enrichment Fuel Fabrication ay Yar a Used in Reactor Create Steam Drive Turbine Make Electricity
Slide 10: Nuclear Fuel Economics
Nuclear Fuel Economics“): ® Nuclear fuel costs ~30% of total operating costs of nuclear power. = Nuclear fuel costs - approximate breakdown: Uranium Ore ~ 40% UF, Conversion ~ 5% Enrichment ~40% Fuel Fabrication ~ 15% = If uranium prices go up ~ demand on enrichment increases (Le. increasing the lev
Slide 11: Enrichment Demand Scenarios
#20000 480000 B0000 + 50000 theusang swu 40000 20000 hs T FFP SS PSS SK KS AG 8 p y oN Ny Ca $y i a ae ad | Lower Scensria —— Reierence Scenario Usper Scenaric | Enrichment Demand Scenarios
Slide 12: Supply and Demand currently in balance
Supply and Demand currently in balance Potential supply issues beyond 2013: ~ HEU Agreement terminates ~ US & French diffusion plants shut down. Three new centrifuge plants to be built ~ Urenco centrifuge in France (Areva) and US (NEF) ~ American Centrifuge (USEC) According to WNA projections — poss
Slide 13: SILEX vs Centrifuge vs Gas Diffusion
SILEX CENTRIFUGE GAS DIFFUSION DEVELOPED 2000's 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (‘brute force’) ENRICHMENT EFFICIENCY 2 to 20 1.3 1.004 COST COMPARISON Potentially Attractive | Capital Intensive Very expensive % OF EXISTING MARKET) 0% 54% 33% Under
Slide 14: Silex Signs Commercialisation and License Agreement with GE
OX SYSTEMS LIMITED Silex Signs Commercialisation and License Agreement with General Electric Company for the SILEX Uranium Enrichment Technology 22 May 2006 US Government Authorisation Received 3 October, 2006
Slide 15: Exclusive Worldwide Commercialisation and License Agreement
Exclusive Worldwide Commercialisation and License Agreement for the SILEX Uranium Enrichment Technology. Joint Technology Development Program — funded by GE. initial payment US$5M received 24 June, 2006 following preliminary US Government Approval. initial closing payment of US$15M received on Octob
Slide 16: Phased Development Program
«Phased Development Program - jointly conducted - GE funded. * Test Loop - demonstrate performance of engineering-scale SILEX Process equipment - assess the economics of the SILEX Technology. - activities in Sydney (initially) and the USA (Wilmington NC) - approximately 2 - 3 years duration * Lead C
Slide 17: Translucent Inc.
Translucent Inc. Advanced Materials for: » Alternative Energy Technologies » Semiconductor and Photonics
Slide 18: Translucent - Company Information
006. , TRANSLUCEN | ~~ Translucent — Company Information Founded in 2001 (initial investment by Silex Systems) Company is ~70% owned by Silex. Focused on silicon-based materials develooment for: 1. Optical / photonics applications 2. Advanced semiconductor applications 3. Ultra-High Efficiency Solar
Slide 19: Material Development, Device Fabrication and Characterization Facility
. TRANSLUCEN Complete Material Development , Device Fabrication and Characterization Facility (Palo Alto, USA) BOOS:
Slide 20: Translucent Technology Evolution
III , TRANSLUCENT ill ilex Systems Translucent Technology Evolution Optical Silicon, Photonic Materials Thermoelectric . _AdvancedElectonic : __ Conversicn Materials | Materials: SO) & high-k _ ep | Ht Sp [ Py 7 | 20014 2002 2003 2004 2005 2006 2007 2008 Start-up: Build: R&D: R&D: R&D: R&D: Commerci
Slide 21: Translucent Solar Energy Technology
I ., TRANSLUCEN Translucent Solar Energy Technology Ultra-High Efficiency Solar Energy Cells Via A Novel set of Photonic Materials
Slide 22: Ultra-High Efficiency Solar Cell Patent Filings
a TRANSLUCEN |] Patent application for Ultra-High Efficiency Solar Energy Cell filed June 5", 06. Three more filings for Solar Cells since. Directly evolved from Optical Silicon/Photonics project (foundation technology) — similar materials and fabrication process. Translucent’s leverage — bringing a
Slide 23: Solar project early stage and development plan
TRANSLUCEN Project in early stage — subject to development risks. Based on ‘core materials technology’ utilising thin active-layer semiconductor films on glass substrates. R&D effort at Translucent to focus on optimising the thin semiconductor films for maximum solar spectrum absorption and conversi
Slide 24: Solar Spectrum
2008. Solar Spectrum (IEC/ASTM/ISO Global) Silicon <— Conventional Solar cells (Single Junction) ideal Solar Technology _| (Multiple Junctions) sof Tunable Band Gap Bemi ondufter —_| Spectral Variance (Wm#pm') 0 300 500 700 900 1100 1300 1500 1700 Wavelength (nm) Useful conventional Silicon solar ce
Slide 25: Translucent Thermoelectric Power Technology
Translucent Thermoelectric Power Technology A potential breakthrough in Alternative Energy Via A Novel set of Semiconductor Materials
Slide 26: Conventional Thermoelectric Technology
Conventional Thermoelectric Technology: >» Direct conversion of thermal energy (heat) into electrical energy. >» Established in the 1950’s ~ modest progress since. >» Limited performance and scalability - materials constraints. # niche applications - space probe power packs - solid-state ‘Peltier co
Slide 27: Translucent Thermoelectric Technology
Translucent Thermoelectric Technology: > Evolved from semiconductor materials project > Innovation based on: =» A novel set of semiconductor materials = ‘Band-gap engineered’ multilayer junctions = Potentially higher conversion efficiencies » Scalable planar architectures * Cost effective fabricatio
Slide 28: Potential Smaller-Scale Applications
- otential Smaller-Scale T Applications APPLICATION POTENTIAL BENEFIT . Car Exhaust waste heat recovery More efficiency (hybrid electrical) cars . Semiconductor chip heat removal and energy recovery Peltier cooling and lap-top battery life extension mobile/domestic/industrial 3. Residential/Industri
Slide 29: Thermoelectric Power Scenarios: Conventional Plant
{Hl Silex Systems ii TRANSLUCE Thermoelectric Power Scenarios a) Conventional Thermal Power Plant — Heat Source Turbines Electricity to ff Consumers ~65% Waste Heat ~35% Conversion efficiency to electric power
Slide 30: Thermoelectric Power Scenarios: Converter Blanket
Silex Systems | | TRANSLUCE Thermoelectric Power Scenarios Lee Thermoelectric Converter Blanket Turbines Generator | Conventional ] _ Thermal Electricity to Wa Consumers | LL Direct T Thermoelectric Less Waste Heat Higher Conversion efficiency (to be determined) ~ 1 of -_
Slide 31: Direct Thermoelectric Power Generation
Silex Systems | | TRANSLUCE Thermoelectric Power Scenarios c) Direct Thermoelectric Power Generation Translucent Thermoelectric Converter Blanket -L Electricity to Consumers Minimum Waste Heat Maximum Conversion efficiency (ta be determined) ~ | | ~_
Slide 32: Advanced Semiconductor Materials
., TRANSLUCEN Advanced Semiconductor Materials >» Optical Silicon » SOI and high-k Substrates » Enriched Silicon Wafers
Slide 33: Optical Silicon - Photonics
. TRANSLUCEN Optical Silicon — Photonics via Novel CMOS Fab — compatible materials
Slide 34: Optical Silicon objectives and DARPA contract
, TRANSLUCEN continues.... * Translucent is a leading contender ~ Multi-billion dollar photonics market. ~ Key Issue is integration of photonics and electronics in silicon. ~ Specific Objectives: - a ‘true’ silicon laser (CMOS Fab-compatible) - silicon optical interconnects ~ DARPA Contract — Electr
Slide 35: Silicon Development at Translucent
eh - Silicon Development at T ranelucent. Wn TRANSLUCEN Current Technology Example of Proposed Ultimate Objective Interim Solution SMIOS WOSEL Ortwee Chip ‘ransimpatisnce Expensive discrete Expensive discrete components Fully integrated ULSI components linked integrated on a common platform (all-sil
Slide 36: Advanced Semiconductor Materials
TRANSLUCEN Advanced Semiconductor Materials >» Silicon-on-Insulator (SOI) Substrates > Germanium-on-Insulator (GO!) Substrates > ‘High-k’ Dielectric Materials >» Other Advanced Semiconductor Substrates
Slide 37: Transistors Per Die
; TRANSLUCEN 1Q1°- 10° 4 10° - 107 4 10° - 10° 7 104 > 10° : VW Microprocessor “Actual” 10? 5 40'4 10° T T T T T T T T T T 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Transistors Per Die 006.
Slide 38: Equivalent Scaling and novel materials
,, TRANSLUCEN * Feature size reduction as a method to increase device density and performance is no longer sufficient ¢ Equivalent Scaling refers to both a reduction in size AND the use of novel materials (either silicon based or fully compatible) and new device designs ¢ Examples of such new materi
Slide 39: Continuation of Moore's Law via Equivalent Scaling
. TRANSLUCEN inuation of h > 101° +— “Geometric Scaling” > 10° 7 108 7 107 7 108 + 10° 7 104 7 10° 7 10227 1014 10° T T T T T T T T T T 1965 1970 1975 1980 1985 1990 1995 2000 2905 2010 “Equivalent Scaling” Transistors Per Die 2008.
Slide 40: Semiconductor market requirement for new materials
2008. TRANSLUCEN The semiconductor market has a clear requirement for new materials-based solutions compatible with today’s silicon industry, to maintain the rate of projected progress (Moore’s Law) Translucent’s work on Optical Silicon has focused on a silicon-based materials solution which has res
Slide 41: Translucent Project Activities
‘Translucent Project Activities _ Early 07 Mid °07 Q3 °07 Late °07 Mid ’08 * Expected commercial validation of first advanced semiconductor materials application. * Expected commercial validation of solar cell prototypes * Commence Solar Cell Pilot Line construction (subject to above validation) * C
Slide 42: Risk factors: technologies yet to achieve commercialisation
Our technologies are yet to achieve successful commercialisation. Risk factors that may adversely affect commercial prospects include (but are not limited to): Negative results in the various technology development projects. Delays in development projects. Cost overruns in development projects. Thir
Slide 43: Our Technology
OUR TECHNOL ° Based on two sets of advanced materials — lsotopically engineered materials (SILEX Technology) — Band-gap engineered materials (Translucent Technology) Applied to two industries — — Alternative Energy (Uranium Enrichment, Solar Energy, Thermoelectric Power) ~— Semiconductors/Photonics
Slide 44: A unique company developing technology and advanced materials
A unique company developing technology and advanced materials for the 21% Century.
Slide 45: Resolution 1
Resolution 1: This resolution is to re-elect Mr Peter Campbell as a Director of the Company and reads as follows: “THAT Mr Peter Campbell who has held office as a Director for over three years and retires in accordance with the Articles of Association of the Company, be re-elected as a Director of t
Slide 46: Resolution 2
Resolution 2: This resolution is to adopt the Remuneration Report. This vote is advisory only and does not bind the Company or its directors and reads as follows: “THAT the remuneration report for the year ended 30 June 2006 be adopted”. The Proxy result for this resolution is: FOR 21,475,244 AGAINS
Slide 47: Resolution 3
Resolution 3: This resolution is to increase the aggregate amount of non-executive directors’ remuneration and reads as follows: “THAT the aggregate remuneration for Directors (other than the Managing Director or an Executive Director) of the Company be increased by $110,000, so that the aggregate a
Slide 48: Resolution 4
Resolution 4: This resolution is to ratify the issue of share options to Dr Michael Goldsworthy and reads as follows: “THAT in accordance with the requirements of Listing Rule 10.11 of the Australian Stock Exchange Limited, the shareholders ratify: (a) the granting to Dr Michael Goldsworthy (Managin
Slide 49: Resolution 5
Resolution 5: This resolution is to ratify the issue of share options to Mr Chris Wilks and reads as follows: “THAT in accordance with the requirements of Listing Rule 10.11 of the Australian Stock Exchange Limited, the shareholders ratify: (a) the granting to Mr Chris Wilks (Director - Corporate) o