Bluglass Ltd · ASX:BLG
Bluglass — Merger or Acquisition (March 2022)
36 slides from Bluglass's merger presentation, Mar 24, 2022
Slide 1: Acquisition of Silicon Valley Laser Fab & Assets
BLUGLASS (ASX:BLG) Acquisition of Silicon Valley Laser Fab & Assets March 2022 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This document has been prepared by BluGlass Limited to provide readers with an update of the Company and the Company’s technology. Any statements, opinions, technical data and information, or other material contained in this document, do not constitute commitments, represen
Slide 3: Contents
CONTENTS 01. BLUGLASS & MARKET OVERVIEW 04 Corporate Overview 05 Market Overview 06 Team 09 02. TRANSACTION OVERVIEW 10 Transaction Highlights 11 Compelling Strategic Rationale 12 Transaction Summary 13 Growing US Presence 14 03. ACQUISITION RATIONALE 15 Current Scenario vs. Future State 16 The Faci
Slide 4: BluGlass & Market Overview
BLUGLASS & MARKET OVERVIEW BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 20224
Slide 5: Company Overview
COMPANY OVERVIEW BluGlass Limited (ASX:BLG) develops and manufactures leading gallium nitride (GaN) semiconductor materials and laser diode technology for the industrial, scientific and biotech markets. AUSTRALIAN & US 86 EXPERT TEAM PROPRIETARY Based operations with more PATENTS RPCVD TECHNOLOGY Wi
Slide 6: Industry Overview - Laser Revenue Growth Forecast (2019-25)
INDUSTRY OVERVIEW - LASER REVENUE GROWTH FORECAST (2019 – 2025) Laser revenue has almost tripled in past decade Driven by the adoption of high-tech applications around the globe such as smart phones and TV’s, 3D printing, electric vehicle and renewable energy storage, as well as significant growth a
Slide 7: Market Overview – Global GaN Laser Revenue Forecast by Segment (2019-2025)
MARKET OVERVIEW – GLOBAL GAN LASER REVENUE FORECAST BY SEGMENT (2019-2025) GaN Laser Revenue (Laser Systems) $2,500 $2,000 US$2.5B $1,500 GaN Laser Systems Revenue opportunity by 2025 $1,000 $500 $0 2020 2021 2022 2023 2024 2025 BluGlass’ Service Available Market opportunity by 2025 is Display & Lig
Slide 8: Industry Overview – BluGlass Target Markets
INDUSTRY OVERVIEW – BLUGLASS TARGET MARKETS Industrial Scientific BioTech BluGlass’ Scientific Product BluGlass’ BioTech BluGlass’ Industrial Product Addressable Market by 2025 is Product Addressable Market by 2025 is Addressable Market by 2025 is US$240M US $80M US $60M Wavelengths: (405nm, 420nm,
Slide 9: Leadership Team
LEADERSHIP TEAM BOARD OF DIRECTORS MANAGEMENT TEAM James Walker Jim Haden Dr Ian Mann B-Comm, FCA, GAICD PhD, MBA, Msc, Bsc-ENG, FAICD MsEE BEE EXECUTIVE CHAIR CHIEF OPERATIONS & PRESIDENT TECHNOLOGY OFFICER Vivek Rao Dr Josh Brown MS-EE, BSc-Elec Brad Siskavich BSME (Mech-Engineering), MBA PhD (Phy
Slide 10: Transaction Overview
TRANSACTION OVERVIEW BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022 10
Slide 11: Transaction Highlights
TRANSACTION HIGHLIGHTS Once in a lifetime opportunity Greater operational control & simplicity To acquire full-suite laser diode (LD) front and back-end Eliminate supply chain complexity and variation by bringing manufacturing plant (fab) for a fraction of the cost of build full fabrication process
Slide 12: Compelling Strategic Rationale
COMPELLING STRATEGIC RATIONALE Strategic Continuous Accelerated Faster Continuity Operations Roadmaps Profitability Acquisition fast-tracks Ongoing Contract Initial product launch on longer-term plan to bring Manufacturing agreements to track for mid 2022 with Increased manufacturing fabrication pro
Slide 13: Transaction Summary
TRANSACTION SUMMARY Agreement to acquire Silicon Valley Laser Fab • BluGlass and the Fab Owner have entered a non-binding agreement for BluGlass to acquire the Facility Manufacturing Equipment (the Fab equipment) • BluGlass has agreed terms with the landlord to acquire the lease of the existing Tran
Slide 14: Growing US Presence Creates Synergistic Opportunities
GROWING US PRESENCE CREATES SYNERGISTIC OPPORTUNITIES Full-suite US based Established US team GaN LD manufacturer and infrastructure Strategically positions BluGlass Silicon Valley fab and Boston area for US defense/govt contracts; testing facility enables BluGlass to supports growth in key target d
Slide 15: Acquisition Rationale
AQUISITION RATIONALE BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022 15
Slide 16: Current Scenario vs Future State
CURRENT SCENARIO FUTURE STATE The GaN laser diode industry is growing rapidly; Acquire a commercial Laser Diode fabrication plant and BluGlass needs to increase production speed. equipment (Fab) along with expert manufacturing team to deliver greater flexibility, faster development and Customers are
Slide 17: Silicon Valley Facility – Fremont CA, USA
SILICON VALLEY FACILITY – FREMONT CA, USA Conveniently located Silicon Valley facility located in Fremont, CA. San Francisco Airport 31 miles San Jose Airport 16 miles Oakland Airport 22 miles 17 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 18: Facility Overview
FACILITY OVERVIEW 19,000 sq ft purpose-built Laser Diode Manufacturing facility featuring: • Move in ready 2”-4” compound semiconductor manufacturing facility • Equipment pad with liquid nitrogen, deionized water, waste neutralization, emergency generator, exhaust stack, & safety control systems ins
Slide 19: BluGlass Laser Diode Supply Chain Today
BLUGLASS LASER DIODE SUPPLY CHAIN TODAY Inhouse steps Currently out-sourced steps DESIGN/MODEL EPITAXIAL WAFER WAFER FABRICATION WAFER FABRICATION GROWTH STEP 2 SUBSTRATE THINNED SUBSTRATE N-CONTACT CLEAVE METALISATION HR COATING AR COATING LASER DIODE PRODUCT READY RELIABILITY CHIP ON SUBMOUNT (CoS
Slide 20: BluGlass Laser Diode Supply Chain Post Acquisition
BLUGLASS LASER DIODE SUPPLY CHAIN POST AQUISITION Current in-house steps Steps brought in-house with acquisition DESIGN/MODEL EPITAXIAL WAFER WAFER WAFER GROWTH FABRICATION FABRICATION SUBSTRATE STEP 2 THINNED SUBSTRATE N-CONTACT CLEAVE METALISATION + HR COATING *BluGlass + Contract Manufacturer AR
Slide 21: Lower Cost of Wafer Production from 2024
LOWER COST OF WAFER PRODUCTION FROM 2024 Wafer fabrication costs front and back end Production cost crossover $12,000 point is reached in CY2024 $10,000 when cost per wafer drops $8,000 below $4800. $6,000 ▪ Burdened internal wafer costs include: $4,000 ▪ Rent, electricity, IT, facilities, and a con
Slide 22: Assets Acquired to Address Key Product Deliverables
ASSETS AQUIRED TO ADDRESS KEY PRODUCT DELIVERABLES 01. EPI CAPACITY (Infrastructure only) • Possible future epitaxy expansion if required • Wafer cleaning equipment for regrowth 02. METALISATION CAPABILITY • More flexible design of low resistance n & p metal layers required for high-efficiency EPI M
Slide 23: Speed and Agility Are Fundamental to Innovation
SPEED AND AGILITY ARE FUNDAMENTAL TO INNOVATION Faster Development Expert Team Current turn cycle limited to 4-5 development iterations/year despite multiple contract The facility has been run by a highly manufacturers (CMs) skilled, expert manufacturing team with decades of laser diode production D
Slide 24: Risks and Mitigations
RISKS AND MITIGATIONS Does Acquisition Risk Risk Description Mitigation Status Technology Risk Market Risk De-Risk? Delays could allow new entrants into the Laserto Time diode long-term develop reliability rapidly growing GaN laser diode space. Or products/time Work with CMs to increase Yes. It will
Slide 25: Transaction Financials
TRANSACTION FINANCIALS BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022 25
Slide 26: Capacity Scenarios
CAPACITY SCENARIOS The Silicon Valley fab acquisition increases BluGlass' revenue generation capacity by 300%, delivering higher profit margins and lower production costs. Contract Manufacturer Capacity Owned-Fab Capacity Annual Epitaxy Wafer Capacity Annual Epitaxy Wafer Capacity ~10,000 wafers ~10
Slide 27: Use of Funds
USE OF FUNDS Seeking to raise A$12M Silicon Valley Fab Acquisition $2.5M $3.5M (Lease & Equipment) Facility adaption GaN Laser Diode production Additional Capex required (inc. advanced capabilities) Operational Expenditure $2.5M $3.5M & Talent Hire 27 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY
Slide 28: Latest Results
LATEST RESULTS BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022 28
Slide 29: Delivering Against Clear Product Development Pipeline
DELIVERING AGAINST CLEAR PRODUCT DEVELOPMENT PIPELINE BluGlass has demonstrated strong progress on initial product offering MM: Multi Mode SM: Single Mode 29 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 30: Prototype Demos - NM Multimode High Power
PROTOYPE DEMOS - 405 NM MULTIMODE HIGH POWER 30 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 31: Prototype Demos - NM Single Mode
PROTOYPE DEMOS - 405 NM SINGLE MODE 31 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 32: Prototype Demos - NM, 1W Multimode
PROTOYPE DEMOS - 420 NM, 1W MULTIMODE 32 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 33: Prototype Demos - NM Multimode
PROTOYPE DEMOS - 420 NM MULTIMODE 33 BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022
Slide 34: Outlook
OUTLOOK BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022 34
Slide 35: Investment Highlights
INVESTMENT HIGHLIGHTS Fast-track Demonstrated LD Clear Large & Growing company goals Improvements Roadmap Markets Acquisition supports Strong performance Initial product launch on Global laser revenue is company vision and fast- improvements in latest track with Contract forecast to exceed US$25B tr
Slide 36: Thank You
THANK YOU BluGlass Limited (ASX:BLG) www.bluglass.com.au BLUGLASS INVESTOR PRESENTATION – SILICON VALLEY FAB AQUISITION MARCH 2022