Silex Systems Limited · ASX:SLX
Silex Systems — Investor Presentation (November 2006)
43 slides from Silex Systems's investor presentation, Nov 16, 2006
Slide 1: Investor Presentation — November 2006
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Slide 2: Forward looking statements
em Forward looking statements Silex is a research and development Company whose assets are its proprietary rights in technologies, including, but not limited to, the SILEX technology, Translucent technology and Fiberbyte technology. In general, the Company's technologies are in the development stage
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, accu
Slide 4: Our Mission
Oe Le 0) 7 i) “es 0 Vo. £ FAs oe Pe a Loe Gs 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 (SOI)
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: 1) Alternative Energy Technologies
| | Os - - - Lo pe LLU CO _ — a a = re i app aaa | LN i aD oe) oo ole Lo as 1) ALTERNATIVE ENERGY TECHNOLOGIES ¢ The SILEX Technology — Uranium Enrichment ¢ Translucent Solar Energy Technology ¢ Translucent Thermoelectric Power Technology rae LLL LLL LLLLLLLLLLLLLLLLLLLELL LLL LLL LLL ELLLLLLLEELELL
Slide 7: What is the SILEX Technology?
What is the SILEX Technology? Uranium-238 Separation of Isotopes using Laser EXcitation. Changing ‘isotopic’ composition of elements (enrichment) creates | « new ultra-pure materials with unique qualities. @ 02 protons "C}i96 neuirons U238 - 3 extra neutrons - heavier isotopes are different forms of
Slide 8: Uranium Enrichment - a key part of the Nuclear Fuel Industry
i » Uranium Enrichment - a key part of the Nuclear Fuel Industry 0.7% U235 99.3% U238 EL LLL Enrichment Fuel Fabrication Uranium Mining Conv Create Steam Used in Reactor i ete LLL LLL LLL LLL LLL oe nnn LLL ee ga Nowmgy Pivision
Slide 9: A Global Nuclear Power Renaissance is Underway
A Global Nuclear Power Renaissance is Underway: a Currently 17% of world’s electricity supplied by nuclear power = 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 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 ~ 35% UF, Conversion ~ 5% Enrichment ~40% Fuel Fabrication ~ 20% * [f uranium prices go up — demand on enrichment increases (i.e. increasing the le
Slide 11: The Global Nuclear Fuel Market: Enrichment Demand Scenarios
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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 projection
Slide 13: Enrichment technologies comparison
logies GAS DIFFUSION SILEX CENTRIFUGE DEVELOPED 2000’s 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (‘brute force’) ENRICHMENT EFFICIENCY 2 to 20M 1.3 1.004 COST COMPARISON Potentially Attractive | Capital Intensive Very expensive % OF EXISTING MARKET®) 0% 54% 3
Slide 14: Silex signs Commercialisation and License Agreement with GE
ée é oe Cn L a Lia iiae Wo. & Sy a ae We lex 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 . a LLL LLL LLL — LLL LE mmm mmm inn or LEX Te
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
Slide 17: Translucent Inc.
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Slide 18: Translucent — Company Information
Translucent — Company Information ¢« Founded in 2001 (initial investment by Silex Systems) * Company is ~70% owned by Silex. * Focused on silicon-based materials development for: 1. Optical / photonics applications 2. Advanced semiconductor applications 3. Ultra-High Efficiency Solar Energy Cells 4.
Slide 19: Materials Development and Device Fabrication Facility
Complete Material Development , Device Fabrication and Characterization Facility (Palo Alto, USA) Silex Semiconductor Division
Slide 20: Translucent Technology Evolution
» Silex Systems | TRANSLUCENT i Translucent Technology Evolution Optical Silican, _ Photonic Materials Gore Matellals Developm Advanced Electronic Thermoelectric lateriais: SOL & high-k = Conversion Materials 2001 2002 2003 2004 2005 2006 2007 2008 Start-up: Build: R&D: R&D: R&D R&D: Commercialisati
Slide 21: Translucent Solar Energy Technology
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Slide 22: Ultra-High Efficiency Solar Energy Cell
dll Patent application for Ultra-High Efficiency Solar Energy Cell filed June 5', ’06. Directly evolved from Optical Silicon/Photonics project (foundation technology) — similar materials and fabrication process. Translucent’s leverage — bringing a new materials set to the solar Industry. Aims to low
Slide 23: Solar project status and plan
Mille i , 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 an
Slide 24: Solar Spectrum
Solar Spectrum (IEC/ASTM/SO Global) 1400— 4 1200—- | sid ( yn <t— Conventional Solar cells 4000- Silico’ 4 Ideal Solar Technology Spectral Variance (Wm?um") of Tunable Band Gap Bemitonduften —_] L L 1 n 1 1 n 0 300 500 700 900 1100 1300 1500 1700 Wavelength (nm) * Useful conventional Silicon solar c
Slide 25: Translucent Thermoelectric Power Technology
CL Ye YY MM MME MEK Ke | _ $=-—. _ LE Ly L0) CO on aa ye a Translucent Thermoelectric Power Technology A potential breakthrough in Alternative Energy Via A Novel set of Semiconductor Materials LLB LLL LLGBOOLOLX£££LqWXL£££ 080000 850000108 8 8 EE ee 26 A 2. ttststs:s:ssssststi‘aCSsSs*s*«s«si‘aSttttt
Slide 26: Conventional Thermoelectric Technology
Conventional Thermoelectric Technology: » Direct conversion of thermal energy (heat) into electrical energy. va » Established in the 1950’s ~ modest progress since. » Limited performance and scalability - materials constraints. = niche applications - space probe power packs - solid-state ‘Peltier’ c
Slide 27: Translucent Thermoelectric Technology
Translucent Thermoelectric Technology: > Evolved from semiconductor materials project >» Innovation based on: = Anovel set of semiconductor materials = ‘Band-gap engineered’ multilayer junctions = Potentially higher conversion efficiencies * Scalable planar architectures * Cost effective fabrication
Slide 28: Applications
2f-OC Applications . 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 . Residential/industrial waste heat recovery Supplementary electricity generation . Refrigeration - m
Slide 29: Thermoelectric Power Scenarios: Conventional Thermal Power Plant
>» Silex Systems HI il TRANSLUCENT Thermoelectric Power Scenarios a) Conventional Thermal Power Plant Heat Source ~65% Waste Heat ae Generator ~35% Conversion efficiency to electric power _ Electricity to ___J Consumers
Slide 30: Thermoelectric Power Scenarios: Complementary Generation
HI il >» Silex Systems TRANSLUCENT Thermoelectric Power Scenarios b) Complementary Thermal / Thermoelectric Power Generation Translucent Thermoelectric Converter Blanket Turbines Generator Conventional \ Thermal Electricity to Consumers —L Direct T Thermoelectric Less Waste Heat Higher Conversion ef
Slide 31: Thermoelectric Power Scenarios: Direct Generation
II Silex Systems Hi TRANSLUCENT Thermoelectric Power Scenarios Direct Thermoelectric Power Generation — Translucent Thermoelectric Converter Blanket Electricity to Consumers Minimum Waste Heat Maximum Conversion efficiency (to be determined) ~ | | _
Slide 32: Advanced Semiconductor Materials
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Slide 33: Optical Silicon — Photonics
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Slide 34: Translucent is a leading contender
, TRANSLUCENT 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 — Elect
Slide 35: Silicon Development
TRANSLUCENT i ilicon Development a Translucent Current Technology Example of Proposed Ultimate Objective Interim Solution CMOS VCRES Driver nip Expensive discrete Expensive discrete components Fully Integrated ULSI components linked integrated on a common platform {all-silicon based materials) by op
Slide 36: Advanced Semiconductor Materials
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Slide 37: Transistors Per Die
Transistors Per Die Microprocessor “Actual” T T T T T T T T T T 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Silex Semiconductor Divisi a
Slide 38: Equivalent Scaling
| 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 materials are
Slide 39: Equivalent Scaling
“Equivalent Scaling” Transistors Per Die —h fo) [o> L T T T T T T T T T T 1965 1970 1975 1980 1985 1990 1995 2000 20905 2010 o Silex Se tor Division
Slide 40: Semiconductor market requirement for new materials
ha ,;, TRANSLUCEN The semiconductor market has a clear requirement for new maierials-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 re
Slide 41: Project Activities
ect 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) Complete DARPA Project ~ sil
Slide 42: Risk factors
¢« 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.
Slide 43: A unique company developing technology and advanced materials
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