Slide 1: Investor Presentation May 2008
For personal use only Australia’s low cost semiconductor developer Investor Presentation May 2008 Giles Bourne Interim CEO
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: BluGlass Overview
BluGlass Overview Commercialising revolutionary low-cost GaN deposition process for the rapidly growing LED Market For personal use only Commercialising a new low cost technology for producing semi- conductor material gallium nitride (GaN). GaN is used in the manufacture of blue, green and white lig
Slide 4: Highly skilled team of industry experts
Highly skilled team of industry experts For personal use only DIRECTORS MANAGEMENT TECHNOLOGY DEPARTMENT Dr. Michael Taverner Giles Bourne Dr. Marie Wintrebert-Fouquet Chairman Interim Chief Executive Officer & Commercial Senior Research Scientist David Jordan Manager Dr. Tim Dabbs Non-executive Dir
Slide 5: Why focus on Gallium Nitride?
Why focus on Gallium Nitride? For personal use only Gallium nitride (GaN) is a semiconductor material that electroluminesces (emits light) under applied voltage GaN dominates the blue / green Light Emitting Diode (LED) & UV Laser Diode (LD) market. LED applications include mobile phone and laptop sc
Slide 6: BluGlass' Process Advantage
BluGlass’ Process Advantage RPCVD process offers substantial savings (~50%) over the current MOCVD process as demonstrated by WWK TCO modeling. For personal use only Ammonia (NH3) Nitrogen Plasma 1100ºC 700ºC TMGa TMGa Sapphire Glass 2” 6” MOCVD RPCVD Source: Wright, Williams & Kelly
Slide 7: BluGlass' Process Advantage
BluGlass’ Process Advantage Key cost savings due to use of cheaper input materials at lower temperatures For personal use only Low pressure reaction chamber in which a glass substrate is heated to Nitrogen 500 - 700°C. new low cost substrates Plasma 700ºC • Cheaper Remote plasma generated active Sub
Slide 8: HB LED vertical supply chain
HB LED vertical supply chain For personal use only System (end use) Signage, traffic signal, CHMSL, dash-board lighting, LCD backlight Packaged LED Device 3 - 5 mm lamp, SMD, high-power package LED Chip Die or “chip” Potential for BluGlass Epitaxial Wafer InGaN BluGlass space Substrate Glass, Silico
Slide 9: BluGlass RPCVD Reactor
BluGlass RPCVD Reactor For personal use only Typical RPCVD Reactor Components Commercial Size Reactors have the option for automated materials handling (Brooks) Automated Materials Handling Reactor Control Console (RC2) Gas Supply & Process Reactor Control Abatement System Advanced control system wi
Slide 10: Our "green" credentials
Our “green” credentials For personal use only Environmental benefits accrue at two levels: GaN wafer manufacturing process (RPCVD vs MOCVD) • Reaction temperatures reduced (500-700°C vs 1,000°C plus) • Nitrogen replaces toxic ammonia Energy efficient LED devices • Currently replacing incandescent bu
Slide 11: High Brightness LED application segments
High Brightness LED application segments A rapidly growing and evolving market For personal use only Other Mobile Appliances Indicators, small displays Illumination amusement, misc. other 11% 9% 50% HB LED Market Signs and Displays 1% 15% Signals 14% Automotive Source: Strategies Unlimited
Slide 12: LED sector emerging as next star industry
LED sector emerging as next star industry For personal use only 12 10 Market Revenue ($x10 9) 8 • Market pull for Multichip white LEDs for 6 solid state InGaAlP lighting (Green, • 17.6% CAGR to 4 Yellow, Red) $9.4 billion in InGaN 2011 2 (Blue+White) 0 2006 2007 2008 2009 2010 2011 2012 Sources: OID
Slide 13: HB-LED 2006 market shares in revenues per company
HB-LED 2006 market shares in revenues per company (all colours, all materials) For personal use only Others, 24% Nichia, 25% Cree, 9% Osram, 18% Lumileds, 12% Toyoda Gosei, 12% Source: GaN’ 07, Yole Développement
Slide 14: Technology Licensing Landscape
Technology Licensing Landscape BluGlass RPCVD technology works within the current competitive and complex IP licensing environment For personal use only Source: GaN’ 07, Yole Développement
Slide 15: MOCVD Equipment Market
MOCVD Equipment Market US$300M MOCVD reactor supply market which is dominated by two major players earning Gross Margins of 38-48% For personal use only MOCVD (GaN & Other Compounds) Reactor Market Size & Shares US$300M Aixtron Order Intake up 50% Veeco Order Intake up 40% • EMF (Ireland), Structure
Slide 16: BluGlass Strategy
BluGlass Strategy To capture value from the rapidly growing LED market by licensing its novel low cost RPCVD process. For personal use only To demonstrate and deliver a low cost GaN manufacturing technology to the global market by: Supply of commercial reactor Process licensing (technology fee & roy
Slide 17: BluGlass Revenue Model
BluGlass Revenue Model Generating value from ongoing royalty stream from process licence For personal use only Revenue Model – 3 key drivers 1. Market Size – forward projection in $’M and substrate requirement 2. Share – BluGlass share of that market 3. Return – BluGlass revenue on that share
Slide 18: BluGlass Revenue Model
BluGlass Revenue Model Generating value from ongoing royalty stream from process licence For personal use only Market Size Share Return • Wafer Market growing at 18% CAGR Three Sources of Revenue • 2007 5.1M 1.Reactor Sale (one off manufacturing margin • 2012 11.6M(a) currently low due to • Typical
Slide 19: BluGlass Revenue Model
BluGlass Revenue Model Generating value from ongoing royalty stream from process licence For personal use only Revenue o Clearly a rapidly growing market with strong revenue potential for the low cost BluGlass RPCVD technology Additional Potential Benefits Offered (but not yet factored in) o Large a
Slide 20: Exploiting the Synergy of the BluGlass RPCVD LED technology with Solar
For personal use only Exploiting the Synergy of the BluGlass RPCVD LED technology with Solar Energy Application Assessing a new opportunity…
Slide 21: The Solar (PV) Market Opportunity
The Solar (PV) Market Opportunity For personal use only Solar is fast emerging as the most viable and eco-friendly power generation option for tomorrow with no moving parts, no noise and zero emissions. In 2006 the global market for PV energy grew by 41% to $15.6 Billion By 2015 the market is estima
Slide 22: Adaptability of the BluGlass Technology
Adaptability of the BluGlass Technology Large area high efficiency conversion / driving down costs For personal use only Electrical IN : Optical OUT Optical IN : Electrical OUT White Light Solar Spectrum GaN/Sapphire ~330µm2 Electrical energy Ele ctr ica le ne rgy Substrate size ~ 1m2 9000 LED die/2
Slide 23: LED applications-by substrate
LED applications-by substrate BluGlass addresses both markets with technology to fit both applications For personal use only Power Scaling High Cost Substrates Low Cost Substrates Area Scaling
Slide 24: Scaling solar energy conversion technologies
Scaling solar energy conversion technologies Increasing volume of application dictates the cost of the substrate used for thin film solar Peak Energy Plant Generation For personal use only Solar Park Residential Energy Roof Top Low- Low-Medium efficiency 1- 1-100MWatt km 2 Mobile Applications Medium
Slide 25: Bulk c-Si PV technology & Thin-film-on-glass
Bulk c-Si PV technology & “Thin-film-on-glass” BluGlass will be seeking to deposit higher efficiency thin film structures on cheap glass substrates For personal use only 100 1980 Historical $21.83/W • BLG to target Projected via wafer thinning less than Module Price ($ / Watt) $1/Watt 1990 performan
Slide 26: Solar Energy Investment and Market Growth
Solar Energy Investment and Market Growth BluGlass is well positioned to enter the thin film / low cost substrate market for solar applications Venture Capital Solar Investments For personal use only Services 600 Thermal Next Generation C-Si PV Concentrators • VC community Thin Film PV in the US is
Slide 27: BluGlass target for Thin Film Technologies
BluGlass target for Thin Film Technologies BluGlass will seek to leverage cost of thin film on glass and drive up efficiency using proprietary materials and devices For personal use only 100 Thermodynamic Limit 80 Efficiency, η% • Lower cost 60 structure of film thin technology $1.00/W • Driving up
Slide 28: Recent achievements and next milestones
Recent achievements and next milestones For personal use only Dedicated manufacturing facility 1,260m2 Upgrade to electricity supply and fit-out in readiness to install RPCVD fabrication equipment May 2008 Demonstrated world’s first GaN-on-glass blue LED Extended GaN deposition wafer size from 2 inc
Slide 29: Why invest in BluGlass
Why invest in BluGlass For personal use only LED sector is emerging as next “star” industry BluGlass is well positioned to enter this rapidly growing, US$6B+ market with its breakthrough low cost technology Well funded – IPO + Comm Ready $5M The RPCVD process has multiple benefits over existing tech
Slide 30: Contact Details
For personal use only Contact Details: Giles Bourne Interim CEO & Commercial Manager Thank you BluGlass Ltd 74 Asquith Street, Silverwater NSW 2128 Australia P + 61 2 9334 2300 F + 61 2 9748 2122 www.bluglass.com.au