Slide 1: Australia's low cost semiconductor developer
For personal use only Australia’s low cost semiconductor developer Investor Presentation November 2007 David Jordan CEO Giles Bourne Commercial Manager
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 profile
BluGlass profile For personal use only § Delivery of novel manufacturing technology to the § ASX:BLG global semiconductor market § oversubscribed IPO § Strong proprietary and competitive position Sept 2006 raised A$10M ü substantial reduction in gallium nitride (GaN) § Market Cap. A$50M wafer produc
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 David Jordan Dr. Marie Wintrebert-Fouquet Chairman Managing Director and Chief Executive Officer Senior Research Scientist David Jordan Geoff King Guy Reynolds Managing Direc
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: Our breakthrough technology
Our breakthrough technology Remote Plasma Chemical Vapor Deposition (RPCVD) For personal use only Low pressure reaction chamber in which a nitrogen glass substrate is heated to 500 - 700°C. ü new low cost substrates plasma Remote plasma generated active nitrogen species react with trimethyl gallium
Slide 7: 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) ü • Nitrogen replaces toxic ammonia Energy efficient LED devices • Curently replacing incandescent b
Slide 8: LED evolution
LED evolution For personal use only § Red and amber LEDs in commercial production for over 30 years (billions sold). These use somewhat similar material types to GaN (alloys of GaAs & GaP) § Red LED’s used mainly as small indicator lamps and alphanumeric displays because of performance limitations –
Slide 9: 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 10: LED sector emerging as next star industry
LED sector emerging as next star industry* For personal use only Overall LED market revenues US$6.3B for FY06F and CAGR growth of 15% predicted for FY06 – FY10F *Source :Deutsche Bank 17.6% CAGR to $9.4 billion in 2011 Source: Strategies Unlimited 4,500 4,000 6.4% CAGR 3,500 Market growth will 3,000
Slide 11: HB LED vertical supply chain
HB LED vertical supply chain For personal use only System (end use) Signage, traffic signal, CHMSL, dash-board lighting, LCD backlight Packaged LED Device 3 - 5 mm lamp, SMD, high-power package LED Chip Die or “chip” Potential for BluGlass Epitaxial Wafer InGaN BluGlass space Substrate Glass, Silico
Slide 12: HB-LED 2006 market shares in revenues per company
HB-LED 2006 market shares in revenues per company (all colours, all materials) For personal use only Others, 24% Nichia, 25% Cree, 9% Osram, 18% Lumileds, 12% Toyoda Gosei, 12% Source: GaN’ 07, Yole Developpement
Slide 13: RPCVD technology works within the competitive IP licensing environment
BluGlass RPCVD technology works within the current competitive and complex IP licensing environment For personal use only Source: GaN’ 07, Yole Developpement
Slide 14: Competitive landscape
Competitive landscape For personal use only BluGlass Aixtron (Germany) – High Market Share Cost reduction benefits Market Capitalisation ~ US$ 430M ˜ 48% TCoO cost reduction wafer level Veeco (USA) – High Market Share ˜ 10% at blue LED device level Market Capitalisation ~ US$ 630M Source:Wright, Wil
Slide 15: BluGlass strategy
BluGlass strategy For personal use only To demonstrate and deliver a low cost GaN manufacturing technology to the global market by: Ø Supply of commercial equipment Ø Process licensing (technology fee & royalty stream) Ø Supply of specialised materials, and Ø Niche manufactured product Research Reac
Slide 16: Revenue model – example calculations
Revenue model – example calculations 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 17: Revenue model – example calculations
Revenue model – example calculations For personal use only 1. Market Size – forward projection in substrate requirement / $’M Yole Développement, Market Report, 2007, “GaN’07 – New perspectives for nitride materials and devices” o Substrate Requirements – 2” sapphire / SiC equivalent § 2007 – 5.07 M
Slide 18: Revenue model – example calculation
Revenue model – example calculation For personal use only 1. Market Size – forward projection in substrate requirement Ø Substrate Requirement – 2” sapphire / SiC equivalent § 5.1 M (2007) => 11.6 M (2012) Ø Wafer Production per Tool – estimates & assumptions § Typical Reactor Capacity - 20 x 2” sub
Slide 19: Revenue model – BluGlass market share
Revenue model – example calculation For personal use only 2. Share – BluGlass market share Ø Global Reactor Requirement – from before, based on Yole substrate demand projections. Ø BluGlass Share – a key driver
Slide 20: Revenue model – BluGlass revenue on market share
Revenue model – example calculation For personal use only 3. Return – BluGlass revenue on market share; estimates / assumptions A. 25% Rule of Thumb (Goldsheider et al) § Royalty as % of Cost Saving Offered – Wright Williams & Kelly TCoO model (>40%) ü MOCVD MQW 2” sapphire LED epi-wafer – < US$90 ü
Slide 21: Revenue estimate – example calculations
Revenue estimate – example calculations For personal use only Ø Revenue o Clearly a rapidly growing market with strong revenue potential for the low cost BluGlass RPCVD technology Ø Additional Potential Benefits Offered (but not yet factored in) o Large area substrate (6”+) deposition – o significan
Slide 22: Recent achievements and next milestones
Recent achievements and next milestones For personal use only þ Dedicated manufacturing facility 1,260m2 ¨ Upgrade to electricity supply and fit-out in readiness to install RPCVD fabrication equipment March 2008 þ Demonstrated world’s first GaN-on-glass blue LED þ Extended GaN deposition wafer size
Slide 23: Why invest in BluGlass
Why invest in BluGlass For personal use only Ø LED sector is emerging as next “star” industry Ø BluGlass is well positioned to enter this rapidly growing, US$6B+ market with its breakthrough low cost technology Ø Well funded – IPO + Comm Ready $5M (no requirement for further funding) Ø The RPCVD pro
Slide 24: Contact Details
For personal use only Contact Details: David Jordan, CEO & MD Giles Bourne, 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