Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2002)
40 slides from Silex Systems's shareholder meeting presentation, Nov 26, 2002
Slide 1: A Unique Technology Company
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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 to, the SILEX Technology. The Company's technologies are in the development stage and have not been commercially deployed. Accordingly, the statem
Slide 3: Our Mission
a : . a OUR MISSION is: Ue @, to become a world leader in: . » |sotopically Engineered Materials and Applications Z aoe meinen oy » Related ‘Wafer-Scale’ Semiconductor and Photonics Technologies ee . . . oe : . . ee . . . oe . . oe . : . ee : : . . . ee a : . . . oe en oe ve a Mie
Slide 4: Our Strategy
oe ue OUR STRATEGY is: * to rapidly penetrate markets through alliances with to accelerate the commercialisation of our technologies, and key industry players. » USEC — Uranium » Westinghouse — Zirconium > Others — under negotiation i 2 2 2 2 2 CCCU..,UmULUlLLmLLLL a c : a : a c ue nee
Slide 5: SILEX Technology Division and Semiconductor/Photonics Division
SILEX Technology Division Est Market Size Likely Business Model {Sydney — Australia} us$ Nuclear Power Industry ~ $3,500M Royalty - USEC (Uranium, Zirconium) , - Westinghouse Semiconductor Industry Sales - Manufacturing (Silicon, Carbon) > $1,000M Materials Medical Diagnostics Sales - Manufacturing
Slide 6: Company history and milestones
1988 Company Founded. 1994 Initial “SILEX” concept demonstrated on a lab scale. 1996 Demerged from Sonic Heaithcare. Uranium Development Agreement signed with USEC. 1998 Company listed on the ASX. 2000 4 uranium project milestone (US$5M). Commenced SILEX Stable Isotope Program — Sydney. Secured righ
Slide 7: What is SILEX?
What is SILEX? Separation of lsotopes using Laser EXcitation. Changing ‘isotopic’ composition of elements (enrichment) creates new ultra-pure materials with unique qualities. isotopes are different forms of the same element (different number of neutrons). eg. Uranium Silicon Carbon U238 99.3% Si28 9
Slide 8: Nuclear fuel cycle and nuclear power
. . “i Uranium Mining Conversion to UF6 Create Steam Enrichment Drive Turbine Fuel Fabrication wn Make Electricity Nuclear Power ° 18% of world’s electricity . 400+ reactors ° 70+ being built / planned ° No greenhouse impact O.7% U236 99.3% U238 Used in Reactor Oe 0 Co Co oe ee sen 8
Slide 9: SILEX vs Centrifuge vs Gas Diffusion
SILEX CENTRIFUGE GAS DIFFUSION INVENTED 1990's 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (‘brute force’) ENRICHMENT EFFICIENCY 2 to 20 1.25 1.004 ESTIMATED COST PER UNIT (US$) $30~$40 $70~$80 >$100 % OF EXISTING MARKET 0% 40% 45% Under Development | Proven Ob
Slide 10: USEC
Urenco Eurodif {4% Formerly part of US Department of Energy. 24% Others 4% Privatised and listed on NYSE ~ 1998. 1%. a0 I Gas Diffusion USEC EB Gas Centrifuge 33% 16% HEU Current market share ~ 33%. Tenex 25% Current sales ~ 11M SWU. » ~ 50% Gas Diffusion (Paducah KY - to be closed in the future) »
Slide 11: Gas diffusion plant: largest industrial plant, highest cost producer
* One of the largest industrial plants ever built. * Highest cost producer - plant must eventually be replaced.
Slide 12: Replacement of USEC enriched uranium sources
* Current sources of enriched uranium (Paducah plant + Russian HEU) - replace in 2010-2013 time frame? * Two alternatives: » Centrifuge - 2°¢ generation ($70 ~ $80 / SWU). ® SILEX ~ 3 generation ($30 ~ $40 / SWU). * US Department of Energy (DOE) has leverage. » Control extension of Russian HEU contr
Slide 13: DOE Agreement and implications for Silex
*« DOE Agreement - vital to USEC’s ongoing viability > beneficial to Silex - resolves the military requirements issue. * DOE Agreement perceived by market as USEC dropping SILEX in favour of centrifuge. - THIS IS NOT THE CASE! * USEC has confirmed that it is still developing SILEX. * 1M SWU plant is
Slide 14: USEC licence terms and milestones
* 1996 ~ Exclusive licence for Uranium only (US$7.5M). * USEC funds all development and commercialisation costs. * Technical Milestones: 4 Pilot Module Program US $5.0M (Paid ~ 2000) 2A Direct Measurement Program US $0.5M 2B Scale up + Optimisation US $2.5M 3A File Licence for Test Loop US $1.0M 3B
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Slide 16: DM Lab
DM Lab Tillis orat ory” 16
Slide 17: Lucas Heights Laboratories: DM Laser Lab
Slide 18: Semiconductor and photonics division projects
* Division grew out of SILEX Technology application to enrich silicon for semiconductor industry. * Projects have expanded to encompass potential wafer-scale solutions for a number of semiconductor and photonics problems: 1. Thermal Management Issues = Enriched Silicon 28 * Heat dissipation and mini
Slide 19: Natural Silicon Wafers vs Enriched Silicon-28 Wafers
Natural Silicon Wafers . Isotopic assay Si-28 : 92% Si-29 : 5% Si-30 : 3% . 8% heavy isotopes act like ‘defects’ and impede flow of heat through the wafer causing heat build- up. Electronic. Circuits Enriched Silicon-28 Wafers: . Isotopic assay Si-28 > 99% Other < 1% . 60% higher thermal conductivit
Slide 20: Enriched silicon market and competing technologies
Potentially large market for advanced microprocessors and communications devices — silicon wafer industry > US$5,000M p.a. Competing Technologies — silicon enrichment: ~ Centrifuge : uneconomic - high capital and operating costs. ~ Chemical Distillation : inefficient and costly. SILEX — potential to
Slide 21: Stable Isotopes Program: Mini Module and Collector Module
Slide 22: Silicon Isotope Superlattice
Silicon — very cheap but relatively low electronic performance. Increase electron mobility in silicon => higher speed/performance. SIS — isotopic superlattice structure ~ potential to increase mobility 2 to 3 times normal silicon. Silex secured rights to Keio University (Tokyo) Patent application Se
Slide 23: Normal CMOS device vs SIS device
NORMAL CMOS DEVICE SIS DEVICE Subs: ce . Substrate could Substrate lS) ) 7 be made of Si-28 Heat Sink Heat Sink SIS operating principle - minimize phonon scattering of electrons => increase electron mobility.
Slide 24: Keio University SIS Lab
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Slide 25: Translucent Acquisition
Translucent Acquisition: e@ April 2001, Silex acquired a 30% interest (option to go to 55%) in Translucent Photonics Inc — Palo Alto based start-up for US$5M (~A$9.6M). The US$5M will be used to fund prototype development and demonstration of the Translucent SPLC invention. The technical feasibility
Slide 26: Translucent Technology
echnology in its natural form, Silicon (“indirect band-gap” material) can’t be used for photonic/optoelectronic devices for the optical communications industry. Forced the use of expensive “compound semiconductors” (eg. GaAs and InP) in discrete high cost optical modules. GaAs/InP not compatible wit
Slide 27: Silicon Planar Lightwave Circuits
Silicon Plana CURRENT TECHNOLOGY TRANSLUCENT TECHNOLOGY Fibre PLCs - Expensive, discrete components * 40x lower cost + Fully integrated silicon VLSI
Slide 28: Bandwidth and technology
Bandwidth Technology LongHaul _ Networks = / ‘Optical World’ Tbps High Cost Optical Fibre/
Slide 29: Bandwidth and technology: Translucent world
Technology \ 8 ; Long Haul | : . ) Bandwidth | Networks 7 y Spee ‘Optical World’ wig Low Cost >. Optical Fibre/ Silicon Gbps ‘Translucent World’ Low Cost Integrated Silicon Opto-electronics Home
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Slide 31: Super Silicon for the 21st Century
CMOS Fibre Out SIS Conceptual Integrated O-E-O Chip Si-28 Wafer Heat Sink * Solutions: Thermal (Si-28 wafers) + Electronic (SIS) + Photonic (Translucent). * “Super Silicon for the 21st Century”.
Slide 32: Fiberbyte P/L
Fiberbyte P/L - Adelaide based optical communications company. Silex acquired 51% of Fiberbyte in September 02 for A$2.1M and will inject up to A$3.6M in working capital, subject to milestones. Additional option to go to 90% within 3 to 5 year timeframe. Fiberbyte has two unique technologies: 1. Fib
Slide 33: Fibre Optic Test Equipment Technology
1. Fibre Optic Test Equipment (FOTE) Technology: * Current world market approx. US$500M p.a. with growth potential. * Integral to development, installation, operation & maintenance of all optical communications equipment and networks. * Dominated by archaic and inflexible 1s' Gen technology. * Fiber
Slide 34: Fiberbyte initial product line
te Technology Initial Product Line: Lighthouse! Phoboniclagic ™ USE Accessavias Multi-channel Software Cirlvers. Gecking Bays Test Platform & Applications & Cables Lightax™™ Netra Spectrapan ™ Optical Source Cptical Filter, Multipleser & Optical Diagnastic Modules Circulator Modules Modules | COU 34
Slide 35: Facilities
Facilities * Silex has built a major laboratory complex at its Lucas Heights Facility in Sydney for the development of the SILEX Technology. * In conjunction with Translucent, Silex has established a state-of-the art semiconductor laboratory in Palo Alto — in the heart of Silicon Valley. * In conjun
Slide 36: Human and financial resources
HUMAN RESOURCES > y Uranium Project - 25 Australia -10US Stable Isotope Project - 8 Australia Translucent -§US Fiberbyte - 13 Australia The Silex research teams are world-class, and include 17 PhD’s, 17 Engineers and 15 Technicians. FINANCIAL RESOURCES > > > Silex has cash of ~ A$40M after the Trans
Slide 37: Uranium enrichment and stable isotope program timelines
URANIUM ENRICHMENT PROGRAM Direct Measurement Program Scale-up and Optimisation Test Loop Program Commercial Plant Construction Commercial Plant Start-Up STABLE ISOTOPE PROGRAM R&D Program Pilot Plant Program Commercial Plant Construction Commercial Plant Start-Up 2002 | 2003 2004 2005 2006 2007 | 2
Slide 38: SIS and Translucent development programs
SIS DEVELOPMENT PROGRAM 2002 | 2003 | 2004 | 2005 | 2006 SIS Lab Set Up i SIS Feasibility Demonstration [ ena Prototype SIS Wafers and Testing [ za Commercial Production SIS Wafers [ TRANSLUCENT DEVELOPMENT PROGRAM 2002 | 2003 | 2004 | 2005 2006 Palo Alto Lab Demonstrate Optical Wafers Fabricate Ini
Slide 39: Silex: a mission focused technology company
* Silex - A mission focused technology company. * Excellent Resources - Technical Teams - Facilities - Funding * Intellectual Property Protection - Patent Applications - Classification * Clear Corporate Strategy Alliances with industry leaders USEC — uranium partner Broad exploitation of core techno
Slide 40: A unique company developing technology and advanced materials
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