Slide 1: Investor Presentation Update
For personal use only Investor Presentation Update David Jordan, CEO 27 August 2007
Slide 2: Disclaimer
For personal use only DISCLAIMER 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: Company Overview
Company Overview For personal use only ¾ High technology semiconductor based commercial spin off from Macquarie University ¾ Developing novel technology to make low cost gallium nitride (GaN) epi wafers on glass substrate at low temperature for LED and RF/power electronics applications ¾ Oversubscri
Slide 4: People
For personal use only People ¾ David Jordan – CEO David has 25 years experience in business and academic environments, primarily in the silicon and photovoltaic industries ¾ Dr Michael Taverner – Chairman Michael is a company director and scientific consultant. His expertise is in corporate governan
Slide 5: What We Do
What We Do For personal use only ¾ The BluGlass business is based on the commercialisation of a novel technology for manufacturing low cost gallium nitride wafers ¾ Gallium nitride (GaN) is a semiconductor which emits light under an applied dc voltage ¾ GaN dominates the blue / green LED and UV Lase
Slide 6: Our Strategy
Our Strategy For personal use only To demonstrate and deliver a low cost GaN manufacturing technology to the global market by: ¾ process licensing ¾ supply of commercial equipment ¾ supply of specialised materials, and ¾ niche manufactured product 6
Slide 7: Progress – First Months; In Line with 2006 Prospectus
Progress – First 11 Months; In Line with 2006 Prospectus For personal use only 7
Slide 8: Funds Status & Cash Cover
Funds Status & Cash Cover Year 1 Prospectus vs Latest Estimate (A#039;000) (Estimate includes actual spend to 30/06/07) For personal use only 12,000 Prospectus Actual 10,000 8,000 6,000 4,000 2,000 - Pilot R&D IP IPO Salaries O/Heads Total Plant Commercial in Confidence 8
Slide 9: Progress against Prospectus Milestones
Progress against Prospectus Milestones For personal use only Technology - Milestone Deliverable RPCVD epi-wafer on buffered glass producing commercially competitive performance LED devices by 1Q08 Manufacturing - Milestone Deliverable Manufacturing demonstration plant construction completion 1Q08 Co
Slide 10: Technology
Technology Milestone Deliverable For personal use only RPCVD epi-wafer on buffered glass producing commercially competitive performance LED devices by 1Q08 Progress to date – ¾ Laboratory established & research reactor and technology team relocated from Macquarie University to Silverwater ¾ Electrol
Slide 11: Technology – Test Device Fabrication
Technology – Test Device Fabrication For personal use only ¾ Heterojunction LED test devices operating on wafer at 20mA, > 4 hours continuous 11
Slide 12: Manufacturing Demonstration Plant
Manufacturing Demonstration Plant Milestone Deliverable For personal use only Construction completion 1Q08 Progress to date - ¾ Silverwater site selection completed & leased ¾ Phase 1 - offices, research clean lab and machine shop designed & constructed with M+W Zander, completed March 2007 ¾ Electr
Slide 13: Manufacturing Demonstration Plant – Asquith St, Silverwater
Manufacturing Demonstration Plant – Asquith St, Silverwater For personal use only Commercial in Confidence 13
Slide 14: Manufacturing Demonstration Plant – Asquith St, Silverwater
Manufacturing Demonstration Plant – Asquith St, Silverwater For personal use only 14
Slide 15: Commercial Reactor
Commercial Reactor Milestone Deliverable For personal use only Commercial reactor acceptance Ireland 4Q07, installation Silverwater 1Q08 Progress to date - ¾ Computational Fluid Dynamics (CFD) modelling capability introduced (Conor Martin / ACE+) ¾ Research & commercial reactor CFD modelling complet
Slide 16: Commercial Reactor Design – Process Chamber CAD Assembly
Commercial Reactor Design – Process Chamber CAD Assembly For personal use only 16
Slide 17: Intellectual Property
Intellectual Property For personal use only Strong IP position, managed by Spruson&Ferguson, reviewed at IPO by Blake Dawson Waldron Two patents lodged and now in National Filing, and the first of several planned R&D derived provisional patents lodged. National Filing Patents: ¾ Process for Manufact
Slide 18: Strategic Alliances
Strategic Alliances Milestone Deliverable For personal use only To develop and implement commercial and research alliances as necessary to deliver the corporate strategy and business plan Progress to date - ¾ St Gobain (France) Joint Development Agreement, 4Q06 ¾ M+W Zander manufacturing plant desig
Slide 19: Business Planning - Strategy
Business Planning - Strategy For personal use only ¾ Primary focus on the major GaN market in specialised blue / green LEDs and general lighting ¾ A “packaged JV” process technology based licensing model incorporating delivery of: - process, with performance guarantee - equipment, with global suppor
Slide 20: BluGlass strategy avoids complex industry IP landscape
BluGlass strategy avoids complex industry IP landscape For personal use only 20
Slide 21: Business Planning – Revenue Model
Business Planning – Revenue Model For personal use only Revenue Model – 3 key drivers 1. Market Size - forward projection by segment size 2. Share – BluGlass penetration of that market 3. Return – BluGlass revenue on that share 21
Slide 22: Business Planning – Revenue Model: Market
Business Planning – Revenue Model For personal use only 1. Market - forward projection US$4B (2007) - US$10B (2012) Strategies Unlimited, USA ¾ Market Analysis Report, “The Market for High-Brightness LEDs in Lighting, Application Analysis and Forecast, 2007” ¾ Company presentation, Dr Robert Steele,
Slide 23: HB LED Market Forecast Summary
For personal use only HB LED Market Forecast Summary 10,000 9,000 8,000 Other 7,000 17.6% CAGR Illumination Market Size 6,000 Signals 5,000 ($ Million) Automotive 4,000 3,000 Signs/Displays 2,000 Mobile Appliances 1,000 0 06 07 09 10 11 08 20 20 20 20 20 20 23
Slide 24: 2005-2012 GaN devices revenues in M$
2005-2012 GaN devices revenues in M$ for LED, Laser, RF & power electronics I $12 000M tl RF electronics $10 000M hl Power electronics ( ti Laser Diodes @HB-LED $8 OOOM tr-Ssttst ttn nnn $6 000M +------------------------- 22-2 2222-2222 anno nnno $4 000M -}------------2-------gon- nono GaN device re
Slide 25: Business Planning – Revenue Model: Return
Business Planning – Revenue Model For personal use only 3. Return – BluGlass revenue on market share IP Licensing Commercialisation Norms ¾ Industry Benchmark Practice - as the basis for negotiation, or ¾ No Established Benchmark – other measures of assessment “Use of the 25 Per Cent Rule in Valuing
Slide 26: 25% Rule of Thumb Stated
For personal use only 25% Rule of Thumb Stated • The licensor should receive from the licensee around one quarter of the gain accruing to the licensee from the use of the licensed right – operating profit in the case of goods – “gain” may be a cost saving in an industrial process • Based on a notion
Slide 27: Business Planning – Revenue Model: Share
Business Planning – Revenue Model For personal use only 2. Share – BluGlass market penetration ¾ Given our active plan to develop and launch a research reactor into the market during 2008, initial revenue could result as early as next year and should ramp up from 2009. ¾ Given the significant cost s
Slide 28: Upcoming Deliverables
Upcoming Deliverables For personal use only Technology - commercially competitive LED 1Q08 Manufacturing demonstration plant - construction completion 1Q08 Commercial reactor - installation 1Q08 Strategic alliances - continued development of key commercial relationships Revenue - FY08/09 onwards 28
Slide 29: Thank You
For personal use only Thank You www.bluglass.com.au