Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2005)
40 slides from Silex Systems's shareholder meeting presentation, Nov 28, 2005
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, Translucent technology and Fiberbyte technology. The company's technologies are in the development stage and have not b
Slide 3: Our Mission
yy Dh ‘any oo oe oe oe a OUR MISSION is: to become a world leader in: ai » Isotopically enriched materials » Uranium » Silicon oy ae | Di Dy, » Advanced Semiconductor materials » Optical Silicon » SOI and ‘High-k’ substrates ce IRI a Le re oe oe co cE ee ee So. oe oe oe co one oe oe co cI oe ee Le o
Slide 4: Silex Technology and Semiconductor Divisions and Estimated Markets
1) SILEX TECHNOLOGY DIVISION (Sydney) Estima ee uss Market Nuclear Fuel Industry (Enriched Uranium) 54,000M Semiconductor Wafer industry {Enriched Silicon and Carbon) » $7,000M Medical Diagnostics (Enriched Carbon and Oxygen) > $100M 2} SEMICONDUCTOR TECHNOLOGY DIVISION USS Optical Silicon 3,000M {T
Slide 5: Year in review: milestones and IP commercialisation
Translucent |P/Commercialisation effort ~- 18 new Patent applications. February - April - SUMCO enriched silicon wafer tests showed improvements in device performance. - Fiberbyte won Federal ‘Commercial Ready’ Grant - USB-inSync™ products. May - Silex successfully completed Uranium Enrichment Test
Slide 6: What is the SILEX Technology?
What is the SILEX Technology? Separation of Isotopes 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 U-
Slide 7: Global Nuclear Power Renaissance
Global Nuclear Power Renaissance: « 17% of world’s electricity — set to increase? « 440+ reactors currently operating « 70+ being built / planned « No greenhouse gas impact — global climate change G.7% U235 99.3% U238 . 3-8% U235 Uranium Mining Conversion to UF6 Enrichment Fuel Fabrication vision SI
Slide 8: Nuclear Fuel Economics 101
Nuclear Fuel Economics 101: * Nuclear fuel costs are ~30% of total costs of nuclear power. = Nuclear fuel cost breakdown: Uranium Ore ~ 35% UF, Conversion ~ 5% Enrichment ~40% Fuel Fabrication ~ 20% » As uranium prices go up ~ demand on enrichment increase (i.€. more enrichment to lower tails assays
Slide 9: Enrichment supply and demand
SUPPLY _ DEMAND UNCOMMITTED — GD . - Gas Diffusion a + Highly Enriched Uranitin’ ; - Centrifuge
Slide 10: Enrichment technology comparison
GAS DIFFUSION CENTRIFUGE DEVELOPED 2000's 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (brute force’) ENRICHMENT EFFICIENCY 2 to 20M 1.25 1.004 ESTIMATED COST 30~$40) 60~$80 ~$100 PER UNIT (US$) $30-$ $60-$ § % OF EXISTING MARKET) 0% 40% 45% Under Development |
Slide 11: Status of the Uranium Project
Status of the Uranium Project: * Classified Due Diligence underway after 6 month US Government delay. * Several companies involved (consecutively). * Classified Due Diligence evaluations completed early in new year. * Decision on commercialisation partner expected Q1, 2006. Silex remains quietly con
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Slide 13: Lucas Heights Laboratories: DM Laboratory
Slide 14: Laser laboratory
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Slide 15: Isotopic enrichment can improve thermal conductivity of silicon
Isotopic enrichment can improve thermal conductivity of silicon — potentially alleviating heat build-up issues. Sematech (Semiconductor Industry body) said in March 2004: ‘Jateral heat transfer within the isotopically pure (silicon) la yer is improved and may help reduce peak temperatures in localis
Slide 16: Prototype Module
Prototype Module SILEX Technology Division 10.
Slide 17: SILEX Technology Division
SILEX Technology Division
Slide 18: Focus on uranium and silicon enrichment
eee * Focus is now solely on uranium and silicon enrichment. * Silicon - process works well ~ economics needs to be resolved - pilot plant program nearing completion — efficiency and scalability - should know economics and future prospects in the near future * Uranium - process works efficiently - p
Slide 19: Silex/Translucent projects focus on fundamental semiconductor and photonics problems
Silex/Translucent projects focus on solutions to fundamental semiconductor & photonics problems * Division grew out of SILEX Technology application to enrich silicon for semiconductor industry. * — Activities now encompass potential wafer-scale solutions for a number of critical semiconductor and ph
Slide 20: Translucent — Company Information
, TRANSLUCENT Translucent — Company Information * Founded in 2001 (initial investment by Silex Systems) ¢ Focused on silicon-based materials development for: 1. Optical / photonics applications 2. Advanced semiconductor applications * Company is ~70% owned by Silex. « Company facility in Palo Alto,
Slide 21: Fabrication and Characterization Facility (Palo Alto, USA)
Fabrication and Characterization Facility (Palo Alto, USA) Silex Semiconductor Division
Slide 22: Translucent Markets / Technology: Silicon Photonics
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Slide 23: Translucent is a leading contender
continues.... * Translucent is a leading contender — Multi-billion dollar photonics market (estimated market size is over ~$3B). — Key Issue is the integration of photonics and electronics in silicon — this is Translucent’s primary target market segment. — Ultimate Objectives: ° A ‘true’ silicon las
Slide 24: Convergence of electronics, wireless and photonics
| »7, TRANSLUCEN Strong technical and market “pulls” exist for the convergence of electronics, wireless and photonics capability Devices combining electronic and photonic functions are typically very expensive due to the incompatible materials required for each of the discrete photonic components (e
Slide 25: Different material platforms
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Slide 26: Market segments via materials
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Slide 27: Proposed Translucent-enabled solution
, TRANSLUCENT || Example of Proposed Translucent Enabled Interim Solution Technology COS WERE, Dirivae Chip atibre PLCs Expensive discrete Expensive discrete components Fully Integrated ULSI components linked integrated on a common platform by optical fiber
Slide 28: Markets / Technology: Advanced Semiconductor Materials
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Slide 29: ITRS Roadmap and silicon-based materials innovation
TRANSLUCEN ee * The ITRS Roadmap represents a consensus view of the semiconductor industry: htto://public.itrs.net * Both the ITRS Roadmap and SEMI are strongly supportive of silicon-based materials innovation to facilitate industry growth and maintain the rate of progress per Moore’s Law oe oe ihe
Slide 30: Moore's 1975 Prediction
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Slide 31: Equivalent scaling and new materials
, 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 32: Equivalent Scaling
> “Equivalent Scaling” Transistors Per Die —h fo) [o>] l T 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Silex for Division 32
Slide 33: Semiconductor market requirement for new materials
I| ,, TRANSLUCENT The semiconductor market has a clear requirement for new materials-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 34: Translucent milestones
, TRANSLUCENT I Optical activity in Silicon demonstrated. Core Patent for Optical Silicon granted. ‘Spin-off technology revealed — Advanced Electronic Materials (AEM’s). Awarded prestigious DARPA Grant for photonics project IP effort ~ 25 Patents/Applications SOI and High-k applications revealed (AE
Slide 35: Translucent focus and summary
, TRANSLUCENT | | Translucent is focused on the development of novel materials for the photonics and semiconductor market sectors Development focus at Translucent is dictated by market pull rather than technical push — a clear route to commercialization exists once technical requirements have been m
Slide 36: Fiberbyte P/L overview
¢ Fiberbyte P/L - Adelaide based technology company. ¢ Fiberbyte has two unique “USB-inSync’™ technologies: 1. PC-based Data Acquisition Technology — current focus. 2. Fibre Optic Test & Measurement Equipment Technology. — deferred due to continuing market downturn * Silex has 85% interest in Fiberb
Slide 37: USB Real Time Data Communications Platform Technology
“USB Real Time” Data Communications Platform Technology: * Capitalises on core “USB-in-Sync’™ proprietary technology. (Several Patents pending) * Primary target market: PC based Data Acquisition (~US$400M p.a). « Manufacturers & System Integrators of real-time I/O systems — broad spectrum including:
Slide 38: Fiberbyte Technology product releases
_Fiberbyte Technology ~ Initial Product Release — September > Data Acquisition Module (DAQ2500X) Next Product Release ~ Feb ’06 » USB-inSync™ Master Hub (GS22) 6
Slide 39: Silex - A mission focused technology company
Silex - A mission focused technology company * Excellent Resources - Technical Teams - Facilities « Intellectual Property Protection - Patents and Applications - Classification Clear Corporate Strategy Alliances with industry leaders Uranium — new partner being sought SUMCO -~ Silicon wafer partner
Slide 40: A unique company developing technology and advanced materials
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