4DS MEMORY LIMITED — Investor Presentation 2016

Oct 19, 2016

Developing nano scale cells for storage class memory

20 October 2016

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Disclaimer and important notice

This presentation has been prepared by 4DS Memory Limited. (“4DS” or the “Company”) based on information available to it as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision.

This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in 4DS, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of 4DS and conduct its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. 4DS is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of 4DS securities.

Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of 4DS, its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it.

The information presented in this presentation is subject to change without notice and 4DS does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation.

The distribution of this presentation may be restricted by law and you should observe any such restrictions.

Forward looking statements

This presentation contains certain forward looking statements that are based on the Company’s management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of 4DS to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which 4DS will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.

To the full extent permitted by law, 4DS and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation).

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4DS Memory

We are a Silicon Valley memory technology developer listed on the ASX We own 16 US patents with approximately US$12m invested in development over the past decade We make Interface Switching (non-filamentary) ReRAM for next generation storage class memory We enable higher-density memory to operate cooler, faster and longer We have a strategic partnership with Western Digital subsidiary HGST, a global storage leader

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4DS has achieved a breakthrough 40nm milestone

• 4DS has achieved working 40nm Interface Switching ReRAM cells for the first time

• This significant milestone was achieved in collaboration with HGST, a subsidiary of Western Digital, the global leader in digital storage

• In the last 2 years, 4DS has consistently improved the scalability of cells from 800nm to 40nm

• 40nm represents a digital memory cell size which is smaller than existing non-volatile memory (NVM) technology, 3D Flash memory

• 40nm is vital for storage class memory – as the cells have no filaments, they are inherently scalable and do not have the same physical limitations as Flash or Filamentary ReRAM

• Patented technology demonstrates potential for 4DS to deliver memory cells which are significantly faster, cheaper and more energy efficient than existing Flash memory

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Why is 40nm significant?

The biggest technical barrier for manufacturers of storage class memory is size

• Memory technology developers are in a race to achieve a resolution of 40nm

• Ability to scale down to 40nm is essential for mass market adoption of storage class memory

• Demonstrating the potential for ongoing scalability is critical for a memory technology to be viable

• 40nm is below the current size of conventional 3D Flash memory of between 45nm to 50nm

• The Flash market is estimated to be around US$40 billion

• 40nm represents the target cell size needed to prove the value of 4DS’ technology to memory makers

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Significantly oversubscribed placement

• A$4.0 million raised will fund development activities to achieve key technical and strategic milestones

• • Significantly oversubscribed, bringing onto the register a number of new, high quality institutions

• Strengthened cash position allows 4DS to focus on demonstrating commercial viability of its technology A$4.0 million placement[1] 117.6 million ordinary shares at 3.4 cents Tranche 1 - 88.87 million ordinary shares Within existing 15% capacity Settlement expected 26 October 2016

Tranche 2 - 28.77 million ordinary shares

Subject to shareholder approval at AGM on 30 November 2016 Settlement expected 01 December 2016

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1. Completion of placement announced on 20 October 2016.

Capital structure post placement

ASX Code 4DS

Market capitalisation (fully diluted)[1] $32.3 million Ordinary shares on issue[2] 776.8 million Performance shares[3] 67.6 million Unlisted options[4] 106.1 million Pro forma cash (at 30 June 2016)[5] $5.2 million

1. Based on the placement share price of 3.4 cents and including 776.8 million ordinary shares, 67.6 million performance shares and 106.1 million unlisted options. 2. Including 117.6 million placement shares and 113.4 million escrowed shares on issue.

2. Escrowed 12 months and 24 months from relisting with expiry 31/12/18.

3. Including 66.5 million escrowed unlisted options.

4. Includes gross proceeds from the placement.

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Development timeline

Produced 40nm cells, below 3D Flash production geometries 16 US patents granted JDA with Western Digital subsidiary HGST renewed to 30 June 2017	Meet endurance performance milestone in early Q4 2016 Continue fabrication refinements, characterisation and testing Optimise scalabililty, endurance, access speed and retention	Expect additional patents to be granted Demonstrate viability of 4DS ReRAM for GB silicon storage Attract a potential IP licensing deal or strategic acquisition 2017 goals
Today	Ongoing

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4DS Interface Switching ReRAM

Why is 4DS ReRAM the solution?

• Operates without filaments

• device

• allows the switching current to scale in line with cell size

• Scales well to smaller geometries

• well suited for GB silicon storage required for mobile and cloud

• Demonstrates ongoing scalability potential – critical to meet the growing demands for storage class memory

• 4DS Memory

technology The benefits of 4DS ReRAM

• Higher density / scalability

• Lower power consumption

• Greater endurance and reliability

With higher density memory that runs cooler, faster, longer, 4DS is well positioned to target the fast growing multi-billion-dollar NVM market

• Faster access speed and performancestorage

• Simpler manufacturing steps

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Joint development agreement with HGST

• HGST is a subsidiary of Western Digital Corporation, the leader in digital storage

• Strategic player in emerging high growth technologies

• Commenced in 2014 and renewed for the 2[nd] time in July 2016

• Goal is to optimise 4DS memory technology for storage class memory

• Collaboration provides access to HGST’s expertise

• Accelerates the evolution of 4DS’ Interface Switching ReRAM

• Cost effective way to demonstrate commercial viability of 4DS’ unique ReRAM technology

• Only known non-filamentary ReRAM technology with a JDA partner

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Our strategy

• Deliver higher density memory that operates with lower power consumption, increased reliability and improved performance

• Develop and own all IP

• Leverage strategic partnership with HGST

• Focus on storage class memory for next generation mobile and cloud

• Demonstrate commercial viability and prove the value of our ReRAM solution

• Create significant shareholder value by continuing to achieve all critical technical milestones

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Summary

• 4DS is developing a next generation Interface Switching ReRAM memory solution which can store more data and can operate cooler, faster and longer compared to traditional storage memory

• Unique, patented IP, wholly owned and developed in-house over the past 10 years

• Development accelerating through strategic partnership with the leader in digital storage

• Low cash burn rate for an emerging memory technology developer

• World-class team of memory specialists, material scientists and test engineers

• • Consistently achieved stated milestones

• Board experienced in founding, building and exiting high tech companies

• 4DS is well positioned to target fast growing markets that require storage class memory

We are addressing the massive memory storage demands of tomorrow

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Appendix
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Investment proposition

• Penetration of mobile devices, generation of digital content, proliferation of cloud storage, the emergence of the Internet of Things and the growth of connected devices drive the need for memory storage solutions

• NAND Flash (Flash) is a 30 year old non volatile memory (NVM) technology with diminishing ability to reliably scale to meet the exponential growth of data demands

• Industry experts cite resistive random access memory (ReRAM) as the leading emerging memory candidate to overcome the limitations of Flash, creating a multi-billiondollar emerging NVM market

• 4DS is developing breakthrough ReRAM technology for storage class memory– it enables higher density memory to run cooler, faster and longer than traditional technologies

• With a scalable 40nm cell, 4DS is demonstrating the potential for ongoing scalability, critical for a memory technology to be viable

• Unique, patented IP, wholly owned and developed in-house over the last 10 years

• A strategic partnership with HGST a subsidiary of Western Digital, a world leader in digital storage, is now into its 3rd year

• Experienced management team and industry respected memory specialists

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Board and management team Global expertise founding and building high-tech companies

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Jim Dorrian Non-Executive Chairman

Served as CEO and director of several Silicon Valley companies. M&A and IPO experience gained through founding and managing successful technology exits as a partner at Crosspoint Venture Partners, a venture capital firm for early stage companies.

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Dr Guido Arnout CEO & Managing Director

Specific expertise with over 30 years in commercialising electronics technology from concept to product including Power-Escape, CoWare, CrossCheck Technology and SilvarLisco.

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Howard Digby Non-Executive Director

Former senior roles at IBM, Adobe, Gartner and the Economist Group. Non-Executive Director of Estrella Resources (ASX:ESR) and an advisor to a number of early stage technology companies.

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David McAuliffe Non-Executive Director

Experienced company director. Involved in numerous capital raisings and in-licensing of technologies and founder of several companies in Australia, France and the UK, many of which are now publicly listed.

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Michael Van Buskirk Chief Engineering Officer

Executive roles with a number of leading memory companies in Silicon Valley including Adesto Technologies Corporation, Innovative Silicon Inc and Spansion Inc.

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Melanie Buffier Corporate Strategy & Investor Relations

Investor relations, communications and financial reporting experience gained at some of Australia’s leading public companies including Scentre Group, Westfield Retail Trust, and Mirvac Group.

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Endless demand

1 million video hours are uploaded

700 million tweets are posted

Every 24 hours...

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250 billion emails are sent

1.3 billion photos are uploaded

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Silicon storage facts

Microsoft trialled an underwater data centre for 90 days to test its cooling benefits

Apple is the biggest buyer of Flash in the world

Amazon Web Services Consumers spend over adds more server US$2 trillion on capacity in a day than content, devices and Amazon.com had a services every year decade ago

Data centre space will grow to almost 200 million square metres in 2018

Household digital content is forecast to grow by 150% in the next 5 years

In 2020, demand for silicon storage capacity will outstrip production by 6 zettabytes (or nearly double the demand of 2013 alone)

The world is home to 7.2 billion mobile devices which are multiplying five times faster than we are

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The Looming Storage Crisis

The world is facing an impending crisis in memory storage as technology struggles to keep up with demand By 2020 demand for storage capacity will reach breaking point as the level of data created, replicated and consumed reaches 50 zettabytes – which is the equivalent of 12,500 billion DVD’s[1]

Flash memory, the incumbent technology, used in billions of mobile devices, tablets, laptops and data centres cannot scale smaller and cannot forever keep up with these levels of data generation

Innovation is needed to meet the future demands for higher density storage that is faster, has greater endurance and is smaller than current technology

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1. Source: International Data Corporation.

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2D Flash versus 3D Flash

Flash currently dominates the silicon storage market

2D Flash

• 16nm to 20nm cell size

• Limits are # of electrons

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3D Flash

• 45nm to 50nm cell size

• Limits are structural

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Flash cannot scale forever

• It’s time for a memory innovation for GB silicon storage

• What is ReRAM?

• resistive random access memory

– non volatile: retains data when power is switched off

• changes in material resistance works as the storage mechanism

• Scalability and low currents are essential for GB silicon storage

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ReRAM landscape

Company	Exchange : Code	Market Cap	Type	Target Market
Crossbar	Private	n/a1	Filamentary ReRAM	Internet of Things, wearables, SSDs
Weebit Nano	ASX : WBT	A$35.2 million2	Filamentary ReRAM	Internet of Things, wearables
Adesto Technologies	NASDAQ : IOTS	US$33.6 million2	Filamentary ReRAM	Internet of Things
Strategic Elements	ASX : SOR	A$30.9 million2	Nano cube ReRAM	Printable memory
4DS Memory	ASX : 4DS	A$32.3 million3	Non-filamentary ReRAM	Storage class memory- mobile, cloud

Recent transactions

Acquirer		Transaction	Date	Value	Technology	Market
Western	Digital	Acquired startup Virident	2013	US$685 million	Flash controllers	Cloud
Western	Digital	Acquired sTec	2013	US$340 million	Solid state drives	Cloud
Seagate		Acquired LSI	2014	US$540 million	Flash controllers	Mobile
Cypress		Merger with Spansion	2015	US$5 billion	Flash memory	Flash systems
Western	Digital	Acquired Sandisk	2016	US$19 billion	Flash memory	Cloud

1. Raised US$85 million to date.

2. Fully diluted and based on last close at 19 October 2016.

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1. Fully diluted and based on placement price of 3.4 cents.

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Two approaches to ReRAM

The 4DS memory cell uses no filament to switch therefore no scaling issues

	Filamentary ReRAM	4DSInterface Switching (Non-Filamentary) ReRAM
Switching currents	High and don’t scale with cell size	Low andscale with cell size
On-off current ratios	Must be high due to widely fluctuating currents	Can be low due to muchmore stable currents
Scalability	Limited by wire current densities due to	Lower current allowssmaller cellsnot limited by
	constant switching currents	wire current densities
Cycling endurance	Constant filament formation and destruction	Does not rely on a destruction mechanism thereby
	results in eventual cell breakdown	increasing reliability
Data retention	High switching currents needed for long data retention	Low switching currentshelp data retention
Market sweet spot	Low density:	High density:
	IoT devices, small embedded memories	GB silicon storage for mobile and cloud

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Why is 4DS ReRAM better placed?

4DS ReRAM technology is non-filamentary therefore has no filamentary scaling issues

4DS MOHJO™

• Metal Oxide Hetero Junction – patented cell structure and operation

• Oxygen exchange across hetero-junction

• A voltage pulse reversibly changes resistance

• Reversing voltage polarity switches resistance

• Non-filamentary switching mechanism

4DS patented ReRAM

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Top electrode
4DS MOHJO™
Bottom electrode
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• Inherently scales well beyond mainstream memories

• Ideal candidate to replace Flash as dominant future non volatile memory

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Corporate directory

4DS Memory Limited Registered office US office ABN 43 145 590 110 Level 2, 50 Kings Park Road 3155 Skyway Court West Perth WA 6005 Fremont CA 94539 ASX Code: 4DS AUSTRALIA UNITED STATES www.4dsmemory.com PO Box 271, info@4dsmemory.com West Perth WA 6872 AUSTRALIA +61 8 6377 8043

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