4DS MEMORY LIMITED — Investor Presentation 2016

Jul 18, 2016

4DS Memory Limited | ABN 43 145 590 110 Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271, West Perth WA 6872

+61 8 6377 8043 | info@4dsmemory.com | www.4dsmemory.com

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ASX RELEASE

19 July 2016

INVESTOR UPDATE

4DS Memory Limited (ASX: 4DS) ( 4DS ) has released an updated presentation to coincide with investor marketing commencing in Australia today.

In addition, a corporate video can be viewed at www.4dsmemory.com/company/corporate-video.

ENDS

Contact information

Investors: Mel Buffier, 4DS Memory +61 411 622 899 mel.buffier@4dsmemory.com Media: James Strong, Citadel-MAGNUS +61 448 881 174 jstrong@citadelmagnus.com

About 4DS

4DS Memory Limited (ASX: 4DS), with research and development facilities located in Silicon Valley, is a developer of non-volatile memory technology, pioneering non-filamentary ReRAM for next generation storage in mobile and cloud. Established in 2007, 4DS owns a patented IP portfolio developed in-house to create high density gigabyte storage. 4DS has a joint development agreement with HGST, a global storage leader. For more information, please visit www.4dsmemory.com.

Disclaimer

This release 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 release (including, but not limited to, any assumptions or expectations set out in the release). You should not place undue reliance on these forward- looking statements. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward- looking statements.

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Addressing the massive storage demands of tomorrow

July 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 patents with over US$10m invested in development so far We make non-filamentary ReRAM for next generation gigabyte (GB) silicon storage 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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Board and management team Global expertise founding and building high-tech companies

Jim Dorrian Dr Guido Arnout Chairman CEO & Managing Director

Served as CEO and Specific expertise with director of several over 30 years in Silicon Valley commercialising companies. M&A and electronics technology IPO experience gained from concept to product through founding and including Power-Escape, managing successful CoWare, CrossCheck technology exits as a Technology and Silvarpartner at Crosspoint Lisco. Venture Partners, a venture capital firm for early stage companies.

Howard Digby David McAuliffe Non-Executive Non-Executive Director Director

Former senior roles at Experienced company IBM, Adobe, Gartner and director. Involved in the Economist Group. numerous capital Director of Estrella raisings and in-licensing Resources (ASX:ESR). of technologies and founder of several companies in Australia, France and the UK, many of which are now publicly listed.

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.

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, Mirvac Group and Westfield Group.

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Capital structure

4DS

ASX Code

Market capitalisation (fully diluted)[1] $18.3 million

Ordinary shares on issue[2] 659.2 million

Performance shares[3] 67.6 million

Unlisted options[4]

106.2 million

50.4% $1.8 million

Top 20 Shareholders Cash (at 31 March 2016)

1. At 18 July 2016 and including 67.6 million performance shares and 106.2 million unlisted options. 2. Including 113.4 million escrowed shares on issue.

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10%
8%
4%
4%
3%
3%
63%
3%
2%
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DIRECTORS & MANAGEMENT ABN AMRO CLEARING SYDNEY KURT PFLUGER BNM HOLDINGS PTY LTD SOUTHAM INVESTMENTS 2003 PTY LTD TISIA NOMINEES PTY LTD JK NOMINEES PTY LTD HOPERIDGE ENTERPRISES PTY LTD

OTHERS

1. Escrowed with expiry 31/12/18.

2. Including 66.5 million escrowed unlisted options.

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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

Apple is the biggest Microsoft trialled an Data centre space will buyer of Flash in the underwater data grow to almost 200 world centre for 90 days to million square metres test its cooling in 2018 benefits Amazon Web Services Consumers spend over Household digital The world is home to adds more server US$2 trillion on content is forecast 7.2 billion mobile capacity in a day than content, devices and to grow by 150% in devices which are Amazon.com had a services every year the next 5 years multiplying five times decade ago faster than we are

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Flash, hard drives & solid state storage

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• Flash dominates the • Hard disk drives (HDDs) US$40 billion non volatile are a data storage device memory market used for storing and

• • Used in billions of retrieving digital information in the cloud

• Used in billions of smartphones, tablets and laptops

• HDDs have great retention and recovery, but:

• More recently used in solid state drives (SSDs) in data centres

• Power hungry

• – Heat producing

• – Inferior latency

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• Data centres and cloud players are moving to the use of SSDs / silicon storage at exponential rates

• Flash has been able to scale to meet industry’s increasing storage needs – now it is starting to reach its limits

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Growing demand for non volatile memory

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Internet of Things Mobile devices GB silicon storage
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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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The solution: 4DS 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 storage required for mobile and cloud

• The benefits of 4DS ReRAM 4DS

• memoryHigher density / scalability

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

• technologyLower power consumption

• Greater endurance and reliability

• Faster access speed and performance

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How 4DS fits into the GB silicon storage supply chain

Mobile products

Consumer

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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 the mobile and cloud GB storage market

• Collaboration provides access to HGST’s expertise

• Accelerates the evolution of 4DS’ non-filamentary 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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Development of viable ReRAM technology

Access Speed Behaviour Scalability Retention Endurance

Every time changes are made to the cell architecture, cell size, materials composition, material thickness or the fabrication process, 4DS has to re-confirm that the changes have the desired effects.

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Development timeline

Produced 50nm cells, in line with 3D Flash production geometries Demonstrated scalability, consistency and behavior with high yield Renewed JDA with	Endurance testing Meet endurance performance milestone Demonstrate viable scalability below 50nm	Continue fabrication refinements Optimise endurance, access speed and retention	Demonstrate viability of 4DS ReRAM for GB silicon storage Additional patents granted Potential IP licensing 2017 goals
HGST
Today	Next 3 months	Ongoing

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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 GB silicon storage for 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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ReRAM landscape

Company	Exchange	Market Cap	Type		Target Market
Crossbar	Private	n/a1	Filamentary ReRAM		Internet of Things, wearables, SSDs
Weebit Nano / Radar Iron	ASX	A$60 million2	Filamentary ReRAM		Internet of Things, wearables
Adesto Technologies	NASDAQ	US$57 million	Filamentary ReRAM		Internet of Things
Strategic Elements	ASX	A$33 million	Nano cube ReRAM		Printable memory
4DS Memory	ASX	A$15 million	Non-filamentary	ReRAM	GB silicon storage for mobile / cloud
Recent transactions
Acquirer	Transaction	Date	Value (US$)	Technology	Market
Western Digital	Acquired startup Virident	2013	$685 million	Flash controllers Cloud
Western Digital	Acquired sTec	2013	$340 million	Solid state drives Cloud
Seagate	Acquired LSI	2014	$540 million	Flash controllers Mobile
Cypress	Merger with Spansion	2015	$5 billion	Flash memory	Flash systems
Western Digital	Acquired Sandisk	2016	$19 billion	Flash memory	Cloud

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1. Raised US$85 million to date.

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1. Implied valuation upon re-listing.

Summary

• 4DS is developing a next generation non-filament based 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

• 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

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

• 4DS is well positioned to target fast growing markets that require GB silicon storage

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 multibillion-dollar emerging NVM market

• 4DS is developing breakthrough ReRAM technology for next generation gigabyte (GB) storage in mobile and cloud – it enables higher density memory to run cooler, faster and longer than traditional storage technologies

• Unique, patented IP, wholly owned and developed inhouse over the last 10 years

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

• Experienced management team and industry respected memory specialists

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2D Flash versus 3D Flash

Flash currently dominates the US$40 billion GB silicon storage market

3D Flash

2D Flash

• 40nm to 50nm cell size

• 16nm to 20nm cell size

• Limits are # of electrons

• Limits are structural

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Two approaches to ReRAM

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

	Filamentary ReRAM	4DS 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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