4DS MEMORY LIMITED — Investor Presentation 2016

Jan 31, 2016

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Transformational and disruptive memory storage

Development update - February 2016

ASX : CAY Development update February 2016

1

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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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• Silicon Valley memory technology developer

• US$10m invested in development over 8 years

• Wholly owned, in-house developed, intellectual property (IP) anchored by 15 US patents granted and 8 US patents pending

• Non-filamentary resistive random access memory (ReRAM)

• For next generation mobile and cloud silicon storage

• Demonstrated a critical milestone of ReRAM cell size at a 50 nanometre (nm) lithography, a breakthrough in ReRAM technology

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Jim Dorrian

BA

Chairman

Dr Guido Arnout

PhD, Electrical Engineering CEO and Managing Director

Howard Digby

BE (Hons) Non-Executive Director

David McAuliffe

LLB (Hons), BPharm Non-Executive Director

Served as CEO and director of several Silicon Valley companies with in depth experience in M&A and IPOs gained through founding and managing successful technology exits. Partner at Crosspoint Venture Partners, an early stage venture capital firm.

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

Former senior roles at IBM, Adobe, Gartner and the Economist Group. Director of Estrella Resources (ASX:ESR).

Experienced company director, has been 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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Guido Arnout

Michael Van Buskirk Chief Engineering Officer

Melanie Buffier

Director, Corporate Strategy and Investor Relations

Refer to previous slide.

Executive roles with a number of leading memory companies in Silicon Valley including Adesto Technologies Corporation, Innovative Silicon Inc, Spansion Inc (the flash memory JV between Advanced Micro Devices (AMD) and Fujitsu).

Over 15 years’ experience in investor relations, communications and financial reporting gained at some of Australia’s leading public companies including Scentre Group, Westfield Retail Trust, Mirvac Group and Westfield Group.

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ASX Code Last traded closing price[1] Market capitalisation Ordinary shares on issue[1,2] Escrowed performance shares Unlisted options[3] Top 20 Shareholders Cash (at 31 December 2015)

4DS

$0.035

$23.1 million 659.2 million 67.6 million 106.1 million 50.4% $2.4 million

1. At 29 January 2015.

2. Including 114.6 million escrowed shares on issue. 3. Including 66.5 million escrowed unlisted options.

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• Today, the majority of non-volatile memory (NVM) storage is NAND Flash (Flash), used in billions of mobile phones, tablets and laptops.

• Memory storage use is growing exponentially:

• Increasing use of cloud storage

• Continued proliferation of mobile devices

• The Internet of Things, connected devices

• The opportunity?

• To replace existing Flash technology which has a diminishing ability to scale further, while still remaining fast and reliable, and meet the future need for more storage in less physical space

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• Staggering growth has seen 90% of data stored today created in the last 2 years

• Cloud storage is moving to silicon storage

• Flash is exhausted

1. MEDIA REDEF : Age of Abundance: How the Content Explosion will Invert the Media Industry, January 2016

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• Hard drives in the Cloud

– Great retention and recovery, but:

• Power hungry

• Heat producing

• Inferior latency

• Cloud players are moving to silicon storage

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NAND Flash currently dominates the US$40bn GB silicon storage market

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2D Flash 16nm to 20nm cell size Limits are # of electrons

3D Flash 40nm to 50nm cell size Limits are structural

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• 4DS next generation memory:

• higher density / potential for better scalability

• cooler / consumes less power

• faster

• better reliability; retention and endurance

• Why is 4DS ReRAM the solution?

• Changes resistance of switching material

• Operates without filaments

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ALL FILAMENTARY ReRAM 4DS NON-FILAMENTARY ReRAM	ALL FILAMENTARY ReRAM 4DS NON-FILAMENTARY ReRAM	ALL FILAMENTARY ReRAM 4DS NON-FILAMENTARY ReRAM
DATA RETENTION	Switching currenthigh	Switching currentlow*
SWITCHING CURRENT	Constant	Scales with cell size
EFFECTIVE CELL SIZE	Switching current deterrmines size	Lower current allows smaller cells
MARKET SWEET SPOT	Lowdensity: Connected devices	Highdensity: Mobile and Cloud

The 4DS memory cell uses no filament to switch= no scaling and retention issues

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The Cloud
R
SSD
E
CPU G E L3 DRAM (HDD) HDD (SSD)
R L1 L2
GPU I Cache
S
S Where
T apps & data Where
are running apps & data
are stored
Embedded memory
Processor Mobile/Tablet/PC
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Memory hierarchy
R The Cloud
E E DRAM SSD HDD (SSD)
CPU G R L1 L2 L3 (HDD)
GPU I Cache
S Where
S
Where
T apps & data
apps & data
are running
are stored
Embedded memory
4DS target market
Non volatile memory
GB silicon storage
speed, endurance and cost per bit density, size (#bits) and retention
Development update February 2016ASX : CAY 14
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Emerging NVM applications

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ASX : CAY Development update February 2016

15

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GB silicon storage supply chain
Mobile
Mobile products
device
makers
Consumer
Cloud
4DS Memory
The
memory chip access
Cloud
technology makers
Silicon
storage
makers
Development update February 2016ASX : CAY 16
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RESEARCH DEVELOPMENT PRODUCTION
>1,000nm
Risk Value
4DS
started
15
patents
50nm
4DS
now
Goal
line
Single cells in large geometries Approach production geometries First product
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Time
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Today: 4DS demonstrated ReRAM cells at 50nm lithography

– Significant progress in scalability and yield

– This is where 3D Flash is today, Flash is an estimated US$40bn market

– Approaching production geometries

• An essential step towards viable GB silicon storage

Tomorrow: demonstrate viable scalability below 50nm with JDA partner, HGST – Endurance

• Retention

• Speed

• Yield

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• Strategic partnership established in 2014 with HGST

• HGST is a global storage leader that strategically invests in high growth and emerging technology segments and innovative product development[1]

• Provides access to resources and expertise

• Accelerates our development program

• Source: https://www.hgst.com/company/company-info

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• Target the fast growing GB silicon storage market

• Develop & own strong IP for GB silicon storage

• Leverage strategic partnerships

• Move technology to where only “time and money” is needed to go to market

• Create window for tremendous shareholder value creation

ASX : CAY 21 Development update February 2016 Recent transactions Acquirer Transaction Date Value (US$) Technology Market Apple Acquired Anobit 2011 $390m Flash controllers Mobile Western Digital Acquired startup Virident 2013 $685m Flash controllers Cloud Western Digital Acquired sTec 2013 $340m Solid state drives Cloud Seagate Acquired LSI 2014 $540m Flash controllers Mobile Cypress Merger with Spansion 2015 $5bn Flash memory Flash systems Western Digital Acquiring Sandisk $19bn Flash memory Cloud

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• 4DS is targeting a massive and fast growing segment at the right time

• Transformational and disruptive Silicon Valley memory platform

• 4DS non-filament based ReRAM, unique among other next generation players

• Developed over 8 years, US$10m invested in R&D, 15 US patents granted

• JDA with HGST, a significant player in the storage market

• Small R, Big D

• Experienced high tech management and industry respected scientists

• Complemented by a Board with significant M&A and IPO experience

• Significant progress demonstrated in scalability and yield at 50nm lithography

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APPENDIX

ASX : CAY Development update February 2016

23

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• Developer of next generation Resistive Random Access Memory (ReRAM)

• Established in 2007 in Silicon Valley with US$10m invested in R&D over last 8 years

• Listed on ASX in December 2015, $2.4m cash on hand (at 31 December 2015)

• 4DS has developed a scalable non-filamentary ReRAM memory cell at a 50nm lithography, a breakthrough in ReRAM technology

• 50nm represents significant progress towards the development of next generation mobile and cloud silicon storage

• Wholly owned, in-house developed, intellectual property (IP) with 15 US patents granted and 8 US patents pending

• Annual global memory market valued at US$79 billion annually with a CAGR of 16%

• Flash is an estimated annual US$40 billion market

• Renewal of Joint Development Agreement with HGST, a global storage leader that invests in high growth and emerging technology segments

• High tech experienced management supported by a team of industry respected scientists and developers and complemented by a Board with significant international M&A and IPO experience

• Strategy is to prove the value of technology and leverage IP through strategic alliances

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iPhone

15”MacBook Pro

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2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015 Minimum
Maximum
0GB 16GB 32GB 48GB 64GB 80GB 96GB 112GB 128GB 0GB 128GB 256GB 384GB 512GB 640GB 768GB 896GB 1024GB
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• Mobile lifestyle uses silicon storage: smart phones, tablets, laptops

• More power hungry HD displays & multi-core processors

• More battery for longer mobility

• Ever thinner & lighter devices

• Less physical space for silicon storage

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Filamentary ReRAM consists of a switching material sandwiched between two electrodes

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• A voltage pulse reversibly changes resistance (typically reversing voltage polarity)

• Resistance change establishes “On” and “Off”

• Switching materials range from simple (binary) metal oxides to multiple element composites

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Metal
Oxide
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Metal
Oxide
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• Most ReRAM create/eliminate conductive “filaments”

• Either oxygen vacancy creation or metal injection into switching material

• Filamentary conduction independent of cell size - potential future scaling issue

• Poor “on” state retention if incomplete filament created

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4DS ReRAM technology is non-filamentary = no filamentary scaling and retention 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

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4DS MOHJO™
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• Non-filamentary switching mechanism

• 4DS patented ReRAM

Bottom Electrode

• Inherently scales well beyond mainstream memories

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

Set Reset

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• 4DS has 15 US patents granted and 8 US patents pending

• Our granted patent portfolio contains a balance between ReRAM cell structure patents and manufacturing process patents and is split evenly between patents with a broad scope and patents that specifically relate to PCMO

• Hetero junction non-filamentary switching is at the core of 4DS’ wholly owned MOHJO[TM ] technology and materials deposition process IP portfolio, developed in house through an US$10 million R&D program over the last 8 years

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4DS Memory Limited

ABN 43 145 590 110 ASX Code : 4DS www.4dsmemory.com info@4dsmemory.com

Registered office

Level 2, 50 Kings Park Road, West Perth WA 6005 AUSTRALIA PO Box 271, West Perth WA 6872 AUSTRALIA +61 8 6377 8043

US office

3155 Skyway Court Fremont CA 94539 UNITED STATES