BLUGLASS LIMITED — AGM Information 2013

Nov 24, 2013

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BLUGLASS 2013 AGM PRESENTATION 25 NOVEMBER 2013

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BLUGLASS PRESENTATION – JUNE 2012
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DISCLAIMER

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• This document has been prepared by BluGlass Limited to provide existing and prospective investors in BluGlass Limited with a summary of progress to date.

• Any statements, opinions, or other material contained in this document do not constitute any commitments, representations or warranties by BluGlass Limited or/and associated entities or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of BluGlass Limited shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this document.

• This document includes certain information which reflects various assumptions. The assumptions may or may not prove to be correct. Recipients of the document must make their own independent investigations, consideration and evaluations prior to making any decisions to invest in the Company.

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BLUGLASS PRESENTATION – JUNE 2012
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2

THE YEAR IN REVIEW

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SIGNIFICANT PROGRESS IN FY13

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September 2012		Awarded a key patent for depositing metal nitride films
October 2012		Impurity levels equal to the industry standard process
November 2012		n-GaN films with electrical properties meeting industry benchmarks
December 2012		$4.75m raised through Institutional Placement & Share Purchase Plan
December 2012		Preliminary demonstration of p-GaN films using RPCVD
February 2013		Successfully produced p-GaN using RPCVD
July 2013		$2.99m award under the Clean Technology Innovation Program
October 2013		Australian Cleantech Competition – Overall winner
November 2013		Commissioning of Thomas Swan MOCVD system

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FINANCIAL RESULTS

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~~BLUGLASS HAS A SOUND CASH POSITION~~

AS AT JUNE 30	FY12	FY13
Revenue and Other Income $’000	2,478	4,726
Net loss $’000	(6,231)	(1,676)
NET CASH	3,549	5,590

KEY CASH EVENTS:

• December 2012 - Institutional placement ($2.35m) and SPP ($2.47m)

• July 2013 - $3m Cleantech Innovation Grant

• September 2013 - $1.96m R&D tax credit

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THE YEAR AHEAD

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ENERGY CONSUMPTION IN LIGHTING BY 62%; AND VOID THE NEED TO BUILD 133 NEW POWER PLANTS

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STRATEGY FOR THE COMING YEAR

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TECHNOLOGY

• Meet milestones, especially p-GaN performance

• Accelerate R&D in other areas (GaN on silicon)

• Increase activity on PV technology and milestones

MARKETS

• Continue to focus on LED, PV

• Evaluate other applications, e.g. power electronics

COMMERCIALISATION

• Continue dialogue with market leaders in the LED value chain

• Enter into commercialisation through a number of options including; licensing, strategic partnerships and providing foundry service

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INCREASING CAPACITY

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PATENTS STRATEGY

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RIGOROUS IP PROTECTION PROCESS

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Patent
Identification
maintenance
of new IP
& review
Optimal Prior art
patent award development
and &
protection assessment
Patent
application & Competitor
review assessment
process
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 2 Provisional patents in drafting

 17 Pending patent applications

 International granted patents in six patent families  17 Granted in key semiconductor markets including Europe, China, Japan and the US

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MARKET OPPORTUNITY - LED

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The LED equipment market (MOCVD) represents a $6.1B market opportunity through to the end of the decade*

The LED share in general lighting is expected to grow from 5% today to over 45% in 2016 and 70% by 2020**

The global lighting market is forecast to have revenues in excess of US $103B by 2020**

• Yole Developpment

** Lighting the Way, McKinsey Report

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OTHER MARKET OPPORTUNITIES

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The power electronics market was worth US $20B in 2012. GaN use in power electronics is still in its infancy and in 2012 was worth only $12.6m. It is expected to grow at a CAGR of 63.78% over 10 years to $1.75B by 2022 (Markets and Markets)

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The CPV market is expected to grow to 4.75GW by 2020. CPV continues to emerge as the most effective method to deliver large scale, cost effective renewable energy from the sun (Global Data)

SOURCE: Chart and Data - GaN Semiconductor Devices, Global Forecast and Analysis (2012-2022) by Markets and Markets)

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AUSTRALIAN CLEANTECH WINNER

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BluGlass is awarded the 2013 Australian CleanTech Competition Overall Winner & Manufacturing Industry award

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TRADE MISSION TO ASIA

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THE TECHNOLOGY UPDATE

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BENEFITS OF RPCVD FOR LED

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A low temperature growth system such as RPCVD may offer LED manufacturers compelling performance advantages at several stages of device growth. Low temperature p-GaN is one area that BluGlass is presently focusing on.

LED STRUCTURE GROWN USING MOCVD

BENEFITS OF RPCVD GROWTH

p-GaN grown at intermediate to high temperature

Multi-Quantum-Well (MQW) InGaN layer, the ACTIVE REGION of an LED - grown at low temperature

The higher temperature growth of the p-GaN top layer compared to the MQW layer can cause degradation to the active MQW layer and reduce the LEDs light output. MOCVD cannot effectively grow high performance p-GaN at lower temperatures

n-GaN grown at high temperature

GaN grown at high temperature

RPCVD has great potential to improve device performance by growing a low temperature p-GaN layer which in turn improves the stability of the InGaN layer during growth

Substrate

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DEMONSTRATION PLANNED FOR LOW TEMPERATURE p-GaN

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BluGlass is targeting low temperature p-GaN as the first commercial opportunity

LED STRUCTURE GROWN USING MOCVD

p-GaN GROWN USING RPCVD

p-GaN grown at INTERMEDIATE to HIGH temperature

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p-GaN grown at LOW temperature

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Multi-Quantum-Well (MQW) InGaN layer, the ACTIVE REGION of an LED – grown at low temperature

n-GaN grown at high temperature

GaN grown at high temperature

Multi-Quantum-Well (MQW) InGaN layer, the ACTIVE REGION of an LED – grown at low temperature

n-GaN grown at high temperature

GaN grown at high temperature

Substrate

Substrate

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2012 PROGRESS –

LOW IMPURITIES AND n-GaN

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Room temperature Hall TYPICAL MOCVD RPCVD Measurement results of an n-GaN SPECIFICATION n-GaN DATA RPCVD n-GaN film grown on a commercial GaN MOBILITY ≥ 250 cm[2] /V.s 300 cm[2] /V.s template - compared to a typical MOCVD grown FOR A CARRIER n-GaN film specification CONCENTRATION 2.0 x 10[18] cm[-3] 2.1 x 10[18] cm[-3] m OF

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Cross sectional TEM image showing the sample used for the above electrical data and for impurity levels: carbon, oxygen and hydrogen impurity levels less than 1x10[17] atoms per cm[3 ]

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2013 PROGRESS: p-GaN

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• BluGlass has successfully demonstrated p-GaN films grown at low temperature with electrical properties equivalent to films grown using MOCVD

• Since this was announced earlier this year, BluGlass has continued to improve the quality of its p-GaN (see below). This was achieved with an RPCVD hardware design modification

Room temperature Hall Measurement results of an RPCVD p-GaN film grown on a commercial GaN template m

	TYPICAL MOCVD p-GaN SPECIFICATION	FEB 2013 RPCVD p-GaN DATA	RECENT RPCVD p-GaN DATA
RESISTIVITY	≤ 3 Ohm.cm	1.0 Ohm.cm	1.0 Ohm.cm
FOR A CARRIER CONCENTRATION OF	≥1.0 x 1017cm-3	2 x 1017cm-3	8 x 1017 cm-3

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2013 PROGRESS - CHALLENGES

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INPUT FROM KEY PARTICIPANTS IN THE LED INDUSTRY

• Require that RPCVD can demonstrate:

• Improved LED performance

• The technology is scalable

KEY TECHNICAL CHALLENGES

• Establishing the appropriate growth initiation conditions when growing on a MQW

• Scaling the plasma technology to achieve uniform deposition over large areas

WHAT NEEDS TO HAPPEN TO MEET CUSTOMER INTEREST

• Improved LED performance demonstration on the 7x2” RPCVD system  Implement a hardware change (enhanced plasma source)

• Integrate MOCVD growth with RPCVD growth – enabled with the newly commissioned MOCVD system on site at BluGlass

• Improved LED performance demonstration on the 19x2” (scaled up) RPCVD system

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FACILITIES UPGRADE 2013

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Thomas Swan 2 – (19x2”) MOCVD system to be converted to RPCVD

Thomas Swan 1 – (19x2”) MOCVD system – commissioned in The 5[th] Gen RPCVD Nov 2013 system (7x2”) . R&D system

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FACILITIES UPGRADE 2013

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2
INSTALL MOCVD
SYSTEM
Industry
Brighter LEDs Bring to Scale
Acceptance
BLUGLASS PRESENTATION – JUNE 2012
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RPCVD GaN ON SILICON

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WHY THE INTEREST IN GaN ON SILICON?

• LED manufacturers continue to look for ways to reduce cost

• New Market opportunities outside of LED market

• Power electronics

THE PROBLEM WITH GaN ON SILICON?

• However GaN on silicon is prone to cracking during manufacturing due to a large lattice and thermal mismatch. Notably the thermal mismatch can lead to severe bowing during cooling from the high temperatures used in MOCVD growth

THE RPCVD SOLUTION

• Low temperature RPCVD has the potential to reduce bowing and avoid wafer cracking

• BluGlass will convert a 19 x 2” Thomas Swan MOCVD system into an RPCVD system for use on development of GaN on silicon

• Demonstrate up to 8 inch silicon wafer deposition

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P: +61 (0) 2 9334 2300 W: www.bluglass.com.au

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