BLUGLASS LIMITED — AGM Information 2022

Oct 3, 2022

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BluGlass Annual General Meeting

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Tuesday 4 October 2022

CONTENTS

ONTENTS
01. Chair’s Report	4
2022 Highlights	5
Financial Performance	6
Intellectual Property Update	7
Overview & Strategic Position	8

02. President’s Report	9
Year in Review	10
Market Opportunities	18
Strategy & Roadmaps	25
Outlook	29
05. Questions & Answers	31

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FORWARD LOOKING STATEMENT

This document has been prepared by BluGlass Limited to provide readers with an update of the Company and the Company’s technology.

Any statements, opinions, technical data and information, or other material contained in this document, do not constitute commitments, representations or warranties by BluGlass Limited or associated entities, or its directors, agents and employees. Except as required by law, and only to that extent, directors, agents and employees of BluGlass Limited disclaim any loss, claim, demand, damages, costs or expenses of any nature whatsoever 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, subjective judgment and analysis, and is subject to significant business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, BluGlass Limited. The assumptions 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. Information on Service Addressable Markets (SAM) is based on internal BluGlass modelling and assumptions, both of which depend on successful R&D outcomes and results achieved within estimated timetables. BluGlass recommends a cautious interpretation be taken by investors.

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JAMES WALKER CHAIR’S REPORT

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2022 HIGHLIGHTS

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BluGlass’ Silicon Valley fab contributing to operations

Launched alpha products for realworld customer trials

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BluGlass’ alpha laser diodes are being evaluated by potential customers in real-world applications, following significantly improved performance.

US fab is now operational and contributing to technical roadmaps, progressively coming online for GaN laser diode manufacturing.

Strengthened industry experienced team across three international facilities

BluGlass is vertically integrating; bringing its supply chain in-house will speed production and profitability, reduce costs and increase margins.

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Significantly strengthened leadership team and technical expertise with the appointment of Jim Haden; and retained and attracted top talent in Silicon Valley and Nashua.

Developing a portfolio of in-demand products with strong customer demand

BluGlass joins the world’s leading GaN consortium as invited member

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Executing on a clear technology and commercialisation roadmap to transition BluGlass from its deep innovative heritage to a commercial laser diode manufacturer of bright, efficient and reliable GaN lasers.

Testament to BluGlass’ internationally recognised leadership position in RPCVD growth technology and novel GaN device development.

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FINANCIAL PERFORMANCE

	2022	2021	YtY Movement 2022-2021
	$	$	%
Revenue Other Income Interest Government grants	604,749 3,661,282 506 314,231	363,573 3,993,477 4,782 657,329	Up 66% Down 8% Down 162% Down 28%
Net Assets	13,220,332	7,509,329	Up 55%
Consolidated Loss	9,355,554	6,298,360	Up 49%
R&D Tax Rebate (Receipt for prior year R&D spend)	~4,000,000	3,320,000	Up 20%
Cash Position (as at end of FY)	5,351,589	4,176,300	Down 23%

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GLOBAL PATENT PORTFOLIO

BluGlass Intellectual Property Map

Internationally Granted 93 Patents Applications in PCT Phase 14 Active 08 Patent Families

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Trademarks

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Large & Growing Markets

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Strengthened, Expert Team

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Few Competitors

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Delivering an Innovative Roadmap

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Increased Revenue Capacity & Reduced Production Costs

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Greater Operational Control & Simplicity

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operational consistency and yields.
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JIM HADEN PRESIDENT’S REPORT

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YEAR IN REVIEW
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Aug 21

Sep 21

Apr 22

Apr 22

Jun 22 Sep 22

Sep 22

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DEVELOPMENT PROGRESS – FOUR KEY INGREDIENTS TO RELIABLE LDs

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2. LOW RESISTANCE METALS & OHMIC CONTACTS
Demonstrated improved metal designs , with
significantly lower resistance for both negative and
positive metal contacts
Optimised ridge design
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3. CLEAN FACETS & LOW LOSS AR/HR COATINGS
Cleave improvements demonstrated at contract
manufacturers, allowing sale of alpha products
Improved low loss AR and HR coatings
Demonstrated best cleaved optical facets to date
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1. LOW LOSS, HIGH GAIN EPITAXY
Launched two new improved epi-designs to optimise
performance, reduce strain and increase light output
New designs are highly promising demonstrating best
light-output and power to-date
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1. SOUND THERMAL & MECHANICAL BONDS

Demonstrated first TO-Cans at CM enabling sale to an alpha customer

Successful ‘epi-down’ (p-down) Chip on Submount (CoS) bonding both in-house and with CMs

Reduced thermal path, better heat management paves way for higher-performance and higher-value products

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VERTICALLY INTEGRATING – ACQUIRED SILICON VALLEY FAB

Increased revenue capacity & faster profitability

BLUGLASS CAPTIVE FAB WILL HALVE WAFER PRODUCTION COSTS

Increased manufacturing capability enables BluGlass to realise competitive advantages and value proposition. Acquisition reduces production costs, increases profit margins, and brings forward cash-flow positivity to 2024/2025.

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Accelerated development & roadmaps
Fast-tracks longer-term plan to bring fabrication processes in-
house, reducing costs and scaling operations, at the same
time as accelerating development roadmaps.
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Production cost crossover point is reached in CY2024 when cost per wafer drops below $4800.

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Matchless opportunity
Extremely rare opportunity to acquire working laser diode fab
for fraction of the ~$US40m cost to build.
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Formed an expert team
BluGlass has acquired with the facility a highly-skilled, expert
manufacturing and development team with decades of laser
diode experience.
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SILICON VALLEY FAB COMMENCES CONTRIBUTING TO TECH ROADMAPS

Silicon Valley fab has received all required regulatory approvals to begin processing

Conversion to gallium nitride laser fabrication is well underway

The facility is now operational with development and manufacturing commencing

Short-loop development runs already produced significant results, enabling full laser processing

Outstanding workmanship demonstrated from first process runs

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FREMONT FACILITY TOUR

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SHIPS FIRST ALPHA PRODUCTS TO CUSTOMER

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BluGlass shipped 405nm and 420nm alpha products to a
customer for integration within new product design and
development cycles for testing and feedback.
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An alpha product is an advanced prototype still in the
design phase and is a valuable tool to collect customer
feedback in real-world applications.
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BluGlass is working with several customers wanting to
trial alpha products for innovative new applications,
including medical devices, sensing, quantum
computing, and automotive products.
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BLUGLASS JOINS WORLD LEADING GaN CONSORTIUM

Invited member of the University of California, Santa Barbara’s (UCSB) Solid-State Lighting & Energy Electronics Centre (SSLEEC) consortium

Member companies are internationally recognised as contributing to the advancement of solid-state lighting & electronics

Membership provides BluGlass with access to the UCSB’s pre-eminent GaN faculty and facilities, accelerating its advanced laser product roadmaps

Testament to BluGlass’ leading innovation in RPCVD epitaxy growth, novel laser architectures, and longerwavelength GaN devices.

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MARKET OPPORTUNITIES

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MARKET DRIVERS - THE ADVANTAGES OF GaN

GaN lasers have many inherent advantages over traditional infrared (GaAs) laser diodes

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Higher energy absorption in key industrial metals
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Tighter beam focus and improved efficiency
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Higher precision manufacturing, enabling increasingly
advanced technology applications
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Cleaner, faster materials processing
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Improvement of energy
Key Metals
absorption in metals
Gold 66x
Silver 17x
Copper 13x
Aluminum 3x
Nickel 1.5x
Steel 1.5x
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Source: NASA, 1969

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MARCH 2020
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TARGET MARKETS BY APPLICATION

BluGlass is focused on key Service Available Market opportunities by 2025 worth more than US$735M of the $2.5B global GaN laser market $355M

$240M

Total Other Markets Applications: Defense, Displays, Automotive, Augmented & Virtual Reality, General Lighting $60M Biotech & Medical Market Applications: Flow cytometry, Medical diagnostics, DNA sequencing, Endoscopy, Bio-fluorescence

Industrial Market Applications: Industrial cutting & welding, 3D printing (metals and polymers), Machine Vision, Electric Vehicles, Batteries, Renewables, Aviation

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Markets
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11%
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$80M Scientific Market Applications: Quantum Computing, Autonomous Vehicles, Robotics, Sensors

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Providing plug and play easy-to-use laser light through:

How BLG meets these needs: Short-Term

multichip modules and RPCVD enhanced lasers to achieve brighter,

How BLG meets these needs: Long-Term

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US$240M Product Addressable Market by 2025

process capabilities..

BLUGLASS TARGET MARKETS: Scientific Segment/Focus on Quantum

Wavelengths:

• 450nm MM

• 405nm SM/MM

US$80M Product Addressable Market by 2025

Key Customers:

Key Applications:

Quantum Sensing

Laser-based quantum sensors are superseding traditional sensing technologies such as accurate atomic clocks, sensitive quantum gravitometers, and low-noise quantum interference microscopy for navigation systems e.g autonomous vehicles, drones and robotics.

• Toptica Photonics

• NKT Photonics

• Bosch

• Coherent

• Hubner Photonics

• M-Squared

Quantum Computing

Cold-atom systems are a key building block for types of quantum computers. Cooling lasers freeze the atoms and hold them still, mid-air, using the Doppler cooling technique. The cooled atoms will work as qubits, the basic building block for quantum computing.

• Laser Quantum

• AMS Technologies

• MKS

Laser pumping (DPSS / Ti:Sa)

Disruptive technology for pumping of solid-state lasers in particular Ti-sapphire lasers, the dominant product in the ~$1B tunable scientific laser market .

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US$60M Product Addressable Market by 2025

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Wavelengths:
•
405nm SM
•
488nm SM
•
532nm
Key Applications:
Flow Cytometry
As the need for more personalsed medicine increases,
researchers are finding that new laser wavelengths and
integrated multiwavelength laser light engines are enabling
high-dimensional analysers with improved performance.
Optical Coherence Tomography (OCT)
Optical Coherence Tomography (OCT) is a fundamentally
new biomedical imaging technology that generates high-
resolution, cross-sectional and volumetric image of
subsurface tissue structure and pathology by measuring
echo time delays of light.
Multi-Wavelength lasers sources show improvement in
system performance in the >$1B market.
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STRATEGY & ROADMAP

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BRINGING FREMONT ONLINE - MORE SPEED, BETTER CAPABILITY

• Cohabitation (with fab sellers)

• • Employee onboarding •• Commence approval process • Plant clean-up

April 2022 Acquires SV LD Fab •• Plant clean-up

May-June l 2022 Stage One GaN Conversion July – Sept 2022 Commence Operations

Hired expert leadership team Established process capabilities Brought key equipment online Initiated short-loop processing (no wet processing; no toxics)

•

• Obtained EPA permit

• Obtained local air/water permits

• Process development

• First laser diode wafers commence processing

• Establish flows and process Process transfer p-contacts & ridge Benchmark performance to CMs – improved workmanship standards

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Bring p-side Processes In-House
Aug – Sept 2022
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• Fremont’s equipment comes online
Aug – Feb 2023 •• Process transfer of AR & HR CoatingsBenchmark performance to CMs Bring Facet Coatings In-House
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• Process transfer of n-metals
Oct – Jun 2023 • Establish grind and polish capabilities Vertically Integrate & Exit Front-end CMs
• Establish bar cleave processing
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TECHNOLOGY & COMMERCIALISATION ROADMAPS

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2021 2022 2023…
Q3 Q4 Q1 Q2 Q3 Q4 Q1
Blue LD Alpha Phase
Optimise designs (Epitaxy,
Metals, Facets, Bonds)
Establish LD reliability
Accelerated Lifetime Testing
(1000hrs)
Launch Beta Products
Commence Pilot Production
Accelerated Lifetime Testing
(2000hrs)
Green LD Alpha Phase
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DELIVERING AGAINST CLEAR PRODUCT DEVELOPMENT PIPELINE

BluGlass has demonstrated strong progress on initial product offering

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MM – 1W MM – 1.2W
405nm
MM: Multi Mode
SM – 100-200mW SM – 250mW
Violet SM: Single Mode
MM – 1W MM – 1.8W
420nm
SM – 100-200mW SM – 250mW
MM – 1.6W MM – 3.5W MM – 5W
450nm
MM – 2W
Blue 470nm SM – 100 -250mW
MM – 1.5-2W
488nm
SM – 100-200mW
MM – 1.5-2W
Green
525nm
SM – 100-200mW
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MM: Multi Mode

SM: Single Mode

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OUTLOOK

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SUMMARY & OUTLOOK

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Fast-tracked Demonstrated LD
Company Goals Improvements &
Launched Alpha
BluGlass’ acquisition of a Products
full-suite production fab
supports company vision
Strong performance
and fast-tracks longer-term
improvements have
plan to bring fabrication
generated high-levels of
processes in-house,
interest at Photonics West and
reducing costs and scaling
operations. Laser World of Photonics, with
first alpha products shipped
Matchless opportunity to to a customer for real-world
acquire working fab for
application trials.
fraction of cost to build.
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Delivering on Clear
Large & Growing
Roadmap Markets
Global laser revenue is
forecast to exceed US$25B
BluGlass is delivering on its
by 2025.
commercial and technology
roadmaps to a deliver a
The GaN segment is growing
pipeline of in-demand faster than anticipated,
products to market. New forecast to reach US$2.5B
fab also accelerates a by 2025.
higher-value product
One of only a handful of end-
pipeline including tunnel to-end GaN laser diode
junctions, longer/ shorter manufacturers globally.
wavelength lasers
(UV/Green).
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*Source: Strategies Unlimited 2020

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Investor Relations:

Stefanie Winwood

P: +61 2 9334 2300

E: investors@bluglass.com.au

BLUGLASS 2022 ANNUAL GENERAL MEETING THANK-YOU & QUESTIONS BLUGLASS 2022 ANNUAL GENERAL MEETING BLUGLASS 2021 ANNUAL GENERAL MEETING31

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