BLUGLASS LIMITED — Investor Presentation 2012

Nov 25, 2012

GILES BOURNE, CEO, BLUGLASS LIMITED MONDAY 26 NOVEMBER 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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BLUGLASS GROWS HIGH QUALITY
GaN FILMS USING LOW
THE YEAR
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IN REVIEW

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BLUGLASS PRESENTATION – JUNE 2012
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IN THE MEDIA: SNAPSHOT
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BLUGLASS HITS NEW HEIGHTS WITH LED TECHNOLOGY NOVEMBER 22, 2012

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BLUGLASS DRIVES DOWN DEFECTS IN GaN FILMS GROWN BY RPCVD OCTOBER 29, 2012

BLUGLASS TARGETS LED MARKETS

Compound Semiconductor Magazine asks BluGlass “Will the Australia-based firm's low temperature deposition technology take the strain away from LED manufacturing?” NOVEMBER 09, 2012

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BLUGLASS RPCVD GROWN GAN LAYERS DEMONSTRATE REDUCED LEVELS OF KEY IMPURITIES

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BLUGLASS TECHNOLOGY A POTENTIAL GAME CHANGER

OCTOBER 29, 2012

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BLUGLASS SHARES SURGE AFTER TECHNICAL BREAKTHROUGH

OCTOBER 26, 2012

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OCTOBER 25, 2012

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BLUGLASS PRESENTATION – JUNE 2012
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MAJOR TECHNICAL BREAKTHROUGH:
HIGH QUALITY CRYSTAL GaN
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This is a critical step in proving to industry the potential of our breakthrough technology

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High quality crystalline GaN grown using RPCVD on GaN template

Low defect density RPCVD material, matching the crystal quality of the template below

Independently verified crystal quality

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BLUGLASS PRESENTATION – JUNE 2012
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HITS PROOF OF CONCEPT MILESTONE:
DEMONSTRATION OF INDUSTRY QUALITY n-GaN AND REDUCTION OF IMPURITIES
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This is a significant step forward that BluGlass believes will help enable the demonstration of enhanced LEDs grown using RPCVD.

Reduction of impurities and demonstration of n- WORLD FIRST ✓ GaN grown on GaN template Independently verified by Evans Analytical Group, EXPERTLY VERIFIED ✓ IQE and The Australian National University KEY IMPURITIES ON PAR Carbon, oxygen and hydrogen impurity levels less ✓ WITH INDUSTRY than 1x10[17] atoms per cm[3] ELECTRICAL PROPERTIES n-GaN mobility of 300 cm[2] /Vs for a carrier ✓ ON PAR WITH INDUSTRY concentration of 2.1x10[18 ] /cm[3] CRITICAL ENABLER OF TECHNICAL AND COMMERCIAL MILESTONES ✓

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BLUGLASS PRESENTATION – JUNE 2012
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SIGNIFICANT NEW INTELLECTUAL PROPERTY
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The extent of our intellectual property portfolio is visible testament that BluGlass is successfully breaking new ground towards RPCVD becoming a commercial reality

Provisional Patents

02

• Technical advancements have resulted in two provisional patents being filed by the JV company EpiBlu

• PV provisional patents filed to protect solar research advancements

21

Patent Applications in PCT phase

International Granted Patents in 05 Patent Families

17

• Granted in key semiconductor markets including Europe, China, Japan and the US

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BLUGLASS PRESENTATION – JUNE 2012
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100% OWNERSHIP OF EPIBLU
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• BluGlass negotiated the acquisition of SPTS’ 49% stake in the EpiBlu Joint Venture

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VALUE CONTINUED SUPPORT COMMERCIALISATION STRUCTURE

• BluGlass will receive 100% of the benefit of future cash flows from its core IP

• � BluGlass will also retain a license to the SPTS background IP

• � Fully aligns the interests of SPTS with shareholders

• � SPTS will provide marketing assistance to promote commercialisation

• � Enables BluGlass to determine the optimal route for commercialisation

• � Could now involve one of the major LED equipment manufacturers

• Simpler corporate structure, no minority interest

• � Easier access to grants and R & D tax rebates

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BLUGLASS PRESENTATION – JUNE 2012
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VIRTUAL TOUR
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BLUGLASS PRESENTATION – JUNE 2012
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AUSINDUSTRY VISIT
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BLUGLASS PRESENTATION – JUNE 2012
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FINANCIAL RESULTS
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	2011	2012
Revenue $’000	2,085	2,478
Net Loss $’000	(4,171)	(3,237)
Consolidated Cash	$7.97M	$3,73M
Patents Lodged	1	3
Patents Granted	2	1

• Revenue increased 16.1% to $2.4M due to the following factors:

• Receipts from the Commonwealth Climate Ready Grant increased by $300K reflecting the company’s expenditure on the photovoltaic project

• Interest income increased by $43K up 19% following the injection of equity funds from SPTS

• BluGlass expects to receive an R&D rebate and its current cash reserves allow the company to meet its immediate goals

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BLUGLASS PRESENTATION – JUNE 2012
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AHEAD

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BLUGLASS PRESENTATION – JUNE 2012
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ROADMAP TO MARKET

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MARKET OPPORTUNITIES
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• Revenues for high-brightness LEDs grew108% to $11.2 billion in 2010

• � Revenue is expected to peak in 2014 at $16.2B and then fall to $15.3 B in 2015. The dip in revenues will be temporary, as lighting will take over as the engine for growth after 2015. Source: Strategies Unlimited, The Worldwide Market for LEDs, Market Review and Forecast 2012

• The LED equipment market (MOCVD) represents a US $6.1B opportunity through to the end of the decade Source:Yole Developpement III-V Epitaxy Equipment and Application Market Report 2012

• In 2011 the $1.5B market continued to be dominated by two global companies Aixtron and Veeco. Veeco estimates ~400-800 machines will be shipped for the LED market annually to 2016 Source: Veeco Investor Presentation June 2012

• The rapidly expanding concentrated photovoltaic (solar) market is forecast to reach 1.5GW by 2015 by the CPV Consortium in their 2010-2015 CPV Consortium 2010 Report growing from a small base of 60MW in 2011

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UPDATE

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CLICK TO EDIT MASTER TITLE STYLE
POTENTIAL 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 some of Indium to diffuse out of 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
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FOR LOW TEMPERATURE p-GaN
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BluGlass is targeting low temperature p-GaN as the first commercial opportunity

LED STRUCTURE GROWN p-GaN GROWN USING MOCVD USING RPCVD

p-GaN grown at INTERMEDIATE p-GaN grown at LOW temperature to HIGH temperature Multi-Quantum-Well (MQW) InGaN layer, Multi-Quantum-Well (MQW) InGaN layer, the ACTIVE REGION of an LED – the ACTIVE REGION of an LED – grown at low temperature grown at low temperature n-GaN grown at high temperature n-GaN grown at high temperature GaN grown at high temperature GaN grown at high temperature Substrate Substrate

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n-GaN grown at high temperature
GaN grown at high temperature
Substrate
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RPCVD
MOCVD
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PROGRESS TOWARDS THE p-GaN
COMMERCIAL OPPORTUNITY REDUCES IMPURITIES
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• Earlier this year, an RPCVD grown GaN film with good crystal quality was demonstrated when grown on a GaN template (refer to Figure 1)

• Recently, an RPCVD GaN film grown on a GaN template was shown to have low impurities with carbon, hydrogen and oxygen levels all less than 1x10[17] atoms/cm[3]

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PROGRESS TOWARDS THE p-GaN
COMMERCIAL OPPORTUNITY ELECTRICAL PROPERTIES
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ROOM TEMPERATURE HALL MEASUREMENT RESULTS OF AN RPCVD n-GaN FILM GROWN ON A UN-DOPED COMMERCIAL GaN TEMPLATE COMPARED TO A TYPICAL MOCVD GROWN n-GaN FILM

	TYPICAL MOCVD n- GaN SPECIFICATION	RECENT RPCVD n-GaN DATA	RECENT RPCVD n-GaN DATA
		IQE Data	ANU Data
MOBILITY	≥250 cm2/V.s	297 cm2/V.s	300 cm2/V.s
FOR A CARRIER CONCENTRATION	2.0 x 1018 cm-3	2.0 x 1018 cm-3	2.1 x 1018 cm-3

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BLUGLASS PRESENTATION – JUNE 2012
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NEXT TECHNICAL STEPS
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Process Demonstrate Process
development of RPCVD p-GaN development of
RPCVD p-GaN material RPCVD p-GaN
01 grown on 02 specifications on 03 integrated with
MOCVD par with MOCVD MOCVD LED
GaN templates grown p-GaN devices
Demonstrate
Scale the RPCVD
04 improved LED 05 hardware and
efficiency using
process
RPCVD
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