BLUGLASS LIMITED — Investor Presentation 2012

May 30, 2012

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BLUGLASS PRESENTATION – JUNE 2012 WWW.BLUGLASS.COM.AU

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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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EXECUTIVE SUMMARY
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✓	Breakthrough Technology	� �	BluGlass has patented processes for exploiting Remote Plasma Chemical Vapour Deposition (RPCVD) Applicable to several large end markets
✓	Performance and Cost Advantages	� �	Superior performance potential for LED and PV devices enabled through BluGlass’ unique lower temperature process Cost and scalability benefits
✓	Rapidly Growing End Markets	� �	LED market growing at 30% p.a. to US$18bn+ by 2015 1. Concentrated Photovoltaic (CPV) solar cell market rapidly expanding to 3GW by 20132.
✓	Key Partnerships	� �	JV with SPTS Technologies (global semiconductor equipment provider) Significant Australian Government grants
✓	Progressing towards commercialisation	� �	RPCVD technology approaches commercialisation Next steps for the company: - Produce commercial quality material - Produce market leading material - Customer site for demonstration and testing

1. Source: Strategies Unlimited 2.Source: CPV Consortium

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RECENT ANNOUNCEMENTS
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TEM IMAGE AT INTERMEDIATE MAGNIFICATION

RPCVD GaN layer

• BluGlass produces high quality crystalline GaN films using low temperature RPCVD

• �Independent Expert verification of film quality

MOCVD GaN layer

As shown in the transmission electron microscopy (TEM) image, both the MOCVD and low temperature RPCVD GaN layers (dark grey layers) are of equal quality, i.e. both have a low defect density and good crystalline quality

The achievement of high quality crystalline GaN films grown at low temperature on commercial MOCVD GaN templates is the result of a significant reduction of the ‘defect density’ in RPCVD GaN material

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LOW DEFECT DENSITY RPCVD GAN
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BluGlass has made inroads towards proving the commercial potential of RPCVD

• Significant progress towards minimising impurities to within industry acceptable ranges

• The crystal quality is a dramatic improvement for RPCVD; and is largely due to the reduction of impurities incorporated into the GaN layer during growth

TEM IMAGE AT LOW MAGNIFICATION Cap layer RPCVD GaN Interface MOCVD GaN template

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Sapphire substrate
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CONTENTS
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� BLUGLASS OVERVIEW

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• Fast Facts

• Virtual Tour

• A Platform Technology

� THE LED OPPORTUNTITY

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• A Low Temperature Process

• Target Market Features

• Equipment Market

• THE SOLAR OPPORTUNITY

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• What is CPV

• Why InGaN CPV

• Why RPCVD for InGaN CPV

• Target Market Features

• ROADMAP and HIGHLIGHTS

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• Roadmap to Market

• Investment Highlights

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VIRTUAL TOUR
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FAST FACTS
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A PLATFORM TECHNOLOGY
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RPCVD TOOL
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LED OPPORTUNITY

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POTENTIAL VALUE PROPOSITION
OF A LOW TEMPERATURE PROCESS
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BLUGLASS TECHNOLOGY

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LOWER TEMPERATURE PROCESS

✓

✓

✓

✓

Low temperature process

Potential performance advantages

Low cost inputs

Substrate flexibility

A low temperature process offers manufacturers of LEDs significant advantages for both performance and cost

✓

High potential for scalability

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PERFORMANCE
ADVANTAGES FOR LED
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A low temperature growth system such as RPCVD offers LED manufacturers compelling performance advantages at several stages of device growth

LED STRUCTURE GROWN USING MOCVD

BENEFITS OF RPCVD GROWTH

p-GaN grown at high temperature

Multi-Quantum-Well InGaN layer, the ACTIVE REGION of an LED - grown at lower temperature

n-GaN grown at high temperature

The higher temperature growth of the p-GaN top layer can cause some of Indium to diffuse out of the active MQW layer and reduce the LEDs light performance. MOCVD cannot effectively grow quality p-GaN at lower temperatures RPCVD has great potential to improve device performance simply by growing a low temperature p-GaN layer which in turn improves the stability of the InGaN layer during fabrication

GaN grown at high temperature

Substrate

A second potential for RPCVD is the growth of high quality InGaN MQW layers at lower temperatures than MOCVD The RPCVD process could enable Indium rich MQW layers necessary for green LEDs and also for PV devices

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TARGET MARKET FEATURES
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�
BluGlass is targeting the high value / high margin
LED equipment market
�
Gross margin typically exceeds 45% of US$2-
2.5M/system purchase price
�
2 global MOCVD companies hold +95% of the
market - Veeco (US) and Aixtron (Germany)
�
The end market (LED lighting) is rapidly growing
�
The next growth opportunity is general illumination
�
Efficiency and cost are the remaining challenges for
the general lighting market
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Source: (Top Chart) B Riley and Co; (Bottom Chart) Strategies Unlimited

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WWW.BLUGLASS.COM.AU
MOCVD Units Shipped
LED Revenue $B
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EQUIPMENT MARKET SHARE
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The MOCVD market is highly concentrated and is currently dominated by two key players: Aixtron of Germany and Veeco of the USA

MARKET SHARES

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SOLAR OPPORTUNITY

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WHAT IS CONCENTRATED
PHOTOVOLTAICS?
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• Concentrated Photovoltaics (CPV) is currently the most effective way to capture and convert large amounts of solar energy

� It works by focusing the suns rays onto a small area of high efficiency solar cell material. The power generated is far greater than an ordinary solar cell

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WHY InGaN FOR CPV?
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RPCVD has great potential to grow high indium content InGaN when compared to MOCVD due

to its low temperature process

✓

High efficiency

→ Efficiencies over 50% possible

✓

BluGlass technology could be ideal for InGaN manufacture

→ → Low temperature High Indium% → possible Scalable process

Single material solution

✓

→ Simpler manufacture when compared to conventional multi-material solar cells

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WHY RPCVD FOR InGaN CPV?
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BLUGLASS TECHNOLOGY

✓

Low temperature process

✓

Performance advantages

✓

Low cost inputs

✓

Substrate flexibility

An InGaN solar cell can be tuned to absorb multiple wave lengths into the cell

InGaN is a single material solution with the potential to be tuned to capture a large spectrum of the solar radiation into a solar cell to achieve better than 50% solar energy conversion

✓

High potential for scalability

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TARGET MARKET FEATURES
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• CPV market growth 78% CAGR in target areas (areas with high solar radiation - greater than 6 direct nominal irradiance (DNI)

• Expected to reach >3GW by 2013

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CPV Market
Segment
3GW
Conventional
PV market
segments
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• Fastest growing solar market segment

• CPV is being recognised as the best way forward for cost effective, large scale renewable energy

Source: CPV Consortium (excludes space application portion of the market)

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ROADMAP AND HIGHLIGHTS

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ROADMAP TO MARKET
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INVESTMENT HIGHLIGHTS
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✓	Breakthrough Technology	� �	RPCVD developed in Australia from $35m research investment Significant government support through major grants and tax credits
✓	Significant Advantages	� � �	Superior performance potential for LED and PV devices Enabled through BluGlass’ unique low temperature technology Environmental and cost benefits
✓	Rapidly Growing End Markets	� �	LED Market growing at 30% p.a. to US$18bn+ by 2015 Concentrated PV market growing at 170% p.a. to 3GW by 2013
✓	Key Strategic Industry Alliance	�	BluGlass formed a JV with SPTS Technologies, a leading manufacturer of plasma etch and deposition and thermal processing equipment for the semiconductor industry
✓	Demonstrated Progress	� �	Achieved high quality crystalline GaN using low temperature RPCVD on commercial GaN templates Substantial reduction of chemical impurities
✓	Approaching Commercialisation	� �	Enhanced market access and de-risked technology Recent technology achievements provide basis for commercial discussions
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