BLUGLASS LIMITED — Investor Presentation 2014

Mar 12, 2014

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BLUGLASS INVESTOR PRESENTATION

GILES BOURNE, CEO MARCH 2014

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DISCLAIMER

• 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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LEDS & THE ENVIRONMENT

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

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TECHNOLOGY OVERVIEW

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BluGlass is developing equipment and processes to manufacture semiconductor devices such as LEDs, solar cells and power electronics based on GaN and related materials.

This process, called remote plasma chemical vapour deposition (RPCVD) has the potential to offer significant advantages over current manufacturing techniques.

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BUSINESS OVERVIEW

EST. 2006

ASX CODE: BLG

BOARD OF DIRECTORS

• George Venardos Chairman

• Dr. William Johnson (CEO, SPTS Technologies)

• Chandra Kantamneni

• Greg Cornelsen

MANAGEMENT TEAM

CEO Giles Bourne CTO/COO Dr. Ian Mann CFO Stuart Uhlhorn

MARKET CAPITALISATION

$46.7M

(As at 13 March 2014)

INTELLECTUAL PROPERTY

1 Provisional patent application

16 Pending patent applications 20 Internationally granted patents

6 Patent families

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AWARDS

2013 Australian Cleantech Competition winner Recipient of $13M+ in multiple Government grants

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OVERVIEW OF LED MARKET

MOCVD EQUIPMENT MARKET OVERVIEW

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MOCVD SALES 2010-2014E
$3.0bn
$2.5bn
$2.0bn 17% growth [. ]
$1.5bn
$1.0bn
$0.5bn
$0.0bn
2010 2011 2012 2013 2014
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SOURCE: Semiconductor Today, August 2013

Major MOCVD Market Competitors Aixtron (Germany) NASDAQ: AIXG Veeco (USA) NASDAQ: VECO

Average MOCVD System Price US $1-3M

Market Drivers

Rapidly growing LED market driven by uptake in general lighting

LED LIGHTING MARKET GROWTH

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14,000
Revenues ($millions)
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Revenues ($millions)
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LED Manufacturers (MOCVD System Customers) Phillips Lumileds (USA); Nichia (Japan), Osram (Germany); Epistar (Taiwan/China), Cree (USA)

Market Size: The Solid State Lighting market is projected to exceed US $13 B by 2017

SOURCE Chart and Data: Strategies Unlimited, January 2014

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OTHER MARKETS FOR RPCVD

GLOBAL CPV FORECAST (MW)

GaN POWER DEVICE FORECAST

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The Concentrated Photovoltaic (CPV) market is expected to grow to 1.36GW by 2020.

SOURCE: ABOVE: Chart and Data - IHS Inc. December 2013 RIGHT: Chart IMS Research 2012, Data - GaN Semiconductor Devices, Global Forecast and Analysis (2012-2022) by Markets and Markets

The power electronics market was worth US $20B in 2012. GaN use in power electronics was worth only $12.6m in 2012

The GaN power device market share is CAGR of ~71% over expected to grow at a 10 years to $1.75B by 2022

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RPCVD – MULTIPLE END MARKETS

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CRITICAL PATH TO MILESTONE

• The key advantage of RPCVD is GaN growth at significantly lower temperatures than the industry standard MOCVD

• BluGlass has grown RPCVD p-GaN films with electrical properties equivalent to industry standard MOCVD films

• The next step is to demonstrate better LED efficiency using RPCVD p-GaN proving that RPCVD can produce Brighter LEDs

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• The Brighter LEDs milestone is key to the commercialisation of the technology

• A number of paths to market are under consideration by the Company

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SIGNIFICANT PROGRESS

SEPTEMBER 2012

Awarded a key patent for depositing metal nitride films

DECEMBER 2012

$4.75m raised through Institutional Placement & Share Purchase Plan

JULY 2013

$2.99m awarded under the Clean Technology Innovation Program

OCTOBER 2012

Impurity levels equal to the industry standard process

DECEMBER 2012

Preliminary demonstration of p-GaN films using RPCVD

OCTOBER 2013

Australian Cleantech Competition – Overall winner 2013

NOVEMBER 2012

PROOF OF CONCEPT n-GaN films with electrical properties meeting industry benchmarks

FEBRUARY 2013

Successfully produced p-GaN films using RPCVD meeting industry performance benchmarks

NOVEMBER 2013

Commissioning of Thomas Swan MOCVD system

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THE LED

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BLUGLASS PRESENTATION – JUNE 2012
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THE LIMITATIONS OF TEMP GROWTH

MOCVD CHALLENGES

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High temperature process limits MQW performance (active region of LED) Uses ammonia as nitrogen source – produces toxic waste High temperatures limit use of large silicon substrates

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THE SOLUTION: TEMP RPCVD

RPCVD BENEFITS

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Low temperature process Potential performance advantages Lower cost inputs (nitrogen instead of ammonia) Substrate flexibility (sapphire, GaN and silicon) High potential for scalability

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BRIGHTER LEDS MILESTONE

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

Multi-Quantum-Well (MQW) InGaN layer, the ACTIVE REGION of an LED – 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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A HIGH GROWTH MARKET

JP Morgan expects the LED industry and its equipment suppliers to benefit from accelerating adoption of LEDs in general lighting from 2014.

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LED EQUIPMENT SPENDING
$3.0bn
$2.5bn
$2.0bn
17% growth [. ]
$1.5bn
$1.0bn
$0.5bn
$0.0bn
2010 2011 2012 2013 2014
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SOURCE: Semiconductor Today, August 2013

. . . driven by the rapid growth in demand for LED in the general lighting market

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LED LIGHTING MARKET GROWTH
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14,000
Revenues ($millions)
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SOURCE: Strategies Unlimited, January 2014

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SILVERWATER FACILITY

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

5[th] generation RPCVD system . R&D (7x2”)

Thomas Swan-1 MOCVD system – commissioned in Nov 2013 (19x2”)

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SILVERWATER FACILITY

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OTHER

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BLUGLASS PRESENTATION – JUNE 2012
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RPCVD FOR CPV (SOLAR) CONCENTRATED PHOTOVOLTAICS (CPV)

The RPCVD low temperature process has potential to grow higher indium content InGaN than MOCVD

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BLUGLASS TECHNOLOGY

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RPCVD technology should be ideal for InGaN devices

→ Low temperature → High indium content InGaN → Scalable process

Single material solution

→ InGaN layers with varying indium content makes a simpler device compared to conventional multi-material solar cells

InGaN CPV offers high efficiency → Efficiencies over 50% possible

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CPV MARKET OPPORTUNITY

GLOBAL CPV INSTALLATION FORECAST (MW)

The CPV market is expected to grow to 1.36GW by 2020 (IHS Inc). CPV continues to emerge as the most effective method to deliver large scale, cost effective renewable energy from the sun (Global Data).

SOURCE: Chart - IHS Inc. December 2013

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RPCVD FOR GaN ON SILICON

LED and power device manufacturers continue to look for ways to reduce cost

GaN growth on large silicon (Si) wafers present opportunities of scale and use of existing silicon processing lines

But thermal mismatch with MOCVD grown GaN on Si presents problems

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SOURCE: Chart - IHS Inc. December 2013
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THE RPCVD SOLUTION

• Low temperature RPCVD has the potential to reduce wafer bowing and prevent GaN film cracking, issues with MOCVD grown GaN on Si

• BluGlass is converting a 19 x 2” Thomas Swan MOCVD system into an RPCVD system which will be used in the development of RPCVD GaN on Si technology

• BluGlass plans to demonstrate RPCVD GaN deposition on up to 8 inch Si wafers

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POWER ELECTRONICS MARKET

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GaN POWER DEVICE FORECAST

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The GaN power electronics market is expected to grow at a CAGR of 63.78% over 10 years to $1.75B by 2022

The power electronics market was US $20B in 2012.

GaN use in power electronics is still in its infancy and had only $12.6m market share in 2012.

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

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

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FOUNDRY SERVICE MARKET

• Foundries grow specialty films for companies and/or R&D organisations

• BluGlass remains committed to commercialising RPCVD with its world class research lab and team

• BluGlass has multiple tools for producing niche products with MOCVD and soon RPCVD

• BluGlass will offer limited foundry work to begin building customer relationships and gain exposure to the greater GaN market space

• Incidental revenue will assist in core development programs, but main goal is market exposure

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FORWARD STRATEGY

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BLUGLASS PRESENTATION – JUNE 2012
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STRATEGY FOR THE COMING YEAR

TECHNOLOGY

Meet milestones, beginning with “Brighter LEDs” performance milestone

Accelerate R&D for GaN on silicon opportunity

Increase activity on CPV technology and milestones

MARKETS

Continue to focus on LED market as primary entry point

Evaluate other applications, such as GaN on Si for power devices

COMMERCIALISATION

Continue dialogue with LED market leaders and learn from limited foundry work

Prove the value proposition of RPCVD with Brighter LEDs milestone

Enter into commercialisation phase as and when appropriate

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INCREASING CAPACITY

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DEVELOPMENT ROADMAP

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Industry
Brighter LEDs Bring to Scale
Acceptance
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DEVELOPMENT ROADMAP

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

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BLUGLASS PRESENTATION – JUNE 2012
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