Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (December 2006)
49 slides from Silex Systems's shareholder meeting presentation, Dec 1, 2006
Slide 1: Annual General Meeting 1 December 2006
Silex SYSTEMS LIMITED Annual General Meeting 1 December 2006 AGM Presentation 011206
Slide 2: Forward Looking Statements
Silex Systems Limited FORWARD LOOKING STATEMENTS Silex is a research and development Company whose assets are its proprietary rights in technologies, including, but not limited to, the SILEX technology, Translucent technology and Fiberbyte technology. In general, the Company’s technologies are in th
Slide 3: Disclaimer
Silex Systems Limited DISCLAIMER • Silex has prepared this presentation based on information available to it. The information in this presentation does not purport to be a complete description of Silex. Except as required by law, no representation or warranty, express or implied, is made by Silex as
Slide 4: Mission
MISSION OUR MISSION : To become a world leader in technology innovation for: 1) Alternative Energy Technologies ¾ Nuclear Energy ¾ Solar Energy ¾ Thermoelectric Energy 2) Advanced Semiconductor materials ¾ Optical Silicon / Photonics ¾ Silicon-on-Insulator (SOI) substrates ¾ ‘High-k’ dielectric mate
Slide 5: Technology
TECHNOLOGY OUR TECHNOLOGY – in summary: Based on two sets of advanced materials ¾ Isotopically engineered materials (SILEX Technology) ¾ Band-gap engineered materials (Translucent Technology) Applied to two industries – ¾ Alternative Energy (Uranium Enrichment, Solar Energy, Thermoelectric Power) ¾
Slide 6: Alternative Energy Technologies
1) ALTERNATIVE ENERGY TECHNOLOGIES • The SILEX Technology – Uranium Enrichment • Translucent Solar Energy Technology • Translucent Thermoelectric Power Technology 2006 6
Slide 7: The SILEX Technology
The SILEX Technology What is the SILEX Technology? • Separation of Isotopes using Laser EXcitation. • Changing ‘isotopic’ composition of elements (enrichment) creates new ultra-pure materials with unique qualities. • Isotopes are different forms of the same element (different U238 - 3 extra number o
Slide 8: Nuclear Power
Nuclear Power A Global Nuclear Power Renaissance is Underway: Currently 17% of world’s electricity supplied by nuclear power 440+ reactors currently operating (103 in the USA) 70+ being built / planned + accelerated development in Asia No greenhouse gas emissions → minimal expected impact on
Slide 9: SILEX Uranium Enrichment
SILEX Uranium Enrichment ¾ Uranium Enrichment - a key part of the Nuclear Fuel Industry 2006 9
Slide 10: The Nuclear Fuel Industry
The Nuclear Fuel Industry Nuclear Fuel Economics(*): Nuclear fuel costs ~30% of total operating costs of nuclear power. Nuclear fuel costs - approximate breakdown: Uranium Ore ~ 40% UF6 Conversion ~ 5% Enrichment ~ 40% Fuel Fabrication ~ 15% If uranium prices go up – demand on enrichment incre
Slide 11: Uranium Enrichment Market Outlook
Uranium Enrichment Market Outlook Enrichment Demand Scenarios Source: The Global Nuclear Fuel Market, WNA, 2005 2006 11
Slide 12: Uranium Enrichment Market Outlook
Uranium Enrichment Market Outlook • Supply and Demand currently in balance • Potential supply issues beyond 2013: – HEU Agreement terminates – US & French diffusion plants shut down. • Three new centrifuge plants to be built – Urenco centrifuge in France (Areva) and US (NEF) – American Centrifuge (U
Slide 13: SILEX v Existing Technologies
SILEX v Existing Technologies SILEX CENTRIFUGE GAS DIFFUSION DEVELOPED 2000’s 1940’s 1940’s Laser Excitation Mechanical Mechanical PROCESS (‘centrifugal force’) (‘brute force’) ENRICHMENT EFFICIENCY 2 to 20(1) 1.3 1.004 COST COMPARISON Potentially Attractive Capital Intensive Very expensive % OF EXI
Slide 14: Commercialisation and License Agreement with General Electric
Silex Signs Commercialisation and License Agreement with General Electric Company for the SILEX Uranium Enrichment Technology 22 May 2006 US Government Authorisation Received 3 October, 2006 2006 14
Slide 15: The GE – SILEX Agreement
The GE – SILEX Agreement • Exclusive Worldwide Commercialisation and License Agreement for the SILEX Uranium Enrichment Technology. • Joint Technology Development Program – funded by GE. • Initial payment US$5M received 24 June, 2006 following preliminary US Government Approval. • Initial closing pa
Slide 16: SILEX Technology Development Program
1. SILEX Technology Development Program • Phased Development Program - jointly conducted - GE funded. • Test Loop - demonstrate performance of engineering-scale SILEX Process equipment - assess the economics of the SILEX Technology. - activities in Sydney (initially) and the USA (Wilmington NC) - ap
Slide 17: Translucent Inc.
Translucent Inc. Advanced Materials for: ¾ Alternative Energy Technologies ¾ Semiconductor and Photonics 2006 17
Slide 18: Translucent – Company Information
Translucent – Company Information • Founded in 2001 (initial investment by Silex Systems) • Company is ~70% owned by Silex. • Focused on silicon-based materials development for: 1. Optical / photonics applications 2. Advanced semiconductor applications 3. Ultra-High Efficiency Solar Energy Cells 4.
Slide 19: Material Development, Device Fabrication and Characterization Facility
Complete Material Development , Device Fabrication and Characterization Facility (Palo Alto, USA) 2006 19
Slide 20: Translucent Technology Evolution
lp Silex Systems H TRANSLUCENT Translucent Technology Evolution 2001 2002 2003 2004 2005 2006 2007 2008 Start-up: Build: R&D: R&D: R&D: R&D: Commercialisation Silex Lab & Develop Optical Silicon materials Solar Cell and Activities Funding Facilities material for © andAdvanced development Thermoelect
Slide 21: Translucent Solar Energy Technology
Translucent Solar Energy Technology Ultra-High Efficiency Solar Energy Cells Via A Novel set of Photonic Materials 2006 21
Slide 22: Translucent Solar Cell Technology
Translucent Solar Cell Technology • Patent application for Ultra-High Efficiency Solar Energy Cell filed June 5th, ’06. Three more filings for Solar Cells since. • Directly evolved from Optical Silicon/Photonics project (foundation technology) – similar materials and fabrication process. • Transluce
Slide 23: Translucent Solar Cell Technology cont'd
Translucent Solar Cell Technology cont’d…. • Project in early stage – subject to development risks. • Based on ‘core materials technology’ utilising thin active-layer semiconductor films on glass substrates. • R&D effort at Translucent to focus on optimising the thin semiconductor films for maximum
Slide 24: Spectral Composition of Solar Radiation
SPECTRAL COMPOSITION OF SOLAR RADIATION & USEFUL SOLAR CELL OPTICAL RANGES 1600 Spectral Variance (Wm-2µm-1) Solar Spectrum (IEC/ASTM/ISO Global) 1400 1200 Silicon Conventional Solar cells 1000 (Single Junction) 800 Ideal Solar Technology 600 (Multiple Junctions) 400 200 Tunable Band Gap Semiconduct
Slide 25: Translucent Thermoelectric Power Technology
Translucent Thermoelectric Power Technology A potential breakthrough in Alternative Energy Via A Novel set of Semiconductor Materials 2006 25
Slide 26: Conventional Thermoelectric Technology
Translucent Thermoelectric Power Technology Conventional Thermoelectric Technology: ¾ Direct conversion of thermal energy (heat) into electrical energy. ¾ Established in the 1950’s – modest progress since. ¾ Limited performance and scalability - materials constraints. niche applications - space pr
Slide 27: Translucent Thermoelectric Technology
Translucent Thermoelectric Power Technology Translucent Thermoelectric Technology: ¾ Evolved from semiconductor materials project ¾ Innovation based on: A novel set of semiconductor materials ‘Band-gap engineered’ multilayer junctions Potentially higher conversion efficiencies Scalable plana
Slide 28: Potential Smaller-Scale Thermoelectric Device Applications
Potential Smaller-Scale Thermoelectric Device Applications APPLICATION POTENTIAL BENEFIT 1. Car Exhaust waste heat recovery More efficiency (hybrid electrical) cars 2. Semiconductor chip heat removal and Peltier cooling and lap-top battery life energy recovery extension 3. Residential/Industrial was
Slide 29: Thermoelectric Power Scenarios
fp Silex Systems I TRANSLUCENT Thermoelectric Power Scenarios a) Conventional Thermal Power Plant Heat Source Turbines Generator Electricity to Consumers ~65% Waste Heat ~35% Conversion efficiency to electric power
Slide 30: Thermoelectric Power Scenarios
fp Silex Systems I TRANSLUCENT Thermoelectric Power Scenarios b) Complementary Thermal / Thermoelectric Power Generation Translucent Thermoelectric Converter Blanket L, Turbines Generator Heat Conventional Source NS Thermal Electricity to J Consumers == Direct T Thermoelectric Less Waste Heat Higher
Slide 31: Thermoelectric Power Scenarios
fp Silex Systems i TRANSLUCENT Thermoelectric Power Scenarios + Electricity to Consumers Minimum Waste Heat Maximum Conversion efficiency (to be determined)
Slide 32: Advanced Semiconductor Materials
Advanced Semiconductor Materials ¾Optical Silicon ¾SOI and high-k Substrates ¾Enriched Silicon Wafers 2006 32
Slide 33: Optical Silicon – Photonics
Optical Silicon – Photonics via Novel CMOS Fab – compatible materials 2006 33
Slide 34: The Quest for Optical Silicon continues
The Quest for ‘Optical Silicon’ continues…. • Translucent is a leading contender – Multi-billion dollar photonics market. – Key Issue is integration of photonics and electronics in silicon. – Specific Objectives: - a ‘true’ silicon laser (CMOS Fab-compatible) - silicon optical interconnects – DARPA
Slide 35: Market Positioning for Optical Silicon Development
Market Positioning for Optical Silicon Development at Translucent Current Technology Example of Proposed Ultimate Objective Interim Solution Expensive discrete Expensive discrete components Fully Integrated ULSI components linked integrated on a common platform (all-silicon based materials) by optic
Slide 36: Advanced Semiconductor Materials
Advanced Semiconductor Materials ¾ Silicon-on-Insulator (SOI) Substrates ¾ Germanium-on-Insulator (GOI) Substrates ¾ ‘High-k’ Dielectric Materials ¾ Other Advanced Semiconductor Substrates 2006 36
Slide 37: Moore's Law
Moore’s Law (An Approximation) 1010 109 Moore’s 1975 Prediction 10 8 Transistors Per Die 107 106 Memory “Actual” 10 5 104 Actual Microprocessor “Actual” 103 102 101 100 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2006 37
Slide 38: Equivalent Scaling
Equivalent Scaling • Feature size reduction as a method to increase device density and performance is no longer sufficient • Equivalent Scaling refers to both a reduction in size AND the use of novel materials (either silicon based or fully compatible) and new device designs • Examples of such new m
Slide 39: Continuation of Moore's Law
Continuation of Moore’s Law 1010 “Geometric Scaling” “Equivalent 109 Scaling” 108 Transistors Per Die 107 106 105 104 103 102 101 100 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2006 39
Slide 40: Semiconductors - Summary
Semiconductors - Summary • The semiconductor market has a clear requirement for new materials-based solutions compatible with today’s silicon industry, to maintain the rate of projected progress (Moore’s Law) • Translucent’s work on Optical Silicon has focused on a silicon-based materials solution w
Slide 41: Target Timeline: Translucent Project Activities
Target Timeline* Translucent Project Activities Early ’07 • Expected commercial validation of first advanced semiconductor materials application. Mid ’07 • Expected commercial validation of solar cell prototypes Q3 ’07 • Commence Solar Cell Pilot Line construction (subject to above validation) Late
Slide 42: Risk Factors
Risk Factors • Our technologies are yet to achieve successful commercialisation. • Risk factors that may adversely affect commercial prospects include (but are not limited to): – Negative results in the various technology development projects. – Delays in development projects. – Cost overruns in dev
Slide 43: Summary
Summary • OUR TECHNOLOGY – in summary: • Based on two sets of advanced materials – Isotopically engineered materials (SILEX Technology) – Band-gap engineered materials (Translucent Technology) • Applied to two industries – – Alternative Energy (Uranium Enrichment, Solar Energy, Thermoelectric Power)
Slide 44: Silex Summary
Silex Summary A unique company developing technology and advanced materials for the 21st Century. 2006 44
Slide 45: Resolution 1: Re-election of Mr Peter Campbell
Resolution 1: This resolution is to re-elect Mr Peter Campbell as a Director of the Company and reads as follows: “THAT Mr Peter Campbell who has held office as a Director for over three years and retires in accordance with the Articles of Association of the Company, be re-elected as a Director of t
Slide 46: Resolution 2: Adopt the Remuneration Report
Resolution 2: This resolution is to adopt the Remuneration Report. This vote is advisory only and does not bind the Company or its directors and reads as follows: “THAT the remuneration report for the year ended 30 June 2006 be adopted”. The Proxy result for this resolution is: FOR 21,475,244 AGAINS
Slide 47: Resolution 3: Increase non-executive directors' remuneration
Resolution 3: This resolution is to increase the aggregate amount of non-executive directors’ remuneration and reads as follows: “THAT the aggregate remuneration for Directors (other than the Managing Director or an Executive Director) of the Company be increased by $110,000, so that the aggregate a
Slide 48: Resolution 4: Ratify share options to Dr Michael Goldsworthy
Resolution 4: This resolution is to ratify the issue of share options to Dr Michael Goldsworthy and reads as follows: “THAT in accordance with the requirements of Listing Rule 10.11 of the Australian Stock Exchange Limited, the shareholders ratify: (a) the granting to Dr Michael Goldsworthy (Managin
Slide 49: Resolution 5: Ratify share options to Mr Chris Wilks
Resolution 5: This resolution is to ratify the issue of share options to Mr Chris Wilks and reads as follows: “THAT in accordance with the requirements of Listing Rule 10.11 of the Australian Stock Exchange Limited, the shareholders ratify: (a) the granting to Mr Chris Wilks (Director - Corporate) o