Silex Systems
Investor Presentation
November 2012
Dr Michael Goldsworthy – CEO
© Silex Systems Limited 2012
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Forward Looking Statements
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Silex is a research and development Company whose assets include its proprietary rights in technologies, including but not limited to,
the SILEX technology, Solar Systems technology, Translucent technology and ChronoLogic technology. Several of the Company’s
technologies are in the development stage and have not been commercially deployed, and are therefore high-risk. Accordingly, the
statements in this presentation regarding the future of the Company’s technologies and commercial prospects are forward looking
and actual results could be materially different from those expressed or implied by such forward looking statements as a result of
various risk factors.
Some risk factors that could affect future results and commercial prospects include, but are not limited to, results from the uranium
enrichment development program, the demand for enriched uranium, the business risks associated with photovoltaic technology
development, manufacturing and marketing activities conducted by Solar Systems, the outcomes of the Company’s interests in the
development of various semiconductor, photonics and alternative energy technologies, the time taken to develop various
technologies, the development of competitive technologies, the potential for third party claims against the Company’s ownership of
Intellectual Property associated with its numerous technologies, the potential impact of government regulations or policies, and the
outcomes of various commercialisation strategies undertaken by the Company. Accordingly, the inclusion of forward looking
information in this presentation should not be regarded as a representation or warranty with respect to its accuracy or the accuracy of
the underlying estimates or assumptions or that Silex will achieve or is likely to achieve any particular results.
The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant
business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are
unknown to Silex. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.
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Disclaimer
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Silex Systems Ltd (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 and/or its various business activities. Except as required by law, no
representation or warranty, express or implied, is made by Silex as to the fairness, accuracy, completeness or correctness of the
information, opinions and conclusions contained in this document and discussed in the presentation, or as to the reasonableness of
any assumption contained in this presentation. By receiving or viewing this presentation and to the extent permitted by law, you
release Silex and its directors, officers, employees, agents and affiliates from any liability (including, without limitation, in respect of
direct, indirect or consequential loss or damage or loss or damage, arising by negligence) arising as a result of the reliance by you
any other person on anything contained in or omitted from this presentation.
This presentation should be read in conjunction with other disclosures that have been lodged by the company with the Australian
Stock Exchange.
No responsibility is accepted by Silex or any of its directors, officers, employees, agents or affiliates, nor any other person, for any of
the information contained in this document and discussed in the presentation or for any action taken by you on the basis of the
information or opinions expressed in the course of this presentation. This presentation does not constitute investment, legal, taxation
or other advice and the presentation does not take into account your investment objectives, financial situation nor particular needs.
You are responsible for forming your own opinions and conclusions on such matters and should make your own independent
assessment of the information contained in this document and discussed in the presentation and seek independent professional
advice in relation to such information and any action taken on the basis of the information.
This document is not a product disclosure statement or prospectus for the purposes of the Australian Corporations Act 2001 and does
not constitute an offer, invitation, solicitation or recommendation in relation to the subscription, purchase or sale of shares or other
securities in any jurisdiction, including in the United States or to any U.S. person, and neither this document nor anything in it shall
form the basis of any contract or commitment. Securities may not be offered or sold in the United States, or to or for the account of
any U.S. person, unless the securities have been registered under the U.S. Securities Act of 1933 or an exemption from registration is
available.
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Corporate Overview
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• Silex Systems Limited is an ASX-listed company focussed on development and commercialisation of technologies across three platforms:
• Nuclear Energy
• Solar Energy
• Advanced Materials & Instrumentation
Company Description
ASX Ticker: SLX
Market Capitalisation: ~$600 million (November 2012)
Shares on Issue: 170.2 million (November 2012)
• XAO – All Ords
• XSO – S&P / ASX Small Ords
• XKO – S&P / ASX 300
Index Inclusion
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Businesses
© Silex Systems Limited 2012
Silex Systems
Third generation laser
uranium enrichment for nuclear power
Solar Systems
Utility Scale Concentrating PV power generation
Translucent
Game changing semiconductor and LED
substrate materials
Chronologic
Precision instrumentation via distributed ‘USB-in
SyncTM‘ platform
Technology Commercialisation
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Section 2
SILEX Uranium Enrichment Technology
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Uranium Enrichment
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Mine uranium
Convert to UF6
Enrich uranium
Fabricate fuel
Use in reactor
Produce electricity
Uranium Enrichment
• Uranium must be enriched to work as fuel in a nuclear reactor
• Process to enrich U235 isotope from 0.7% to ~5%
Uranium Enrichment Processes
• Gas Diffusion – first generation, obsolescent
• Centrifuge – second generation, primary competition
• Lasers – third generation, SILEX unchallenged
Advantages of Laser Enrichment
• Significantly more efficient - uses less energy
• Smaller footprint than centrifuge and diffusion
• Lowest capital costs of all enrichment technologies
SILEX Technology
• The only third generation laser based technology being
commercialised in the world.
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Commercialisation and License Agreement
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© Silex Systems Limited 2012
Global Laser
Enrichment (GLE)
51% 25% 24%
Exclusive Worldwide
Commercialisation and
License Agreement
Exclusive Agreement
• Exclusive worldwide commercialisation and license
agreement for SILEX Uranium Enrichment Technology
• Agreement originally with GE signed in 2006
Next Milestone Payments
• USD 15 million due upon successful completion of Test
Loop program & NRC licensing of initial commercial plant
• USD 20 million due upon licensing / completion of the Lead
Cascade (initial commercial module)
Perpetual Royalty
• Perpetual royalty based on GLE revenues
• Royalty range of 7% to 12%
• Royalty range dependent on defined calculation for capital
costs per unit of enrichment capacity deployed
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Approach to Commercialisation
GLE’s phased approach to commercialisation
• Completion of the Test Loop Program
• Construction of an initial commercial production module
• Construction of a full-scale commercial production facility
GLE’s commercial focus
• GLE targeting a production capacity of up to 6 million SWU
(enrichment production units) for initial commercial facility
• Preliminary Marketing of Laser Enrichment Services underway
• Letters of Intent signed with US nuclear power utilities Exelon,
Entergy and TVA
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GLE Commercial Facility - NRC Licence
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Commercial Facility Licence
•US Nuclear Regulatory Commission (NRC) responsible for
evaluating combined construction and operating license
•Construction and operating license application submitted to NRC in
July 2009 for the first proposed plant in Wilmington, North Carolina.
NRC Issued the Commercial Plant Licence on 25th September 2012
•First ever license for a laser enrichment plant in the world!
•GLE can proceed to construct the first planned commercial plant - a
decision on these plans is likely in 2013.
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Nuclear Energy in the United States
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© Silex Systems Limited 2012
Source: Nuclear Energy Institute
104 nuclear reactors in 31 states
Nuclear 19%
Electricity generation by fuel type
Coal Gas Nuclear Hydro Renewables Oil
Source: Global Energy Decisions / Energy Information Administration
Current Reactors
• 104 nuclear reactors operating in 31 states
• ~27% of global nuclear energy capacity is in the US
• ~20% of electricity in the US is generated from nuclear energy
• Nuclear energy is the lowest cost producer of base load electricity Future Developments
• NRC recently approved the construction and operating licenses
for 2 new nuclear power plants in Georgia and 2 new units in
South Carolina.
• ~30 new plants under consideration or planning
• Electricity demand will increase 25% by 2030
• Up to 300 new power plants could be required by 2030
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Nuclear Energy Worldwide
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Proposed nuclear reactors
Source: World Nuclear Association and Shaw
Global Issues
• Energy security and Climate Change are key concerns
of Governments and Utilities around the world
• Nuclear ‘renaissance’ to continue despite short-term
impact of the Fukushima event
Global Nuclear Capacity to Increase
• Potential increase in nuclear capacity from 434 plants
today to ~1000 plants over next 2 decades:
• 2012: 373 GWe
• 2030: 1,000 GWe (WNA estimate)
Uranium Enrichment Market
• 2012: ~$7 billion per annum
• 2030: ~$20 billion per annum (estimate)
15 percent of global electricity
434 operating reactors
64 new plants under construction
160 plants planned
323 plants proposed
Key Statistics
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© Silex Systems Limited 2012
Section 3
Solar Systems CPV Dish Technology and Utility Scale Projects
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Cutting-Edge Solar Technology – developed in Victoria, Australia
• Silex Systems invested in March 2010.
• Core technology underwent major redesign – completed September 2012.
• Manufacturing facility modified and commissioned – now in production. For
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Technology Background
Installation Location Capacity Dishes
Bridgewater Vic, Australia 600kW 16
Hermannsburg NT, Australia 190 kW 8
Yuendumu NT, Australia 240 kW 10
Lajamanu NT, Australia 290 kW 12
Windorah Qld, Australia 175 kW 5
Total 1,495 kW 51
Yeundumu Solar Facility
Hermannsburg Solar Facility
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Key Highlights
• Multi-junction cells introduced 2005 – from space/satellite industry.
• Current efficiency >40% (~ 2x efficiency of silicon cells, ~ 4x
efficiency of thin film cells) with roadmap to >50% efficiency
• Solar Systems unique dense array format with active cooling –
maximum power output and potentially longer lifetime
• Reliable, integrated, manageable power stations
• 5 power plants installed in three states
• Over 100 dish years of experience accumulated
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Product Commercialisation Plan – 2010 to 2015
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Phases & Funding Contributions
•Phase 1 – Product Commercialisation Program: completed September 2012.
o Product Release Milestone: completed June 2012. Involved completion
of the Dense Array Dish Test System – 16 units installed at Bridgewater.
o Funding Contribution: Victorian Government $5 million.
•Phase 2 – Pilot Demonstration Facilities: work ongoing
o Mildura Stage 1: 1.5MW facility (40 Dish units) under construction.
Completion expected mid 2012.
o Funding Contribution: Victorian Government $10 million
o Nofa, Saudi Arabia (under construction) and Beaumont, USA (2013)
• Phase 3 – Commercial Projects: Global deployment of utility scale projects
o Mildura Stage 2: 100MW power station – construction planned 2014-15
o Funding Contributions: Federal Government $75 million and Victorian
Government $35 million.
o Ongoing deployment of global CPV project opportunities.
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Economic Validation – LCOE
• Economics driven by efficiencies and
volume production
• Key cost metric: LCOE Capex +
Energy Yield + O&M + Finance
Current Development Pipeline
Project Location Capacity Dishes Planning Construction
Commencement
Expected
Completion
Mildura (Stage 1) Victoria, Australia 1.5 MW 40 Completed Q2 FY 2012 Q4 FY 2013
Mildura (Stage 2) Victoria, Australia 100 MW ~ 3,000 Underway FY 2014 (est.) TBA
Nofa Tibrak, Saudi Arabia 1 MW 28 Completed Q1 FY 2013 Q3 FY 2013
Beaumont California, USA Up to 1 MW 28 Underway Q1 FY 2014 (est.) Q2 FY 2014
Total Up to 104 MW ~ 3,096
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Direct Normal Irradiance
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Bridgewater Test & Demonstration Facility
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Bridgewater Test and Demonstration Facility
Commissioned in June 2012
• Largest concentrating photovoltaic power station in Australia
• 16 unit - 600 kW testing and demonstration facility
• Real time data logging, reliability and performance testing
• Will enable quick implementation of further technology
improvements to reduce electricity costs (LCOE)
• Grid connected, with first commercial power purchase
agreement (PPA) signed with Diamond Energy
• Officially opened 28 June 2012
Additional Testing at Bridgewater
• 12 Mini-Dishes installed (concentration up to 1,000 suns)
• Heliostat Power Tower (2nd generation technology) under development
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Mildura Stage 1
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Mildura (Stage 1): Plans
Mildura (Stage 1): Construction Works
2011 – 2013: Construction Phase
• 1.5MWDC CPV grid connected power plant (40 dish units)
• Permits and approvals completed
• Transmission Connection Agreement signed with Powercor
• Site works commenced in Q4 2011
• Expected completion in first half of 2013
• Funding contribution of $10 million from Victorian Government
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Mildura Stage 2 – 100MW Solar Power Station
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Artist impression: Mildura (Stage 2)
2012 – 2013: Planning & Preparation Activities
• Final design for Stage 2 modular CPV power arrays
• Evaluation of connection point to nearby grid line
• Preliminary partner discussions (financing, construction,
connection & transmission)
• Power purchase agreement negotiations
• EPC tender process
• Commencement of construction expected in 2014
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© Silex Systems Limited 2012
Bridgewater
CPV Facility
Hervey Bay
Hospital PV System
Peak Power (@ module) ~ 600kWDC ~ 270kWDC
Total Area (system) 2,000m2 1,670m2
Total Module Area 4m2 1,670m2
Concentration 500 x (future 1000 x) 1 x
Power Density (@ module) ~ 150,000 W/m2 ~ 160 W/m2
Cell Type III-V Multi-Junction Mono-Silicon
Cell Efficiency ~ 40% ( 50+% future) ~ 18% ( 20+% future)
Energy Yield (Location dependent)
1.5 ~ 1.8
(dual axis tracking)
1.0
(fixed mount)
LCOE (Current range) 15 ~ 20c / kWhr 20 ~ 25c / kWhr
LCOE (Future potential) < 10c / kWhr ~15c / kWhr
CPV vs PV – Basic Comparison
(All figures are estimates for discussion purposes only, sourced from various industry references and
internal information. Note – this table does not include all data relevant to the comparison as presented.)
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Section 4
Translucent
Advanced Materials Technology
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Rare Earth Oxide (REO) – Platform Technology
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Key Benefits
• Several industries forced to use high-cost non-silicon substrates (eg
Germanium, Sapphire and Silicon Carbide) for high-end applications
• Translucent’s innovative REO platform could enable use of large low-
cost silicon wafers
• Overcomes traditional barriers (wafer bowing and cracking) in the
transition to silicon wafers
Applications
• LED Lighting substrates
• Power Electronics devices
• CPV Solar cell substrates
Basic REO substrate structure
$300m
$500m
$500m
LED Lighting substrates
Power Electronics devices
Solar CPV substrates
Total Accessible Market $1.3 billion
* Estimates based on industry information (CPV Consortium,
Yole, OIDA Research, Electronicast, LEDSTAR) and internal
information.
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Technology Applications
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© Silex Systems Limited 2012
LED Lighting
• Lowers cost compared to sapphire wafers
• Improves performance
• Rare earth oxide enables engineered low-bow wafers and excellent LED mirror layers
Power Electronics
• Lowers cost compared to sapphire wafers
• Improves performance
• Rare earth oxide enables engineered low-bow wafers
Solar CPV • Lowers cost compared to
germanium wafers
• Improves performance
• Novel MJ (multi-junction) layers 50% + efficiency target
Lowers cost, improves performance
Silicon
cREOTM
MJ Layers
Silicon
cREOTM
GaN
Silicon
cREOTM
GaN
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© Silex Systems Limited 2012
LED Lighting
•Engaged with customers in USA and Asia
•Strong demand to test Mirrored-Si™ wafers for LED fabrication
•Initial commercial orders for sample evaluations (up to 150mm wafers)
•Work continues for the development of 200mm wafers
Power Electronics
•Engaged with customers in USA, Europe and Asia
•Strong interest for 100mm and 150mm vGaN™ wafers for FET device fabrication
•Repeat commercial orders for sample evaluations of vGaN™ wafers
•Higher margin vFET™ wafers being prepared for evaluation
•Work continues for the development of 150mm vGaN™ and vFET™ wafers
CPV Solar Cells
•Initial engagement with customers in USA, Europe and Asia
•Project has received $2m grant funding from Australian Solar Institute (ASI)
•Second Milestone – CVD production reactor – almost completed
•Project partner Solar Systems will benefit directly from this key project.
Translucent REO wafers
Commercial Progress
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Section 5
ChronoLogic
Instrumentation Technology
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Business Development Opportunities
• Chronologic has embarked on an exhaustive process to
secure appropriate strategic partners
• Strong interest from potential global commercial partners
• Discussions with commercial companies regarding potential
divestment strategy ongoing
Core IP
• Core USB-inSync™ IP has spawned 17 patent families –
expected to generate over 40 individual patents
• 10 key patents so far granted in the USA, Europe, Australia,
India and Canada
• Additional multi-patent applications filed and pending
Product Markets
• Data Acquisition
• Test & Measurement
• Precision Timing Market
Chronologic
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Thank you
© Silex Systems Limited 2012 © Silex Systems Limited 2012
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