Outstanding quality Gallium Nitride (GaN) – enabler for new industries

1. Outstanding quality Gallium Nitride (GaN)– enabler for new industries Robert Dwilinski - President, CEO

2. AMMONO business field • Manufacturing of GaN (Gallium Nitride) semiconductor crystals and wafers • Based on own proprietary technology (unique in world’s scale) • Activity concerns three key enabling technologies; very closely interacting: • - Advanced materials • - Photonics • - High power electronics • Supplying already 24 customers – lasers, LEDs and electronics producers

3. AMMONO-GaN single-crystals

4. AMMONO-GaN wafers

5. Vertical LED structure on AMMONO-GaN Department of Micro and Nanosciences Aalto University School of Science and Technology Prof. Harri Lipsanen Prof. Markku Sopanen Dr. Sami Suihkonen M.Sc. Muhammad Ali M.Sc. Olli Svensk M.Sc. Sakari Sintonen

6. Green LD structure on AMMONO-GaN Lasing @ 524 nm (cw)

7. GaN laser applications

8. Versatile laser projection

9. „…The new Samsung Galaxy Beam phone includes a projectorthat can show films and pictures at up to 50”…

10. LEDs

11. LEDs

13. Electronic applications Gallium Nitride enables a new range of applications

14. Power Devices • GaN substrates show higher resistance and higher break down voltage parameters over traditional Si and SiC materials • Better heat dissipation • GaN mostly targets MOSFET, IGBT

15. GaN HEMTs market forecasts

17. Market environment and competition • Lack of GaN-on-GaN HEMTs on the market • Several companies produce HEMTs GaN-on-Si and GaN-on-SiC • No European producer of GaN HEMTs

18. GaN HEMTs – price analysis $ HEMTs GaN-on-SiC: • 15-20 W/mm2 • EUR 50-60 /mm2 • thus EUR 5-6 k /cm2 • GaN 2” (= 20 cm2) results in transistors worth 125 k EUR • GaN 4” (= 80 cm2) results in transistors worth 500 k EUR

19. Blue laser Green laser LED’s Devices based on Ammono-GaN Solar cells Transistors

20. Total addressable market The market for gallium nitride based semiconductor devices is projected to surpass $25B by 2015 Applications for Gallium Nitride: • DVD information storage (Blue laser Diodes) • Solid state lighting (White LEDs, UV LEDs) • Displays (Laser TV, laser projection) • Automotive electronics (MOSFET transistor, power switches) • Power transmission lines (High Voltage electronics, HEMT transistors) • Wireless communication (3G/WiMAXbase stations ) • Flame sensors (UV detectors) • Wireless Broadband (High Frequecy transistors) • Solar Cells (For satellites) • Radiation detectors

21. AMMONO as a company • Result of a project started in 1992 • World leader in low dislocation GaN • Proprietary patent protected technology • Located in suburbs of Warsaw / Poland • Nichia - minority stake holder • 1999 – Setting the AMMONO company • 2009 – Start of commercial activity • 2010 - First devices on AMMONO-GaN • 2012 – Launch of the 2” product

22. Autoclaves in the production hall

23. 2011 summary • ISO Certification • Increase in number of customers • Launch of a LED dedicated • high-transparency GaN material • Launch of the 2” product • Starting cooperation with distributorsin Japan, US, Korea and Taiwan. • 50% / 50% sales split between acedemia and industry • Launch of 2” mass production programme

24. Customer profile – sales volumes • Laser related R&D is the main driver for low dislocation gallium nitride wafers sales today

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26. 2012 Ammono development goals • Scaling up the production capacity for 2” C-plane • Building new autoclaves • Preparing necessary seed base • Bringing solutions for the LED market • Increasing the material transparency • Introducing the high-transparency 2” C-plane n-type substrate • Providing a solution for the electronic applications • Introducing the semi insulating 2” C-plane substrate • Starting the development of the 4” substrate • Targeting first samples for 2014

27. Difficulties • Traditional fund sources (VC, Stock Market, Strategic) are reluctant to invest in long-term, risky projects on the area of high technology (and advanced materials in particular). This phenomenon deepens within increasing technical complication of projects (technologies became more and more complicated), because this elongate project time frame and expose to unpredictable market risks • Let’s forget that market itself can develop such projects by organic growth • There is a need of efficient mechanism for growing such projects inEU

28. SUMMARY AMMONO products could revolutionize photonics and electronics industries and give competitive advantage to producers of customer goods, as well as advantage of defense systems Organic growth of nowadays advanced technologies is not possible any more – requires substantial investment, which is not achievable in today’s EU Proposed solution enabling growth of KETs is creation of European project of large credits or loan guaranties for carefully chosen companies presenting extremely promising technologies

29. Thank youQ&A

30. Solutions – new mechanisms • People facing problems to rise financing are trying to collect several projects in the following way: • Creation of parent company employing M&A, PR… specialists • Exchange of shares of parent company with several chosen hi-tech start-up companies • This would increase the value of the parent company because of larger scale of activity, synergy of incorporating companies (if any), and risk mitigation (even if some of them fail the others should keep value share on acceptable level) • Listing (IPO) of parent company on chosen Stock Market • In fact this is very difficult to collect a number of projects of similar maturityand scale, additionally offering significant synergies

31. Solutions – new mechanisms – Equity line of credit Additionally, listed company can get funds from equity line of credit: A structured equity line is a commitment by the investor to purchase up to a predetermined dollar amount of shares of the public company's common stock over a certain period. It is very similar to a bank line of credit in that cash is available to the company on an "as needed" basis. The difference is the company repays the investor in stock. The company has the right but not an obligation to "draw down" on the equity line and sells shares to the investor when it is most favorable for the company. When the company draws down the line, the shares are sold to the investor at a discount.

32. How to create efficient mechanism of growth of KETs in EU? • EU officials bear main responsibility for policy to efficiently grow KETs in EU • People engaged in KETs should propose solutions and demand decisions of EU officials • AMMONO proposal is that EU or EIB should offer long-term credits or guaranties for carefully chosen companies presenting extremely promising technologies but not able to get bank credits in required amount due to lack of sufficient collateral • Exercised mechanisms like the mentioned above should be analyzed and improved upon long-term performance of supported projects (carried by the group of experts created to this end)