Strategic Elements Ltd

ABN 47 122 437 503

Suite 6/27 Railway Road

Subiaco WA 6008

Australia

Phone: +61 8 9278 2788

Fax: +61 8 9288 4400

admin@strategicelements.com.au

16 May 2016

Company Announcements Office

Australian Securities Exchange

20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

PRINTED ELECTRONICS SECTOR

Please find an attached presentation from the Company in relation to its activities in the Printed

Electronics sector.

Strategic Elements Ltd

Phone: +61 8 9278 2788

Fax: +61 8 9288 4400

admin@strategicelements.com.au

www.strategicelements.com.au

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printed electronics industry ASX:SOR  

The global interest in the technology is booming… Almost every sector of our economy already is or will be affected, if not revolutionized, by printed electronics….

ORGANIC AND PRINTED ELECTRONICS 29

The wafer level technology includes batch pro-cessing, typically film substrates on a carrier. An adapted semiconductor line is used for process-ing. High resolution can be achieved by vacuum deposition and/or spin coating followed by pho-tolithography and wet or dry etching. The pro-duction cost is relatively high and the process is not compatible for conversion to in-line sheet to sheet or reel-to-reel processes.

Under hybrid technologies, we summarize com-binations of processes including large area pho-tolithography, screen printing or printed circuit board (PCB) technologies that make use of flexi-ble substrates (e.g. polymer films or paper). Depo-sition of materials happens by spin coating, blade coating or large area vacuum deposition, in some cases also partly by printing. Ink-jet print-ing and laser patterning are further technologies that are grouped in the hybrids and enable pro-duction at a medium cost level. At the moment hybrid appears to be possibly the most promising technology for further market penetration in the next few years, and it could also be combined with some amount of silicon for specific func-tions in hybrid systems.

Fully printed means continuous, automated mass-production compatible printing and coat-ing techniques (flexo, gravure, offset, slot-die,

from a large area unpatterned film, while others are additive, i. e. they only deposit material where it is wanted, e.g. by fusing a shadow mask.

There are no single standard processes in exist-ence today. Deciding which printing or other pat-terning process is used depends on the specific requirements of a particular device. In general, different processes have to be used for subse-quent steps of a multilayer device in order to optimize each process step. In an integrated product there may also be some steps in which printing processes are used at standard levels, e.g. for graphics or adhesives, and other critical ones where the highest quality standards need to be applied, e.g. for functional layers and small features. The above mentioned processes differ strongly with regard to, e.g., resolution and throughput and the feature size and throughput for some important processes at the highest quality level are shown in Figure 20.

Process Technology LevelsThe technologies that are used in organic elec-tronics range from batch, clean-room, etching based processes to mass printing processes that are capable of deposition of square meters of substrates per second. Here is a rough classifica-tion of the technologies in three different tech-nology levels:

Figure 21: Reel-to-reel printing of electronic devices. (Source: OE-A)

LOPEC is the industry event for printed electronics that success-fully combines technology and business. As a leading inter- national platform, LOPEC gives participants a broad overview of everything that this technology has to offer—from applications to research. It unites, inspires and realizes. Today and tomorrow. LOPEC makes printed electronics a stimulating experience.

The LOPEC conference compliments the exhibition perfectly and is the world’s leading conference for printed electronics. Care- fully chosen speakers present the latest applications, current busi- ness models and recent research results. A transfer of know- ledge at its finest.

Exhibitors and visitors give LOPEC and its content outstanding ratings. The results of our participant survey are available here: lopec.com/participantsurvey

LOPEC—the success story

133 exhibitors from 19 countries

More than 2,300 visitors from 42 countries

199 conference presentations from 28 countries

96% of participants feel that LOPEC’s importance is stable and/or growing.

Performance figures for LOPEC 2015:

Application sectors for printed electronics

Automotive

Lighting

Printing and graphic arts

Energy

Building and architecture

Logistics

Medical and pharmaceutical

Textiles

Consumer electronics

Packaging

White goods

2

Conveniently order your ticket to LOPEC 2016 online: lopec.com/tickets

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SOR  recently  announced  an  intended  expansion  of  its  involvement  in  the  Printed  and  Flexible  Electronics  sector.  

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Why is this very good timing ?...

1.  Both  poliAcal  parAes  have  announced  a  surge  in  innovaAon  funding  and  benefits  for  innovaAve  sectors.  

2.  SOR  has  an  extra  advantage  of  being  a  Pooled  Development  Fund  with  generous  tax  concession  for  our  shareholders.  

3.  Global  Printed  Electronics  sector  being  ignored  by  Australian  industry.  F

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Surging  na-onal  focus  on  innova-on  in  Australia…  n  AddiAonal  $1.1b  in  new  funding  

n  R&D  Tax  IncenAve  Program  

n  Australian  Research  Council  funding  

n  Tax  incenAves  for  investors  

n  Tax  breaks  for  start-­‐ups  

n  $127m  of  University  collaboraAon  

n  $200  funding  for  CSIRO  for  Uni  start-­‐ups  

However SOR has access to one more Federal Government benefit that provides

a significant advantage over other ASX listed companies….

SOR  will  leverage  these  new  programs  to  benefit    

shareholders…  

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§  SOR  operates  under  the  Pooled  Development  Fund  program,  an  Australian  Federal  Government  program  designed  to  increase  investment  in  Australian  SME’s.  

§  Designed  by  Federal  Government  to  in  part  drive  investment  into  Australian  innovaAon.  

§  Under  this  Ausindustry  Venture  Capital  Program  our  shareholders  can  pay  no  capital  gains  tax  on  the  sale  of  their  ASX  listed  shares.  

§   Other  benefits  for  shareholders  include  paying  no  tax  on  dividends  received.  

§  SOR  as  a  Company  also  pays  just  15%  corporate  tax  rate  on  returns  from  backing  Australian  SME’s.    

§  Over  $1bn  invested  by  the  PDF  program.  

Australian Innovation

Entrepreneurs and researchers

*Shareholders  should  seek  their  own  independent  tax  advice.    

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§  PE  can  create  flexible,  transparent  electronics  which  current  semiconductors  cannot.    

§  PE  can  also  be  manufactured  using  cheap  prinAng  methods  unlike  current  electronics  made  in  expensive  fabricaAon  plants.  

 

 Printed  electronics  manufacturing  facili;es  cost  1/100th  of  tradi;onal  semiconductor  fabrica;on  plants.  

n  InnovaAon  on  prinAng  techniques  and  conducAve  materials  makes  high  throughput  and  volume  producAon  of  electronics  possible  at  low  cost  on  flexible  plasAc,  paper,  or  texAle  substrates.    

n  This  flexibility  enables  integraAon  of  printed  and  flexible  electronics  into  everyday  items  and  places  we  had  only  dreamed  of  before.  

This allows device manufacturers to place electronics in places and on products that have never been able to use electronics before.

ORGANIC AND PRINTED ELECTRONICS 29

The wafer level technology includes batch pro-cessing, typically film substrates on a carrier. An adapted semiconductor line is used for process-ing. High resolution can be achieved by vacuum deposition and/or spin coating followed by pho-tolithography and wet or dry etching. The pro-duction cost is relatively high and the process is not compatible for conversion to in-line sheet to sheet or reel-to-reel processes.

Under hybrid technologies, we summarize com-binations of processes including large area pho-tolithography, screen printing or printed circuit board (PCB) technologies that make use of flexi-ble substrates (e.g. polymer films or paper). Depo-sition of materials happens by spin coating, blade coating or large area vacuum deposition, in some cases also partly by printing. Ink-jet print-ing and laser patterning are further technologies that are grouped in the hybrids and enable pro-duction at a medium cost level. At the moment hybrid appears to be possibly the most promising technology for further market penetration in the next few years, and it could also be combined with some amount of silicon for specific func-tions in hybrid systems.

Fully printed means continuous, automated mass-production compatible printing and coat-ing techniques (flexo, gravure, offset, slot-die,

from a large area unpatterned film, while others are additive, i. e. they only deposit material where it is wanted, e.g. by fusing a shadow mask.

There are no single standard processes in exist-ence today. Deciding which printing or other pat-terning process is used depends on the specific requirements of a particular device. In general, different processes have to be used for subse-quent steps of a multilayer device in order to optimize each process step. In an integrated product there may also be some steps in which printing processes are used at standard levels, e.g. for graphics or adhesives, and other critical ones where the highest quality standards need to be applied, e.g. for functional layers and small features. The above mentioned processes differ strongly with regard to, e.g., resolution and throughput and the feature size and throughput for some important processes at the highest quality level are shown in Figure 20.

Process Technology LevelsThe technologies that are used in organic elec-tronics range from batch, clean-room, etching based processes to mass printing processes that are capable of deposition of square meters of substrates per second. Here is a rough classifica-tion of the technologies in three different tech-nology levels:

Figure 21: Reel-to-reel printing of electronic devices. (Source: OE-A)

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This is only the beginning.. the global market is expected to reach $340 Billion by 2030.

Printed  and  flexible  electronics  are  already  in  the  market.    The  global  interest  in  the  technology  is  booming.      Almost  every  sector  of  our  economy  already  is  or  will  be  affected,  if  not  revoluAonized,  by  printed  electronics.      

According  to  research  firm  IDTechEx,  the  global  market  for  printed  and  potenAally  printable  electronics,  will  rise  from  about  USD  24  billion  in  2014  to  $70.4  billion  in  2024,  with  a  compound  annual  growth  rate  of  40  per  cent.      Those  amounts  jump  dramaAcally  when  you  include  the  total  market  value  of  the  products  that  do,  and  could,  incorporate  PE  components.  

All  informa;on  from  the  Canadian  Printable  Electronics  Industry  Associa;on  

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ORGANIC AND PRINTED ELECTRONICS 21

regard to the trend from health care at clinics and hospitals to health care at home. To some extent, the future is already here, since organic and printed electronics already enables products on the health care market, such as glucose test strips, lab-on-chip products and smart blister package for pharmaceuticals.

While we focus on clusters of applications based on functions, organic electronics contributes to innovation in different industrial sectors such as automotive or health care, with products cover-ing a range of functions. For this reason, OE-A has also begun to look at these market segments, and there have already been intensive discus-sions about how organic electronics may contrib-ute to the future of health care, especially with

Primary batteries, memory for brand protection,ITO-free transparent conductive films and touch sensors

Garments with integrated sensors,anti-theft/forgery labels, temperature sensor smart labels, printed sensors and test strips

Rechargeable batteries, transparent touch sensors, reflective display elements,flexible & large area ITO-free touch sensors

NFC enabled sensor labels, intelligent packaging, integrated systems on garment

Multi-cell batteries, wireless readable memory, printed logic chips, bendable ITO-free touch & gesture sensors

Directly printed batteries, smart objects integrating actives and passive devices, fully integrated touch & gesture sensors

Multi-cell batteries, wireless readable memory, printed logic chips, bendable ITO-free touch & gesture sensors

OLED on textile, disposable health monitoring systems, wireless sensors for smart buildings

OE-A Roadmap for Organic and Printed Electronics Applications 2015

Electronics & Components

Integrated Smart

Systems

Existing until 2015

Short term 2016–2018

Medium term 2019–2022

Longer term 2023+© OE-A 2015

! ! !

Rigid modules for design driven luminaires B2B and B2C

Flexible lighting for design driven applications

Mass-produced flexible lighting

General lighting

Curved OLED TVs, flexible OLED displays, mobile OLED displays, e-reader, wearables

In-moulded displays, (semi-) transparent bendable display, OLED monitors and TVs

Portable foldableOLED displays, (semi-) transparent rollable display

Stretchable display, rollable OLED TV, rollable consumer electronics

Consumer electronic chargers, solar lamps, architectual installations

Consumer electronics, mobile power, energy harvesting, specialized BIPV and BAPV

Mobile power, Internet of Everything energy harvesting, building integration, medium size off-grid

Large volume BIPV integration, large and industrial off-grid, grid-connected PV

Organic Photovoltaics

Flexible andOLED Display

ELO DLighting

Figure 13: 6th Edition of the OE-A Roadmap for organic and printed electronics, with forecast for the market entry in large volumes (general availability) for the different applications. The table is a further development of and update to the fifth version of the OE-A roadmap presented in 2013.

Australian Innovation

Entrepreneurs and researchers

SOR  will  seek  to  idenAfy  and  assess  Australian  Printed  Electronics  technologies  and  Companies  for  potenAal  licensing  and  acquisiAon  opportuniAes.  

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The secret to Printed Electronics growth is collaboration - Dupont

§  IdenAfy  potenAal  partners  from  Industrial  InnovaAon  Centres,  InnovaAon  Clusters  and  Companies  across  the  Printed  Electronics  supply  chain.  

§  Leverage  partners  global  network  and  experAse  in  many  areas.  §  Develop  products  faster  and  launching  them  earlier.  §  Gain  be`er  access  to  the  target  market.  

Our  strategy  is  to  specifically  focus  technical  research  and  development  on  those  tasks  that  enable  partnerships  to  be  formed.  

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“These  prinAng,  materials,  paper  and  chemical  companies  of  today  will  be  the  new  electronic  giants  tomorrow”  –  IDTechEx    “The  demand  for  low-­‐cost,  non  convenAonal  electronic  soluAons  is  real  and  its  growing”  –  Xerox    “Investors  are  increasingly  drawn  to  the  printed  electronics  market  due  to  its  low  cost  of  entry  and  technological  knowhow  of  convenAonal  prinAng.  The  convenAonal  prinAng  methods  are  already  mastered  and  this  reduces  the  chances  of  any  anomaly  with  the  process”  –  Frost  and  Sullivan    “Technologies  for  flexible  electronics  manufacturing  will  be  major  differenAators  in  the  next  generaAon  of  consumer  and  compuAng  devices”–  President’s  Council  of  Advisors  on  Science  and  Technology      “Flexible  Hybrid  Electronics  has  the  potenAal  to  re-­‐shape  enAre  industries,  from  the  electronic  wearable  devices  market,  to  medical  health  monitoring  systems,  to  the  ubiquitous  sensing  of  the  world  around  us  –  also  known  as  the  Internet  of  Things”  -­‐US  Department  of  Defense    “Printed  Electronics..  the  Holy  Grail  of  low  cost,  high  volume  manufacturing.  Follow  the  money”  -­‐  DuPont    

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The  current  memory  capacity  of  printed  electronics  and  smart  systems  is  limited.  As  memory  capacity  increases  applica;ons  will  be  able  to  expand  their  func;onality  -­‐  IDC  

Memory  is  at  the  heart  of  electronics…  

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