Panorama Synergy Limited Company Presentation …panoramasynergy.com/Downloads/Presentations/PanoramaSynergyCompany...Aligned Board & Management - Panorama’s highly experienced and

Panorama Synergy Limited Company Presentation September 2014

www.panoramasynergy.com.au

The most precise measurement system on the planet.

Panorama Synergy Limited Disclaimer, Forward Looking Statements and Competent Person Statement This presentation has been prepared by Panorama Synergy Limited (the “Company” or “Panorama”). This presentation is being provided to investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. The document is not intended to constitute an invitation or an inducement to engage in any investment activity. The presentation is not intended to constitute investment advice and should not be relied upon as such. This document is not intended as an offer or recommendation with respect to the purchase or sale of any securities in the Company. The content and graphical illustrations contained in the presentation are provided for information purposes and should not be relied upon to form any investment decisions or to predict future performance. The Company is wholly reliant upon third parties for the accuracy and completeness of the information in the presentation and has no duty of care owed to you in relation to such information. Although the information expressed is provided in good faith and the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include amongst others, unforseen delays in product development, the timing and extent of any changes in the associated technology and the ab ility of the Company to meet its stated business goals. Prospective investors should make their own independent evaluation of an investment in the Company or seek advice from their financial adviser, accountant, lawyer, stockbroker or other professional adviser before making any investment decision. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act, or otherwise. This presentation does not amount to, involve or imply a recommendation or a statement of opinion in respect of whether to buy, se ll or hold a financial product. Neither Panorama or any of its or their associates or any of the Company’s directors’ (Panorama Group) shall have any liabili ty whatsoever for: (a) investment advice; (b) a recommendation to enter into any transaction or strategy; (c) advice that a transaction or strategy is suitable or appropriate; (d) the primary basis for any investment decision; (e) a representation, warranty, guarantee with respect to the legal, accounting, tax or other implications of any transaction or strategy; or (f) to cause the Panorama Group to be an advisor or fiduciary of any recipient of this report or other third party. None of the Panorama Group shall be responsible for or have any liability to you for losses or damages (whether consequential, incidental or otherwise) arising in any way for errors or omissions in, or the use of or reliance upon the information contained in this document. To the greatest extent permitted by law, we exclude all conditions and warranties that might otherwise be implied by law with respect to the document, whether by operation of law, statute or otherwise, including as to their accuracy, completeness or fitness for purpose. Unauthorised copying of this document is prohibited.

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� LumiMEMS Reader™ - Through extensive laboratory testing, Panorama Synergy has demonstrated the viability of its unique laser-based Optical Readout System, the LumiMEMS Reader™, for use in Micro Electro Mechanical Systems (“MEMS”).

� Established Market - MEMS are tiny sensing and switching devices used in every day applications from mobile phones to airplanes, with a market value of approximately $14 billion worldwide and growing rapidly.

� New Standard – All MEMS sensors require a readout system to assess and communicate the data that they measure. Being more accurate and sensitive than industry standard readout systems, the LumiMEMS Reader™ has the potential to become the new standard just as fibre optics replaced copper in telecommunications.

� First Generation Systems – It also opens up a range of new market opportunities and Panorama is developing first generation systems for different end market applications.

� Partnering Opportunities – Panorama has commenced early discussions with interested parties concerning specific requirements that the LumiMEMS Reader™ may enable to the first time; and is also assessing other routes to market.

� Patented Technology - In conjunction with the University of Western Australia, led by Associate Professor Gino Putrino, a world leader in MEMS optical readout systems, Panorama has successfully lodged patent applications in Australia, US and Europe.

� Aligned Board & Management - Panorama’s highly experienced and accomplished Board and Management are aligned to the success through substantial equity ownership in the Company.

Introducing the most precise measuring system on the planet.

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Overview


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Directors and Senior Management

Aidan Montague Chairman

Over 25 years' experience in sales and marketing as well as a strong technology and internet background. Formerly held senior management positions at Cisco Systems including Director of Strategic Alliances for Cisco Asia Pacific. A professional engineer by background

Terry Walsh Managing Director & CEO

Over 28 years' experience in the technology industry. Formerly held senior management positions at Cisco Systems including Australia/New Zealand Managing Director and CEO of its Canadian operations

Jeff Braysich Non-Exec Director

30 years' experience in financial and commercial markets including as a stock broker, fund manager and corporate advisor.

Top Shareholders

1. John King (related entities) 26.4%

2. Terry Walsh (related entities) 9.3%

3. Jadison Pty Ltd 2.8%

4. Storage & Warehousing Services Pty Ltd 2.5%

5. Bestrawl Pty Ltd 2.2%

Top 20 shareholders ~ 59.8%

Board & Management Holdings ~ 15.3%

Capital Structure ASX Code PSY

Last Sale Price (as at 3 September 2014) 27.5c

High/Low (Year Rolling) 30.5c/0.3c

Ordinary Shares ~473.8 million

Options (Unlisted Options) 20.0 million

Market Capitalisation @ Last Sale Price ~$130.3 million

Liquidity Rolling 12 month ~$181.0 million

Cash at Bank (no debt) ~$1.2 million

Average Cash Spend/Month (year rolling) ~$123,000

Corporate Snapshot


� Microelectromechanical Systems (MEMS) are a technology based on the integration of extremely tiny mechanical and electrical elements.

� MEMS sensors can measure a wide variety of physical properties such as acceleration, gravity, temperature, pressure and basically anything biological or chemical in nature - such as the indicators of various diseases and cancers.

� Current consumer applications include:

- detection of rain on car windshield to turn on automatic wipers;

- detection of movement to tell a smartphone which way is up to rotate the screen;

- changes in speed that deploy car airbags (there are already typically 50 MEMS sensors in a modern cars).

� MEMS devices typically consist of two components:

- MEMS sensors: which detect and measure the presence of a substance; and

- Readout systems: which collect and communicate the data that is measured

� All MEMS sensors need a readout system to assess and communicate the data that they measure.

What are MEMS?

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Big Data/Analytics

� The LumiMEMS Reader™ has the potential to deliver “big data” to the layers above

Application Layer.

Middle Ware Layer.

Intelligent Computer Layer

Network Layer

� Applications in medical, agriculture, food, energy, auto and many others

� 1 trillion sensors by 2020 – killer app for “big data” market.

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MEMS Architecture


� Currently the majority of MEMS readout systems measure and communicate information electronically via techniques using changes in capacitance, piezoelectric materials or piezoresistive materials. These are subject to interference from electrical ‘noise’ from nearby devices and the environment.

� The alternative, which is more sensitive and therefore more accurate, is an optical system using a laser directed at a MEMS sensor. These techniques can be based on optical leveraging (see Figure 1), optical interferometry or the Doppler effect.

� However, existing optical readout systems are only able to operate in laboratories due to their size (similar to that of a washing machine), sensitivity to vibration, and the need to precisely align the laser with the tip of the tiny MEMS sensor.

� Current optical readout systems are unable to measure more than eight MEMS sensors at a time due to the difficulties in aligning an external laser with the tip of the MEMS sensor.

� In addition, optical leveraging techniques such as in Figure 1 are only usable with MEMS based on cantilever structures, and cannot operate with MEMS based on structures such as microbridges or membranes.

Figure 1 – Existing optical based readout system

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Competing Technology


� By contrast, the LumiMEMS Reader™ is a portable, robust and autonomous readout system that is able to integrate with all existing MEMS devices and can measure hundreds of sensors at a time.

� It combines the accuracy and sensitivity of the optical reader with the size, portability and ability to read multiple sensors of the electrical system, but without the shortcomings of interference from electronic ‘noise’.

� The LumiMEMS Reader™ is able to operate in air, water and

other fluids or in a vacuum and can be made from materials much more heat resistant than those used in an electrical system. It is therefore able to be deployed in harsh environments such as down a drill hole or inside the cylinder shaft of a car engine.

� Panorama’s current suite of granted patents covers USA, Australia, Europe and Asia; and extends to biological and chemical detection using an optical micro-cantilever detection and an atomic force microscope application.

� Panorama’s LumiMEMS Reader™ will cost the same or less to produce than existing technology and there are a number of existing foundries that can mass produce it.

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Figure 2: The LumiMEMS Reader™ has picometer sensitivity from a distance of tens of microns. Scaled up , it is equivalent to someone in Sydney being able to sense a 5cm movement of a mirror in Perth.

Perth

Sydney

Panorama’s Technology


� The LumiMEMS Reader™ is able to read multiple sensors on a single chip by using wave division multiplexing (WDM) (see Figure 3). Its integration into silicon will use well known, widely used techniques.

� It can read hundreds of MEMS structures at a time – whether micro-cantilevers, microbridges, membranes or a combination - the equivalent of reading hundreds of individual bench mounted optical readout systems simultaneously.

� This makes it statistically more accurate than existing optical readers. It can therefore detect substances sooner than existing readers and detect the previously undetectable as long as it is chemical or biological in nature.

� The integration of multi-sensing MEMS that are both robust

and portable into different devices has the potential to transform a range of consumer and industrial sectors.

� Some examples include point-of-care diagnostic machines

to provide instantaneous bedside patient diagnosis; devices to measure the presence of dangerous gases down mine shafts; or devices to measure the freshness of food or the presence of allergens.

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Panorama’s Technology

Figure 3: The LumiMEMS Reader ™ has the ability to read large numbers of sensors on a single chip , using the same chemical and biological detection via analytes as all existing technology.


NEW MARKETS � The LumiMEMS Reader™ has the ability to expand the

current addressable market for MEMS sensors (Figure 4) and open up a wave of new MEMS devices.

� These new devices can be applied across numerous industries to provide solutions which will transform everyday life as we know it.

EXISTING MEMS MARKET � For decades MEMS devices have been improving our cars,

phones, industry, medicine and life in general. � The MEMS market - which uses electrical readout systems - is

estimated to be $14 billion in 2014, growing to over $22 billion by 2018, a CAGR of 13% per annum (see Figure 4)

THE INTERNET OF THINGS � Every device in the world is being connected to the internet

and every connected device will have multiple MEMS sensors. � This rapidly developing “Internet of Things” industry will

generate nearly $9 trillion in annual sales by 2020 according to The International Data Corporation.

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Panorama’s Market Opportunities

Figure 4: forecast growth rate of MEMS market to 2018 Source: Yole Développement - Status of the MEMS Industry, July 2013


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ALREADY COMPLETED

9 Gain exclusive worldwide licensing agreement with the University of Western Australia for the use of the LumiMEMS Reader™ for optical technologies related to highly sensitive measurements by multiple, simultaneous micro-cantilever MEMS.

9 Obtain the necessary patent protection the LumiMEMS Reader™.

9 Successfully lab test all new components of LumiMEMS Reader™ to confirm viability.

9 Commence early discussions with interested parties concerning specific requirements that the LumiMEMS Reader ™ may enable for the first time.

NEXT STEPS

o Full scale commercialisation of the LumiMEMS Reader™ as a device.

o Conclude licensing deals with initial customers – likely to be in mining, safety, healthcare

o Identify key industry vertical partners for sales and distribution

o Commercial production and sale of devices incorporating the LumiMEMS Reader™ to mass market

o Continuous improvement of technology.

Commercialisation Strategy


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Investment Highlights

� Successful testing of LumiMEMS Reader™ is Panorama’s most significant milestone to date - Considerably de-risks the project

� Multiple routes to market via established, high growth and new industries - Provides scale and future margin protection

� Focused commercialisation strategy to maximise value for Panorama shareholders.

� Numerous technology patents secured in major global markets - Provides commercial exclusivity to 2028.

“In the rapidly developing world of the Internet of Things, the LumiMEMS Reader™ is the Things” – Terry Walsh


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Contact Details

Terry Walsh Managing Director/CEO Panorama Synergy Limited Telephone: +61 2 8226 3377

Website: www.panoramasynergy.com

http://www.panoramasynergy.com/


1. Surface functionalization – to bond to the substances we wish to detect

2. Static – stationary micro-cantilever bends when substance sticks

3. Dynamic – vibrating micro-cantilever changes frequency of vibration when substance sticks

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� Initially a MEMS device called a micro-cantilever has to collect data, as explained below:

1. a suspended micro-cantilever clamped at one end is created.

2. the micro-cantilever is coated with a substance that sticks to the specific chemical being sensed (functionalization layer).

3. The micro-cantilever will vibrate at its natural frequency.

4. If the chemical being sensed sticks to the micro-cantilever, that vibration frequency will change, and if that change is able to be detected, then one has an incredibly sensitive device.

� To be sensitive enough, the micro-cantilever needs to be tiny, typically one tenth of a mm long, and the frequency that it vibrates at is over 20,000 times a second.

� Research teams around the world continue to create new functionalization layers - coatings which are applied to MEMS sensors to determine which agent they are programmed to detect. Any substance that can have its functionalization material determined, can then be detected.

APPENDIX 1: MEMS Data Collection

Figure 5: Micro-cantilever-based sensor operation


Figure 7: Cross section of the full device.

Figure 6: Isometric view of the proposed interrogating grating structure.

� In sensing applications, the micro-cantilever changes its height or mechanical resonance frequency in response to an absorbed analyte on its surface (as per previous slide).

� An optically resonant cavity is created when a micro-cantilever with a reflective under surface is suspended above a diffraction grating etched into a waveguide (see Figures 6 and 7).

� When infra-red light travels through the silicon waveguide, the grating will diffract some of the light out of the waveguide towards the micro-cantilever.

� The micro-cantilever reflects the light back towards the grating, creating an interferometric effect. The intensity of the light travelling through the waveguide is hence amplitude modulated by movement of the micro-cantilever.

� Light goes into the silicon waveguide via an input grating coupler and out via an output grating coupler to provide a sensitive measure of the micro-cantilever deflection.

� The amount of light that reaches the other side will depend on the height of the micro-cantilever.

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APPENDIX 2: How the LumiMEMS Reader™ Works

Documents

Panorama Synergy Limited Company Presentation …panoramasynergy.com/Downloads/Presentations/PanoramaSynergyCompany...Aligned Board & Management - Panorama’s highly experienced and