carclo plc analyst & shareholder presentation 22 nd and 23 rd june 2009

Carclo plc Analyst & Shareholder Presentation22nd and 23rd June 2009

Copyright Conductive Inkjet Technology 2009.No unauthorised use permitted

www.conductiveinkjet.com

Agenda

• Company Background, Progress and Evolved Business Model

• Contract Manufacturing strategy and Progress• Fine Line Technology• Point Of Care Diagnostics Device and Write

Once Display• Commercial Update• Facilities Tour• Lunch & Q&A

Company Background, Progress and Evolved Business Model

Chris Malley - CEO



Key Technical Milestones

2003 – First Inkjet printing of Basic Catalyst2004 – R2R system begins testing2005 – Technical team recruited in Cambridge2005 – Initial development of “Display Technology”

begins2008 – Metaljet 6000 equipment installed2008 – First Flexographic adaptation begins2009 – Industrial scale-up of “Fine Line Technology”2009 – First Commercial Products shipped using

Metaljet 6000



Basic Additive Process

Apply Catalytic Ink

UV Cure to Adherent Layer

Immerse in solution of Metal Ions

+ + +

++

++

++

++

+

+ +

Metal film is grown by Autocatalytic deposition



Core Additive Circuit Product

Flexible Circuits– RFID (UHF and Microwave) and Other Antenna

Applications (Wireless LAN, Mobile Phone, Bluetooth)– Base circuits for surface mount components

Key Characteristics– Single sided circuits– Compatible with PET and PC Films– Higher resistance than conventional copper etched

circuits– Lower resistance than other printed technologies e.g.

Silver inks– Uniquely Flexible due to digital proposition



Metaljet 6000 System



MetalJet 6000i Printer

• Worlds first Inkjet line with sufficient accuracy to print electronic circuits

• Now incorporates state of the art Xaar technology integrated by CIT

• Optimised for PET and PC materials • Print speeds of up to 24m/min• Capacity of 3 million sqm of material.



MetalJet 6000p Plating Line

• Ultra small machine footprint due to patented “fluidised bearing system”.

• Revolutionary design incorporates on board chemistry storage and monitoring

• Configured to plate copper up to a max. thickness of <1 µm – equivalent to a sheet resistance down to 20mΩ/sq

• Speed determined by metal thickness. Average speed approx. 3-5 m/min (30-50 mΩ/sq)

• Effective capacity 0.5-1.0 million sqm



Plating Line Concept• Fluid flow generates a hydrodynamic bearing• Web is threaded through the tank over these

bearings• Web is well controlled and receives even fluid

contact• No moving parts – only moving fluid



Metaljet 6000 System Advantages

• Provides truly digital production process– Production of 1 unit or 1m units has no impact on

operation– Facilitates constant design changes and optimisation– Perfect tool for new product designers

• Additive nature of technology avoids wasted metal

• Optimised for use with cheap base substrates• Significantly reduced process steps proving

– Lower process costs– Reduced environmental footprint



Conventional Printing - Flexo

• Provides alternative to Inkjet• Utilises installed print capacity• Same 2 stage process, metallisation requires

Metaljet 6000p• Potential to provide 2 side capabilities – through hole

connection under development (allows more complex circuits to be printed)

• Can be combined with decorative printing for consumer products

Now beyond concept phase and currently working on specific customer projects.



Core Technology Business Model• Metaljet 6000 system installed in Cambridge

offering reel to reel circuits in any volume for demonstration, prototyping and contract manufacture.

• Complete manufacturing solutions via the supply of our Metaljet 6000 system or through the supply of tailored systems to suits customer requirements.

• The supply of our patented inks to inkjet and flexo systems for customer manufacturing

• Complimentary prototyping equipment including the Metaljet 2000 and Metaljet 600 systems.

Contract Manufacturing strategy and Progress

Chris Malley - CEO



Why Contract Manufacture ?

• A credible system sale only possible after thorough debug

• Allows genuine process optimisation• CIT process is a facilitator for new product

design– Customer access to equipment allows product

designers to create circuits using CIT design rules– Small to mid Volume products offer highest return

• Target RFID market still small and requires supply chain

• Provide a near term revenue stream



Current Status

• Lines fully operational• Currently manned by R&D staff – convert to

production environment 3-6 months• Testing and Approvals taken place

– RFID manufacturers– Global Antenna Manufacturer– Infratab– Volume medical device customer– Range of end customers for specialist circuits

• Initial orders now being placed

Fine Line Technology

Dr Phil Bentley - CTO



Absolute Sizes•18pl Inkjet

Drop•6pl Inkjet Drop

•32 microns

•41 microns •80 microns

•10 microns

•3 microns

•Human Hair cross-section



CIT Photo-lithographic Process

•Transparent PET

•Photo-active Layer

•Photomask



UV exposure



UV Induced Cross-linking•Exposed areas are

selectively insolubilised



Development

•Exposed catalyst remains

•Solvent dissolves unexposed catalyst



Manufacture of CIT Photo-lith Film

• Transparent substrate• Application of photo-

sensitive layer– Formulated to be solid– High contrast– Susceptible to scratches

• Optional peel-off layer•Display-

Grade

•Polyester

•Photoactive Layer

•Peel-Off



Process Flow

•Production of film Product

•Exposure

•Development+

Metallisation



Applications

Dramatic Cost and Performance benefits to Capacitive Touch Screens

High Precision Electrodes in Medical Products

Anti-tamper Circuitry for High Security Applications

Point Of Care Diagnostics Device and Write Once Display

Dr Steve Thomas – Applications Engineering Director



Diagnostic Device Project

• Carclo + BBI – Platform Diagnostics• Exploit existing agglutination reaction test in a

lab-on-chip type geometry• Initial exploitation based on existing test

reagents for D-Dimer antigen– Essential diagnostic test for Deep Vein Thrombosis

(DVT)– Elevated levels indicative of risk of stroke or cardiac

trauma



Agglutination Reactions

• Reagent causes blood cells to bond together via selected antigen

• Results in agglutination of sample

Sample erythrocyte

anti-erythrocyte + anti-D-dimer conjugate(Test Reagent)

Sample erythrocyte D-dimer Antigen

Cell surfaceglycophorin

Sample erythrocyte

anti-erythrocyte + anti-D-dimer conjugate(Test Reagent)

Sample erythrocyte D-dimer Antigen

Cell surfaceglycophorin



Principle of Capillary Test

• Liquid placed in a capillary channel will flow spontaneously due to capillary force



Principle of Capillary Test

• Placing test reagent for the D-Dimer agglutination reaction in one channel will cause the blood in that channel to thicken if D-Dimer antigen is present

• Blood in that channel will flow more slowly than blood in the control channel



Role of Carclo Technical Plastics

• Overall Project Management• Advanced knowledge of moulding to medical

standards• Expertise in assembly of complex moulded

parts



Role of CIT

• Wide ranging scientific expertise– Chemistry, Physics, Materials, Electronics

• Tasked with development and implementation of novel new technologies to help realise a competitive functional point of care device

• Requirements including:– Measurement of flow timing– Processing of timing data to give result– Display of test result– Low-Cost Manufacture Route for Above!



Point of Care Device

• Original concept:– Disposable moulded test chips– No active components– Test chip is placed into a test station to perform test– Original concept to detect flow of blood optically

• Point of Care Concept– Entirely disposable device– Can be used anywhere without the need for high

cost test station– Single use with permanent record



CIT Proposition

• Since blood is conductive, electrical contacts can be used to detect presence

• CIT technology could be used to produce contact circuit to laminate as sealant for moulded microfluidic device

• Same foil could be used for mounting microcontroller and associated components to provide timing and processing

• Digital nature of CIT process ideal for use in device development– Ultra Low-Cost Prototyping!



Device Concept• Injection moulded Microfluidic chip• Space for display and area to mount

electronic components



Device Concept

• CIT to produce reel-to-reel printed electrode arrays for sealing chip

• Ideally, CIT foil is also circuit board for mounting all components

• Possibly also forms part of display?



Device Concept

• Whole assembly sits on top of CIT printed Foil

• Blood flow is detected by printed electrodes

• Timing and processing done on microcontroller

• Result displayed



Requirements for Display

• Low power, low voltage• Clear and Readable• Highly desirable to have permanent record of result

– Display should retain record of test result– Ideally also detachable to be filed with patient records



Write Once Display Concept

• CIT printed back electrode– Pattern of icons to be

displayed

• Front electrode: Complete coverage on transparent material

• Electrodes separated by electrolyte– E.g. salt water

• Apply voltage:– Material is ‘deplated’

from front electrode

V



Current Status

• Working prototype displays produced• Initial patent filed• Peripheral patents in progress

– Improvements to original device concept

• Currently examining device structure and possible manufacture processes– Consulting with display industry experts

Commercial Update

Chris Malley - CEO



Business Development Metaljet 6000 Output

• RFID market growth slow – Significant commercial progress at several key RFID

inlay manufacturers

• High volume flex market– Competitive with existing flex circuit technologies but

advantages for smaller volumes and less dense circuits– Existing and developing number of customers

• Small-Medium flex– New products designed to optimised technology– Fewer barriers to entry– www.inkjetflex.com concept



Business Development Fine Lines Touch Screens

• Touch Screen Market– Booming market– Future growth in capacitive screens due to multi-touch and

reliability– Demands include low power consumption, cost reduction,

flexible materials, improved reliability and fewer process steps

• Opportunity– Lower end 10’s million device / high end 100’s million device

• Route to Market– Initial Manufacture followed by a release of a Technical Films

Product



Business Development Fine Lines Backplanes/ITO

• Technology still being developed– All displays still glass based– Normally require materials development for electrode

optimisation– CDT main technical partner

• Opportunity– New generation organic display, lighting and PV

• Route to Market– Technology development required– Requires match and optimisation from CDT/similar – Minimum 18 months further development– Applicability now to electronic ink applications



Conclusion

Core product R&D complete Commercial revenues growing Very significant upside potential for Touch Screens Opportunity from growth in Smart Packaging and

Disposable electronics

carclo plc analyst & shareholder presentation 22 nd and 23 rd june 2009

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