VFrom $45M in 2012 to $270M in 2017, the UV LED market is booming - but we’re just scratching the surface of the technology’s true potential. THANKS TO UV CURING, UV LEDs SHOULD BECOME A $270M BUSINESS BY 2017 - AND COULD HIT $300M IF NEW APPLICATIONS BOOM Thanks to its compactness, low cost of ownership and environmentally-friendly composition, UV LED continues to replace incumbent technologies like mercury. Hence, the UV LED business is expected to grow from $45M in 2012 to nearly $270M by 2017, at a CAGR of 43% - whereas the traditional UV lamps market will grow at a CAGR of 10% during the same time period. In 2012, UVA/UVB applications represented 89% of the overall UV LED market. Amongst these applications, UV curing is the most dynamic and most important market, due to significant advantages offered over traditional technologies (lower cost of ownership, system miniaturization, etc.). This trend is reinforced by the whole supply chain, which is pushing for the technology’s adoption: from UV LED module and system manufacturers to ink formulators and (of course) the associations created to promote the technology. And with Heraeus Noblelight’s recent acquisition of Fusion UV (Jan. 2013), all major UV curing system manufacturers are now involved in the UV LED technology transition. Concerning UVC applications, they are still in their infancy and their sales are mainly for R&D purposes and analytic instruments like spectrophotometers. But given some newly published results (increase of EQE over 10%, etc.) and the recent commercialization of the world’s first UVC LED-based disinfection system (2012), the market should kick into gear within the next two years.

1. UV LED
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Technology & Application Trends
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75 cours Emile Zola, F-69001 Lyon-Villeurbanne, France
Tel : +33 472 83 01 80 - Fax : +33 472 83 01 83
Web: http://www.yole.fr
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2. UV Lamp Applications as a Function of the
Wavelength and Optical Power Output
Required optical
power output
(log W/cm²)
UVC UVB
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UVA
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100 Analytical Instrument
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10 UV Curing
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Tanning
Disinfection
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1 / Purification
Photocatalytic
(Water / Air /
Purification
Surface)
Medical
0.1 Phototherapy
Analytical Instrument
Counterfeit
Detection
0.01 Wavelength
200 280 315 365 400 (nm)
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3. UV Lamp Market Size
Evolution from 2008 to 2012
An increase of ~XX% of the UV lamp market size ($M) between 2008 and 2012.
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4. UV LED Applications Roadmap
Timeline / Time to Market
UV Curing
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Banknote Detection
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UVA
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Photocatalytic Air Purification
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Photocatalytic Water Purification
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UVB
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UVC Water Disinfection / Purification
Air Disinfection / Purification
2000’s 2009 2010 2011 2012 2013 2014 2015 2016
Timeline / Time to Market
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5. UV LED Sales
2012 Revenues and Market Shares
UV LED (package and chip) sales only
It does not include:
• Revenues from R&D contracts
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• Revenues from regional/national
funding
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• Other funding
P EM XXX (USA and TW) the more and
• is
O P more installed in UV LED
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business (growth relay since
competition has increased in visible
EV LED market) and continue to take
D market shares over Nichia.
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• XXX is loosing market shares since
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the company still continue to focus
mainly on packaged LED that are
not optimally suitable for UV curing
arrays and since competition begin
to develop (entry of Chinese and
Taiwanese players).
Over a market of nearly $XXM • UV LED packagers (LED Engin…) also
develop strong revenues.
1. Including CREE and Fox Group who have exited now
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6. UV Lamp vs. UV LED
Different Strategies to Catch Value of UV LEDs (1/2)
The merger of the semiconductor industry and the traditional UV lighting industry has created a
redistribution of the value on the supply chain!!!
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Traditional UV Lamps Traditional UV Systems
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Philips…
Critical
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SPOT Vertical
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Integration
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Hoenle, IST…
Horizontal
UV LEDs
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Integration
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“Disruptive”
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UV Die UV Package UV Arrays Integration
Photon Star…
Crystal IS, HexaTech… Hoenle, IST…
LED
Manufacturer Integrator SWEET SPOT
SWEET SPOT
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7. Known M&A, Investments and Fund Raising
in UV LED
More than $XX.6M invested in UV LED since 2010 !!!
Fund Raising
Before
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2010 National Funding
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Acquisition
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$XM $X.5M $X.2M
Joint Development
$3.1M
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Acq. of Enfis by Acq. of Crystal IS by Acq. of Huga Optotech
PhotonStar LED Asahi Kasei by Epistar
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Amount not known Amount not known Amount not known
D E Acq. of Psoria-Shield by
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Wellness Center USA
$X.XM $XM Amount not known
$X.XM YO $X.5M $X.6M
$X.7M $X.8M $X.15M $X.05M
2010 2011 2012 2013
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8. UV LED Market Size (M$)
Split by Application
In 2017, UV LEDs business should represent nearly $XXXM!!!
CAGR 2012 - 2017 = 43%
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9. UVA / UVB Applications
Lamp Specifications and Market Highlights
Although UV curing application represents < 3% of total UVA lamp volume, associated revenues
represents > 50% (biggest UVA market).
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Biggest UVA / UVB lamp market ($M) is UV curing which represent moreUV
Wall-Plug
2012 UV
2012
than 50%Lamp UVALED
UV of all
UV
/
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Lamp Size Lamp ASP Lamp Market
λ UVB lamp revenue… However the application represent less 3% of total UVA lamp volume to
Application Input Power Lamp Market Time
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(m) ($) Volume Growth
(W) ($M) Market1
(Munits). (Munits) (2011 -2012)
Application A 0.3m to 2m 10W to 20kW
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$250 to $300 P0.53 149.7 +13.4% 2003
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Application B 0.5m to 2m 15W to 200W
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$5 to $15 10.59 84.9 +3.5% > 2015
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Application C 0.2m to 2m 10W to 100W $40 to $100 0.62 30.8 +7.2% 2015
UVA
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/
UVB
Application D 0.1m to 0.3m 10W to 40W $5 to $10 0.57 4.3 +2.4% 2006
Application E 0.1m to 0.2m 4W to 10W $5 to $10 0.53 2.7 +3.6% 2003
Application F 0.2m to 1.2m 4W to 40W $1 to $15 10.52 31.0 +1.1% > 2015
In red are presented the most challenging specifications for UV LEDs.
1. UV LED time to market = Time when UV LED penetration rate > 1%.
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10. Company A (JP)
• Identity
– Founded in 2000 through collaboration with xxxx University (JP) -
Acquired by the private equity xxxxx in 2001 ($xxxM).
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– Employees 2012: ~30 persons.
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– Activity: Manufacturing of GaN wafers, UVA AlGaN epiwafers and UVA
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LEDs (chips, packages and modules).
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• UV LED Technology & Products
– Growth technique: Lateral Epitaxy on Patterned Substrate (LEPS).
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• Novel MOCVD approach developed in association with Tokushima
University.
– 2” AlInGaN epiwafers.
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– UVA LED wavelength range: 353-360nm, 360-363nm, 363-370nm,
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370-375nm and 375-380nm.
• Single chip optical power output :
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– 280x280µm: 1mW (363nm) to 5.5mW (380nm) @ 20mA.
– 600x600µm: 5mW (363nm) to 35mW (380nm) @ 100mA.
– 1mm² chip are targeted for the future. Die 280x280m SMD package with 4 chips 600µm
(200mW @ 375nm)
• SMD package with one to 4 chips:
– 375nm: 200mW @ 500mA.
• Power LED with 25 chips:
– 375nm: 900mW @ 300mA.
– Production capacity was ~xx million LEDs/month in 2010.
• UV LED Applications Die 600x600m Module with 4 SMD of 4 chips
(300mW @ 375nm)
– UVA applications (counterfeit detection, curing, photocatalysis…).
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11. Bulk AlN Roadmap - Mass Production Availability
Company A
Company B
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Company C
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Company D
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Company E
Company F
1’’ wafer 2’’ wafer 2000 2010 2011 2012 2013 2014
4’’ wafer Timeline
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12. About Yole Développement and LED
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75 cours Emile Zola, F-69001 Lyon-Villeurbanne, France
Tel : +33 472 83 01 80 - Fax : +33 472 83 01 83
Web: http://www.yole.fr
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Copyrights © Yole Développement SA. All rights reserved.

13. Yole Développement
Field of Research Activity
• Yole Développement is a market research and strategic consulting company founded in 1998.
• We are involved in the following areas:
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Photovoltaic
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Power Electronics Microfluidic & Medical Technologies
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Advanced
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Packaging Sensors
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LED, OLED and Laser Diode Wafer & Substrates
• Our research is acquired by in-house personnel via open-ended discussions and interviews.
– We employ 32 full-time analysts with technical and marketing degrees
– Primary research includes over 3,500 interviews per year
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14. Yole Développement
Around the World
We are present in Europe, North America and Asia
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40% of our activity is in
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Europe
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30% of our activity is in 30% of our activity is in
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North America Asia
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Yole Paris
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System Plus Yole Korea
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Consulting
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Yole Inc.
Yole Japan
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Yole Taiwan
Lyon, France -
Headquarters
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15. Yole Développement
Mission Statement – Knowledge-Based Company
• We help our customers develop their business through specific analysis and reports, including:
– Accurate market data, market segmentation and marketing analysis.
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– Technical evaluation, technology cost and Cost of Ownership (COO) analysis.
– Patent portfolio analysis.
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– Freedom to operate analysis.
– Strategic analysis to enhance company and business unit performance.
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– Strategic development support (growth opportunities identification, M&A support, investor(s)
identification,etc.).
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– Advertising opportunities in Yole’s magazines, webinars and specific events.
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• Our customers get measurable, operational results from our actions!
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16. Supporting the Entire Value Chain
Yole consultants provide Market Analysis, Technology Evaluation and Business Plan Assessment
for customers along the entire value chain
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17. About Yole’s LED Analyst Team
Dr. Philippe ROUSSEL - Business Unit Manager
Dr. Philippe ROUSSEL holds a PhD in Integrated Electronics Systems from the National
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Institute of Applied Sciences of Lyon (INSA - France). He joined Yole Développement in 1998
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and is Business Unit Manager of the Compound Semiconductors, Photovoltaic, LED and
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Power Electronics department.
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Dr. Eric VIREY - Senior Analyst
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Dr. Eric VIREY holds a PhD in Optoelectronics from the National Polytechnic Institute of
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Grenoble (INPG - France). In the last 12 years, he has held various R&D, engineering,
manufacturing and marketing positions with Saint-Gobain. Most recently, he was Market
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Manager at Saint-Gobain Crystals, in charge of Sapphire and Optoelectronic products.
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Pars MUKISH - Analyst
Pars MUKISH holds a master’s degree in Materials Science & Polymers and a master’s in
Innovation & Technology Management (EM Lyon - France). He works at Yole
Développement as Market and Technology Analyst in the fields of LED and Lighting
Technologies, carrying out technical, economic and marketing analysis. Previously, he was a
Marketing and Techno-Economic Analyst for several years with the CEA.
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18. 2012 - 2013 LED Reports (Latest & To Come)
Status of the
LED Front-End LED Packaging
LED Industry
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L O LED for Street
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LED Phosphor UV LED
Lighting
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2012 Copyrights © Yole Développement SA. All rights
reserved.
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2012 Copyrights © Yole Développement SA. All rights
reserved.
©
2012 Copyrights © Yole Développement SA. All rights
reserved.
Sapphire OLED For
III - V Epitaxy
Substrates Lighting
© © ©
2012 Copyrights © Yole Développement SA. All rights 2012 Copyrights © Yole Développement SA. All rights 2012 Copyrights © Yole Développement SA. All rights
reserved. reserved. reserved.
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