Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (August 2021)
24 slides from Universal Display's investor presentation, August 2021
Slide 1: OLED Investor Presentation 3Q 2021
OLED Investor Presentation 3Q 2021 (updated: August 2021) © UNIVERSAL DISPLAY CORPORATION 2021 ALL RIGHTS RESERVED © UNIVERSAL DISPLAY CORPORATION 2020 ALL RIGHTS RESERVED
Slide 2: Forward-Looking Statements
All statements in this document that are not historical, such as those relating to the Company’s technologies and potential applications of those technologies, the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opportunities
Slide 3: Universal Display Corporation
Universal Display Corporation Highly Critical OLED Energy- Innovator & Efficient Enabler PHOLED Fabless OLED 5,000+ Materials Global Supplier & IP Patents* Licensor * Pending and Issued Patents Worldwide as of February 10, 2021 3
Slide 4: UDC Highlights
UDC’s Energy-Efficient Phosphorescent Materials: 100% UniversalPHOLED® emitters save energy and do not use conflict minerals Diverse & Inclusive Workplace: Geographically (from over 25 countries), culturally and gender-wise (22% female and 78% male*) diverse Board of Directors: 1/3 Female, 2/3 Male
Slide 5: What is an OLED?
What is an OLED? ➢ An Organic Light Emitting Diode is a series of organic thin films between two conductors ➢ When electrical current is applied, bright light is emitted ➢ OLEDs can be used for displays and lighting ➢ OLEDs are not just thin and efficient - they can also be made flexible and transpa
Slide 6: UniversalPHOLED = Energy Efficiency
UniversalPHOLED = Energy Efficiency With energy efficiencies that are up to four times higher than with conventional fluorescent OLED materials, UDC’s patented and award-winning phosphorescent OLED technology and materials are integral to enabling low power consumption in OLED displays and lighting.
Slide 7: Business Model
Business Model OLED Innovation & Revenues Enabler Invention License Patent Device & & Licensing Architecture Royalty IP Fees PHOLED Composition Material Emitters & of Matter IP Sales Hosts 7
Slide 8: OLED Display Market Potential
OLED Display Market Potential Mobile TV IT/Wearables Other $50.0 $47.5 $45.0 $46.7 $41.6 $40.0 $38.6 $30.6 $ BILLIONS $30.0 773M* $25.2 728M* 670M* $20.0 645M* 565M* $10.0 471M* 457M* $0.0 2019 2020 2021 2022 2023 2024 2025 *Unit Numbers are for mobile phones only Source: Omdia OLED Display Market T
Slide 9: OLED Panel Area Demand
OLED Panel Area Demand 25.0 Mobile TV IT/Wearables Other 22.9 19.3 20.0 12.4M* 17.1 15.4 MILLIONS OF SQUARE METERS 10.8M* 15.0 13.8 9.5M* 8.8M* 8.1M* 10.0 9.5 8.2 4.5M* 3.3M* 5.0 0.0 2019 2020 2021 2022 2023 2024 2025 *Unit Numbers are for OLED TVs only Source: Omdia OLED Display Market Tracker – Q1
Slide 10: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED Phosphorescence • Improved image • Fewer manufacturing More Cost Effective Superior Aesthetics reduces power Lower Power Usage quality process steps consumption by 25% • Lower bill-of- • Thin and Light • Add GREEN: 45% materials • 180 degree viewing cumulativ
Slide 11: OLED Smartwatches & Smartphones
OLED Smartwatches & Smartphones Apple Watch Series 6 Samsung Galaxy Watch4 Oppo Watch 2 OnePlus Watch ZTE Watch GT Oppo Reno6 5G vivo iQOO 8 Pro iPhone 12 Galaxy A52s 5G Honor Magic3 motorola edge 20 Google Pixel 5a Sony Xperia 1 III ZTE Axon 30 5G Huawei P50 Pro OnePlus Nord 2 5G Xiaomi Mix 4 11
Slide 12: More OLED Products
More OLED Products LG C1 65” Class 4K Smart OLED TV VIZIO 55" Class 4K UHD SmartCast OLED TV Sony BRAVIA XR A90J 65” 4K HDR OLED TV Nintendo Switch (OLED model) Samsung Galaxy Book Pro 2022 Mercedes EQS: 56” OLED Hyperscreen - 12.3” gauge cluster, 17.7” central touchscreen, and 12.3” passenger touch
Slide 13: Form Factor: Flexible, Foldable, Rollable
Form Factor: Flexible, Foldable, Rollable Samsung Galaxy Z Fold3 and Flip 3 5G Xiaomi Mi Mix Fold Lenovo ThinkPad X1 Fold 13
Slide 14: LCD vs. OLED
LCD vs. OLED TFT+OLED+Refiner Diffuser Polarized Polarized Sheet Film Film Cell TFT Backlight Unit Polarized Film Color Prism Filter ✓ Lower BOM (bill of materials) ✓ Better Performance, More Efficient ✓ Thinner and Flexible Form Factor ✓ Vivid Colors and Superior Contrast Ratio Image source: LG 14
Slide 15: Groundbreaking Organic Vapor Jet Printing (OVJP)
Groundbreaking Organic Vapor Jet Printing (OVJP) • Mask-less, Solvent-less (dry) Printing OLED technology • High material utilization and fast TAKT time • Scalable to Gen 10.5+ • Enables advanced OLED performance with process control • Multi-color deposition in one chamber • Small molecule OLED mate
Slide 16: Strong OLED Lighting Market Drivers
Strong OLED Lighting Market Drivers Image source: LG Display • Low drive voltage • Wide range of CCT, • Thin and lightweight Highly desirable color quality • Low operating high CRI possible • Transparent environmentally friendly Novel form factor & Low-Cost Potential temperatures, • Color tunable •
Slide 17: OLED Lighting Around the World Today
OLED Lighting Around the World Today 17
Slide 18: Strong, Broad and Deep Patent Portfolio
Strong, Broad and Deep Patent Portfolio We develop and license enabling technologies that are at the heart of consumer OLED products worldwide, from AR/VR, smartwatches, smartphones, IT, automotive and TVs to lighting products. We believe that our extensive portfolio of patents, trade secrets an
Slide 19: Patents are Universal
Patents are Universal China Europe (I-328 / P-274) (I- 853 / P-131) United States South Korea Japan (I-1,297 / P-517) (I-452 / P-328) (I-826 / P-104) Taiwan (I-347 / P-21) Over 5,000 patents and pending applications* *as of February 10, 2021 19
Slide 20: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships SEEYA TECHNOLOGY 20
Slide 21: Historical Financial Performance
Historical Financial Performance Revenue Income ($ in millions) $428(2) $429 $160 $400.0 $405 $156.1(2) $130.5(2) $336 $138.3 $326(2) $120 $115.4(1) $133.4 $300.0 $247 $199 $80 $200.0 $58.8 $100.0 $40 $48.1 $- $0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 ASC 605 Adjustment $- $- $78.9 $22.9
Slide 22: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures The following table details our reconciliation of non-GAAP measures to the most directly comparable GAAP measures: Year Ended December 31, (in thousands, except per share data) 2017 (Unaudited) Net income reconciliation Net income $103,885.00 Net income per share:
Slide 23: Robust Capital Structure
Robust Capital Structure ($ in thousands, except share data) June 30, 2021 Cash, Cash Equivalents and $733,454 Short-Term Investments Total Assets $1,350,715 Long-term Debt ------ A/P and Accrued Liab. $37,581 Deferred Revenue $169,152 Shareholders’ Equity $991,616 Total Shares Outstanding* 47,356,8
Slide 24: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $733M Cash, no debt* • License & Sell Proprietary • $15.49 in cash/share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operatin
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