Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (August 2019)
22 slides from Universal Display's investor presentation, August 2019
Slide 1: OLED Investor Presentation
OLED Investor Presentation COLOR IS UNIVERSAL
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements in this document that are not historical, such as those relating to Universal Display Corporation’s technologies and potential applications of those technologies, the Company’s expected results as well as the growth of the OLED market and the Company’s oppor
Slide 3: Who We Are
Who We Are OLED IP Critical Licensor & OLED Material Innovator Supplier & Enabler Fabless 5,000+ Proprietary Global PHOLEDs Patents* *5000+ Pending and Issued Patents Worldwide as of as of February 10, 2019 3
Slide 4: What is an OLED?
What is an OLED? 30-40nm ▪ 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
Slide 5: 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 5
Slide 6: OLED Display Market Potential
OLED Display Market Potential Mobile Growth TV Growth IT/Wearables Growth Mobile TV IT/Wearables Other $45 $45.3 $41.3 $40 $37.5 $35 $33.0 $30 $ billions $25.5 $25 $23.6 $22.4 $20 $15 $10 $5 398M* 408M* 558M* 735M* 456M* 632M* 687M* $0 2017 2018 2019 2020 2021 2022 2023 *Unit Numbers are for mobile
Slide 7: OLED Panel Area Demand
OLED Panel Area Demand Mobile Growth TV Growth IT/Wearables Growth Mobile TV IT/Wearables Other 21.5 20 12.1M* 18.1 10.0M* millions of square meters 15 14.7 7.7M* 12.0 6.2M* 10 8.5 6.7 3.8M* 5.2 3.0M* 5 1.8M* 0 2017 2018 2019 2020 2021 2022 2023 *Unit Numbers are for OLED TVs only 7 Source: IHS OLED
Slide 8: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED • Improved image • Fewer More Cost Effective Superior Aesthetics Phosphorescence manufacturing Lower Power Usage quality reduces power process steps • Thin and Light consumption by • Lower bill-of- 25% • 180 degree viewing materials angle • Add GREEN: 45% • N
Slide 9: New OLED Smartphones
New OLED Smartphones LG V50 Samsung Google Pixel Xiaomi Black ThinQ 5G Note 10 Infinix Note 6 3a XL Shark 2 Pro Asus ROG Phone II TECNO vivo Z5 Apple iPhone 9 Phantom 9 OnePlus 7 Pro Sony Xperia 1 Huawei P30 Pro XS Max
Slide 10: More OLED Products
More OLED Products Samsung Galaxy Tab S6 Pimax 4K VR Headset Dell XPS 15 LG - C8 Series Samsung Galaxy Watch Active 2 LG’s Automotive Displays @ CES 2019 Sony - A8F BRAVIA Series Royole FlexPai Developer ZTE nubia LG Watch Style Apple Watch Huawei Alpha Series 4 Watch GT 10
Slide 11: 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 11
Slide 12: Strong OLED Lighting Market Drivers
Strong OLED Lighting Market Drivers • Low drive • Wide range of • Thin and voltage CCT, high CRI lightweight Highly desirable color quality Novel form factor & Low • Low operating possible • Transparent environmentally friendly temperatures, • Color tunable • Non-breakable, Energy-efficient & Cost P
Slide 13: OLED Lighting Around the World Today
OLED Lighting Around the World Today PEW 13
Slide 14: Innovation: Future Revenue Streams
Innovation: Future Revenue Streams Ink Jet Barrier Encapsulation Nozzle Liquid Solution Organic Vapor Jet Printing Barrier Printing Encapsulation (OVJP) P2OLED 14
Slide 15: Future Growth: Flexible
Future Growth: Flexible New Form Factors Unbreakable Lighter Thinner Samsung Galaxy Fold Huawei Mate X 15
Slide 16: Strong, Broad and Deep Patent Portfolio
Strong, Broad and Deep Patent Portfolio Lighting Flexible Printable OLEDs Phosphorescent OLEDs Manufacturing Processes & Equipment Device Architectures Phosphorescent OLEDs Encapsulation (PHOLEDs) Light Out- Coupling 16
Slide 17: Patents are Universal
Patents are Universal China Europe (I-273 / P-235) (I- 726 / P-179) United States South Korea Japan (I-1088 / P-469) (I-306 / P-357) (I-774 / P-170) Taiwan (I-312 / P-57) Over 5,000 patents and pending applications* *as of February 10, 2019 17
Slide 18: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships Display Lighting • AU Optronics • Fraunhofer IPMS • BOE Technology • HotaluX • China Star Optoelectronics • Kaneka • EverDisplay Optronics • Konica Minolta • Innolux • LG Display • Japan Display • Lumiotec • LG Display • OLEDWorks • Pioneer • Sumitomo Chemic
Slide 19: Historical Financial Performance
Historical Financial Performance Revenues Income ($ in millions) $130.5 $335.6 $326.3 $115.4(3) $247.4 $191.0 $191.0 $198.9 $58.8 $146.6 $45.5(2) $44.8(2) $48.1 $32.6(1) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 (1) Adjusted net income excludes the net benefit from release of the i
Slide 20: 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: (in thousands, except per share data) Year Ended December 31, (Unaudited) 2017 2016 2015 2014 2013 2012 Net income reconciliation Net income $ 103,88
Slide 21: Robust Capital Structure
Robust Capital Structure ($ in thousands) June 30, 2019 Cash, Cash Equivalents and $552,711 Short-Term Investments Total Assets $1,011,080 Long-term Debt ------ A/P and Accrued Liab. $43,488 Deferred Revenue $127,123 Shareholders’ Equity $751,033 Total Shares Outstanding* 46,996,702 *Weighted averag
Slide 22: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • ~$553M Cash, no debt* • License & Sell Proprietary • ~$11.75 in cash/share* Phosphorescent OLED Technology and • High Margin Business Materials to Display & Solid-State • Lean O
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