eMagin — Needham & Company 16th Annual Growth Conference 2016
21 slides from eMagin's conference presentation, Jan 15, 2016
Slide 1: Making virtual imaging a reality
‘Making virtual imaging a reality ‘ompany th Conference 14, 2016 NYSE MKT: EMAN www.emagin.com
Slide 2: Needham & Company 16th Annual Growth Conference Investor Presentation
AeMagin Needham & Company 16*" Annual Growth Conference Investor Presentation ULT OLED Microdisplay 4 Mpixel Immersive ~ 6500 nits Headset Brightest OLED color display Highest resolution VR headset; ever demonstrated 4X higher resolution
Slide 3: Cautionary Forward Looking Statements
4eMagin Cautionary Forward Looking Statements Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performancesare forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materia
Slide 4: eMagin Investment Highlights
AeMogin eMagin Investment Highlights { ManrKker LEADER IN OLED MICRODISPLAY TECHNOLOGY WILL DisPLace comPETING AR/VR DisPLAY TECHNOLOGIES MARKET MOMENTUM FOR VR AND AR TECHNOLOGIES IS BUILDING QUICKLY Need Gee eee Le f VR AND AR TECHNOLOGIES CREATING SEISMIC CHANGE IN GAMING AND COMPUTING EXPANDING
Slide 5: Company Overview
AeMagin Company Overview * Military, Industrial and Medical end- markets * Multiple growth opportunities + Avionics, Smart Glasses, Gaming * High barriers to entry * Strong IP portfolio- 42 patents and applications * Technology and manufacturing know-how 4M pixel Immersive Headset r Growth in Virtua
Slide 6: eMagin Microdisplay and Headset Firsts
AeMagin eMagin Microdisplay and Headset Firsts Full color WUXGA OLED microdisplay Commercial full color SVGA+ Active Matrix OLED microdisplay Full color SXGA Full HD+ 3D Ultra High-Brightness OLED microdisplay Stereoscopic Headset | | Color OLED Microdisplay 2006 (5000+ nits) 2009 20: 2012 2013 2014
Slide 7: Today eMagin Dominates Military Market
Today eMagin Dominates Military Market * Military 1° mover in AR/VR =i * Sticky customer relationships + Long product lifecycles + Predominately sole-source + US Army, Special Forces, Navy/Marines ™EXELIS — Goggles, thermal weapon sights, binoculars Roch * Worldwide Foreign Military Sales through Cl
Slide 8: eMagin Military Spawns Commercial Growth
4eMagin Military Spawns Commercial Growth * Growth in new vertical markets * Commercial avionics migrates to OLED microdisplays * OLED microdisplays key for high resolution AR/VR applications
Slide 9: AR/VR: The Next Big Thing
ee AR/VR: The Next Big Thing 5 technology needed for switching speed (no smear) ay t needed for size, resolution, and power Real Augmented Augmented Virtual Environment Reality (AR) Virtuality (AV) Reality (VR) <& Spatial Real World Mixed Reality Immersive Virtual World => gy @ =6 & ZF — i
Slide 10: VR/AR Requires Microdisplays
VR/AR Requires Microdisplays “Screen Door” effect from use of cell phone displays Cell phone display OLED Microdisplay
Slide 11: eMagin Microdisplay Advantage: Resolution and Fill Factor
eMagin Microdisplay Advantage: . Resolution and Fill Factor eMagin OLED Microdisplay Samsung Galaxy $5 OLED Cell Phone Display Shown at same scale OLED Required for Uncompromised Immersive Experience u
Slide 12: More of eMagin's OLED Advantages
aaa More of eMagin’s OLED Advantages Lowest Power and Highest Brightness * Lowest power — longest battery life * Most compact form factor * Lightest weight solution + Field tested for reliability and performance * Nausea-free operation * Clear see-thru capability — no background glow * Brightest OLE
Slide 13: Consumer Headset Market Exploding
AeMagin Google @ptinvent me Microsoft vuzix EPSON @ woronora "ICIS Consumer Headset Market Exploding INNOVEGA| @IMMY | =" JVCKENWOOD Set SONY Omen. ororsny” lenovo coe © carts Ss Lagiioss AVZGAN Oculon” Glass” M=Th | ceipuany {cor) @ Lc Electronics Baten Mus OLYMPUS TECHNICAL ILLUSIONS iQ Digilens®
Slide 14: VR/AR in the News - Large Players Believe
AeMagin Facebook Buys Oculus, Virtual Reality Gaming Startup, For $2 Billion, Mar 25, 2014 EVE online game maker CCP Games raises $30M for VR games, Nov 13, 2015 - ‘Liquid VR’ is AMD's push into... virtual reality, March 2015 Matterportannounces$30M Series from ‘Qualcomm Ventures, AMD Ventures, and
Slide 15: Augmented and Virtual Reality Headsets
AeMagin Augmented and Virtual Reality Headsets = eis VIRTUAL REALITY HEADSET SALES 100M units in 2020 (In Millions) 600 5 require extreme low power 500 We expect sales to ramp as 400 compelling content becomes 300 available 2015E 2016E 2017E 2018E 2019E 2020E 2021€ 2022E 2023E 2024E 2025E Data Sourc
Slide 16: eMagin's Roadmap To Success
4eMagin eMagin’s Roadmap To Success Years Ahead of Any Competitor in OLED Brightness & Power e Entertainment * Gaming & V/R Stealth Mode Headset e Commercial ie) + Avionies Consumer @ Military * Avionics 16
Slide 17: eMagin's Management Team
AeMagin Andrew Sculley cEO Jeffrey Lucas cro Dr. Amal Ghosh PhD SVP Technology Dr. Margaret Kohin PhD ‘SVP Business Development Olivier Prache SVO Product Development Kip Kokinakis President HMD Division Dan Cui CMO HMD Division eMagin’s Management Team Led Kodak OLED Systems. MS Physics Cornell, MB
Slide 18: Operating Results
AeMagin Operating Results (millions) Sep’14 Sep’15 2013 2014 YTD YTD Revenue $28.0 $25.7 $19.0 $18.4 Gross Margin % 30% 29% 31% 33% Operating Expense $13.6 $12.6 $9.5 $8.0 Operating Income $(5.2) $(5.1) $(3.7) $(2.0) EBITDAS $(1.7) $(2.9) $(1.8) $0.1 8
Slide 19: Balance Sheet and Capital Structure
AeMagin Balance Sheet and Capital Structure (Smillions) Balance Sheet ($) Sep 30, 201! Sep 30, 2015 Pro Forma* Cash & Equivalents 5.4 11.0 Total Assets 26.0 31.6 Total Debt none none Total Liabilities 43 43 Total Shareholders Equity 219 275 ) Basic Shares Outstanding 25.5 32.1 Options 44 44 Series B
Slide 20: Summary: AR/VR Market is launching now
4eMagin Summary: AR/VR Market is launching now * Key Growth Markets * Military and Commercial Avionics Displays * New unique headset including social media launch in 2016 * High resolution immersive V/R * Very high brightness OLED technology for A/R * eMagin has the best display technology for the e
Slide 21: eMagin Investment Highlights
eMagin Investment Highlights Marker LEADER IN OLED MICRODISPLAY TECHNOLOGY } WILL DisPLace comPETING AR/VR DISPLAY TECHNOLOGIES MARKET MOMENTUM FOR VR AND AR TECHNOLOGIES IS BUILDING QUICKLY EXPANDING MANUFACTURING CAPACITY AND OUTSOURCED FABRICATION TO MEET UPCOMING f VR AND AR TECHNOLOGIES CREATIN
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