eMagin — Investor Presentation (November 2020)
24 slides from eMagin's investor presentation, November 2020
Slide 1: Making AR/VR A Reality
Making AR/VR A Reality Investor Presentation November 2020 1
Slide 2: Disclaimer
Disclaimer Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any fo
Slide 3: Vision: Enable the future of computing & imaging
Vision: Enable the future of computing & imaging with OLED technology 3
Slide 4: Key Messages
Key Messages The only US manufacturer of OLED microdisplays; a technology leader with proprietary and 1 patented direct patterning technology (dPdTM) for ultrahigh brightness in color 2 Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer for high bri
Slide 5: eMagin at a Glance
eMagin at a Glance Headquarters: Hopewell Junction, NY Manufacturing: U.S. Domiciled The technology leader in OLED Displays. Employees: 100+ Revenue: $26.7M in 2019 • 92% from Product Sales, 8% Contracts • 53% U.S., 47% International • 27 countries served Market Cap: $74M* Exchange: EMAN on NYSE Mak
Slide 6: Growth Strategy
Growth Strategy Leverage commercial and consumer electronics customer relationships for AR/VR opportunities Develop partnerships for high volume manufacturing Grow commercial and industrial presence Expand military and aviation market share Deepen penetration of leading-edge dPdTM technology Increas
Slide 7: Q3 2020 Highlights: Improving Performance
Q3 2020 Highlights: Improving Performance Financial Trends • Continued strength in military display business, 19% year-over-year revenue increase • Non-military display revenue declined (e.g., eye care market, sportsmen’s rifle scopes); seeing recovery in eye care market • Backlog of $10.0 million o
Slide 8: $39 million of Department of Defense Awards
$39 million of Department of Defense Awards • Recognized by DOD as the only domestic manufacturer of OLED microdisplays designated as a cornerstone of the US manufacturing base • Received $5.5 million award under the Industrial Base Analysis and Sustainment (IBAS) Program for Organic Light Emitting
Slide 9: eMagin's OLED Technology Advantage
eMagin’s OLED Technology Advantage Lowest Power and Highest Brightness • Brightest OLED – monogreen over 28,000 cd/m2; full color 7,500 cd/m2 demonstrated, full color 10,000 cd/m2 targeted in early 2021 • Very high contrast – greater than 1,000,000:1 • Lower power consumption– longer battery life •
Slide 10: History of Technical Leadership
History of Technical Leadership Many fundamental innovations in microdisplays • Commercial full color SVGA+ Active Matrix OLED microdisplay • Full color SXGA OLED microdisplay • High-brightness monochrome SXGA microdisplay (20k+ cd/m2) • High-brightness color SXGA OLED microdisplay (700+ cd/m2) 10
Slide 11: History of Technical Leadership
History of Technical Leadership Promising results of Direct Patterning (dPd) • dPd® demonstrated on 2k x 2k display • dPd enhancements (<7,500 cd/m2 brightness on a full color WUXGA) • 4k x 4k microdisplay demonstrated at SID conference 11
Slide 12: OLED Provides Superior AR/VR Experience
OLED Provides Superior AR/VR Experience Magnification Highlights eMagin’s Superior Fill Factor Samsung Galaxy S5 OLED eMagin OLED Microdisplay Cell Phone Display / 600 ppi >2,500 ppi 12
Slide 13: The Future of AR/VR Powered by dPd
The Future of AR/VR Powered by – dPd™ Low Brightness AR* High Brightness AR* • Conventional OLED microdisplays use white OLED with color filters • Color filters absorb ~80% of the useful light; limited brightness and inefficient • Only eMagin has Direct Patterned microdisplay technology for direct e
Slide 14: Deep Application Expertise & Broad IP Portfolio
Deep Application Expertise & Broad IP Portfolio Patents Know-how • 45 patents issued and 41 pending • Includes Silicon backplane, OLED • Includes silicon backplane, OLED architecture, process and packaging architecture, process and packaging • Back-plane design • Key patents include ultra-high • Ano
Slide 15: Military & Aviation
Military & Aviation Profile Customers • Predominately sole-source supplier • Differentiated performance and leader in brightness • Visible in bright sunlight • High contrast for detail • First mover in AR/VR for domestic and foreign military applications • Global market leadership - U.S. Army, Air F
Slide 16: Commercial & Medical
Commercial & Medical Profile • Products provide high reliability in stressful environments • Visualize digital information and imagery • Successful in supplying to medical imaging devices, thermal cameras and hunting scopes • Recent customer wins include: • $780,000 order from an existing medical de
Slide 17: Commercial & Consumer
Commercial & Consumer Profile AR Forecast by IDC Augmented reality for • Equipment repair • Factory automation • Service technicians Virtual reality for • Vehicle design • Training and simulation • Consumer gaming and entertainment eMagin is the only company with VR Forecast by IDC technology
Slide 18: Manufacturing Footprint - Made in the USA
Manufacturing Footprint - Made in the USA Hopewell Junction, NY (Headquarters) Class 10 Clean Room Operations • Lease ~42,000 square feet of space • Houses own equipment for OLED microdisplay fabrication, assembly operations, R&D and product Photo-Lithography Metal Deposition OLEDDeposition developm
Slide 19: Senior Management Team
Senior Management Team • Over 20 years experience in OLED technologyand manufacturing Andrew Sculley • Led Kodak OLED Systems CEO • MS Physics Cornell, MBA Carnegie-Mellon • Pioneering inventor of disruptive OLED technology at eMagin and Kodak Dr. Amal Ghosh • PhD Physics MIT COO • Past President of
Slide 20: Key Messages
Key Messages The only US manufacturer of OLED microdisplays; a technology leader with proprietary and 1 patented direct patterning technology (dPdTM) for ultrahigh brightness in color 2 Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer for high bri
Slide 21: Appendices
Appendices rr . AeMagin © 2020.eMagin Corporation Proprietary Information
Slide 22: Consolidated Statement of Operations
Consolidated Statement of Operations Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenues: Product $ 6,978 $ 7,321 $ 18,872 $ 17,786 Contract 333 598 2,870 1,606 Total revenues, net 7,311 7,919 21,742 19,392 Cost of revenues: Product 5,385 5,112 15,153 14,436
Slide 23: Adjusted EBITDA
Adjusted EBITDA $ in thousands Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net loss $ (3,531) $ (315) $ (7,731) $ (4,092) Non-cash compensation 60 165 147 455 Change in fair value of common stock 1,803 (120) 3,304 (1,450) Depreciation and intangibles amortiza
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Se pte mbe r 30, De ce mbe r 31, 2020 2019 ASSETS C urre nt asse ts: Cash and cash equivalents $ 10,283 $ 3,515 Restricted cash 1,800 — Accounts receivable, net 3,178 3,966 Unbilled accounts receivable 31 155 Inventories 8,133 8,832 Prepaid expenses and other current asset