Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (August 2023)
26 slides from Universal Display's investor presentation, August 2023
Slide 1: OLED Investor Presentation 3Q 2023
OLED Investor Presentation 3Q 2023 (updated: August 2023) © UNIVERSAL DISPLAY CORPORATION © UNIVERSAL 2023 DISPLAY ALL RIGHTS RESERVED 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 projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opp
Slide 3: Universal Display Corporation
Universal Display Corporation Highly Critical OLED Energy- Innovator & Efficient Enabler PHOLED Fabless OLED 6,000+ Materials Global Supplier & IP Patents* Licensor * Pending and Issued Patents Worldwide as of May 30, 2023 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 more than 25 countries), culturally and gender-wise (22% female and 78% male*) diverse Board of Directors: 38% Female, 62%
Slide 5: UniversalPHOLED = Energy Efficiency
UniversalPHOLED® = Energy Efficiency With energy efficiencies that are up to four times higher than 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. Pho
Slide 6: UniversalPHOLED Energy Efficiency Innovation
UniversalPHOLED® 800 700 Energy Efficiency Innovation 600 Current performance (2023) Red & green PHOLED w/ fluorescent blue 500 Power (mW) 400 64% Energy consumption compared to 2015 300 Projected additional performance improvement Full red, green & blue PHOLED v. 200 Prior devices containing a fluo
Slide 7: UniversalPHOLED Energy Efficiency Innovation vs LCD
1400 UniversalPHOLED® 1200 Energy Efficiency Innovation 1000 PHOLED is up to 3x more Power (mW) 800 energy efficient than LCD. 600 While both technologies 400 continue to make efficiency 200 gains, PHOLED is widening the energy efficiency gap. 0 2015 2018 2021 2022 AMLCD AMOLED 7
Slide 8: Phosphorescent OLED Carbon Savings
Phosphorescent OLED Carbon Savings Calculated assumptions: There are at least 1.8 billion active OLED smartphones using our PHOLED materials and technology in the world today and Average luminance at 600 nits with 50% Average use is 4 hours per day Power savings is 30% over LCD pixels on Power savin
Slide 9: Business Model
Business Model Innovation & OLED Revenues Invention Enabler License Device & Patent & Architecture Licensing Royalty IP Fees Composition PHOLED Material of Matter IP Emitters & Sales Hosts 9
Slide 10: 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 11: OLED Display Market Potential
OLED Display Market Potential Mobile TV IT Wearables Other $60 $51.6 $50 $49.4 $48.1 $45.4 $42.4 $43.4 Revenue ($ in Billions) $40 $30 727M* 696M* 663M* $20 626M* 593M* 572M* $10 $0 2022 2023 2024 2025 2026 2027 *Unit Numbers are for OLED mobile phones only 11 Source: Omdia OLED Display Market Track
Slide 12: OLED Panel Area Demand
OLED Panel Area Demand Mobile TV IT Wearables Other 30 Millions 25.5 25 (Millions of Square Meters) 22.2 20 19.8 17.2 14.3 11.3M* 15 14.2 10.0M* 9.1M* 10 7.9M* 7.5M* 6.3M* 5 0 2022 2023 2024 2025 2026 2027 *Unit Numbers are for OLED TVs only 12 Source: Omdia OLED Display Market Tracker – Q1 2023 (Ju
Slide 13: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED Phosphorescence • Improved image • Fewer manufacturing More Cost Effective Superior Aesthetics reduces power process steps Lower Power Usage quality consumption by 25% • Lower bill-of- • Thin and Light • Add GREEN: 45% materials • 180 degree viewing cumulativ
Slide 14: OLED Smartwatches & Smartphones
OLED Smartwatches & Smartphones Samsung Motorola Galaxy Moto Watch Watch6 200 Huawei Band 8 Garmin epix Pro Oppo k11 vivo iQOO 11S Samsung Galaxy M54 iPhone 14 Pro Apple Watch Series 8 Honor X50 Motorola Razr 40 Google Pixel 7a Tecno Camon 20 Meizu 20 Pro Huawei Nova 11 OnePlus Nord 3 Xiaomi Redmi P
Slide 15: More OLED Products
More OLED Products Sharp AQUOS FS1 Samsung S90C - OLED TV LG OLED B3 Evo TV PlayStation VR2 2025 Buick Electra E5: Curved DELL XPS 15 with OLED Samsung Galaxy Tab 30-Inch 6K OLED Display S9, S9+ and S9 Ultra Apple Vision Pro 15
Slide 16: Form Factor: Flexible, Foldable, Rollable
Form Factor: Flexible, Foldable, Rollable Google Pixel Fold Tecno Phantom V Fold Xiaomi Mix Fold 2 Samsung Galaxy Z Fold5 and Galaxy Z Flip5 Oppo Find N2 Honor Magic V2 vivo X Fold2 Flip Asus ZenBook 17 Fold 16
Slide 17: 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 17
Slide 18: 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 19: 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 20: OLED Lighting Around the World Today
OLED Lighting Around the World Today 20
Slide 21: Strong, Broad and Deep Patent Portfolio
Strong, Broad and Deep Patent Portfolio We develop and license enabling RGB technologies that are at the heart of Phosphorescent consumer OLED products worldwide, from OLEDs AR/VR, smartwatches, smartphones, IT, AI Machine (PHOLEDs) automotive and TVs to lighting products. Learning Device Architec
Slide 22: Patents are Universal
Patents are Universal * *As of May 30, 2023 22
Slide 23: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships SEEYA TECHNOLOGY 23
Slide 24: Historical Financial Performance
Historical Financial Performance Revenue Income ($ in millions) $616.6 $600.0 $210.1 $553.5 $200 $500.0 $184.2 $428.1(1) $428.9 $160 $156.1(1) $400.0 $405.2 $326.3(1) $133.4 $130.5(1) $138.3 $300.0 $120 $247.4 $200.0 $80 $100.0 $58.8 $40 $- 2018 2019 2020 2021 2022 ASC 605 Adjustment $78.9 $22.9 $-
Slide 25: Robust Capital Structure
Robust Capital Structure ($ in thousands, except share data) June 30, 2023 Cash, Cash Equivalents, Short- Term and Long-Term $756,464 * Investments Total Assets $1,540,855 Long-term Debt ------ A/P and Accrued Liab. $42,402 Deferred Revenue $48,142 Shareholders’ Equity $1,338,766 Total Shares Outsta
Slide 26: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $756M Cash, No Debt* • License & Sell Proprietary • $15.89 in Cash/Share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operatin
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