Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (May 2017)
22 slides from Universal Display's investor presentation, May 2017
Slide 1: OLED Investor Presentation
OLED Investor Presentation May 2017
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 Fabless Supplier & Enabler 4,200+ Proprietary PHOLEDs Global Patents* *4200+ Pending and Issued Patents Worldwide as of December 31, 2016 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: AMOLED Display Market Potential
AMOLED Display Market Potential Mobile Growth Tablet /PC Growth TV Growth $45 Mobile TV Tablet / PC Other $41.4 $40 $39.5 $36.3 $35 $31.2 $30 $25.5 $ billions $25 $20 $15.8 $15 $12.4 $10 $9.1 $5 174M* 257M* 391M* 513M* 626M* 723M* 796M* 843M* $0 2014 2015 2016 2017 2018 2019 2020 2021 *Unit Numbers
Slide 7: OLED Panel Area Demand
OLED Panel Area Demand Mobile Growth IT/Wearables Growth TV Growth 16 15.2 Mobile Phone OLED TV Other AMOLED 14 12.8 millions of square meters 12 11.1 10 8.2 8 5.8 6 4.0 4 2.5 2 1.5 0 2014 2015 2016 2017 2018 2019 2020 2021 Source: IHS OLED Display Market Tracker – Q1 2017 7
Slide 8: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers Lower Power Usage Superior Aesthetics More Cost Effective RED Phosphorescence Improved image quality Fewer manufacturing reduces power process steps consumption by 25% Thin and Light Low cost bill-of- 180 degree viewing materials Add GREEN: 45% angle
Slide 9: New OLED Smartphones
New OLED Smartphones Samsung Gionee M2017 Galaxy S8+ Huawei Mate 9 TCL 950 OPPO F1 Plus Google Pixel Pro Asus Zenfone Colawe W550 AR Micromax Dual 5 ZTE Nubia BLU Energy XL 9 Moto Z Force M2
Slide 10: More OLED Products
More OLED Products Huawei Watch 2 Dell Alienware 13 (2017) Samsung Galaxy Book LG - 65“ Wallpaper OLED TV Lenovo ThinkPad X1 Yoga (OLED) Sony PlayStation VR Porsche Mission E Car Panasonic EZ1002 4K OLED TV LG Watch Style Apple Watch Oculus Rift Galaxy Gear Series 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 Energy efficient – Highly desirable color Novel form factor environmentally friendly quality Low drive voltage Wide range of CCT, Thin and lightweight high CRI possible Low operating Transparent temperatures, cool to Color tunable Non-breakable, touc
Slide 13: OLED Lighting Around the World Today
OLED Lighting Around the World Today PEW * *Now available @ 13
Slide 14: Innovation: Future Revenue Streams
Innovation: Future Revenue Streams Barrier Ink Jet Encapsulation Nozzle Barrier Encapsulation Liquid Solution Printing Vapor Jet Printing P2OLED OVJP 14
Slide 15: Future Growth: Flexible
Future Growth: Flexible Unbreakable Lighter Thinner New Form Factors 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 (PHOLEDs) Encapsulation Light Out- Coupling 16
Slide 17: Patents are Universal
Patents are Universal China Europe (I-196 / P-175) (I-480 / P-236) United States South Korea Japan (I-906 / P-397) (I-167 / P-353) (I-613 / P-438) Taiwan (I-168 / P-157) 2,530 patents issued (I) + 1,756 patents pending (P) For a total of 4,286 (I & P)* *as of December 31, 2016 17
Slide 18: Strategic Relationships with Blue Chip Partners
Strategic Relationships with Blue Chip Partners Display Lighting 18
Slide 19: Historical Financial Performance
Historical Financial Performance Revenues Income ($ in millions) $198.9 $191.0 $191.0 $48.1 $45.5** $44.8** $146.6 $32.6* $83.2 $61.3 $9.7 $3.2 2011 2012 2013 2014 2015 2016 *adjusted net income; 2013 included $41.4M net benefit from release of income tax valuation allowances of $59.4M and deferred
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) 2015 2014 2013 Operating Results: Net income (loss) $ 14,678 $ 41,854 $ 74,
Slide 21: Robust Capital Structure
Robust Capital Structure ($ in thousands) March 31, 2017 Cash, Cash Equivalents and $339,767 Investments Total Assets $655,443 Long-term Debt ------ A/P and Accrued Liab. $21,124 Deferred Revenue $39,020 Shareholders’ Equity $565,151 Total Shares Outstanding* 46,742,894 *Weighted average shares used
Slide 22: Company Summary
Company Summary Global Leader in OLED Strong Financial Technology & Materials Performance • Lighting up the OLED Revolution • $340M Cash, no debt* • License & Sell Proprietary Phosphorescent • ~$7.20 in cash/share* OLED Technology and Materials to Display • High Margin Business & Solid-State Lightin